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HomeMy WebLinkAbout04-22-21 CITY OF Meeting Location; FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA April 22, 2021 6:00 PM Ryan Butterfield, Chair; Katie Bernhjelm, 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 5. CITIZENS COMMENTS 6. CONSENTAGENDA (a) Monthly Financial Statements (b) Approve Meeting Minutes (April 15, 2021, Special Meeting) 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Grant Program Funding and Guidelines (b) City Council Update/Member Roundtable (c) BR&E Update-2021 Plan 9. DIRECTOR'S REPORT (a) April Director's Report 10. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Monthly Financial Statements DATE: April 22, 2021 INTRODUCTIONIDISCUSSION Please find attached the monthly financial statements of the EDA. ACTION REQUESTED Acknowledge the monthly financial statements and ask any questions you may have. ATTACHMENTS: Type Description D Exhibit Financial Snapshot-April D Exhibit EDA-Actual Vs Budgeted Rev and Exp-April 2021 Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2021 2021 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 215,734.55 2000-HRA/ECONOMIC DEVELOPME 1010 CASH-LGA ASSMNT RELIEF 35,000.00 2000-HRA/ECONOMIC DEVELOPME 1305 ACCOUNTS RECEIVABLE 37,689.62 2000-HRA/ECONOMIC DEVELOPME 1305 ACCOUNTS RECEIVABLE MANUAL 54,202.17 2000-HRA/ECONOMIC DEVELOPME 1353 DUE FROM COUNTY -54,202.17 2000-HRA/ECONOMIC DEVELOPME 3510 UNRESERVED FUND BALANCE -293,223.81 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS -568.62'. -2,100.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -6,666.66 -40,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB 37,689.62 -180,474.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 32,097.06 129,430.00. 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 2,353.46 10,030.00; 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 2,407.29: 9,707.00' 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 5,519.65' 9,046.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 58.54 790.00; 2000-HRA/ECONOMIC DEVELOPME 6220 EQUP SUPPLIES&PARTS-DBB 58.08 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 1,695.00 11,650.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 240.80 2,000.00' 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 1,578.66 9,472.00! 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 82.95' 540.00 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 13.86 300.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 59.15, 130.00 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 0.00 500.00 2000 HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,250.00 2,000.00' 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,526.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 175.00 3,500.00' 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 0.00 5,000.00' 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 0.00 400.00 2000-HRA/ECONOMIC DEVELOPME 6492 ADVERTISING 0.00 2,500.00 2000 HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 29.04 195.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE _580.00 8,000.00! Total 2000-HRA/ECONOMIC DEVELOPM 0.00', -17,384.00 0.00', -17,384.00 0.00' -17,384.00 4/14/2021 10:31:35 AM Page 1 of 1 EDA Actual vs Budgeted 2021 Object January February March April May June July August September October November December Dec YTD Dec YTD Dec YTD Actual Account Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Budget Variance 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 Intergovernmental 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Investment Income 256 313 0 0 0 0 0 0 0 0 0 0 569 2,100 (1,531) Misc Revenue 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Revenues 256 313 0 0 0 0 0 0 0 0 0 0 569 2,100 (1,531) Personnel Services 10,232 12,896 12,866 6,442 0 0 0 0 0 0 0 0 42,436 159,003 (116,567) Supplies 29 0 29 0 0 0 0 0 0 0 0 0 58 0 58 6401 -PROFESSIONAL SERVICE 1,695 0 0 0 0 0 0 0 0 0 0 0 1,695 11,650 (9,955) 6403-LEGAL 0 241 0 0 0 0 0 0 0 0 0 0 241 2,000 (1,759) 6404-IT SERVICES 789 789 0 0 0 0 0 0 0 0 0 0 1,579 9,472 (7,893) 6422-ELECTRIC 14 0 0 0 0 0 0 0 0 0 0 0 14 300 (286) 6426-INSURANCE 11 48 0 0 0 0 0 0 0 0 0 0 59 130 (71) 6450-OUTSIDE PRINTING 0 0 0 0 0 0 0 0 0 0 0 0 0 500 (500) 6460-SUBSCRIPTIONS&DUES 1,250 0 0 0 0 0 0 0 0 0 0 0 1,250 2,000 (750) 6470-TRAINING&SUBSISTANC 175 0 0 0 0 0 0 0 0 0 0 0 175 3,500 (3,325) 6485-MILEAGE REIMBURSEME 0 0 0 0 0 0 0 0 0 0 0 0 0 400 (400) 6492-ADVERTISING 0 0 0 0 0 0 0 0 0 0 0 0 0 2,500 (2,500) 6570-PROGRAMMING EXPENS 0 580 0 0 0 0 0 0 0 0 0 0 580 8,000 (7,420) Services and Charges 3,934 1,658 0 0 0 0 0 0 0 0 0 0 5,592 40,452 (34,860) Total Exp 14,195 14,554 12,895 6,442 0 0 0 0 0 0 0 0 48,087 199,455 (151,368) Transfers In 3,333 3,333 0 0 0 0 0 0 0 0 0 0 6,667 40,000 (33,333) Transfers Out 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other Financing Sources 3,333 3,333 0 0 0 0 0 0 0 0 0 0 6,667 40,000 (33,333) Net Change in Fund Balance (10,606) (10,908) (12,895) (6,442) 0 0 0 0 0 0 0 0 (40,851) (157,355) 116,504 Page 1 of 1 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farm ingtonMN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Meeting Minutes (April 15, 2021, Special Meeting) DATE: April 22, 2021 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the April 15, 2021, Special EDA meeting. ACTION REQUESTED Approve the April 15, 2021, Special EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting April 15, 2021 1. CALL TO ORDER The meeting was called to order by Chair Butterfield at 6:00 p.m. Members Present: Butterfield, Bernhjelm,Hoyt, Hudlemeyer,Kaufman, Simmons Members Absent: Carpentier Also Present: Adam Kienberger, Community Development Director; Kalley Swift, Community Development Specialist 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Hoyt, second by Bernhjelm to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Simmons, second by Bernhjelm to approve the Consent Agenda as follows: a) Approved Meeting Minutes (March 25, 2021,Regular Meeting) APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) City Council Priorities—EDA Work Plan Councilmember Bernhjelm thanked Community Development Director Adam Kienberger for his work as he is leaving Farmington and this will be his last meeting. The new City Council wanted to start fresh with a new priority plan and set priorities for this year and next year. One thing was to re-establish the roles and responsibilities of the EDA. The three City Council priorities for this year and next year are: - Business Growth - Community Engagement - Infrastructure Support EDA Minutes(Regular) April 15,2021 Page 2 The City Council realizes the EDA is under-funded and as a result the responsibilities need to match the funding given. The role of this group is to support the City Council priorities. Business growth—Have a touchpoint with all current businesses in 2021 through the BR&E survey. It was paused during Covid and staff should get that up and running again. Meeting with all major landowners—These meetings will be at the council level and they will provide updates. Organize a Farmington Business CEO Council—This is not quite defined yet, but the EDA should have a discussion of what this looks like and how it would support the business function of the community. Community Engagement—Attending ribbon cuttings and community events. All boards and commissions are ambassadors of the city. You are getting updates from Council and staff on a regular basis. We need to change the narrative on social media and in conversations. Remind people of programs we have going on. Encourage businesses to participate in organizations we do have such as the chamber. We have talked about a communication plan and how do we tell our story. Staff will give an update at a later meeting. Infrastructure Support—continue the implementation of programs we do have such as the grant programs. Continue the process of the EDA reviewing funding for the budget. We had general fund dollars to put towards city projects and there are a couple Council wanted to give to the EDA and those are the new signage, downtown banners and holiday decor. These can be funded through the $100,000 set aside for the RRC or try to fundraise. In total we took$40,000 from the Council budget and gave it to the EDA. So the EDA priorities/goals for the next two years are: 1. Implement the BR&E Survey 2. Provide input on the CEO Council 3. Be an ambassador 4. Execute existing EDA programs Councilmember Bernhjelm prepared a monthly calendar for EDA topics. Consistent things will be to review program applications, director updates and city council updates. In March the EDA received the financial update. At the meeting next week,we will dive into the grant programs and discuss what we want to do for this year and start fresh for 2022. Also next week,we will talk about the BR&E program next steps. May—budget recommendations for 2022 June—communication plan update with Lauren. We want staff to update the EDA on how to promote businesses coming to the city,how to promote grant programs, etc. Also look at Q3 plan for the BR&E plan survey. EDA Minutes(Regular) April 15,2021 Page 3 July—joint meeting with planning commission August—CEO Council discussions September—Q4 plan BR&E October -nothing specific November—have program plans in place for 2022 based on budget so going into January we know what we have. If the council approves any new funding we can finalize that. December—joint meeting with boards and commissions Mayor Hoyt commended Councilmember Bernhjelm for the significant amount of time put into this plan. The EDA has been a mile wide and an inch deep. There is a lot we wanted, but the action plans were light. How do we get to an inch wide and a mile deep. Pick specific items we know the EDA can support and then promote them. Councilmember Bernhjelm stated as a council we are trying to scale down and be very intentional with our resources. The EDA discussed business growth. BR&E is business retention and expansion. The idea is to have intentional conversations with every business in the community. What does it look like for you? Is business slowing down? Take that information and see if there are themes the EDA or council needs to focus on? Member Kaufman stated business retention has been a big thing for him. All we hear is what we don't have versus what we do have. Those business owners in Farmington need to know they are valued. When we say implement and execute the survey,what is the strategy for executing the survey? Is it going to be hands off or are we going to have a human element? Councilmember Bernhjelm stated he may have to have a separate conversation with Specialist Swift. She can get you the tools for what the survey looks like and how we will implement it and dive into the details with you. Member Simmons stated this was a 3-member sub- committee of the EDA who was given the autonomy to design the strategies and come up with ideas to provide this to the EDA so they can meet more frequently than the EDA. We did implement the survey and we do have data. For next week member Simmons would like to discuss how that is informing our 2021 work. We do have some data that should be informing part of the decisions we are making for this year. Councilmember Bernhjelm asked if she was referring to the survey we did around Covid? Member Simmons stated no, it was a previous survey. Chair Butterfield stated questions were focused around will you be investing in 2021 —2022 and will you be hiring. Mayor Hoyt stated we are going to review the survey and anything that has been done since then to overlay with what the proposal for action was. Councilmember Bernhjelm stated it will be what business will we approach first and getting the meetings set up and more of an update. We aren't going to edit anything around the process. Chair Butterfield stated we are going to re-launch it with a decision point of either a three-person pilot or a larger swath. Chair Butterfield had a question on the business growth as to where we slot in the programming. We want to aim it at a growing business. With the business growth metrics, there are some metrics on taxable income growth and what is a success for the city. Do we have the right programs in place EDA Minutes(Regular) April 15,2021 Page 4 at the right time? Is it a good swath to support what the council wants? Councilmember Bernhjelm stated yes and no. Yes in the scope of what we can provide funding for. When you look at city-wide growth,those are deeper and broader than what the EDA can get into. The piece regarding major land owners is when they intend to sell,what resources can we provide them so council can get a better grasp. There isn't anything the EDA can do as far as that development growth. You will see a big investment in downtown. The council has approved redoing the sidewalks. Director Kienberger stated engineering and public works is coordinating that with an information campaign for the downtown. Chair Butterfield asked if we should put something on the calendar to revisit the signage. Councilmember Bernhjelm stated that will be part of the funding discussion in May. Staff is aware the EDA wants to implement signage. Mayor Hoyt stated if you look at the strategic plan core strategies, community outreach takes care of one of them. The others are policy or programming. Is the EDA going to be out there advocating for businesses to come in? Maybe not today. But the retention piece is a huge component of the outreach and BR&E. Next week as we get into the programs, what are the programs,what is adequate funding,what do we need based on recent demands? That will get put into the budget for greater action next year. Councilmember Bernhjelm noted there is more CARES funding coming to businesses so they are taken care of. We need to focus on our programs. Community Engagement—Member Simmons appreciated the work put into this and the calendar. It was good to see the council agreed to use our unused funds to make a difference now. The infrastructure around a CEO Council could help us reach our goals. Member Simmons noted one priority discussed was filling our empty buildings. The other item is the Highway 3 plan which identified a few easy wins. She wanted to know where council saw those fitting in. Councilmember Bernhjelm stated regarding the storefronts,the EDA can continue to promote Open to Business and grant programs. Otherwise,the scope is beyond the EDA. Mayor Hoyt stated if a property owner has multiple buildings and one is empty,we would ask how can we help you. That was his point with the Dakota Motors building. There is a portion of that building that is empty for a reason. How much do we want to be involved that we can reasonably change this? Councilmember Bernhjelm stated regarding Highway 3,we are moving the liquor store to the Farmington Mall. There will be a huge project this summer and help drive business to that area. There is a roundabout schedule for 2022 at CR66 and Highway 3. There is also an apartment building planned there. There is nothing further the EDA needs to do with that plan. There has been a conversation about a frontage road near the Holiday station. Member Simmons recalled when we discussed the wayfinding signage we did include Highway 3. Councilmember Bernhjelm stated as a group we will need to decide where we want to start because we won't be able to fund it all at once. Chair Butterfield stated it is good to hear the council's thought process on where their focus is,which is clearly Highway 3 and improvements in downtown. The EDA Minutes(Regular) April 15,2021 Page 5 RRC Plaza is put off to the side so we have allocated dollars there that we can discuss in the coming month. The ice arena was on the council priority which sounds like it has been shelved. Councilmember Bernhjelm stated the council invested $200,000 into the arena improvements last year. She and Mayor Hoyt are also on a committee to put a referendum on the ballot in 2022 to ask the community to fund a recreational project. The Park and Rec Commission will take the lead in this project. The school board has a survey going out and a question will be added as to whether the resident would support this in 2022 if it went out to a vote. If that is a positive response, we will continue to work on that. It would be a$20—25 million project of Jim Bell Park. We have good ground work from 2016 and some of that will be brought back. Chair Butterfield stated with the priorities we have that loosely can fall under community engagement so why isn't that listed as a priority? Councilmember Bernhjelm stated it hasn't been given the green light to move forward and that is the purpose of the survey. We are not sure it will be on the ballot at this point. Mayor Hoyt stated we have two parallels - and one is engagement with our business owners. At the same time the Park and Rec Commission/City Council develop a survey and go in depth. As we engage our business owners and this gets traction, one thing might be to ask for donations. It isn't something to chase at the EDA level. Right now, it is a very small group working on this. Councilmember Bernhjelm stated we have to change the narrative of what this brings to the city. It will take all the boards and commissions and city council to promote the narrative. Member Simmons noted other communities with these amenities are getting our dollars and felt this is a positive thing. Member Simmons asked if we need to elect new members for a sub-committee for the continued BR&E work? Councilmember Bernhjelm stated at this point it is Kalley setting up the meetings and which person from the EDA will be going. Mayor Hoyt stated it probably is a monthly update as to which businesses we will be visiting and an update from the last visits. As we talk about touchpoints that we ask each business owner, one would be their familiarity with the programs that exist today. If they say no, how can we better do that? Because the truth is $500,000 was allocated for small businesses and$243,000 was used. We were able to use it for other things. Do they know about all programs, what is the point of contact, so as new things come up,they don't miss out on funding. Councilmember Bernhjelm stated some businesses were flourishing in 2020 and they didn't need to take advantage of the programs. Member Simmons asked within the calendar where do you see this fitting which would be our annual re-assessment. Is it with budget planning in May or end of year? Councilmember Bernhjelm stated that would be in November. On next week's agenda,we will discuss are those programs going to be more defined and have an enrollment period. That will define the calendar for next year. Member Kaufman stated the strategic plan goes through this year so what does that look like? Director Kienberger stated you would start exploring the new three-year plan in early fall. Councilmember Bernhjelm stated we can have that as a EDA Minutes(Regular) April 15,2021 Page 6 conversation with Adam's replacement. They might have knowledge from another city. Let's stick with the plan we have for the near future. We are looking at June at the earliest for a replacement. Director Kienberger stated the strategic plan is used internally. He would recommend this discussion with the replacement as it will be good timing. These EDA priorities work in step with the Council and will work very well. Member Kaufman appreciated the council saying we should focus on these things. It is important we also close the loop on tasks we have going this year so it isn't part of next year's plan. Regarding the survey data, what do we do with the data afterwards and what is the systematic way of working through that data and completing that. Once we close that circle,then we can move on to something else. That will be important this year that we don't just look at the execution we look at the return and make it a continuous cycle so next year we can look at something else. Councilmember Bernhjelm asked we make the BR&E timeline part of the next meeting and maybe this gets shifted to the November meeting to recap the whole BR&E program. Member Hudlemeyer stated when we reviewed the first round data in October a lot was time relevant and we got some good data. We did find where businesses had success stories. In our communication plan we need to share those so businesses outside our community see that. Mayor Hoyt stated ownership groups are talking about best practices. With the CEO Council and