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Home My WebLink About05-28-20 CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA May 28, 2020 6:00 PM Hannah Simmons, Chair; Steve Wilson, Vice-Chair Katie Bernhjelm, Ryan Butterfield, Jake Cordes, Robyn Craig Stephen Hudlemeyer 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA S. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Approve Meeting Minutes (April 23, 2020, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) EDA Financial Review (b) EDA Program Updates 9. DIRECTOR'S REPORT (a) May Director's Report 10. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 wU Farmington MN.gov TO: Economic Development Authority FROM: Cynthia Muller,Administrative Assistant SUBJECT: Approve Meeting Minutes (April 23, 2020, Regular Meeting) DATE: May 28, 2020 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the April 23,2020, EDA meeting. ACTION REQUESTED Approve the April 23, 2020, EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting April 23, 2020 1. CALL TO ORDER The meeting was called to order by Chair Simmons at 6:00 p.m. Members Present: Simmons, Bernhjelm, Butterfield, Cordes, Craig, Hudlemeyer, Wilson Members Absent: None Also Present: Adam Kienberger, Community Development Director; Teah Malecha, Finance Director; Kalley Swift, Community Development Specialist 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Craig, second by Bernhjelm to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTSITRESENTA TIONS 6. CONSENT AGENDA MOTION by Bernhjelm, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (February 27, 2020, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSIONITEMS a) 345 Third Street Fletcher Building FaVade Improvement Grant Application Ms. Pam Heikkila, owner of the Fletcher Building located at 345 Third Street, applied for a fagade improvement grant in an amount of$10,000. The proposed project includes: Placing stucco on the north and east exterior walls $30,000 Install sheet metal flashing at the roof base $1,720 Electrical work$500 Total project cost is over$32,000 This building has been designated a Heritage Landmark. At their meeting on January 14, 2020,the Planning Commission denied the request for a Certificate of Appropriateness because stucco did not meet the Secretary of Interior Standards EDA Minutes(Regular) April 23,2020 Page 2 for a historic building. The applicant appealed this decision to the City Council. On February 18, 2020,the City Council granted the Certificate of Appropriateness. Member Bernhjelm explained the Certificate of Appropriateness was approved because the north and east sides of the building do not face a public street. Chair Simmons asked if because these two sides of the building don't face the street, are there any concerns that the application does not apply to the intent of the fa9ade program. Member Bernhjelm stated no. This is a prominent building in the downtown and the structural integrity is important. Member Craig agreed, adding that it does meet the spirit of keeping the downtown looking presentable. Staff stated with this approval,there will be$10,000 remaining in the fagade improvement grant program for 2020. MOTION by Bernhjelm, second by Cordes to approve the facade improvement grant application for 345 Third Street. APIF,MOTION CARRIED. b) Short-Term Recovery Program Ideas COVID-19 has resulted in struggles for businesses. There are government programs thru the Coronavirus Aid, Relief and Economic Security (CARES)Act available to businesses. The EDA was looking for a way to fill in the gaps. Staff asked if the EDA was interested in using unallocated funds or redirecting allocated funds for a business recovery program. At the last meeting,the EDA approved funding a redevelopment and property reinvestment program. Those funds could be pivoted into a business recovery program. Staff proposed two recovery programs: Utility fee program—This would be for businesses under 500 employees or those impacted by the Governor's executive orders. Funds would apply to the utility bill. Businesses would receive a one-time up to $500 grant for utility fees since March 17,2020, when businesses were directed to close. Funds would transfer from the EDA to the city's utility billing. Businesses would still be encouraged to utilize state and federal programs. Member Butterfield asked about the number of businesses this would impact. Staff explained a budgeted amount would be set aside. Restaurant recovery program—This program pertains to liquor license fees. The City Council waived liquor license fees for the month of April. Staff proposed a one-time $500 grant be paid from the EDA to the city to cover a portion of the fee. Member Wilson stated the utility billing program is intriguing, but we have to be mindful of city finances. The last thing we want is city goodwill and then run out of money. He asked if$50 or$100 to more businesses is better than $500 to a few businesses. If this isn't provided to all,then we should not do it. Member Bernhjelm agreed we would not want to prioritize businesses. She leaned more toward the utility program rather than restaurants. The City Council can decide if EDA Minutes(Regular) April 23,2020 Page 3 we want to waive fees again for May if this situation continues. She asked what other utility companies are doing. Finance Director Malecha stated the city does not shut off water. Delinquent accounts are certified to the property taxes. The City Council has waived late fees for the March utility bills. We are asking businesses to pay what they can. Other utility companies redirect them to government programs. This program pertains to just the city's utilities. Chair Simmons noted restaurants can now sell liquor and beer to go and asked if that will impact the City Council's decision. She did like the fact that these programs are a touchpoint to remind businesses of state and federal programs. Member Bernhjelm stated the amount to waive for the April liquor fees was minimal so it's not an issue that they can sell now. We don't know how long this will go on. She suggested tabling the restaurant recovery program for now and revisit it if this goes beyond May. Regarding the utility bill program, Member Bernhjelm agreed with $50 or$100 rather than $500. Staff noted for restaurants, one bill was $5,000 this quarter. That was when they were open, so the second quarter should be less now that they are closed. Member Bernhjelm stated basically this is a budget transfer. Staff noted$50 or $100 will probably not break a business, but over time it will impact the city funds. This could be done with City Council action and the EDA not be involved. Member Butterfield stated it aligns with our business retention and what better time to do this. He liked the utility billing program better than the restaurant recovery. Member Craig stated there are small businesses struggling because they are new and getting established and the landlord will not give a break on the rent. What can we do to help a business keep going to pay the rent? There is a need for a few businesses to use this. Member Wilson noted it is an investment in businesses. Chair Simmons suggested businesses less than 100 employees and keep it at$500. Staff noted if we get too complex we get trapped in our own bureaucracy. What message do we want to send locally? Many cities direct businesses to state and federal programs. It sounds like there is more appetite for the utility billing program. The applicant would provide their utility bill along with the application and we pay it. Member Butterfield agreed with doing something short term now rather than research for a month. Tailor it to small brick and mortar businesses and that is goodwill that could go far. MOTION by Butterfield to fund $10,000 to the utility billing program for up to $500 for businesses less than 200 employees. Member Wilson amended and seconded the motion to businesses with 100 employees. APIF,MOTION CARRIED. Redevelopment and Property Reinvestment Program—Not every business is able to get state and federal funds. This program expands grants outside of the downtown to make minor or significant repairs needed for their property. This program was approved at the last meeting,but staff asked if we should still move forward with it. Staff suggested putting a pause on the public improvement EDA Minutes(Regular) April 23,2020 Page 4 program. Member Craig felt we should keep this open and not commit funds to one program. Member Hudlemeyer agreed to pause the redevelopment program. Member Bernhjelm stated then we should consider the program to get public improvement projects done. Chair Simmons agreed if a business is not going to revitalize a building, we should use the funds elsewhere. Member Bernhjelm asked staff to come back with public improvement project examples and cost for the May or June meeting. Member Butterfield noted the site readiness program has not been utilized. It would be very low risk to reallocate funds elsewhere from that program. Member Hudlemeyer agreed public improvements show we are moving forward. Member Cordes noted it would give someone a job. Staff summarized we will bring examples and costs for public improvement projects and pause the redevelopment program. 9. DIRECTOR'S REPORT a) April Director's Report The Open to Business first quarter report was provided. The city has resources for recovery programs on the website. Business visits are paused for now. Member Butterfield suggested using Zoom for training those who will be doing business visits. 10. ADJOURN MOTION by Wilson, second by Cordes to adjourn at 6:55 p.m. APIF,MOTION CARRIED. Respectfully submitted, au th'A MRLLer Cynthia Muller Administrative Assistant CITY OF ® 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: May 28, 2020 INTRODUCTION/DISCUSSION 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 Financial Snapshot- May D Exhibit EDA-Actual Vs Budgeted Rev and Exp- May 2020 Department Actual vs Budget-Generic Time Period Cumulative 12 Cumulative 12 Business Object Account Actual Budget Unit Account Description 2020 2020 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 235,794.43 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 -1,974.66 -2,700.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -13,333.32 -40,000.00' 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB -35,419.47' -162,911.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 45,178.68 122,761.00 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 3,273.64 9,392.00 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 3,388.37 9,208.00 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 7,388.19 21,550.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 60.72 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS-DBB 16.06 2000-HRAIECONOMIC 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 2,922.32 8,767.00 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 127.95 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 80.14' 300.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 40.39 130.00 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 1,551.57 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-HRAIECONOMIC DEVELOPM 0.00' -3,970.00 0.00' -3,970.00 0.00 -3,970.00' 5/22/2020 9:31:29 AM Page 1 of 1 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 588 496 478 413 0 0 0 0 0 0 0 0 1,975 2,700 (725) Misc Revenue 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Revenues 588 496 478 413 0 0 0 0 0 0 0 0 1,975 2,700 (725) Personnel Services 0 0 34,761 12,191 12,338 0 0 0 0 0 0 0 59,290 162,911 (103,621) 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 731 731 731 731 0 0 0 0 0 0 0 0 2,922 8,767 (5,845) 6422-ELECTRIC 21 20 20 20 0 0 0 0 0 0 0 0 80 300 (220) 6426-INSURANCE 10 10 10 10 0 0 0 0 0 0 0 0 40 130 (90) 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 (181) 0 0 0 0 0 0 0 0 1,552 4,000 (2,448) 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 1,521 580 0 0 0 0 0 0 0 0 12,058 38,730 (26,672) Total Exp 3,298 6,660 36,281 12,771 12,338 0 0 0 0 0 0 0 71,348 201,641 (130,293) Transfers In 3,333 3,333 3,333 3,333 0 0 0 0 0 0 0 0 13,333 40,000 (26,667) 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 3,333 0 0 0 0 0 0 0 0 13,333 40,000 (26,667) Net Change in Fund Balance 624 (2,831) (32,470) (9,025) (12,338) 0 0 0 0 0 0 0 (56,040) (158,941) 102,901 Page 1 of 1 O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 0000007 0 Farmington M N.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: EDA Financial Review DATE: May 28, 2020 INTRODUCTIONJDISCUSSION City Finance Director, Teah Malecha will provide the EDA with a financial review of its revenues and expenses. This will be used to facilitate a discussion about policy direction and program funding for the E DA. ACTION REQUESTED EDA Financial Review ------------------------------------------------------------------------------------------ 0 ----- ------------------------------------------------------------------------------ 5 - 2s - 2020 EDA - Revenue and Expenditures ----------------------------------------------------------------------------------------------------------- 0 ---------------------- --------------------------------------------------------------------------------- 2018 2019 Revenues Taxes $ - $ - • Final Numbers Intergoverrnmental: 2019 Audit is complete Transfer from City 30,000 50,000 • Dakota Broadband Board (DBB) One-time Transfer From City: VRC Special Assessments DBB Executive Director HR Costs CDBG Grants 21,809 - Reimbursed by DBB through Dakota I DBB HR Costs Reimbursement* - 65,398 County Investment earnings 4,188 10,434 ! • Revenues Total Revenues 55,996 125,832 • Expenditures Expenditures Economic Development a 68,338 67,722 DBB HR Costs Reimbursement - 65,398 'a- Net Change in Fund Balance $(12,342) $ (7,288) * - � Costs were reimbursed in early 2020 for 2019. Shown on balance sheet as Due from Other Governments. i EDA. — Balance Sheet r ______________________________________________________________________________________________________-_ 0 __________________________-__--___---_______________________________--___--_____ 2018 2019 Assets Restricted Cash Assets ' • Liabilities Cash and Investments 266,452 197,086 • Fund Balance Cash and Investments: Restricted-VRC Assess Relief 35,000 35,000 Cash and Investments Accounts Receivable Operations Accrued Interest Receivable 636 566 Open to Business Premium/Discount on Investments (181) (38) CDBG Timing Due From Other GovernmentsProgramming - 65,398 Prepaid Expenses 595 300 Facade Improvement Total Assets To Be Determined $ 302,502 $ 298,312 Liabilities and Fund Balance I r Accounts Payable 3,140 6,238 .