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HomeMy WebLinkAbout12-17-20 MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting December 17, 2020 1. CALL TO ORDER The meeting was called to order by Chair Simmons at 6:01 p.m. Members Present: Simmons, Butterfield (arrived 6:30 p.m.), Cordes, Hudlemeyer, Wilson Members Absent: Bernhjelm, Craig Also Present: Adam Kienberger, Community Development Director;Kalley Swift, Community Development Specialist 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Wilson, second by Hudlemeyer to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTSITRESENTA TIONS 6. CONSENT AGENDA MOTION by Cordes, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (November 19, 2020, Regular Meeting) b) Received Monthly Financial Statements C) Approved Certificate of Completion—Thelen TIF Request APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSIONITEMS a) BR&E Survey Results -Continued We received 50 responses to the survey. At the last meeting,the EDA asked staff to review subgroups of businesses five years and younger. This group is facing a harder time than the rest during the pandemic. We have an opportunity to provide outreach to these businesses. Some are very unsure about participating in the BR&E program. Once it is able to be running again,we need to heavily promote the program. Member Wilson noted there is a lot we can leverage from the survey and it allows us to pivot from our original plan. Staff could reach out to the 50 that responded and focus on the middle group. Member Wilson asked how many businesses are aware of staff roles and what the EDA does. Staff stated the roles side is limited. EDA Minutes(Regular) December 17,2020 Page 2 We need to promote what the EDA does and programs to maximize allocating program funds. Member Wilson suggested in January, evaluating the ideas to reach out by phone to businesses. Staff noted this survey grabs a snapshot in time of the near term outlook. Relationship building wasn't the intent of the information, but to provide us with how things are going. We can use it to determine how and what resources to allocate. Member Wilson agreed and felt there is value in reaching out to businesses by phone. Member Cordes stated this is a good starting point and information to work from. Member Hudlemeyer suggested reaching out to the younger businesses by email to keep the program going for now. Chair Simmons was surprised so few businesses had an online component. She reached out to a business and connected them with the Open to Business program. They are now feeling much better about their outlook. She suggested reaching out to some others without an online component to connect them with Open to Business. Staff noted the Dakota County Regional Chamber representative will be attending an EDA meeting during the first quarter and staff notified businesses of the Library workshops which had very specific topics for businesses. b) Financial Policy Discussion Due to the pandemic,the EDA has focused on business retention. This item is to determine if the EDA is interested in an EDA funded stimulus program. The City Attorney has stated under the emergency response statute, the EDA could provide a stimulus opportunity to businesses impacted by Covid. Stimulus programs have also been provided by the county and state. Recently,the county developed a program to provide $2 million to on-sale liquor license holders for$5,000 each. Farmington has 12 businesses that would qualify for this. The state has closed indoor dining until January 11, 2021. They have a $216 million package,with $88 million going to businesses that are required to close. Each business would receive $15,000 - $45,000 based on the number of employees. Dakota County is getting$8.5 million to distribute in January. (Member Butterfield joined the meeting). If the Executive Order is extended into January,the City Council has authorized refunding the first quarter liquor license fees. If this EDA has a desire to offer some type of stimulus,the business needs to prove they were victimized by the Executive Order which affected bars/restaurants, gyms and one entertainment venue; about 25 businesses. Member Wilson stated knowing the City Council is refunding first quarter fees and the county is giving businesses $5,000, he had mixed feelings on spending dollars needed for EDA programs in 2021. He would like to wait until January to see how the distribution goes with the county. He would not be in favor of a EDA Minutes(Regular) December 17,2020 Page 3 utility fee component again. We need to think about whether it is the most valuable use of EDA funding. Member Hudlemeyer would like to see how things go and use EDA funds for programs already established. We should broadcast what the county and state are doing. Member Wilson recalled for the state money,the businesses do not need to do anything. The county program has a simple application. Member Cordes agree to pause to see how the state and county funding goes. Chair Simmons also supported waiting. Member Wilson asked staff to send the funding outline to the EDA. Staff noted we should see the county application coming out on Monday and we will push it out to businesses. Chair Simmons would be interested to know if other EDA's are providing funds. Staff had a meeting with other cities today and many are taking a wait and see approach for the county and state funding. c) 2021 CDBG Allocation Recommendation For program year July 1, 2021 —June 30, 2022, Farmington's funding is $38,289. In 2019, we received$38,897. An application needs to be prepared that specifies eligible activities. Staff proposes $33,000 for the residential rehabilitation/home improvement program and $5,000 to senior services financial support program for the Rambling River Center. Member Butterfield asked if funds can be redirected to the small business community? Staff explained it is easy to use funds for studies. It is hard to put the funds into action. We depleted the commercial rehabilitation program because the funds were hard to use. It is