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09-24-20
CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA September 24, 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. CONSENTAGENDA (a) Approve Meeting Minutes (August 13, 2020, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) 2019-2021 Strategic Plan for Economic Development Update (b) Business Development Update (c) City Council Update 9. DIRECTOR'S REPORT (a) September Director's Report 10. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Meeting Minutes (August 13, 2020, Regular Meeting) DATE: September 24, 2020 INTRODUCTION DISCUSSION Please find attached the draft meeting minutes from the August 13, 2020, EDA meeting. ACTION REQUESTED Approve the August 13, 2020, EDA minutes. ATTACHMENTS: Type Description D Exhibit Meeting Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting August 13, 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; Kalley Swift, Community Development Specialist 2. PLEDGE 0FALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bernhjelm, second by Cordes to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTSIPRESENTA TIONS 6. CONSENT AGENDA MOTION by Bernhjelm, second by Craig to approve the Consent Agenda as follows: a) Approved Meeting Minutes (June 25, 2020, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Commercial Rehabilitation Grant Program Application—306-312 Oak Street A Community Development Block Grant(CDBG) application has been received from Mr. Paul Otten for his building at 306-312 Oak Street. Staff and the Community Development Agency (CDA) are recommending approval of the $27,141 grant due to the detriment of public health and safety. The grant requires a 1:1 match, competitive bidding and compliance with the Davis-Bacon Wage Act. This amount depletes the remaining balance in the commercial rehabilitation program. It will be used to replace the roof to prevent further water intrusion. Mr. Paul Otten thanked the EDA for approving the grant. The roof leaks,there is mold inside and the mechanical units need to be replaced. He will be putting in more funds than the 1:1 match. There are three units in the building and one of them is rented. He is working on finding renters for the other two units. EDA Minutes(Regular) August 13,2020 Page 2 Member Wilson asked once the repairs are completed,what is the life span for the building? Mr. Otten explained stopping the water intrusion is key. There is a lot of nice space inside. The back storage area has been neglected and that is where the water damage is. He will be putting in the funds necessary to fix it up. He acquired the property the end of June. Other buildings he owns are 100% occupied and leases have been renewed. The roof work will start in September. MOTION by Bernhjelm, second by Wilson to recommend approval of the CDBG grant in the amount of$27,141. APIF, MOTION CARRIED. This item will be on the September 8, 2020, City Council meeting. b) Public Space Improvement Program The EDA requested a$20,000 - $30,000 sign project be brought forward for wayfinding signs downtown and a kiosk. MnDOT has assessed the TH3 and County Road 50 intersection for sign placement. They don't want a sign placed next to a turning lane. The EDA and staff reviewed signs from Northfield and Hastings at the last meeting to be placed on light poles. A downtown sidewalk replacement project including light poles, furnishings, etc. will take place in 2021. There are 17 light poles that would have wayfinding signs and they are all included in the sidewalk project. Blackfire Creative can produce the signs. There is also a Spruce Street sidewalk project leading to Vermillion River Crossings scheduled for 2022. Staff proposed moving the wayfinding sign project to coincide with the downtown sidewalk project in 2021. Chair Simmons asked regarding the intersection at TH 3 and CR50 if we could put a simple wayfinding sign on the stop light pole. Staff will reach out to MnDOT for any restrictions. Chair Simmons also suggested a sign at TH3 and Ash Street. Member Craig suggested a simple sign to identify Farmington. Member Bernhjelm agreed with moving the project to 2021. The kiosk was proposed to be located in the Depot Way Art Park, but that park is underutilized. Member Wilson was okay with delaying this project to 2021, but we should not derail the work too long. Chair Simmons suggested not starting with the kiosk in the Art Park. She asked if it meets the EDA's objectives. Staff suggested putting the kiosk on the sidewalk near City Hall or the Library. Member Hudlemeyer suggested having business locations and parks locations on the kiosk map. Members liked this idea. Member Bernhjelm was concerned that parks may not have the budget to partner on this project. She would rather invest in more professional signs than a kiosk. Staff asked if there were any provisions to consider for timing of installation now versus in the spring. Public Works Director Gehler stated the wayfinding signs can be put up any time of year. Digging into the ground is limited to May— October. If the sidewalk project is not done in 2021,you could move forward with the wayfinding signs. Chair Simmons asked if members wanted to continue EDA Minutes(Regular) August 13,2020 Page 3 with simple wayfinding signs or hold off until next year? The consensus was to hold off until 2021, but continue to firm up what we want so we are ready to go. Members agreed the work that has been done is great and we just need to wait for the right time. Member Wilson was concerned that having six or seven sign blades on one post is too much information. We could accomplish more with less. Member Hudlemeyer noted Northfield has three sign blades per pole. Member Craig suggested moving the wayfinding sign closer to the actual location. Member Bernhjelm stated we are totally on track with the look, feel and locations. She agreed with starting with less. Staff summarized to hold off on the wayfinding signs until 2021. Give a quantity and location update and surface ground mounted map with parks and business locations at the next meeting. C) CARES Act and Local Grant Program Update The city has the opportunity to provide local businesses affected by COVID-19 with grants. We can distribute $500,000 to local businesses. There are several guidelines that must be followed and applications are due August 14, 2020. The county has a pool of$10 million. The County Board meets August 26 to select businesses to receive the grant. An update with the list of Farmington businesses will be provided at the next meeting. Any money not allocated by Farmington will come back to Farmington for other uses. Businesses are selected by the county from state information. The Utility Fee Program has been underutilized with only six grants amounting to $2,450, leaving $7,549 in the fund. As far as businesses in multi-tenant buildings, their utilities are included in their rent, so they do not receive a utility bill. Member Butterfield suggested re-allocating the dollars to a similar program. Member Bernhjelm would like to see the dollars go to local businesses or hold the money through the rest of the year. Member Wilson noted some property owners have little contact with Farmington. He asked if we can reach out to the property owner. Staff noted if we re-tool the program or branch into something different, the criteria would be applied equally so we remain accountable. We are funding this with our dollars so we are not under a time crunch. We can leave it open to get additional applications or pause it or re-do it. Chair Simmons suggested re- tooling to offer rent relief. Staff stated that is an option. We would have to work with our City Attorney on that. Staff will bring ideas to the next meeting. d) City