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12-17-20
CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street 01 Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA December 17, 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 5. CITIZENS COMMENTS 6. CONSENTAGENDA (a) Approve Meeting Minutes (November 19, 2020, Regular Meeting) (b) Monthly Financial Statements (c) Certificate of Completion-Thelen TI F Request 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) BR&E Survey Results- Continued (b) Financial Policy Discussion (c) 2021 CDBG Allocation Recommendation (d) Year in Review (e) City Council Update/Member Roundtable 9. DIRECTOR'S REPORT (a) December Director's Report 10. ADJOURN CITY OF O Q 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington M N.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Meeting Minutes (November 19, 2020, Regular Meeting) DATE: December 17, 2020 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the November 19, 2020, EDA meeting. ACTION REQUESTED Approve the November 19, 2020, EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting November 19, 2020 1. CALL TO ORDER The meeting was called to order by Vice-Chair Wilson at 6:00 p.m. Members Present: Simmons, Bernhjelm, Butterfield, Cordes, Hudlemeyer, Wilson Members Absent: Craig Also Present: Adam Kienberger, Community Development Director; Kalley Swift, Community Development Specialist 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bernhjelm, second by Hudlemeyer to approve the Agenda. APIF, MOTION CARRIED. S. CITIZEN COMMENTSIPRESENTA TIONS 6. CONSENT AGENDA MOTION by Cordes, second by Bernhjelm to approve the Consent Agenda as follows: a) Approved Meeting Minutes (October 22, 2020, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS S. DISCUSSION ITEMS a) Business Retention and Expansion Survey Business retention and expansion are the core strategies of the EDA. The BR&E program is ready to go when safety measures allow. In the meantime, a short survey was sent to businesses (home-based and storefront). Staff received 50 responses and they were very scattered. During the pandemic, some businesses lost 75% of their revenue and had to terminate employees, while other businesses saw a 75% increase in revenue and hired employees. Approximately 66% of those surveyed were unsure whether they wanted to participate in the traditional BR&E program, which would consist of an in-person visit. Staff will look at how to make the program successful. The city is trying to be a champion for getting information on assistance to businesses. The Library has workshops helpful to businesses and a link was sent to those who responded to the survey. Through the survey results, staff noted a number of businesses do not use the internet to promote their business. EDA Minutes(Regular) November 19,2020 Page 2 Member Wilson stated Covid has allowed us to obtain more information through the survey and an opportunity for outreach. Six businesses have existed for five years or less. Some are looking to expand or considering other communities. Staff should follow up with a concern regarding a business wanting to build an addition. He asked if we are sending thank you's for participating and a high- level response. Staff will be sending those out next week and wanted to bring the information to the EDA first. Member Wilson suggested having an economic development communication mailed to businesses we have engaged to keep communication open. Staff noted a letter was sent to 226 businesses,but an email and social media seemed to have a bigger impact as far as obtaining a response. Member Butterfield noted we had a 25%response rate. Very few responses were new businesses. Most have been in business 1 —6 years. The majority have an optimistic outlook for the future. Staff noted building permits are much better and there have been several commercial permit inquiries. Member Wilson wondered if it would be too much to contact the businesses by phone? Staff agreed a couple need phone calls as a next step. Member Buttterfield felt for the 30 looking to expand, a personal follow up would be outstanding and inform them of the Redevelopment Program. Staff noted this survey provided a quick snapshot of what the community looks like now and provided an opportunity to reach out. It is also a good tool for an emerging communication strategy. Member Bernhjelm asked what the next two or three things are to be done in 2020. Staff will reach out to selective businesses and develop a list of what to address and why. Chair Simmons stated it should be determined who is the most appropriate person to make those contacts. If it is to provide information, it could be the Community Development Specialist. If it is to talk about relocating a business it should be the Community Development Director or an EDA member. The second piece is how to document and track these contacts. At the last meeting the EDA talked about telling the story of a business. We need to think about documenting now. Staff noted there is a lot of timely information coming out now for business assistance and we need to be prepared to get it out. Member Butterfield noted businesses with 1 — 10 employees made up 50% of the responses. He wondered if it was the 1 — 10 employee group that have the positive outlook or the 11 —20 employee group. b) City Council Update/Member Roundtable Member Bernhjelm stated on Facebook there is a Spirit of Giving promotion by the downtown business owners which runs from November 28 to December 19 on Saturdays from 10 am to 1 pm. Each retailer offers their own promotion. Other planned activities have been scaled back due to Covid. EDA Minutes(Regular) November 19,2020 Page 3 Board and Commission applications are open and interviews will be held in January. The EDA is not listed because staff is working on revising the ordinance. Staff noted the EDA is a 7-person board now. The terms for resident seats are six years. There is one school board seat and two council seats that run with their term. Chair Simmons has been elected to the school board, but that doesn't affect the EDA school board seat. Member Cordes will be vacating his school board seat. Chair Simmons has a resident seat and her term is not finished. Member Wilson sits in a resident seat and was elected to the Council. Members Bemhjelm and Craig sit in Council seats. The Council will have to decide in January what they want to do. Staff will provide the Council with options. Member Bernhjelm stated as of now,we are not recruiting for the EDA. Councilmember Hoyt was elected as mayor so his Council seat is open for appointment. Member Butterfield asked why Council is not filling that seat with the third highest vote getter in the election? Member Bernhjelm stated we could have, but Council decided to open it up for applications. Those who ran in the election are free to apply. We will get a broader range of candidates this way as some do not want to run a campaign. Interviews will be in December. Council will put someone in that seat once Councilmember Hoyt is sworn in as mayor. That seat will be for a 2-year term. Member Bernhjelm stated residents will see a lot of dialogue regarding the liquor store in 2021. The Pilot Knob store is doing very well,but the downtown store is not doing as well. Part of it is due to Family Fresh closing. Decisions are coming whether to renew the downtown lease or move elsewhere. The liquor stores contributed $300,000/year over the last five years to city projects. It has been very helpful in balancing the budget. Member Wilson recalled he was appointed by being in third place in an election. It seems the most transparent. There were two seats and people voted for two people. He would like to see other community leaders as part of the interview process just to provide input. He has served on the EDA since 2013. Ideas from this current group and the energy is dramatically different. Community Development Director Kienberger has brought a lot of structure and stability. There has been uncertainty between the Council—EDA—staff as to who does what. He would like a strategic planning session with Council and EDA to determine roles and where Council is going. Member Bernhjelm noted staff will be scheduling a joint Council/EDA meeting after Council goals are set. She noted the Water Board remains and the city is seeking applications. Member Bernhjelm asked what the plan is for ribbon cuttings. Staff is looking at a December/January rollout for a business campaign. She asked with another pause, is there more we can do to help businesses? Chair Simmons noted there has been a pause on promoting ribbon cuttings. There are limits on gatherings and safety precautions, but nothing that should stop one staff member from going to a business and welcoming them. Community Development Director Kienberger stated staff takes direction from the City Administrator, and he is EDA Minutes(Regular) November 19,2020 Page 4 looking at how staff time is allocated. Member Wilson asked if ribbon cuttings normally flow from the owner to the city? Staff stated it is a resource offered by the city. We coordinate with the FBA, Chamber and elected officials. Member Wilson stated we are part of the Dakota County Regional Chamber, but the attention is given to bigger cities. We have a big opportunity to re-introduce the city to the Chamber and want them to be more engaged with the city. Member Bemhjelm agreed we need to do a better job with partnering with the FBA and the Chamber. Member Wilson felt this EDA is much more pro-business and we just need to identify a process. 9. DIRECTOR'S REPORT a) November Director's Report The Dakota County CDA finalized a total of 24 Farmington small business relief awards and all received a$10,000 grant. The county board has also allocated$5 million for business relief. No updates have been received. Member Butterfield stated the window for these programs was very small and there was not enough time to get the word out. Staff stated the hardest thing was to determine how long to leave the dollars out before they get recouped by cities. Staff scrambled to get the program out and the county had to review applications to make sure they would stand up to an audit. Hopefully Farmington businesses took advantage of the $5 million grant. Staff gave an update on active business projects. The next meeting is scheduled for December 17 at 6 p.m. Chair Simmons would like to keep this meeting on the schedule and for staff to create a snapshot of what we have accomplished this year. It would be good for the next EDA. She wanted to recap action items for the next meeting. Member Hudlemeyer stated action items would be: - Work on achievements and follow-up with additional data analysis from the survey - What we each would like to see in 2021 - Where we are with the BR&E program Member Wilson stated the Governor may be planning things for a month from now. As a visible way to support businesses, can we on our website home page have a link to ways to support Farmington businesses during Covid? He suggested reaching out to businesses to list their hours and what they are about. We would have to be careful to not show preference to a specific business. We would just have a link to their information. Staff noted the communications staff is working on something similar. Member Butterfield asked what more can we do to make the business community thrive? We lost 10 businesses the first time around. Member Wilson liked the idea of a 2020 wrap up. Would it be better to have it in January with the new EDA? Staff stated the EDA has funds available and the ability to develop a program with what we have. We can bring ideas to EDA Minutes(Regular) November 19,2020 Page 5 the January meeting. Chair Simmons reminded everyone we want to highlight stories on businesses. Member Wilson added action items: - Provide highlights of 2020 for the December meeting - Have a preview of 2021 actions - Ideas for grants to support businesses Member Bernhjelm added - A status update on the signage plan for 2021 Chair Simmons asked if it would be reasonable to create two stories for the Heikkila building and Exchange Bank building and Weng's. Member Hudlemeyer noted that is important to show the board is results driven. Staff will talk to communications staff to see about priorities. 10. ADJOURN MOTION by Hudlemeyer, second by Bernhjelm to adjourn at 7:36 p.m. APIF, MOTION CARRIED. Respectfully submitted, C&tKi2 MLcUer Cynthia Muller Administrative Assistant CITY OF © 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ® Farmington M N.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: December 17, 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 ❑ Exhibit Financial Snapshot- December ❑ Exhibit EDA-Actual Vs Budgeted Rev and Exp- December 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 223,773.98` 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 -3,889.76 -2,700.00' 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -36,666.63 -40,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB -115,267.16 -162,911.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 109,719.24 122,761.00 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 7,942.91 9,392.00 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 8,228.87 9,208.00 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 18,852.00 21,550.00! 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 166.98 2000-HRA/ECONOMIC DEVELOPME '6280 BOOKS&SUBSCRIPTIONS 85.00 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS-DBB 496.36 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 1,195.00 12,000.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES-DBB 12.98 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 83.50 2,500.00' 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 8,036.38 8,767.00 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 465.68 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 225.41 300.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 111.09 130.00 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 1,678.71 4,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 175.80 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 21.28 800.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINTENANCE 12.98' 0.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 259.57'. 2000-HRA/ECONOMIC DEVELOPME 6550 DEVELOPER PAYMENTS 20,000.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 10,558.55 7,733.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 -3,970.00 0.00 -3,970.00 0.00 -3,970.00 12/11/2020 2:49:44 PM Paae 1 of' EDA Actual vs Budgeted 2021 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 588 496 478 413 351 318 300 361 305 281 0 0 3,890 2,700 1,190 Mise Revenue 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Revenues 588 496 478 413 351 318 300 361 305 281 0 0 3,890 2,700 1,190 Personnel Services 0 0 34,761 12,191 18,835 12,353 11,179 13,001 11,705 12,353 18,835 (304) 144,910 162,911 (18,001) 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 0 700 0 0 0 1,195 12,000 (10,805) 6403-LEGAL 0 0 0 0 0 0 0 0 0 84 0 0 84 2,500 (2,417) 6404- IT SERVICES 731 731 731 731 731 731 731 731 731 731 731 0 8,036 8,767 (731) 6422- ELECTRIC 21 20 20 20 20 22 20 21 22 20 19 0 225 300 (75) 6426- INSURANCE 10 10 10 10 10 10 10 10 10 10 10 0 111 130 (19) 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) 42 10 0 0 1,679 4,000 (2,321) 6485-MILEAGE REIMBURSEME 21 0 0 0 0 0 0 0 0 0 0 0 21 800 (779) 6505- EQUIPMENT REPAIR SER 0 0 0 0 0 0 0 0 0 13 0 0 13 0 13 6550- DEVELOPER PAYMENTS 0 0 0 0 0 10,000 0 0 10,000 0 0 0 20,000 20,000 6570- PROGRAMMING EXPENS 555 5,538 555 0 709 1,405 1,297 0 0 500 0 0 10,559 7,733 2,826 Services and Charges 3,298 6,660 1,521 580 1,469 12,368 2,553 637 11,505 1,368 760 0 42,718 38,730 3,988 Total Exp 3,298 6,660 36,281 12,771 20,390 24,721 13,732 13,638 23,210 13,721 19,595 (304) 187,713 201,641 (13,928) Transfers In 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 0 36,667 40,000 (3,333) Transfers Out 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other Financing Sourcesf624 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 0 36,667 40,000 (3,333) Net Change in Fund Balance (2,831) (32,470) (9,025) (16,705) (21,070) (10,099) (9,944) (19,571) (10,107) (16,262) 304 (147,157) (158,941) 11,784 Paae 1 of 1 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Irk ® Farmington M N.