� Finance Fund Balance 299,362 292,074 Total Liabilities and Fund Balance i \ $302,502 $ 298,312 Funds Available For Programming ------------------------------------------------------------------------------------------------------------ 0 ------------------------------------------------------------------------------------------------------------ 2020 Beginning Cash and Investments $ 232,086 i General Fund Transfer 40,000 ! • Available to Spend Less: VRC Assessment Relief Funds Operations 30,000 Maximum Spending Dakota Broadband* - Open to Business 5,513 I Policy Decisions Site Readiness 20,000 Community Needs Facade Improvement** 20,000 Utility Fee Grant Program 10,000 CDBG Cashflow Timing*** 32,188 Public Space Improvement Program 10,000 RRC Plaza (Committed) 100,000 Cash Available for Programming $ 44,385 i I Tentative - Development & Reinvestment Program 50,000 * Costs were moved to the General Fund **$10,000 is committed to the Fletcher Building ***Depending on HUD's Final Budget Approval iFinancial CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov VIII TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: EDA Program Updates DATE: May 28, 2020 INTRODUCTION/DISCUSSION Utility Fee Program: The Utility Fee Program was approved at the April EDA meeting and has been live since May 4th, 2020. The program allows for a one-time direct assistance grant of up to$500 for City of Farmington water utility bills. It is available for any Farmington business with 100 employees or less company-wide.The program was created with a fund balance of$10,000.There have been two direct assistance grants awarded to two Farmington businesses totaling$708.62. The most recent City of Farmington water bill for commercial properties was due on April 30th, 2020. Since the Utility Fee Program was not available until after the most recent due date,there has been minimal applications received.The next City of Farmington water bill cycle for commercial properties will be available July 1st with a July 31st due date, so we expect to see more applications in July. I nvoices and refunds will be going out on June 1st to restaurants who have a liquor license. A copy of the Utility Fee Program application will be included with their invoice to ensure that these businesses receive the necessary information about the program and how they may benefit from it. The Utility Fee Program will be re-promoted in early July on all available platforms (through the FBA, social media,etc.),and we are expecting to see more applications come in at this time. Public Space Improvement Program: At the April EDA meeting,the EDA decided to continue to move forward with a qualified project for the Public Space Improvement Program.The Redevelopment and Property Reinvestment Program will be brought back at a later date or in 2021.The Public Space I mprovement Program is available in order to help accomplish numerous small victories outlined in the Downtown Redevelopment Plan,the Trunk Highway 3 Corridor plan, and other various adopted city plans.The small victories focus on providing tangible,visible outcomes by leveraging investment which will provide benefits to all sectors of the public through creation, necessary updates,and maintenance to public spaces. The EDA has expressed interest in the creation and upgrade of wayfinding/landmark identity signs.This type of small victory is outlined in the Downtown Redevelopment Plan and the Highway 3 Corridor Plan. The Farmington downtown business center sign on Elm Street/2nd Street is a prime example of where to start with this program. While there is an option to refurbish the sign,an overall replacement is suggested in order to maximize the wayfinding capabilities, landmark status,and amplify the downtown identity as a whole while utilizing our new city logo and city colors.The suggested replacement would help accomplish the redevelopment initiative to strengthen downtown identity and wayfinding(Pages 22-24)along with identifying specific locations to create a downtown gateway identity feature and directional signage (pages 45-46) in the Downtown Redevelopment Plan. The price of this small victory will depend on what type of sign is chosen.The price of a sign ranges widely depending on the type of sign,size of the sign,and materials used. Examples from our surrounding communities and sign companies along with their corresponding cost are currently being gathered. I n the meantime,the EDA should internally discuss the amount of investment it is looking to put into the sign replacement at Elm Street/2nd Street. By giving an investment amount, it will give us solid direction on where to go with the first project of the Public Space I mprovement Program and allow us to bring forward more relevant and applicable examples for the downtown sign. ACTION REQUESTED Discuss the desired investment amount for the replacement of the Elm Street/2nd Street sign. ATTACHMENTS: Type Description ❑ Exhibit Public Space Improvement Program ❑ Exhibit Downtown Redevelopment Plan CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON o 651.28°-6800 FarmingtonMN,gov Public Space Improvement Program There are numerous "small victories"outlined within the Downtown Redevelopment Plan,the Trunk Highway 3 Corridor plan,and other various adopted city plans.These"small victories"would provide benefits to all sectors of the public through creation, maintenance, and updates to public spaces. Victories outlined in adopted plans, no matter how small,still need the effort necessary to see it become a reality.This is where the EDA can step in and set aside EDA funds either annually or bi- annually to remove barriers and push small victories through to completion for the benefit of the general public. Public Space Improvement Program Guidelines The Economic Development Authority(EDA) has made funding available to aid in the completion of specific goals and outcomes outlined within city adopted plans including, but not limited to,the Downtown Redevelopment Plan and the Trunk Highway 3 Corridor Plan.This program is focused on providing tangible,visible outcomes and progress to city plans for the benefit of all members of the public.This program is available strictly to provide assistance with financing for projects with focus on public improvements. Eligible Properties Any property and public space owned by the City of Farmington.This criteria includes right of way for access to update current city signage and addition of new signage.This means that only the City of Farmington can identify projects for EDA funding approval under this program. Funding Source EDA fund balance of$10,000 annually should be set aside for these projects. Funds can roll over if not used during the year and can be bookmarked for higher costing projects.A request for more funding for certain projects can also be made using internal EDA funds already in the budget or a request for funds can be made through the City Council and outside sources. Program Terms and Requirements Funding allocated for a Public Space Improvement project must be used and completed within the same year.This will ensure the benefit of the new improvement project can be used/benefitting the public as soon as possible. CITY OF © 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 .� . Farmington MN.gov Program Objectives The intent of this program is to leverage investment in public areas for benefit, use,and enjoyment of all sectors of the public.This program is dedicating EDA funds to move adopted city plans along and provide real,tangible outcomes which everyone can see and enjoy. 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 The only applicant available for submittal and approval of a Public Space Improvement project is the City of Farmington. Target Area While any property and public space owned by the City of Farmington is available for benefitting from this program,there will be an intentional focus on work in the downtown area,trunk highway 3,and wayfinding signage throughout the city. Eligible Improvements Funds may be used for projects directly outlined as an outcome,implementation step,or identified need for public benefit within a City of Farmington adopted plan. Funds may be used for, but are not limited to: • Wayfinding creation and upgrades • Bike racks • Benches,seat walls, bump outs,small community/library plazas,areas for public seating and casual public gatherings • Community gardens • Refurbishing depot art park • New banners on downtown light poles with new logo.The city owns and maintains streetlights primarily in the downtown and Vermillion River Crossings. • Adding lighting to already erected City of Farmington entrance/identification signs • Adding additional signage and identification pillars for increasing visibility and awareness for our downtown, historic areas,etc.throughout the city to increase the feeling of community T`1(OF O 43o Third St., Farmington, MN 55024 FARMINGTON 0 651-280-6800 Farmington MN.gov • Refurbishing current signage on 2nd Street/Elm and Spruce/Denmark or removal/replacements of these signs with new ones • Improving character streets,such as Elm Street, 2nd Street,etc.with natural beauty pieces such as increased trees,flower pots, bushes, etc. • Increasing walkability and pedestrian friendly areas in the city with pedestrian activated signals and visible crosswalk pavement marking • Cost participation for downtown brick repairs and replacement • Public art Ineligible Projects • Projects not located within public space or City of Farmington owned property. Procedures Application Intake Applications are accepted from the City of Farmington annually or bi-annually and are reviewed based upon fund availability.Applications will be reviewed for participation in the program based upon the following guidelines: 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 Project Approval The application will be approved by the Farmington EDA. EDA Reporting Requirement The EDA will be provided monthly project updates upon approval of an eligible project. FARMI GTON DO rREDE PLAN ADOPTED BY THE CITY COUNCIL ON APRIL 18, 2016 a too ��844, a a :u Rte. ©a a® ACKNOWLEDGEMENTS Project Task Force Kris Akin-Downtown Building Owner Heidi Cunningham-ISD 192, Director of Community Education Ed Endres-Downtown Business Owner John Franceschelli III-Heritage Preservation Commission(HPC),Chair Nicole Gorman-Rambling River Center,Recreation Supervisor Chris Kulus-Farmington Business Association (FBA),President David McMillen-Parks and Recreation Commission (PRC),Chair Dirk Rotty-Planning Commission,Chair Barb Svoboda-Farmington Library,Manager Janie Tutewohl-Downtown Business Owner,Realtor Steve Wilson-Economic Development Authority(EDA) Megan Richards-Farmington High School,Student Representative City Staff Adam Kienberger,Community Development Director Tony Wippler,Planning Manager Project Consultants Hoisington Koegler Group Inc.(HKGI) Northland Securities Maxfield Research ✓ Far r4: n Daevrto;,,n Fedevelopmer- Flar CONTENTS CHAPTER 01 DOWNTOWN'S CURRENT CONDITIONS 4 ...................................... Downtown Study Area..............................................................................5 Current Conditions Analysis,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,6 Current Land Uses.....................................................................................? 2030 Planned Land Uses............................................................................8 Current Zoning&Historic Properties............................. 9 Public Property Ownership........................................................................10 Current Sidewalks&Trails ,11 Current Public Parking .............................. .. ................. ............................12 Issues&Opportunities Analysis,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,14 CHAPTER 02 REDEVELOPMENT PLAN & INITIATIVES 16 Downtown Districts 17 .................................................................................. Illustrative Redevelopment Plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,18 2030 Land Use Plan Map...........................................................................21 Downtown Core Redevelopment Initiatives..................................................22 Downtown Edges Redevelopment Initiatives................................................ 29 Downtown Riverside Redevelopment Initiatives,,,,,,,,,,,,, 30 CHAPTER 03 MARKET ANALYSIS.....................................................................32 Farmington Retail Trade Area,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,33 Population&Household Growth Trends&Estimates.......................................33 Consumer Expenditures analysis,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,_..36 RetailGaps Analysis.................................................................................37 HousingAnalysis.....................................................................................37 Market Review of Preferred Downtown Redevelopment Concept,,,,,,,,,,,,,,,,,,,,,,39 CHAPTER 04 IMPLEMENTATION......................................................................42 Keys to Implementation............................................................................42 Roles&Responsibilities............................................................................ 43 Getting Started—Downtown Action Plan.....................................................45 LandUse Controls................................................................................... 47 Attracting Investment..............................................................................51 FinancialTool Box....................................................................................52 Usingthe HRA Act...................................................................................59 Table of Contents FIGURES & TABLES Figure 1: Project Study Area.................................................................5 Figure 2: Existing Land Use.................................................................. 7 Figure 3: 2030 Planned Land Use,,,,,,,,,,,,,,,,,,,,,,,,,,, 8 Figure 4: Existing Zoning&Historic Properties.......... 9 Figure 5: Public Property Ownership,,,,,,,,,,,,,,,,,,,,, ,10 Figure 6: Existing Downtown Pedestrian&Bike Network,,,,,,,,,,,,,,,,,,,,,,,,,,,11 Figure 7: Existing Downtown Public Parking,,,,,,,,,,, ,12 Figure 8: Issues&Opportunities,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,13 Figure 9: Downtown Districts Concept...................................................17 Figure 10: Illustrative Downtown Redevelopment Plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,18 Figure 11: Illustrative Downtown Redevelopment Plan By District.................19 Figure 12: Recommended Changes to 2030 Land Use Plan Map,,,,,,,,,,,,,,,,,,21 Figure 13: Rambling River Center Plaza Concepts......................................25 Figure 14: Bike and Pedestrian Network Plan,.,,,...,,,, 27 Figure 15: Public Parking Plan................................ 28 Figure 16: Farmington Retail Trade Area,,,,,,,,,,,,,,,,,,, 34 Figure 17: Farmington Drive Times.................................. ... ......... ..........34 Table 1: 2015 Household Expenditures by Selected Product Type ,,, ,,,,,,,, ,,,35 Table 2: 2015 Retail Demand Potential&Leakage,,, 38 Re:;evelapmeot Plan CHAPTER 01 : DOWNTOWN ' S CURRENT CONDITIONS , f Downtown Farmington is ata crossroads as the city of Farmington continues its rapid growth and evolution as a community. For much of its history, the area viewed as downtown today was a freestanding rural downtown that served as the community's commercial, civic,and cultural center.As the Twin Cities metro area has grown and expanded its suburbs outward to Farmington,downtown Farmington' context has changed dramatically. Downtown's historic role as the most central, convenient commercial and civic destination for residents is now confronting major competition from new commercial areas emerging within Farmington and neighboring communities. With a growing portion of Farmington residents living north of downtown,and drawn toward destinations nearer to them or closer in to the metro area,downtown is increasingly viewed as being at the edge, less convenient, and irrelevant to the overall community. The purpose of the Downtown Redevelopment Plan is to analyze downtown's current and future challenges and provide a shared vision for downtown that guides reinvestment efforts by both the private and public sectors. 4 Figure 1: Project Study Area " r 1 1 I �J -- j S � � I 1 I 1 1 1 j I �5 � 1 I � I I I � I 1 � l ; 1 L--------- ---------------------------- .. ��" Legend .�. ,._" �ay.m ow- rte. 'rth-ra.zu"` - DOWNTOWN STUDY AREA '. Downtown's traditional commercial district,approximately 3 blocks in length,is k located south of Elm Street/Highway 50 and east of the rail line.However,the study area for the downtown redevelopment plan encompasses approximately 20 blocks,including blocks north of Elm Street/Highway 50 and west of the rail line.The downtown study area is bounded by the Vermillion River(north), 1 st Street(west),Walnut Street(south),and 5th Street(east),as shown in the above aerial map.It should be noted that the study area's boundaries are larger than the city's Downtown Commercial Overlay District's boundaries,which have an eastern boundary of 4th Street rather than 5th Street.Also of note,the downtown zoning districts encompass a much larger area,extending north to Main Street,west to Division Street,south to Maple Street,and east to Highway 3.These zoning districts include B-2,R-T,and R-D. © = -ment Plan CURRENT CONDITIONS ANALYSIS This chapter provides a brief overview of downtown Farmington's current conditions, issues,and opportunities.This analysis considers current land uses,planned land uses,zoning districts,historic properties,public property ownership,public parking, �11 � ....