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06-17-21
CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING AGENDA June 17, 2021 6:00 P M 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 S. CITIZENS COMMENTS 6. CITIZENS COMMENTS 7. CONSENTAGENDA (a) Approve Meeting Minutes (April 22, 2021, Regular Meeting) (b) Executive Director Appointment 8. PUBLIC HEARINGS (a) Public Hearing to Consider Sale of the EDA Owned "Riste Lot" at 209 Oak Street 9. DISCUSSION ITEMS 10. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ® Farmington M N.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Meeting Minutes (April 22, 2021, Regular Meeting) DATE: June 17, 2021 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the April 22, 2021, Regular EDA meeting. ACTION REQUESTED Approve the April 22, 2021, Regular EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting April 22, 2021 1. CALL TO ORDER The meeting was called to order by Chair Butterfield at 6:00 p.m. Members Present: Butterfield, Bernhjelm, Hoyt, Simmons, Hudlemeyer, Carpentier Members Absent: Kaufman Also Present: Kalley Swift, Community Development Specialist; Cynthia Muller,Administrative Assistant 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Carpentier, second by Hoyt to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENTAGENDA MOTION by Simmons, second by Carpentier to approve the Consent Agenda as follows: a) Received Monthly Financial Statements b) Approved Meeting Minutes (April 15, 2021, Special Meeting) APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Grant Program Funding and Guidelines The EDA administers two grant programs,the Downtown Fagade Improvement Grant Program and the Redevelopment and Property Reinvestment Program. Each program is provided with $20,000 in funding. At the March EDA meeting, all funds were used for the Fagade Improvement Program. For 2021, staff recommended adding$30,000 in funding to the Fagade Improvement Program to cover any anticipated applications. Regarding the Redevelopment and Property Reinvestment Program,two grants have been awarded in 2021 and there is $2,100 left in funding. Staff proposed an additional $20,000 in funding for this program. Additional funding could come from the $52,000 of unallocated funds and from the $100,000 set aside for the Rambling River Center Plaza project. EDA Minutes(Regular) April 22,2021 Page 2 For 2022,the EDA mentioned revising the guidelines and the process for how grants are awarded. Staff proposed 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-Mail out the Facade Improvement Program packet to downtown eligible properties in January. Applications would be scored by staff based on criteria such as: - 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 need to be completed by the end of October. Round 2—Receive applications April—May, award grants in June, work would need to be completed by the end of December. These timelines 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,we could award $30,000 in grants in the first round and $20,000 in the 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. The actions requested were: 1. For 2021, the EDA should decide if an additional $30,000 in funding should be added to the Fagade 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 2 for the grant programs and decide the amount of funding for each program. Member Simmons suggested discussing individual grant amount maximums,then the amount of funding to allocate for the year,timing and selection criteria. Chair Butterfield agreed. He noted the guidelines are vague by intent and are interpreted differently. We should decide what is weighted for both programs. The history of grant funds has increased because of the work being expensive. We are at a maximum grant amount of$10,000 now. Member Simmons recalled we started at$5,000 max and that felt right. When applicants said they could not do their project without$10,000 that caused an urgency for funds. She would rather award four to six $5,000 grants. Member Simmons recalled the EDA had EDA Minutes(Regular) April 22,2021 Page 3 talked about a similar program for Highway 3. Councilmember Bernhjelm noted this program was not intended to be a lifeline. Are large scale projects a bigger impact on buildings? She could leave the grant amounts at$10,000 or$5,000. Member Carpentier talked with a few businesses and dropping the amount to $5,000 would be okay with them. Mayor Hoyt stated the Fagade Program is for B-2 and B-3 businesses in the downtown. Now the downtown district will be larger with the new zoning. It would no longer cover just the downtown, so $30,000 in funding is a thin piece of the pie. He suggested allowing a business to apply once every 24 months. Keep the program clean and evenly distributed. We should not determine amounts until we know the number of businesses included in the new zoning. Chair Butterfield stated the Fagade Program aligns with City Council priorities. We would expand the program to include Highway 3, have a smaller grant amount or more scrutiny with reviewing applications. Councilmember Bernhjelm suggested for 2022 to include Highway 3 and have $5,000 in Fagade grants as a maximum. One criteria could be if they have received a grant within three years, the funds would go to other applicants. For the Redevelopment Program, have a maximum of$10,000 in grants and more scrutiny with reviewing applications, such as how this would allow them to grow their business and would it increase the number of employees. We would use option two and only have round two if all the money was not allocated or accept applications on a rolling basis for the rest of the