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Certificate of Completion-Thelen TI F Request DATE: December 17, 2020 INTRODUCTION1DISCUSSION Jeff Thelen of Thelen Cabinets has requested a Certificate of Completion pertaining to a Contract for Private Sale from October 29, 1990 and recorded as Document No. 9601312. This contract was between the Housing and Redevelopment Authority of the City of Farmington and Jeffrey J. Thelen as part of a tax increment financing(TI F) project in the 1990s for development of the Farmington I ndustrial Park. The TI F district was decertified in September of 2000 with no outstanding obligations. As it is unclear if a Certificate of Completion was previously requested or issued, the city attorney recommends the EDA issue a new one. All requirements of the contract were met over 20 years ago, and the certificate is being required as part of a private business transition. ACTION REQUESTED Authorize the execution of the attached Certificate of Completion certifying that the required improvements outlined in the Contract for Private Sale from October 29, 1990 and recorded as Document No. 9601312 have been completed. ATTACHMENTS: Type Description © Exhibit Certificate of Completion -Thelen CERTIFICATE OF COMPLETION WHEREAS, the Housing and Redevelopment Authority of the City of Farmington, Minnesota, a Minnesota municipal corporation, entered into a Contract for Private Sale with Jeffry J. Thelen("Thelen") dated October 22, 1990, for the development of certain lands in the City of Farmington legally described as follows, to-wit: Lot Two (2), Block Two (2),Farmington Industrial Park, according to the plat thereof on file and of record in the office of the County Recorder in and for Dakota County, Minnesota; ("Property"); WHEREAS, said Contract for Private Sale ("Contract")was recorded with the Dakota County Recorder on October 29, 1990 as Document No. 960312; WHEREAS,pursuant to Minnesota Statute § 469.094, the powers, duties and activities of the Housing and Redevelopment Authority have been transferred to the Economic Development Authority of the City of Farmington, Minnesota("EDA"); WHEREAS,pursuant to said Contract, Thelen covenanted and agreed to construct certain improvements on said Property; said improvements being stated and addressed in the Contract; WHEREAS,upon completion of said improvements as required by the Contract,the EDA agreed to issue a Certificate of Completion certifying that Thelen has completed construction of said improvements in accordance with the agreed upon plans and improvements to the Property, thereby terminating Thelen's obligation regarding those portions of the Contract pertaining to construction and development of said Property; WHEREAS, said construction and development by Thelen has been completed pursuant to the plans, specifications, terms and conditions as stated in the Contract. NOW, THEREFORE, the EDA hereby states, acknowledges,confirms and certifies as follows: 1. Thelen has constructed upon the above described Property the improvements as agreed to in the Contract between the parties dated October 22, 1990. 2. That the completion of said construction and improvements is hereby certified to by the EDA. 3. That those parts and portions of the Contract between the parties pertaining to said construction of said improvements are hereby stated, acknowledged, and confirmed to be satisfied and completed. 2131442 F 4. That the issuance of this Certificate of Completion by the EDA does not effect, modify, or terminate the additional and continuing duties, covenants, and obligations of Thelen, his successors and assigns,as stated in the Contract for Private Sale. Dated this day of _( ,O L,bt a 202 D . ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FAR IINGi'ON,MINNESOTA By QAC'41��l Oa..f1 n ask M fl h 4 [print name] Its Chairperso. By L>>9� [print namiel Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF The foregoing instrument was acknowledged before Hire thisday of 2Q�by the Chairperson and the Executive Director of the Economic Development Authority�e City of Farmington, I Minnesota,a Minnesota municipal corporation,on behalf of the Economic Development Authority. ' N ary Public CYNTHIAA MULj NOTARY PUBL MINNESOTA My Commission Expires Jan TMS INSTRUNMNT DRAFTED BY: CAMPBHLL KNUTSON Professional Association Grand OA Office Center I 860 Blue Gentian Road,Suite 290 Eagan,Minnesota 55121 Telephone: (651)452-5000 7JJ/jmo 213144 e i i CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 1�1 © Farmington M N.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: BR&E Survey Results -Continued DATE: December 17, 2020 INTRODUCTION/DISCUSSION General themes and overall survey results were reviewed at the November EDA meeting. Attached for this meeting is survey results for the 6 businesses five years or younger as well as the 6 businesses in the physical exercise&wellness; art/entertainment/recreation; and the accommodation/food service sectors which can be used and reviewed in conjunction with the Financial Policy Discussion topic. In total,these two groups represent 24% (12/50) of the Fall BR&E Survey responses. Since a non-probability sampling method of voluntary response sampling was utilized to get Fall 2020 BR&E survey responses, we cannot use it to make a statistical inference about the business community population or sub-groups as a whole. However, the individual and grouped responses allow us to develop an initial understanding of topics and sub-groups within the survey population. Survey questions are attached on PDFs in the same format as was seen in November. Below are results and key findings for two groups of the survey population. Businesses 5 years or younger: • 83%suspended or limited business operations as a result of COVI D. This compares to 56% in the overall survey results. o 33% of those businesses who suspended or limited business operations are still not able to have full business operations. This compares to 28% in the overall survey results. • The majority (67%) do not have an online or virtual sales/services component. • All are 10 employees in total or less. 5 of the 6 businesses have less than 5 employees. • 33% of the young businesses have had to terminate employees (1/3 of their employee base or more). • Half have seen decreased revenues. 33% of businesses are at risk of losing employees if their revenues continue at their current rate. • Business 5 years or younger are showing to be more likely to consider moving, downsizing, closing permanently, or limiting operations than the overall survey results. • The majority are facing additional expenses to mitigate public safety risks. • These businesses are more pessimistic than the survey group as a whole for their outlook over the next 5 years. o One Month (i.e. November 2020 outlook) o 33% Pessimistic vs. 21% Pessimistic in the overall survey results. o Six Months (i.e. November 2020—April 2021 outlook) o 34% Pessimistic vs. 21% Pessimistic in the overall survey results. o One Year (November 2020—November 2021 outlook) o 17% Pessimistic vs. 9% Pessimistic in the overall survey results. • The majority are interested in information on financial assistance available for their business for the next 90 days as well as accessing help or extensions on expenses such as rent, utilities, etc. • These businesses are more open to the idea of and willing to participate in our traditional BR&E Program once it launches. This survey was conducted before Executive Order 20-99 was announced or enacted. Executive Order 20-99 directly impacts these sectors. Businesses in the physical exercise&wellness; art/entertainment/recreation: and the accommodation/food service sectors: • The majority of businesses are at least 6 years old with 1/3 being at least 20 years old. • 88%suspended or limited business operations as a result of COVI D. This compares to 56% in the overall survey results. o 80% of those businesses who suspended or limited business operations are still not able to have full business operations. This compares to 28% in the overall survey results. • The majority (67%) do not have an online or virtual sales/services component. • 50% have already seen a change in employees compared to only 36% in the overall BR&E survey results. • 67% have seen a decrease in revenue compared to only 44% in the overall BR&E survey results. • The majority are facing different business hours (88%vs. 28% overall survey results), added expenses to mitigate public safety risks (67%), as well as being concerned about making payroll (67%vs. 18% overall survey results), o Additional concerns are losing work (50%), customer traffic(50%vs. 38%overall survey results), and paying their mortgage/utilities (50%vs. 16%overall survey results). • These sectors are less optimistic than the survey group as a whole in the short-term future o One month (i.e. November 2020 outlook) o 66% Optimistic vs 73% Optimistic for the overall survey results o Six Months (i.e. November 2020—April 2021 outlook) o 49% Optimistic vs. 68% Optimistic for the overall survey results • The majority are interested in information on financial assistance available for their business for the next 90 days as well as accessing help or extensions on expenses such as rent, utilities, etc. ACTION REQUESTED The topic is purely informational and should be used as background knowledge for EDA policy discussions tonight and in the future. ATTACHMENTS: Type Description D Exhibit Overall BR&E Survey Results D Exhibit Business 5 Years &Younger BR&E Survey Results D Exhibit Businesses in the Executive Order 20-99 Sectors BR&E Survey Results BR&E FaLL 2020 Survey Results 5o businesses in total responded to the Fall 2020 BR&E Survey. All individual business responses have been summarized together to provide overall results for each individual question in averages and percentages. No individual business identity Will be released. Business Information Section Question #1: Business Contact Information BUSINESS NAME ADDRESS OF WEBSITE PHONE NUMBER BUSINESS FACILITY ■ANSWER ■No ANSWER Question #2: Business Official Fitting Out the Survey NAME JOB TITLE EMAIL PHONE NUMBER ■ANSWER ■No ANSWER General Information Section Question #3:Which of the following North American Industry Classification System (NAICS)categories best describes your business?(Select one answer) UTILITIES 1 EDUCATIONAL SERVICES 1 ARTS/ENTERTAINMENT/RECREATION 1 TRANSPORTATION&WAREHOUSING 2 INFORMATION 2 CONSTRUCTION 2 REAL ESTATE/RENTAL&LEASING 3 HEALTH CARE SERVICES/SOCIAL ASSISTANCE 3 FINANCE/INSURANCE 3 ACCOMODATION/FOOD SERVICE 3 MANUFACTURING 4 PROFESSIONAL/SCIENTIFIC/TECHNICAL SERVICE 4 RETAIL TRADE 4 NO RESPONSE GIVEN 8 OTHER SERVICES 9 0 1 2 3 4 5 6 7 8 9 "Other Services" Responses: 1. Marketing 6. Childcare 2. Environmental Services 7. Community Services 3. Animal Services 8. Community& Employment 4. Physical Exercise &Wellness Services 5. Commercial Cleaning/Janitorial 9. Health & Beauty Services Services Question #4: How Long Has Your Business Been Operating in Farmington? 17 15 12 4 4 3 2 < 1 YEAR 1-2 3-5 6-10 11-20 MORE THAN YEARS YEARS YEARS YEARS 20 YEARS Operating Status Section Question #5: Did Your Business Suspend or Limit Business Operations as a Result of the COVID-zg Public Health Emergency? 13 ■No 26% ■YES-LIMITED/PARTIAL BUSINESS OPERATIONS 15 ■YES-SUSPENDED BUSINESS OPERATIONS 30% Question #6: If You Selected Yes(Limited/Partial Business Operations or Suspended Business Operations) in Question #5,What Is Your Current Business Operation Status? Yes - Suspended Business Operations Yes - Limited/Partial Business Operations n Responses -26% is Responses- ,io% ■FULL BUSINESS ■FULL BUSINESS OPERATIONS OPERATIONS AVAILABLE AVAILABLE ■ LIMITED/PARTIAL ■LIMITED/PARTIAL BUSINESS BUSINESS OPERATIONS OPERATIONS AVAILABLE AVAILABLE Question #7: Does Your Business Have An Online or Virtual Sales/Services Component? ■YES ■No Employment and Workforce Section Question #8: As of January z, 2020, How Many Employees Were Working At This Business Facility In Farmington? `Answers Broken Down By Business Size 1-5 Total Employees - 22 of the 5o Responses (44%) 5 4 3 2 OIIIIIa ■FULL-TIME ■PART-TIME(YEAR-ROUND) ■SEASONAL/TEMPORARY 6-10 Employees - 14 of the 5o Responses (28%) 10 8 6 4 7 2 0 ■FULL-TIME ■PART-TIME(YEAR-ROUND) ■SEASONAL/TEMPORARY 11-2o Employees - 6 of the 5o Responses (12%) 15 10 5 0 ■FULL-TIME 0 PART-TIME(YEAR-ROUND) 21- !io Employees - F) of the 5o Responses (10%) 40 30 20 10 0 ■FULL-TIME ■PART-TIME(YEAR-ROUND) 51+ Employees - :� of the 5o Responses (6%) 200 6 150 2 100 2 50 0 ■FULL-TIME ■PART-TIME(YEAR-ROUND) 6}SEASONAL/TEMPORARY Question #g: Has Your Employee Count Changed Due to COVID-sg Specifically? s8 36% YS ■ No Question #io: If Yes,What is the Workforce Change? Graph shoves the numberof responses Graph shoves the total employment received for each answer choice from change in each category from the 18 the 18 businesses which selected "Yes" in businesses which selected "Yes" in Question #g. Question #g. 10 28 8 24 20 6 i6 a 10 4 12 8 2 4 0 0 NEW HIRES FURLOUGHED LAID NEW HIRES FURLOUGHED LAID OFF/TERMINATED OFF/TERMINATED List lays out the responses by the 18 individual business answers: Business of 2 - 1 Furloughed Business of 2 - 1 New Hire Business of 3 - 2 Furloughed Business of 3 - 1 Terminated Business Of 4 - 3 New Hires -1 Terminated Business Of 4 -4 New Hires — 1 Terminated Business of 6 - 1 New Hire Business of 7- 0.5 Furloughed Business of 8 - 1 New Hire -2 Terminated Business of 8 -i Furloughed - i Terminated Business of g - 3 Terminated Business of 11 - 1 Terminated Business of 12 - 1 Terminated Business of 12 - 6 New Hires -6 Furloughed - 6 Terminated Business of 16 - 1 New Hire Business of 22 -2 New Hires Business of 23 - so Terminated Business Of 130 -4 New Hires Finance Question #11: How Has Your Business Revenue Changed Since COVID-19 Became A Widespread Concern in March 2020? NO ANSWER GIVEN 2 INCREASED BY MORE THAN 75% 1 INCREASED BETWEEN 50%-75% 1 INCREASED BETWEEN 25%-50% € 5 INCREASED BY LESS THAN 25% 6 Individual Answers NO OBSERVED REVENUE CHANGE t 13 DECREASED BY LESS THAN 25% 10 DECREASED BETWEEN 25%-50% 1 4 DECREASED BETWEEN 50%-75% 4 DECREASED BY MORE THAN 75% 4 0 2 4 6 8 10 12 14 ■DECREASE IN REVENUE 13 ■ NO OBSERVED REVNUE 26 CHANGE INCREASE IN REVENUE Generalized Answers 9 ■NO ANSWER GIVEN Question #12: Based on Your Selected Answer to Question #11, Howl Many Employees Are At Risk of Unemployment At Your Business If Your Revenue Continues At This Rate? NEED TO HIRE ADDITIONAL EMPLOYEES � 8 0 EMPLOYEES 33 1-3 EMPLOYEES 6 4-6 EMPLOYEES 9 1 7-10 EMPLOYEES 0 11-20 EMPLOYEES m 1 MORE THAN 20 EMPLOYEES 0 NO ANSWER GIVEN N 1 0 5 10 15 20 25 30 35 Outlook Question #13 Are You Currently Considering Any Of The Following? Select All That Apply IMPROVING CURRENT BUSINESS FACILITY g EXPANDING-AT THIS LOCATION 6 MOVING 6 CHANGING YOUR BUSINESS PLAN 5 EXPANDING-ADDING ANOTHER LOCATION 4 DOWNSIZING 3 MERGING WITH OR ACQUIRING ANOTHER BUSINESS 2 CLOSING PERMANENTLY 2 SELLING 2 NONE OF THE ABOVE 17 OTHER 9 0 4 8 12 16 Other(Please Specify): 1. Limited days/times of operations 2. 1 am waiting to see how the upcoming year turns out. 3. We have adapted our programs to an online format so that we can continue to engage with our patrons. This has opened up new service avenues and exposed us to a wider audience. 4. Waiting it out 5. 1 have installed new equipment and expanded to the entire building, but as the economy slows we may be forced to do some layoffs. 6. We may need to consolidate our production shifts - we currently have 2 but really only need 11/2 based on current volume. We have not had any layoffs, but people who have left us for a variety of reasons have not been replaced. 7. 1 am currently in the process of building an addition at our(A. location but that has been a slight struggle with the city. It's as if they don't want any business in this town. Make the process much more difficult that it should be. 8. Based on the changes to the economy so far, revenue is up year over year, however that growth pace has been significantly impacted by the shut down of the MN economy... many of our current clients have either closed their businesses or significantly limited employees being paid. In particular the entertainment and food industries. If the shutdown continues or is fully re-implemented, I have had several business owners that have told us that they will be closing their businesses.These shutdowns area devastating to the small business community and my conclusion is that the state political leadership has been inept at best in dealing with this crisis. g. Things depend on what transpires from the closing Of(Ri�eSS). My lease contract may allow the landlord to make me pay the CAM costs that were paid by (Rus) before they closed. This is thousands of dollars more in overhead that I cannot afford, so it may force me to either close or sell. Question #14: Howl Has COVID-1g Affected Your Business?(Select ALL That Apply). ADDED EXPENSES TO MITIGATE PUBLIC SAFETY RISKS 36 LOSS OF REVENUE/SLOWER SALES/NO SALES 22 SUPPLY CHAIN DISRUPTIONS 18 TEMPORARY BUSINESS CLOSURE(VOLUNTARY/MANDATED) 16 HAD TO MODIFY THE PRODUCTS AND SERVICES OFFERED ^_'. 15 EMPLOYEE LOSS 14 CHANGE OF BUSINESS HOURS 14 CHANGE OF BUSINESS MODEL 14 OFF-SITE WORKING OPTIONS FOR EMPLOYEES 9 ENHANCED SECONDARY MODE TO SELL AND DELIVER 8 ESTABLISHED ALTERNATIVE MODE TO SELL AND DELIVER 8 CHANGE OF INSURANCE RATES 5 OTHER 5 0 10 20 30 Other(Please Specify): 1. Insurance - no affect on health insurance. 2. 1 had to deliver a lot of rco,-�s;that had been previously ordered via door drop off. This added expense and a lot of time/inconvenience. 3. We are being sued by an employee for enforcing the MN mask mandate, because he didn't want to Wear a face mask so he walked off the job. 4. Just needed to provide hand sanitizer, masks and other products and education to consumers, etc... 5. More screening and disinfection protocols. 