the BR&E there is some overlap so maybe it's not the touchpoint of the business,but having that touchpoint with another business owner is how are you handling this? Councilmember Bernhjelm stated we don't always need to reinvent the wheel. We do have a Farmington Business Association and part of it is getting businesses to be a part of that group. So do we need a CEO Council? Member Hudlemeyer saw promoting a group we have is more valuable than starting a new group. Member Simmons stated the sub-committee had identified there is a benefit to incentivize the businesses to participate in the survey, such as following up with a thank you, giving them a highlight on our social media, something to recognize their elevated engagement with the city. Member Simmons suggested for next week to discuss some sort of maybe not a documented procedure, but we hear a business is moving out, we need to inform someone to reach out. As a board we need to reach out and have a process. Councilmember Bernhjelm stated that is a conversation we can have with the city administrator as to staff working on that. Director Kienberger stated the next agenda will be the BR&E update and the program discussion as we have had other people inquire about it. Councilmember Bernhjelm stated her preference would be don't tell us what is out there so we can have a clean discussion of what we want this program to look like so we can come out of it with clear direction; if we will open more money this year or if we decide the program is closed for 2021 and to re-apply in 2022. Director Kienberger stated we do get inquiries and we want to provide a clear message to those that are reaching out to us now. Chair Butterfield stated on the calendar is to discuss the program and a subset is to review the facade program and redevelopment program EDA Minutes(Regular) April 15,2021 Page 7 guidelines. Administrative Assistant Muller will be at the next meeting to facilitate that discussion. Member Simmons asked for the calendar if we could look back at some of the good presenters we had like Open to Business and Urban Land Institute and fit those into the calendar. Member Simmons asked if we could talk about social networking at the next meeting. Mayor Hoyt stated the FBA is figuring out their structure right now and whether they want to exist or have a Farmington Chamber of Commerce. Councilmember Bernhjelm stated the most active group is the Dakota County Regional Chamber which she joined last week. Their lobbying group is much greater than anything we could do here. Chair Butterfield thanked Director Kienberger for his work. 10. ADJOURN MOTION by Kaufman, second by Bernhjelm to adjourn at 7:12 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Administrative Assistant CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 mftftkl O Farmington MN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Grant Program Funding and Guidelines DATE: April 22, 2021 INTRODUCTION/DISCUSSION The EDA administers two grant programs—Downtown Fagade Improvement Program and Redevelopment and Property Reinvestment Program. Each program follows the same guidelines and is provided with$20,000 in funding. At the March EDA meeting, all funding was distributed for the Fagade I mprovement Grant Program. For 2021,there was$20,000 allocated to this program. Staff has received another application for$9,855 in grant funding and as it is early in the year,there could be more applications. The EDA's intent of establishing this program was to improve the look of the buildings within the downtown area. That is what is taking place this year. The work involved in fa§ade improvements can easily require a$10,000 grant. If the EDA wants to offer this program,then the appropriate funding amount needs to be provided. For 2021, staff is recommending an additional$30,000 be added to the Fagade Improvement Grant program to cover any anticipated grant applications. If additional funding is not provided,then the program will be closed for this year with three quarters of the year remaining. Regarding the Redevelopment and Property Reinvestment Program,we have awarded two grants so far in 2021. There is$2,100 left in this program. This program was also meant to encourage property owners to reinvest in their properties for themselves or for potential buyers. Proposed work must be permanent and can be for the interior and/or exterior of the building. Again,the type of work involved is expensive,therefore the program needs to be funded accordingly. There are no complete applications currently on hand, so staff proposes an additional$20,000 in funding for this program. The additional funding for both programs could come from the$52,000 of unallocated funds and from the$100,000 set aside for the Rambling River Center Plaza project. Staff does not recommend reducing the dollar amount of grants awarded as the work involved in these projects is expensive. A history of these grant programs is attached. For 2022, the EDA mentioned revising the guidelines and the process for how grants are awarded. Staff is proposing two options: Option 1 Leave the guidelines and process as is with accepting applications and awarding grants throughout the year, but with increased funding of$50,000. Option 2 1. Mail out the Downtown Facade Improvement Program package to downtown eligible properties in January. The Redevelopment and Reinvestment Program is not mailed out as it is open to any storefront business within Farmington. Applications would be scored by staff based on certain criteria: - Clear title to the property;taxes and any city fees are paid - Project meets the program objectives - Project impact on the surrounding area - Proposed work follows city code and/or historic preservation guidelines Applications based on highest scores and those that would use up available funding would be brought to the EDA for approval. Round 1—Receive applications February—March. - Award grants in April. - Work would have to start within 90 days and be completed in six months (end October). Round 2—Receive applications April—May. - Award grants in June. - Work would have to start within 90 days and be completed in six months (end December). The timelines above allow for grant money to be awarded within the same year. Whether having one round or two rounds should be based on amount of funding. If there is $50,000 in funding, award $30,000 in grants in first round and $20,000 in second round. If no applications are received for the second round, any leftover applications from the first round would be reviewed again. If less than $50,000 in funding is provided by the EDA, have one round only. ACTION REQUESTED 1. For 2021,the EDA should decide if an additional$30,000 in funding should be added to the Downtown Facade Improvement Program or$20,000 in funding added to the Redevelopment and Property Reinvestment Program or both. If no funding is added, both programs will be closed for the year. 2. For 2022,the EDA should select option 1 or option 2 for the grant programs and decide the amount of funding for each program. ATTACHMENTS: Type Description D Exhibit Grant Program Funding History D Exhibit Downtown Facade Improvement Grant Program Guidelines D Exhibit Redevelopment and Property Reinvestment Program Guidelines D Exhibit March Financial Update Presentation Funding History of Grant Programs Downtown Facade Improvement Grant Program Year Number of Grant Amount Project Amount Under Utilized Grants Awarded Funds 2017 2 5,000 17,948 2,052 2018 4 25,978 102,500 Added 5,978 2019 2 19,500 49,460 500 2020 1 10,000 22,000 10,000 2021 3 21,000 101,957 Added 1,000 12 81,478 293,865 5,574 Redevelopment and Reinvestment Grant Program Year Number of Grant Amount Project Amount Under Utilized Grants Awarded Funds 2021 2 17,879 35,757 2,121 CITY OF FARMINGTON Downtown Facade Improvement Program Guidelines and Application 2021 City of Farmington Downtown Facade Improvement Program In conjunction with the Downtown Redevelopment Plan, the Economic Development Authority (EDA)has made funding available to commercial buildings zoned B-2 or B-3 in the downtown area to be used for building fagade and exterior improvements. Eligible Properties Commercial buildings zoned B-2 or B-3 in the downtown area as shown on the attached map. Funding Source EDA fund balance of$20,000 annually. Grants will be awarded according to the following scale: Grant Amount 1:1 Match Project Amount $1,500 - 2,500 $3,000—5,000 $2,501 —5,000 $5,001 - 10,000 $5,001 - 10,000 $10,001 - 20,000+ Grant Terms & Requirements No more than one grant may be granted per property within one year from the initial application. A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs, the applicant must contribute at least one dollar. The amount of grants to be awarded shall be $1,500 up to $10,000 according to the scale. Program Objectives The intent of this program is to leverage investment in the B-2 and B-3 zoned commercial buildings in the downtown area by providing matching grants of$1,500 up to $10,000 according to the scale, for fagade and exterior improvements. As part of the Downtown Redevelopment Plan, business owners are encouraged to improve their buildings' front and back curb appeal through fagade improvements such as awnings,paint,tuck pointing, exterior lighting, decorative signage, windows, doors, gutters, accessibility improvements,permanent patios, utility screening, dumpster enclosures, etc. Program Definitions Program Administrator The Program Administrator shall be the City of Farmington Economic Development Authority, 430 Third Street,Farmington, MN 55024,phone 651-280-6820. Applicant Any commercial building zoned B-2 or B-3 within the downtown area(see attached map) seeking to obtain assistance under the terms of this program. 1 Building Official The Building Official for the program shall be a City of Farmington employee and shall provide plan review and technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished if required. Project Coordinator The Project Coordinator for the program shall be the Executive Director of the EDA. Target Area Commercial buildings zoned B-2 or B-3 in the downtown area as shown on the attached map. Eligible Improvements: Funds may be used for fagade and exterior improvements for the front and rear of buildings including,but not limited to awnings, paint,tuck pointing, exterior lighting, decorative signage, windows, doors, gutters, accessibility improvements,permanent patios, utility screening, dumpster enclosures, etc. _ _ 1 in Special Conditions Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review that is for a property determined eligible for designation or is a heritage landmark property will be reviewed as outlined in city code to receive a Certificate of Appropriateness. Data Privacy All information provided by applicants under the Downtown Fagade Improvement Program shall be maintained in accordance with the Minnesota Data Practices Act. 2 Procedures Application Intake Applications are accepted on an ongoing basis and are reviewed based upon funds availability and in the order received. Applications will be reviewed for participation in the program based upon the following guidelines: 1. Whether the applicant has clear title to the property to be improved. Prior to project approval,the following will be ascertained: a. Title verification; b. All real estate taxes and any city fees or charges are current; c. All individuals having an ownership interest, including contract holders,have agreed in writing to join in the application; 2. The extent to which the project meets the program objectives; 3. The degree of the project's overall impact on the surrounding area. If necessary, applications competing for limited funds may be selected based upon these criteria. Property Inspections Upon determination that a property owner applying for rehabilitation assistance is eligible based on the program guidelines,the Building Official may conduct an inspection of the property to determine if the proposed improvements conform to City of Farmington building code standards. Scope of Work Upon completion of the initial inspection,the property owner shall provide a report or elevation drawing indicating any planned improvements. This report will be reviewed by the City of Farmington. Project Approval The final application will be approved by the Farmington EDA, following review by City of Farmington staff and recommendation of the Project Coordinator. Approval by the Economic Development Authority (EDA) The contract for work to be completed will be between the applicant and the contractor. Once the applicant has accepted a bid, staff will prepare the information for presentation to the EDA. Upon EDA approval, a Grant Agreement will be signed by the applicant and a designated city official. This agreement will outline the terms and conditions of the project, including the city's role and the applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed Upon approval of the work to be done, and obtaining the required permits,the contractor will normally have six (6)months in which to complete the awarded contract. If construction work does not begin within 90 days of the award of contract,the Grant Agreement is null and void; however,the applicant may apply for one extension if necessary. The length of the extension will be determined on a case-by-case basis. 3 Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the owner and contractor concerning the completion of work,the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable state law.EDA funds shall not be released to either the owner or contractor until such dispute has been settled. Hold Harmless The owner and the contractor shall indemnify and hold harmless the City of Farmington, the Farmington EDA, employees, and officials from any damages or liability arising from, or occurring as a result of,the activities funded through this program. EDA Payment All EDA funds will be disbursed by the EDA upon authorization by the owner and the City of Farmington. Payments will be made only after all work has been completed accordingto o the authorized scope of work, and has been accepted by the owner. Funds will be released once all improvements are completed to the satisfaction of the city Building Official and final project inspection by the Project Coordinator. Payment may be made directly to the contractor or in reimbursement to the owner, upon presentation of paid receipts for approved work to the Project Coordinator. Appeals Process Appeals concerning eligibility for the Downtown Fagade Improvement Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator. The coordinator will contact the applicant and attempt to rectify any concerns. A written response will be made within fifteen(15) days. 4 1 ' 1._,_...._,. L I t t 1 j B-1 R-2 I-1 B-1 Pine St p ;i ►- - I - 5-1 I R-T Flet St —.L C st n TT n Oa In ;. " n r r v i U R3" v, _ S ruce St aSpruce St__^__j_ R-T Walnut St yy�ln ' R� Farnunylan "� :uder='n _.Tort � cust St ? t + R-0 R-0 _ Maplc St ..I � R-2 N— N c, Beech_St 1Ol—� n - R-5 R-1 N n i '- �I 0 Beech St R-1 5 CITY OF FA MINGTON Redevelopment and Property Reinvestment Program Guidelines 2021 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON O 651-28o-6800 I.V FarmingtonMN.gov Redevelopment and Property Reinvestment Program In conjunction with various city adopted plans such as the Downtown Redevelopment Plan and Trunk Highway 3 Corridor Plan, it has been acknowledged that redevelopment needs to focus on retaining,reinvesting,and reinvigorating underutilized buildings and properties within our commercial and industrial areas of the city,The Economic Development Authority (EDA)has made funding available to financially assist property owners&leasers for projects which focus on property,building,and code improvements which are otherwise seen as barriers for reinvestment,reuse,and redevelopment of a property. Eligible Properties Any property within the City of Farmington which is within commercial or industrial zoning districts or within a district with a commercial or industrial component.This criteria requires that the property is zoned R-T, B-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use (MU), Mixed Use Commercial/Residential(MUCR),or Spruce Street Commercial(SCC), Funding Source EDA fund balance of$20,000 for 2021.Grants will be awarded according to the following scale with a $10,000 grant maximum: Grant Amount 1:1 Match Project Amount $1,500—2,500 $3,000— 5,000 $2,501-5,000 $5,001-10,000 $5,001-10,000 $10,001-20,000+ Grant Term and Requirements No more than one grant may be granted per property within one year from the initial application.A 1:1 match is required by the applicant,For every dollar contributed to funding eligible project costs,the applicant must contribute at least one dollar.The grant amount to be awarded shall be$1,500 up to$10,000 according to the scale, Program Objectives The intent of this program is to leverage investment on commercial and industrial properties to foster property improvements,redevelopment growth,and increase the productive use of existing infrastructure within the City of Farmington,This program is intended to foster projects which focus on property, building,and code improvements which are otherwise seen as barriers for reinvestment, reuse, and redevelopment of a property, Program Definitions Program Administrator The Program Administrator shall be the City of Farmington Economic Development Authority,430 Third Street, Farmington, M N 55024,phone 651-280-6820, Applicant Any property within the R-T, B-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use (MU), Mixed Use Commercial/Residential(M UCR),or Spruce Street Commercial(SCC)within City of Farmington limits seeking to obtain assistance under the terms of this program. Eligible applicants are; 1. Current Property Owners who are looking to update and fix issues on their property in order to make it more appealing to potential buyers and leasers. 