��' current sidewalks and trails.Maps and analysis specific to each of these elements are on the pages that follow. In terms of current development character,the downtown core is lined with commercial storefronts primarily in traditional buildings along both 3rd Street and Oak Street.Unlike many historic downtowns,Farmington is fortunate to have retained downtown streets with solid building frontages.Many downtowns eventually lose some buildings and replace them with surface parking lots on their "Main Street".Surface parking lots front on the 3rd St/Highway 50 intersection,which is the primary entry or gateway into downtown,and the intersection of 3rd St/Spruce St.Changing the development character of the 3rd St/Highway 50 gateway corner to reflect the historic character of downtown is a strategic redevelopment opportunity. Downtown is also fortunate to have retained a number of unique historic buildings clustered near the intersection of 3rd St&Oak St,which are primarily commercial buildings with classic architecture.However,there is also a substantial number of vacant storefronts and buildings,particularly in the historic buildings.Empty storefronts in these iconic downtown buildings represents significant missed opportunities for downtown revitalization. Commitments to keeping downtown the civic and cultural center for the community are evident in the presence of civic assets,including the City Hall,County Library, Rambling River Center,Elementary School,Post Office,and Municipal Liquor Store. Downtown is also home to several community events,including Dew Days,Dazzle Day,Car Show,and the Farmers'Market.The city also has invested in providing quality downtown outdoor public spaces,including the Depot Way Arts Park and streetscape improvements in the downtown core.The downtown streets have features,such as wide sidewalks,decorative pavement,corner bumpouts,benches, and pedestrian lamps,that provide a foundation for creating desirable outdoor gathering spaces.A major gap is the lack of a public park,plaza,or open space in the s: downtown core east of the rail line. There are a limited number of vacant sites in the downtown core,as well as the downtown edges and riverside districts.These vacant sites,as well as underutilized sites,provide valuable opportunities for the city to attract,guide,and support redevelopment projects that strengthen downtown as a commercial,civic,cultural, and recreational center for the community. An active freight rail line is located on the western edge of the downtown core. Train traffic and noise is a concern for some existing downtown residents.While the city has previously explored the potential for creating a Quiet Zone in Farmington, the significant costs which would be the city's responsibility have prevented the establishment of a Quiet Zone thus far. Crossing of both the rail line and Highway 50 by pedestrians and bicyclists has been identified as a concern. Do�,r-o,% n s Current Conditions O Figure 2: Existing Land Use LEGEND I Study Area OParcels r Floodplain f Willa. Existing Land Use �I Single-Family Residential -Multi-Family Residential Le Commercial / _Industrial \' j/ Pine Pine - Park/Open Space - Public/Semi-Public � -Vacant ROW 11' Main FEE50 Oak Oak a --- p RE 1 _ ._ 5prut FED FFTT Walnut Walnut f--� -1 CURRENT LAND USES The downtown study area currently contains a diverse mix of land uses,including commercial,industrial,public/semi-public,multi-family residential,and single- family residential.There are also some vacant properties scattered throughout the study area.The commercial land uses include traditional downtown retail,service, and office uses in the downtown core.Outside of the downtown core,there is a large suburban retail development and businesses not oriented to a downtown environment,such as self-storage,automotive repair,etc.The residential uses are primarily single-family with just two apartment buildings and two townhouse developments. © n'rn-,irn -:!eveI m=r-- plan Figure 3: 2030 Planned Land Use f / LEGEND StudyArea ' O Parcels ' f. '/ ry Willow Floodplain I _�.,�f/ i 2030 Planned Land Use Low Density Low Medium j� r Medium Density Pine Pine � High Density 7[fl, Mixed-use(Commercial/ResidentiapCommercial - Industrial II 77 -Park/Open Space j Main Public/Semi-Public ROW Oak Oak 11 1 = L T c Spruce Walnut Walnut 2030 PLANNED LAND USES The city's 2030 Comprehensive Plan includes the following downtown strategies: Maintain and expand the downtown commercial center to the north and enhance its river front orientation. Preserve the downtown area by retaining historic buildings and features, require high design standards,provide for a diverse mix of community-oriented commercial and cultural activities,promote well-landscaped developments, be pedestrian-friendly,promote the display of public art and encourage community gatherings. The 2030 Land Use Map currently in the city's Comprehensive Plan,shown above, reflects these two strategies,including the expansion of downtown commercial north to the river and east along Highway 50.It also guides the expansion of medium and high density residential through redevelopment around the downtown core. Downtown's Current Conditions 4 Figure 4: Existing Zoning&Historic Properties LEGEND ; _ 1 Study Area Parcels ®Historic Property Willow I ®Eligible for Historic Designation i ! ZONING � A-1(Agriculture) \ � B-1(Highway Business) II _ _B-2(Downtown Business) _ ) Pine Pine — j —B-3(Heavy Business) ! .J —B-4(Neighborhood Business) _II( dutrial)Business/CommercialFlex ;. 1 I-1(Industrial) _IP(Industrial Park) Main —Mixed-Use r ................. r Mixed-Use Commercial/Residential _ P/OS(Park/Open Space) r R-1(Low Density Res 1-3.5 DU/AQ - R-2(Low/Med.Density Res 3.5-6 DU/AQ UTR-3(Med.Density Res 6-12 DU/AQ i _R-5(HighDensity Res l2+DU/AQ _ — R-D(Downtown Residential) R-T(Downtown Transitional Mixed Use) ROW(Right-ofWay) Oak Oak SSC(SWater ruce Street Commercial) - Water r v i R—I I Spruce Walnut Walnut ;q r----i r--i F-1 r---1 F----1 CURRENT ZONING & HISTORIC PROPERTIES The map above shows the current zoning district designations within the downtown study area.The primary zoning districts are B-2(Downtown Business), R T(Downtown Transitional Mixed Use),and B-3(Heavy Business). Historic properties,both designated and eligible for designation,are also shown on the above map. 1 -cment Plan Figure 5: Public Property Ownership LEGEND _.;Study Area Willow Parcels Floodplain Ownership City of Farmington Dakota Co Pine Pine Dakota Co CDA Farmington EDA/HRA - ISD 192 �-� ITNSP Main SO R11 ........... Fu-- M11 I Oak Oak FM I Spru"ce Walnut I (I I Imo' I I(' I ISI I I Walnut . I I I I F— I I I I PUBLIC PROPERTY OWNERSHIP Public/semi-public property within the downtown study area includes the City of Farmington (2nd Street,Rambling River Center,along the river),Farmington EDA/ HRA(City Hall,Depot Way Arts Park,vacant lot on Oak Street),Dakota County (library), Dakota County CDA(vacant residential lots), ISD 192(administrative building on Walnut Street),and NSP/Xcel (Oak Street property). Figure 6: Existing Downtown Pedestrian&Bike Network I is i i "I- `Inns. I ---- ----_= " 1 t_ _ I r , r _ „ . 13 I _ r - t k p u - I f( I IiI 31 J 3 ` .3 yIr x ry —. n Crory Wn mgSd—lY ® RailroadO mg 0 SgwlM lmeneNo e �-- ' CURRENT SIDEWALKS & TRAILS Most streets within the downtown study area provide sidewalks today,with the exception of 2nd Street,Spruce Street(west of rail line),and 3rd St/Pine St north near the river. Other than the pedestrian path through Depot Way Arts Park,there are no trails within the downtown study area today.The closest existing trails are located across the river from downtown(north side of the river)and west of downtown(east side of the river).There are limited access points across the river to the regional trail network. Farmington Downtown Redevelopment Plan Figure 7: Existing Downtown Public Parking I IN i i i - i — — I ` i T i I _t t —Angled On-Sheet Parking a—ParallelOn-Sheet Parking ..�••" a IlU M Municipal Parking Lot —k' C3 County Library Parking Lot CURRENT PUBLIC PARKING The map above shows where on-street and off-street public parking is currently available in the downtown study area.With the exception of Elm Street/Highway 50 and 2nd Street,downtown streets provide off-street parking spaces.Angled parking is provided in the downtown core on 3rd Street,Oak Street,and Spruce Street.Off- street public parking lots exist at the city hall,adjacent to the Rambling River Center, 2nd Street,and the library. Dowr;own s Current Conditions Figure 8: Issues&Opportunities - F ILI f Tfl I i E k � Y ,r Lumber F TM`r Pine � LLL1LLjMT ` r - M-77 Ll L- 9t_ Tq� LL Li ELL Oak ii to Spruce —L4.I I J Minneapolis Air Route Trath, ' Control Center -.— M LEGEND Walnut - - I I I I Walnut � ce —�� [ meruction yAcocee I I �Po I i � Center/Gateway Academy - IIIII Rmesuan conn<a:onx L -- t — ._. ----- ', Locust � E cav<warco„eo' Small world �maour«rco��dor Childcare Tral Connectom —J _ .__._ �� _— - _ i r•"�<I[yBauMary I 11 I .._._.�� _� �_� I ... U_ I ._ .. T Maple m Ran Ratvoe<n seas Westview _, } G -oe,natae Hiaroe< Park atk f ._.._. _ 4 _...__, Farmington ®EgVz eonr< ' Beech ce,b9�tonR : Elementary _ r __ .__ ' __... School I I DESTINATIONS �--' 7 —.___.___ ... BBee CFl _j : I` --- (Iderelfied6yRefectTaskFer<e1 e _ ._j 0J sclwol Beech © umarr --- ----' x I k <- Icor, : p Ra[autant G .'_._ Hicko•y -o- -f r --' Hickory � enat oM« •o -�� j� G Hickory y �— O O 1—,Shoe I — 1 - ISSUES & OPPORTUNITIES ANALYSIS These downtown issues and opportunities were identified by the project consultants working with the Project Task Force and city staff early in the project, so that they could provide guidance for the exploration and creation of downtown redevelopment concepts.Figure 8 provides a visualization of the issues& opportunities analysis. Issues Vacant commercial buildings/storefronts Vacant sites—Flm St&Hwy 50,Oak&2nd St Current restaurants&bars mix doesn't attract families Casual gathering places are limited,e.g.bakery seating,outdoor seating,no coffee shop,etc. Rail line impacts include frequent train traffic,train noise,and limited number of street and trail connections that can cross the rail line River also limits street and trail connections into downtown Lack of public green space in downtown core Buildings on Highway 50 don't reflect character of historic downtown Downtown is off the beaten path for residents north of downtown,not convenient Not enough unique shops to be a destination for boutique shoppers Not enough destinations to attract residents on a regular basis Identity and awareness of downtown is low within the community Opportunities Reuse of historic commercial buildings and other older buildings on 3rd Street and Oak Street Redevelop vacant and underutilized sites >> Add park or plaza in downtown core Add connections from downtown to the regional trail system and river Add a riverwalk on south side of river Create a stronger downtown entry from Hwy 50 Improve character of streets,e.g.2nd St,Hwy 50 Add new housing options Create a stronger downtown identity Ca ntown's C rent Con Ci:ians Precedents&Inspiration o[>ntw Str�-et, Lookitig \res=. -toward Milwaukee Depot, Fz;-minoon, Mji, i -.r yM,VYYp'{.:y;yyi ,^, • ir. � �J° I ��,,,,s, � � �� a t...t h �j, .. 1 r� Y4 �_1.. -Try/ 1•. .tl. .mw'n $... 4 •c. sY' f i 1 �. . -,,�.--� reg-.ansa.arrw.aw�-.+n.a-�a.aarrr►we.+ir• _ Historic photos of downtown Farmington buildings,streets,and views,including many buildings that still grace downtown today 0 Farmington Downtown Redevelopment Plan CHAPTER 02 : REDEVELOPMENT PLAN & INITIATIVES ki The Farmington Downtown Redevelopment Plan is intended to provide a shared vision for downtown that guides reinvestment efforts by both the private and public sectors, including key redevelopment opportunities. The vision for downtown has the following guiding principles as its foundation: » Preserve and enhance downtown's unique historic character to attract people to gather,visit,shop,work,and live downtown » Reinvigorate downtown as the community's commercial,cultural,and recreational center » Retain and strengthen civic destinations and events already located in downtown » Enhance downtown's walking and biking environment,including connections to the vermillion River,regional trails,parks,and natural areas » Improve downtown's identity and visibility as a desirable and convenient destination for residents as well as visitors from surrounding communities » Focus on redevelopment opportunities in the downtown core first This chapter lays out the community's preferred downtown redevelopment plan, including an illustrative development plan, land use plan,pedestrian and bike circulation plan,parking plan, and public space concepts. Redevelopment initiatives are identified for each of the downtown districts:downtown core,downtown edges,and downtown riverside. 16 Figure 9: Downtown Districts Concept i i _ � 1 f ♦ r'' E - E Y }}F Y J t ^P ` t DOWNTOWN DISTRICTS The study area for the downtown redevelopment plan encompasses approximately 20 blocks,including blocks west of the rail line and north of Elm Street/Highway 50.Defining a downtown area can be challenging and often times there are multiple versions of downtown geographic areas within a community.Farmington's current zoning map actually defines an even larger downtown area based on the current extent of the downtown zoning districts:B-2(Downtown Business), R-T(Downtown Transitional Mixed Use),and R-D(Downtown Residential).Since the downtown study area is fairly large,diverse in its development character,and includes two major connectivity challenges(Highway 50 and the rail line),this plan establishes five(5)downtown districts as shown above.These downtown districts each have somewhat unique development character and challenges for pursuing the plan's preferred redevelopment vision.The downtown redevelopment plan uses the downtown districts for identification of unique redevelopment initiatives, connectivity improvements,and redevelopment phasing. Farmington Downtown Redevelopment Plan figure 10: Illustrative Downtown Redevelopment Plan Willov a tt4 A N – T VERMIL� V R R j oilI 1k • { REDEVELOPMENT STRATEG ARefurbish curerrt vacam his9loc&other commerdal buildings v t fl Retain&supportimprovements tocMd nunkipaldestinationsindowrnown M C Redevelop vacant&anderutdizedsites - R Add&inprmearicl rpubicspacein I E I I K theClwvntnwncaceforev«.nts&informal - y� - 1 gxheriogPlaces (�► E knprove pedestrian environment 1 F Add key downtown core bketrail fff f J farilines&Connections to de river and regiooaltrailrFetwak G ____- E G. (Ieateconrpletedowntowntrail netmrk d E5 D J I I I H. Addoutdoorplacesforseatrrg& — gathering along 3rd St&Oak St r p B I. Improve Hghway50wssingsfor 0 pedestrians and bk)dists - H N i 2 J. Optinize public parkingomstreet& E off-street — E 7 E BI �~ I' K. strengthen downtown entry Identityand i E wayfndig L Redevelop sites to provide new hou ang Options in Famlingoon [ K knprovedesign ofebstingcommercial sugon Hwy 50 N. bpandRambling River Park Q Create a dverwa& - P. Add a pedestrian bridge Q RiLersideWest �� r R. RhersideNorth I B DETACNEDROUSDLG ATTACKED HOUSING G � - ♦ i ■ APARTMENTS MIXEDUSE COMMERCIALcivic r I PARK OR OPEN SPACE !! I I NISTORICBUILDINGS I I I iw(tVCING FtI•i1rlF ' PROPOSE D RIME RWALK J - 1 �..- Li EXISTING TRAIL PROPOSED TRAIL NETWORK -g'• t IE'" —� ___.� PROPOSED DOWNTOWN CORE KEY tf----- -` ""_� N TRAIECONNECTION - —'— -- ._-___ _ u — L ills! 'itD-BLOC(PEDESTRIAN WAY OR {n 1 _ _ I NEW SmEWAI[ T r - ' 4 t I Illustrative plan shows key redevelopment and reinvestmen t location opportunities,!including redevelopment initiatives. Figure 11: Illustrative Downtown Redevelopment Plan By District DOWNTOWN (01?E v K �Es � i A p R D : B J �E Er J _N B B.a � DOWNTOWN RIVERSIDE ! VERMIVNP jf -- - R R _L .R R R ! R r B 771111 REDEVELOPMENT STRATEGIESL---- A. Refurbish current vacant historic&other DOWNTOWN WEST EDGE DOWNTOWN EAST EDGE commercial buildings I B. Retain&support improvements to civic/ municipal destinations in downtown C. Redevelop vacant&underutilized sites D. Add&improve outdoor public space in the t _ M downtown core for events&informal gathering places - - E. Improve pedestrian environment r F. Add key downtown core bike trail facilities& connections to the river and regional trail network G. Create complete downtown trail network v JI H. Add outdoor places for seating&gathering along 3rd St.