6. Channel shift among customer base. Question #15: At This Current Time,What Are You Most Concerned About?(Select ALL That Apply). LOSING WORK I.E.CLIENTS,SALES,PROJECTS) 23 CUSTOMER TRAFFIC 19 GETTING INVENTORY/SUPPLIES 14 MY EMPLOYEES FINANCIAL WELFARE 13 MAKING PAYROLL THIS PAY PERIOD/BEYOND 9 PAYING THIS MONTH'S RENT, MORTAGE, UTILTIES,ETC. 8 LOSING EMPLOYEES 8 ACCESSING GOVERNMENT SUPPORT RELATING TO COVID OTHER 11 0 5 10 15 20 Other(Please Specify); 1. Bankruptcy/non-payments/slow payments. 2. Keeping employees safe and working with the increased traffic to our location. 3. It's an overall concern of people developing different purchasing patterns (like shopping only big box and online). Once these patterns are established and the old paths of purchasing are eroded, it will be extremely difficult to build new roads back to old traditions of shopping small businesses. 4. 1 pay myself last. I'm down about 50% in salary from what I should be. 5. Our business is doing fine with minor disruptions. 6. Access to bandwidth and, more importantly, high tower sites such as water towers to distribute internet service. 7. LOSING BUISNESS BECAUSE FARMINGTON ALLOWED ANOTHER (BUciNBSS cSECT-QW), TO COME INTO TOWN!!!!! 8, Nothing. Has not affected our business to speak of. More hassle factor if anything. g. There is potential a serious tax ramification with the Pay Roll Protection Loan Forgiveness that could put us out of business. I have been told that the State will NOT make the forgiveness tax exempt - meaning we will have give the State $50,000 of our $500,000 loan as a tax on Loan Forgiveness. The IRS has ruled that the payroll expenses that we used the money for will NOT be allowed as a business deduction.That means it will in effect become income - another -$180,000 in Federal Tax PLUS the State will take another -$50,000 in income taxes. All together, our accountants tell us that -50% of our PPP loan forgiveness will need to be returned as taxes. Yet I spent it all on payroll and did NOT lay off anyone. It's going to be a very very hard tax year. 10. Government interference and suppressing our business partners by taking away their freedom to make decisions as adults and business owners. 11. Resolution of COVID issues that will allow planned improvements to facility for purpose of making internal office spaces available for rent to other businesses (office share space). Question #16: What Was Your Outlook For Your Business Prior to COVID-19 Becoming a Widespread Concern in March 2020? 2% Optimistic: 94% Pessimistic:4% 8% Very Optimistic Optimistic Moderately Optimistic Slightly Optimistic Slightly Pessimistic Pessimistic Moderately Pessimistic Very Pessimistic wr Unsure Question #17: What Is Your Outlook For Your Business Over The Next: One Month Six Months Optimistic:73% Optimistic: 68% Pessimistic: 21% Pessimistic: 21% 6! 25% One Year Two - Five Years Optimistic: 83% Optimistic:91% Pessimistic: 9% Pessimistic: 0% 2 OX Business Assistance Question #18: Which Of The Following Types Of Assistance Would Be Helpful To Your Business? (Select All That Apply). INFORMATION ON FINANCIAL ASSISTANCE AVAILABLE FOR MY BUSINESS 18 TECHNICAL TRAINING FOR SOCIAL MEDIA,WEBSITE DEVELOPMENT,ETC. 11 HOW To PROTECT MY EMPLOYEES FROM COVID-1g 10 PENALTY-FREE EXTENSIONS ON EXPENSES(RENT,UTILITIES, ETC.) 10 HOW TO PROTECT MY CUSTOMERS FROM COVID-19 8 OTHER 8 INFORMATION ON BUSINESS SUCCESSION PLANNING - _a 5 INFORMATION ON SELLING MY BUSINESS 4 INFORMATION ON COSTS/RISKS FOR PROVIDING NEW GOODS OR SERVICES 4 GUIDANCE ON HOW TO MODIFY MY BUSINESS MODEL 3 0 10 20 Other(Please Specify): 1. There are too many restrictions placed by government. Of course we don't Want our customer sick. Small businesses in particular live off of repeat and regular customers.The respect we need to have from our clients is vital. However, we as businesses should be able to govern ourselves in this area. If we are going to be a strong nation, please let the Workers Work. 2, We are very fortunate, we are doing fine. Please focus on other businesses, we realize there are many in more need than we are. 3. HOW TO COMBAT THE BIG BOYS WHO SEND ALL THEIR MONEY OUT OF TOWN. WE OWNED ANOTHER(BUSINESS) IN NORTHFIELD, ALONG SIDE OF A WI SINF=Sc) SO I KNOW HOW THEY OPERATE AND WHERE THE MONEY GOES. WE HAVE BEEN OPERATING THERE FOR 37 YEARS. 4. We need some lobbying help on the PPP Loan Forgiveness Tax issue - we need the State to exempt it from taxation. 5. Information on property improvements to my building if anything is available. 6. 1 am sure that many business owners in our community Will find a need for most of these items above, however we are not currently in need of these or other services. The biggest immediate need that I see is to begin to fully re-open the MN economy. In the food industry alone (With Winter approaching) national stats are telling us that up to 50% of restaurants could fail in MN alone if they are not allowed to have the option of 75% occupancy for this winter. 50% of all food establishment in NY City have already gone out of business. This is only one sector of the economy and our client base, but that sector alone could take up to 6% of our current revenue. If those Losses occur over several sectors of our client base, it would be devastating for those client and end up devastating our business as well. Even the WHO (World Health Org.) is now saying that economic shutdowns need to be lifted... for economic, health and safety concerns. As I write this response - we had another so+ year client (small business specialty manufacturer) call my staff to inform us that they will be closing there doors because of Covid-19 and the MN economic shutdown, there goes another small business = personal economic vitality for business owners, their employees, their customers and their local community. Welcome to a real-time moment of what we are daily dealing with for our clients in the small business community. The damage that this economic shut down has caused will affect our clients that survive this "event" and our organization for years to come. 7. None. 8. Nothing Specified. Question #sg: Have You Received Any Financial Assistance To Mitigate The Impacts of COVID-ig On Your Business? Mg. PPP, Dakota County Small Business Relief Grant, City of Farmington Utility Fee Program, etc.) 1 2% ■YES ■ No NO RESPONSE Question #20: If Yes,Which Program(s) Have You Received Funding From PAYCHECK PROTECTION PROGRAM(PPP)- U.S. 24 SMALL BUSINESS ADMINISTRATION SMALL BUSINESS RELIEF GRANT-DAKOTA COUNTY 7 EMERGENCY ECONOMIC INJURY DISASTER LOAN FW (EIDU-U.S.SMALL BUSINESS ADMINISTRATION 3 UTILITY FEE PROGRAM-CITY OF FARMINGTON 2 DEED GRANT 1 DCSBRP UTILITY 1 0 5 10 15 20 25 30 Interest In Traditional BR&E Question #21: A Traditional Business Retention & Expansion (BR&E) Program Which Consists Of A Different Online Business Assessment Survey And An In-Person Visit To Your Business Facility Was Going To Launch In March 202o But Has Been Put On Hold Due To COVID-19.Once The Traditional BR&E Program Is Able To Launch After The COVID-1g Pandemic, Would Your Business Be Interested In Being A Participant? 1 2% g ■YES 16% 1p ■ UNSURE- PROVIDE OUTREACH WHEN THE BR&E PROGRAM STARTS y No ■ NO RESPONSE GIVEN Release of Data Question #22: If The BR&E Team Finds An Issue In Any Of Your Survey Responses In Which A Certain Individual(City, County, Or State Staff)Or Group Of Individuals (Economic Development Authority, Small Business Association, Open To Business, Department Of Employment And Economic Development, etc.) May Be Able To Respond To Your Identified Concern In A Beneficial Way, Do You Authorize The BR&E Team To Release Your Survey Information To A Selected Resource? 2 % ■YES- MY CONTACT INFORMATION AND SURVEY ANSWERS PROVIDED CAN BE SHARED WITH AN APPROPRIATE RESOURCE WHICH MAY AID ME AND MY BUSINESS. ■NO-I WILL NEED TO MAKE DIRECT CONTACT TO POSSIBLE RESOURCES WHICH MAY AID ME AND MY BUSINESS. *NO RESPONSE GIVEN-AUTOMATICALLY CONSIDERED"No" BR&E Fall 2020 Survey Results 6 of the 5o business responses came from businesses less than 5 years old and are summarized below for this specific sub-group. All individual business responses have been summarized together to provide overall results for each individual question in averages and percentages. No individual business identity will be released. Business Information Section Question #1: Business Contact Information NONE BUSINESS NAME ADDRESS OF WEBSITE PHONE NUMBER BUSINESS FACILITY ■ANSWER Question #2: Business Official Filling Out the Survey NONE NAME JOB TITLE EMAIL PHONE NUMBER ■ANSWER General Information Section Question #3:Which of the following North American Industry Classification System (NAICS)categories best describes your business?(Select one answer) HEALTH CARE SERVICES/SOCIAL ASSISTANCE 2 ARTS/ENTERTAINMENT/RECREATION 1 TRANSPORTATION&WAREHOUSING 1 INFORMATION 1 OTHER SERVICES 1 O 1 2 "Other Services" Responses: Animal Services Question #4: Hove Long Has Your Business Been Operating in Farmington? 3 2 < 1 YEAR 1-2 YEARS 3-5 YEARS Operating Status Section Question #5: Did Your Business Suspend or Limit Business Operations as a Result of the COVID-ig Public Health Emergency? ■No 3 ■YES-LIMITED/PARTIAL 50% BUSINESS OPERATIONS ■YES-SUSPENDED BUSINESS OPERATIONS Question #6: If You Selected Yes(Limited/Partial Business Operations or Suspended Business Operations) in Question #5,What Is Your Current Business Operation Status? Yes - Suspended Business Operations Yes - Limited/Partial Business Operations Responses - tiO% 2 Responses - :n% ■FULL BUSINESS ■FULL BUSINESS OPERATIONS OPERATIONS AVAILABLE AVAILABLE ■LIMITED/PARTIAL ■ LIMITED/PARTIAL BUSINESS BUSINESS OPERATIONS OPERATIONS AVAILABLE AVAILABLE Question #7: Does Your Business Have An Online or Virtual Sales/Services Component? ■YES ■ No Employment and Workforce Section Question #8: As of January 1, 202o, How Many Employees Were Working At This Business Facility In Farmington? 10 8 6 4 2 © ■ O ■FULL-TIME ■PART-TIME(YEAR-ROUND) Question #g: Has Your Employee Count Question #so: If Yes,What is the Workforce Changed Due to COVID-19 Specifically? Change? Business of 2 - 1 New Hire Business of 3 - so Terminated `Contact was made with the business to clarify their survey response. They had 3 employees ■YES on January 1, 2020 (Question #8) and then had significant employee hire between ■No January 1-March 2020 (13 employees). The employees recently hired were the ones terminated bringing their employee count back down to 3. Business of 9 -3 Terminated Finance Question #11: How Has Your Business Revenue Changed Since COVID-19 Became A Widespread Concern in March 2020? Individual Answers Generalized Answers INCREASED BY MORE THAN 75% i INCREASED BETWEEN 50%-75% 1 INCREASED BETWEEN 25%-50% 1 / INCREASED BY LESS THAN 25% NO OBSERVED REVENUE CHANGE MWERMIEWFM 1 'r . ~ DECREASED BY LESS THAN 25% DECREASED BETWEEN 25%-50% 2 DECREASED BETWEEN 50%-75% ■DECREASE IN REVENUE DECREASED BY MORE THAN 75% 1 ■ NO OBSERVED REVNUE CHANGE 0 1 2 " INCREASE IN REVENUE Question #12: Based on Your Selected Answer to Question #11, How Many Employees Are At Risk of Unemployment At Your Business If Your Revenue Continues At This Rate? NEED TO HIRE ADDITIONAL EMPLOYEES 1 0 EMPLOYEES 3 1-3 EMPLOYEES 2 0 1 2 3 Outlook Question #13 Are You Currently Considering Any Of The Following?Select ALL That Apply IMPROVING CURRENT BUSINESS FACILITY 1 MOVING 1 CHANGING YOUR BUSINESS PLAN 1 DOWNSIZING : 1 CLOSING PERMANENTLY 1 NONE OF THE ABOVE 1 OTHER 2 0 1 2 Other(Please Specify): 1. Limited days/times of operations 2. Things depend on What transpires from the closing of(B s). My lease contract may allow the landlord to make me pay the CAM costs that Were paid by�R ,� before they closed.This is thousands of dollars more in overhead that I cannot afford, so it may force me to either close or sell. Question #14: Howl Has COVID-ig Affected Your Business?(Select ALL That Apply). ADDED EXPENSES TO MITIGATE PUBLIC SAFETY RISKS 4 LOSS OF REVENUE/SLOWER SALES/NO SALES 4 TEMPORARY BUSINESS CLOSURE(VOLUNTARY/MANDATED) 3 SUPPLY CHAIN DISRUPTIONS 2 HAD TO MODIFY THE PRODUCTS AND SERVICES OFFERED 2 EMPLOYEE LOSS 2 CHANGE OF BUSINESS HOURS 2 CHANGE OF BUSINESS MODEL 1 OFF-SITE WORKING OPTIONS FOR EMPLOYEES 1 ENHANCED SECONDARY MODE TO SELL AND DELIVER 1 ESTABLISHED ALTERNATIVE MODE TO SELL AND DELIVER 1 OTHER 1 0 1 2 3 4 Other(Please Specify): 1. More screening and disinfection protocols. Question #15:At This Current Time,What Are You Most Concerned About? (Select ALL That AppLy). CUSTOMER TRAFFIC 3 GETTING INVENTORY/SUPPLIES 3 LOSING WORK(I.E.CLIENTS,SALES,PROJECTS) 2 PAYING THIS MONTH'S RENT, MORTAGE, UTILTIES,ETC. 2 MY EMPLOYEES FINANCIAL WELFARE MAKING PAYROLL THIS PAY PERIOD/BEYOND i 7TWIE17117 1 LOSING EMPLOYEES LL= 1 ACCESSING GOVERNMENT SUPPORT RELATING TO COVID [ 1 OTHER 1 0 1 2 3 Other(Please Specify): 1. Access to bandwidth and, more importantly, high tower sites such as Water towers to distribute internet service. Question #16: What Was Your Outlook For Your Business Prior to COVID-19 Becoming a Widespread Concern in March 2020? Optimistic: 100% Very Optimistic 414 Optimistic Moderately Optimistic Slightly Optimistic Slightly Pessimistic Pessimistic Moderately Pessimistic Ver Pessimistic Unsure Question #17:What Is Your Outlook For Your Business Over The Next: One Month Six Months Optimistic: 67% Optimistic: 66% Pessimistic: 33% Pessimistic: 34% 17% 33% 17'/ 16 One Year Two - Five Years Optimistic: 83% Optimistic:100% 44hPessimistic: 17% ? 3 17•% Business Assistance Question #18: Which Of The Following Types Of Assistance Would Be Helpful To Your Business? (Select ALL That Apply). INFORMATION ON FINANCIAL ASSISTANCE AVAILABLE FOR 4 MY BUSINESS OVER THE NEXT g0 DAYS PENALTY—FREE EXTENSIONS ON EXPENSES(RENT,UTILITIES, ETC.) 3 TECHICAL TRAINING FOR SOCIAL MEDIA,WEBSITE n. 2 DEVELOPMENT, ETC. INFORMATION ON BUSINESS SUCCESSION PLANNING 2 INFORMATION ON SELLING MY BUSINESS 1 GUIDANCE ON HOW TO MODIFY MY BUSINESS MODEL 1 0 1 2 3 4 Question #1g: Have You Received Any Financial Assistance To Mitigate The Impacts of COVID-1g On Your Business? Mg. PPP, Dakota County Small Business Relief Grant, City of Farmington Utility Fee Program, etc.) ■YES ■ No Question #20: If Yes,Which Program(s) Have You Received Funding From? PAYCHECK PROTECTION PROGRAM(PPP)-U.S. 3 SMALL BUSINESS ADMINISTRATION SMALL BUSINESS RELIEF GRANT-DAKOTA COUNTY 2 EMERGENCY ECONOMIC INJURY DISASTER LOAN �. 1 (EIDU—U.S.SMALL BUSINESS ADMINISTRATION 0 1 2 3 Interest In Traditional BR&E Question #21: A Traditional Business Retention & Expansion (BR&E) Program Which Consists Of A Different Online Business Assessment Survey And An In-Person Visit To Your Business Facility Was Going To Launch In March 202o But Has Been Put On Hold Due To COVID-1g. Once The Traditional BR&E Program Is Able To Launch After The COVID-1g Pandemic,Would Your Business Be Interested In Being A Participant? ■YES •UNSURE- PROVIDE OUTREACH WHEN • ' THE BR&E PROGRAM STARTS Release of Data Question #22: If The BR&E Team Finds An Issue In Any Of Your Survey Responses In Which A Certain Individual(City, County, Or State Staff)Or Group Of Individuals (Economic Development Authority, Small Business Association, Open To Business, Department Of Employment And Economic Development, etc.) May Be Able To Respond To Your Identified Concern In A Beneficial Way, Do You Authorize The BR&E Team To Release Your Survey Information To A Selected Resource? ■YES-MY CONTACT INFORMATION AND SURVEY ANSWERS PROVIDED CAN BE SHARED WITH AN APPROPRIATE RESOURCE WHICH MAY AID ME AND MY BUSINESS. ■NO-I WILL NEED TO MAKE DIRECT CONTACT TO POSSIBLE RESOURCES WHICH MAY AID ME AND MY BUSINESS. BR&E Fall 2020 Survey Results 6 of the 5o business responses came from businesses in physical exercise & wellness; art/entertainment/recreation; and the accommodation/food service sectors All individual business responses have been summarized together to provide overall results for each individual question in averages and percentages. No individual business identity will be released. Business Information Section Question #1: Business Contact Information 0 0 E 0 BUSINESS NAME ADDRESS OF WEBSITE PHONE NUMBER BUSINESS FACILITY ■ANSWER ■NO ANSWER Question #2: Business Official Filling Out the Survey NONE NAME JOB TITLE EMAIL PHONE NUMBER ■ANSWER General Information Section Question #3:Which of the following North American Industry Classification System (NAICS)categories best describes your business?(Select one answer) ACCOMODATION/FOOD SERVICE 3 ARTS/ENTERTAINMENT/RECREATION 1 OTHER SERVICES 1 NO RESPONSE GIVEN 1 0 1 2 3 "Other Services" Responses: Physical Health &Wellness "No Response Given": Belongs in the Accommodation/Food Service Question #4: Howl Long Has Your Business Been Operating in Farmington? 