year. This allows for Council budgeting to catch up. At the end of the year we will know if the EDA has more funding for next year. For 2022 programs, staff should add Highway 3, note whether it is a building owner or tenant, lower the Fagade grant maximum amount to possibly$5,000, ranking criteria should include the number of years the business has received a grant,will it expand their business,will it expand the number of employees. This item should be brought back to the October/November meeting. Member Simmons felt the EDA should have input on criteria. The business should be provided with a score card as to how their application will be ranked. Criteria should also include whether they are considered a small business according to their gross sales through the Small Business Association. Criteria should also include whether the work is a safety upgrade. For 2021, Councilmember Bernhjelm felt no additional funding should be provided to the Redevelopment Program. For the Fagade Program, we could provide additional funding if we define a window to open applications and have that period until July 1, 2021, and use the criteria discussed to award grants. The rest of the EDA members were not in favor of adding funds to either program. MOTION by Bernhjelm, second by Hudlemeyer to not allow additional funding for either program. APIF,MOTION CARRIED. EDA Minutes(Regular) April 22,2021 Page 4 Mayor Hoyt asked staff to identify the number of new businesses included in the downtown with the new zoning and the number of businesses that have received grants recently including CDBG grants. b. City Council Update/Member Roundtable Additional CARES dollars are being allocated. The downtown sidewalk project has been approved. A new development south of the fire station on Denmark has been approved. We have hired a new Parks and Rec Director. Interviews for the new Community Development Director will be May 3, 2021. There will be a question on the school district survey asking if residents would support a new recreation facility. At the May meeting approval for allocating funds for wayfinding signs, banners and holiday decor will be on the agenda. C. BR&E Update—2021 Plan The Business Retention and Expansion (BR&E)program was finalized in March 2020, but was paused due to COVID. The BR&E subcommittee met in September 2020 and approved a short-term modification of the program which included an online survey of COVID related questions which was open to all businesses in Farmington. In October 2020, 50 business responses were received and those results were reviewed at the November and December 2020 EDA meetings. The BR&E program is now gearing up for implementation. The traditional BR&E program is based on business assessment surveys and in- person business visits to address concerns and gather data for bigger policy decisions,programs and discussions to support Farmington businesses. Businesses who answered"yes" or"unsure" in the Fall 2020 BR&E survey will influence what businesses to visit in the initial program launch. There will be 2-3 visitors for in-person business visits consisting of staff, EDA, City Council to start, then include Dakota County Chamber of Commerce, citizen volunteers, various local/regional organizations, etc. Business visitor training will be provided before going on visits. Staff will distribute an online survey one week prior to the visit and notify business visitors of the online survey responses and issues to address while on the visit. Each visit will be an hour or less. Businesses will be provided with a questionnaire before the visits as preparation. A leave behind gift will be given to the business. Thank you notes will be sent immediately after the visit and there will be medium and long-term follow up. The goal for 2021 is 50 business visits, averaging two per week from June through November. Monthly updates will be provided to the EDA. In November, staff will launch Favor Farmington 2.0 with an online map of businesses. December will be used to prepare for 2022. Councilmember Bernhjelm was impressed with the number of businesses to visit in 2021. She hopes to participate as much as possible. Chair Butterfield stated this is not a one year thing. In year two we can keep a scale and a general set of questions and compare year to year. He would like to revisit this again after the May visits. The timing will be good for the start of the new Community EDA Minutes(Regular) April 22,2021 Page 5 Development Director. We should be able to do two visits/week. Mayor Hoyt asked how many surveys were sent. There were 226 mailings. He asked if staff attempted to get to the 176 who did not respond. It was a Fall 2020 survey, so staff was not too worried because the program would launch in 2021. Chair Butterfield felt this was a good response rate for an initial survey. The engagement came from long time businesses. Councilmember Bernhjelm asked that the City Administrator include the business visit schedule in his weekly update to City Council. Staff will set up meetings month by month. Chair Butterfield reminded everyone the visit should focus on their business. 9. DIRECTOR'S REPORT a) April Director's Report There have been a couple joint City Council/Planning Commission meetings on the 2040 Comp Plan. The next EDA meeting is May 27, 2021. The agenda will include a purchase agreement for the Riste lot. Councilmember Bernhjelm reminded members to direct any questions to Community Development Specialist Swift and she will forward to the appropriate staff person. The May agenda will also include finances and a proposed budget recommendation to the City Council for 2022 and the Rambling River Center Plaza allocation. 