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HomeMy WebLinkAbout04-15-21 CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING AGENDA April 15, 2021 6:00 PM Ryan Butterfield, Chair; Katie Bernhielm, Vice-Chair Robert Carpentier, Joshua Hoyt, Stephen Hudlemeyer, Tony Kaufman Hannah Simmons 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA S. CITIZENS COMMENTS 6. CITIZENS COMMENTS 7. CONSENTAGENDA (a) Approve Meeting Minutes (March 25, 2021, Regular Meeting) 8. PUBLIC HEARINGS 9. DISCUSSION ITEMS (a) City Council Priorities- EDA Work Plan 10. ADJOURN CITY OF O 43o Third St:, Farmington, MN 55024 FARMINGTON © 651.280.6800 ®®® W ® Farmington MN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Meeting Minutes (March 25, 2021, Regular Meeting) DATE: April 15, 2021 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the March 25, 2021, EDA meeting. ACTION REQUESTED Approve the March 25, 2021, EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting March 25, 2021 1. CALL TO ORDER The meeting was called to order by Chair Butterfield at 6:00 p.m. Members Present: Butterfield, Bernhjelm, Hoyt, Simmons, Hudlemeyer, Kaufman, Carpentier Members Absent: None Also Present: Adam Kienberger, Community Development Director; Teah Malecha, Finance Director; Cynthia Muller,Administrative Assistant; Grant applicants—Pam Heikkila,Edgar Orozco, Jennifer McCall, Bryan Novy 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Simmons, second by Kaufman to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENTAGENDA MOTION by Bernhjelm, second by Hoyt to approve the Consent Agenda as follows: a) Approved Meeting Minutes (February 25, 2021,Regular Meeting) b) Received Monthly Financial Statements C) Open to Business Joint Powers Agreement APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) EDA Financial Review Finance Director Malecha reviewed the EDA's revenues and expenditures. The EDA has a fund balance of$293,224. The EDA receives a$40,000 general fund transfer each year. Allocations for 2021 include: Operations $ 30,000 Open to Business $ 4,500 Site Readiness $ 20,000 Fagade Improvement $ 20,000 CDBG Cashflow Timing $ 32,141 Redevelopment and $ 20,000 Reinvestment Program RRC Plaza(committed) $100,000 Cash Available for Programming $ 52,062 EDA Minutes(Regular) March 25,2021 Page 2 Regarding programming funds, in 2020 the Utility Billing Grant program was established with funding of$10,000; only$2,950 was used. Nothing was allocated for 2021. Funds from the CARES Act in the amount of$500,000 were distributed to small businesses. Chair Butterfield noted the EDA still has $100,000 earmarked for the Rambling River Center Plaza project and asked when that expires? Director Kienberger explained a portion of the fund balance was earmarked for this program which is part of the Downtown Redevelopment Plan. There is no timeframe for construction. The EDA can determine if they want to continue earmarking those funds or re-allocate them. Mayor Hoyt noted the Utility Billing Grant has $7,000 left and asked if that should be treated as not used? Finance Director Malecha stated if the funds are not used,the program just starts over from zero the next year. Mayor Hoyt asked if the American Recovery Plan will be less or more restrictive? It will be less restrictive. Member Simmons noted what is missing for 2021 is the $5,000 committed for the wayfinding sign project to be completed with the sidewalk project. Councilmember Bernhjelm stated the sign project is parked until we have more information on the sidewalk project. That can be discussed at a future meeting. Member Simmons stated if we do it this year, we need to discuss it for the budget. We had a plan ready, so we should consider that for a funding allocation. b) Downtown Facade Improvement Grant Program Funding The EDA created this program to fund matching grants of$1,500 up to $10,000 out of a pool of$20,000 annually. On this agenda are four applications for this program, all requesting grants of$10,000. Currently there is $20,000 in funding. The EDA does have $52,000 in unallocated funds. Therefore, $20,000 of that could be transferred to the Fagade Improvement Grant program to fund the grant applications. Staff asked the EDA if they want to add more funds to this program and in what amount. After much discussion regarding funding,the program guidelines and the approval process,the EDA decided to review all the fagade applications as a single item. MOTION by Hudlemeyer, second by Kaufman to add an agenda item to review and allocate the four Downtown Facade Improvement Grant applications and review the Redevelopment and Property Reinvestment Program Grant application as a separate item. APIF, MOTION CARRIED. C) Approve Redevelopment and Property Reinvestment Program Grant Application 345 Third Street Through this program, business owners are encouraged to reinvest in their buildings through projects that focus on property, building and code improvements that are permanent and anchored to the site. The applicant is Pam Heikkila, of