3 1 < 1 YEAR 6-10 YEARS MORE THAN 20 YEARS Operating Status Section Question #5: Did Your Business Suspend or Limit Business Operations as a Result of the COVID-sg Public Health Emergency? ■No ■YES-LIMITED/PARTIAL BUSINESS OPERATIONS ■YES-SUSPENDED ,lip BUSINESS OPERATIONS Question #6: If You Selected Yes(Limited/Partial Business Operations or Suspended Business Operations) in Question #5,What Is Your Current Business Operation Status? Yes - Suspended Business Operations Yes - Limited/Partial Business Operations Responses - r)o% 2 Responses - ■FULL BUSINESS OPERATIONS ■LIMITED/PARTIAL AVAILABLE BUSINESS OPERATIONS • ■ LIMITED/PARTIAL AVAILABLE BUSINESS 3 OPERATIONS 100% AVAILABLE Question #7: Does Your Business Have An Online or Virtual Sales/Services Component? ■YES ■ No Employment and Workforce Section Question #8: As of January 1, 2020, How Many Employees Were Working At This Business Facility In Farmington? 30 25 20 15 10 5 . 0 ■Full-Time ■Part-Time(Year-Round) Seasonal/Temporary Question #g: Has Your Employee Count Question #so: If Yes,What is the Workforce Changed Due to COVID-zg Specifically? Change? Business of 3 - ;)Terminated 'Contact was made with the business to clarify their survey response. They had 3 employees ■YES on January 1, 2020 (Question #8) and then ■No had significant employee hire between '•• January 1-March 2020 (13 employees).The employees recently hired were the ones terminated bringing their employee count back down to 3. Business of 8 - 1 New Hire, 2 Terminated Business of 21 - No Response Finance Question #11: How Has Your Business Revenue Changed Since COVID-19 Became A Widespread Concern in March 2020? Individual Answers Generalized Answers INCREASED BY MORE THAN 75% INCREASED BETWEEN 50%-75% INCREASED BETWEEN 25%-50% 00 -7 INCREASED BY LESS THAN 25% 2 No OBSERVED REVENUE CHANGE DECREASED BY LESS THAN 25% 1 DECREASED BETWEEN 25%-50% f 1 DECREASED BETWEEN 50%-75% 1 DECREASED BY MORE THAN 75% 1 1 ■DECREASE IN REVENUE 0 1 2 ■ INCREASE IN REVENUE Question #12: Based on Your Selected Answer to Question #11, Howl Many Employees Are At Risk of Unemployment At Your Business If Your Revenue Continues At This Rate? 0 EMPLOYEES 5 1-3 EMPLOYEES 1 0 1 2 3 4 5 Outlook Question #13 Are You Currently Considering Any Of The Following?Select All That Apply IMPROVING CURRENT BUSINESS FACILITY EXPANDING-AT THIS LOCATION MOVING CHANGING YOUR BUSINESS PLAN EXPANDING-ADDING ANOTHER LOCATION DOWNSIZING MERGING WITH OR ACQUIRING ANOTHER BUSINESS CLOSING PERMANENTLY SELLING NONE OF THE ABOVE 5 OTHER 1 0 1 2 3 4 5 Other(Please Specify); 1. Limited days/times of operations Question #14: Howl Has COVID-1g Affected Your Business? (Select ALL That Apply). CHANGE OF BUSINESS HOURS 5 ADDED EXPENSES TO MITIGATE PUBLIC SAFETY RISKS 4 LOSS OF REVENUE/SLOWER SALES/No SALES 4 TEMPORARY BUSINESS CLOSURE(VOLUNTARY/MANDATED) W 3 EMPLOYEE LOSS 3 CHANGE OF BUSINESS MODEL 3 CHANGE OF BUSINESS MODEL W 3 HAD TO MODIFY THE PRODUCTS AND SERVICES OFFERED 1 OFF-SITE WORKING OPTIONS FOR EMPLOYEES 1 ENHANCED SECONDARY MODE TO SELL AND DELIVER 1 ESTABLISHED ALTERNATIVE MODE TO SELL AND DELIVER 1 O 1 2 3 4 5 Question #15:At This Current Time,What Are You Most Concerned About?(Select All That Apply). MAKING PAYROLL THIS PAY PERIOD/BEYOND 4 LOSING WORK I.E.CLIENTS,SALES,PROJECTS) 3 CUSTOMER TRAFFIC Ir 3 PAYING THIS MONTHS RENT,MORTAGE,UTILTIES,ETC. 3 ACCESSING GOVERNMENT SUPPORT RELATING TO COVID W 2 GETTING INVENTORY/SUPPLIES 1 MY EMPLOYEES FINANCIAL WELFARE 1 LOSING EMPLOYEES 1 0 1 2 3 4 Question #16: What Was Your Outlook For Your Business Prior to COVID-1g Becoming a Widespread Concern in March 2020? Optimistic: s00% Very Optimistic Optimistic Moderately Optimistic Slightly Optimistic Slightly Pessimistic Pessimistic Moderately Pessimistic Very Pessimistic Unsure Question #17: What Is Your Outlook For Your Business Over The Next: One Month Six Months Optimistic: 66% Optimistic:49% Pessimistic: 34% Pessimistic: 34% Unsure: 17% 33% One Year Two - Five Years Optimistic: l00% Optimistic: l00% 33% 33% Business Assistance Question #18: Which Of The Following Types Of Assistance Would Be Helpful To Your Business? (Select All That Apply). INFORMATION ON FINANCIAL ASSISTANCE AVAILABLE FOR 4 MY BUSINESS OVER THE NEXT 90 DAYS PENALTY-FREE EXTENSIONS ON EXPENSES(RENT, UTILITIES,ETC.) 3 TECHICAL TRAINING FOR SOCIAL MEDIA,WEBSITE DEVELOPMENT,ETC. 2 INFORMATION ON BUSINESS SUCCESSION PLANNING 1 GUIDANCE ON HOW TO MODIFY MY BUSINESS MODEL 1 0 i 2 3 4 Question #1g: Have You Received Any Financial Assistance To Mitigate The Impacts of COVID-ig On Your Business? (E.g. PPP, Dakota County Small Business Relief Grant, City of Farmington Utility Fee Program,etc.) ■YES 4i : ■ No Question #20: If Yes,Which Program(s) Have You Received Funding From? PAYCHECK PROTECTION PROGRAM(PPP)-U.S. 4 SMALL BUSINESS ADMINISTRATION SMALL BUSINESS RELIEF GRANT- DAKOTA COUNTY 2 DCSBRP UTILITY 1 0 1 2 3 4 Interest In Traditional BR&E Question #21: A Traditional Business Retention & Expansion (BR&E) Program Which Consists Of A Different Online Business Assessment Survey And An In-Person Visit To Your Business Facility Was Going To Launch In March 2020 But Has Been Put On Hold Due To COVID-1g.Once The Traditional BR&E Program Is Able To Launch After The COVID-1g Pandemic,Would Your Business Be Interested In Being A Participant? 1 ■ YES ■UNSURE-PROVIDE OUTREACH WHEN THE BR&E PROGRAM STARTS ■N0 Release of Data Question #22: If The BR&E Team Finds An Issue In Any Of Your Survey Responses In Which A Certain Individual(City, County, Or State Staff)Or Group Of Individuals (Economic Development Authority, SmaLL Business Association, Open To Business, Department Of Employment And Economic Development, etc.) May Be Able To Respond To Your Identified Concern In A Beneficial Way, Do You Authorize The BR&E Team To Release Your Survey Information To A Selected Resource? ■YES- MY CONTACT INFORMATION AND SURVEY ANSWERS PROVIDED CAN BE SHARED WITH AN APPROPRIATE RESOURCE WHICH MAY AID ME AND MY BUSINESS. ■NO- I WILL NEED TO MAKE DIRECT CONTACT TO POSSIBLE RESOURCES WHICH MAY AID MF Amn MV RI I¢INF¢C CITY OF O Q 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 11/ O Farmington M N.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Financial Policy Discussion DATE: December 17, 2020 INTRODUCTION/DISCUSSION Encouraging the retention and expansion of existing businesses in the community is a core strategy of the EDA. Since COVI D-19 became a wide-spread public health emergency in March 2020, there has been an increased focus on business retention and commercial tax base preservation at the local, regional, and national level. Recently we have seen specific sectors of the economy targeted with mandated closures through executive orders from the state. This topic is to open up a policy discussion to see if the EDA is interested in an idea of offering sector specific financial stimulus grants to businesses at the local level at this time. Executive Order 20-99 is currently in effect and Governor Walz is expected to announce Wednesday, December 16, whether or not he will allow Executive Order 20-99 to expire or be extended. Executive Order 20-99 outlines how between November 20—December 18, 2020 specific businesses such as restaurants, bars, coffeehouses, gyms/fitness centers, dance centers, bowling alleys, etc. are prohibited to operate services whether indoors or outdoors on-site. These businesses are only allowed to provide off-site services. Approximately 25 or so Farmington businesses are impacted. While some of our impacted businesses have been able to offer off-site capabilities through delivery, window, drive-through, and walk-up services, many in the community have had to close during this time. A conversation was had with our City Attorney to discuss the legality of a body like our EDA to offer a direct stimulus grant to specific and identified sectors of our local economy. Direction was provided that the Emergency Response State Statute 12.37(1) allows a body like the EDA an ability to offer financial opportunities provided "victimization" can be demonstrated such as a mandated business closure through an executive order. If the EDA policy discussion results in the want to provide locally funded direct and targeted financial resources to businesses directly impacted by Executive Order 20-99, an EDA stimulus program can be administered and awarded within the first quarter of 2021. Offering a locally funded program wholly contained to local businesses provides an opportunity to have an application process with far fewer hurdles than the county, state, and federal CARES Act Programs.The excessive number of requirements for CARES Act Programs caused a lot of businesses to either not apply or they did not apply correctly in order to receive the funds. A goal of the program would be to provide a simple,fast-acting financial stimulus to specifically impacted businesses from state mandated Executive Order 20-99. Dollar amounts for the program/stimulus grants need to be included in the policy discussion if there is an appetite for this type of local assistance from the EDA. Additional questions to help with a policy discussion is: Is this type of policy move and program something the EDA is interested in pursuing? What does the EDA think would be a meaningful financial amount to theses pecific business sectors at this specific time? Is this type of local financial assistance something the EDA wants to pursue while additional financial programs and resources are currently being discussed or potentially delayed/gridlocked at the state and federal level? There is room in the EDA fund balance along with unused 2020 EDA program funds for a program at this time. Even if a local program only "saved" 2-3 businesses from closing their doors permanently at this time,the preservation of our commercial tax base would essentially allow for a larger program to pay for itself with their 2021 taxes. If the EDA has a desire for this type of policy move and program creation with an identified dollar amount,staff would be able to immediately start working on the final program details and a low-hurdle application with our City Attorney. The program and application would be rolled out to businesses in early January 2021,and all funds would be planned for award before the end of the first quarter 2021. ACTION REQUESTED The EDA needs to have a policy discussion as to whether or not a type of stimulus grant program is something they are interested in pursuing at this time. ATTACHMENTS: Type Description D Exhibit MN Executive Order 20-99 D Exhibit M N State Statute 12.37 STATE OF MINNESOTA Executive Department �rTHE Governor Tim Walz Emergency Executive Order 20-99 Implementing a Four Week Dial Back on Certain Activities to Slow the Spread of COVID-19 I, Tim Walz, Governor of Minnesota,by the authority vested in me by the Constitution and applicable statutes, issue the following Executive Order: The COVID-19 pandemic continues to present an unprecedented and rapidly evolving challenge to our State. Minnesota has taken extraordinary steps to prevent and respond to the pandemic. On March 13, 2020, I issued Executive Order 20-01 and declared a peacetime emergency because this pandemic, an act of nature, threatens the lives of Minnesotans, and local resources are inadequate to address the threat. Since declaring the peacetime emergency, I have extended it every 30 days, with the most recent extension occurring on November 12, 2020. Throughout the month of November, the data has made clear with each passing day that we need to take decisive and aggressive action to contain the most recent phase of the pandemic. Minnesota recently topped 240,000 total confirmed COVID-19 cases. It took Minnesota over 6 months to record 100,000 COVID-19 cases,but only 42 days to add an additional 100,000 new cases. We averaged a state record of over 6,000 cases per day over the previous week, and on November 14 we witnessed a record number of new cases (8,689). Today we mark another grim milestone, grieving the loss of 67 of our neighbors, the highest number of deaths in a single day. The Minnesota Department of Health's ("MDH") most recent weekly COVID-19 report found that the current average rate of new COVID-19 cases, hospitalizations and intensive care unit admissions, and deaths are the highest they have been since the start of the pandemic, far exceeding the numbers we saw in the worst points of our surges in April and May. Minnesota's rate of"community spread"—meaning those cases that MDH cannot link to another case or a source of exposure—is particularly concerning. At least one third of all new COVID-19 infections in Minnesota have no known source. According to metrics developed by the White House Coronavirus Task Force ("Task Force"), Minnesota is officially in the"Red Zone"—the most critical level of concern—for two main indicators of uncontrolled spread: test positivity rate and new COVID-19 cases. MDH reports that the statewide percentage of positive COVID-19 tests has been steadily rising for the last four weeks, exceeding the 10% "Red Zone"threshold 1 for the first time since early May. Further, the Task Force considers a state to be in the "Red Zone" for new cases when it reaches 100 cases per 100,000 residents over the course of a full week. Minnesota is currently averaging over 100 cases per 100,000 residents each day. These numbers tell a troubling story. The virus is everywhere, meaning that every interaction we have with people outside of our households poses a risk of transmission. When we cannot effectively trace infections due to community spread, we cannot keep COVID-19 out of our businesses, our schools, or the congregate care facilities that house our most vulnerable residents. For the benefit of our economy and all Minnesotans, we need to buckle down. I recently issued Executive Order 20-96, which placed limits on the social gatherings and establishments that posed the most serious concern according to MDH data. In the week since, MDH has confirmed over 30 additional outbreaks connected to the gatherings, bars, and restaurants that were encompassed by Executive Order 20-96. Unfortunately, these numbers, our statewide cases, hospitalization rates, and our levels of community spread demonstrate that a temporary dial back on in-person social activity and restrictions on certain businesses are necessary. Without question, these restrictions are significant and difficult,but this is not the"Stay-at- Home" Order that Minnesotans saw in March and April. As we noted in Executive Order 20-96, we have learned important lessons during this pandemic and must take thoughtful action when we can to prevent the worst projected outcomes. To effectively address a mounting healthcare crisis, we need to go beyond the measures taken in Executive Order 20-96. Accordingly, this Executive Order will also impact the entertainment venues, event spaces, and similar establishments that facilitate risky social interactions. In addition, as a former high school football coach, I recognize the positive health impacts and unique developmental and social benefits of sports. But the 192 outbreaks connected to sports are too concerning to let these activities continue during this dial back. Sports-related cases are nearly twice as prevalent among high school-age children as any other age group, and they increasingly play a key role in the need to move schools to distance learning. Gyms, fitness centers, and exercise studios also need to dial back their operations for similar reasons. The science shows us that exercise leads to higher levels of exertion and exhalation—often by individuals who are not wearing masks— greatly increasing the amount of airborne respiratory aerosol droplets that can carry COVID-19. Finally, MDH has traced over 16,000 cases to out-of-state travel since the outset of this pandemic. The Centers for Disease Control and Prevention("CDC")warns that travel increases our chances of getting and spreading COVID-19 and that avoiding travel is the best way for us to protect ourselves and others. Our nearest neighbors—North Dakota, South Dakota, Iowa, and Wisconsin—are experiencing some of the highest nationwide per capita increases in COVID-19 cases, and 48 states are now in the Task Force "Red Zone" for new COVID-19 cases. It is simply not a good time for out-of-state travel that is anything short of essential, so this Order clarifies my recommendation that Minnesotans refrain from unnecessary out-of-state travel for the next four weeks and self-quarantine upon their return if they do decide to travel. 