10. ADJOURN MOTION by Hoyt, second by Carpentier to adjourn at 7:31 p.m. APIF, MOTION CARRIED. Respectfully submitted, C&-tKci Mu.Uer Cynthia Muller Administrative Assistant CITY 4F 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Executive Director Appointment DATE: June 17, 2021 INTRODUCTION/DISCUSSION The Economic Development Authority By-Laws allows the EDA to appoint an Executive Director. The Executive Director position has been left vacant since April 16, 2021. The sale of the Riste Lot requires the signatures of the Chair and Executive Director of the EDA.The Executive Director position must be officially filled in order to complete the sale and required signatures of the Riste Lot. The EDA should appoint David McKnight, City Administrator as the official Executive Director effective immediately. Samantha DiMaggio will begin as the Community Development Director on June 21, 2021. The EDA will appoint Samantha as the official Executive Director at the regular June 24, 2021 EDA Meeting. ACTION REQUESTED Approve the appointment of David McKnight, City Administrator as Executive Director of the EDA effective immediately. ATTACHMENTS: Type Description D Exhibit EDA By-Laws 2021 2021 ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS These By-Laws,when adopted, are intended to deal with matters not otherwise covered by State Law, City Ordinance or elsewhere. Section I—Meetings SUBD. 1 —Regular meetings of the Economic Development Authority shall be held on the fourth (4th) Thursday of each month at 6:00 p.m. Any regular meeting falling upon a holiday shall be held on the folio vintREevious Thursday at the same time and place. All meetings, including special and adjourned meetings, shall be held in the City Hall unless otherwise designated. SUBD. 2—Special meetings of the Authority may be called by the Chairperson or in written form by any other two (2) members of the Authority, filed with the Executive Director. The Executive Director may also call a special meeting. At least three (3) days before the meeting, the Executive Director shall notify each member of the time,place and purpose of the meeting by causing written notice thereof to be delivered to him/her by e-mail. At least three (3) days prior to the meeting,the Executive Director shall also post notice of the meeting and if applicable, notify each person who has filed an applicable written request for notice, or may, if necessary,provide such other more restricted notice, including but not limited to (as allowed by Statute, such as) M.S. 471.705, subd. 1C, paragraph g, " if a person receives actual notice of a meeting of a public body at least 24 hours before the meeting, all notice requirements of this subdivision are satisfied with respect to that person, regardless of the method of receipt of notice." Emergency meetings may be held because of circumstances that, in the judgment of the Authority require immediate attention. The notice of special meeting shall state the item(s)to be discussed and acted upon. Items not stated in the notice may be discussed, but no action may be taken if any member objects. Any special meeting attended by a majority of the Authority members shall be a valid meeting for the transaction of business that may come before the meeting. SUBD. 3—At the regular Authority meeting in February of each year,the Authority shall (1) acknowledge City Council's designation of the official newspaper; (2) establish the meeting schedule for the year; (3) choose a Chairperson and a Vice-Chairperson,who shall perform the duties of the Chairperson during the Chairpersons disability or absence, and in case of a vacancy in the office of Chairperson, and until a successor has been appointed and qualifies to fulfill the duties of Chairperson, and; (4) appoint a Secretary and Treasurer,which need not be a commissioner. SUBD. 4—All Authority meetings, as defined by State Law, including special and adjourned meetings shall be open to the public. The Authority Attorney shall advise the Authority in writing as to their interpretation of the state "Open Meeting Law" and all new members shall be provided such written interpretation. 1 Section II Presiding Officer; Rules of Order SUBD. 1 —The Chairperson shall preside at all meetings of the Authority. In the absence of the Chairperson,the Vice-Chairperson shall preside. In the absence of both,the Executive Director shall call the meeting to order and shall preside until the Authority members present at the meeting choose one of their members to act temporarily as presiding officer. SUBD. 2—The presiding officer shall preserve order, enforce the rule of procedure herein prescribed, and determine all questions of procedure and order. Except as otherwise provided by statute or by these rules, the proceedings of the Authority shall be conducted in accordance with the following rules of order: A. A motion must be seconded before being considered by the Authority and the presiding officer must recognize mover, as well as the seconder. B. Any motion may be withdrawn by its mover with the consent of his/her second. But a motion, once debated, cannot be withdrawn except by a majority vote of the Authority. C. A motion will not be subject to debate until it has been stated by the presiding officer and he/she has opened it to debate. D. Each member, while speaking, shall confine himself/herself to the question at hand and avoid all personal, indecorous or sarcastic language. E. Whenever any member of the Authority desires to speak on any question,which affects him/her personally, he/she shall first vacate his/her chair and shall not resume his/her seat until the matter under