2. Current Property Owners who have underutilized properties and are in dire need of building improvements,code improvements,facility upgrades,and rehabilitation in order to retain and reinvigorate the site/business, increase the property value, and draw additional employees and/or businesses to the site, 3. Leaseholders who are currently leasing a portion or the entirety of a building and are in dire need of building improvements,code improvements,facility upgrades,and rehabilitation in order to retain and reinvigorate their business site and draw additional employees to their business,The owner of the property must also join in with the application and comply with program requirements Building Official The Building Official for the program shall be a City of Farmington employee and shall provide plan review and technical expertise relating to inspections, construction quality, code compliance, and scope of work to be accomplished if required, Project Coordinator The Project Coordinator for the program shall be the Executive Director of the EDA. Target Area Any property zoned R-T, B-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use (MU), Mixed Use Commercial/Residential (MUCR), or Spruce Street Commercial (SSC) within the City of Farmington is eligible. If competing for limited funds, the proposed improvement project will be evaluated upon whether it is an outcome, priority, and/or an objective in a city adopted plan leg.Trunk Highway 3 Corridor Plan, Downtown Redevelopment Plan, etc.) Eligible Improvements Funds may be used for property,building,and code improvements which are permanent and anchored to the site of improvements leg,projects focused on mechanical,electrical, plumbing,etc,).The project being funded needs to be improvements which will help redevelop,maintain,and/orexpandthevariety ofoptionsforuse ofthe existing property and infrastructure, Funds may be used for, but not limited to; Correcting/improving code violations—Paving,resurfacing,correcting handicap accessibility issues,etc. Fixing or preventing deterioration/blight of structure(s), Roofing,siding,windows,and doors, Sealing air leaks around floors,walls,ceilings,windows,doors,and fireplaces, Plumbing—Repair and replacement of fixtures and appliances,filtration systems,backflow prevention,line and hose repair and replacement,sump pump,etc, Elevator install/update, Heating and air conditioning systems,HVAC controls,ventilation,etc. Solar panels,green energy upgrades,energy efficient windows,skylights,etc, Contamination remediation. SAC Credits, Insulation in an attic,crawl space,basement,and exterior walls.Sprinkling a building. Demolition, Reconfiguration of interior space to suite a new user or provide lower cost space, Ineligible Improvements Any improvements(furniture,equipment,etc.)which can be removed when the owner/tenant leaves, Business and operating costs, Acquisition costs, Costs prior to acceptance of application. Special Conditions Contractors All project work undertaken with City of Farmington funds must be completed by bona fide contractors who are licensed(as applicable)and provide proof of insurance. Data Privacy All information provided by applicants under the Redevelopment and Property Reinvestment Program shall be maintained in accordance with the Minnesota Data Practices Act, Historic Properties The City of Farmington is a Certified Local Government underthe Historic Preservation Act, Each project submitted for review that is for a property determined eligible for designation or is a heritage landmark property will be reviewed as outlined in city code to receive a Certificate of Appropriateness. Procedures Application Intake Applications are accepted on an ongoing basis and are reviewed based upon fund availability and in the order received,Applications will be reviewed for participation in the program based upon the following guidelines: 1. Whether the applicant has clear title to the property to be improved,Prior to project approval,the following will be ascertained: a. Title verification; b, All real estate taxes and any city fees or charges are current; c. All individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; 2. The extent of which the proposed improvement project meets the Redevelopment and Property Reinvestment Program objectives; 3. The degree of the proposed improvement project's overall impact on the surrounding area; 4. Whether the proposed improvement project is identified as an outcome, priority, and/or an objective in a city adopted plan (e.g,Trunk Highway 3 Corridor Plan, Downtown Redevelopment Plan,etc,), If necessary, applications competing for limited funds will be selected based upon the proposed improvement project's applicability of the above criteria, Property Inspections Upon determination that the applicant(s) applying for financial assistance is eligible based on the program guidelines,the Building Official may conduct an inspection of the property to determine if the proposed improvements conform to City of Farmington building code standards, Scope of Work Upon completion of the initial inspection,the applicant(s) shall provide a report or elevation drawing indicating any planned improvements,This report will be reviewed by the City of Farmington, Project Approval The final application will be approved bythe Farmington EDA,following review by City of Farmington staff and recommendation of the Project Coordinator. Approval by the Economic Development Authority(EDA) The contract for work to be completed will be between the applicant and the contractor.Once the applicant has accepted a bid, staff will prepare the information for presentation to the EDA, Upon EDA approval,a Grant Agreement will be signed by the applicant and a designated city official.This agreement will outline the terms and conditions of the project, including the city's role and the applicant's responsibilities,and any corrective actions to be taken in the event of a dispute, Notice to Proceed Upon approval of the work to be done and obtaining the required permits,the contractor will normally have six(6)months in which to complete the awarded contract,If construction work does not begin within 90 days of the award of contract, the Grant Agreement is null and void; however,the applicant may apply for one extension if necessary,The length of the extension will be determined on a case-by-case basis, Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner.In the event of a dispute between the applicant(s)and contractor concerning the completion of work,the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation,and that result in legal action by either party to the contract, shall be resolved in accordance with applicable state law, EDA funds shall not be released to either the applicant(s)or contractor until such dispute has been settled. Hold Harmless The applicant(s) and the contractor shall indemnify and hold harmless the City of Farmington,the Farmington EDA,employees,and officials from any damages or liability arising from,or occurring as a result of,the activities funded through this program, EDA Payment All EDAfunds will be disbursed bythe EDA upon authorization bythe applicant(s)and the City of Farmington,Payments will be made only after all work has been completed according to the authorized scope of work and has been accepted by the applicant(s). Funds will only be released once all improvements are completed to the satisfaction of the city Building Official and final project inspection by the Project Coordinator. Payment may be made directly to the contractor or in reimbursement to the applicant(s) upon presentation of paid receipts for approved work to the Project Coordinator, Appeals Process Appeals concerning eligibility for the Redevelopment and Property Reinvestment Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator,The coordinator will contact the applicant and attempt to rectify any concerns,A written response will be made within fifteen(15)days. EDA FINANCIAL REVIEW MARCH 25 , 2021 CITY OF FARMINGTON ` mum*,- "TPg esti. REVENUES AND EXPENDITURES 2018 2019 2020 Revenues • Preliminary numbers Taxes $ - $ - $ - • DBB Executive Director HR costs Intergovernmental: • Reimbursed by the DBB through Dakota Transfer from City 30,000 50,000 40,000 County CDBG Grants 21,809 - - DBB HR Costs Reimbursement* - 65,398 169,469 - 1 Investment earnings 4,188 10,434 6,696 _. Total Revenues 55,996 125,832 216,166 r' Expenditures Economic Development 68,338 67,722 45,546 DBB HR Costs Reimbursement - 65,398 169,469 Net Change in Fund Balance $(12,342) $ (7,288) $ 1,150 BALANCE SHEET 2018 2019 2020 Assets Cash and Investments 266,452 197,086 203,703 Cash and Investments: Restricted-VRC Assess Relief 35,000 35,000 35,000 Accounts Receivable - - 54,202 Accrued Interest Receivable 636 566 523 Premium/Discount on Investments (181) (38) (142) Due From Other Governments - 65,398 - I Prepaid Expenses 595 300 - Total Assets $ 302,502 $ 298,312 $ 293,286 Liabilities and Fund Balance Accounts Payable 3,140 6,238 62 Fund Balance 299,362 292,074 293,224 Total Liabilities and Fund Balance $ 302,502 $ 298,312 $ 293,286 FUNDS AVAILABLE FOR PROGRAMMING 2018 2019 2020 2021 Beginning Cash and Investments $ 332,336 $ 301,452 $ 232,086 $ 238,703 General Fund Transfer 30,000 50,000 40,000 40,000 Less: Operations 33,802 28,713 17,083 30,000 Dakota Broadband* 3,045 23,996 - - Open to Business 5,513 5,513 5,513 4,500 Site Readiness - - - 20,000 Facade Improvement 25,978 9,500 20,000 20,000 Utility Fee Grant Program - - 21950 - CDBG Cas hflow Timing** - - - 32,141 Redevelopment and Reinvestment Program 20,000 Public Space Improvement Program - - - - RRC Plaza (Committed) 100,000 100,000 100,000 Cash Available for Programming $ 293,998 $ 183,730 $ 126,540 $ 52,062 FUNDING SOURCES • CARES Act American Rescue Plan • Small business grants - $236,900 • $130 billion for local governments • City Council allocation during budget • Per capita allocation process • Limited information for eligible uses • Additional year-end transfers • Assistance to households, small businesses, and nonprofits to aid in the response to the public health emergency or to aid hard-hit industries such as �s tourism, travel, and hospitality w> CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: City Council Update/Member Roundtable DATE: April 22, 2021 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 O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 1111 O Farmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: BR&E Update-2021 Plan DATE: April 22, 2021 INTRODUCTION/DISCUSSION City staff attended a Business Retention and Expansion:Retaining Suburban Businesses course through the University of Minnesota—Extension in Fall 2019.The course was technical in nature and has national accreditation for what a BR&E Program can look like. Based on this course, city staff created a BR&E Program with input from the EDA and direction of the BR&E Subcommittee which has the ability to evolve into a sustainable, active and long-term program. Our BR&E Program was finalized and ready for final steps in March 2020, but it was paused due to COVI D-19. I n September 2020,the BR&E Subcommittee reviewed and approved a short-term modification of the program which included an online survey of COVI D-19 related questions which was open to all businesses in Farmington. We received 50 business responses in October 2020 and reviewed overall results and sector specific results at the November and December 2020 EDA meetings. With the increased availability of COVI D-19 vaccines and the lessening restrictions on businesses, our BR&E Program is gearing up again for implementation. As a part of gearing up again for the BR&E Program, I am currently participating in a 6-week cohort through the University of Minnesota—Extension which is directed for city staff and officials in suburban communities specifically focusing on BR&E practices moving forward.The cohort is providing supplemental information to the original course taken in Fall 2019 with a focus on how to be successful with a BR&E program as we move away from COVI D related restrictions and enter into post-COVI D recovery and transformation. While I do not anticipate changes to the original BR&E Program created and approved,taking this opportunity to learn new techniques and approaches to issues and red flags which will be prominent from our businesses because of COVI D-19 will benefit the program as we tackle red flags and policy/program discussions. BR&E Program Outline The traditional BR&E program is based on business assessment surveys and in-person business visits to business facilities to sit down and have face to face conversations with business leaders in the community.This program allows for individual business concerns to be addressed while also gathering data and support for bigger policy decisions, programs and discussions to support Farmington businesses.The BR&E Program is also established as a way to open lines for efficient and effective communication with local businesses to help enhance their success story, encourage their expansion and create long-lasting partnerships. We want to ensure the program is launched with consistent messaging and willing businesses.Any and all business interaction needs to be done with intention to ensure greater success and longevity of the BR&E Program. All of the groundwork and planning for the BR&E Program has already been completed by the subcommittee and there are no planned changes or edits for the program itself. However,the Fall 2020 BR&E Survey will influence what businesses we wish to target and visit in the initial program launch, Business Participation • Those who answered "yes" or"unsure"during the Fall 2020 BR&E Survey regarding interest in participating in the traditional BR&E Program.An offering will also be made to those who did answer"No." We want to maximize on the engagement we have already seen from the 50 businesses which participated in the Fall 2020 BR&E survey. We will use their Fall 2020 and new online survey results to facilitate the business visit discussion. • Original target group of second stage growth businesses. • Businesses who are interested in participating. • 2021 Goal: Build testimonies and positive reactions from businesses so businesses which may not be interested now want to participate after the program has been up and running. Business Visitors • 2-3 for in-person business visits. • Consist of city staff, EDA members, City Councilors, Dakota County Chamber of Commerce, citizen volunteers,various local/regional organizations, etc. Business Visitor Training • This can be revisited individually or as a group before business visitors go on their first visit.The business visitor training is aimed for business visitors who are not a part of the EDA or closely intertwined with the BR&E Program overall. The approved business visitor training is included after this memo. • All business visitors receive a summary of the training as a refresher before each visit no matter how many business visits they attend. Online Survey • https://www.surveymonkey.com/r/FarmingtonBRE • City staff will distribute this survey and notify business visitors of the online survey responses and key issues to address and dig deeper while on the business visit. • Businesses will be asked to complete this prior to the in-person business visit so various answers or red flags can be dug into deeper in person and help facilitate the business visit conversation. In-Person Business Visit • 45-60 minute scheduled visit with each business at their business location. City Hall will be offered as a meeting location for any business which wishes to meet somewhere else. • I n-Person Questionnaire to supplement the online BR&E Survey.The approved questions are included after this memo. • Businesses will see these in-person questions before the business visit as preparation. • While the online survey is meant to gather as much data as possible,the in-person business visit is intended to start building the relationship side of the program. • Business visitors do not need to know all of the answers to the questions that the businesses have. The business visitors simply need to ensure that their questions and concerns are written down and transferred back to city staff so we may connect with them and offer assistance or reach out to our partners at DEED,the Dakota County Chamber of Commerce, Open To Business, etc.to get them the help that they are seeking. Leave Behind Gift • The business visitors will give each business a small leave behind gift for each business who participates in the program.These are purchased and ready to go. Follow Up:Short-Term • Thank you notes • Immediate responses for red flags, needed resources/information, etc. will be expedited by city staff after each visit. This allows the businesses to have the information necessary to strategically plan out what will best aid their business and circumstances. Follow Up: Medium-Term • A business spotlight on social media platform(s)and the Farmington Currents will occur for businesses who participate in the BR&E Program. • The spotlight allows for the business to get a short blurb on who they are and what goods/services they offer.The EDA also gets a spotlight to promote the BR&E Program and encourage other businesses to also participate in the program. Follow Up: Long-Term • Summary reports can be completed and updated as each visit occurs. Summary reports provide a systematic way of working through the data received and the program outlines and objectives as a whole. The summary reports included as examples are from expedited BR&E Programs from Vadnais Heights and Hugo. • After adequate business participation,the data gathered can be used as support for different efforts and projects along with adding additional services, programs and products needed to address the opportunities and problems identified during the business visit process • The overall results will be available for review by each business who participated as well as on the webpage for BR&E on the city website. 2021 Timeline—Goal: Get 50 businesses to participate in the full BR&E Program. Can easily be more than 50 with increased business visitors and high interest in the business community.The timeline below outlines 52 business visits with an average of 2 business visits per week from June—November. April-Early May—Prep work for full launch May—3-4 businesses+quick assessment of the program to ensure this is how we want the BR&E Program to progress.Take time to work out any issues which need to be addressed at the overall program level. June-8 businesses July-8 businesses August-8 businesses September-8 businesses October-8 businesses November—8 businesses+ BR&E recap for 2021. Launch Favor Farmington 2.0—planned discussion at the June EDA meeting in correlation with the communication plan. December—Line up business visits for January 2022. Forming relationships,gathering data and identifying key issues within Farmington will allow the EDA to increase their efficiency by designing new goals, programs and incentives. How the BR&E Program is conducted will also be a testimonial to validate what the EDA does to benefit the economic vitality of Farmington and the community as a whole.This testimonial will occur by helping businesses identify solutions to their acknowledged challenges and red flags (short term), presenting businesses with a Business Spotlight to show we care about their business (medium term), and creating new programs and policies which will address challenges businesses face(long term). Moving forward,there will be monthly updates at the EDA meetings for BR&E for what occurred that month and what it anticipated for the next month. ACTION REQUESTED Listen,give input and ask questions about the 2021 BR&E Program plan. Start preparing for participation in business visits. ATTACHMENTS: Type Description ❑ Exhibit Fall 2020 BR&E Survey Results ❑ Exhibit Second Stage Growth Companies ❑ Exhibit Approved Business Visitor Training Material ❑ Exhibit Approved Business Assessment Survey I n-Person Questions ❑ Exhibit City of Hugo BR&E Summary Report ❑ Exhibit City of Vadnais Heights BR&E Summary Report BR&E Fall 2020 Survey Results 5o businesses in total responded to the Fall 202o 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 Filling 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 g. Health & Beauty Services Services Question #4: How Long Has Your Business Been Operating in Farmington? 17 1 12 2 3 < 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-sg Public Health Emergency? 13 ■No 26% ■YES-LIMITED/PARTIAL 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 1i Responses-26% is Responses- �o% ■FULL BUSINESS ■FULL BUSINESS OPERATIONS OPERATIONS AVAILABLE AVAILABLE ■LIMITED/PARTIAL ■LIMITED/PARTIAL 8162% 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 s, 2020, How Many Employees Were Working At This Business Facility In Farmington? 'Answers Broken Down By Business Size 1-,Total Employees - 22 of the t�o Responses(44%) 5 4 3 2 0 1 ■FULL-TIME ■PART-TIME(YEAR-ROUND) N SEASONAL/TEMPORARY 6-10 Employees - 14 of the lio Responses(28%) 10 8 6 4 7 2 0 ■FULL-TIME ■PART-TIME(YEAR-ROUND) 0 SEASONAL/TEMPORARY 11-20 Employees - 6 of the,o Responses (12%) 15 10 5 0 ■FULL-TIME ■PART-TIME(YEAR-ROUND) 21- do Employees-5 of the 5o Responses(10%) 40 30 20 10 0 ■FULL-TIME ■PART-TIME(YEAR-ROUND) 51+ Employees - 3 of the 5o Responses (6%) 200 6 150 2 100 2 50 0 ■FULL-TIME ■PART-TIME(YEAR-ROUND) SEASONAL/TEMPORARY Question #g: Has Your Employee Count Changed Due to COVID-ig Specifically? ■YES 32 ■No Question#1o: 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, io 28 24 8 E 20 6 16 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 - i Terminated Business of 4 -4 New Hires - 1 Terminated Business of 6 -1 New Hire Business of 7-0.5 Furloughed Business of 8 -i 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 #= 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% t - 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% 4 DECREASED BETWEEN 50%-75% 4 DECREASED BY MORE THAN 75% 4 O 2 4 6 8 10 12 14 ■DECREASE IN REVENUE 13 26% ■NO OBSERVED REVNUE CHANGE ■INCREASE IN REVENUE Generai.ized Answers ■NO ANSWER GIVEN Question #12: Based on Your Selected Answer to Question #11, Hove 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 n 1 7-10 EMPLOYEES 0 11-2o EMPLOYEES a 1 MORE THAN 20 EMPLOYEES 0 NO ANSWER GIVEN g 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 9 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' s) 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. 