2 MDH case numbers show that extending this dial back to certain settings and businesses is not necessary at this time. For example, we see relatively fewer outbreaks in retail settings, which generally involve brief, masked, transient interactions that pose lower transmission risk. According to the CDC, an individual is not considered a"close contact" of someone with COVID-19 unless they were within 6 feet of the individual for 15 or more minutes. These extended interactions can be limited in retail environments, and MDH will provide further guidance on how to do so. Similarly,professional athletes and collegiate athletic programs have developed strong protocols to protect their athletes, coaches, and staff, including regular testing and self-imposed restrictions when COVID-19 cases reach certain thresholds. Outbreaks and cases traced to personal care establishments have also been minimal since those establishments reopened. Personal care typically involves one-on-one interactions (as opposed to interactions with multiple persons) and healthcare-like precautions (like the requirement to wear a face shield over a face covering in many situations), reducing the need to restrict these settings during this dial back. Finally, outdoor recreation is an essential outlet for Minnesotans during these challenging times. We discovered in the early stages of our spring reopening that these activities can occur safely, so I encourage Minnesotans to continue to pursue outdoor recreation with members of their household and in compliance with guidance from Department of Natural Resources. In dialing back on social activities, in-person dining, sports, and fitness establishments, Minnesota joins an increasing number of states imposing similar measures, including California, Colorado, Illinois, Michigan,New Mexico, Oregon, Washington, and Vermont. Certain establishments and businesses can continue to offer goods and services in a safe manner in accordance with applicable guidance available at the Stay Safe Minnesota website (https://staysafe.mn. ov),but many will again have to weather the challenge of adjusting their operations to"to-go"or virtual means. In the near term, we know that this will be a hardship. In the long term, I hope that this significant step will prove beneficial to Minnesotans, our schools, and our economy, and safely bridge the gap to more permanent solutions to this pandemic. In Minnesota Statutes 2020, section 12.02, the Minnesota Legislature conferred upon the Governor emergency powers to "(1) ensure that preparations of this state will be adequate to deal with disasters, (2) generally protect the public peace, health, and safety, and(3)preserve the lives and property of the people of the state." Pursuant to Minnesota Statutes 2020, section 12.21, subdivision 1, the Governor has general authority to control the state's emergency management as well as carry out the provisions of Minnesota's Emergency Management Act. Minnesota Statutes 2020, section 12.2 1, subdivision 3(7), authorizes the Governor to cooperate with federal and state agencies in"matters pertaining to the emergency management of the state and nation." This includes "the direction or control of. . . the conduct of persons in the state, including entrance or exit from any stricken or threatened public place, occupancy of facilities, and . . . public meetings or gatherings."Pursuant to subdivision 3 of that same section, the Governor may"make, amend, and rescind the necessary orders and rules to carry out the provisions"of Minnesota Statutes 2020, Chapter 12. When approved by the Executive Council 3 and filed in the Office of the Secretary of State, such orders and rules have the force and effect of law during the peacetime emergency. Any inconsistent rules or ordinances of any agency or political subdivision of the state are suspended during the pendency of the emergency. For these reasons, I order as follows: 1. Executive Orders 20-74, 20-85, and 20-96 are rescinded as of Friday, November 20, 2020 at 11:59 pm. 2. Paragraphs 6 and 7 of this Executive Order are effective from Friday,November 20, 2020 at 11:59 pm through Friday, December 18, 2020 at 11:59 pm. 3. Masks and face coverings required. Executive Order 20-81, requiring face coverings in certain settings, remains in full force and effect. 4. At-risk persons.All persons currently living within the State of Minnesota who are at risk of severe illness from COVID-19, as defined by Executive Order 20-55, are strongly urged to stay at home or in their place of residence and follow the provisions of Executive Order 20-55. 5. Definitions. a. "Home," "homes,""residence," and"residences" are broadly defined to include mobile homes, hotels, motels, shared rental units, shelters, and similar facilities, to the extent they are used for lodging. b. "Worker" and"workers" are broadly defined to include owners,proprietors, employees, contractors, vendors, volunteers, and interns. c. "Business" and"businesses" are broadly defined to include entities that employ or engage workers, including private-sector entities, public-sector entities, non-profit entities, and state, county, and local governments. d. "Critical Businesses" are all businesses whose workers qualified for a Critical Sector exemption under paragraph 6 of Executive Order 20-48. e. "Non-Critical Businesses" are all businesses that are not Critical Businesses or Places of Public Accommodation. f. "Place of Public Accommodation"means a business, or an educational, refreshment, entertainment, recreation facility, or an institution of any kind, whether licensed or not, whose goods, services, facilities,privileges, advantages, or accommodations are extended, offered, sold, or otherwise made available to the public. This definition also includes those businesses, facilities, and institutions that offer or provide shared or communal goods, services, facilities,privileges, advantages, or accommodations to members of more than a single household, regardless of whether they are made available 4 to the public. Places of Public Accommodation include,but are not limited to, the businesses identified in paragraph 7.c of this Executive Order. g. "Establishments Providing Personal Care Services" are broadly defined to include tanning establishments, body art establishments, tattoo parlors, piercing parlors, businesses offering massage therapy or similar body work, spas, salons, nail salons, cosmetology salons, esthetician salons, advanced practice esthetician salons, eyelash salons, and barber shops. This includes, but is not limited to, all salons and shops licensed by the Minnesota Board of Cosmetologist Examiners and the Minnesota Board of Barber Examiners. h. "Organizers" are businesses or individuals who plan, organize, host, or disseminate information encouraging people to attend prohibited social gatherings. 6. Activities outside of the home. Mindful that we must continue to limit social interactions to protect public health, individual activities outside of the home are subject to the limitations and guidelines set forth below. These requirements may be clarified, as deemed necessary by the Governor, to ensure the health, safety, and security of all Minnesotans. Clarifications will be available for public review at the Stay Safe Minnesota website (https:Hstaysafe.mn.&ov). a. Social gatherings prohibited. Except as specifically permitted in this Executive Order, social gatherings are prohibited. Social gatherings are groups of individuals, who are not members of the same household, congregated together for a common or coordinated social, community, or leisure purpose—even if social distancing can be maintained. This prohibition includes indoor and outdoor gatherings, planned and spontaneous gatherings, and public and private gatherings. Organizers of prohibited social gatherings may be subject to appropriate enforcement action by city, county, and/or state authorities pursuant to paragraph 10 of this Executive Order. i. Activity by workers or customers. Prohibited social gatherings do not include activity by workers or customers of businesses permitted to remain open under this Executive Order, providing that those businesses follow the requirements and limitations set forth in this Executive Order. ii. Places of Public Accommodation permitted to be open. Prohibited social gatherings do not include persons in Places of Public Accommodation that are permitted to be open to members of the public under this Executive Order, provided that those Places of Public Accommodation follow the requirements and limitations set forth in this Executive Order. iii. Educational and care services for children and youth. Prohibited social gatherings do not include educational and care services for 5 children and youth, including child care, educational support services for distance and hybrid learners, and other educational services. Prohibited social gatherings do not include services in a personal home, such as family, friend, and neighbor care necessary for workers to continue to perform their duties. Individuals and programs providing educational support services must follow the applicable guidance available at the Stay Safe Minnesota website (https:Hstgysafe.mn.gov). iv. Care of others. Individuals may care for a family member, friend, or pet in another household, and may transport family members, friends, or pets, including the transport of children pursuant to existing parenting time schedules or other visitation schedules pertaining to a child in need of protective services (CHIPS) proceeding. v. Relocation to ensure safety.Nothing in this Executive Order should be construed to prevent individuals whose homes or residences are unsafe or become unsafe, including individuals who have suffered or are at risk of domestic violence or for whom the safety, sanitation, or essential operations of their home or residence cannot be maintained, from leaving their home or residence, or relocating to a safe alternative home or residence. vi. Health and safety activities.Nothing in this Executive Order should be construed to prevent individuals from seeking emergency services; obtaining medical services, supplies, or medications; donating blood; or visiting a healthcare or dental professional or facility, or a veterinarian. vii. Sobriety and mental health support groups. Prohibited social gatherings do not include sobriety or other mental health support groups. Remote meetings are encouraged whenever possible. When remote meetings are not possible, smaller meetings of shorter duration are encouraged. Any in-person meetings must comply with applicable public health guidance, including relevant MDH guidance. viii. Health care and residential facilities. Prohibited social gatherings do not include gatherings of persons in health care facilities, long-term care facilities, residential treatment facilities, residential and in-home programs licensed by the Minnesota Department of Human Services, correctional facilities,juvenile justice facilities, and shelters or drop-in centers. These facilities and settings must continue to follow applicable state and federal guidance, including guidance related to visitation. In-person visitation may not be possible under that guidance, and individuals are strongly encouraged to visit with loved ones virtually. 6 ix. Displacement. Individuals without a home are exempt from the restrictions on gatherings in this Executive Order, but they are strongly encouraged to avoid gatherings whenever possible. Executive Order 20-55, which includes provisions related to encampments, remains in full force and effect. x. Moving or relocation. Individuals are permitted to move to a new home or place of residence, provided that they follow MDH and CDC guidelines to the maximum extent possible. xi. Legislative and other governmental meetings. The limits on gatherings in this Executive Order do not apply to legislative and other governmental meetings. Remote meetings are strongly encouraged whenever possible as permitted by state or local authority. xii. The Judicial Branch. The limits on gatherings in this Executive Order do not apply to proceedings held by the Minnesota Judicial Branch. Proceedings held by the Judicial Branch are subject to the policies established by the chief justice and will occur as directed by court order. Individuals may appear as directed by a Minnesota state court, including to serve as a juror, appear as a party, as a witness, or as legal counsel on behalf of a party, or otherwise to comply as directed by a court order, subpoena, or summons. xiii. Federal activities. Nothing in this Executive Order will be construed to limit,prohibit, or restrict in any way the operations of the federal government or the movement of federal officials in Minnesota while acting in their official capacity, including federal judicial, legislative, and executive staff and personnel. xiv. Drive-in gatherings. To enable safe congregation of people, drive-in gatherings are permitted, provided that all participants remain within their own vehicles and follow the applicable guidance available at the Stay Safe Minnesota website (https://stqysafe.mn.gov). xv. Weddings, funerals, and services. Places of worship, funeral homes, and other venues that offer gathering space for wedding ceremonies, funeral services, or other planned services such as worship, rituals, prayer meetings, or scripture studies are strongly encouraged to offer virtual alternatives to the maximum extent possible. Places of worship, funeral homes, and other venues that offer gathering space for wedding services, funeral services, or other planned services such as worship, rituals, prayer meetings, or scripture studies, may host such wedding ceremonies, funeral services, or other services, provided that they adhere to the following requirements: 7 A. In all settings, ensure a minimum of 6 feet of physical distancing between households. B. In indoor settings, occupancy must not exceed 50 percent of the normal occupant capacity as determined by the fire marshal, with a maximum of 250 people in a single self- contained space. C. In outdoor settings, gatherings must not exceed 250 individuals. D. Develop and implement a COVID-19 Preparedness Plan in accordance with applicable guidance available at the Stay Safe Minnesota website (https://staysafe.mn.goy). xvi. Celebrations and receptions. Individuals, venues, and businesses must not host celebrations, receptions, private parties, or other social gatherings, including but not limited to those connected to weddings, funerals, life milestones (such as birthdays or retirements), family reunions,planned religious services, and other similar occasions. b. Outdoor recreational activity. Individuals must not engage in outdoor recreational activities where they will come into close proximity with others from different households. Individuals may engage in the activities listed below,provided that they follow the Minnesota Department of Natural Resources ("DNR") and MDH guidelines on outdoor recreation and guidelines for facilities and the public ("Outdoor Recreation Guidelines"), available at DNR's COVID-19 website (hLtps://www.dnr.state.mn.us/covid- 19.htm1): i. Individuals may engage in any outdoor activity that is dependent upon or derives its principal benefit from natural surroundings and open space, including but not limited to hunting, fishing, trapping, boating, hiking, biking, golfing, picnicking, skiing, skating, and snowshoeing for the purposes of pleasure, rest, exercise, or relaxation, provided that the activity can be engaged in accordance with the Outdoor Recreation Guidelines, including maintaining at least six feet of separation between participants from different households. Groups within a single household may engage in outdoor activities or sports that do not allow for social distancing (e.g., soccer or basketball)but must not engage in such activities with members of other households. ii. Outdoor recreational activities allowed by this Executive Order do not include performances, competitions, team events, tournaments,races, rallies, organized sports, organized group classes, spectator events, fairs, or any other events that involve the gathering of individuals from 8 more than one household. This paragraph does not impact professional or intercollegiate sports activities permitted under paragraph 7.h.ii. iii. All persons participating in outdoor recreational activities under this Executive Order must follow the Outdoor Recreation Guidelines available at DNR's COVID-19 website (https://www.dnr.state.mn.us/covid-I 9.html). iv. Nothing in this paragraph permits trespass upon private property, and all activities undertaken pursuant to this paragraph must be undertaken in accordance with Minnesota law, including but not limited to license and permit requirements, invasive species regulations, and park rules. Nothing in this paragraph should be construed to abrogate existing local authority to limit or restrict activities or close facilities. c. Voting. Individuals are permitted and encouraged to vote in all state and local elections. Voters are also encouraged to vote by mail using an absentee ballot where feasible. Additional information is available at the Secretary of State's website (https://www.sos.state.mn.us/election-administration- campaigns/elections-calendar/2020-elections-and-covid-19 . d. Unnecessary travel strongly discouraged. Consistent with federal guidance and to protect our neighbors, Minnesotans are encouraged to stay close to home and are strongly discouraged from engaging in unnecessary travel, particularly to other states or countries. e. Travel advisory. Persons arriving in Minnesota from other states or countries, including returning Minnesota residents, are strongly encouraged to practice self-quarantine for 14 days after arrival by limiting their interactions to their immediate household. This recommendation does not apply to individuals who must cross state or country borders for work, study, medical care, or personal safety and security. Students returning home for school breaks are strongly encouraged to follow the recommendations available at MDH's Institutes of Higher Education website (https://www.health.state.mn.us/diseases/coronavirus/schools/ihe.html). f. Guidelines. Individuals engaging in activities outside of the home must follow the requirements of this Executive Order, Executive Order 20-81 (face coverings), and MDH and CDC Guidelines. Individuals engaging in outdoor recreational activities must follow the Outdoor Recreation Guidelines available at DNR's COVID-19 website (https://www.dnr.state.mn.us/covid- 19.html). g. Tribal activities and lands. i. Activities by tribal members within the boundaries of their tribal reservations are exempt from the restrictions in this Executive Order but may be subject to restrictions by tribal authorities. 