better to use EDA funds for local incentives. The CDBG program is administered through Dakota County. Member Hudlemeyer asked if we can use the funds for the wayfinding signage. Staff explained the activity has to meet program objectives. We could use CDBG dollars to plan and design and use EDA dollars to implement. Member Butterfield stated in looking at the list he sees a lot of things we could use funds for rather than housing. Staff noted the EDA makes a recommendation to Council for CDBG dollars. Member Butterfield noted we could use funds for 1) loans to repay the expansion of a factory or commercial business; 2)provide training for those on welfare; 3)multi-family rehabilitation or energy efficiency improvements for public housing. Member Wilson asked what happens when the $33,000 is gone? Applicants go on a wait list. Member Wilson agreed with Member Butterfield, but this is the only county program that serves those unable to improve their property. There are a lot of people that could benefit from this and there is a wait list. He EDA Minutes(Regular) December 17,2020 Page 4 supported keeping the funding as is. Member Cordes also agreed to keep the funding as recommended since there is a wait list. Member Butterfield asked if the home improvement program aligns with multi- family. Staff noted it includes making energy efficient improvements. It is specific to single family homes. Member Wilson asked if staff is able to determine how many properties have benefitted from the home improvement loan program. The CDA does not report that information back to the cities. Member Wilson noted Farmington does not get a lot of funding from the program. Member Butterfield would like to amend staff's recommendation to include multi-family rehabilitation. Staff will review the guidelines to determine if the home improvement loan program is for single and multi-family. The application is due in January and staff will bring it to the January 4, 2021, Council meeting. The commercial rehab program dollars were spent down because the length of time to use the funds was shortened and had to be used for the right activity. MOTION by Wilson, second by Cordes to recommend allocating$33,000 to the home improvement loan program and $5,000 to the senior activities financial support program. APIF, MOTION CARRIED. d) Year in Review In 2020 the EDA initiated the Business Retention and Expansion program,public space improvements program and a redevelopment and reinvestment program. The public space program was to provide wayfinding signs. The redevelopment program allocated $20,000 to spur investment in the downtown. The utility billing grant program had low utilization. Landlords had to pass the savings down to their tenants. The small business relief grants authorized CARES Act dollars towards small business relief. There are three reinvestment projects,Homestead Community Church fagade improvement,Heikkila Studios facade improvement and 306-312 Oak Street building rehab. Relationships have been built with brokers and several promising developments have surfaced. The Open to Business Program has proven to be very valuable during the pandemic. We welcomed some new businesses and some expanded in 2020. There were 80 new homes built and we have a population of 23,257. The city approved a new market rate apartment complex off TH3. We are seeing a lot of housing development interest now. Staff anticipates a robust 2021 for commercial and residential development. Member Butterfield noted business wise this year has been tough. It's hard to see such a small amount of new businesses. We need better metrics to see the EDA's success. For next year, he would like to track commercial dollars invested,what is the value of new businesses coming in from a tax perspective or revenue, or dollar amount of business taxes collected. It doesn't feel like we are moving the needle at all. Did anything improve the business environment? It feels like it did, EDA Minutes(Regular) December 17,2020 Page 5 but we need to measure it. Chair Simmons suggested having a checklist of what are the metrics as we develop programs. e) City Council Update/Member Roundtable Member Wilson stated the City Council is interviewing for the vacant council seat to fulfill a term. This could be his last meeting as the City Council will decide the makeup of the EDA. He enjoyed serving on the EDA. The strength and persistence of wanting to improve the economic climate has never been stronger than with this group. It is extremely valuable that boards and commissions meet with the City Council. The city and council as a whole need to have a metric to measure success. Member Cordes stated this is his last meeting as the school board representative. His favorite quote is, "never doubt that a small group of people can change the world." This EDA has changed the world. By our actions we helped local businesses and families. It has been a fantastic learning experience. He thanked staff for their work and EDA members for dedicating their time to the community. 9. DIRECTOR'S REPORT a) December Director's Report There is a second round of grants coming from the county for$5,000 for those with an on-sale liquor license. Staff is working with Holiday on a limited ribbon cutting on December 28. We continue to push out the Stay Safe MN information. Council will be discussing the EDA composition in January. The next EDA meeting is January 28, 2021. Chair Simmons asked for an update on removal of the EDA sign. Staff received a bid for twice of what was expected. We are working with two other contractors to get bids. Chair Simmons recalled in the past meeting staff mentioned a prospect for the Dakota Motors building. That investment is paused. Chair Simmons noted in February we do election of officers. She asked if the new councilmember will be seated for the January 28 meeting. That depends on the council. 10. ADJOURN MOTION by Cordes, second by Hudlemeyer to adjourn at 7:55 p.m. APIF,MOTION CARRIED. Respectfully submitted, CU v,tKP Mit Uer Cynthia Muller Administrative Assistant