&Oak St. . (t a I. Improve Highway 50 crossings for pedestrians and bicyclists } ( t J. Optimize public parking on-street&off-street K. Strengthen downtown entry identity and t i wayhnding L. Redevelop sites to provide new housing options in Farmington M.Improve design ofexisting commercial sites on 4`1 — Hwy 50 N. Expand Rambling River Park j 0. Create a dverwalk I P Add a pedestrian bridge — , Q. Riverside West 1�R. Riverside North ` DETACHED HOUSING ATTACHED HOUSINGJ M APARTMENTS L I � ■ . MIXED USE (COMMERCIAL.RESIDENTIAL) COMMERCIAL CIVIC PARKOR OPEN SPACE - HISTORIC BUILDINGS (INCLUDING ELIGIBLE) PROPOSED RIVERWALK E%ISTINGTRAIL �f .. PROPOSED TRAIL NETWORK PROPOSED DOWNTOWN CORE KEYTRAILCONNECTION ,, ` � �a • ` .w{� R�MID-BLOCK PEDESTRIAN WAY OR NEWSIDEWALK AE 1 lU j. l =_ LEGEND NO Study Area Parcels Roodplain Medium Density High Density o � 2030 Planned Land Use Low Density Low Medium '40 V,040 OR FEW FA r0oo ORA RINI l�I110pro", For �1 I 810110 �� III I ' Eli J91 so WAR 111 Y OFAO mill III Precedents DOWNTOWN CORE REDEVELOPMENT INITIATIVES The downtown core area is centered around the blocks along 3rd Street from the Highway 50 intersection south to the Spruce Street intersection.This six-block area , Ip is fortunate to already have an authentic"small town"and"main street"feel.There are some significant existing assets to build upon,including streets lined with storefronts,attractive historic buildings,wide sidewalks with decorative pavers, trees,benches,lampposts,and corner plazas.In addition to the historic buildings, there are views of downtown's rail and agricultural heritage on the west edge of the downtown core. Active storefronts in unique historic buildings will Redevelopment in the downtown core is focused on retaining,reinvesting,and reinvigorate downtown reinvigorating underutilized buildings,sites,and outdoor public spaces,including the following redevelopment initiatives: A. Refurbish vacant historic buildings and other commercial buildings » Exteriors and interiors,some buildings with restored exteriors are in need of significant interior improvements to be attractive to potential tenants » Downtown's low rental rates for commercial space create a financing gap for building improvements,so public or non-profit involvement in funding could be critical to jumpstart this initiative B. Proactively support the retention of and improvements to current civic/municipal destinations and expand events in downtown » Current civic/municipal destinations include the city hall, library, post office,and liquor store » The municipal liquor store should consider locations in downtown, A including existing buildings and a potential new building on a redevelopment site » Current and potential downtown events include Farmers'Market, Dew Days,Car Show,and Dazzle Day,which are important for attracting people to downtown and also serve as a cost-effective form of downtown marketing C. Redevelop vacant and under-utilized sites for new business and possibly housing » Southwest corner of Highway 50&3rd Street as a critical downtown gateway development opportunity » North side of Highway 50 between 3rd and 4th Streets Precedent downtown buildings showing potential new » Sites near Oak and 2nd Street intersection building types that could fit into Formington'shistoric commercial district Redevelopment Plan & Initiatives Precedents&Inspiration 00j r �j, Z, w.,• WW Model of the historic Farmington railroad depot courtesy of the Farmington Model Railroad Club that could serve as inspiration for a future open-air farmers'market pavilion Y D. Improve and add outdoor public space for informal gathering places and events Refurbish Depot Way Arts Park » Create Rambling River Center Plaza (see Figure 13) » Create 2nd Street farmers'market pavilion and open space(see photos of farmers'market to the left and depot model above) » Create library corner plaza �4. E. Improve pedestrian environment » Add sidewalk to 2nd Street » Improve and extend existing mid-block pedestrian pathways F. Add key downtown core bike trail facilities and connections — to the river and regional trail network(see Figure 14) » Fill trail gap from downtown west to Rambling River Park trail via Spruce Street » Fill trail gap from downtown north to Kuchera's Entrance via 3rd Street, Pine Street,and 4th Street » Add trail hub facilities in downtown,e.g.bike racks, map,directional _ l signs, restroom,water G. Create complete downtown trail network (see Figure 14) Add trails connecting into downtown on Oak St, Main Street,3rd Street, 1 st Street,along rail line,etc. Preceden t outdoor plazas and formers'morket spaces H. Add outdoor places for seating and gathering along 3rd showing potential new types of outdoor public spaces for downtown 0 Farmington Downtown Redeveloc-m� Precedents&Inspiration l0 ` �akery Cate . T R Precedent downtown gateway features Street and Oak Street » Consider adding benches or seatwalls in corner plazas » Promote temporary outdoor seating areas for restaurants, bakery,etc., . including on-street parking �■�I�I� I. Improve Highway 50 crossings for pedestrians and bicyclists » Add visible crosswalk pavement markings » Add pedestrian-activated signals J. Optimize public parking on-street and off-street » Consider increasing on-street parking by converting some parallel parking to angled on 4th Street and Spruce Street(see Figure 15) — Precedent outdoor public seating and gathering spaces K. Strengthen downtown identity and wayfinding » Add downtown gateway signage on Highways 50 and 3 » Add wayfinding signage,e.g. bike trails,parking o714 OWN HIGH SCHOOL f ,�� S_BUSIYESSPAR!S � ® .. Yv�E'�V )Aiy4RHE� �. VISITOR CENTER Precedent wayfinding signage Redevelopment Plan & Initiatives Figure 13: Rambling River Center Plaza Concepts PLAZA CONrr"T L`andscaping - -- --� t e Event/Exhibition Tent e• c;. 1 Tr Temporary/Permanent Christmas Tree �s Relocated Bell PLAZA CONCEPT 1 '• +e Fountain" ro • i Event/ExhibitionTents„. Relocated Bell T o� Temporary/Permanent Christmas Tree PLAZA CONCEPT 3 Lands.aPi,�9 F�` t f Temporary/Permanent' (hristmasTree ""- ,� rj ► I Event/Exhibition Tents Relocat ed'Bell PLAZA C©NCEP)WOU f landsiag�---,� ij F a' .fir P Yy E6ent/Exhibition Tents Temporary/Permanent Christmas Tree y Relocated Bell v. ' � r Figure 14: Bike and Pedestrian Network Plan i a - C II I L / - I ` \\ is , 2DOYoT' ! ( (� rF-1 / ! i I' 7 h i i i i T I I I Zo�t_� 208th I rr I i r - • ---- — 1=mden _ 1 11 ' Willow L; I i i s Pine IM.. 1 TT rI-iLL.l ` 1 -- 3th i ` y T. ..I �lr II' I UdK • of I - - - �T r L n Spruce 77 �l 1 f , I _T Walnut walnut t f IILIf ; i �.- - Loc Lbcust — _ ust II . 1 r _ Maple ( — Beech _ -. L ..,- Beech -- ---a I-- -r- L BeechPropposed Sidewalk+Mid-block - PedestrianCrossing P ! E Proposed Trail Nic�ory Proposed Regional Trail Connection ( y _� ` kory Hickory - -, Existing Trail Existing Sidewalk ® Railroad Crossing =-k Signaled Intersection 74 —� I Project Boundary � I �� l 1 1 �I � + f Pedestrian&bike circulation plan shows key opportunities for improving downtown's walking and biking connections. 0 F?rmirg- )r Cj,,.rto ,. n Rea=weIopmen- Flan Figure 15: Public Parking Plan r 77171-IT-7771- .a k a k .......... �Angled On-Street Parking � Parallel On-Street Parking a —Potential Conversion to Angled Parking --walnut Municipal Parking Lot [3 County Library Parking Lot Parking plan shows existing on-street and off-street parking areas,and opportunities for increasing on-street parking. Fe�.c . _iopc Plar K Iniria_ives Precedents&InspirationDOWNTOWN EDGES REDEVELOPMENT INITIATIVES The downtown edge areas are located east,south,and west of the downtown core area.The east and south edges are primarily single-family residential today. However,the west edge is a mix of single-family residential and outdoor/indoor storage,and manufacturing businesses.There arejust three retail uses within the two edge areas,which are all on Highway 50,and one office use on 4th/Oak St. r Redevelopment in the downtown edge areas is focused on two redevelopment initiatives: L. Redevelop sites to provide new housing options in Farmington t » Redevelop area west of rail line,north and south of Spruce Street, s�lr s with apartments or a mix of apartments and rowhouses Redevelop half block on Walnut Street,between 3rd and 4th Street, with townhouses similar to the north half of the same block M. Improve design of existing commercial sites on Hwy 50 Add landscaping buffers,including trees,between the sidewalk and surface parking areas Y w f� Precedent housing development types for the Downtown Edge districts I Example of improving street edge between surface parking area and sidewalk Farmington Downtown Redevelopment Plan DOWNTOWN RIVERSIDE REDEVELOPMENT Precedents&Inspiration INITIATIVES The downtown riverside areas are located between the Vermillion River and downtown,north of Highway 50.A key opportunity exists to connect downtown and the river with a riverwalk,trail connections,park expansion,and site redevelopment. Redevelopment in the downtown riverside areas is focused on the following redevelopment initiatives: N. Expand Rambling River Park To better link downtown and the river's natural area,expand the park south of the river and east of the rail line,and add a new park entry at 3rd &Pine 0. Create a riverwalk on the south side of the river and -- connect to the regional trail network (see North Creek Greenway regional trail plan on following page) While there is a trail on the north side of the river,a new trail or riverwalk on the south side of the river could be an added amenity for downtown residents and workers,as well as an added destination to attract visitors to downtown r^1 R Add a pedestrian/bike bridge over the rail line The rail line is a major barrier for walking and biking in downtown and near the river,so adding this pedestrian/bike bridge is an ► '1 �� e� important connection for creating a pedestrian/bike trail network in downtown Q. Redevelop Riverside West L Redevelop the commercial site furthest from Hwy 50 with residential building(s) next to the river's open space long-term Redesign the current commercial parking lot driveways as streets to / transition the area from a suburban retail site to a place for shopping and living R. Redevelop Riverside North Redevelop sites along Pine Street with downtown townhouse and apartment living options Connect Pine Street between 4th &5th Streets Preserve truck route for the Kemps facility Precedent housing development types for the Riverside districts Redevelopment Plan & Initiatives 0 FOCUS-NORTH CREEK RE61ONALGREENWAY Proposed North Creek Greenway regional it Riverview.' trail 1 *: Elementary . ' ° r # School t +a V Dodge,,, Middle >>>ion Rivet I ; School-'! !* R' School -all Ks Proposed bridge ouer Rambling wayfinding Verm'111ion River Park i R10C Trail connection IV, Proposed grade r� separated crossing � Existing grade separated crossing W W mj Gateway Existing regional trail Q landmark Proposed regional trail Z Existing local trail pW P ._ Proposed local trail Q ELM STREET U Connection Greenway corridor to downtown Depot To L•akevtlle Farmington Way 71 ;.7, a, .,•.:.. Arts t� Schmitz Maki s' f 1 Park200'Feet P Arena 4 The concept above shows Dakota County's current plan for the future North Creek Regional Greenway segment nearest to downtown Farmington. It identifies a proposed local trail connection between the regional trail and downtown that crosses Highway 50 at 1 st Street,which is west of the rail line,then uses 1 st Street and Oak Street to connect to downtown where the rail line crosses Oak Street.The Downtown Redevelopment Plan recommendation is to work with Dakota County on ways for the North Creek Regional Greenway to better connect into downtown Farmington. For example, bringing the regional trail to the south side of the Vermillion River would be preferable for more directly linking downtown to the regional trail.Additionally,safer connections to downtown than the uncontrolled intersection at Highway 50/1 st Street would be Spruce Street west from downtown to the Rambling River Trail (next to the Schmitz Maki hockey arena) or the traffic controlled intersection at Highway 50/3rd Street. Frreirc on F-) r3 _ pmer CHAPTER 03 : MARKET ANALYSIS To ensure that the Downtown Redevelopment Plan's vision, concepts, and initiatives are based in reality, the process of developing this plan includes a high-level market analysis. The limited scope of this market analysis includes the following elements: Retail trade area identification Consumer expenditures analysis Retail gap analysis Housing market analysis These elements are addressed at a general level for the downtown Farmington trade area and specifically for the downtown redevelopmen concepts that were explored during this project. The market analysis was integral to identifying the preferred downtown redevelopment concept, redevelopment site opportunities, priority initiatives,and phasing. 32 FARMINGTON RETAIL TRADE AREA Figure 16 outlines the retail draw area from which the majority of the demand for goods and services in downtown Farmington will be generated.Lakeville is adjacent to Farmington on the west and has continued to increase its level of retail development in support of the large number of households that have been attracted to the community.As most of the retail development in Lakeville is newer, new retail in Farmington is more likely to draw from households in Farmington rather than neighboring suburban communities like Lakeville,Apple Valley and Rosemount.Downtown Farmington is also likely to draw from households in adjacent outlying areas to the east and south.These communities do not have a substantial retail base and are more likely to rely on commercial development in Farmington to support and enhance their ability to obtain retail goods and services within a reasonable drive time of the city. Figure 17 shows retail drive times from downtown Farmington using 5, 10 and 15 minute drive times. The majority of retail customers most likely to be drawn to Farmington are within a 10-minute drive time. POPULATION & HOUSEHOLD GROWTH TRENDS & ESTIMATES The most recent population and household estimates as published by the Metropolitan Council show Farmington is estimated to have 22,386 people and 7,557 households. Average annual growth rates in Farmington over the past four years are about 2%for population and 2%for households,respectively. We anticipate that Farmington has the potential to exceed the Metropolitan Council's 2020 projections for population and households,most likely by 2019. r� Farmington Downtown Redevelopment Plan Figure 16: Farmington Retail Trade Area ` Prescott valley Rosemount UN Y, CR-42 E 190t, E Lakeville FaAAg on qIW ;.A:. New T"4)Mt,�,E MN SO Mlesville New Market Elko WetKter Randolph f. Cannon Falls Figure 17: Farmington Drive Times Table 1: 2015 Household Expenditures by Selected Product Type - I Amual Expendtures Tam EXW Spending Patented Index to USA Total Average Average Farmington Twin Cues Category (500015) Per M Per HH Market Area Met roArea Goods&Services Index Apparel&Services 31,752 2,904 2,803 125 121 Enterta inment a nd Recreati on 45,704 4,180 3,935 126 122 Nonprescription Drugs 1,673 153 146 118 113 Prescription Drugs 6,364 582 557 117 112 Eye Glasses&Contact tenses 1,225 112 105 125 117 Personal C.areProdurn 6,396 585 558 125 119 Child Care 6,943 635 571 142 127 School Books&Supplies 2,460 225 221 125 122 Smoking Products 5,216 477 S13 102 110 Computer Hardware 3,007 275 265 127 122 Computer Software 284 26 26 130 126 Pea 16,521 691 646 121 ( 114 Food Food at Home 68,853 6,297 10,123 121 118 Food Away from Home 45,475 4,159 3,976 127 121 Alcoholic Beverages 7,643 699 691 126 124 Misc.Beverages at Home 6,462 591 583 118 117 Home Home Mortgage Payment/Rent 146,319 13,382 11,355 143 121 Maintenance&Remodeling Services 24,634 2,253 1,988 134 118 Maintenance&Remodeling Materials 4,166 381 326 127 109 utilities 66,960 6,124 5,883 121 116 Household FurnW*w6 Equipment.