9. Things depend on what transpires from the closing of rQ6� . My lease contract may allow the landlord to make me pay the CAM costs that were paid by(P�s 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 1111111111111111111111111136 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«^F� 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 IL 9 PAYING THIS MONTHS RENT,MORTAGE,UTILTIES,ETC. 8 LOSING EMPLOYEES 8 ACCESSING GOVERNMENT SUPPORT RELATING TO COVID 7 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 neve 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 (PU iEcc SECT-OP), 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-$180,00o in Federal Tax PLUS the State will take another -$50,00o 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 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% j%; ".,. .k—1 0 2 % 25°J One Year Two - Five Years Optimistic: 83% Optimistic: 91% Pessimistic:9% Pessimistic: 0% 4kY f k r' 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 iiiim 18 TECHNICAL TRAINING FOR SOCIAL MEDIA,WEBSITE DEVELOPMENT,ETC. 11 HOW To PROTECT MY EMPLOYEES FROM COVID-1g aw- 10 PENALTY-FREE EXTENSIONS ON EXPENSES(RENT,UTILITIES,ETC.) 10 HOW TO PROTECT MY CUSTOMERS FROM COVID-1g 8 OTHER 8 INFORMATION ON BUSINESS SUCCESSION PLANNING AML 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 O 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 'ECC) IN NORTHFIELD, ALONG SIDE OF A (BUSINESS), 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 1o+ 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-sg On Your Business?(E.g. 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. SMALL BUSINESS ADMINISTRATION 24 SMALL BUSINESS RELIEF GRANT-DAKOTA COUNTY 7 EMERGENCY ECONOMIC INJURY DISASTER LOANT= (EIDL)-U.S.SMALL BUSINESS ADMINISTRATION El 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-sg.Once The Traditional BR&E Program Is AbLe To Launch After The COVID-sg Pandemic,Would Your Business Be Interested In Being A Participant? 1 2% ■YES ■UNSURE-PROVIDE OUTREACH WHEN THE BR&E PROGRAM STARTS s 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? a ■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' Second Stage Growth Companies in Farmington,MN Company Address Primary NAICS Description No.of Employees-2019 R+L Carriers 5260 208th Street W Specialized Freight Trucking Long-Distance 75 Peerless Plastics 510 Willow Street All Other Plastic Product Manufacturing 75 Aerospace Fabrication 5147 208th Street W Search Detection&Navigation Instruments 65 Industrial Impact Corp 314 Oak Street Temporary Help Services 60 Jit Powder Coating Co 21020 Eaton Avenue Metal Coating&Non-Precious Engraving 56 Bernard Dalsin Manufacturing 5205 208th Street W Hardware Manufacturing 50 C R Fischer&Sons 3240 220th Street W Poured Concrete Foundation&Structure Contractors 35 Dexterity Dental Arts Inc 310 Division Street Dental Laboratories 35 Farmington Gymnastics 315 Elm Street Sports&Recreation Instruction 25 Longbranch Saloon&Eatery 309 Third Street Full-Service Restaurants 22 Installed Building Solutions 21025 Edmonton Avenue Drywall&Insulation Contractors 21 Family Health Medical Clinic 4645 Knutsen Drive Freestanding Ambulatory Surgical&Emergency Center 20 Core&Main Waterworks 5145 211th Street W Other Commercial&Service Industry Machinery Manufacturing 20 Trinity Terrace 3330 213th Street W Continuing Care Retirement Community 18 River's Edge Dental Clinic 18400 Pilot Knob Road,Suite A Offices of Dentists 12 Dakota County Lumber Co 28 Eighth Street Other Building Material Dealers 12 Roundbank 3380 Vermillion River Trail Commercial Banking 12 Golden Grand Homecare LLC 18036 Duncan Circle Home Health Care Services 12 Abundance Homecare Inc. 18836 Englewood Circle Home Health Care Services 12 Sweet Kneads 212 Oak Street Retail Bakeries 10 Crusader Manufacturing Inc. 517 First Street Farm Machinery&Equipment Manufacturing 10 CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ��■�III��� Farmington MN.gov Business Visitor Training Materials—Overview Goal of Business Visitor Training: Prepare the business visitors enough for them to feel comfortable, confident and have fun while collecting solid information on business highlights and concerns. It is important for all interviews to be conducted in a consistent manner and all interview protocols are followed consistently by the business visitors so all business audiences understand the questions in the same way. Introduction and Questions This section is reserved for a broad pool of business visitors outside of city staff and the EDA.This section runs through the overall BR&E program,why the business visits matter and the importance of consistency between all business visits conducted.The EDA ran through this information at the November 2019 EDA meeting and the January 2020 BR&E subcommittee meeting. After the introduction,there will be time dedicated to answering overall questions.We need to have dedicated time for questions before we get into too many details of the training and BR&E program so the objective of the program does not become a debate by the end of the training session,during the details of the training,and/or during survey run-through. Until questions are answered for our business visitors about the overall idea and program for Farmington BR&E,the focus is not on the information/training at hand. We want to ensure that the work we have put into the program does not become overturned and derailed when we expand our pool of business visitors. Benefits of Being a Business Visitor This section is reserved more for business visitor training with the broad pool of business visitors.We want to ease into the training materials with a section on some benefits for the business visitors and provide a platform to thank the business visitors for volunteering their time to conduct business visits. It is fun! • Enjoy socializing with businesses,community leaders and residents. • Participate in helping discover what should be important community and economic factors to focus on to help businesses thrive and grow. Build networks • Build networks with local businesses,community leaders and other business visitors. Learning experience for all • Learn about Farmington's local economic characteristics,strengths and weaknesses from the perspective of local businesses. • Help teach Farmington businesses about current resources available to aid their business. • Gain insight on how Farmington is likely to develop in the future. • Learn new methods for working together with existing businesses. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON 651-280-6800 mill-1119= FarmingtonMN.gov moo • Learn how BR&E efforts can help shape our community and business climate/environment. Unite people together under one common goal/effort • This BR&E process gathers various groups of people (City,City Council, EDA,various Boards and Commissioners,volunteer business visitors and outside groups)to work together to craft benefits for Farmington's local businesses. Business visits are doable and leads to results • Small time commitment—business visit volunteers will need to attend training.After their training, business visitors can visit as many businesses as they wish to participate in and fit into their schedules. • Leads to meaningful results as more and more businesses participate. Each business gives us more data, evidence and proof for various issues and potential program creation. Opportunity to show you care about Farmington businesses • Visiting businesses to ask about their concerns demonstrates that you care about that business, the issues they are facing and you appreciate their economic contributions to the Farmington community. Low risk • We are taking our time to craft a strategic BR&E program plan so the risk of losing credibility, relations and/or trust with businesses should be low. Structure of Business Visitor Roles 2-3 Business Visitors Per Business Visit Visitors should not visit competitors or any business they have a personal association or conflict with. The business visit will include 1 business visitor dedicated to recording answers and 1-2 business visitors asking the questions and facilitating the discussion. Recorder—1 person only During the business visit, one person will be dedicated to writing down all information shared between the business and the visitors.A recording device will not be used,so this will become the official record for what was stated during the business visit. The business visitor who is the dedicated recorded must: Circle responses clearly if applicable and take clear,complete notes of what is being said during the interview. Write as the speaker is talking in order to get the most accurate description of what is being spoken. Don't wait for them to stop talking about the subject to start taking notes. Continue to take detailed notes for each question. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 �rY�/III�IIIIIN W*%, i Farmington M N.gov Understand that you are not going to be asking any predefined questions to the businesses. Remember the responsibility of this role is to record the visit so the BR&E subcommittee, EDA, City Council,and City staff can reliably use the data and information collected. Taking accurate notes is important because the final report is not useful if the data/information from the business visit is missing items/isn't clear. Missing information and unclear items will lead to the inability to create solutions to help our businesses thrive and grow. Question and Conversation Leader(s)—1 or 2 people During the business visit,the remaining business visitor(s)who is not the designated interview recorder will be asking the predetermined in-person questions along with initiating discussion on interesting online survey results.The question and conversation leader(s) must: Ask questions in the order given. Each question has been selected and placed in the survey for a specific reason in topical order. We don't want to skip around with topics, and we want to make sure we exhaust each topic before moving on to a new topic.This set-up allows for more generalized questions to be answered before moving on to more specific/sensitive items in each topic. No one is going to open up immediately,so questions are ordered in a way to provide time where the business owner can get comfortable with the business visitors and vice versa. Ask questions the exact way they are worded. We need the questions asked to be reliable,consistent,dependable,and processed identically by each business so different business audiences understand each question in the same way. We also need to use the answers to these questions as an indicator of the business climate in Farmington,as formal data to be used for changing and creating programs, and as a precedent for future BR&E efforts. By asking each question the exact way it is worded on the page,the meaning of the questions and the corresponding answers to the questions should give us the dependable results we are seeking. If the businesses are unclear about the purpose or meaning of a question, repeat the question as written. Avoid paraphrasing the question because it can add unintentional bias to the question. However, clarification of words is okay if they do not understand. Never suggest an answer,so ask businesses to think out loud if they are stuck or pausing on a question. In addition, if you feel as if you have not gotten enough information from the owner/operator of business and would like them to potentially share more information, probe their answer by asking, "Can you tell us a little more about that?" Business Assessment Survey Review This section is reserved more for business visitor training with the broad pool of business visitors. The business assessment survey is split up into an online and in-person portion to create one full survey.The online survey portion must be completed at least one week before their business visit occurs.This allows city staff enough time to review the online survey responses,fill in the appropriate in-person CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 ���■�® tet FarmingtonMN.gov questions which are dedicated to probing online survey results, and allow the specific business visitors enough time to review the online survey results. Questions included within the in-person survey compliment or provide additional context to the online survey questions.The online survey assessment can be found here: https://www.surveymonkey.com/r/FarmingtonBRE Background Information Review Before conducting the online or in-person survey questions, businesses will be required to review our background information. During the business visit,the business visitors will be the ones who will review the background information page before the in-person questions begin. Reviewing the background information with the business is essential.This is the first thing businesses will see before giving their responses to the survey questions and will provide them context and explanation for our BR&E program and certain rules which are applied for the survey. As business visitors review the background page with each business, it will explain and clarify the BR&E program and provide business visitors an opportunity to express the community's appreciation for their time commitment to our BR&E efforts.The following is the background information the businesses will see along with added explanations of key concepts and rules applied to businesses participating in BR&E efforts. BUSINESS ASSESSMENT SURVEY Background Information We believe our existing businesses are our best prospects for future development. The purpose of this Business Retention& Expansion Program is to identify opportunities to enhance success, encourage the retention and expansion of existing businesses and create partnerships and open lines of communication with local businesses. I. This program is a cooperative effort between the City of Farmington,the Economic Development Authority of Farmington,the subcommittee for Business Retention & Expansion, and volunteer business visitors. II. Business visitors:The business visitors on-site conducting the in-person business assessment survey can be composed of:City Staff,City Council,Advisory Board and Commission members, local/regional groups and citizen volunteers who want to improve business retention and expansion in Farmington.The only obligation for these business visitors is to attend a visitor training before their first business visit and attend in-person business visit(s). III. The objectives of the Business Retention & Expansion Program are: • Form,grow and strengthen relationships with the local business community • Understand our businesses,the business climate and how we can improve it • Show local businesses we care and will listen to their needs • Link businesses with knowledge and connections to potential resources to help solve existing problems CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 ��11 # FarmingtonMN.gov • Fix local policies and ordinances which hinder business growth • Encourage businesses to grow and increase their ability to compete in the global economy • Gather and analyze data to validate existing strategic plan for economic development IV. Confidentiality Rule:Your individual answers to this survey are confidential and will not be released except as required by law.Your responses will be summarized with those of other businesses in Farmington to produce an overall result in percentages and averages. If we find an issue in your survey response in which a certain individual or individuals may be able to respond to your concern in a beneficial way,you will be asked at the end of the survey whether you authorize us to release your survey information to them. *What It Means:All business responses during the BR&E program will be subject to confidentiality for all individual answers to the online and in-person survey.This means that there will never be a public BR&E summary released for what a specific business said about any topic inquired about.This is true for all businesses despite their answer to the release of data form. Business visitors will have access to review a specific business's online responses before they attend the in-person business visit without breaking the confidentiality rule.The confidentiality rule may increase business response rates as this rule may provide comfort to businesses worried about publicly giving their perspective on the business climate in Farmington. V. The Skip It Rule: If there is a question you wish to skip,for any reason, please do so and let us know.There is no need to explain your reason why. *What It Means:The skip-it rule allows businesses the opportunity to opt out of any question they may not want to answer.This means that every single question asked to each individual business has an "opt out/skip"answer available.The business does not need to explain why they are skipping a question, and the business visitors are not allowed to ask why. The purpose of this rule is to allow businesses who volunteer their time to help us with BR&E efforts the ability to withhold information if they wish to do so. Release of Data Form After completing the online and in-person survey, businesses will be required to review our release of data form. Each business must select an answer and sign to acknowledge their choice.The purpose of the release of data form is to properly direct potential assistance (city,county, and state staff; DEED; CDA;etc.)to identified business issues after their business visit. If the business selects yes. *What is means:The BR&E team can share survey responses and business contact information for a specific business only to individuals or groups who would be beneficial in helping solve CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov business concerns so the resource may understand the business and concerns better. It will not get released to the public. If the business selects no. *What it means: By selecting no, businesses will receive a standard general list of information relating to a wide variety of programs which may aid their business.The businesses will be responsible for contacting those in charge of these programs themselves. Business Visitor Don'ts As a business visitor,do not: Get defensive or take offense to the business's opinions and answers to the business assessment survey. • Business visitors are there to listen and record what businesses have to say.We aren't there to defend anything, promise anything, or give our opinion. We are there to listen to what they have to say(a.k.a.their opinion). Promise solutions to their problems • If they demand a solution,or if they ask, "What are you doing to fix this?", remind them of the purpose stated in the Background Information before the online and in-person questions: o The purpose of this Business Retention& Expansion Program is to identify opportunities to enhance success, encourage the retention and expansion of existing businesses and create partnerships and open lines of communication with local businesses. In addition, • Remind them that one reason for doing the BRU business visits is to build an understanding of business problems in our community. We need to hear the needs from each specific business so we can identify what solutions would be good for the business community as a whole. If we hear similar answers from multiple businesses in the community this can provide the support needed to make the necessary changes these businesses seek. • Remind them that their voices are being heard by participating in our BRU efforts. • Remind them we will not be able to create individual benefits for each business issue found.This process is to use the collected data to reach a consensus on high-priority efforts and potential action-based strategic plans which will lead to projects and programs. Day of Business Visit Business Visitor Training Business visitor reminder tips will get sent out to each visitor before each business visit as a refresher of the different roles, responsibilities, and requirements of the business visit. Business visitors will need to review the visitor tips, roles and responsibilities before attending each business visit. O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 0000010-1 (D Farmington MN.gov In-Person Business Visit Packets and Materials: If city staff is one of the business visitors attending a specific business visit,that staff person will be the ones providing the in-person packet materials to the business visit. However, if city staff is not one of the designated business visitors,someone from the group will need to pick up the packet from City Hall after the online survey questions have been completed and incorporated into the in-person questions. This information will be ready for pick up starting three business days before the in-person business visit.The online survey currently has a due date of one week prior to the business visit so city staff has time to prepare the personalized details of each in-person interview.This timeline will become refined as needed. On Site Business Visit Businesses are volunteering their time to help us with our BR&E efforts,so it is important to arrive 10 minutes early prepared and ready for the business visit. When you meet the person you will be interviewing, introduce yourself and allow the business owner/operator the opportunity to introduce themselves. Conducting business visits in a professional and appropriate manner is imperative. Remember you are at their business—be aware of your actions,your body language, and your overall tone.To that specific business,the business visitors are the face of the BR&E program. Your interactions with them are what they will remember. We want to make sure we are taken seriously and given real genuine data. We want them to trust us and feel comfortable enough to tell us the truth. It is great to hear the positives, but we also need to gather data on potential weaknesses and threats faced by the business and the business climate in Farmington. Potential Business Plant/Operation Tours We will clarify with each business whether or not they plan on giving a plant/operation tour before or after the in-person business visit so each business visitor is aware of shorter vs longer time commitments with businesses. If a plant/operation tour was not planned but is offered on the spot, accept if you have time and deny the offer graciously if you do not have the time to commit. Required Follow-Ups for Business Visitors Day of Business Visit After the business visit is over,there are three important steps business visitors must follow. 