Council Update Member Bernhjelm stated the City Council is in the budget process for 2021 and it is difficult. The additional EDA money will not be in the budget. There will be more revisions before the September preliminary levy. Member Craig stated part of the issue is not knowing how things will affect taxes and revenues. We are keeping the necessary things in place. We have put off some pavement and sealcoat projects. EDA Minutes(Regular) August 13,2020 Page 4 Member Bernhjelm stated the $400,000 arena project has been cut down to $200,000 and will start this fall. The rest of the money will be re-allocated back to the budget. e) 2019-2021 Strategic Plan for Economic Development Update Chair Simmons noted we have a motivated group. Our pace is motivated by a number of factors. She asked what members want to see done for the rest of the year and how we can be more efficient with meetings. Member Wilson suggested putting this on the September agenda as a separate meeting and look ahead to 2021 —2023. Member Bernhjelm agreed we have an enthusiastic group. We started with three projects and then COVID hit. She would like to revitalize the BR&E program in 2021 and check in with businesses that are re-opening. Chair Simmons agreed with this program starting up. Member Craig also agreed and noted we will know who has received the CARES funds by then. Member Butterfield asked if there was anything we can do to partner with the City Council and the county to spur investment. Member Cordes agreed we started strong, but even with COVID we made progress on wayfinding signs. Member Butterfield asked if anyone was dropping off the EDA next year. Member Cordes stated he has four months left. Chair Simmons noted we will have changes with the Mayor and City Council. Member Bernhjelm noted we do board and commission appointments in January, so the composition could change. Staff stated the resident seats are for six years,plus we have two City Council seats and one school board seat. Member Craig is also running for City Council. Member Bernhjelm is running for Mayor, but her City Council seat is safe. Member Wilson is also running for City Council and Chair Simmons is running for school board. Member Cordes asked if Chair Simmons can retain her seat as a resident? Chair Simmons is two years into her appointment. Staff will look into this after a couple months. Chair Simmons would like to talk more about the strategic plan in September. She would like members to think about how to keep a sustained momentum. Staff noted there are no required action items for September, so we can allocate the entire meeting to the strategic plan. Chair Simmons would like to get the BR&E group together during the next six weeks. The BR&E should work with staff during the next six weeks to get some momentum and not spend the last four months of 2020 to plan and the first four months of 2021 to roll out. Over the next few days, staff will look at resources to EDA Minutes(Regular) August 13,2020 Page 5 bring to the BR&E Committee. Member Butterfield suggested the BR&E should bring a plan to focus on three to four-month actions. 9. DIRECTOR'S REPORT a) August Director's Report There has been a strong push by cities for businesses to apply for a Small Business Relief Grant. This was rolled out since the last EDA meeting. Stay Safe MN program has been forwarded to businesses regarding the Governor's executive orders. County CDA Foreclosure Report—Some deadlines have been extended and we may see a waive of these once the executive order ends. This could play into the September meeting. The next meeting will be September 24, 2020, at 6 p.m. Members felt an in- person meeting would be more efficient. Staff will email members a week or two before the meeting. Member Wilson asked if there is an update on Hy-Vee. Staff stated they still own the property and will keep the City Council and EDA updated. They have been granted all approvals and it is up to them as to when to build. Member Bernhjelm stated Bourbon Butcher has a new concept in their restaurant. Member Butterfield asked staff to give notable things concerning businesses in the director's report. 10. ADJOURN MOTION by Butterfield, second by Cordes, to adjourn at 8:00 p.m. APIF,MOTION CARRIED. Respectfully submitted, C&wtKo MLcUer Cynthia Muller Administrative Assistant CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 �■I��® O Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: September 24, 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-September D Exhibit EDA-Actual Vs Budgeted Rev and Exp-September 2020 Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2020 2020 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 227,411.02 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 2,943.39 -2,700.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -26,666.64 -40,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB -78,958.66 -162,911.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 82,059.00 122,761.00 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 5,950.94 9,392.00 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 6,154.37 9,208.00' 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 13,565.01 21,550.00' 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 121.44' 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS 85.00 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS-DBB 480.30 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 495.00 12,000.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES-DBB 12.98 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 0.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 5,844.64 8,767.00' 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 341.35 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 163.64 300.00' 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 80.79 130.00 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 1,636.57 4,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 135.00 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 21.28 800.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 230.53 2000-HRA/ECONOMIC DEVELOPME 6550 DEVELOPER PAYMENTS 10,000.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 10,058.55 7,733.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 -3,970.00 0.00 -3,970.00 0.00' -3,970.00 9/18/2020 10:48:13 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 588 496 478 413 351 318 300 0 0 0 0 0 2,943 2,700 243 Misc Revenue 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Revenues 588 496 478 413 351 318 300 0 0 0 0 0 2,943 2,700 243 Personnel Services 0 0 34,761 12,191 18,835 12,353 11,179 13,001 5,530 0 0 0 107,851 162,911 (55,060) Supplies 0 0 0 0 85 0 0 0 0 0 0 0 85 0 85 6401 -PROFESSIONAL SERVICE 0 0 0 0 0 0 495 0 0 0 0 0 495 12,000 (11,505) 6403-LEGAL 0 0 0 0 0 0 0 0 0 0 0 0 0 2,500 (2,500) 6404-IT SERVICES 731 731 731 731 731 731 731 731 0 0 0 0 5,845 8,767 (2,922) 6422-ELECTRIC 21 20 20 20 20 22 20 21 0 0 0 0 164 300 (136) 6426-INSURANCE 10 10 10 10 10 10 10 10 0 0 0 0 81 130 (49) 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) 0 200 0 (125) 10 0 0 0 1,637 4,000 (2,363) 6485-MILEAGE REIMBURSEME 21 0 0 0 0 0 0 0 0 0 0 0 21 800 (779) 6550-DEVELOPER PAYMENTS 0 0 0 0 0 10,000 0 0 0 0 0 0 10,000 10,000 6570-PROGRAMMING EXPENS 555 5,538 555 0 709 1,405 1,297 0 0 0 0 0 10,059 7,733 2,326 Services and Charges 3,298 6,660 1,521 580 1,469 12,368 2,553 637 10 0 0 0 29,095 38,730 (9,635) Total Exp 3,298 6,660 36,281 12,771 20,390 24,721 13,732 13,638 5,540 0 0 0 137,031 201,641 (64,610) Transfers In 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 0 0 0 0 26,667 40,000 (13,333) 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 3,333 3,333 3,333 3,333 0 0 0 0 26,667 40,000 (13,333) Net