9 ii. Activities within the boundaries of federal land held in trust for one of the 11 Minnesota Tribal Nations are exempt from the restrictions in this Executive Order but may be subject to restrictions by tribal authorities. iii. Activities by tribal members to exercise their federal treaty rights within the boundaries of their treaty territory(also known as "ceded territory") are exempt from the restrictions in this Executive Order but may be subject to restrictions by applicable tribal authorities. iv. Tribal members may travel to and from their tribal reservations in accordance with applicable tribal law. 7. Workers and businesses. Workers and businesses are subject to the requirements set forth below. These requirements may be clarified, as deemed necessary by the Governor, to ensure the health, safety, and security of all Minnesotans. Clarifications will be available for public review at the State's COVID-19 website (hqps://mn.gov/covidl9 . a. Continue to work from home whenever possible.Any worker who can work from home must do so. b. Safe work. The protections noted in Executive Order 20-54 (Protecting Workers from Unsafe Working Conditions and Retaliation)remain in full force and effect. All work must be conducted in a manner that adheres to Minnesota OSHA Standards and MDH and CDC Guidelines, including social distancing and hygiene practices. Under existing law and authority, DLI may issue citations, civil penalties, or closure orders to places of employment with unsafe or unhealthy conditions, and DLI may penalize businesses that retaliate against employees who raise safety and health concerns. c. Places of Public Accommodation. Places of Public Accommodation are subject to the following requirements and limitations: i. All Places of Public Accommodation open under this Executive Order must adhere to the requirements set forth in paragraph 7.d of this order, including development and implementation of a COVID-19 Preparedness Plan in accordance with applicable guidance available at the Stay Safe Minnesota website (https://stgysafe.mn.gov). ii. For the purposes of this Executive Order, the following establishments and facilities are not Places of Public Accommodation: A. Establishments and facilities that offer food and beverage not for on-premises consumption, including grocery stores, markets, convenience stores, pharmacies, drug stores, and food pantries, other than those portions of the Place of Public 10 Accommodation otherwise subject to the requirements of this paragraph 7.c. B. Health care facilities, child care facilities, residential care facilities, congregate care facilities, correctional facilities, and juvenile justice facilities. C. Crisis shelters, soup kitchens, or similar institutions. D. Restaurants and food courts inside the secured zones of airports. iii. Certain Places of Public Accommodation Closed to Members of the Public. The following Places of Public Accommodation are closed to members of the public as set forth below. "Members of the public" means people who are not workers affiliated with the Place of Public Accommodation. A. Restaurants, food courts, cafes, coffeehouses, bars, taverns, breweries, microbreweries, distilleries,brewer taprooms, micro distiller cocktail rooms, tasting rooms, wineries, cideries, clubhouses, dining clubs, tobacco product shops, hookah bars, cigar bars, vaping lounges, and other Places of Public Accommodation offering food, beverages (including alcoholic beverages), or tobacco products for on-premises consumption are closed to ingress, egress,use, and occupancy by members of the public, except as set forth below. 1. The above establishments may, and are encouraged to, offer food and beverage using delivery services, window service, walk-up service, drive-through service, or drive-up service. In offering food or beverage service under this paragraph, a Place of Public Accommodation may permit up to five members of the public at one time in the place of public accommodation for the purpose of picking up their food or beverage orders. All such establishments must follow the requirements for all businesses set forth below and industry-specific guidance available on the Stay Safe Minnesota website (https://staysafe.mn. og_v). 2. Because indoor dine-in service is prohibited at restaurants, for the purposes of Minnesota Laws 2020, Chapter 75, Limited Off-Sale for Restaurants Closed by Executive Order, nothing in this Executive Order constitutes,prescribes, or should be deemed as, the expiration, termination, or rescission of the closure of 11 restaurants as set forth in Executive Order 20-04, as modified and extended by Executive Orders 20-18 and 20-33, or any subsequent order. As set forth in Minnesota Laws 2020, Chapter 75, limited off-sale of alcoholic beverages is authorized only for take-out service with a prepared take-out food order, and delivery is not authorized. B. Public pools, as defined in Minnesota Statutes 2020, Section 144.1222, subdivision 4(d), are closed to ingress, egress,use, and occupancy. C. Gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor climbing facilities, trampoline parks, indoor and outdoor exercise facilities, martial arts facilities, and dance and exercise studios are closed to ingress, egress,use, and occupancy by members of the public. This includes shared or communal facilities serving more than a single household, regardless of whether such facilities are open to the public, including but not limited to those facilities located in an apartment building, condominium, or housing complex. Outdoor sports and recreation facilities may be open to members of the public only as permitted under paragraph 7.c.iv. These establishments may, and are encouraged to,use their facilities to provide virtual or remote programming. These establishments may also remain open to exclusively provide services permitted under paragraphs 7.e and 7.f. D. Venues providing indoor events and entertainment such as theaters, cinemas, concert halls, festivals, fairs,vendor fairs, museums, performance venues, stadiums, arcades, and bowling alleys are closed to ingress, egress, use, and occupancy by members of the public. Such establishments may, and are encouraged to, use their facilities to provide virtual or remote programming. E. Venues providing outdoor events and entertainment such as racetracks, paintball, go-karts, mini-golf, performance venues, festivals, fairs, vendor fairs, and amusement parks are closed to ingress, egress,use, and occupancy by members of the public. Such venues may offer"drive-in" or"drive-through" experiences, provided that all participants remain within their own vehicles and follow the applicable guidance available at the Stay Safe Minnesota website (https:Hstgysafe.mn. og_v). F. For professional and intercollegiate athletes and teams authorized to practice and compete under paragraph 7.h.ii.B 12 and C, this closure of event and entertainment venues to members of the public means that only athletes, coaches, and other essential staff are authorized to be present in venues hosting these activities. Spectators, including family and friends of participants and staff, are not permitted to attend permitted sporting events or practices. iv. Outdoor recreational facilities. The below facilities are permitted to be open and do business, provided that they adhere to paragraphs 6 and 7 of this Executive Order and the Outdoor Recreation Guidelines available at the Stay Safe Minnesota website (https:Hstaysafe.mn.gov). Businesses and Places of Public Accommodation associated with outdoor recreational facilities must comply with paragraphs 6 and 7 of this Executive Order, as applicable, including closure to members of the public pursuant to paragraph 7.c. I encourage public outdoor recreational facilities to be open for all Minnesotans, including families and children, and direct all individuals utilizing such facilities to follow the Outdoor Recreation Guidelines. All outdoor recreational activities and facilities must also comply with Minnesota law, including but not limited to license and permit requirements, invasive species regulations, and park rules. A. Minnesota State Parks, Trails, State Forests, State Recreation Areas, Wildlife Management Areas, Scientific and Natural Areas, and other State managed recreational lands. B. Locally, regionally,publicly, and privately managed outdoor parks, trails, arboretums, and gardens. C. State, regional, or local public water accesses. D. Public and private marinas and docks that provide storage, docking, and mooring services to slip owners, seasonal renters, and the general public, as well as facilities that provide safety- related services including fueling, emergency dockage, and sanitary pump-out stations. E. Public and private golf courses and outdoor driving ranges. F. Ski areas,Nordic trails, snow tubing hills, sledding hills, and outdoor skating rinks. G. Lake service providers to install, repair, and remove docks, boatlifts, and other water related equipment or deliver boats. H. Outdoor shooting ranges and game farms. 13 I. Outdoor recreational equipment rental outlets. Equipment may be rented but only if the equipment can be effectively sanitized between uses. Such outlets must implement clear check-in and check-out procedures that minimize contact between customers and workers. Any rentals must be conducted in accordance with the Outdoor Recreation Guidelines. J. Dispersed and remote camping sites in accordance with the Outdoor Recreation Guidelines. A dispersed campsite is a single campsite, not in a developed campground, used for overnight camping. A remote campsite is a designated backpack or watercraft campsite, not in a developed campground, used for overnight camping. K. Public and private campgrounds that have adopted a COVID- 19 Preparedness Plan in accordance with the Guidance for Campgrounds website (https://www.dnr.state.mn.us/aboutdnr/safely-opening-outdoor- recreation.html). L. Charter boats and launches that have adopted a COVID-19 Preparedness Plan in accordance with Guidance for Charter and Launch Boats website (https://www.dnr.state.mn.us/aboutdnr/safelyopenin -outdoor- recreation.html). M. Guided and instructional activities such as guided fishing or birding that do not require gatherings prohibited by paragraph 6.c, adhere to social distancing requirements, involve persons from the same household, and are conducted in accordance with the Outdoor Recreation Guidelines. This paragraph does not apply to activities covered by paragraphs 7.c.vii or 71 N. Any other outdoor recreation activities and facilities that may be designated in the Outdoor Recreation Guidelines. v. Barbershops, salons, and other Establishments Providing Personal Care Services may remain open. Occupancy must not exceed 50 percent of the normal occupant capacity as determined by the fire marshal, with a maximum of 250 people in a single self-contained space. Workers, customers, and clients must follow all requirements, including face-covering requirements, as set forth in the applicable guidance available at the Stay Safe Minnesota website (https://stgysafe.mn.gov). 14 vi. This Executive Order does not prohibit a worker or supplier of a Place of Public Accommodation from entering, exiting, using, or occupying that Place of Public Accommodation in their professional capacity. vii. Places of Public Accommodation not within the categories set forth in paragraph 7.c.iii may be open to members of the public, provided that they follow the requirements for all businesses set forth below and any applicable industry-specific guidance available on the Stay Safe Minnesota website (https:Hstaysafe.mn.gov). d. Requirements for all businesses. Since June 29, 2020, all businesses in Minnesota(whether Critical or Non-Critical)have been required to have a COVID-19 Preparedness Plan("Plan") and implement that plan. All businesses must continue to follow the same requirements. Each Plan must provide for the business's implementation of guidance for their specific industry or, if there is no specific guidance, general guidance for all businesses, as well as Minnesota OSHA Standards and MDH and CDC Guidelines in their workplaces. These requirements are set forth in guidance ("Plan Guidance") available on the Stay Safe Minnesota website (https://staysafe.mn.g_ov). i. Required Plan content.As set forth in the Plan Guidance, at a minimum, each Plan must adequately address the following areas: A. Require work from home whenever possible.All Plans must ensure that all workers who can work from home continue to do so. B. Ensure that sick workers stay home. All Plans must establish policies and procedures, including health screenings, that prevent sick workers from entering the workplace. C. Social distancing. All Plans must establish social distancing policies and procedures. D. Worker hygiene and source control. All Plans must establish hygiene and source control policies for workers. E. Cleaning, disinfection, and ventilation protocols.All Plans must establish cleaning, disinfection, and ventilation protocols for areas within the workplace. ii. Customer facing businesses.All businesses that are customer facing (i.e.,businesses that have in-person customer interactions) must include additional Plan provisions to keep the public and workers safe as set forth in the applicable guidance available on the Stay Safe Minnesota website(https:HstUsafe.mn.gov). This includes requirements that workers and customers must maintain physical 15 distancing of 6 feet and that store occupancy must not exceed limits set forth in the guidance. In customer facing businesses that share common areas, such as malls, all Plans must similarly include a facility occupancy that must not exceed the limits set forth in the guidance and provide an enhanced sanitizing, cleaning, and disinfecting regimen consistent with Minnesota OSHA Standards and MDH and CDC Guidelines for those common areas. All Plans must also include signage in common areas to discourage congregating. iii. Household services businesses. All businesses that provide household services (e.g., housecleaning, maid services, and piano tuners)must also develop Plan provisions intended to keep customers and workers safe as set forth in the applicable guidance available on the Stay Safe Minnesota website (https://staysafe.mn.gov). iv. Optional template. A template COVID-19 Preparedness Plan, which covers the above requirements, is available as part of the Plan Guidance, available on the Stay Safe Minnesota website (http s://stay s afe.nm.goy). v. Certification and signature. Senior management responsible for implementing the Plan must sign and certify the Plan, affirming their commitment to implement and follow the Plan. vi. Dissemination and posting. Each business must provide its Plan, in writing, to all workers, and the Plan must be posted at all of the business's workplaces in locations that will allow for the Plan to be readily reviewed by all workers. Where physical posting is impracticable, the Plan can be posted electronically, provided that the Plan is received by all workers and remains available for their review. vii. Training. Each business must ensure that training is provided to workers on the contents of its Plan and required procedures, so that all workers understand and are able to perform the precautions necessary to protect themselves and their co-workers. This training should be easy to understand and available in the appropriate language and literacy level for all workers. Businesses should also take steps to supervise workers and ensure that workers understand and adhere to necessary precautions to prevent COVID-19 transmission. Documentation demonstrating compliance with this training requirement must be maintained and made available to regulatory authorities and public safety officers, including DLI, upon request. viii. Compliance.Workers and management must work together to ensure compliance with the Plan, implement all protocols,policies, and procedures, and create a safe and healthy work environment. 