consideration has been acted upon. He/she shall be allowed to make comments on the question as a private citizen only and while a member of the audience. F. Whenever public hearings are held, the presiding officer shall allow any member of the public,the privilege of speaking. A reasonable time shall be allowed to anyone as long as they are not repeating points already made. The presiding officer shall maintain order and may rule anyone out of order. G. At any meeting, the presiding officer will allow the public to participate as long as there is reason to believe the input is beneficial. SUBD. 3—Any member may appeal to the Authority from a ruling of the presiding officer. If the appeal is seconded,the appealing member may speak first on the reason for his/her appeal. General discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is approved by a majority of the members present. 2 Section III—Agendas SUBD. 1 —The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Friday preceding the meeting for publication purposes. SUBD. 2—Any member may place an item on the agenda by so instructing the Executive Director. SUBD. 3—No item shall be placed on the agenda unless the item is expressed in such a way as to clearly show the subject matter involved. SUBD. 4—The agenda add-ons are subject to approval by a majority vote of the members present and further such add-on items may be discussed, but no action may be taken if any member objects. Section IV—Order of Business SUBD. 1 —Each meeting of the Authority shall convene at the time and place appointed therefore. Authority business shall be conducted in the following order: 1) Call to Order 2) Pledge of Allegiance 3) Roll Call 4) Approve Agenda 5) Citizen Comments 6) Approve Consent Agenda a. Minutes b. Monthly Statements c. Additional Consent Agenda items 7) Public Hearings 8) Discussion Items 9) Director's Report 10)Adjourn SUBD. 2—The order of business may be varied by the presiding officer, except that all public hearings shall be held at the time specified in the notice of hearing. Section V—Minutes SUBD. 1 —Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her absence, his/her designee. In the absence of both, the presiding officer shall appoint a secretary pro tem. Resolutions need not be recorded in full in the minutes if they appear in other permanent records of the Executive Director and can be accurately identified from the description given in the minutes. SUBD. 2—Minutes of each meeting shall be reduced to typewritten form. At the next regular Authority meeting, approval of the minutes shall be considered by the Authority. The minutes need not be read aloud, but the presiding officer shall call for any additions or corrections. If there is an objection,the Authority shall vote upon the addition or correction. If there are no additions or 3 corrections,the minutes shall stand approved by motion. If there is an objection,the Authority shall vote upon the addition or correction and approve the minutes by motion as amended. Section VI—Quorum and Voting SUBD. 1 —At all meetings a majority of all members shall constitute a quorum for the transaction of business. SUBD. 2—The votes of members on any question pending before the EDA shall be by voice votes. Roll call vote can be requested by any member, except for the following agenda items; approval of the agenda; approval of the consent agenda; and the adjournment. The names of those voting for and against the question shall be recorded in the minutes. If any member present does not vote,the minutes shall state: "Abstain:Name". SUBD. 3 —Except as otherwise provided by statute, a majority vote of the quorum shall prevail. Section VII—Executive Director The Authority may appoint and provide for annual performance reviews of an Executive Director. Section VIII—Suspension or Amendment of the By-Laws SUBD. 1 —These by-laws may be temporarily suspended by a unanimous vote of the members present. SUBD. 2—These by-laws shall not be repealed or amended except by a majority vote of the whole Authority after notice has been given at some preceding meeting. Section IX—Effective Date SUBD. 1 —These by-laws have been adopted by the Economic Development Authority on the 25th day of February, 2021 and become effective immediately. Attest: EDA Executive Director EDA Chairperson Date: Date: 4 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Public Hearing to Consider Sale of the EDA Owned "Riste Lot" at 209 Oak Street DATE: June 17, 2021 INTRODUCTION/DISCUSSION The EDA owns a small vacant lot(0.08 acres) in downtown Farmington commonly referred to as the "Riste Lot" located at 209 Oak Street directly west of the Larson and Exchange Bank Building.A location map for 209 Oak Street is attached. The property was originally acquired and demolished by the H RA/EDA of Farmington in 2007 using a combination of Community Development Block Grant(CDBG) funds and CDA Redevelopment Incentive Grant(RIG) dollars. The property is currently zoned B-2 (Downtown Business). Since 2007,there have been discussions at the EDA and City Council level about selling this property for private redevelopment. An Economic Development Authority may sell and convey property owned by it within the city if it determines that the sale and conveyance are in the best interests of the city and its people and that the transaction furthers its general plan of economic development. Since the completion of the Downtown Redevelopment Plan in 2016, the EDA has had discussions about selling this parcel to align with the strategies and opportunities outlined within the Downtown Redevelopment Plan.This includes redeveloping vacant and underutilized sites downtown.The