Change in Fund Balance 624 (2,831) (32,470) (9,025) (16,705) (21,070) (10,099) (10,305) (5,540) 0 0 0 (107,421) (158,941) 51,520 Page 1 of 1 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: 2019-2021 Strategic Plan for Economic Development Update DATE: September 24, 2020 INTRODUCTION/DISCUSSION With COVI D-19 impacting the work and priorities of the EDA, it was suggested we revisit the 2019-2021 Strategic Plan along with the current action plan. The EDA adopted a new three-year [2019-2021] Strategic Plan for Economic Development at our meeting on January 24, 2019. An essential factor shaping the Strategic Plan is the EDA's fit within the overall structure of the city. The EDA is one of five advisory boards and commissions established by the city council.The EDA is different from any other board in that it has the power and resources to undertake projects in a relatively autonomous manner. State law designates EDAs as political subdivisions. The EDA is governed by a 7-member board of commissioners appointed by the city council. Members of the EDA board consist of two city council members, one I ndependent School District 192 school board member, and four residents. Economic development staff is part of the city's Community Development Department.The Community Development Director serves as the Executive Director of the EDA. This structure combines the dedicated focus on economic development and statutory powers of the EDA with a day-to-day foundation in the core structure of the city. At its core the Strategic Plan reflects a number of influencing documents including the 2040 Comprehensive Plan, City Council priorities, and past studies.The outcomes noted in the approved Strategic Plan are summarized as follows: • Expand and Diversify the Tax Base • Encourage development that brings additional goods and services to Farmington • Promote the economic and physical health of older sections of Farmington • Effectively communicate information about the EDA within city government,to the community and to people and businesses outside of Farmington • Conduct the business of the EDA to maximize its effectiveness ACTION REQUESTED Review the 2019-2021 Strategic Plan for Economic Development along with the attached action plan, and provide guidance on how to best refocus the efforts of the EDA for the remainder of 2020 and into 2021. ATTACHMENTS: Type Description D Exhibit 2019-2021 Strategic Plan for Economic Development D Exhibit Strategic Plan Summary and Status Report Strate is Plan 2019 - 2021 g Farmington Economic Development Authority _ <cF ,act:,•. - '�/cs ,: r t January / • NORTHLAND EDA Strategic Plan 2019-2021 CONTENTS Contents................................................................................................................................................1 Introduction.........................................................................................................................................2 Context.................................................................................................................................................3 EDAPowers...........................................................................................................................................................3 ComprehensivePlan..........................................................................................................................................3 CityGovernment.................................................................................................................................................4 EDAResources.....................................................................................................................................................5 StrategicPlan......................................................................................................................................6 Objective: Expand and Diversify the Tax Base.........................................................................................6 Objective: Encourage development that brings additional goods and services to Farmington 11 Objective: Promote the economic and physical health of older sections of Farmington....12 Objective: Effectively communicate information about the EDA within City government,to the community and to people and businesses outside of Farmington..............................................13 Objective: Conduct the business of the EDA to maximize its effectiveness..............................14 January 2019 �- EDA Strategic Plan 2019-2021 INTRODUCTION This document presents the Strategic Plan for the Economic Development Authority(EDA) of the City of Farmington.The EDA Strategic Plan serves several purposes: • The plan articulates the vision,mission and fundamental principles that guide decision making and actions for the EDA. • The plan provides a framework for identifying potential roles for the EDA,prioritizing use of resources and periodically reviewing actions taken by the EDA. • The plan serves as a tool for communicating information about the EDA to the city council,city departments and advisory boards,partner organizations in the economic development community and Farmington residents and businesses. The Strategic Plan focuses on the years 2019 through 2021. Vision Statement The Economic Development Authority's vision is to improve the economic vitality of the City of Farmington and to enhance the overall quality of life by attracting and retaining businesses, creating partnerships,fostering employment opportunities, promoting workforce housing, business growth, and expanding the tax base through development and redevelopment. Mission Statement Farmington is commerce friendly, responsive, and innovative in the realm of economic development. The Economic Development Authority's mission is to position Farmington as one of Minnesota's most desirable cities to open,grow, and maintain a business. January 2019 EDA Strategic Plan 2019-2021 CONTEXT The actions of the EDA do not occur in a vacuum,but within the context of city government and development forces that affect Farmington and the region. Understanding this context is an important element of creating and implementing the strategic plan. EDA Powers The powers of the EDA come from both State Law and city enabling resolution. The EDA can exercise the powers set forth in Minnesota Statutes,Section 469.090 through 469.108 unless otherwise limited by the city council.The Farmington EDA was established by Resolution R104- 05 (the "Enabling Resolution"). The Enabling Resolution empowers the EDA to use all statutory authority with the following exceptions: • The sale of all bonds or other obligations issued by the EDA shall first be approved by the city council. • The EDA shall follow the budget process for city departments as may be provided by the city and as implemented by the city council and Administrator. • All official actions of the EDA shall be consistent with the city comprehensive plan and official controls implementing the comprehensive plan. The Enabling Resolution also transferred all activities,programs,operations and authority relating to economic development from the Farmington Housing and Redevelopment Authority (HRA).The EDA is authorized to exercise all of the powers granted to the HRA pursuant to Minnesota Statutes,Sections 469.001 through 469.047. No actions contemplated by the Strategic Plan are impaired by the limitations of State Law or the Enabling Resolution. Comprehensive Plan The Economic Development chapter of the 2040 Comprehensive Plan provides a framework of the activities of the EDA. "The Economic Development Plan (Chapter 9 of the Comprehensive Plan)provides a high level and long- term roadmap for the City of Farmington and its partners (public,private, and nonprofit sectors) to work together to enhance employment, investment and quality of life opportunities that benefit the entire community. The city recognizes that local government has a responsibility for creating an environment in which economic development can occur. This plan also serves to examine and strengthen the city's ability to compete effectively and prosper in both the regional and increasingly global economy." The Comprehensive Plan contains eight(8)economic development goals. As part of the process of creating this Strategic Plan,the EDA validated the importance of these goals for guiding the actions of the EDA.The following list contains the economic development goals in order of the ranking of the EDA Board: January 2019 EDA Strategic Plan 2019-2021 1. A three-year Strategic Plan for Economic Development that provides a dynamic and actionable tool for achieving the community's economic development vision. 