&Operatiam ® �� Household Textiles 1,345 123 119 125 121 Furniture 7,380 675 630 131 122 Floor Coverings 339 31 30 126 120 Major Appliances 3,849 352 316 131 117 Small Appliances 601 55 54 121 118 Housewares 984 90 87 125 120 Luggage 131 12 11 132 124 Telephone&Accessories 656 60 S8 120 116 Lawn&Garden 6,943 635 498 126 115 Moving/Storage/Frei&Express 962 88 93 119 126 Housekeeping Supplies 9,589 877 842 121 117 Financial&kmxance hdeu Investments 34,234 3,131 3,072 114 112 Vehicleloans 61,165 5,594 5,066 132 120 Owners&Renters Insurance 7,107 650 576 129 114 Vehicle I nsur ante 16,521 1,511 1,442 125 119 Life/Other Insurance 35,557 3,252 53S 130 116 Health Insurance 6,396 585 3,065 123 116 Transportation Index Cars and Trucks(Net OL&Iay) 56,332 5,152 4,741 127 117 Gasoline and Motor Oil 47,158 4,313 4,071 123 116 VehicleMaintenarre/Repair 15,406 1,409 1,333 126 119 Travel Index Airline Fares 6,965 637 604 133 126 lodging 6,604 604 s50 133 122 Vehicle Rental 525 48 43 142 129 Food&(kink 6,681 611 565 131 121 Summary Goods&Services 127,545 10,845 10,346 Food 128,431 11,746 15,373 Home 242,079 22,140 19,552 Household 32,780 2,998 2,738 Financial and Insurance 160,981 14,723 13,756 Transportation 118,896 10,874 10,145 Travel 20,775 1,900 1,762 Total 832,487 75,226 73,672 Note,The Spending Potential Index is based on households and represents the amount spent for a product or service relati veto the national benchnarkindex of 100_ Sources:SSRI Inc;Maxfield Research and Consulting,LLC Farmington Downtown Redevelopment Plan CONSUMER EXPENDITURES ANALYSIS Table 1 presents information on retail expenditures for households located in the Farmington Retail Trade Area. The data was compiled by ESRI Inc.;a national demographics forecasting firm and is derived from national data on household expenditures through the Consumer Survey of Expenditures. The report uses a benchmark index of 100. Proportions above 100 indicate that households in the retail draw area spend proportionally more on items or services in that category than the average US household. Proportions below 100 indicate the opposite--that households spend less than the average US households on those items or services. The table shows that households in the Farmington Retail Trade Area spend more than the average US household in nearly every expenditure category shown on the table. Categories that exhibit the highest proportions above the 100 benchmark a re: Child care Home mortgage payments Computer software Vehicle loans Life insurance Major appliances Vehicle rental-travel Airline fares Lodging Other retail goods that are still above the 100 benchmark but not as high as the above categories include: Apparel and services Food away from home Alcoholic beverages Computer hardware Entertainment and recreation Personal care products and services Eye glasses and contact ienses Lawn and garden Housewares and small appliances Market Analysis RETAIL GAPS ANALYSIS In considering businesses that might take advantage of the high proportion of consumer expenditures as identified in these categories,Maxfield Research also completed a retail gaps analysis. The retail gaps analysis identifies the amount of retail sales within the Retail Trade Area,the number of business establishments,and categories where existing or new businesses would be able to capture a portion of sales from the Retail Trade Area that are"leaking"out to other retail areas. This information is presented in Table 2. Table 2 shows that the Farmington Retail Trade Area is currently losing nearly 75 percent of possible retail expenditures to other locations outside of the Retail Trade Area. Farmington is situated on the edge of a more rural area with limited options available in small towns and surrounding townships for the development of commercial retail goods and services. A portion of those households would look to Farmington to be able to satisfy some of that demand.Categories with the highest proportions of leakage outside of the Retail Trade Area are: Stores associated with items specifically for the horne such as: - Home furnishings - Furniture - Appliances - Building materials - Lawn and garden supplies Other categories include: - General merchandise stores - Health and beauty stores - Apparel and accessories stores - Gift stores - Limited and full service eating places(coffee shop,small family-friendly restaurant, outdoor seating for bakery) Not all of these categories have store formats that would"fit"or be acceptable in a downtown location,but some do. Gift shops,drugstores,hair salon,kids salon, restaurants(casual and sit-down)are types of businesses that would be able to capture some of the retail demand that is currently leaving the area. HOUSING ANALYSIS The market analysis included a review of two preliminary alternative redevelopment concepts in downtown Farmington.The first concept showed housing in close proximity to the downtown on two to three sites.Housing in close proximity to the downtown will encourage households to patronize establishments in the downtown if they are desirable and attractive as it will be easy to walk or bike to them rather than having to get into a car and drive a distance.A modest amount of housing above downtown retail shops will provide a more energized environment. Young adults,middle-age singles,couples without children,single-parents,and empty-nesters are household types that are often drawn to an urban downtown district. A variety of housing products,medium to high density,could be offered to attract multiple market segments. Farmington Do4vntown Redevelopment Plan Table 2: 2015 Retail Demand Potential&Leakage Demand Supply Rete Gap Shrrplhc/LcdrslK Number of Industry Group(NAICS Code) (Retail Potential) (Retail Soles) (Demand-Supply) Factor Businesses Total Retail Trade and Food&Drink(NAILS 44-45,722) $417,198,753 56:065,646 $356,133,107 74.5 154 Total Retail Trade(NAICS 44-45) $373,255,341 $49,666231 $323,588,110 76.5 125 Total Food&Drink(NAI CS 722) $43943,412 $11,399,415 $32,543,997 58.8 29 Motor Vehicle&Parts Dealers(NAICS 441) $78,077,192 $5,782,802 $72,294,390 86.2 18 Automobile Dealers(NAICS 4411) $68,013944 $3,338,715 $64,675,229 90.6 7 Ol er Motor Vehicle Dealers(MAIM"12) $5,034,298 $1,850,997 $3,183,301 46.2 8 Auto Parts,Accessories,and Tire Stores(NAILS 4413) $5,028950 $593,090 $4,435,860 78.9 3 Furniture Home Furnishings;Stores(NAICS 442) $8,280,876 $3,013,796 $5,267,080 46.6 20 Furniture Stores(NAICS4421) $4925,627 $1,605,431 $3,320,196 50.8 5 Home Furnishings Stores(MAKS 4422) $3,355,249 $1,406,365 51946,884 40.9 15 Electronics&Appliance Stores(NAICS 4431NAICS 44311 $9,790,969 $279,069 $9,511,900 94.5 3 Bldg Materials,Garden Equip.&Supply Stores(NAICS 444) 513985,615 $4,039,959 59945,656 55.2 16 Building Material and Supplies Dealers(NAIM 4441) $11505,041 $2,974,661 $8,530,380 58.9 10 Lavin and Garden Equipment and Supplies States(NAIG44442 $2,480,574 $1065,298 $1,415276 39.9 6 Food&Beverage Stores I NAICS 445) $56,553,530 $6,886,675 $49,666,855 78.3 15 Grocery Stores(NAICS 44511 $48,515,175 $3,287997 $45,227,178 87.3 8 Specialty food Stores(NAICS 4452) $1,530,055 $270,632 $1,259,423 69.9 2 Beer,Wine,and liquor Stores(NAICS 4453) $6,50$300 $3,328,046 $3,180,254 32.3 5 Health&Personal Care Siores(NAICS 446/NAICS4461) $26,377,523 $4,710,193 $21,667,330 69.7 9 Gasoline Stations;(NAICS447/NAICS4471) $40,093,344 $20,373,472 $19,719,872 32.6 3 Clothing and Clofhing Accessories Stores(NAICS 448) $19,652918 $1914,352 517,738,566 82.2 10 Clothir>gStores(MAKS 4481) $15,236,491 $833,757 514,402,734 89.6 7 Shoe States(NAICS 4482) 53,387,862 $0 53387,862 100.0 0 Jewelry,Luggage,and Leather GoodsSbres(MAKS 4483) $1,028,565 $1,080,595 ($52,03GI (2.5) 3 Sporting Goads,Hobby,Book,and Music Stores(NAICS451) $9,258,588 $1,192,847 $8,065,741 77.2 7 SportingGoods/Hobby/MusiolInstrument StoresINAICS451 $7,238,523 $1,192,847 $6,045,676 717 7 Book,Periodical,and Music Stores(NAILS 4512) $2,020,065 $0 $2,020,065 100.0 0 General Merchandise States(NAICS 452) $67,878,538 $75,172 567,863,366 99.8 1 Department Stores Excluding Leased Depts.(NAICS 4521) $28,581,844 $75,172 $28,506,672 99.5 1 OferGeneral Merchandise Stores(NAICS 4529) $39,296,694 $0 $39,296,694 100.0 0 Miscellaneous Store Retailers(NAICS 453) $9,081,070 51,159,068 $7,922,002 77.4 7 Florists(NAICS4531) $457,560 5Q $457,560 100.0 0 Office Supplies,Stationery,and Gift Stores(NAICS 4532) $1914,566 $68,744 $1845,822 93.1 2 Used Merchandise Stores(NAICS 4533) $1,545,958 $302,253 $1,243,705 67.3 4 ofherMiuelaneous Store Retailers(NAICS4539) $5,162986 $788,071 $4374,915 73.5 13 Nonstore Retailers(NAICS 454) $34,225,178 $238,826 $33986352 98.6 4 Electronic Shoppingand Mail-Order Houses(NAICS 4541) $30358,645 $0 $30358,645 100.0 0 Vending Machine Operaws(NAICS 4542) $1,049,891 $0 $1,049,891 100.0 0 Direct Selling Establishment(NAICS 4543) $2,816,642 $238,826 $2,577,316 84.4 4 Food Services&Drinking PIaces(NAI CS 722) $43943,412 $11399,415 $32,543,997 58.8 29 Full-Service Restaurants(NAICS 7221) $17,964,152 $4,625,009 $13339,143 59.1 10 Limitd-Service Eating Places(NAICS7222) $22,670,533 $6,326,908 $16343,625 56.4 15 Special Food Services(NAICS 7223) $1,458,365 526,493 $1,431,872 96.4 1 Drinking Places-AlcoholicBevera NWCS7224 $1,850362 $421,005 $1,429357 62.9 3 Note: All igures quoted in 2015 dollars. Supply(retail sales)estimates sales to consumers by establishments,sales to businesses are excluded. Demand(retail potenial)estimates the expected amout spent by consumers ata retiil establishment. leakage/Surplace factor measures the relationship between supply and demand and ranges from+100(total leakage)to-100(total surplus).Apositivevalue represents"leakage ofretail opportunity outlide 1 e trade area.Anecative value represents a surplus of retail sales,a market where customers are drawn in from outside fel trade arca. Sources:ESRI:Maxield Research andConsultinc,LLC Market Analysis 0 MARKET REVIEW OF PREFERRED DOWNTOWN REDEVELOPMENT CONCEPT The Preferred Downtown Redevelopment Concept identifies various parcels in the downtown that may be redeveloped over a period of time and provides suggested development density and use concepts for those parcels. This review comments on the Preferred Redevelopment Concept from a market perspective,identifying potential support and challenges that may arise based on the concept presented. The downtown area was divided into four subareas: Downtown Core Downtown Edges Riverside West Riverside North It is our understanding that parcels in the Downtown Core and the Downtown West Edge are those that would be considered first for redevelopment with the Downtown East Edge and Riverside North following after. Downtown Core Suggested redevelopment in the Downtown Core includes refurbishing existing vacant structures to fill them with new commercial users. Refurbishing typically provides lower cost space to small and medium size businesses that may not have the capital to invest in purchasing a building or want to initially check out a market. Refurbishing can provide updated mechanicals,exterior fa4ade improvements, and a reconfiguration of the interior space to suit a new user. The smaller building sizes allow for multiple users to occupy new space creating a greater variety of businesses and increasing the potential to draw customers to the downtown area. A potential mix could include some restaurant dining,coffee shop,and/or soft goods retailers that are looking for smaller size spaces. The average retail space for small to mid-size users is between about 1,500 and 3,000 square feet. These smaller buildings can provide that niche for the downtown. The larger parcel at the corner of 3rd St and Elm St/Highway 50 is currently proposed for mixed use with commercial at the street level and housing above. The current drawing of the building on this site does not show any off-street parking for this facility. Parking for the housing could be accommodated under the building, but is quite expensive and would most likely require some type of assistance to make that type of design economically feasible. With a number of smaller buildings in the downtown identified for redevelopment,this larger site is more likely to be attractive to a larger national retailer. However,larger national retailers will require off-street parking. Some users may also want a drive-through for their customers. Lease rates for new space in this type of use typically approach $18.00 to$20.00 per square foot. Most small businesses would have difficulty paying lease rates at this level. Providing housing(likely rentals)at this site would be attractive to prospects. The difficulty would be in filling the commercial space at a lease rate that would be Farmington Downtown Redevelopment Plan economically viable for smaller users if the space were to be subdivided into smaller segments. Visibility and signage for the commercial space would be critical. Most properties that have housing above with retail below have been built in urban districts where there is greater population density. Despite higher densities,many of these properties have also suffered because the design of the rnixed-use development favors the housing and not the commercial space. The commercial space often attracts smaller businesses,has higher turnover rates,and higher average vacancy rates. The parcel at 3rd St and Elm St/Highway 50 is a key parcel in the Downtown Core and the"gateway"to the downtown. We believe that it is critical to ensure that the redevelopment of this parcel is successful to support momentum for additional redevelopment in the Downtown Core. At this time,we would not recommend incorporating housing above commercial space at this location. Other sites are available in close proximity to the Downtown Core that can support housing in more traditional formats and would increase the number of people downtown that view it as their shopping district. Two other sites in the Downtown Core have been identified for housing,4th and Elm and directly facing Elm Street between 3rd and 4th Streets. The parcel at 4th and Elm Street could possibly be considered for mixed-use development,but at a later date as other redevelopment is completed and downtown business activity has increased. Rental rates for new apartments in third-tier suburban locations are ranging from $1.50 to $1.70 per square foot,on average. In order to support new rental housing in the downtown,grants or low-interest loans would likely be needed to ensure that the apartments would be economically viable. Downtown Edges Two primary redevelopment sites are shown in the West Edge,north and south of Spruce Street. An open space buffer is shown between the proposed housing and the train tracks. As we understand,there are about ten trains per day that move through downtown Farmington and the train tracks are not a"whistle free°zone. While the open space buffer would provide green area between the proposed rental housing and the train tracks,units situated along the train tracks may be more difficult to lease if tenants are bothered by noise and vibration from the trains. Developing housing on this property is likely to require more insulation,higher quality windows and other sound attenuation practices to mitigate and reduce the noise from the train traffic. To the southeast of the Downtown Core,a parcel is shown at Walnut between 4th and 5th Streets with attached housing. These units may be either rental or ownership. Market analysis identified a potential demand for either rental apartments or ownership multifamily at a modest price point. With the greater number of redevelopment sites identified as apartments,we recommend that this property be targeted for ownership housing,either young to mid-age households or empty-nester households(single-level living). Market ,Analysis Riverside West Redevelopment parcels in the Riverside West district show a commercial expansion space of 5,000 square feet extending out from the current grocery store. In addition two other redevelopment buildings are shown in this area,one that is proposed to incorporate housing adjacent to a second building that would have commercial uses. There is an existing building that is situated to the east from the two proposed buildings. From the drawing it appears that most of the parking would be located north of the existing building. It is unclear how the access and/or visibility to the new commercial space would be provided. Convenient access and a high level of visibility are usually critical to most retailers. The layout of these new buildings do not appear to improve the access or