Plan outlines that redevelopment in the downtown core is focused on retaining, reinvesting, and reinvigorating underutilized buildings, sites, and outdoor public spaces. As outlined in the Downtown Redevelopment Plan,the Riste Lot is specifically called out for redevelopment as a current vacant and underutilized site. The Downtown Redevelopment Plan provides direction for future redevelopment while leaving room for flexibility and individual expression as part of the redevelopment process for creating a varied and dynamic downtown environment.The Downtown Redevelopment Plan further outlines how redevelopment of individual sites will be primarily dependent upon property owners who are interested and willing to pursue redevelopment or to sell their property to developers who are interested in redevelopment.There may be opportunities for private property owners to partner with the city to successfully achieve the redevelopment goals of this plan and the property owner. Homestead Community Church acquired a conditional use permit by the Planning Commission in March 2015 to operate a church in the B-2 (Downtown Business) zoning district within the Exchange Bank and Larson Buildings located at 344 Third Street and 213 Oak Street. Since the purchase of this property, Homestead Community Church has invested in the property with fagade improvements and interior renovations. I n December 2018, representation from Homestead Community Church was present at the EDA meeting to express an interest in acquiring the Riste Lot. They have been in contact with city staff frequently regarding the purchase of the Riste Lot since then. Homestead Community Church is now seeking to finalize the purchase of the Riste Lot for the purposes of constructing a brick patio with outdoor furniture(tables and chairs), an open green space, a pergola, and a possible children's playground. Pole iron fencing will be at the entrance of the site(see Exhibit"B" Depiction of the Project in the Contract). As outlined in the Contract for Private Development, Homestead Community Church will be required to file a lot combination request with the County to ensure that the properties remain under common ownership.The Exchange Bank Building, Larson Building, and Riste Lot will be combined and included within a single parcel. Regarding the sale of the Riste Lot, an appraisal was conducted in September 2020 with a fair market value of$35,000. A purchase price of$35,000 was agreed upon at this time. Due to Dakota County and H UD requirements, an appraisal must be less than six months old at the time of the sale, so an updated appraisal with a fair market value of$36,000 was conducted in May 2021. Since CDBG dollars were used to fund part of the acquisition and demolition of the Riste building,there are repayment provisions to the CDBG Program upon the sale of the property to a private entity. 76.9% of the dollars used to acquire and demolish the Riste Lot in 2007 were CDBG dollars. When the Riste Lot is sold,the EDA will be obligated to pay 76.9%of the current fair market value of the property back into the CDBG Program. 76.9%of the $36,000 fair market value is$27,684 to be reimbursed back to the Dakota County CDA CDBG Program fund if the property is sold to Homestead Community Church at this time. City staff encourages the sale of the Riste Lot at this time to Homestead Community Church.The sale of the Riste Lot to Homestead Community Church furthers the plans of the Downtown Redevelopment Plan by allowing a private entity to reinvest and redevelop a vacant lot in downtown to an accessory outdoor use which helps create a varied and dynamic downtown environment.The EDA should have a conversation as to whether or not they wish to sell the Riste Lot for the proposed use for$35,000 or if they wish continue to hold onto this piece of property until a later date for a different redevelopment use. The EDA should discuss if the sale of the property is in the best interest of the city, its people, and if the transaction furthers its general plan of economic development as outlined in the Downtown Redevelopment Plan. ACTION REQUESTED The EDA must hold a public hearing to consider the sale of the Riste Lot at 209 Oak Street to Homestead Community Church. Pastor Kristie Kerr will be present at the meeting and will represent Homestead Community Church if there any questions or concerns from the EDA. After the public hearing,the EDA should make a motion to approve the sale of the Riste Lot and adopt the attached Contract For Private Development and Resolution Authorizing Sale of Property. ATTACHMENTS: Type Description D Exhibit Riste Lot Location Map D Exhibit Riste Lot May 2021 Appraisal o Exhibit Downtown Redevelopment Plan D Exhibit Contract for Private Development D Exhibit Resolution Authorizing Sale of Property Dakota County, MN k$ d y i{III'' ! �a 4 i ♦} �r • t � . u Ili T" m.T hich retainsownersr 0,7t t f that license. Wnder t t liIUN13 t i age-i i ch lution,six moT4hs after the capture date,provided the user+' owledges t the imagery II be used in t ormal course f ness ORN m not,be resold i r distributed for h purpose of Disclaimer.Map and parcel data are believed to be accurate,but accuracy is not guaranteed. Map Scale This is not a legal document and should not be substituted for a title search,appraisal,survey,or 1 inch=36 feet for zoning verification. 5/11/2021 .. - •• Ty• - ppraisal Report Effective Date May 4, 2021 Client Subiect Property City of Farmington Vacant Commercial Land Attn: Kalley Swift 209 Oak Street 430 Third Street Farmington, Dakota County, Minnesota 55024 Farmington, MN 55024 Owner: EDA of Farmington i N _. •..icrl�nsuia,. 