2. Cultivation of strong relationships between existing businesses and the city to increase business retention. 3. A desirable commercial environment for residents is created through growth from existing and new businesses. 4. Healthy and diversified growth of existing and new businesses to achieve the community's 2030 and 2040 employment projections. 5. Redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas. 6. Public and private sector reinvestment in downtown to revitalize it as the community's commercial,cultural,and recreational center. 7. Diverse housing options and quality of life amenities that support the needs and preferences of the community's workforce into the future. 8. A well-trained and adaptable workforce is maintained within the community to support the projected business and job growth. These goals provide a useful tool for evaluating EDA activities.How does the activity help to achieve the goals of the Comprehensive Plan?A consistent connection between these goals and EDA activities ensures that the EDA meets its mandate of consistency with the Comprehensive Plan. City Government An essential factor shaping the Strategic Plan is the EDA's fit within the overall structure of the city. The EDA is one of five advisory boards and commissions established by the city council. The EDA is different from any other board in that it has the power and resources to undertake projects in a relatively autonomous manner.State Law designates EDAs as political subdivisions. "ResidentsBusiness FAIR 1 1 1 1 The EDA is governed by a 7-member board of commissioners appointed by the city council. Members of the EDA board consist of two city council members,one Independent School District 192 school board member,and four residents.Economic development staff is part of the January 2019 ��� EDA Strategic Plan 2019-2021 city's Community Development Department.The Community Development Director serves as the Executive Director of the EDA. This structure combines the dedicated focus on economic development and statutory powers of the EDA with a day-to-day foundation in the core structure of the city. EDA Resources Creating and implementing the Strategic Plan must be done with an eye towards the resources of the EDA.With limited resources,the effective use of resources should be a factor in evaluating current and future activities. Do the potential benefits of the action merit the allocations of EDA resources? The most important resource of the EDA is city staff.The experience and technical skills of economic and community development staff provide the capacity to successfully achieve EDA objectives.The staff resource available to the EDA is a finite commodity. It is also a commodity that serves other functions within city government. January 2019 ��� EDA Strategic Plan 2019-2021 • STRATEGIC PLAN The EDA Strategic Plan is based on the following Core Strategies: • Attract new businesses that provide jobs,needed goods and services,and tax base • Encourage the retention and expansion of existing business • Encourage revitalization and redevelopment • Manage EDA programs and projects • Be the voice of economic development in city government The Core Strategies guide EDA actions. All actions shall be consistent with one or more of the Strategies. Objective: Expand and Diversify the Tax Base Economic development is not an end itself,but rather a means to achieve certain outcomes.An important outcome in Farmington is to grow the property tax base. Preliminary tax rates for taxes payable 2019 show Farmington with the fifth highest city tax rate for Dakota County cities (over 1,000 population).When all other taxing jurisdictions are included,the total tax rate in Farmington is the highest in Dakota County. Preliminary 2019 Tax Rates 160.00 140.00 120.00 40 100.00 M 01 80.00 X 60.00 40.00 20.00 QaJ ac �`��� r�5 roc Q ;��e r�� ay �e.� o, �, �e.� ego ■City Rate ■All Others Rate Figure 1 Tax base is a key factor in a higher tax rate. A lower tax base means that the city must tax at a higher rate to generate revenue needed to operate the city.A comparison with other Dakota County cities provides some perspective on Farmington's tax base. Figure 2 shows total Pay January 2019 EDA Strategic Plan 2019-2021 2019 Taxable Market Value by property classification. Figure 3 compares the distribution of Taxable Market Value among the property classifications. Taxable Market Value Taxes Payable 2019 8,000,000,000 7,000,000,000 6,000,000,000 ■All Other 5,000,000,000 ■Agriculture 4,000,000,000 Industrial 3,000,000,000 ■Commercial 2,000,000,000 ■Apartments 1,000,000,000 ■Residential Farmington Lakeville Rosemount Hastings Apple Valley Figure 2 Taxable Market Value Taxes Payable 2019 100% � �- 90% 80% 70% ■All Other 60% ■Agriculture 50% Industrial 40% ■Commercial 30% ■Apartments 20% ■Residential 10% 0% Farmington Lakeville Rosemount Hastings Apple Valley Figure 3 January 2019 �� EDA Strategic Plan 2019-2021 �- • Hastings has less Taxable Value than Farmington($1.52 billion to$1.74 billion). However,the portion of the total tax base in commercial and industrial property is more than double in Hastings(11%)in comparison to Farmington(5%). • The commercial/industrial share of the tax base in the comparison cities ranges from 9.66% in Apple Valley to 11.24% in Rosemount. • Rosemount provides a good contrast to Farmington.The cities have similar populations (Farmington 22,421 -Rosemount 23,956),but Farmington has 29% less tax base.Total Taxable Market Value per capita in Farmington is$87,866 and$116,100 in Rosemount. Growing and diversifying the tax base has a variety of benefits.A growing tax base gives the city more flexibility in funding services and capital improvements.This flexibility would likely extend to the EDA budget.The demands for operating revenues may limit the ability to lower the tax rate,but a growing tax base lessens the need to raise rates. Growing the tax base is one of the only means available to the city to promote reductions in other parts of the total tax rate. A diversified tax base changes the impacts of economic downturns as value changes vary among property types. Commercial and industrial development make different use of city services than residential with the potential for comparably less pressure to increase services and spending. EDA efforts to grow the tax base must be done thoughtfully and strategically.The Minnesota property tax system affects the ability of the city to realize growth in the tax base from new development.40% of all new commercial-industrial value goes into the Fiscal Disparities Pool and is not available for local taxation.The use of tax increment financing(TIF) or tax abatement defers the benefits of new tax base until the financial assistance ends.Property class rates set by the Legislature convert the Assessor's Estimated Market Value to Tax Capacity (taxable)value at different rates. Figure 4 illustrates these points.This chart compares the Tax Capacity value available to the city (and other taxing jurisdictions)from alternative development of 100 acres. January 2019 �� EDA Strategic Plan 2019-2021 �- Tax Capacity From Alternative Land Uses Industrial Retail Single Townhome Acres 100 100 100 100 Lot Coverage/Density 30% 30% 3 6 Development(SF or Units) 1,306,800 1,306,800 300 600 EMV per SF or Unit 65 125 330,000 330,000 EMV 84,942,000 163,350,000 99,000,000 198,000,000 Tax Capacity 1,698,090 3,266,250 990,000 1,980,000 Fiscal Disparities 40% 40% 0% 0% Net Local Tax Capacity 1,018,854 1,959,750 990,000 1,980,000 2,500,000 - - ------- .