1. Immediately after the visit:the visitor responsible for recording the business visit must finish writing down important details from the discussion, debrief with other business visitors to ensure important information was written down, and write a final summary if they feel it is necessary. • Write down/circle anything you think may be a red,yellow, or green flag item. o Red flag: something which might limit a business or lead it to closing, selling, leaving, or downsizing and needs to get addressed immediately. o Yellow Flag:something which might limit a business or lead it to closing, selling, leaving, or downsizing.The issue is not urgent, but it needs to be on the radar to be addressed in the future and monitored for changes. 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington MN.gov o Green flag:something which might lead to business expansion/investment in Farmington, jobs,etc. Examples of some red and yellow flags: • Ex: St. Paul, MN—A business owner mentioned in a BR&E visit that they might be forced to close due to a fire code problem.The BR&E program contacted the St. Paul Port Authority who worked with the business and the fire department to develop a solution which led them to staying in business and keeping 124 jobs. • Ex: Harrisville,W.VA.—Multiple businesses were losing business and missing shipments because the road into Harrisville was poorly marked.The BR&E program worked with state government to correct the signage/wayfinding issue • Ex: Grants Pass, OR.—A business owner mentioned they will need to upgrade their equipment within the next 5-7 years in order to keep up with industry standards and increase their efficiency.They were worried about not being able to afford the necessary upgrades. The BR&E program worked with county government to connect the business with a financing cost share program for eligible equipment upgrades. The business was able to receive a grant to help upgrade equipment 3 years after the interview. 2. All business visitors need to sign a thank you card which will get mailed to the business immediately. The thank you card will be provided in the in-person business visit material envelope for business visitors to sign. 3. If there are no city staff included in the business visit, one of the business visitors needs to drop off the in-person information and paper work to City Hall the same day as the visit occurs. If no one from the business visitor group is able to drop the information off at City Hall, staff can make arrangements to pick up the information. All in-person information needs to be returned in the sealed/metal pinned envelope provided. Final Questions This section is dedicated to answering any lingering questions. CITY CF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 rlllll�� Farmington MN.gov BUSINESS ASSESSMENT SURVEY—In Person Questions BUSINESS NAME: Address: City: State: Zip Code: Phone: Website: PERSON INTERVIEWED: Job Title: Date of Visit: Email: PERSON INTERVIEWED: Job Title: Date of Visit: Email: OTHER KEY OFFICIALS IN THE ESTABLISHMENT(Owners, Managers,etc.): BUSINESS VISITORS: CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov BUSINESS ASSESSMENT SURVEY Background Information We believe our existing businesses are our best prospects for future development. The purpose of this Business Retention& Expansion Program is to identify opportunities to enhance success, encourage the retention and expansion of existing businesses and create partnerships and open lines of communication with local businesses. I. This program is a cooperative effort between the City of Farmington,the Economic Development Authority of Farmington,the subcommittee for Business Retention & Expansion, and volunteer business visitors. II. Business visitors:The business visitors on-site conducting the in person business assessment survey can be composed of: City Staff, City Council,Advisory Board and Commission members, local/regional groups and citizen volunteers who want to improve business retention and expansion in Farmington.The only obligation for these business visitors is to attend a visitor training before their first business visit and attend in person business visit(s). III. The objectives of the Business Retention & Expansion Program are: • Form,grow and strengthen relationships with the local business community • Understand our businesses,the business climate and how we can improve it • Show local businesses we care and will listen to their needs • Link businesses with knowledge and connections to potential resources to help solve existing problems • Fix local policies and ordinances which hinder business growth • Encourage businesses to grow and increase their ability to compete in the global economy • Gather and analyze data to validate existing strategic plan for economic development IV. Confidentiality Rule:Your individual answers to this survey are confidential and will not be released except as required by law.Your responses will be summarized with those of other businesses in Farmington to produce an overall result in percentages and averages. If we find an issue in your survey response in which a certain individual or individuals may be able to respond to your concern in a beneficial way,you will be asked at the end of the survey whether you authorize us to release your survey information to them. V. The Skip It Rule: If there is a question you wish to skip,for any reason, please do so and let us know.There is no need to explain your reason why. Copyright © 2019, Regents of the University of Minnesota Connecting Businesses and Community Program and Greater MSP Common Questions Survey Reporting Form. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington MN.gov GENERAL QUESTIONS 1.We have had time to review your online survey questionnaire responses. Do you have any questions for us before we ask some additional questions? 2.Tell us more about who you are,your background in this business,and what your position,roles, and responsibilities are at this business. 3. Do you live in the Farmington community?If not,where do you live in? 4.What is the biggest accomplishment for this business in the last three(3)years? CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington MN.gov BUSINESS PRODUCTS&SERVICES 5.What are your primary products and services at this establishment? List all major products or What percentage(%) of total Are sales of this product: services offered by this sales comes from each? A) Increasing establishment (The total of this column B)Stable should equal 100%) C) Decreasing 6. Do you believe your products/services have special and unique qualities which give your business a competitive advantage? a.Yes b. No c. I don't know/Unsure If yes,what is special and unique about your products/services which give your business a competitive advantage? CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 llur` O Farmington MN.gov If no or unsure,is there anything limiting your business from producing special and unique products/services(e.g. newer technological equipment)? 7.Why would a customer choose you over your competition? CHANGES/INVESTMENT PLAN 9. Based off of the response from question 43 of the online survey,you said(we will provide what answer they selected before the business visit),when is this business facility planning on taking action on your consideration response? CITY 4F 0 43o Third St., Farmington, MN 55024 FARMINGTON 0 651-28o-6800 Farmington MN.gov COMMUNITY FACTORS 10. Do you have any suggestions for improving any importance or satisfaction items from question 48? (City staff will review these specific responses before the visit and inform business visitors on which low/high rating responses to probe). CITY OF O 430 Third St„ Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington MN.gov 11.What is your overall opinion of the Farmington community(i.e.where your business is): a.As a place to conduct business? b.As a place to live? BUSINESS CONCERNS 12.What is the most significant change you believe would improve your business experience and activities?(e.g. new policies/changes to current policies, new equipment,additional training for staff, programs for helping with facade improvements,etc.) CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON 651-280-6800 ���IIIIIIIIIII O Farmington MN.gov 13.Are there any other specific or general concerns you would like to see addressed which would improve all Farmington businesses? CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov 14. Probe other interesting survey results. (City staff will review online questionnaire responses before each business visit and inform business visitors on what other responses should be probed. Businesses and business visitors will also receive a copy of the online questionnaire results before the business visit for their own review and preparation). 15. We want to hear from you.What are some priorities the BR&E team should focus on which can help your specific business,as well as all existing businesses in the Farmington community,grow, thrive and expand? CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON 651-280-6800 OFarmington MN.gov 16.Additional comments: CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 OFarmington MN.gov Release of Data Form If the BR&E team finds an issue in your survey response in which a certain individual(city, county, or state staff)or group of individuals (EDA,CDA, DEED, etc.) may be able to respond to your identified concerns in a beneficial way,do you authorize the BR&E team to release your survey information to them? (Circle one answer) 1. Yes. Your contact information from the business assessment survey will be shared with the resource person(s)to aid them in understanding your company and the concern. Please sign here to authorize release of your survey information to appropriate,selected resources: 2. No. The BR&E team will provide you with information about the resources available to assist you and you will make the first contact with the resources.The resource person(s)will not have access to your survey. Thank you for participating in the City of Farmington's Business Retention& Expansion Program. We appreciate the time you have given us and the contribution your business is making to the local economy. We cannot promise to solve the concerns you mentioned in this survey and during the business visit, but the BR&E team promises to analyze all data we receive to try and formulate solutions to common issues. Copyright© 2019, Regents of the University of Minnesota Connecting Businesses and Community Program and Greater MSP Common Questions Survey Reporting Form. HUGO Business Retention and Expansion Summary Report April 2010 Sponsors: • CONNEXUS'" City of L xceffinergy• Hugo ENERGY Rti/Rbf lRtt Rf MRtY1l` Your Community Energy Partner LAKE AREA BANK HUHUGO �_` friends SerNng A'elghbom Since l9li rA%.m Premier WSB 1010MBanks &A.csocialcc,Inc. In collaboration with: NIVERSITY OF MINNESOT XTENSIO psi 'y {/Department oriemployment a and Economic Development or Innes�lc Hugo Business Retention and Expansion Strategies Program Summary Report April 2010 Written by: Brigid Tuck University of Minnesota Extension Center for Community Vitality For more information about the Hugo BR&E Program contact: Rachel Simone City of Hugo Associate Planner (651) 762-6304 rsimone@ci.hugo.mn.us Bruce Schwartau Extension Educator in Community Economics University of Minnesota Extension 507-536-6308 bwschwar@umn.edu The University of Minnesota is an equal opportunity educator and employer. Hugo Business Retention and Expansion Program Sponsorship Communities recognize that helping This program is sponsored by the City of existing businesses to survive and grow Hugo, the Hugo Economic Development is a vital economic development Authority, Connexus Energy, Xcel strategy. The Hugo Business Retention Energy, Hugo Business Association, and Expansion Program (BR&E) is Lake Area Bank, Postal Credit Union, designed to assist local businesses in Premier Bank, Reimer Photo, and WSB thriving and expanding in the city. While and Associates. the attraction of new businesses and new business start-ups are important BR&E History components of any economic development strategy, research has The Hugo BR&E Leadership Team shown that forty to eighty percent of new approved entering into the Business jobs are created by existing businesses Retention and Expansion Program after being accepted into the program by rather than by businesses new to the community. University of Minnesota Extension. The first Leadership Team meeting took The Hugo BR&E Program is a place in July of 2009. comprehensive and coordinated approach to assisting existing businesses. Visiting current businesses Business Visits and learning their concerns is only one A total of 38 businesses were visited by component of the process. The BR&E volunteers during the business visitation program builds awareness in the phase. The Leadership Team and Task community of issues that face Force's goal was to visit an equally businesses and builds capacity for the community to address these issues. representative sample of businesses The program also assists local leaders from each major industry classification and community members in working in Hugo. Businesses were selected together to provide solutions to business randomly from within each classification. concerns. During the months of October, Objectives November and December of 2009, the Leadership Team, Task Force and The Hugo BR&E Program has five Volunteer Visitors conducted the objectives: business visits. The teams had initially identified 70 businesses for visitation. 1. To demonstrate support for local Visitors worked in teams of two and took businesses responsibility for arranging and 2. To help solve immediate business conducting the interviews. concerns 3. To increase local businesses' ability Warning Flag Review to compete in the global economy 4. To establish and implement a plan After the surveys were completed and for economic growth and returned, the Task Force met to review 5. To build community capacity to each survey and decide how to handle sustain growth and development. the immediate follow-up. The Warning ©2010 Regents of the University of Minnesota.All rights reserved. 1 Flag review is designed to identify and deal with immediate issues or problems The Task Force reviewed and discussed discovered during the survey process, the potential projects and developed without the need to wait for formal new projects. In the end, the Task analysis of the survey data. Prompt Force established and adapted four attention to issues raised, even when priority projects. These priority projects the issues may be intractable, creates a are featured in this report. positive response from survey participants and builds good will. Following the Task Force Retreat, the individual project committees met to Research Report Development discuss methods for implementing the projects. Lisa Hinz, University of The BR&E Leadership Team sent Minnesota Extension, helped provide copies of the surveys to the University of leadership at this follow-up meeting. Minnesota for tabulation and analysis. The project committees will continue to A summary of the data was prepared for meet. If you have ideas, time, or other the January 7, 2010 state research talents to contribute to these projects, review meeting, where a team of fifteen please contact one of the people listed. individuals (listed later in this report) Your participation would be appreciated. reviewed the results and suggested projects that might respond to the People in the Hugo BR&E businesses' needs. Brigid Tuck then Program prepared the Research Report based on the input of the state research review Leadership Team panel as well as economic development expertise. Overall Coordinator- Rachel Simone, The Research Report identifies four City of Hugo overarching strategies that Hugo could Associate Overall Coordinator-Shayla adopt to address general issues reported by the businesses. The Syverson, City of Hugo Research Report then provides a list of Business Resource Coordinator-Beth potential projects under each of these Jameston, Department of Employment strategies. The Task Force has the and Economic Development knowledge of the community and what projects are suited locally. The potential Milestone Meeting Coordinator- Pat projects are only suggestions for the Nygaard, Hugo Community Leader community to consider. Task Force Retreat Visitation Coordinator- Galen Carlson, Hugo Business Owner A five-hour Task Force retreat was held Media Coordinator- Deb Barnes, The on February 8, 2010 in Hugo. At this retreat, the Task Force was presented Citizen Newspaper the Research Report. The presentation Hugo BR&E Task Force included an overview of the Hugo and Washington County economy and Many community leaders participated as demographic changes, the composite Task Force members. This group results of the business surveys, and the four strategies. visited businesses, addressed warning ©2010 Regents of the University of Minnesota.All rights reserved. 2 flag issues, set priorities for action and Mike Gallivan, Gallivan Insurance will assist in implementing the chosen Margo Geving, Hugo Good Neighbors projects. Task Force members (listed Food Shelf and Forest Lake Area below) also participated in business Schools visits. Brant Gustafson, Postal Credit Union Matt Alexander, Kraus-Anderson Dennis Hegberg, Washington County Commissioner Jan Arcand, Hugo Economic Joe Houle, Premier Bank Development Authority& Oneka Ridge Beth Jameston, Washington County Golf Course WorkForce Center Duane Arens, Connexus Energy Phil Klein, Hugo City Councilmember Bridgett Backman, Century College Jim Leroux, Former Hugo City Deb Barnes, The Citizen Newspaper Councilmember Bryan Bear, Executive Director of the Mike Lovett, Superintendent, White Bear Economic Development Authority and Lake Area Schools Community Development Director Steve Marier, Hugo Feed Mill Duane Bengston, Hugo Community Larry Martini, Business Services, Forest Leader Lake Area Schools Duane Berg, Wilson Tool Mary McNellis, St. Croix Real Estate Karyn Berg, Ramsey County WorkForce Mickey Michlitsch, Sertinos Caf6 Center Pat Nygaard, Hugo Community Leader Jim Bever, Hugo Economic Pete Pederson, Former Hugo Parks Development Authority and Bever Commissioner Landscaping Karen Bever, Bever Landscaping Frank Puleo, Lebens Flower Shop and former Councilmember Lenore Birch, White Bear Lake Area Kerstin Quigley, Lake Area Bank Schools Breen, Northern Lights Pediatrics Katie Riopel, Katie's K-9 Obedience Patti Galen Carlson, North Country Auto School and Hugo Lions Club Body Denny Route, Hugo Lions Club Shelly Clasen Tesser, Administrative Julie Route, Hugo Lions Club Intern, City of Hugo Keith Ryskoski, Superintendent, Minnesota House of Stillwater Area Public Schools Matt Dean, Representatives Bruce Sayler, Connexus Energy Bob Dettmer, Minnesota House of Molly Seidl, Kraus-Anderson Representatives Steve Seidl, Kraus-Anderson Sharon Dierkhising, Hugo Community Rachel Simone, Associate Planner, City Leader of Hugo Deb Drake, Hugo Community Leader Shayla Syverson, Economic Kris Emerson, Hugo Good Neighbors Development/Parks Intern, City of Hugo Food Shelf Nikki Walters, Sun Barn Farms and Wild Randy Engelmayer, Country Financial Wings of Oneka Michael Ericson, City Administrator, City Tom Weidt, Hugo City Councilmember of Hugo Angie Fromm, Guys and Dolls Salon 02010 Regents of the University of Minnesota.All rights reserved. 