7 .. oek i o, se Prepared wErin Waytas, MAI Appraiser AppraiserWilliam R. Waytas, Nagell Appraisal Incorporated 12805 Highway - 300 • mouth, • • • File 1. 11. 1: 952.544.8966 1 Fax: 952.544.8969 NAGELL APPRAISAL INCORPORATED 12805 Highway 55, #300 Minneapolis: 952-544-8966 Plymouth, MN 55441 St. Paul: 651-209-6159 Established in 1968 Central Fax: 952-544-8969 City of Farmington May 4, 2021 Attn: Kalley Swift 430 Third Street Farmington, MN 55024 To Kalley Swift: In accordance with your request, an appraisal report has been made on the following described property: Subject Property: Vacant Commercial Land 209 Oak Street Farmington, MN 55024 Described below is a summary of the appraisal report contained herein. Property Overview The subject is a vacant commercial property located in Farmington, a southern community that is approximately 40-50 minutes southeast of downtown Minneapolis/St. Paul. The subject property is located in the downtown business district of Farmington. Although not located on the main corridor in the downtown district, the subject has the appeal of the surrounding uses and pedestrian exposure. Presently the subject is 3,703 SF (0.08 acres) of vacant commercial land that is currently owned by the Economic Development Authority of Farmington. Given the downtown location and surrounding uses consisting of commercial, office, and retail, a commercial development is likely. Appraised value assumes the subject site is buildable, no surveys provided. Based on the aerial plat of the subject, per county, it appears the properties to the north and east may be encroaching on the subject, see aerial plat for more details. Note: No COVID-19 adjustment applied. The full impact on the subject's market from COVID-19 is not fully known, if any. Report Use Decision making for potential sale to a developer. Intended User(s) City of Farmington Attn: Kalley Swift iii Letter of Transmittal-Continued Extraordinary Assumptions Appraised value assumes soils are stable and buildable, if found to be otherwise appraised value could differ. No survey provided, appraised value assumes the subject site is 100% buildable and does not require any major site improvements prior to development, if found to be otherwise appraised value could differ. Per request, the appraiser did not inspect the subject property. Appraiser previously inspected the property. If any of the described herein is found to be otherwise, value could differ. Hypothetical Conditions None Property Rights Appraised - Fee Simple Interest: The subject is vacant land, as such, the appraised value reflects the fee simple interest. Property Components Appraised - Rea/Estate.The appraised value includes the real estate value opinion. - Furniture, Fixtures, & Equipment (FF&E): The appraised value does not include any values of fixtures, furnishings and equipment. The appraised value reflects real estate only. - Business Value:The appraised value does not include business value. Highest and Best Use Conclusions - As Vacant:Commercial related development Valuation Methodology The highest and best use of the subject is for a continued commercial land use. Given the highest and best use, the following approaches are used: - Cost Approach: Not applied due to subject being vacant land. - Sales Comparison Approach:Sales of competing commercial land will be considered. - Income Approach: Not applied as properties like the subject are generally not rented in the market. iv Letter of Transmittal—Continued FINAL VALUE OPINION (as-is, effective May 4, 2021) $36,000 Exposure Time/ Marketing Time Final values reflect "market exposure" time of under 1 year before the effective Exposure Time: date of the appraisal. Changes in the market, use, lease and/or building subsequent to the effective appraisal date could impact value. Marketing Time: Marketing times for appropriately priced properties is generally under 12 months. Our company has 12 employees, has been in business since 1968 and has sufficient knowledge, education, experience, resources and/or contacts to competently complete this assignment. The accompanying report contains data secured from my personal investigation and from sources considered to be reliable; however, correctness is not guaranteed. To the best of my knowledge and belief, the statements contained in this report are true and correct. Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported. This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice. Please contact us if you have further questions. Sincerely, (A Out k1li Erin Waytas, MAI William R. Waytas Certified General MN 40368620 Certified General MN 4000813 www.nagelimn.com V TABLE OF CONTENTS SUMMARY OF IMPORTANT FACTS & CONCLUSIONS ...................................................... 7 SUBJECTPHOTOGRAPHS .................................................................................................. 8 VALUE TYPE, CONDITION & STABILITY OF PROPERTY................................................... 9 INTENDED USE OF THE APPRAISAL.................................................................................. 9 DATE OF APPRAISAL........................................................................................................... 9 SCOPE OF THE APPRAISAL REPORT.............................................................................. 10 PROPERTY RIGHTS APPRAISED...................................................................................... 11 PROPERTY COMPONENTS APPRAISED.......................................................................... 11 IDENTIFICATION................................................................................................................. 