Heikkila Studios located at 345 Third Street. The estimated project EDA Minutes(Regular) March 25,2021 Page 3 amount is $17,750, including the grant request of$8,875. Proposed improvements include: - Masonry on deteriorated bricks and tuckpointing on exterior south wall - Tuckpoint stone masonry wall on the interior south wall in the basement MOTION by Simmons, second by Hudlemeyer to approve the grant application and contract for 345 Third Street. APIF,MOTION CARRIED. d) Downtown FaVade Improvement Program Grant Applications Four Fagade Improvement Grant applications have been received, each one requesting$10,000 in grant funds. The program has a grant fund balance of $20,000. The EDA had the options of adding an additional $20,000 to this program and taking it from the fund balance of$52,000 of unallocated money, or staying with the current allocated funding of$20,000 and determine which applicants would receive funding and in what amount. Councilmember Bernhjelm suggested giving each applicant$5,000 in grant funding. Member Simmons wanted to prioritize small business and those living in Farmington, exclude Kwik Trip and propose $10,000 for 310 Third Street(former Dakota Motors building), $5,000 for 345 Third Street(Fletcher building) and $5,000 for 301 Elm Street(Linn's Carpet building). Councilmember Bernhjelm did not want to exclude Kwik Trip. Mayor Hoyt noted all businesses are staples of Farmington and the one thing Farmington does is we take care of others. He asked the applicants if anyone would still move forward with their project even without the grant. The 301 Elm Street applicant would do the work without the grant. However, their rent has been deferred, the daycare in the building wants to expand, so they are helping Linn's Carpet relocate within the building The 310 Third Street applicant stated it would impact the community if their building is repaired. They are trying to rent it and repairs would help with that. They would do what they can without the grant. The 217 Elm Street applicant(Kwik Trip)withdrew their application. They will do the work without the grant. The 345 Third Street applicant would not be able to do all of the work if the grant is not fully funded. Mayor Hoyt suggested giving the $10,000 grants to 345 Third Street and 301 Elm Street. The Dakota Motors building(3 10 Third Street) is identified in the redevelopment plans for alternate uses. He felt other funding mechanisms could be available for them and that it was not appropriate to fund an empty building. He proposed $10,000 each for 345 Third Street(Fletcher building) and 301 Elm Street(Linn's Carpet building) and explore options for 310 Third Street(Dakota Motors building). EDA Minutes(Regular) March 25,2021 Page 4 Member Kaufman suggested anyone being awarded a grant could give testimonials for the program. These are two businesses that would have a good impact. The work would be done in 2021. Member Hudlemeyer noted 301 Elm Street has two businesses within one building and is on the main corner of downtown. He agreed with splitting the funds three ways. The Dakota Motors building could get a redevelopment grant. Their work is to improve their fagade. Mayor Hoyt again noted 310 Third Street(Dakota Motors building) is not being used. The other buildings would make a bigger impact. MOTION by Carpentier, second by Hoyt to approve $10,000 grants each for 301 Elm Street and 345 Third Street and reject 310 Third Street. Voting for: Kaufman, Hudlemeyer, Hoyt. Voting against: Simmons, Bernhjelm,Butterfield. Abstain: Carpentier. MOTION FAILED. Mayor Hoyt stated 310 Third Street intends to lease their building and what if they need to expand? He asked the applicant if updating the fagade is the underlying factor to have a tenant. The applicant replied if the fagade was improved, it would help to get tenants. They want to keep the building up for the community. They would still move forward with the repairs without the grant. MOTION by Simmons, second by Bernhjelm to split the funding between the three applicants. Voting for: Simmons, Bernhjelm, Butterfield. Voting against: Kaufman, Hudlemeyer, Hoyt. Abstain: Carpentier. MOTION FAILED. MOTION by Carpentier, second by Hoyt to award$10,000 to 345 Third Street; $5,000 to 301 Elm Street and 310 Third Street. Hoyt rescinded his second. MOTION by Hoyt, second by Hudlemeyer to table the applications to the April meeting and vote to discuss programming changes at the April meeting. Hoyt withdrew his motion. MOTION by Bernhjelm, second by Hoyt to increase funding for the Fagade Improvement Grant program by$1,000 for a total of$21,000, and award$7,000 grants to 345 Third Street, 310 Third Street and 301 Elm Street. Voting for: Hudlemeyer, Kaufman, Simmons, Hoyt, Bernhjelm, Butterfield. Abstain: Carpentier. MOTION CARRIED. Mayor Hoyt felt we need to clarify the guidelines of the program. Chair Butterfield suggested tabling the last two items on the agenda for a special meeting in two weeks and have a program discussion. It was decided to have a special meeting on