3 Businesses Visited Consultants Thirty-eight businesses were visited Bruce Schwartau and Liz Templin, during the BR&E process. The University of Minnesota Extension, community greatly appreciates their served as the BR&E consultants for the willingness to help the community Hugo BR&E program. This included understand their needs. Their survey coaching and advising the local responses are confidential yet it is Leadership Team, conducting Volunteer important to credit their participation by Visitor training with the Task Force, listing their names here. assisting the Leadership Team in business selection, facilitating the American Legion Warning Flag review meetings, and Bald Eagle Sportsman Association participating in the State Review Panel. Carpenter's Steak House Chips Computer Service State Research Review Panel Cornerstone Chiropractic Country Video The panel reviewed the tabulated Discovery Financial Brokerage survey results and suggested potential Kurt Grainger Enterprises actions that might be taken by Hugo Gene's Disposal Service leaders in response to local firm Grundhofer's Old Fashion Meats concerns. The participants of the Gunner Construction January 7, 2010 meeting were: Health East Hugo Clinic Hugo Chiropractic Minnesota Department of Employment JL Schweiters Construction and Economic Development: JT Services Inc • Ed Dieter Katie's K-9 Obedience School • Gene Goddard Key Automotive KWIK Trip University of Minnesota: Lake Area Bank • Michael Darger, Extension Lametti &Sons Inc • Liz Davis, Applied Economics Los Ninos Spanish Preschool . Lee Munich, Humphrey Institute Manomin Resawn Timbers . Bruce Schwartau, Extension Oneka Pet Resort . Brigid Tuck, Extension Oneka Ridge Golf Course . Ward Nefstead, Applied Economics Premier Banks Reimer Photo Hugo Task Force: Sertinos Cafe . Duane Arens Subway • Bryan Bear TGK Automotive • Karyn Berg The Citizen • Galen Carlson The Fry Group Trepanier Stucco LLC Michael Ericson US Bank Rachel Simone White Bear Trailer Works Shayla Syverson Wild Wings Game Farm Wilson Tool Withrow Elementary School Woodrunn Horse Boarding 02010 Regents of the University of Minnesota.All rights reserved. 4 Hugo's Economic and Hugo BR&E Survey Results Demographic Profile Following are the results of the survey of A profile of Hugo's economy and the 38 businesses visited. The demographics was prepared for the businesses' characteristics are Research Report and presented at the summarized first followed by priority Task Force retreat on February 8th. projects selected by the Task Force. The profile was created and written by Survey results related to those projects Rachel Vilsack of the Minnesota are included in this summary. Additional Department of Employment and survey results including four strategic Economic Development. The profile themes are in the Research Report. contains statistics on population, employment, income, commuting and Characteristics of Businesses Visited labor sheds, occupations and educational attainment. Eighty-four percent of the businesses that participated in the Hugo BR&E A full copy of the profile can be viewed survey are locally controlled, shown in in the Research Report which can be Figure 1. obtained by contacting Rachel Simone, City of Hugo, at (651) 762-6304. Figure 1: Business Ownership No Response Branch 5% 8% + Franchise 1.1itif :-.....++ J•J•f•r• 1.1.1.1.1 +.+...+. i.r•r•r•r• 30/ L.1.ti.ti.1. +....+.... o f{r4:tirtijtir ♦.+..+++++♦ •r•r•r•r• •J•J•J•J Locally �,:f� ............. Owned Operated, Multiple iiiiiiiiiiiiiiiiiiiiiiiiiii+ Locally ..+....................... Owned / Locations •++++++++++++++++++++++++ o Operated, 8% ♦+.++....+++..+.++++♦ ................ One Location 76% ©2010 Regents of the University of Minnesota.All rights reserved. 5 Seventy-six percent of the participating the businesses surveyed intend to businesses are locally owned with one decrease their work force in the next location and eight percent are locally three years. Roughly one-fifth of owned with multiple locations. One businesses expect to add employees in conclusion that can be drawn from these select job categories in the next three results is that many decisions regarding years. Hugo businesses are made locally. Overall, the survey results indicate that The businesses visited employ a total of businesses in Hugo are hopeful for the 599 full-time employees and 224 part- future. As shown in Figure 2, only one time employees. Overall, employment of the responding businesses indicated is down 220 jobs from three years ago. that they are considering closing and Full-time employment is down 324 jobs none are contemplating downsizing. while part-time employment is up 64 Nearly a quarter of the businesses (24 jobs. This downturn is consistent with percent) are considering expanding at the economic recession experienced in their current location and another the United States during this time thirteen percent in another location. The period, although it looks like the majority of businesses indicated they participating Hugo businesses took a were not currently considering any harder hit. Businesses appear to changes. believe that the recession's effects are waning for their businesses. None of Figure 2: Future Plans No Changes Planned Expanding at This Location Other Changes Expanding at Another Location Merging Moving Selling Closing Downsizing 0 2 4 6 8 10 12 14 16 ©2010 Regents of the University of Minnesota.All rights reserved. 6 Finally, businesses report Hugo as a 3. Host Business and Breakfast good place to live. On a scale of 1 to 5, Workshop(s) 5 being "excellent" and 1 being "poor", 4. Address Highway 61 Access Issues the average response to the question and Improve Downtown Hugo "What is your overall opinion of Hugo as a place to live"was 4.16. A similar Priority Project#1: Market the question, "What is your overall opinion City of Hugo of Hugo as a place to conduct business" earned an average of 3.79. Increased exposure can help businesses generate profits. Exposure Overview of BR&E Projects for to consumers, to other businesses, and Hugo to new business opportunities, for example, can all provide businesses Profits are the key to the retention and with avenues to generate more revenue expansion of firms. While the owners of and greater profit. For some a business might be attracted to a place businesses, the highest priority is direct because it is a nice place to live or raise exposure, through advertising or a family, a business can only survive if it promotion, to the individual consumer. makes a profit. The same is the case For other businesses, it's paramount to for businesses that start in the gain exposure to other businesses that community. The owners may be loyal to may present an opportunity for the community, but if they cannot make business-to-business sales. Hugo their business profitable they will close businesses could profit from greater or move it; they do not have a choice. exposure of the City of Hugo itself. In a market economy, making a profit is Related Survey Results the responsibility of business management and its employees, not Businesses in Hugo value small town community groups, local or state atmosphere and charm. When asked to governments. However, the actions of rate from a list of community features these groups can sometimes help which features have a positive impact, businesses become slightly more no impact, or a negative impact on their profitable. The priority projects outlined business, Hugo businesses awarded below are aimed at helping businesses "small town atmosphere" an average of become more profitable and thus be 1.34 (2.0 = very positive impact; 0 = able to survive and grow in the neutral), making it the most highly rated community. community feature. "Freeway access" (1.13) and "festivals and events" (0.79) Hugo BR&E Priority Projects rounded out the top three community features. None of the eighteen features The following four priority projects were received a negative score. selected at the Task Force retreat held Project Plans from the Committee: in Hugo on February 8, 2010. This project is based on several 1. Market the City of Hugo potential marking strategies that all 2. Create, Coordinate, and Encourage relate to the City of Hugo and its Events businesses. Each item falls under an idea for a marketing plan for the City ©2010 Regents of the University of Minnesota.All rights reserved. 7 that would consist of public relations, Priority Project#2: Create, advertising, and sales. There were Coordinate, and Encourage several indications within the BR&E Events surveys that suggested that businesses wanted help promoting their business Businesses thrive in attractive with an emphasis on advertizing. Over communities. These attractive the next several months the project communities have amenities and team will be working on putting together opportunities that draw resources the a marketing plan for the City and businesses require. These resources incorporating ways to help the can be quite varied, ranging from quality businesses in Hugo. The marketing plan employees to tourists to developers to will also help recruit new businesses complimentary businesses to into the City. Some of the goals for the infrastructure. Businesses need these marketing plan include a City slogan, resources to be successful and multimedia campaign, visitor guidebook, profitable. Events could potentially help and tradeshows. The project team the City of Hugo be more attractive. suggested that the City partner with the local business associations to put Related Survey Results together portions of the marketing plan for the City. Responding businesses perceive Hugo This committee will be led by Rachel as a great place to live. When asked to rate their overall opinion of Hugo as a Simone, Tom Weidt, Louis Melamed, place to live, where 1 equaled "poor" Michele Tesser.Backman, Gretchen Boyd and and 5 equaled "excellent", businesses Michele gave Hugo an overall score of 4.16 or "very good", see Figure 3. Figure 3: Overall Opinion of Hugo As a Place to Live 1=Poor 2=Fair 0% 5% 3=Good •iiiiii 16% 5=Excellent 42% ♦iiiiiiiiiiii a 4=Very Good 37% ©2010 Regents of the University of Minnesota.All rights reserved. 8 No business responded that Hugo was encourage biking, hiking, skiing and a "poor' place to live. running would draw outside visitors to Hugo. Encouraging healthy family- Businesses were asked if certain friendly activities would benefit the life- community features had a positive styles enjoyed in Hugo. The residents impact (+2), no impact (0), or a negative of Hugo support community events and impact (-2) on their business. The there is the potential for additional community features having the most offerings which promote local positive impact were small town businesses. atmosphere (1.34), freeway access (1.13), and festivals or events (0.79). This committee will be led by Shayla The community features having the Syverson, Patti Breen, Mike Gallivan, least positive impact were lodging Kate Riopel, and Duane Berg. facilities (0.03), museums and historic sites (0.11) and meeting facilities (0.32). Priority Project#3: Host Business and Breakfast Workshop(s) Project Plans from the Committee: Profitable businesses tend to have This project consists of supporting efficient, knowledgeable, and skilled existing events and brainstorming owners, managers and employees. A additional events that have an economic business owner must not only have a impact on Hugo. Hugo has several marketable product, but also the skills existing community events which are and abilities to bring that product to well-planned and have grown in the last market at a profit. Trained and skilled few years. These events have been employees can assist business owners developed and promoted by in achieving that goal. Business and organizations such as the Lions Club, Breakfast Workshop(s)would give local Hugo Business Association, Oneka PTA business owners an opportunity to be and other community groups. One of the exposed to training opportunities and most well known community events to other resources as well as to information support is Hugo Good Neighbor Days. about City activities. The project team will work with the Lions Club to further promote and expand this Related Survey Results event. The project team will encourage the organizers of existing community events to coordinate with businesses Overall, businesses in Hugo appear to and take advantage of opportunities for be satisfied with the quality and business promotion. availability of the labor force in and around Hugo. When asked to rate their The project group will also brainstorm employees with respect to their attitude other events, as a part of a two to three towards work and their productivity on a year plan. A number of very exciting scale, where 1 equaled "poor' and 5 possibilities have already been equaled "excellent', the average score discussed: a park bonfire, sledding for both attitude and productivity was party, pet fest, music in the park, golf 4.4. No business rated employees as tournament and triathlon. Also, either poor or fair with respect to either developing a charity motorcycle run to of these measures, as evidenced in draw a large contingent of motorcycle Figure 4. enthusiasts to local businesses is an option. Creating and expanding trails to ©2010 Regents of the University of Minnesota.All rights reserved. 9 Figure 4: Employee Attitude 2=Fair 1=Poor 0% 0% 3=Good ...i 12% ........... ........... 5=Excellent ♦........... 55% ♦ 4=Very Good 33% This committee will be led by Mike Project Plans from the Committee: Ericson, Duane Arens, Bruce Sayler, Galen Carlson, and Mickey Michlitsch. This project is based on the survey results that stated businesses wanted Priority Project#4: Address ways to network with each other. The Highway 61 Access Issues and project team recommended having a Improve Downtown Hugo business breakfast workshop with a speaker and a time to socialize. The Just as loving a community does not business and breakfast can be thought ensure profitability for a business; of in many forms, for example, brunch, profitability does not ensure a business lunch and dinner socials. One of the will remain loyal to a community. main ideas was having an annual "State Businesses may also consider a host of of the City" speech from the Mayor of factors when deciding to remain in a Hugo and also bringing in County and community or to move to another. State officials in to speak to the Businesses need quick, easy access to business owners. This would give an their businesses for both their opportunity for the businesses to customers and their suppliers. They interact with their local, County and may also prefer to be located in a State officials. The project team will be community with an attractive, thriving brainstorming over the next few months downtown. on how to accomplish their goals to provide a new way for businesses to Related Survey Results network and exchange information with their officials. Businesses appear to have mixed opinions of Hugo as a place to do business. ©2010 Regents of the University of Minnesota.All rights reserved. 10 Figure 5: Overall Opinion of Hugo As A Place to Conduct Business 1=Poor 2=Fair 5=Excellent 0% 11% 21% ...i .......... ........`.` ............ 3=Good ............. ♦...........T 21 ......... Y mg `w.<YI`3R+aHw Mt =="e ...exm 4=Very Good 47% Businesses were asked to rate Hugo as group was presented with the a place to conduct business on a scale Memorandum of Understanding for where 1 equaled "poor" and 5 equaled Highway 61 between the City, "excellent". The average score for the Washington County and the State of businesses' responses was 3.79. This Minnesota on the access to the translates into a rating between "very highway. This was something the good" and "good", which is slightly lower members did not previously know about than the score typically seen in other and will learn more about as the project communities. Responses to the team meets. question are shown in Figure 5. Within the survey there were three retail However, businesses are also being factors that were chosen as the most attracted into Hugo. One of every three important to be improved. These three responding businesses started in were variety of businesses, exterior another community and moved into atmosphere, and variety of places to Hugo. eat. This project team will also be working on tasks to improve the Project Plans from the Committee: downtown by eliminating blight and attracting new businesses with an This project started because access to emphasis on quality. As the project Highway 61 was identified as a concern team meets there will be an outline of businesses located in the downtown created on how to implement the goal of area of Hugo. They wanted to make improving the downtown area. sure that there was adequate access to their businesses as the highway is This committee will be led by Bryan improved.At the implementation Bear, Jan Arcand, Steve Marier, and meeting on February 16, 2010, the Richard Fischer. ©2010 Regents of the University of Minnesota.All rights reserved. 11 AAAI ♦ The Task Force selected the priority projects. This summary report was prepared by Brigid Tuck, University of Minnesota Extension Center for Community Vitality, Community Economics. Editorial assistance was provided by Bruce Schwartau and Michael Darger of University of Minnesota Extension. Task Force members also contributed to this report. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Please contact Brigid Tuck at 507-389- 6979 or email at tuckb(d-)umn.edu. University of Minnesota Extension is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation. ©2010 Regents of the University of Minnesota.All rights reserved. 12 Vadnais Heights Business Retention and Expansion Strategies Program SUMMARY REPORT September 2016 Authored by Monica Haynes and Gina Grensing University of Minnesota Duluth Bureau of Business and Economic Research Edited by Michael Darger, University of Minnesota Extension Sponsors: Vadnais Heights Economic Development Corporation (VHEDC) City of Vadnais Heights Xcel Energy Connexus Energy Minnesota Chamber of Commerce Minnesota Department of Employment and Economic Development University of Minnesota Extension Sponsors: VHED(... I F MI • Vadnais Fleigiits Economic COMMERCE • Development Corporation GROW MINNESOTAI Xcel Energy • CONNEXUS` ,r ENERGY UNIVERSITY or MINNESOTA r Yaur Community Energy Partner SiEXTENSION t"Innef&za- (D 2016 Regents of the University of Minnesota. All rights reserved.University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act,this material is available in alternative formats upon request.Direct requests to the Extension Store at 800-876-8636. 