12 REALESTATE TAXES ........................................................................................................ 12 SUBJECT SALES & BUILDING HISTORY........................................................................... 13 REGIONAL DATA................................................................................................................ 14 REGIONALMAP.................................................................................................................. 28 CITY & NEIGHBORHOOD DESCRIPTION.......................................................................... 29 NEIGHBORHOODMAP....................................................................................................... 32 SURROUNDINGUSES ....................................................................................................... 33 SUBJECT MARKET CONDITIONS OVERVIEW.................................................................. 34 SITEDESCRIPTION............................................................................................................ 35 ZONING............................................................................................................................... 36 ZONINGMAP ...................................................................................................................... 37 FUTURE LAND USE PLAN.................................................................................................. 38 FLOODMAP........................................................................................................................ 39 PLATMAP ........................................................................................................................... 40 AERIALVIEW...................................................................................................................... 41 HIGHESTAND BEST USE.................................................................................................. 42 COSTAPPROACH.............................................................................................................. 43 INCOMEAPPROACH.......................................................................................................... 43 SALES COMPARISON APPROACH ................................................................................... 44 RECONCILIATION............................................................................................................... 58 EXPOSURE TIME/ MARKETING TIME .............................................................................. 58 DEFINITIONS ...................................................................................................................... 59 ENVIRONMENTAL & STRUCTURAL ISSUES .................................................................... 60 EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS ............................. 60 ASSUMPTIONS AND LIMITING CONDITIONS ................................................................... 61 CERTIFICATION.................................................................................................................. 63 QUALIFICATIONS ............................................................................................................... 64 ADDENDA TO APPRAISAL REPORT ................................................................................. 67 SUMMARY OF IMPORTANT FACTS & CONCLUSIONS r � a General Description: Commercial Land Appraisal Report: Appraisal Report Current Use: Vacant land Extraordinary Assumptions: Yes, see end of report Hypothetical Assumptions: None Site Size: 3,703 SF, 0.08 acres Year Built: Not applicable GBA: Not applicable Zoning: B-2 Downtown Business (Downtown Commercial District) Future Land Use Comprehensive 2030: Commercial Highest and Best Use: Commercial related development Property Rights Appraised: Fee Simple Business Value/ FF&E: No FF&E or business value included Cost Approach: Not Applicable Sales Comparison Approach: $36,000 Income Approach: Not Applicable Final Value Opinion (as is): $36,000 Nagell Appraisal Incorporated 1952.544.8966 Page 7 SUBJECT PHOTOGRAPHS flit t a Looking east on Oak Street—(per appraiser files) Looking west on Oak Street—(per appraiser files) View of subject—(per appraiser files) View of subject—(per appraiser files) Page 8 Nagell Appraisal Incorporated 1952.544.8966 VALUE TYPE, CONDITION & STABILITY OF PROPERTY Type of Value: This report provides an opinion of Market Value. Condition of Value: This report provides an opinion of the as-is value. Occupancy: The subject is vacant commercial land. INTENDED USE OF THE APPRAISAL The client intends to use the appraisal for decision making for potential sale to a developer. No party, other than the named client and listed intended users, may Intended Use: use or rely upon any part of this report without the prior written authorization of both the named client and the appraiser. This report is not valid unless it contains the original signatures in blue ink. Any unauthorized third party relying upon any portion of this report does so at its own risk. Intended User(s): City of Farmington Attn: Kalley Swift DATE OF APPRAISAL Effective Date: May 4,2021 Not applicable; per client request, appraiser did not inspect subject property; Nagell Appraisals previously viewed the property on August 9, Inspection Date: 2016. Appraised value assumes the subject is as described herein, if found to be otherwise value could differ. Date of Report: May 4, 2021 Nagell Appraisal Incorporated 1952.544.8966 Page 9 SCOPE OF THE APPRAISAL REPORT USPAP defines Scope of Work as The type and extent of research and analyses in an assignment. For each appraisal,appraisal review and appraisal consulting assignment, an appraiser must: 1)Identify the problem to be solved, 2)Determine and perform the scope of work necessary to develop credible assignment results;and 3)Disclose the scope of work in the report. 