16 ix. Exposure notification protocol. As set forth in the general industry guidance available on the Stay Safe Minnesota website (https://stgysafe.mn.gov),businesses must establish a protocol for identifying and communicating with workers who may have been exposed to a person with COVID-19 symptoms or who has tested positive for COVID-19 while at work. x. Availability to regulatory authorities and public safety officers. Businesses do not need to submit their Plans for preapproval. Upon request,businesses must make their Plans available to regulatory authorities and public safety officers, including DLI, MDH, the Minnesota Attorney General's Office, and city and county attorneys. xi. In the event of a complaint or dispute related to a business's Plan, DLI is authorized to determine whether the Plan adequately implements the applicable guidance, Minnesota OSHA Standards and MDH and CDC Guidelines in its workplaces. e. Child care.Licensed child care providers, including child care centers, certified child care centers, family and group day care homes, and license exempt child care, may continue to operate and serve families. Child care providers continuing to operate must do so in accordance with the following requirements: i. Child care providers other than family, friends, or neighbors providing license exempt care to children from only one household must adhere to the requirements set forth in paragraph 7.d of this Executive Order, including development and implementation of a COVID-19 Preparedness Plan in accordance with applicable guidance for schools and child care available on the Stay Safe Minnesota website (https:Hstaysafe.mn.go . ii. Child care providers must comply with any public restrictions implemented by the manager or owner of property or facilities used by the program, including any restrictions set by schools or school districts on use of their facilities. f. Youth Programs.Youth programs that provide care or supervision of children can continue to operate if they can do so safely in accordance with the COVID-19 Prevention Guidance for Youth and Student Programs available on the Stay Safe Minnesota website (https:Hstaysafemn.gov/). i. "Youth Programs"means programs providing care or enrichment to children or adolescents that require registration and have on-site supervision. This includes certified child care centers, youth enrichment programs, programs exempt from licensure, community education classes, community center based programs, school age care 17 programs operated by public and private schools, parks and recreation programs, art programs, and day camps (but not overnight camps). "Youth Programs"does not include: A. Licensed child care facilities or school-district summer learning programs; or B. Organized Youth Sports organizations and programs, described in paragraph 7.g, unless the primary purpose of the program is to provide care or supervision to children or youth, and not provide sports instruction or competition. ii. Youth Programs must adhere to the requirements set forth in paragraph 7.d of this Executive Order, including development and implementation of a COVID-19 Preparedness Plan in accordance with guidance for youth and student programs available on the Stay Safe Minnesota website (https:Hstaysafemn.govn. COVID-19 Preparedness Plans must be distributed, available for review, and followed by participants and their parents or guardians. iii. Youth Programs must comply with any public health restrictions implemented by the manager or owner of property or facilities used by the program, including any restrictions set by schools or school districts on the use of their facilities. g. Organized Youth Sports. Organized Youth Sports organizations and programs must stop all in-person activities—including practices, group workouts, games, and tournaments. i. "Organized Youth Sports"means any sports activity, where participants are children or adolescents, organized by an entity, association, club, or organization providing for registration of participants and oversight on a regular basis for a defined period of time. Sports activities within this definition include all sports offered by schools (public and nonpublic), the Minnesota State High School League, or similar organizations, as well as dance, cheerleading, and other sports traditionally offered by supplemental associations or organizations. ii. The requirement in this paragraph, 7.g, that Organized Youth Sports organizations and programs stop in-person activities does not apply to: A. Child care providers and Youth Programs as set forth in paragraphs 7.e and 7.f that have as their primary purpose to provide care and supervision to children or youth. B. Physical education instruction that meets academic requirements as part of the school day. 18 C. Participation in outdoor recreational activities or sports by an individual or individuals within a single household as allowed by paragraph 6.b. h. Organized Adult Sports. Organized Adult Sports organizations and programs must stop all in-person activitiesincluding practices, group workouts, games, and tournaments. i. "Organized Adult Sports"means any sports activity, where participants are adults, organized by an entity, association, club, or organization providing for registration of participants and oversight on a regular basis for a defined period of time. ii. The requirement in this paragraph, 7.h, that Organized Adult Sports stop in-person activities does not apply to: A. Participation in outdoor recreational activities or sports by an individual or individuals within a single household as allowed by paragraph 6.b of this Executive Order. B. Professional sports, meaning sports in which the athletes receive non-de minimis payment for performance. C. Any collegiate or university institution team or athlete participating in intercollegiate athletics, provided that the team or athlete follows guidance for sports activities as listed in Recommendations for Different Levels of COVID-19 Transmission Among Higher Education Institutions, available at MDH's Institutes of Higher Education website (https://www.health.state.mn.us/diseases/coronavirus/schools/ihe. html). i. Higher education institutions. Higher education institutions, in consultation with their governing boards, may offer in-person classes or activities consistent with MDH guidelines for offering in-person or on-site activities and programming at higher education institutions. Higher education institutions must follow guidelines available at MDH's Institutes of Higher Education website (https://www.health.state.mn.us/diseases/coronavirus/schools/ihe.html). This includes following parameters set forth in Recommendations for Different Levels of COVID-19 Transmission Among Higher Education Institutions, available at MDH's Institutes of Higher Education website. Education and training programs not registered or licensed with OHE or part of the Minnesota State Colleges and Universities or University of Minnesota systems must follow the guidance provided by the state agency or governing board under which they are authorized to operate. In the absence of an 19 applicable state agency or governing board, higher education institutions must follow MDH guidelines. i. Higher education definitions. For the purposes of paragraph 7.i of this Executive Order: A. "Higher education institution"means the Minnesota State Colleges and Universities, the University of Minnesota,private colleges and universities and all other post-secondary institutions, including but not limited to institutions licensed and registered with the OHE,with a physical campus in the State. B. "Staff and instructors"means all employees, contractors, and volunteers of a higher education institution, including but not limited to janitorial and cleaning professionals, secretarial and administrative professionals, instructors, instructor assistants, researchers, research assistants, graduate assistants, faculty, and administrators. C. "Students"means any person enrolled at a higher education institution. D. "Activities" includes, but is not limited to, testing, short-term training programs, student services, advising, clinical rotations or placements, customized training, internships, campus visits, programs, credit and non-credit classes, and all research activities and functions. ii. Requirements for higher education institutions. Higher education institutions must continue to establish and implement a higher education institution COVID-19 Preparedness Plan("Higher Ed Plan"). Each Higher Ed Plan must provide for implementation of Minnesota OSHA Standards and MDH and CDC Guidelines in classrooms, labs, or other areas that students and staff may visit. Such requirements, which are adaptable to higher education institutions, are set forth in the general guidance available at the Stay Safe Minnesota website (https:Hstaysafe.nm.goy) and other applicable guidelines. A. Required Higher Ed Plan content.At a minimum, each Higher Ed Plan must adequately address the following areas: 1. Follow OHE and MDH guidance.All in-person activities must be subject to limitations set forth in relevant OHE and MDH guidance. 2. Ensure that sick students and institution staff and instructors stay home. Each Higher Ed Plan must 20 establish policies and procedures, including health screenings, that prevent sick students or institution staff and instructors from entering the institution for in- person or on-site activities. 3. Require social distancing and face-coverings. Each Higher Ed Plan must implement social distancing policies and procedures set forth by the CDC and MDH. Higher Ed Plans must also include signage in common areas to discourage gathering. Each Higher Ed Plan must ensure compliance with the applicable face- covering requirements set forth in Executive Order 20- 81. 4. Implement cleaning and disinfection protocols. Each Higher Ed Plan must establish cleaning and disinfection protocols for areas within the institution where students, staff, and instructors may visit and provide an enhanced sanitizing, cleaning, and disinfecting regimen consistent with Minnesota OSHA Standards and MDH and CDC Guidelines for common areas. B. Certification and signature. Institutional leadership responsible for implementing the Higher Ed Plan must sign and certify such Higher Ed Plan, affirming their commitment to implement and follow the Higher Ed Plan. C. Dissemination and posting.A higher education institution must make its Higher Ed Plan available according to applicable guidance. D. Training. Higher education institutions must ensure that staff and instructors are trained on the contents of their Higher Ed Plan according to applicable guidance. 8. Respect for workers. Minnesotans must respect the efforts of employers and businesses to protect the safety of their workers and customers by complying with those businesses' social distancing and hygiene instructions. Employers and businesses must post social distancing and hygiene instructions at entrances and in locations that can be easily seen by customers and visitors. 9. Enhanced local measures permitted.Nothing in this Executive Order or previous Executive Orders should be construed to prohibit or prevent political subdivisions from implementing, within their jurisdictions and pursuant to applicable law and authority, restrictions beyond the restrictions contained in this Executive Order, as long as those additional restrictions have a real or substantial relation to the public health crisis caused by COVID-19. Pursuant to Minnesota Statutes 2020, section 21 12.32, political subdivisions may not relax or reduce this Executive Order's restrictions. In other words, to the extent that they have authority to do so, cities and other political subdivisions may take actions that are more protective of the public health but may not take actions that are less protective of the public health. 10. Enforcement. I urge all Minnesotans to voluntarily comply with this Executive Order. Pursuant to Minnesota Statutes 2020, section 12.45, an individual who willfully violates this Executive Order is guilty of a misdemeanor and upon conviction must be punished by a fine not to exceed$1,000 or by imprisonment for not more than 90 days. Any business owner, manager, or supervisor who requires or encourages any of their employees, contractors, vendors, volunteers, or interns to violate this Executive Order is guilty of a gross misdemeanor and upon conviction must be punished by a fine not to exceed $3,000 or by imprisonment for not more than a year. In addition to those criminal penalties, the Attorney General, as well as city and county attorneys, may investigate and seek any civil relief available pursuant to Minnesota Statutes 2020, section 8.3 1, for violations or threatened violations of this Executive Order, including but not limited to injunctive relief, civil penalties in an amount to be determined by the court,up to $25,000 per occurrence, costs of investigation and reasonable attorney's fees and costs, and other equitable relief as determined by the court in accordance with section 8.31. State and local licensing and regulatory entities that inspect businesses for compliance with rules and codes to protect the public are encouraged to assess regulated businesses' compliance with this Executive Order and use existing enforcement tools to bring businesses into compliance. Nothing in this Executive Order is intended to encourage or allow law enforcement to transgress individual constitutional rights Pursuant to Minnesota Statutes 2020, section 4.035, subdivision 2, and section 12.32, this Executive Order is effective immediately upon approval by the Executive Council. It remains in effect until the peacetime emergency declared in Executive Order 20-01 is terminated or until it is rescinded by proper authority. A determination that any provision of this Executive Order is invalid will not affect the enforceability of any other provision of this Executive Order. Rather, the invalid provision will be modified to the extent necessary so that it is enforceable. Signed on November 18, 2020. _,. .w/4000- Tim Walz Governor 22 Filed According to Law: P)�C� (PA��� Steve Simon Secretary of State Approved by the Executive Council on November 19, 2020: Alice Roberts-Davis Secretary, Executive Council Filed on November 19, 2020 Office of the Minnesota Secretary of State, 23 Steve Simon 1 MINNESOTA STATUTES 2020 12.37 12.37 POLITICAL SUBDIVISION'S POWERS TO FAST PROVIDE EMERGENCY AID. During an emergency or disaster, each political subdivision, notwithstanding any statutory or charter provision to the contrary, and through its governing body acting within or without the corporate limits of the political subdivision,may: (1) enter into contracts and incur obligations necessary to combat the disaster by protecting the health and safety of persons and property and by providing emergency assistance to the victims of the disaster;and (2) exercise the powers vested by this subdivision in the light of the exigencies of the disaster without compliance with time-consuming procedures and formalities prescribed by law pertaining to: (i)the performance of public work; (ii) entering into contracts; (iii)incurring of obligations; (iv) employment of temporary workers; (v)rental of equipment; (vi)purchase of supplies and materials; (vii) limitations upon tax levies; and (viii)the appropriation and expenditure of public funds, for example,but not limited to,publication of ordinances and resolutions,publication of calls for bids,provisions of civil service laws and rules,provisions relating to low bids, and requirements for budgets. History: 1951 c 694 s 307; 1957 c 171 s 1; 1996 c 344 s 26; 1999 c 250 art 2 s 2; 2003 c 2 art 1 s 2 Official Publication of the State of Minnesota Revisor of Statutes CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ■uv O Farmington M N.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: 2021 CDBG Allocation Recommendation DATE: December 17, 2020 INTRODUCTION/DISCUSSION Annually,the city receives federal Community Development Block Grant(CDBG) funds which are distributed by the Dakota County CDA. The City was informed by the Dakota County Community Development Agency(CDA) on Thursday, November 20th that our estimated allocation for Program Year 2021 (July 1, 2021—June 30, 2022) is $38,289. 