6)Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. V,�il ZA- VADNAIS HEIGHTS BR&E 1 VADNAIS HEIGHTS BUSINESS RETENTION A final benefit of a BR&E program is how the AND EXPANSION PROGRAM process enhances the team of local leaders. The BR&E program team is much broader than many Business Retention and Expansion(BR&E)is a other local economic development teams, key element of local economic development including representatives from education and efforts.While the attraction of new businesses government in addition to business and and incubation of start-ups can be important economic development leaders.This diverse components of an overall economic membership allows the local BR&E task force to development strategy, communities now bring in more resources,ideas, and contacts to recognize that helping existing businesses address problems identified in the survey. Quite survive and grow is the strategy that pays the often,this local team will continue to interact most dividends for economic development. and address other community concerns that Expansions and contractions are defined as arise long after the official program has ended. changes in employment at an existing plant or Program Objectives business location. Start-ups and dissolutions are The Vadnais Heights BR&E Program has five defined as the creation or closing down of a objectives: separate plant or business location. The "churning"of business creation, dissolution, • To demonstrate support for local expansion, and contraction is a natural part of a businesses; local economy. The BR&E challenge to a . To help solve immediate business concerns; community is to facilitate the expansions while taking preventative actions to reduce the To increase local businesses'ability to number of dissolutions and diminish the compete in the global economy, contractions. . To establish and implement a strategic plan Commonly,more jobs are created by business for economic development; and, expansions than by new business start-ups. . To build community capacity to sustain Minnesota data from 2014 confirms that more growth and development. than 75%of new jobs in the state were created by existing business.' Vadnais Heights,in Program Sponsors launching this BR&E program,has the potential The Vadnais Heights BR&E Program is to improve the climate for existing businesses sponsored by the following organizations: and,therefore,benefit from the continued presence and growth of those businesses. Corporation Heights Economic Development Corporation Another benefit of a BR&E program is the information provided by the survey on the City of Vadnais Heights community's strengths and weaknesses. The . Xcel Energy strengths can be highlighted in community promotional materials,and identifying Connexus Energy weaknesses gives the community an . Minnesota Chamber of Commerce opportunity to make important changes and show businesses it is responsive. By Minnesota Department of Employment and { acknowledging weaknesses, a community also Economic Development shows businesses it is trustworthy and will look . University of Minnesota Extension realistically at its situation. 1 Source:Minnesota DEED,QCEW program ®� Vadnais Heights BR&E Summary Report 1 BR&E Process and Key Dates prioritized 75 businesses for interviews using selection criteria including number of Several community leaders who are invested in employees,building size,land and building the program's implementation, form the core space available for potential expansion, and group for a BR&E initiative.They then identify other business factors.Although this method is five to eight people who form the Leadership not statistically representative of the greater Team. Each has a clearly defined role in the business population,it does provide the team BR&E process.The Leadership Team with a sample that included the largest responsibilities are vast and vital to the success businesses with the greatest number of of the program. These include recruiting employees. volunteers, identifying businesses to visit, providing survey input, performing business Warning Flag Review visits, coordinating milestone meetings,building The Warning Flag Review session, a highly community awareness, and recruiting the Task critical piece of the BR&E process, provided an Force. opportunity for the Task Force to address The Task Force guides the BR&E process,helps individual business concerns that need the Leadership Team with business visits, and immediate attention.This is probably the single becomes involved in prioritizing and responding most important activity that a BR&E initiative to issues identified in the business interviews. can do-responding appropriately and Vadnais Heights's BR&E initiative officially confidentially to businesses on issues such as launched in January of 2016 with the business relocations, concerns with public Leadership Team's first meeting. service,needs for resources, etc. This was done by overall coordinators and business resources Volunteer Training coordinators throughout the process and Volunteer Visitor training sessions,held in formally in April with the leadership team. February of 2016,oriented volunteer visitors to Campus Research Review the BR&E process.Volunteer visitors were Completed business surveys were tabulated and trained on the use of the interview guide and analyzed by the University of Minnesota how to interview business owners.Working as Extension. The data summary was presented to teams of two during the interview, one participants of the Vadnais Heights BR&E volunteer was primarily responsible for asking Campus Research Review meeting held March the questions while the second recorded the 31, 2016, in St. Paul. Participants identified responses. predominant, common themes in the survey Interview Guide responses and suggested project ideas to address the themes. Vadnais Heights adopted Extension's interview guide as its survey instrument. Volunteer Research Report Development visitors used the interview guide on the Monica Haynes and her team from the Bureau of business visits. Business and Economic Research at UMD's Business Selection&Visits Labovitz School of Business prepared the research report utilizing the results of the The Vadnais Heights's BR&E Leadership Team Campus Research Review meeting and and Task Force visited 45 businesses during additional economic development research.The February and March of 2016. research report collectively detailed four The team began the process of business overarching strategies and a robust compilation selection with a full list of 291 businesses using of suggested projects for each strategy. the Fire Occupancy Program List.They then M Vadnais Heights BR&E Summary Report 2 Task Force Retreat Vadnais Heights BR&E Task Force Members A four-hour Task Force retreat was held May 19, Bob Arvold Enterprise Minnesota 2016, in Vadnais Heights and facilitated by Wes Beedon Peoples Bank Midwest Michael Darger, University of Minnesota Extension.There, the Task Force was presented Karyn Berg Ramsey County with the Research Report.The presentation Workforce Solutions included a DEED overview of the Vadnais Becky Bjorgum Innovize/VHEDC Board Heights area economy and demographic Member situation, the composite results of the business interviews, and the four strategies.The Mike Bowen CBRE Research Report can be obtained by contacting Michael Cady Connexus Board one of the Task Force members. Member/VH Resident Because the Vadnais Heights BR&E Task Force Ed Caillier Vadnais Heights(VH) has the most knowledge of its community,it is Resident/Planning in the best position to discern which projects Commission would be locally suitable for implementation. The Task Force reviewed and discussed the Brian Carnes Planning Commission potential projects and developed additional Chair/VH Resident project ideas.Ultimately,six priority projects Evan Cordes VH Safety were created. Committee/VH Resident VADNAIS HEIGHTS BR&E PROGRAM Marguerite DeFore MidWest One PARTICIPANTS Bank/VHEDC Board Four groups of people have been instrumental Member to Vadnais Heights's BR&E program success to Barbara Hall Cottages of Vadnais date—the Leadership Team, the Task Force and Heights volunteer visitors, and the businesses visited. Additionally, the Campus Research Review team Blake Huffman Ramsey County Commissioner deserves acknowledgement for their process participation. Ed Jambor Lake Area Bank Vadnais Heights BR&E Leadership Team Megan Livgard Greater MSP Members Robert Morse MidCountry Ling Becker,Vadnais Heights Economic Bank/VHEDC Board Development Council(VHEDC)-Overall Member/VH Resident Coordinator Bill Nelson Innovative Office Kevin Watson, City of Vadnais Heights-Overall Solutions Coordinator Larry Raddatz Century College Carie Fuhrman,City of Vadnais Heights- Linda Reber All Medical Business Resource Coordinator Personnel/VHEDC Board Gerry Urban,VHEDC-Visitation Coordinator Member/VH Resident Debby Gustafson,Twin Cities Metro CDC- Bruce Sayler Connexus Energy Media Coordinator Kathi Schaff MN Chamber/Grow MN Craig Johnson, City of Vadnais Heights Thomas Voegele Comcast/VHEDC Board Marc Johannsen, City of Vadnais Heights ®� Vadnais Heights BR&E Summary Report 3 Member Jimmy's Food&Drink Grant Weber North Star Council Boy Knowledge Beginnings Scouts of America Larson Engineering Kristine WBLAS Director of Wehrkamp Community Massage Envy Services/VHEDC Board Merrick, Inc Member MGC Diagnostics MGM Liquor Business Visited Midwest Spine The following 45 businesses graciously agreed Mike Haas Financial to be interviewed as part of the BR&E visitation process. While survey responses are MME group confidential,it is important to acknowledge the Network Title effort of participating businesses. Northern Air Corporation Abrasives of St. Paul Proulx Properties allEARTT Reell Precision Manufacturing Ally People Solutions Renstrom Dental Andrews Knitting Mills Robert Hill Law Buerkle Honda and Hyundai Salon Zeo Childrens Discovery Academy Shermco Industries Carlson and Associates Short Elliott Hendrickson(SHE) Cities Credit Union Terracon Consultants,Inc. Con-Tek Machine TSE,Inc. DuFresne Manufacturing Twin Cities Metro CDC Electronic Industries Urban's Farm and Greenhouses Fairfield Inn and Suites Vadnais Heights Cottages Fairway Collison FinnRent Holiday Inn Express&Suites Campus Research Review Team Members The Campus Research Review panel was I.C. System comprised of University of Minnesota faculty Ingenuity Concepts and staff, Minnesota Department of Employment and Economic Development(DEED) Innovative Office Solutions specialists,other economic development Innovize professionals, and Vadnais Heights Leadership IPS Worldwide Team members. This group analyzed the survey data to identify the strengths,weaknesses, J.D. Products opportunities,and threats(SWOT), as well as to ideate potential project ideas that address Vadnais Heights BR&E Summary Report 4 issues emerging from the SWOT analysis. A list Additional Assistance of participants in the Campus Research Review Lauren Sorgaard from Extension's Cloquet follows. Regional Office,tabulated the data entry and Vadnais Heights BR&E Leadership Team prepared the data summary.Jodie Kaden and Ling Becker, Overall Coordinator Ilyas Wehelie, Extension Center for Community Vitality, provided report assembly and printing. Debby Gustafson,Twin Cities Metro CDC- Media Coordinator VADNAIS HEIGHTS ECONOMIC AND Craig Johnson,City of Vadnais Heights DEMOGRAPHIC PROFILE Gerry Urban,VHEDC-Visitation Coordinator A profile of Vadnais Heights' economy and Kevin Watson, City of Vadnais Heights- demographics was prepared for the Research Overall Coordinator Report and presented at the Task Force retreat Minnesota Department of Employment and on May 19, 2016. The profile,created by Tim Economic Development O'Neill of the Minnesota Department of Employment and Economic Development Tim O'Neill,Research Analysis Specialist (DEED),includes statistics on population, (labor market information) demographics,employment,wages,commuting John Shoffner, Business Development and labor sheds,unemployment, and Director occupations. Economic and Community Development A full copy of the profile can be viewed in the Professionals BR&E research report by contacting one of the Kathi Schaff, Grow Minnesota program, Task Force members. Minnesota Chamber of Commerce VADNAIS HEIGHTS INTERVIEW RESULTS Nerita Hughes,Ramsey County Workforce Solutions Of the 45 businesses visited,80%are locally owned, and 51%indicated that their Vadnais University of Minnesota Heights location is their headquarters. Michael Darger, Extension Center for The greatest percentage of survey respondents Community Vitality(meeting facilitator) (27%)identified as being in the Manufacturing Lee Munnich,Humphrey School of Public industry(see Figure 1). While that is the largest Affairs number of businesses in one classification of surveyed businesses,it is not indicative of the Adeel Ahmed,Extension Community Vitality actual size of the Manufacturing industry in Laura Kalambokidis,Department of Applied Vadnais Heights.According to DEED statistics, only 5%of the city's firms are Manufacturing. Economics It's typical in BR&E visitation programs to pay Ward Nefstead,Department of Applied special attention to manufacturing businesses Economics because they tend to pay higher wages on Monica Haynes, Bureau of Business and average, create higher economic impact and Economic Research-Duluth therefore are likely to be offered inducements to move or expand to other communities. Gina Grensing,Bureau of Business and Economic Research-Duluth The next highest for industry classification was a three-way split as shown in Figure 1. ®� Vadnais Heights BR&E Summary Report 5 Manufacturing 27% Finance/insurance 11% Health care/social service 11% Professional/scientific/services 11% Retail trade 9% Other services 1 7% Real estate/re ntal7% Wholesale trader2% 7% Accommodation/food Ag/forestry/fishing/hunting Construction Educational 0% 5% 10% 15% 20% 25% 30% Percentage of Businesses Figure 1:Which of the following industry classifications best describes your business? A slight increase in employment is evident accessibility,proximity to major markets,health among surveyed businesses, with a total care facilities,police, and fire(Figure 2 below). number of 2,676 current employees, compared to 2,646 three years ago.However,this represents only a 1%increase compared with DEED statistics of the greater Vadnais Heights community during the same period,which shows employment growth of 7%or 500 jobs. The majority of growth resulted from Growth in Demand(36%of businesses surveyed)and Expansion(20%of businesses surveyed). It is notable that 53%of surveyed businesses are planning to modernize or expand their buildings or equipment. In a separate question regarding business plans, 40%of the businesses said they expected no change in the next three years; 27%replied that there will be a change in their mix of goods/services; 24%replied they will be adding or subtracting products; and another 20%will be making changes in production technology. Surveyed businesses in Vadnais Heights cited many reasons to celebrate their community. Some of the perceived assets include highway 0 Vadnais Heights BR&E Summary Report 6 3. Improve Public Transportation Community factor Importance Satisfaction Throughout the City Highway accessibility 3.58 3.80 4. Establish a Community Identity Proximity to major Under each strategy, the Research Report markets 3.30 3.58 listed potential projects that the Vadnais Health care facilities 3.20 3.53 Heights BR&E Task Force could select to help Police 3.49 3.48 accomplish the strategy. During their May 19, Fire 3.38 3.46 2016, retreat,the Task Force developed six Community attitude to priority projects to address business business 3.58 3.41 concerns.The Task Force built on project Energy reliability 3.78 3.38 ideas written in the Research Report to create Community promotion 3.22 3.35 projects that were suitable for Vadnais Heights.These priority projects are described Sewer&water 3.42 3.28 below. Availability of loans 3.25 3.27 Street maintenance 3.38 3.26 The respective project teams created each Housing supply 3.23 3.19 project's description.Descriptions include general reasoning for each project and the Telecom&broadband plans developed by the project committee. reliability 3.82 3.18 Furthermore, the interview results that highlight the need for the project are included Figure 2:Community Factors with High Importance where appropriate. Community members who and High Satisfaction are interested in assisting in any of the Average scores shown projects'implementation should contact one Scale for Importance:l=Not atoll,4=Very of the committee members listed. Scale for Satisfaction:1=Very dissatisfied,4=Very Satisfied Priority Project#1:Workforce Connections It was also interesting to note that commuting Event patterns for Vadnais Heights show that 95%of The committee is chaired by Cindy the city's labor force commutes outside of the O'Donovan. Committee members are Ling city for work.Only 374 of the jobs in Vadnais Becker(VHEDC),Karyn Berg(Ramsey County), Heights are filled by people who both live and Nancy Clunis(Fresh Paint),Robert Morse work there. (MidCountry Bank),Steve Moeller(Specialty Manufacturing Company),and joy Strategic Themes VanderHeiden(Schwing America,Inc.) Four primary themes emerged from an The Workforce Resources Connections event analysis of the interview results and is envisioned as a proactive,"one-stop shop" discussions by the Campus Research Review event where manufacturing leaders can Panel.These themes, called strategies here, connect with key contacts and learn about provide a framework for studying and programs, resources and suppliers that can addressing issues raised in the Vadnais support the attraction of a skilled workforce. Heights BR&E process. Below are the four Many resources exist;however,not everyone identified strategies. knows about them or how they can best 1. Provide Businesses with Support Programs connect with them.The Connections event and Initiatives will provide the missing link between workforce needs and workforce resources. 2. Establish Cohesive Workforce Information from this event will be added into Development/Recruitment Initiatives Vadnals Heights BR&E Summary Report 7 the Workforce Resources Promotion Manufacturing Company), and Joy Vander initiative(See Priority Project 2.) Heiden(Schwing America,Inc.). Bob Arvold of Enterprise Minnesota and Kathi Schaff of the Related Research Results for Project#1 Minnesota Chamber also participated in the According to the survey of Vadnais Heights conversation. businesses, 66%stated that they needed In late 2015, the VHEDC hosted a series of training for either workers or managers(See Community Conversations about workforce Figure 3 below). Many businesses cited skilled development where several ideas related to manufacturing training needs,including workforce resources were identified.The design, machine language programming, and VHEDC Workforce Action Committee began technical certification. collecting and soliciting resources that could be valuable for local businesses. Methods for Did not respond 7% communication will include an expanded distribution of the business newsletter(see Priority Projects 5 and 6 below)and a new VHEDC website. Phase 1 of the website was unveiled in August 2016;phase 2 will include No yes more information specific to workforce 27% 66% resources,including expanded company profiles and a job board. Related Research Results for Project#2 Survey respondents identified Engineers, Figure Do you need training for workers or Scientists and Technicians as the position managers? category most anticipated to grow in the near In addition,many businesses cited challenges future.It was also one of the highest rated in in recruiting engineers/scientists, skilled terms of difficulty to recruit(see Figure 4). manufacturing, and health care professionals, and indicated that they expect the number of employees in these same categories to increase over the next three years. However, only 11%of respondents indicated that they currently use apprenticeships as a way to recruit employees. The VHEDC 2016 Business Guide and Community Profile outlines the Century College Internship Pilot and a job shadowing program with White Bear Lake High School students and a local company. Priority Project#2:Workforce Resources Promotion The committee is chaired by Cindy O'Donovan. Committee members are Ling Becker(VHEDC),Karyn Berg(Ramsey County), Nancy Clunis(Fresh Paint),Robert Morse (MidCountry Bank),Steve Moeller(Specialty M vadnais Heights BR&E Summary Report 8 involves working in collaboration with the City Engineeers,scientists 18% of Vadnais Heights to develop a joint business newsletter(see Project 5).Another vehicle Professional/managerial 18% being explored is a Go Local app.The Skilled manufacturing 18% committee has already begun conversations with an app developer on a product.The Healthcare 16% product being explored has a local Office and... 13% philanthropy.component, as well. It can engage residents, employees, and visitors in Repair and skilled 11% community life while allowing the community and its businesses to promote their Unskilled manufacturing 11% organizations on a mobile/digital platform. Information technology 9% Finally, the VHEDC recently launched a new Unskilled 9% website.The website has links to technical and financial resources for businesses, fTransportation 7% including information on property availability, Construction 2% DEED