visibility of the existing building and to a degree,seem not to offer the new space the appropriate level of access or visibility that most retailers would desire. It is our recommendation that this portion of the site may need to be entirely reconfigured to offer the best potential layout for new space. Riverside North Phasing of redevelopment is likely to position the Riverside North district as a later phase of redevelopment,although depending on market conditions,some parcels may redevelop in this area prior to others in some of the other districts. The sites identified for redevelopment are all near the Kemps plant on the north side of the Downtown Core and are proposed to include a multi-story building which could be general occupancy apartments or senior housing. Other parcels show attached housing which may either be rental or ownership. Again,with a significant amount of rental already suggested for other sites in and near Downtown Core,we would recommend that the lower density units be targeted as ownership versus rental. Phasing We recommend that the city initially focus on redevelopment in the Downtown Core as redevelopment incorporates commercial and residential uses. Redevelopment to the west in the Downtown Edge district could accompany redevelopment of the Downtown Core to generate additional household growth that would support new business uses contemplated for the Downtown Core area. Additional redevelopment outside of the Downtown Core should be prioritized regarding funding support that may be requested to encourage new uses. We recommend beginning with the Downtown Core,then moving to the West Edge and East Edge districts,then up to Riverside West and finally over to Riverside North. However,if private developers desire to redevelop various areas outside of the Downtown Core with no public assistance from the community,the city may want to consider the potential benefits of early redevelopment of some sites outside of the Downtown Core if the uses on those sites would complement uses in the Downtown Core. Farmington Downtown Redevelopment Plan CHAPTER 04 : IMPLEMENTATION •� ( �rrrrrr - __ Without clear direction on implementation, the Plan risks remaining little more than a sheaf of papers. This chapter focuses on the keys to achieving the vision presented in this Plan. KEYS TO IMPLEMENTATION The experience of Farmington and other cities shows that several factors are important ingredients for successful redevelopment: Patience.The vision for this Plan cannot be implemented overnight.The time frame for implementing this Plan reflects its evolutionary nature;it looks forward over a period of years.Redevelopment often requires the patience to wait for the right things to happen,rather than making changes simply to be seen doing something. Commitment.Commitment to the Plan and patience go hand-in-hand. This Plan does not simply seek to attract development to downtown;it also seeks to move downtown toward a vision for the future.There is a difference. Commitment to the Plan means the willingness to actively promote public and private investments that achieve the vision,and to deter developments that do not meet the objectives of the Plan.Not all of these decisions will be easy. 42 Public-Private Partnerships.Implementation of this Plan requires a continuation of the public-private partnerships that created the Plan.Both city government and businesses must actively work to achieve the vision for downtown. Financial Reality.A large portion of the implementation chapter discusses roles and responsibilities for the city.Implementing the Plan requires the careful investment of public funds,but the private side of the financial equation must not be overlooked.New development and existing businesses will pay for part of the improvements called for in the Plan.Implementing the Plan seeks to balance the investment in Plan initiatives with the creation of a financial environment that sustains businesses. Strategic Investments.If financial support for the Plan was unlimited,the need for strategic decisions would be less important.With limited funds,though, every expenditure is crucial.It is not possible to undertake immediately all of the initiatives described in this Plan.Needs and opportunities not contemplated in the Plan may arise in the future.Every investment must be evaluated for its impact on achieving the vision for the future of downtown Farmington. The Plan provides a guide for private and public investments to revitalize downtown in a manner consistent with this Plan.The following strategies will assist the city in implementing the Plan and realizing the vision for downtown. ROLES & RESPONSIBILITIES There is a temptation to give full responsibility for implementation of the Downtown Redevelopment Plan to Farmington's city staff.Many of the powers and resources needed to undertake the strategies described in this Plan are held by the city.The success of downtown Farmington cannot be made the sole responsibility of city government.Achieving the vision for downtown requires on-going collaboration of both public and private stakeholders.This section describes the roles and responsibilities of key parties. Business and Property Owners While the city influences the physical setting,downtown largely remains a place of private activities.Individual businesses determine the types of goods and services available in downtown.Individual businesses make decisions about how they operate.Property owners decide how to maintain and improve their buildings.Each of these factors plays a role in the long-term success of downtown. City Council The City Council must be committed to implementing this Plan.Important redevelopment powers reside solely with the City Council.Among the powers that may be needed to undertake redevelopment powers in the downtown are: Approving the establishment of TIF districts. Approving the establishment of special service districts and levying service charges on properties in the district. Levying special assessments for public improvements. Farmington Downtown Redevelopment Plan Issuance of general obligation bonds to finance redevelopment and improvement projects. The City Council must be engaged in the redevelopment process and be prepared to take action as needed.Actions by the City Council can enhance the downtown in other ways.Some examples include: Keeping and adding community events to make downtown a focal point. Keeping civic institutions concentrated in downtown. Avoiding subsidizing non-downtown projects that include businesses that should be located in downtown. Providing staff capacity and resources needed to plan and undertake projects in downtown. EDA The Farmington Economic Development Authority(EDA)should play a key role in implementing the Plan.Many municipal development powers for redevelopment are given to the EDA(using the powers of a housing and redevelopment authority). Additionally,EDAs often have more time to focus on plan implementation than a City Council. Some important EDA powers include: Acquiring property. Making loans. Constructing and operating public facilities. Establishing TIF districts. The section"Using the HRA Act"at the end of this chapter explains the steps to better access statutory redevelopment powers. Downtown Partnerships Building partnerships and collaborative teams,both internally at the city and externally with stakeholder agencies,will enable the city to leverage everyone's interests and needs related to downtown. Internally,it is important that city departments work collaboratively on planning,programming,and investing in downtown improvements.For example,new trails and a plaza/park in downtown impacts the community development,parks and recreation,and municipal services departments,at a minimum.Externally,the city needs to partner with other agencies with jurisdictional authority or property ownership in downtown,such as Dakota County(library,highway,community development agency),School District, and MN Dept.of Natural Resources. Implementation -c 9� ,1 1 GETTING STARTED-DOWNTOWNAMON PLAN Implementation of the Downtown Redevelopment The use of an annual Downtown Action Plan keeps an Plan is not a single action.It is a collection of public and active and current focus on achieving the vision for private actions that occur over a period of years.Creation downtown.This Action Plan also becomes a tool for and use of a Downtown Action Plan is a valuable tool communication and collaboration between the city and forjumpstarting and maintaining progress with the other stakeholders. implementation process.Contents of an action plan The recommended elements of a Downtown Action Plan would include: for 2016/2017 include the following actions,some are Identification and prioritization of actions and investments short-term while others are first steps toward long-term for the next year, initiatives: Review of progress made in the past year, 1. Design and build the key trail connections between Assignment of responsibilities for guiding these implementation strategies;and the Downtown Core and the river,along Spruce Street, Determination of budget and funding needs. 3rd St/Pine St to Kuchera's Entrance,and Highway 50, including visible crosswalk markings. 2• Add bike racks and wayfinding signage to promote downtown as a bike trail hub. ' Farmiru:on D,),vnrown R . elapm-n PI3r t K M �lo F" 4r }� s r tf Y 3. Establish a city sidewalk cafe program that permits the 7. Establish downtown partnerships focused on addition of outdoor sidewalk seating and gathering retention,improvement,and marketing of existing places along downtown streets,including the use of and potential downtown destinations and events, parking spaces for seasonal outdoor patios. including farmers'market and municipal liquor store. 4. Design and build a Rambling River Center Plaza in 8. Explore city policies and strategies for proactively the open area west of the Rambling River Center and guiding successful redevelopment of the gateway fronting onto Oak Street as a multi-functional plaza for corner site at 3rd Street&Highway 50. daily informal uses as well as event uses,such as Dew 9. Establish a more visible and accessible home for Days and Dazzle Day. downtown plans,initiatives,and events,such as a 5. Establish a city grant or low-interest loan program downtown page on the city's website and a digital targeted for refurbishing of downtown historic and version of the redevelopment plan. commercial buildings,both exteriors and interiors. 10. Leverage the knowledge and passion of the project 6. Identify specific locations and create downtown task force by reconvening the group periodically to gateway identity features and directional signage. address challenges and assess progress of the plan's implementation. Implementation LAND USE CONTROLS The city manages land use with several different tools.The primary tools are the city's Comprehensive Plan and the adopted Zoning Ordinance.Existing land use controls should be reviewed and revised as necessary to ensure consistency with this Plan.This step allows development to occur that fits the Plan.1-hese modifications will also prevent land uses that do not conform with the Downtown Redevelopment Plan. Comprehensive Plan The Plan for the revitalization of downtown should be made part of the Comprehensive Plan either by incorporation into the document or by reference. The city's 2030 Comprehensive Plan sets the long-term framework for development within the entire community.Based upon the 2030 Comprehensive Plan,other land use controls such as the Zoning Ordinance are created.These zoning regulations, for example,must be consistent with the 2030 Comprehensive Plan and in that way the city ensures that development conforms to the community's goals.The currently adopted 2030 Comprehensive Plan does acknowledge redevelopment of downtown and does recognize that a mix of land uses,including residential,would be acceptable. As a result of the Downtown Redevelopment Plan's vision and illustrative plan, future land use designation changes are recommended to the 2030 Land Use Plan Map in the city's 2030 Comprehensive Plan,which are identified on the following page 21. Zoning Zoning Map.In order to ensure consistency between the land use plan map and the zoning map,the city should consider potential changes to the zoning map, including the following: Change B-2 zoning east of 4th Street to R T. Change B-3 zoning west of rail line,north and south of Spruce Street,to R-5. Change B-2 zoning west of rail line and adjacent to the Vermillion River to R-5. Change B-3 zoning east of rail line,and along Pine Street,to R-5. Downtown Commercial Overlay District Design Standards.The city has established a downtown overlay district that has required design standards for all new construction,renovations,or additions of commercial buildings.To implement the Downtown Redevelopment Plan,it is recommended that the city consider the following changes to the overlay district's design standards: Make the design standards applicable to multi-family buildings,notjust commercial buildings. Expand the overlay district's boundaries east to 5th Street to be consistent with the boundaries of the Downtown Redevelopment Plan. While the B-2 zoning district is exempt from providing off-street parking spaces, this exemption or a reduced off-street parking quantity standard should be Farmington Downtown Redevelopment Plan r . •.r rr . Ir r I '•r• •rr .rr Lrr III 1111 � i MOOR ��,... ■Illi ill 111111 ■ 11111■� 11 :%1111 :II.. 1111 Ill - 1111111 '!��' 111 1111 i1 - IIII'�'� ' _ _ 111 ..._' :11■ 11 � Illl�i t°%�� 111111111111 :1 11111: 1111: ■1 ' " 11 / : :11 $�� IIII: :11111111 L i 48 FOCUS-GATEWAYCORNER SITE >> Redevelopment will likely require greater density.This (SOUTHWEST CORNER OF3RD STREET&HIGHWAY50) density creates income potential needed to offset the additional costs of redevelopment. This property is identified as a key redevelopment site > Redevelopment is more expensive.At a minimum, in the Downtown Redevelopment Plan.This property redevelopment incurs costs for the demolition and clearance provides'an excellent setting to illustrate the continuum of existing structures. of potential city roles in the redevelopment process. >> Redevelopment increases parking demand.Commercial/ office uses may be able to rely on surface parking at and: Market Based.This approach represents the minimal around the site.Residential uses often require on-site, role for the city.The"market"will determine the timing structured parking.Structured parking spaces are often 3 to and nature of redevelopment.The city will influence 5 times more expensive than surface parking. redevelopment through land use controls(zoning and Even if the approach is to rely on developers to bring forth Comprehensive Plan).Financial assistance is not provided. redevelopment projects,the city must be prepared to be This approach creates the most difficult path for a financial partner.The additional costs of redevelopment, implementation.The economics of redevelopment make as envisioned in the Plan,cannot be supported solely by significant change on this property unlikely in the near- income from the use of this property. term.The income potential of the property limits the City-Led Redevelopment.This end of the continuum amount of redevelopment investment that is financially represents a proactive city role.While this role could feasible for a developer.Given,'the financial constraints, take'a variety of forms,a desirable approach would be the best outcome would be some combination of the acquisition of the property.This action has several commercial and office uses within the existing structure benefits:(1)the developer is not faced with the potential with some revitalization. challenge of land acquisition;(2)the city controls the cost It should be noted that this type of use could actually of land fora redevelopment project;(3)ownership creates become a barrier to more significant redevelopment.The greater control over future development;and(4)land near-term reinvestment could make the property more acquisition demonstrates city support for redevelopment. expensive,increasing the cost of a future redevelopment This approach also carries greater financial commitment project. and risk.Initial funding is required to acquire the property. There