1 n 2019 we received $38,897 in Community Development Block Grant(CDBG)funds. To secure the grant money that is available,the city must prepare and submit an application that specifies eligible activities or projects to which the city intends to allocate the available funding. A completed application is due in January accompanied by an approved City Council resolution. The final allocation amount may change as H UD finalizes their budget process over the next several months. DISCUSSION Proposed Activities City staff is proposing that the estimated $38,000 be allocated between two activities for 2021 which are the same as approved in 2020: $33,000 for the Residential Rehabilitation/Home Improvement Loan Program $5,000 to Senior Services—Financial Support Program. Home Improvement Loan Program The Home Improvement Loan Program is a program administered by the CDA to benefit low/moderate income households in Farmington making eligible improvements to their homes. This program was funded last year and grants us the maximum opportunity to benefit a wide audience in Farmington and meet HUD's spenddown requirements in a timely manner. Some program details include: The Home Improvement Loan Program assists low-and moderate-income homeowners with making repairs and improvements to their homes. Home Improvement Loans are commonly used for: • Roof replacement • Furnace replacement • Electrical and plumbing repairs • I nsulation • Improvements for special needs, such as ramps, bathroom or kitchen modifications Home Improvement Loans feature: • Zero percent interest • No monthly payments • Repayable when ownership changes or you move from the property. You may be required to repay the loan if you refinance your home or take out a home equity loan. • $15,000 loan minimum; $25,000 loan limit As noted in the adopted Highway 3 Corridor Plan, staff recommends target properties in this area of the community that could utilize the program. Senior Services—Financial Support Program Approximately seven years ago,the Senior Services—Financial Support Program was initiated with CDBG dollars to help underwrite and expand senior programming. This lump sum is nearing the end of its funding and the Rambling River Center is requesting a renewed $5,000 allocation for Program Year 2021. The basic program outline is as follows: The Rambling River Center(Center) is committed to providing quality programs and services,while encouraging the involvement of adults over age 50. The Center is requesting continued funding for the Financial Support Program which currently offers low to moderate income persons the opportunity to do the following: Participate in programs and services by removing the financial barrier to do so. I ncrease the health and wellness in older adults through participation in programs that focus on these two areas. I ncrease the revenues that are received at the Rambling River Center and make it less dependent on local taxpayer subsidy. Provide a support network that fosters a sense of community and camaraderie for older adults. Provide access to leisure programs that feature traveling to cultural events and other communities. Helps to keep older adults active in order to continue to maintain independence while increasing their social network. Through this funding, people were able to access the Center who may not have had the means to do so previously. Through their involvement people were able to try new classes, programs and trips while creating companionships along the way.Through continued funding of this program the Center hopes to continue to provide access to those who cannot afford it on their own. The most recent budget status report from the Dakota County CDA is attached for reference. ACTION REQUESTED Recommend the City Council approve a resolution to allocate an estimated total of$38,000 in CDBG funds for PY2021 to Senior Services—Financial Support Program ($5,000), and Home Improvement Loan Program ($33,000)funding categories. ATTACHMENTS: Type Description D Exhibit Estimated FY2021 Funds Letter [I 7ii, Dakota County 1228 Town Centre Drive I Eagan,MN 55123 / Community Development PHONE 651-675-4400 1 TDo/m 711 Agency www.dakotacda.org CDA November 20, 2020 Mr. Adam Kienberger City of Farmington 430 Third Street Farmington, MN 55024 RE: CDBG Fiscal Year 2021 Allocation Estimate Dear Mr. Kienberger, Dakota County receives an annual allocation of Community Development Block Grant(CDBG) funds, which is a federal program administered by the Department of Housing and Urban Development(HUD). The program is designed to assist local governments with various community development projects and programs that primarily aid low- and moderate-income residents. Dakota County is considered an "Entitlement County", and, as such, receives an annual allocation of federal CDBG funds. The Dakota County Board of Commissioners has chosen to allocate the CDBG funds amongst the various cities and townships in the County, as well use the funds for particular County programs. The Dakota County Community Development Agency(CDA) administers this program on behalf of Dakota County. Each year, the city's CDBG allocation is rebalanced to account for updated information in the American Community Survey provided by the Census Bureau for each city. Per HUD rules, the CDBG allocation is based on three factors: a community's population, people in poverty, and overcrowded housing units. Each city receives a percentage of the annual Dakota County CDBG allocation based on the three factors. Because these factors change over time, the allocation each city receives will change over time. The CDBG allocation Dakota County will receive for the 2021 Program Year is not yet known. However,we believe it is prudent for each city to anticipate the County will receive a similar amount to what was received for the 2020 Program Year, which was $1,928,049. The amount each city will actually receive for the upcoming 2021 Program Year won't be known until the federal budget is approved. This amount may be more or less than what your city received for 2020. With that in mind,the estimated allocation for Farmington for FY 2021 is $38,289. Please provide a contingency plan in your 2021 Program Year application that specifies which program will receive more or less funds based on the final allocation. If you have any questions,please feel free to contact me at(651) 675-4464 or mdykesna,dakotacda.state.mn.us. Best Regards, DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Margaret M. Dykes Asst. Director of Community and Economic Development CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 111��YYIIII� O Farmington M N.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Year in Review DATE: December 17, 2020 INTRODUCTION/DISCUSSION As 2020 draws to a close, the following provides a summary of actions and policy decisions the EDA undertook to promote the health and growth of the local business economy. This direction followed the framework of the 2019-2021 Strategic Plan for Economic Development and allowed for meaningful progress in a number of key areas. While not unique to Farmington, the ongoing pandemic played a large role in how and when the EDA chose to utilize limited resources to support the business community. This is defined within the Strategic Plan and serves as the basis for making certain decisions: 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 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? Core Strategies further outline the work to be prioritized and promoted to achieve meaningful results: 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. Highlights throughout the year include: Business Retention& Expansion In early in 2020 a robust business retention and expansion program was crafted to strengthen and deepen relationships between local government and specific industry sectors. This program was crafted using an adapted model provided by the University of Minnesota Extension Center for Community Vitality.The program was paused as the COVI D-19 pandemic took hold and public health restrictions were put in place. A revised program via an abbreviated survey was enacted in Q4 to solicit a snapshot of data from the local business community. These results are being utilized to provide guidance on additional resources and how to better connect with some of these local businesses. Additional Business Incentive Tools—Public Space Improvement and Redevelopment and Reinvestment Programs New tools were drafted to encourage reinvestment and kickstart underfunded programs or initiatives included in several small area plans. One specific initiative that was started was a wayfinding master plan for the downtown commercial district. Direction was given to pause the investment due to the uncertainty of the year and a potential demand for public resources.This will be revisited in 2021 as appropriate. The Redevelopment and Reinvestment Program was authorized and funded via an allocation of$20,000 to spur a prospective investment in the downtown core. While not utilized within 2020,this additional tool is ready to be used as a highly flexible resource to encourage reinvestment. Utility Bill Grant Program A modest credit/grant program was authorized by the EDA to allow for local utility relief for Farmington businesses. While not largely utilized,the program mechanics allowed for new programs to be drafted and authorized. Small Business Relief Grants The City Council in consultation with staff and our peer agencies authorized a significant portion of Farmington's CARES Act dollars be allocated toward small business relief. Dakota County CDA along with their grant administrator finalized a total of 24 Farmington small business relief awards. Disbursement checks were mailed prior to the city's November 15th deadline.An additional round of funding was provided via Dakota County and we are awaiting a list of Farmington businesses that were able to utilize the program. Ongoing Commitments Through the creation of new tools and navigating economic uncertainty, the EDA also utilized existing resources to provide funding for three reinvestment projects: Homestead Community Church facade improvement Heikkila Studios facade improvement 306-312 Oak Street building rehab Relationship and Prospect Development A large part of economic development is building relationships, engaging development prospects,and planning for the ultimate development of the community. Over the past year several promising developments have surfaced, and these relationships have proven to be more important than ever. Several national prospects for local investment have allowed us to actively engage our partners across multiple agencies. Open to Business With a transition through two advisors this year, the program has emerged with renewed county-wide support and a reinvigorated approach focused on recovery. This resource allows personal small business guidance to occur and position those businesses for success in our region. Development Summary While not all development is tied directly to the guidance of the EDA, the actions taken help set the stage for growth and development in Farmington. City Administrator McKnight recently shared the following update: Business development-new and expanded businesses Farmington continues to work to expand our commercial/industrial tax base. This year we welcomed, among other businesses, Farm Town Brew Hall, Holiday, Watch Me Create, The Man Cave Barber and more. We were just as excited to see the expansion of businesses such as EZ Auto, I mpact Auto, Kemps, Northern Natural Gas and more. Housing development-permit and unit numbers, development names/neighborhoods Farmington saw its biggest year in terms of development in the past five years in 2020. With 69 new single-family homes being built in the community as of the end of November 2020, the city's estimated population is now 23,257. Subdivisions with the most activity include Fairhill at North Creek, Sapphire Lake and Regetta Fields. The city approved the first new market rate apartment complex since the 1970's with the approval of Topside Apartments. This project will be built off of County Road 66 next to Round Bank and is anticipated to break ground in 2021. Continuing Efforts Staff continues to monitor state and federal efforts to support the business community and those affected by the current pandemic. I anticipate there will be additional discussions on local business support and recovery efforts in the months ahead. Staff is currently engaged in communications efforts to promote programs, resources, new businesses, and current information so that businesses and residents can stay informed and take advantage of these resources as they become available. As we conclude an unpredictable and unprecedented year,we look forward to a productive and positive 2021. ACTION REQUESTED None,this report is intended to be summary of 2020 EDA related activities and development. ATTACHMENTS: Type Description d Exhibit Strategic Plan Summary and Status Report 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. Utilized abbreviated recovery survey tool Be prepared to receive and effectively respond to inquiries about locating Review and update(as needed)economic development Ongoing-focus on communications 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-Wayrinding and Public Spaces development. the implementation of the Downtown Redevelopment Plan Improvement Program(now 2021) 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 quarterlyjoint 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 October 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 © 651-28o-6800 i/III�IIV�IiI O Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: City Council Update/Member Roundtable DATE: December 17, 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. This agenda item also allows EDA Members to share information with other Members and staff, or ask staff about items not on the agenda. No formal decisions are made during this agenda item. 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 Farmington M N.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: December Director's Report DATE: December 17, 2020 INTRODUCTION/DISCUSSION Small Business Relief Grants Dakota County CDA along with their grant administrator finalized a total of 24 Farmington small business relief awards. Disbursement checks were mailed prior to the city's November 15th deadline. Thank you to the Dakota County CDA for their partnership on this CARES Act initiative. Dakota County subsequently announced a round two of the program allocating an additional$5 million towards small businesses that were not able to utilize the program during the first round. Program guidelines were the same with the new inclusion of eligible home-based businesses. Applications were due on November 6th and administered by Dakota County. Updates on grant recipients are being provided via an interactive map published by Dakota County: https:Hstories.opengov.com/dakota/published/yoMvr94AR Active Projects Vermillion Topside Apartments Holiday Station Store I mpact Auto expansion EZ Auto expansion Kemps expansion Northern Natural Gas 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/. November Foreclosure Report Please see the attached foreclosure report as provided by the Dakota County CDA. EDA Composition The City Council will be discussing the composition of the EDA in January. While this may be the last meeting for some current members, we will hold off on recognizing outgoing members until these decisions have been made. Thank you all for your dedication and time commitment to the EDA during one of our most challenging years. NEXT MEETING Our next regular meeting is scheduled for January 28 at 6:00 p.m. Have a safe holiday season and happy New Year. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Exhibit CDA Foreclosure Update D Exhibit CDA Foreclosure Update- Notices of Pendency D Exhibit CDA Foreclosure Update-Sheriff Sales Dakota County / Community Development Agency CDA To: Dakota County Cities From: Maggie Dykes Date: December 14, 2020 Re: Foreclosure Update Dakota County Stats — September • # of Sheriff Sales in November— 0 (compared to 4 in October 2020). There is a moratorium on evictions due to COVID-19 in place through December 14, 2020 unless again extended by Governor Walz under emergency orders. The moratorium does not apply to Foreclosure by HOA. • # of Notices of Pendency Filed in November— 24 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://Qis.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 mdykesCa)-dakotacda.state.mn.us. ��� Dakota County Community Development Agency 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 10 8 5 54 95 Burnsville 6 8 2 4 2 2 5 1 9 2 3 44 95 Eagan 5 3 8 1 2 1 1 1 2 4 2 30 101 Farmington 11 5 3 1 2 1 2 11 1 1 6 44 64 Hastings 2 1 8 0 0 0 0 1 2 0 4 18 34 Inver Grove Heights 4 6 2 0 2 2 3 2 3 2 1 27 47 Lakeville 3 6 3 2 1 1 1 0 1 2 0 20 77 Mendota Heights 1 1 0 1 0 0 0 0 1 1 1 6 9 Rosemount 4 2 9 0 1 0 0 1 2 2 1 22 42 South St.Paul 4 4 4 1 1 2 0 1 0 1 1 19 63 West St.Paul 7 7 2 1 1 0 0 1 2 3 0 24 38 Small Cities 1 1 0 0 0 1 0 0 0 0 0 3 11 TOTAL 60 51 46 11 14 13 13 20 33 26 24 0 311 676 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 r% 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 0 0 0 12 30 24 34 Burnsville 3 1 2 0 1 1 1 0 0 1 0 10 31 31 44 Eagan 3 2 1 0 0 0 0 1 0 0 0 7 20 27 42 Farmington 2 1 2 1 0 1 0 0 0 1 0 8 9 21 17 Hastings 0 0 0 0 0 0 0 0 0 0 0 0 11 14 17 Inver Grove Heights 1 0 1 0 0 0 0 0 0 2 0 4 14 14 19 Lakeville 3 0 1 0 0 0 0 0 0 D 0 4 16 16 41 Mendota Heights 0 0 0 0 0 0 0 0 0 0 0 0 4 3 2 Rosemount 0 1 1 1 0 0 1 0 0 0 0 4 12 15 11 South St.Paul 1 1 1 0 0 1 0 1 1 0 0 6 13 27 22 West St.Paul 2 0 1 0 0 1 1 1 0 0 0 6 6 14 15 Small Cities 0 0 1 0 0 0 0 0 0 0 0 0 0 2 7 9 TOTAL2020 19 9 111 21 31 41 41 41 11 4 0 0 61 168 213 273 TOTAL2019 34 29 15 13 18 24 24 29 17 21 17 25 168 TOTAL2018 12 15 24 22 21 15 13 23 24 16 13 15 213 TOTAL2017 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.