—------- 2,000,000 — --- v 1,500,000 a✓ Z M CL U X 1,000,000 500,000 0 Industrial Retail Single Townhome Figure 4 Expansion of the tax base also comes from within.The Economic Development chapter of the Comprehensive Plan notes that"research from numerous sources shows that existing businesses create 60%-90% of all new economic growth in a community".A focus on local businesses is a more efficient means of expanding the tax base.Resources applied to business expansion are more likely to yield returns than using the same resources to compete with other cities. Resources are applied to businesses already in Farmington rather than competing with January 2019 EDA Strategic Plan 2019-2021 other cities.The use of financial incentives (if needed)is typically lower and more closely aligned with project need. Tactics 1. Create and maintain strong relationships and lines of communication with local business to identify opportunities for the EDA to enhance success and encourage expansion. 2. Be prepared to receive and effectively respond to inquiries about locating businesses in Farmington. 3. Make use of tax increment financing and tax abatement,pursuant to city policies,to achieve the objectives of the Strategic Plan. 4. Use tax increment financing and tax abatement only when the benefits received from the development outweigh the deferred tax base. 2019 Action Plan 1. Create and conduct a comprehensive business needs/assessment survey. 2. Review and update(as needed)economic development promotional materials. January 2019 �� EDA Strategic Plan 2019-2021 Objective: Encourage development that brings additional goods and services to Farmington Building and maintaining a strong core of commercial development is important to Farmington. When necessary goods and services are not available locally,residents travel to other cities to shop.These trips often result in additional shopping that could have occurred in Farmington. The EDA seeks to encourage commercial development that reduces this out-migration and complements existing businesses. The EDA has limited control over the type and pace of commercial development. Market forces tend to be the primary force in commercial growth. In that regard,commercial development and job growth are directly related. New,well-paying jobs located in Farmington may produce the demand for new housing.These new"rooftops" create the market sought by commercial development. The EDA can facilitate commercial development by providing desirable business districts. Farmington has a history of creating community plans for such business districts.Plans for Vermillion River Crossing and Downtown Farmington provide the framework for public and private investment. In 2019, the city will be completing a plan for development in the Highway 3 Corridor.The ongoing implementation of these plans is an important EDA objective. Tactics 1. Attract new businesses that produce jobs that are likely to create or retain households and expand the local market for new commercial development. 2. Prepare and implement plans that provide desirable locations for new commercial development. 2019 Action Plan 1. Continue to work with brokers and land owners to attract developments to Vermillion River Crossings area. 2. Create ongoing means of communicating actions related to the implementation of the Downtown Redevelopment Plan to the EDA. 3. Play an active role in the completion of the Highway 3 Corridor Study and seek effective implementation strategies. January 2019 EDA Strategic Plan 2019-2021 Objective: Promote the economic and physical health of older sections of Farmington. One of the Economic Development Goals of the Comprehensive Plan is"redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas'. In reality,there are two aspects to redevelopment.The most effective strategy is to promote the economic and physical health of the community to avoid the need for redevelopment.If the need for redevelopment exists,however,it is important to prevent blighting conditions to spread to other properties. The EDA has taken a proactive approach to redevelopment by creating plans for the Downtown and the Highway 3 Corridor.These plans provide a framework for public and private investment. Implementation of these plans is not the sole responsibility of the EDA. The EDA must coordinate its efforts with the city council,planning commission and other stakeholders. Tactics 1. Engage on a consistent basis with the planning commission to share goals and develop strategies. 2. Support the outcomes and implementation of the Highway 3 Corridor Plan. 3. Review and promote existing programs that target key areas. 2019 Action Plan 1. Schedule quarterly joint work sessions with the planning commission and semi-annual work sessions with the city council to align priorities. 2. Complete and identify initial implementation steps of the Highway 3 Corridor Plan. 3. Meet with Dakota County CDA staff(or invite to EDA meeting) to discuss programs. January 2019 �- EDA Strategic Plan 2019-2021 Objective: Effectively communicate information about the EDA within city government, to the community and to people and businesses outside of Farmington. Communication is an essential function of the EDA. Communication with the city council promotes collaboration on shared objectives and builds the foundation for the financial resources required by the EDA. Communication with the community explains the work of the EDA,highlights the positive impact on the community and offsets potential misinformation. Communication informs the business community,both within and outside of the community, about the opportunities to do business in Farmington and the assistance available from the EDA. The city's website is the most important communication tool for the EDA.The website is the place people look for information about the EDA. Farmington's online presence for economic development should be guided by several factors: • Information about the EDA and economic development in Farmington must be easy to find on the website. • The information on the website must be useful. • The form and content of the pages devoted to economic development should convey a positive message that creates interest in Farmington. Tactics 1. Utilize the city's website as the primary point of information about the EDA and economic development in Farmington. 2. Ensure that the website contains useful information for businesses evaluating potential development in Farmington. 3. Make use of the newsletter and other ongoing city communications to provide information about the EDA. 2019 Action Plan 1. Review other websites to identify elements that could be incorporated into Farmington's website. 2. Review and enhance the city's webpage(s) related to Economic Development. 3. Develop one or more new communications tools to relay the messages and work of the EDA. 4. Shift the monthly"Director's Report"in the EDA packet to a more public-facing newsletter. 