resources, and workforce links.The Percentage of Businesses committee intends to use the new capabilities of that website to do a better job connecting Figure 4:Does your company have problems the businesses to the Cityof Vadnais Heights. recruiting the following? Related Research Results for Project#3 Professional/Managerial and Skilled One of the lowest scores related to retail in Manufacturing employees were also identified Vadnais Heights was"Special events or as difficult to recruit and were ranked among promotions in the shopping area"(see Figure those most expected to increase in number of 5).This score was also lower than those in employees.Currently,the most common other previous BR&E program communities. j resource used by local businesses to locate new employees is Internet advertising on job Additionally, over 8,700 workers commute boards(60%of respondents),while referrals from outside of Vadnais Heights.The city has from existing employees was a close second at an opportunity to help these non-residents get 56%.Only 18%of businesses surveyed to know Vadnais Heights better.This could indicated that they currently used a Minnesota build on the strength of the locally owned Workforce Center to help find new employees. businesses,because 80%of Vadnais Heights BR&E respondent businesses noted they are Priority Project#3:Connect workers to locally owned. community resources,amenities,and events. The committee is chaired by Debby Gustafson. Committee members include Ling Becker (VHEDC), Ed Jambor(Lake Area Bank),Robert i Morse(MidCountry Bank), Chris Olson(GDO Law),Gerry Urban(Urban's Farm& f Greenhouses), and Kevin Whelan(Peoples Bank Midwest). The goal of this project is to find additional ways to connect employees of Vadnais Heights's businesses to the community in which they work.One part of this project - vadnais lieights BR&E Summary Report 9 Heights and focus on two areas-- Community Internet presence 3.48 Outreach and Economic Development.The Personnel 3.41 plan is to capitalize on the tools already in place and reenergize those with a fresh Parking 3.39 approach. Safety 3.38 Additionally, the team plans to utilize the full Prices 3.27 potential of new investments the city has Customer service 3.26 recently made,such as the new city website. Hours-weekend3.21 The city and its partner in VHEDC will collaborate to implement a newsletter focused Merchandising 3.20 on communicating with the business Hours-evening 3.19 community about the City Council's policy initiatives, opportunities to educate,business Quality 3.10 incentives, and overall quality of life within Exterior atmosphere 3.06 Vadnais Heights. Finally, the team plans to Store hours 2.91 partner with the business community and Traffic flow/signs 2.89 VHEDC to rebrand our city via banners, flowers, and decorations in our City Center Restroorns 2.84 core and on the new street lights. Vadnais Advertising 2.70 Heights has achieved great things in its short history, and a strategic marketing initiative Variety stores 2.69 will help create the city's next chapter. Variety eat 2.64 Special events 2.61 Related Research Results for Project#4 Group advertising 2.53 According to businesses surveyed, Vadnais Heights has a strong community atmosphere. 1=Poor 4=Excellent In fact, 33%of respondents felt that the community atmosphere in Vadnais Heights Figure 5: Rate the following factors about retail in had a positive or very positive impact on their Vadnais Heights business, and many felt that it should be part of a marketing campaign for the city. Although businesses see the community Priority Project#4:Create a marketing plan for atmosphere in Vadnais Heights as a strength, the City of Vadnais Heights. the rating given(0.53)is still lower than other This project is led by the City of Vadnais BR&E communities(1.08 where the scale is 1= Heights in coordination with various VHEDC positive and 2 =very positive). Many committees, such as the Business Retention& businesses indicated that the downtown area Expansion Committee and the City Center in Vadnais Heights was not easily identifiable Task Force Related Research Results for to visitors. Project. A number of respondents commented that The City of Vadnais Heights is riding a wave Vadnais Heights lacks a"main street." of success over the last couple years. The city Additionally, one of the lowest scores related and Vadnais Heights Economic Development to retail in Vadnais Heights was"Special Commission(VHEDC)are looking to capitalize events or promotions in the shopping area." on this recent success by initiating a marketing strategy for the community. The marketing initiative will be unique to Vadnais i- Vadnais Heights BR&E Summary Report 10 t Priority Project#5:Create a newsletter and critical to the growth and stability of the web page with informational business topics. business over time. The committee is chaired by Kyle Sommer. Committee members include Ling Becker Did not � answer (VHEDC), Wes Beedon(Peoples Bank Midwest), 7% Mike Enright(Cities Credit Union),Robert Morse(MidCountry Bank), and Gerry Urban (Urban's Farm&Greenhouses). Yes No 51% The VHEDC currently has two newsletters that 42%_j are distributed electronically to VHEDC investors and others who have expressed interest in being on the VHEDC mailing list. The committee recognizes that this does not reach all of the businesses in Vadnais Heights, so effort should be made to determine how to Figure 6: Does your company have a written j better reach more businesses. business pian? l The city currently publishes a quarterly community newsletter that is mailed to all residents and business addresses. In that Not applicable 7% newsletter,there is a section devoted to Did not VHEDC where products made in Vadnais answer Heights are highlighted.The newsletter also 11% highlights development news.The VHEDC Yes 31% newsletters do not reach all businesses.The city newsletter is a broader community newsletter with content that is not necessarily j targeted to businesses.One idea is to have the VHEDC and the city work together to produce NoJ and distribute a bi-annual business newsletter 51% that would go to all businesses in the city. Figure 7: Does your business have a written The committee may also actively promote transition plan? business resources available on the VHEDC and city website. Continuing to hear what information and resources would be most While 16%of the businesses are exporting helpful from businesses is important.VHEDC directly from their business,they may have will look into a feedback or request form on questions and issues and need assistance in its website. growth of global sales.Of the 71%that are not Related Research Results for Project#5 exporting, 11%said it was due to restrictive j state and/or federal regulations.These Local businesses can benefit from technical t businesses may be unclear about how assistance to strengthen their business management practices. Over 50%of the regulations truly work and could be guided businesses surveyed do not have a written through the process.Additionally,2%of transition plan, and over 40%do not have a respondents said they have never considered written business plan(see Figures 6 and 7). exporting,but would like to look into the I Both of these planning documents can be prospect. r - Vadnais Heights BR&E Summary Report 11 i. These are just some of the topics of First, several survey comments described consideration that could be shared with issues with the Fire Department inspection businesses. process. Some question licensing and Priority Project#6:Establish a task force ordinance policies. related to communication between the city Second, some comments indicated that public and businesses. transportation is lacking within the city, and The committee is chaired by Debby Gustafson. traffic congestion is a challenge.Some cited a Committee members include Ling Becker need for more bus routes to improve access (VHEDC), Ed Jambor(Lake Area Bank), Robert for a wider population of workers(e.g. Morse(MidCountry Bank), Chris Olson(GDO disabled, low-income,etc.). Others mentioned Law), Gerry Urban(Urban's Farm& a need for extended route hours for second- Greenhouses), and Kevin Whelan(Peoples shift workers. Bank Midwest). Also, businesses rated traffic flow and signage BR&E results indicated that businesses want relatively poorly.This item received the more communication with the city. One idea second-highest number of votes in terms of is to create a quarterly opportunity for "needs improvement,"with 26%of businesses and local governmental officials to respondents noting a score of 1 or 2 on a 4- meet in a Vadnais Heights Business Council point scale with 4 being Excellent and 1 being setting.Meetings could include city updates of Poor. news relevant to businesses. Sessions could While the foregoing are important issues, they also include a speaker on a topic of mutual are just some of the topics of consideration interest with opportunities for discussion. that could be shared with businesses. These business council sessions would provide opportunities for local business leaders to network and to highlight the importance of business community leadership CREDITS and engagement in local decision making. The Vadnais Heights BR&E Task Force selected Related Research Results for Project#6 these priority projects. Monica Haynes and Gina Grensing of UMD's Labovitz School of Several issues mentioned by survey Business and Economics'Bureau of Business respondents could benefit from improved and Economic Research(BBER)prepared this communication between the city and summary report. Michael Darger provided businesses. editing and report compilation assistance. M Vadnais Heights BR&E Summary Report 12 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director; Kalley Swift, Community Development Specialist SUBJECT: April Director's Report DATE: April 22, 2021 INTRODUCTION/DISCUSSION City Council/Planning Commission Zoning Code Update The City Council met jointly with the Planning Commission for a second time on April 12 to discuss proposed changes to the zoning code.This is the work being done related to the approved 2040 Comprehensive Plan.The staff memo and additional information can be found on the city's website under agendas and minutes: https://www.farmingtommn.gov/government/mayor_city_council/agendas_and_minutes DEED Updates Please seethe attached DEED employment report and a campaign to promote vaccination amongstthe manufacturing community. March Foreclosure Report Please see the attached foreclosure report as provided by the Dakota County CDA. Active Projects Airlake Truck and Body(new building) application submitted Hobo(expansion/new building) application submitted Vermillion Topside Apartments Holiday Station Store Tessie's Alterations Impact Auto expansion EZ Auto expansion Kemps boiler expansion Northern Natural Gas Two preliminary industrial prospects and two retail prospects NEXT MEETING Our next regular meeting is scheduled for May 27 at 6:00 p.m. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Exhibit CDA Foreclosure Update- March D Exhibit DEED Employment Report- March D Exhibit DEED Manufacturers Campaign Dakota County Community Development Agency 9 Y CDA To: Dakota County Cities From: Maggie Dykes Date: April 5, 2021 Re: Foreclosure Update Dakota County Stats— March 2021 • # of Sheriff Sales in March — 3 (compared to 2 in February 2021). There is a moratorium on evictions due to COVID-19 in place through April 12, 2021 unless again extended by Governor Walz under emergency orders. The moratorium does not apply to Foreclosure by HOA. • # of Notices of Pendency Filed in March — 36 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 mdykes(a-)-dakotacda.state.mn.us. Dakota County Community Development Agency CDA Foreclosure Summary for Dakota County Sheriff Sales City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2021 2020 2019 2018 Apple Valley 0 1 0 1 13 30 24 Burnsville 4 1 0 5 11 31 31 Eagan 0 0 0 0 7 20 27 Farmington 0 0 1 1 8 9 21 Hastings 0 0 1 1 1 11 14 Inver Grove Heights 0 0 0 0 4 14 14 Lakeville 0 0 0 0 4 16 16 Mendota Heights 1 0 0 1 1 4 3 Rosemount 0 0 0 0 5 12 15 South St.Paul 0 0 1 1 6 13 27 West St.Paul 0 0 0 0 6 6 14 Small Cities 0 0 0 0 0 2 7 TOTAL2021 5 2 3 0 0 0 0 0 0 0 0 0 10 65 168 213 TOTAL2020 19 9 11 2 3 4 4 4 1 4 0 0 65 TOTAL 2019 34 29 15 13 18 24 24 29 17 21 17P15 5 168 TOTAL2018 12 15 24 22 21 15 13 23 24 16 13 213 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. ��/\ Dakota County Community Development Agency CDA Notice of Pendency Filings city Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2021 2020 2019 Apple Valley 5 4 4 13 55 95 Burnsville 7 2 12 21 53 95 Eagan 0 2 7 9 37 101 Farmington 1 6 1 8 45 64 Hastings 1 4 1 6 20 34 Inver Grove Heights 1 1 5 7 1 30 47 Lakeville 0 0 1 1 21 77 Mendota Heights 0 0 0 0 6 9 Rosemount 0 2 0 2 24 42 South St.Paul 3 0 2 5 21 63 West SL Paul 2 0 1 3 26 38 Small Cities 0 1 0 2 2 3 11 TOTAL 20 21 36 0 0 0 0 0 0 0 0 0 77 341 676 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 CCA's homeowner or homebuyer services, visit www.dakotacda.org or call(651)675-4473. Adam Kienberger From: DEED Communications <MNDEED@public.govdelivery.com> Sent: Thursday, March 25, 2021 10:01 AM To: Adam Kienberger Subject: Minnesota's Unemployment Rate Dips to 4.3% in February EMPLOYMENT ANDPRESS ! RELEASE • • DEVELOPMENT For Immediate Release Jen Gates March 25,2021 651-358-0300 Media Resources Jen.Gates@state.mn.us Previous Announcements Oriane Casale 651-259-7383 Oriane.Casale@state.mn.us Minnesota's Unemployment Rate Dips to 4.3% in February Minnesota continues 2021 job gains St. Paul—Minnesota's seasonally adjusted unemployment rate dropped to 4.3% in February, down from 4.5%in January, according to numbers released today by the Minnesota Department of Employment and Economic Development (DEED).The decline in the unemployment rate was due to more people finding work and a decrease in the number of unemployed people,which resulted in another decline in the number of people engaged in Minnesota's labor force. i Minnesota's labor force participation rate fell by a tenth of a point to 67.8% in February. It was 70.2% in February 2020, immediately before the start of the pandemic. Nationally,the unemployment rate fell one-tenth to 6.2% in February, with labor force participation staying level at 61.4%. Minnesota gained 13,900 jobs, up 0.5%, in February on a seasonally adjusted basis. This is 200 jobs short of the peak pandemic recovery employment in October 2020. The private sector gained 11,000 jobs in February, up 0.5%over the month, bringing private sector employment 300 jobs above peak pandemic employment reached in October. The U.S. gained 379,000 jobs, up 0.3%over the month, in February on a seasonally adjusted basis. The deepest impacts of the pandemic are felt by Minnesotans from Black, Indigenous and People of Color(BIPOC) communities. Based on 12-month moving averages, the unemployment rate for Black Minnesotans was 9.2% in February, down from 9.5%in January and up from 4.5% one year ago.The Latinx unemployment rate was 7.5%in February up from 7.3% in January and up from 5.0%one year ago. White Minnesotans were at 5.9% in February, up from 5.8% in January and up from 3.0% one year ago. "We are moving in the right direction, but we still have a lot of runway ahead for job growth," said DEED Commissioner Steve Grove. "Given the uneven effects of the pandemic on our economy, many unemployed Minnesotans will need to consider new career opportunities from the ones they left.At DEED, we're calling thousands of unemployed Minnesotans every week, letting them know about training to help prepare for in-demand jobs.There are many employers hiring right now." Five supersectors gained jobs,five lost jobs and Professional & Business Services held steady over the month in Minnesota. • Gains were in Leisure & Hospitality, up another 13,500 jobs or 6.9%over the month, followed by Government, up 2,900 jobs or 0.7%, Educational & Health 2 Services, up 2,000 or 0.4%, Trade,Transportation & Utilities, up 1,700 or 0.3%, and Financial Activities, up 600 or 0.3%. • Losses were in Construction, down 3,300 jobs or 2.7%, Other Services, down 1,700 jobs or 1.7%, Manufacturing, down 1,600 jobs or 0.5%, Information, down 200 jobs or 0.5%, and Logging& Mining, down 100 jobs or 1.6%. Minnesota lost 416,300 jobs from February through April 2020 and since April has gained 205,100 jobs, or 49.3%of the jobs lost on a seasonally adjusted basis.The private sector has regained 50.7%of the jobs lost. Over the year in February, Minnesota shed 213,532 payroll jobs, down 7.2%. U.S. over-the-year job loss stood at 6.0%for both total nonfarm and private sector employment in February, a slight improvement from January.All supersectors continued to show over-the-year job loss in Minnesota and nationally. Over-the-year job losses were still greatest in Leisure & Hospitality, down 26.1%or 68,441 jobs. Other supersectors with a high share of job losses were Other Services, down 12.5%or 14,182 jobs, Information, down 12.4%or 5,675 jobs, Construction, down 8.0%or 8,788 jobs, Logging & Mining, down 7.9% or 496 jobs, and Professional & Business Services, down 7.2%or 27,212 jobs. All other supersectors are down less than 6%. Four supersectors in Minnesota showed strength over the year compared to the U.S.: • Logging & Mining job loss in Minnesota remains below U.S.job loss, down 7.9% in Minnesota compared to 13.6% nationally. • Financial Activities is now only 0.5%or 901 jobs below where it was in February 2020 in Minnesota. Nationally the industry remains down 1%over the year. Minnesota's strengths are in financial activities and insurance. Finance and Insurance is 620 jobs above where it was one year ago in Minnesota. 3 • Employment in Education & Health Services is down 4.5%in Minnesota compared to 5.3% nationally. In Minnesota, strength is in Educational Services (non-public is down 6.6%in Minnesota and 10.2% nationally) as well as Nursing and Residential Care Facilities (down 3.1% in Minnesota and 9.2% nationally). Employment in Government is down 4.6%in Minnesota compared to 5.9% nationally. Strength here is across the board but particularly in state government education (down 4.1%in Minnesota compared to 11.9% nationally) and local government education (down 6.9%in Minnesota and 8% nationally). Employment fell in February over the year in all Minnesota Metropolitan Statistical Areas. Minnesota and U.S. Employment and Unemployment—February 2021 Seasonally Adjusted Not Seasonally Adjusted Unemployment February January February 2021 February 2020 Rate 2021 2021 Minnesota 4.3% 4.5% 4.6% 3.6% U.S. 6.2% 6.3% 6.6% 3.8% February'20- February'20- February January Employment February'21 Level February'21% 2021 2021 Change Change Minnesota 2,785,100 2,771,200 -213,532 -7.2% U.S. 143,048,000 142,669,000 -9,042,000 -6.0% 4 Minnesota and U.S. Over-the-Year(OTY) Employment Change, Not Seasonally Adjusted: February 2020-February 2021 OTY Job OTY Growth Rate U.S. CITY Growth Rate Industry Supersector Change (%) (%) Total -213,532 -7.2 -6.0 Private -193,428 -7.7 -6.0 Logging & Mining -496 -7.9 -13.6 Construction -8,788 -8.0 -3.8 Manufacturing -17,804 -5.6 -4.1 Trade,Transport. & -241363 -4.7 Utilities -2.7 Information -5,675 -12.4 -8.1 Financial Activities -901 -0.5 -1.0 Prof. & Business Services -27,212 -7.2 -3.4 Ed. & Health Services -25,566 -4.5 -5.3 Leisure & Hospitality -68,441 -26.1 -20.2 Other Services -14,182 -12.5 -7.4 Government -20,104 -4.6 -5.9 Metropolitan Statistical Area (MSA) Over-the-Year(CITY) Employment Change, Not Seasonally Adjusted: February 2020-February 2021 CITY Employment CITY Employment Change Metropolitan Statistical Area Change N 5 Minneapolis-St. Paul MN-WI -171,331 -8.5 MSA Duluth-Superior MN-WI MSA -8,840 -6.5 Rochester MSA -5,911 -4.8 St. Cloud MSA -6,515 -5.9 Mankato MSA -4,455 7.6 Visit the DEED website to see DEED's alternative measures of unemployment. You can also find the monthly iobs numbers and unemployment data on DEED's website.You can see resources to help Minnesotans prepare for and find employment now at CareerForceMN.com/GoodJobsNow. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow us on Twitter. Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. EMPLOYMENT ECONOMIC DEVELOPMENT .--. Questions?Contact Us (© SHRRE 6 SUBSCRIBER SERVICES: Manage Preferences I Help DEED is an equal opportunity employer and program provider. 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