are no guarantees that all costs will be recovered Market Based with FinancialAssistance.This approach from redevelopment.The timing of redevelopment is similar to the previous scenario with the exception remains difficult to predict. that the city uses financial assistance to achieve desired public objectives.The purpose of financial assistance One variation of this approach would be to relocate the in the scenario is to create outcomes that would not city's liquor store to this site.Although this property may occur without this assistance.Financial assistance makes not be the optimal location for the liquor store,it has additional investment financially feasible.It also creates several benefits for the Plan: the ability to negotiate for public objectives that are not » Downtown attraction.One of the goals of the Plan is to possible solely through the use of land use controls.Some attract more people to the downtown.The strategy of moving the liquorstore would be to enhance both its examples of public objectives include: physical space and its services to make ita destination. » `Incentive to attract desired businesses to the Downtown. Attracting people expands opportunities for all businesses. Exterior improvements to the building. » Development control The city has complete control over » Other changes in the nature of the reinvestment to more the project.The building fa4ade.at this key intersection is strongly support the Downtown Redevelopment Plan. important There may be other aspects ofsite design and uses that would be beneficial to the overall Plan. Market Based Redevelopment.The previous examples » Development riming.Relocation of the liquor store is the assume that future uses occur within the existing fastest means ofredeveloping the site and realizing the - structure:Redevelopment assumes that a new structure related benefits for the downtown. is built on this site.Redevelopment has several important implications: 4trnin ton Downtown RedeV61oprnent Pian' Downtown ELM STREETIHWY50 Gateway Feature/ Signage/Public Art New Retail or Mixed-Use (Retail with Office or Residential Above) Building " W 1 Farmers'Market Open Air Pavilion that Reflects Character of Historic Railroad Depot „ 2nd Street Designed as a Multi-Functional Event , . Street that Accommodates —\ Parking When Events Are ! e W Not Occurring — s _ H cc I s tel-•—� New Retail Buildings I Potential redevelopment concept for the yule way comer si[�shuvvn obuve focuses on a new building located right up to the sidewalk on both 3rd Street and Elm Street/ Highway 50 and a potential formers'morketopen space/street on 2nd Street. Implementation ATTRACTING INVESTMENT The Downtown Redevelopment Plan will be implemented by attracting private investment to downtown.This investment will come from property owners and from new development partners for the city. Solicitation of Proposals The planning process has raised awareness about the potential for revitalization in Downtown Farmington.For the purposes of this Plan,redevelopment means demolition of existing structures and construction of a new building or buildings consistent with the downtown framework.A potential development partner may be apparent at the time of implementation. If not,the city may use a request for proposal (RFP) process to obtain a private development partner for a redevelopment project.The RFP allows the city to explain its objectives and to find the developer best suited to bring the segments of the design framework to fruition in this area.The steps in the RFP process include: Prepare and distribute RFP Select preferred development partner Negotiate preliminary development agreement. Approve final development agreement by EDA. Planning review and approval process. Revitalization Revitalization is an important outcome of this Plan.In the Plan,revitalization is used where existing structures will remain and will be upgraded.The city hopes to create an environment that encourages property owners to invest in the betterment of existing buildings and sites,perhaps through financial incentives.Tools to create that environment include: Grants for initial architectural and design work. Low interest loans to finance improvements. Use of public funds in matching grant program for qualifying improvements. Technical assistance for property owners wishing to explore revitalization projects. The city and the EDA should take steps to establish a specific revitalization assistance program following adoption of this Plan.Without a commitment to this program,revitalization of existing structures may be set aside as resources are applied to other,larger redevelopment initiatives. Land Acquisition Opportunities may arise to acquire land not related to a current development proposal.It is advantageous to have the ability to purchase land at key locations when offered for sale by property owners.This approach offers several benefits: ® Farmington Downtown Redevelopment Plan A"willing seller"purchase often reduces the long-term land expense and the public cost of redevelopment. The assembly of land enhances the potential for redevelopment. Land costs are certain and the delays to assemble a site are reduced. Control of land minimizes the need for condemnation.The challenge of acquiring and banking land in advance of redevelopment is funding.The city will be looking into funding alternatives for land acquisition as well as specific redevelopment projects. FINANCIAL TOOL BOX Revitalization or redevelopment of downtown will be more difficult without the financial assistance of the City of Farmington.The need for public financial assistance comes from several factors: Redevelopment projects often prove not to be financially feasible without public assistance.Projected revenues available from the new development do not cover the costs of redevelopment.This"gap"between revenues and expenditures stems from a variety of causes.Land costs are often higher than alternative"green field"locations.The price of a redevelopment site includes land and structures.Further,redevelopment includes costs for demolition and clearance of existing structures.There are also expenses(direct or indirect)for the relocation of existing businesses.Often these additional costs cannot be passed on through higher lease rates or sale prices. Structured enclosed parking may be three or four times more expensive than outdoor surface parking. The Plan seeks a higher level of design and building materials in downtown.The Plan anticipates that the city's downtown will create a showcase area for the community and therefore higher quality design and materials are anticipated. City financial participation in redevelopment provides a means of achieving this goal. Revitalization,rather than full-scale redevelopment,is also costly and limited by some of the same factors as the redevelopment process.The current economic environment of downtown may not generate enough additional income for the property owner to invest in enhanced building facades or signage.Public financing may be needed to support a portion of the cost of improvements. The remainder of this chapter provides an overview of the primary tools available to the City of Farmington for financing actions related to implementation of this Plan. Tax Increment Financing Tax increment financing(TIF)is the primary development finance tool available to Minnesota cities(Minnesota Statutes,Sections 469.174 through 469.179). TIF is simple in concept,but complex in its application.Through tax increment financing,the property taxes created by new development(or redevelopment)are captured and used to finance activities needed to encourage the development. The challenge in using TIF lies with the complex and ever-changing statutory Implementation limitations.These complexities make it impractical to provide a thorough explanation of tax increment financing as part of this Plan.Instead,this section highlights the use of TIF as it relates to the implementation of the Plan. Uses Tax increment financing can be used to finance all of the important implementation actions facing the city:land acquisition,site preparation,parking, and public improvements.In addition,TIF creates a means to borrow money needed to pay for redevelopment costs. Type of TIF Districts The implementation of the plan may require the creation of one or more new TIF districts.The following overview highlights some of the considerations in creating a TIF district.This information is intended solely as a basic framework for finding applications within downtown.All specific uses will require a thorough analysis of all statutory factors.The ability to meet the statutory criteria for establishing a district is a key to the use of TIF.Three types of TIF districts have application to the plan: » Redevelopment.A redevelopment TIF district has two basic criteria:(1)parcels consisting of 70%of the area of the district are occupied by buildings,streets, utilities,or other improvements;to be occupied,not less than 15%of the parcel's area must be covered by the improvements;and (2),more than 50% of the buildings, not including outbuildings,are structurally substandard to a degree requiring substantial renovation or clearance(as defined by statute).A redevelopment district may consist of non-contiguous areas,but each area and the entire area must meet these criteria; » Renewal and renovation.A renewal and renovation district requires similar, but reduced criteria.The following three factors must exist:(1)the same 70% occupied test applies;(2)the minimum amount of structurally substandard buildings drops to 20%;(3)30%of the other buildings require substantial renovation or clearance to remove existing conditions(such as inadequate street layout;incompatible uses or land use relationships;overcrowding of buildings on the land;excessive dwelling unit density;obsolete buildings not suitable for improvement or conversion;or other identified hazards to the health,safety,and general well being of the community); » Housing.A housing TIF district is intended to contain a project,or a portion of a project,intended for occupancy,in part,by persons or families of low and moderate income.A district does not qualify as a housing district if the fair market value of the improvements,which are constructed in the district for commercial uses or for uses other than low and moderate income housing, consists of more than 20%of the total fair market value of the planned improvements in the development plan or agreement.Several variations of housing districts may also apply different rent and income restrictions and apply to owner-occupied and rental housing.These districts have typically been established and managed by the Dakota County Community Development Agency(DCCDA). ® Farmington Downtown Redevelopment Plan Limitations The use of TIF as a financing tool also poses limitations: » Use of Tax Increments.The use of tax increment revenues is controlled by both State Law and by a local plan.State Law sets forth specific limitations based on the type of TIF district.These limitations generally tie back to the original criteria used for establishing the district.For example,at least 90%of the revenues derived from tax increments from a redevelopment district or renewal and renovation district must be used to finance the cost of correcting conditions that allowed for the designation of the district.The use of tax increments must also be authorized by a tax increment financing plan adopted by the city; » Pooling.The term pooling refers to the ability to spend money outside of the boundaries of the TIF district.For redevelopment districts,not more than 25% of revenues can be spent on activities outside of the TIF district.The limit is 20% for all other districts.Monies spent on administrative expense count against this limit.This limit reduces the ability of TIF to pay for area-wide improvements and to use excess revenues to support other development sites; » Timing Constraints.Timing factors must be considered in creating aTIF district. Establishing a district too far in advance of actual development may limit future use.Within 3 years from the date,of certification,the city must undertake activity within the district.The statutory criteria of activity includes issuance of bonds in aid of a project,acquisition of property,or the construction of public improvements.Without qualifying activity,no tax increment can be collected from the district.Within 4 years from the date of certification,the city or property owners must take qualifying actions to improve parcels within the district.All parcels not meeting these statutory criteria must be removed (knocked down) from the district.Upon future improvement,any parcel so removed may be returned to the district.After 5 years from the date of certification,the use of tax increment is subject to new restrictions.Generally,tax increment can only be used to satisfy existing debt and contractual obligations.The geographic area of theTlF district can be reduced, but not enlarged,after 5 years from the date of certification. Tax Abatement Tax abatement acts like a simpler and less powerful version of tax increment financing.With TIF,the city controls the entire property tax revenue from new development.Under the abatement statute(Minnesota Statutes,Sections 469.1812 through 469.1815),the city,county and school district have independent authority to grant an abatement.Acting alone,the city cannot use tax abatement to generate the same amount of revenue as TIF.Nonetheless,tax abatement provides a valuable tool for the downtown initiatives.Certain projects may be of sufficient importance to encourage county and/,or school district abatement and achieve additional funding capacity. Implementation Uses Abatement in Minnesota works more like a rebate than an abatement.The city(and other units abating taxes)adds a tax levy equal to the amount of taxes to be abated. The revenue from the abatement levy can be returned to the property owner or retained and used to finance development activities.Tax abatement can be used to finance the key redevelopment actions in the downtown;such as land acquisition, site preparation and public improvements.Tax abatement is perhaps best suited as an incentive for reinvestment in existing property.While TIF deals with only the value from new development,abatement can apply to both new and existing value.This power provides the means to encourage building rehabilitation and storefront improvements.The city could agree to abate all or part of the municipal share of taxes to encourage reinvestment tied to the plan. The statute grants the authority to issue general obligation bonds supported by the collection of abated taxes.The proceeds of the bonds may be used to pay for(1)public improvements that benefit the property,(2) land acquisition,(3) reimbursement to the property owner for improvements to the property,and (4) the costs of issuing the bonds. Limitations State law places several important limitations on the use of tax abatement: The total amount of tax abatements for each political subdivision is capped.The total abated taxes in any year cannot exceed the greater of ten percent(10%) of the net tax capacity of the political subdivision for the taxes payable year to which the abatement applies,or(2)$200,000. If one political subdivision declines to abate,then the abatement levy can be made for a maximum of 15 years.If the city,county and school district all abate, then the maximum period drops to 10 years; Taxes cannot be abated for property located within a tax increment financing district. Special Assessments Public improvements are often financed using the power to levy special assessments(Minnesota Statutes Chapter 429).A special assessment is a means for benefiting properties to pay for all or part of the costs associated with improvements,and to spread the impact over a period of years.From a city perspective,this authority provides an important means of raising capital. Uses Special assessments can be used to finance all of the public improvements needed to implement the Plan.Eligible improvements include streets,sidewalks,street lighting,streetscape,and parking.Special assessments provide a means to borrow money to finance public improvements.Chapter 429 conveys the power to issue general obligation improvement bonds