5. Develop a social media strategy to promote the work of the EDA. January 2019 �� EDA Strategic Plan 2019-2021 �- Objective: Conduct the business of the EDA to maximize its effectiveness. While this objective seems obvious,it is important to make it a stated objective of the Strategic Plan. The EDA operates with limited resources in terms of funding,staff time and board responsibilities.All decision-making must consider the effective use of these limited resources. Tactics 1. Provide consistent information to the EDA about its financial condition and existing obligations. 2. Provide the EDA with consistent updates on the status of the action plans for the Strategic Plan and other ongoing initiatives of the EDA. 3. Annually update the action plans in the Strategic Plan. 2019 Action Plan 1. Provide annual comprehensive review of the EDA's finances in March. 2. Develop a standardized template for providing specific project updates. 3. Explore ways to enhance the effectiveness of monthly board meetings. 4. Create a process to annually review and update action plans in the Strategic Plan. January 2019 �- Farmington EDA 2019-2021 Strategic Plan Status Report Objective Tactics 2020 Action Plan Status Expand and Diversify the Tax Base Create and maintain strong relationships and lines of communication with local Create and conduct a comprehensive business BR&E Subcommittee created and business to identify opportunities for the EDA to enhance success and encourage needs/assessment survey. engaged in pilot program-COVID hold expansion. Be prepared to receive and effectively respond to inquiries about locating Review and update(as needed)economic development Ongoing businesses in Farmington. promotional materials. Make use of tax increment financing and tax abatement,pursuant to city policies,to Ongoing achieve the objectives of the Strategic Plan. Use tax increment financing and tax abatement only when the benefits received Ongoing from the development outweigh the deferred tax base. Encourage development that Attract new businesses that produce jobs that are likely to create or retain Continue to work with brokers and land owners to attract Ongoing-Staff remains in contact with brings additional goods and households and expand the local market for new commercial development. developments to Vermillion River Crossings area. landowners and brokers services to Farmington Prepare and implement plans that provide desirable locations for new commercial Create ongoing means of communicating actions related to Ongoing-Wayfinding and Public Spaces development. the implementation of the Downtown Redevelopment Plan Improvement Program to the EDA. Play an active role in the completion of the Highway 3 Working on redevelopment concepts Corridor Study and seek effective implementation strategies. within the recommendations of the plan Promote the economic and Engage on a consistent basis with the planning commission to share goals and Schedule quarterly joint work sessions with the planning To be scheduled 2020-COVID hold physical health of older sections of develop strategies. commission to align priorities. Farmington Support the outcomes and implementation of the Highway 3 Corridor Plan. Complete and identify initial implementation steps of the 2040 Comp Plan includes upcoming Highway 3 Corridor Plan. revisions from Hwy 3 plan.Zoning ordinance revisions underway. Review and promote existing programs that target key areas. Meet with Dakota County CDA staff(or invite to EDA Ongoing-new OTB advisor for future meeting)to discuss programs. meeting Effectively communicate Utilize the city's website as the primary point of information about the EDA and Review and enhance the city's webpage(s)related to Ongoing-property listings updated information about the EDA within economic development in Farmington. Economic Development. frequently city government,to the Ensure that the website contains useful information for businesses evaluating Develop one or more new communications tools to relay the Ongoing potential development in Farmington. messages and work of the EDA. Make use of the newsletter and other ongoing city communications to provide Shift the monthly"Director's Report"in the EDA packet to a Variety of updates to be included in the information about the EDA. more public-facing newsletter quarterly Farmington Currents newsletter Develop a social media strategy to promote the work of the October EDA discussion topic- EDA completed Conduct the business of the EDA Provide consistent information to the EDA about its financial condition and existing Provide annual comprehensive review of the EDA's finances Annual March EDA meeting discussion to maximize its effectiveness obligations. in March. topic Provide the EDA with consistent updates on the status of the action plans for the Develop a standardized template for providing specific See above Strategic Plan and other ongoing initiatives of the EDA. project updates. Annually update the action plans in the Strategic Plan. Explore ways to enhance the effectiveness of monthly board Ongoing meetings. Create a process to annually review and update action plans To be completed with department's in the Strategic Plan. annual report Update as of_,2019 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 /1111111111 O FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Business Development Update DATE: September 24, 2020 INTRODUCTION/DISCUSSION Chair Simmons requested the EDA receive an update on specific development projects within the city, and member Butterfield requested the EDA consider the following discussion: • Update on inquiries for large business expansion or development in Farmington. Discussion on how the EDA can help to recruit top workplaces to Farmington. Staff will provide the requested updates and facilitate a discussion on Farmington business development. ACTION REQUESTED Receive a business development update and discuss business expansion inquiries. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON O 651-280-6800 Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: City Council Update DATE: September 24, 2020 INTRODUCTION/DISCUSSION This is a standing agenda item to allow City Council members the opportunity to provide the EDA with any updates they feel are pertinent to the work plan of the EDA. ACTION REQUESTED Receive an update on recent City Council actions or discussions. CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ®� O Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: September Director's Report DATE: September 24, 2020 INTRODUCTION/DISCUSSION Small Business Relief Grants Dakota County CDA along with their grant administrator are working with applicants to finalize the documentation needed for grant payments. As of this memo, more than 80 Farmington businesses are in the final stages of processing. Between the city's$500,000 allocation of CARES Act funding, and Dakota County's countywide contribution, it is anticipated that all eligible businesses will be funded through this program. Open to Business Our new Open to Business advisor Natalie Mouilso is excited to engage with the Farmington business community. If possible, she would like to attend the EDA's meeting in October to provide a direct update and introduce herself to the group. Business Retention and Expansion Program v2.0 The BR&E subcommittee met on September 18 to discuss and finalize a supplemental business retention and expansion program. Staff is finalizing details based on the direction of the group, and will be rolling out a modified survey focused on the impact of COVI D-19. Stay Safe M N The state of Minnesota launched an updated portal combining all of the guidance for individuals and families along with businesses and organizations. We continue to participate in weekly business calls with the state and provide this information to the public: https:Hstaysafe.mn.gov/. Dakota County CDA Foreclosure Report Please find attached the latest foreclosure data as provided by the Dakota County CDA. DEED Employment Update Please find attached the latest employment update from the Minnesota Department of Employment and Economic Development. NEXT MEETING Our next regular meeting is scheduled for October 22 at 6:00 p.m. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Backup Material DEED Employment Report-July D Backup Material DEED Employment Report-August D Backup Material Dakota County August Foreclosure Report D Backup Material Dakota County Foreclosure Report- NOP D Backup Material Dakota County Foreclosure Report-Sheriff Sales Adam Kienberger From: DEED Media <MNDEED@public.govdelivery.com> Sent: Thursday,August 20, 2020 10:06 AM To: Adam Kienberger Subject: Minnesota's Unemployment Rate Falls to 7.7% in July EMPLOYMENT ECONOMIC . SE For Immediate Release Rita Beatty August 20,2020 651-259-7534 Media Resources rita.beatty@state.mn.us Previous Announcements Oriane Casale 651-259-7383 Oriane.Casale@state.mn.us Minnesota's Unemployment Rate Falls to 7.7% in July 32,500 payroll jobs added, led by leisure and hospitality gains St. Paul—Minnesota's seasonally adjusted unemployment rate fell to 7.7% in July down from 8.6%in June, according to numbers released today by the Minnesota Department of Employment and Economic Development (DEED). Minnesota added 32,500 payroll jobs in July on a seasonally adjusted basis, up 1.2%over the month. The U.S. added 1.8 million jobs in July, up 1.3%.The U.S. unemployment rate is at 10.2%for July, down from 11.1%in June. i "We're moving in the right direction, but job growth is slowing, a sign that this recovery will likely take some time," said DEED Commissioner Steve Grove. "It's important for Minnesotans to know that many employers are hiring now, and that resources are available to help people prepare for in-demand jobs through CareerForce." Some groups of Minnesotans have been more affected by unemployment than others during the pandemic. Based on six month moving averages (February to July 2020 data),the unemployment rate for Black Minnesotans is 15.3% in July, up 9 percentage points from 6.3%one year ago, in July 2019. For Hispanic Minnesotans, unemployment was 8.6%in July, up from 4.3% in July 2019. White Minnesotans have an unemployment rate of 6.3% in July, up from 3.1%one year ago. Seasonally adjusted job gains in July were led by Leisure and Hospitality, up 17,200 (9.8%), with Accommodation and Food Service gaining 12,300 of the jobs (up 8.1%) and Arts, Entertainment, and Recreation gaining 4,900 jobs (up 20.4%), followed by Government with a gain of 6,200(up 1.6%) mostly in Local Government and Education and Health Service, with a gain of 4,400 (up 0.9%), with Health Care and Social Assistance gaining 3,700 of those jobs(up 0.8%). Four supersectors lost jobs in July: Professional and Business Services lost 900 jobs, down 0.2%, Information also lost 900 jobs, down 2.2%, Construction lost 400 jobs, down 0.3%and Mining and Logging lost 100 jobs, down 1.9%. Over the year in July, Minnesota shed 256,062 payroll jobs, down 8.5%.The private sector shed 220,409 of those jobs, also down 8.5%. All sectors continued to show over-the-year job losses. Two supersectors showed strength in Minnesota compared to the nation in July.Trade,Transportation and Utilities was down 3%in Minnesota compared to 5.7% nationwide over the year. Once again, strength in this supersector was in retail trade with Minnesota down 0.6%compared to 5.5% nationwide, over the year. Professional and Business Services was down 4.7%in Minnesota compared to 6.7% nationwide, over the year. Minnesota's strength in this supersector was in Administrative and Support and Waste Services, down 3.1% in Minnesota compared to 11.2% 2 nationwide. Of special note is employment services (temp help), which was down 10% in Minnesota compared to 17.2% nationwide, over the year. In Minnesota,the number of people unemployed dropped by 31,146 to 236,832 in July, while the number employed rose 9,579 to 2,855,710.The employment to population ration increased slightly over the month to 64%in July, compared to 55.1% nationally. Employment fell in July over the year in all Minnesota Metropolitan Statistical Areas. Minnesota and U.S. Employment and Unemployment—July 2020 Seasonally Not Seasonally Adjusted Adjusted Unemployment June July 2020 July 2020 July 2019 Rate 2020 Minnesota 7.7% 8.6% 7.4% 3.2% U.S. 10.2% 11.1% 10.5% 4.0% June uly'19-July '20 Level uly '19-July'20% Employment July 2020 2020 Change Change Minnesota 32,500 74,700 256,062 -8.5% U.S. 1,763,00 t,817,000 11,599,000 -7.7% Minnesota and U.S. Over the Year (OTY) Employment Change, Not Seasonally Adjusted: July 2019 -July 2020 CITY CITY Supersector US OTY Growth Rate Job ChangeGrowth Rate (%) Total -256,062 8.5 -7.7 Private -220,409 8.5 8.2 3 Logging & Mining -1,429 -20.6 -15.3 Construction -8,336 -5.9 -4.3 Manufacturing -20,070 -6.1 -5.7 Trade,Transport. & Utilities-15,709 -3.0 -5.7 Information -7,398 15.6 -10.6 Financial Activities -7,616 3.9 -1.6 Prof. & Business Services -18,426 -4.7 -6.7 Ed. & Health Services 39,766 7.3 -5.1 Leisure & Hospitality -86,132 29.2 -24.2 Other Services -15,527 13.3 -10.0 Government 35,653 8.8 -4.5 Metropolitan Statistical Area (MSA) Over the Year (OTY) Employment Change, Not Seasonally Adjusted: July 2019—July 2020 Metropolitan Statistical Area OTY Employment ChangeOTY Growth Rate (%) Minneapolis-St. Paul MN-WI MSA 178,932 -8.7 Duluth-Superior MN-WI MSA 12,642 -9.3 Rochester MSA 10,046 -8.0 St. Cloud MSA 3,433 -3.1 Mankato MSA -781 -1.4 Visit the DEED website to see DEED's alternative measures of unemployment. You can also find the monthly iobs numbers and unemployment data on DEED's website.You can see a list of the top 30 (obs in demand now in Minnesota on CareerForceMN.com. 4 DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more information about the agency and its services visit the DEED website or follow DEED on Twitter. Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. EMPLOYMENT ECONOMIC DEVELOPMENT mn.gov/deed Questions?Contact Us '© SHRRE SUBSCRIBER SERVICES: Manage Preferences I Help DEED is an equal opportunity employer and program provider. This email was sent to akienberger@ci.farmington.mn.us using GovDelivery Communications Cloud on behalf of:Minnesota Department pV� of Employment and Economic Development 332 Minnesota Street Suite E-200-Saint Paul,MN 55101 -(800)657-3858 � IfM 5 Adam Kienberger From: DEED Media <MNDEED@public.govdelivery.com> Sent: Thursday, September 17, 2020 10:15 AM To: Adam Kienberger Subject: [SPAM] Minnesota's Unemployment Rate Falls to 7.4% in August EMPLOYMENTPRESS . RELEASE ECONOMIC DEVELOPMENT For Immediate Release Contact: Rita Beatty September 17,2020 651-259-7534 Media Resources rita.beatty@state.mn.us Previous Announcements Oriane Casale 651-259-7383 Oriane.Casale@state.mn.us Minnesota's Unemployment Rate Falls to 7.4% in August Job growth continues with 40,500 payroll jobs added St. Paul— Minnesota's seasonally adjusted unemployment rate continues to move lower,falling to 7.4%in August, according to numbers released today by the Minnesota Department of Employment and Economic Development (DEED). Minnesota added a seasonally adjusted 40,500 payroll jobs in August, up 1.5%from July.The U.S. gained 1.371 million payroll jobs in August, up 1.0%from July.The national unemployment rate is at 8.4%for August. i "We are continuing to see steady job growth and a decline in unemployment in Minnesota, but it will take some time to replace jobs lost during the pandemic," said DEED Commissioner Steve Grove. "While job growth in Minnesota was stronger in August than in July, growth continues