EDA priorities on April 15 at 6 p.m. Member Bernhjelm suggested staff could get the BR&E program going with no changes. She will revise the EDA monthly meeting calendar that is on this agenda. The agenda for the regular April 22 meeting will contain the communication plan and program discussion. EDA Minutes(Regular) March 25,2021 Page 5 9. DIRECTOR'S REPORT a) March Director's Report The downtown liquor store will be relocated to the Farmington Mall in August. There will be a significant reduction in rent, more space and a higher visibility location. The City Council met with the Planning Commission to discuss proposed changes to the zoning code. This work relates to the 2040 Comprehensive Plan. Discussions continue with Homestead Church on purchasing the Riste lot. There are several active construction and expansion projects. 10. ADJOURN MOTION by Carpentier, second by Kaufman to adjourn at 8:44 p.m. APIF,MOTION CARRIED. Respectfully submitted, C v,t62 mv-Uer Cynthia Muller Administrative Assistant CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 IIS ® Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: City Council Priorities- EDA Work Plan DATE: April 15, 2021 INTRODUCTION/DISCUSSION Mayor Hoyt and Councilmember Bernhjelm will review the 2021-2022 City Council priorities and outline the role and goals for the EDA. ACTION REQUESTED Review the attached materials and discuss the related goals and calendar outline as presented by representatives of the City Council. ATTACHMENTS: Type Description D Presentation Farmington EDA 2021-2022 Plan 2021 — 2022 Council Priorities Business Growth Community Engagement Infrastructure Support CITV OF: F ARMINGTON ✓MINNESOTA Define the role/expectations of the EDA • The City Council understands and acknowledges that the EDA is under funded . Until more funding can be provided, the City Council is aligning the role and expectations of the EDA with the 2021-2022 City Council priorities in an effort to be more efficient and effective . • Support the Council Priorities, as defined on the following pages through : • Business Growth • Community Engagement • Infrastructure Support rIry Or FARMINGTON MIN Business — EDA Support • Council Priorities : • Have a touchpoint with all current businesses in 2021 • Implement and execute the BR&E Survey • Meet with all major landowners • Josh and Katie will provide updates on these discussions during the Council update portion of EDA agendas • Organize a Farmington Business CEO Council • Provide input to the council on : • Goals/objectives of the CEO Council • Selection process • Joint meetings in the future with the CEO Council CITY OF FARMINGTON MINNESOTA CommunityEngagement - EDA • Cnllncil PrinritiPS ' • City Council Outreach Events • Attend and encourage others to as well • Participate in ribbon cutting ceremonies • Champion positive engagement across all community platforms • Be an ambassador for Farmington : • Share city and local business updates on your social media platforms • Promote Economic Development programs, including but not limited to: • Open to Business • Site Readiness Program • Redevelopment and Property Reinvestment Program • Downtown Facade Improvement Program • Encourage business participation in: • Dakota County Regional Chamber of Commerce • Farmington Business Association Community Events (ex. Dew Days) • Develop a communication plan and tell our story • Lauren will provide the EDA an update on our communication plans related to Farmington businesses FARMINGTON IIIIIIIIII -'y_.... 7 MINNESOTA Infrastructure Support - EDA Support • Continue the implementation, selection and execution of EDA programs. Including: • Downtown Facade Improvement Program • Redevelopment and Property Reinvestment Program • Evaluate the enrollment period and selection timeline for the above programs. • Review funding/budget recommendations to provide the council a recommendation on future programming and initiatives. Utilize unused funds for new signage, downtown banners and holiday decor. C!TV nF FARMINGTON �`'� MINNESOTA 2021 - 2022 — EDA Priorities/Goals Summary 1 . Implement the BR&E Surveys 2 . Provide input on the CEO Council 3 . Bean ambassador 4. Execute existing EDA programs CITY OF FARMINGTON .,0000000"W" , MINNESOTA 2021 — EDA MonthlyMeeting Calendar* *Subject to change • Monthly: • June • Review program applications Communication Plan Update (Lauren) • Director updates BR&E Survey — Q3 plan • City Council updates (Josh and Katie) . July • March Joint meeting with the planning • Financial update (Tech) commission • April • August • (Special session) Provide update on new . CEO Council discussion and brainstorm council priorities (align EDA • September role/expectations) BR&E Survey — Q4 plan • Review program enrollment period/selection timeline for 2022 October • BR&E Survey Update — Q2 plan • November • May • Finalize program plans for 2022 (based on • Review budget recommendation (2022 approved budgets) budget) • December • Joint meeting with boards and commissions CITY OF FARMINGTON MINNESOTA