to finance the design and construction of public improvements.Important factors in the use of improvement bonds include: A minimum of 20%of the cost of the improvement to the city must be assessed against benefited properties; ® Farmington Downtown Redevelopment Plan Beyond the 20%threshold,any other legally available source of municipal revenue may be used to pay debt service on improvement bonds; Improvements bonds are not subject to any statutory debt limit; Improvement bonds maybe issued without voter approval. Limitations Careful consideration must be given to setting the amount of the assessment. From a legal perspective,the amount of an assessment cannot exceed the benefit to property as measured by increased market value.There are also practical considerations. Benefiting property owners should pay for a fair share of improvement costs without creating an economic disincentive to operating a business in downtown.Within this limitation,several factors will shape the amount of the assessment: The amount of the assessment must be 20%or more of the improvement cost to allow the issuance of bonds; Local improvement policies and/or decisions made on previous projects often create parameters for assessments. Likewise,assessment decisions should be made with consideration of the potential implications for future similar projects; The assessment must strike a balance between equity and feasibility.Properties that benefit from improvements should pay a fair share of the costs.The assessment must be affordable for both the property owner and the city. Reducing the assessment to the property requires the city to allocate other revenues to the project. Special Service District A special service district is a tool for financing the construction and maintenance of public improvements within a defined area.Minnesota Statutes Sections 428A. 01 through 428A.10 govern the creation and use of special service districts.This legislation is currently scheduled to expire in 2028.A special service district provides a means to levy taxes(service charges)and fund improvements to and services for a commercial area. Uses A special service district has several applications for downtown Farmington: The district can provide an alternative to special assessments as a means of financing some of the public improvements in downtown.The service district approach avoids the benefits test imposed by special assessments.The test for the service district is that the amount of service charges imposed must be reasonably related to the special services provided.The costs of shared parking or streetscape improvements,for example,may be better spread across a district than through assessments to individual properties. A special service district can provide for maintenance of public improvements. Some of the improvements described in the Plan require a level of maintenance above the typical public improvement.Items such as banners and planted Implementation materials must be maintained and replaced at a faster rate than that expected for streets or utilities.A higher standard of cleaning and snow removal may be expected in downtown.Without a special service district,these costs are typically borne through the General Fund of the city. A special service district provides a means of providing and operating the downtown parking system.Use of a special service district should be considered during the negotiation of a development agreement. If the city is going to use a special service district,the city should seek agreement to a petition and waiver of veto and other objections related to the use of a special service district.The development agreement must address both the establishment of the service district and the levy of a service charge. Limitations The use of a special service district is subject to some important constraints: The process to create a district and to levy taxes must be initiated by petition of property owners and is subject to owner veto.The use of a special service district requires a collaboration of property owners and the city.There are two separate steps in the process:(1)adoption of an ordinance establishing the service district and(2)adoption of a resolution imposing the service charges. Neither step can be initiated by the city;the city must receive a petition to undertake the processes to create the special service district and to impose service charges.At a minimum,the petition must be signed by owners representing 25%of the area that would be included in the district and 25%of the tax capacity subject to the service charge. The actions of the City Council to adopt the ordinance and the resolution are subject to veto of the property owners.To veto the ordinance or the resolution, objections must be filed with the City Clerk within 45 days of initial City Council action to approve.The objections must exceed 35%of area,tax capacity,or individual/business organizations in the proposed district.The specific veto requirements depend on the nature of the service charge.The service charge applies solely to nonresidential property.State law limits the application of a service charge only to property that is classified for property taxation and used for commercial,industrial,or public utility purposes,or is vacant land zoned or designated on a land use plan for commercial or industrial use.Other types of property may be part of the service district,but may not be subject to the service charge.A housing improvement area could be employed for owned housing elements of a redevelopment project. General Property Taxes General property taxes can be used to finance many of the services,improvements, facilities and development activities needed to implement the Plan.There are a variety of ways to provide property support.Taxes may be levied through the General Fund,to pay debt service on bonds,and as a levy for a development authority(FDA or HRA). Farmington Downtown Redevelopment Plan Grant Programs Grant funding from County,Regional,State and Federal programs can be a valuable tool for planning and implementation.The specific nature of grant programs changes over time depending on policy objectives and funding.The following section describes some of the key current programs. Dakota County Community Development Agency (DCCDA) The DCCDA operates several assistance programs targeted at community development and redevelopment: Community Development Block Grant Program. The federal Community Development Block Grant(CDBG) Program provides annual grants on a formula basis to Dakota County,which then distributes funds to participating cities and townships.This program was established to develop viable urban communities by providing decent housing and a suitable living environment.CDBG funding expands economic opportunities for low-and moderate-income persons and eliminates slum/blight conditions. Examples of how CDBG funds could be used in the downtown are acquisition and demolition of blighted properties to assemble sites for redevelopment and construction or substantial rehabilitation of affordable housing. Redevelopment Program. The DCCDA's Redevelopment Program provides staff expertise to cities for redevelopment activities.Projects have ranged from the acquisition of affordable housing sites to the redevelopment of commercial sites on behalf of cities.Staff assistance includes acquisition,relocation,demolition,and environmental remediation. Redevelopment Incentive Grant(RIG)Program. The DCCDA's Redevelopment Incentive Grant Program was created in 2006 to assist cities with redevelopment goals and promote the development of affordable workforce and supportive housing.To date,the program has awarded nearly$7 million to 34 redevelopment projects and 13 plans.All cities in Dakota County are eligible to participate in the program.Applications are solicited annually in the Fall.Maximum award for redevelopment projects is$250,000 and $15,000 for redevelopment planning. Examples of potential uses include: » Acquisition and demolition of blighted properties to assemble property for redevelopment; » Installation of public improvements,including utilities,sidewalks,trails, streetscape improvements; » Land use,planning,marketing and transit oriented development studies; » Construction of structured public parking. Livable Communities Grants The Metropolitan Council provides grants to fund"community investment that revitalizes economies,creates affordable housing,and links different land uses and transportation"There are currently four categories of Livable Communities Grants: Implementation Transit Oriented Development Grants.These grants are targeted at projects that promote higher density/mixed-use development with strong connections to transit.Projects must be located within the one half mile station area zone.Grant funds may be used for site assembly,placemaking,infrastructure,and site cleanup. Livable Communities Demonstration Account(LCDA). LCDA grants are intended for "innovative(re)development projects that efficiently link housing,jobs,services,and transit in an effort to create inspiring and lasting Livable Communities" Grant funds may be used for planning,infrastructure and site assembly. Local Housing Incentives Account(LHIA).The Local Housing Incentives program promotes affordable rental and owned housing opportunities. Tax Base Revitalization Account(TBRA).This program provides funding for the investigation and remediation of brownfields. State Redevelopment Grant Program The Minnesota Department of Employment and Economic Development(DEED) provides grants to help finance the"costs of redeveloping blighted industrial, residential,or commercial sites"Monies from this program can be used for a wide range of activities including land acquisition,site preparation and infrastructure.At least one half of the funding goes to projects located outside of the seven-county metropolitan area. USING THE HRA ACT Many redevelopment powers come to the city through the HRA Act(Minnesota Statutes Sections 469.001 through 469.047).State Law authorizes the EDA to use their powers.This section of the Plan lays the foundation for accessing the necessary statutory authority. Findings To exercise these powers,the HRA Act requires that the City Council make certain findings(by resolution)about the downtown area.The statutory findings focus on two development characteristics:(1)the presence of"substandard,slum,or blighted areas"or(2)a shortage of"decent,safe,and sanitary dwelling accommodations available to persons of low income and their families."While housing needs form part of this plan,the physical condition of buildings and infrastructure are the primary catalyst for public actions. The process of preparing this Plan involved the review and assessment of the existing condition of structures and infrastructure in the downtown area.Through these efforts the city has laid the foundation for using the powers granted by the HRA Act. The assessment of the downtown undertaken through the planning process identifies a variety of factors that show the need for redevelopment and the public actions offered in this Plan.Among the factors present in the downtown area are: » Buildings and improvements that are physically or economically obsolete. » Parcels with faulty arrangement and design and obsolete layout. Farmington Downtown Redevelopment Plan Parcels with excessive land coverage. Parcels with deficient soil conditions. The combination of these and other factors impair the ability of the private sector to correct these factors without the implementation of this plan.The failure to address this situation would not serve the best interests or general welfare of the community.Further,the results of the planning process should provide the basis for findings needed to support city actions under the HRA Act. Redevelopment Plan It would be appropriate to designate the Downtown Redevelopment Plan as a"redevelopment plan"for the purposes of the HRA Act.In designating this redevelopment plan,the City Council will make the following findings: 1.Land in the project area would not be made available for redevelopment without the financial aid to be sought.This Plan identifies the financial barriers to redevelopment in downtown Farmington.The need for financial assistance from the city(and other public bodies)will be determined as part of each project.This finding will be verified throughout the implementation of the Plan. 2.This redevelopment plan will afford maximum opportunity for the redevelopment of the downtown by private enterprise.A fundamental objective of this Plan is to maximize the opportunities for private investment in downtown. Public actions and investments are taken to remove barriers and to provide catalysts for private development. 3.This redevelopment plan is consistent with the needs of Farmington as a whole. To ensure this consistency,the city's 2030 Comprehensive Plan will be amended to support the Downtown Redevelopment Plan. Redevelopment Project Area The downtown planning area,as shown in Figure 1,is designated as the"project area"for undertaking redevelopment projects pursuant to this Plan.This area should also serve as the project area for the purposes of tax increment financing.This designation allows any excess tax increments to be spent in the downtown,subject to the authorizations and limitations of each tax increment financing plan. Implementation w: fn y: +` �• _._ _, �� ,fit _� �,, 1� CITY(3F O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: May Director's Report DATE: May 28, 2020 INTRODUCTION/DISCUSSION Temporary Outdoor Customer Service Areas Resolution Please see the attached press release that provides guidance to our business community on some new flexibility City Council enacted Monday, May 18. With the frequency of updates occurring at the state level, it can be challenging for businesses to stay on top of current guidelines.This link provides a visual summary of the Governor's latest executive order and the roadmap they are likely to follow: https:Hmn.gov/covidl9/for-minnesotans/stay-safe-mn/stay- safe-plan.jsp. Open to Business Update I will be providing a brief update on some changes to the program along with a summary of resources for Farmington businesses. NEXT MEETING Our next regular meeting is scheduled for June 25. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description o Exhibit Temporary Outdoor Customer Service Areas CITY OF I FOR IMMEDIATE RELEASE FARMINGTON Contact:Lauren Siebenaler,Communications Specialist 651-280-6807 1 LSiebenaler@FarmingtonMN.gov Farmington City Council Passes Resolution for Businesses Farmington, Minn., May 20,2020—The Farmington City Council adopted a resolution on Monday, May 18 allowing the creation of temporary outdoor customer service areas. Any business in Farmington,that is able to operate under current state executive orders,can establish on its property, parking lots,or green area: 1. Drive-up or drive-thru area 2. Customer ordering,waiting,or pickup area 3. Customer seating or customer service areas 4. Must comply with social distancing practices If you are a restaurant,please review the most current state executive orders. For liquor dispensed or consumed in new temporary customer service areas,the licensee must obtain a liquor license modification.The area must be fenced or roped off to contain alcohol consumption within that area. Listed below are the resolution conditions for businesses: • Limited on-site signage(and storage)and "limited"on site directional signs allowed (private property only). • Temporary tables,tents and sun shelters may be erected. • No need for a city variance nor city permits. • If leasing, must have property owner permission. • Must prepare traffic management plan (may be asked for it if complaints or problems). • Must not impede sidewalk usage. • Must not impede any disabled parking spaces or ramps. • No activity shall be a nuisance for any neighboring business. • The city may ask you to remove anything unreasonable,unprofessional or a nuisance. • Safety is the top concern. If not safe,the city will ask you to remove it. All allowed until repealed by city council or termination of the local peacetime emergency. For more information, view the official resolution at FarmingtonMN.gov/Resolution. -30- 430 Third 5t, I Farmington, Minnesota 1651-28o-6800 I Farmington MN.gov