to be uneven across industries and occupations. People in lower income occupations continue to be most impacted by job loss." Minnesota unemployment has dropped steadily since reaching a high of 9.9% in May, which was the month with the highest pandemic-related unemployment. In June, Minnesota's unemployment rate was 8.6%and in July it was 7.6%. Some groups of Minnesotans have been more affected by unemployment than others during the pandemic. Based on six month moving averages (March to August 2020 data),the unemployment rate for Black Minnesotans is 16.3% in August, up nearly 11 percentage points from 5.4%one year ago, in August 2019. For Hispanic Minnesotans, unemployment was 9.7%in August, up from 3.9% in August 2019. White Minnesotans have an unemployment rate of 6.7% in August, up from 3%one year ago. Over the month, seasonally adjusted gains in Minnesota were led by Government, up 11,000 jobs due to federal Census hiring and Local Government,followed by Leisure & Hospitality, up 7,800 jobs or 4.0%entirely in Accommodations & Food Services, Education & Health Services, up 7,100 jobs or 1.4%with gains in both component sectors, and Manufacturing, up 5,200 jobs or 1.7%with gains in both durable and nondurable goods. One supersector, Financial Activities, lost jobs on a seasonally adjusted basis in August from July, down 100 jobs or-0.1%. Over the year in August, Minnesota shed 219,268 payroll jobs, down 7.3%, while the private sector shed 196,363 jobs, down 7.5%. U.S. over the year job loss stood at 7.0%with the private sector down 7.5% in August. Three supersectors in Minnesota showed strength compared to the nation:Trade, Transportation & Utilities (Retail Trade), Professional & Business Services (temp help) and Manufacturing (Food Manufacturing). Retail trade has made a full rebound in 2 jobs to pre-pandemic levels, up 0.5%over the year. Food manufacturing jobs are also up 2.3%over the year. The number of unemployed workers in Minnesota stood at 231,599 in August, down 4,948 from July and down 71,367 since May, when the number peaked at 302,966. The number of employed people rose 24,766 in August and 114,545 since its trough in May. Minnesota's labor force participation rate increased to 69.8%in August from 69.2%in July, closing in on 70.2%where it stood in February.The national labor force participation rate is 61.7%in August. Employment fell in August over the year in all Minnesota Metropolitan Statistical Areas. Minnesota and U.S. Employment and Unemployment—August 2020 Seasonally Adjusted Not Seasonally Adjusted Unemployment August July 2020 August 2020 August 2019 Rate 2020 Minnesota 7.4% 7.6% 7.1% 3.0% U.S. 8.4% 10.2% 8.5% 3.8% August '19- August August '19-August Employment my 2020 August '20% 2020 '20 Level Change Change Minnesota 2,765,800 2,725,300 219,268 -7.3 U.S. 140,914,000139,543,000-10,543,000 7.0 Minnesota and U.S. Over the Year(OTY) Employment Change, Not Seasonally Adjusted:August 2019-August 2020 OTY Job CITY Growth Rate US CITY Growth Rate Industry Supersector Change N (%) 3 otal -219,268 -7.3 7.0 Private 196,363 7.5 -7.5 Logging & Mining 1,198 -17.2 -16.0 Construction 8,504 -5.9 3.9 Manufacturing 15,406 -4.7 5.6 Trade,Transport. & 13,028 -2.5 4.5 Utilities Information 7,472 -15.7 10.1 Financial Activities 7,688 3.9 1.4 Prof. & Business Services 15,135 3.9 6.0 Ed. & Health Services 34,359 6.3 4.9 Leisure & Hospitality 79,118 26.6 23.2 Other Services 14,455 -12.4 8.5 Government 22,905 5.7 3.6 Metropolitan Statistical Area (MSA) Over the Year(OTY) Employment Change, Not Seasonally Adjusted:August 2019—August 2020 OTY Employment OTY Employment Change Metropolitan Statistical Area Change N Minneapolis-St. Paul MN-WI -152,256 -7.4 MSA Duluth-Superior MN-WI MSA -11,112 -8.2 Rochester MSA -8,272 6.6 St. Cloud MSA 3,443 3.1 4 Mankato MSA 2,063 -3.6 Visit the DEED website to see DEED's alternative measures of unemployment. You can also find the monthly lobs numbers and unemployment data on DEED's website.You can see a list of the top 30 *obs in demand now in Minnesota on CareerForceMN.com. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more information about the agency and its services visit the DEED website or follow DEED on Twitter. Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. EMPLOYMENT ECONOMIC DEVELOPMENT .--. Questions?Contact Us mpg i0 SHARE SUBSCRIBER SERVICES: Manage Preferences I Help DEED is an equal opportunity employer and program provider. This email was sent to akienberger@ci.farmington.mn.us using GovDelivery Communications Cloud on behalf of:Minnesota Department � � of Employment and Economic Development 332 Minnesota Street Suite E-200 Saint Paul,MN 55101 (800)657-3858 QDVDB VW 5 Dakota County Community Development Agency CDA To: Dakota County Cities From: Maggie Dykes Date: September 18, 2020 Re: Foreclosure Update Dakota County Stats —August 2020 • # of Sheriff Sales in August—4 (compared to 4 in July 2020) (Moratorium due to COVID-19 in place through October 11, 2020 unless extended by Governor Walz under emergency orders. Moratorium does not apply to Foreclosure by HOA. # of Notices of Pendency Filed in August—20 A Notice of Pendency is filed by a mortgage company's attorney as official notification that the foreclosure process has begun. Not all of these result in Sheriff Sales. Mapping Using Dakota County GIS http://ais.co.dakota.mn.us/DCGIS/ The Dakota County Office of GIS is updating the Foreclosures and Notice of Pendency layers on a monthly basis. If you need assistance using this Web page, please call Randy Knippel or Mary Hagerman with the Office of GIS at (952) 891-7081. If you have any concerns, please call me at (651) 675-4464 or send me an email at mdvkes(&-dakotacda.state.mn.us. Ei\ Dak M Community Development Agenota Countycy CDA Notice of Pendency Filings City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2020 2019 Apple Valley 12 7 5 0 2 3 1 1 31 95 Burnsville 6 8 2 4 2 2 5 1 30 95 Eagan 5 3 8 1 2 1 1 1 22 101 Farmington 11 5 3 1 2 1 2 11 36 64 Hastings 2 1 8 0 0 0 0 1 12 34 Inver Grove Heights 4 6 2 0 2 2 3 2 21 47 Lakeville 3 6 3 2 1 1 1 0 17 77 Mendota Heights 1 1 0 1 0 0 0 0 3 9 Rosemount 4 2 9 0 1 0 0 1 17 42 South St.Paul 4 4 4 1 1 2 0 1 17 63 West St.Paul 7 7 2 1 1 0 0 1 19 38 Small Cities 1 1 0 0 0 1 0 0 3 11 TOTAL 60 51 46 11 14 13 13 20 0 0 0 0 228 676 NOTE:Notices of Pendency are filed by a mortgage company's attorney as official notification that the foreclosure process has begun.Not all of these result in sheriff sales.Numbers are based on Notice of Pendency filings with Dakota County Property Records.City numbers are based on municipality address. For more information about the CDA's homeowner or homebuyer services, visit www.dakotacda.org or call(651)675-4473. Dakota County Community Development Agency CDA Foreclosure Summary for Dakota County Sheriff Sales City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2020 2019 2018 2017 Apple Valley 4 3 1 0 2 0 1 1 12 30 24 34 Burnsville 3 1 2 0 1 1 1 0 9 31 31 44 Eagan 3 2 1 0 0 0 0 1 7 20 27 42 Farmington 2 1 2 1 0 1 0 0 7 9 21 17 Hastings 0 0 0 0 0 0 0 0 0 11 14 17 Inver Grove Heights 1 0 1 0 0 0 0 0 2 14 14 19 Lakeville 3 0 1 0 0 0 0 0 4 16 16 41 Mendota Heights 0 0 0 0 0 0 0 0 0 4 3 2 Rosemount 0 1 1 1 0 0 1 0 4 12 15 11 South St.Paul 1 1 1 0 0 1 0 1 S 13 27 22 West St.Paul 2 0 1 0 0 1 1 1 6 6 14 15 Small Cities 0 0 0 0 0 0 0 0 0 2 7 9 TOTAL2020 19 9 11 2 3 4 4 4 0 01 0 0 56 168 213 273 TOTAL 2019 34 29 15 13 18 24 24 29 17 21 17 25 168 TOTAL 2018 12 15 24 22 21 15 13 23 24 16 13 15 213 TOTAL 2017 31 15 27 20 25 26 13 26 27 22 19 22 273 SOURCE:Dakota County Sheriff Sales.City numbers are based on municipality address. For more information about the CDA's homeowner or homebuyer services, visit www.dakotacda.org or call(651)675-4473.