1) Provide a reasonably supported value opinion as it relates to the intended use&scope. Per assignment request (see addenda for engagement letter), the following degree of research 2) and analysis has been made. The narrative format used is an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2a of USPAP. See individual approaches for further detail. The scope of work for this appraisal includes: • a) Property Identification: Public record, plat maps, zoning maps and aerial photographs were used to identify the subject property. • b) Property Inspection: A viewing of the subject property (was not conducted for this assignment, Nagell has previously viewed the subject property). Physical factors: Based on property viewing and conversations with the client, city and county officials. Lot size is based on county information. Economic Factors: Consisted of gathering of information from market experts, city and/or county offices, and internet about the region, community, neighborhood, zoning, utilities, and any pending projects in the area that may affect the subject property. 3) • c) Extent of Data Researched: Sales data of competing properties within the subject market area were given primary consideration. The most relevant data is used in this report. Sources include, appraiser data files, assessor, internet, developers, agents, MLS, periodicals, in-office library, etc. In addition, during the course of appraisal practice and of this appraisal process, the appraiser has had ongoing discussions with market participants (buyers, sellers, property managers, real estate agents/brokers, appraisers, etc.) and/or viewed market data in relation to how the current real estate market may impact the subject value. The appraiser has not researched the title or ownership records. • d)Type and Extent of Analysis Applied at Opinions or Conclusions: An extensive review of market data was performed. The most recent, similar and proximate data has been used. The data used will be adjusted on a grid. Reasonable and appropriate collection, verification, analysis and viewing has been performed in the valuation approaches, given the purpose and intended use of the report. A final value opinion will be discussed and correlated. The data used was obtained from sources considered credible, yet its accuracy is not guaranteed. If found otherwise, value could differ. Page 10 Nagell Appraisal Incorporated 1952.544.8966 PROPERTY RIGHTS APPRAISED Real property ownership consists of a group of distinct rights. There are two primary property rights, Fee Simple and Leased Fee (as defined by The Appraisal of Real Estate, 1311 Edition, Appraisal Institute). Fee Simple Interest: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Note: This would typically reflect an owner-occupied property. When the property rights appraised are the unencumbered fee simple interest of the real estate, the appraised value is subject to normal easements for drainage, public streets and utilities, if any. The effect of any existing mortgage or delinquent taxes on the subject property has not been considered in this appraisal. Leased Fee Interest: The ownership interest held by a lessor (landlord), which includes the right to the contract rent specified in the lease plus reversionary right when the lease expires. The lessor's interest in a property is considered a leased fee interest regardless of the duration of the lease, specified rent, the parties to the lease, or any of the terms in the lease contract. A leased property, even one with rent that is consistent with market rent, is appraised as a leased fee interest, not as a fee simple interest. Even if the rent of the lease terms are not consistent with market terms, the lease fee interest must be given special consideration and is appraised as a leased fee interest. (The Appraisal of Real Estate, 13th Edition, Page 114) The subject is vacant commercial land; therefore, the appraised value reflects the fee simple interest. PROPERTY COMPONENTS APPRAISED Real Estate: The appraised value includes the real estate value opinion. The methods utilized for the real estate valuation include: • Sales Comparison Approach FF&E: Furniture, Fixtures, &Equipment(FF&E):The appraised value does not include any values of fixtures, furnishings and equipment. The appraised value reflects real estate only. Business Value: There is no business value included in the appraised value. Nagell Appraisal Incorporated 1952.544.8966 Page 11 IDENTIFICATION Address: 209 Oak Street, Farmington, MN 55024 County PID: 14-77000-22-043 Legal: E21 FT OF S 90 FT OF LOT 3 BLK 22 &W 20 FT 4F S 90 FT OF LOT 4 BLK 22 Fee Owner: EDA of Farmington Census Tract#: 0609.04 REAL ESTATE TAXES Taxes, per County Records Payable 2021 Payable 2022 Tax $0 n/a Tax ratio n/a n/a Special Assessments / Solid Waste Fee / NO n/a Other Total Tax&Assessments: TAX EXEMPT n/a Delinquent taxes: None noted, county records indicate taxes are current COUNTY ASSESSOR'S VALUE Payable 2021 Payable 2022 Land $29,600 $30,100 Building N0 $0 TOTAL $29,600 $30,100 $/SF $7.99 per SF $8.13 per SF Typical Tax Ratios by Property Type Commercial(retail, office, industrial, hotel, other,etc.) 1.5%-4.0% Residential (multi-family, apartment,etc) 0.9%—1.5% Single-family dwellings 0.8%—1.5% The appraised value given in this report assumes any/all special assessments, and/or liens are paid in full and that there are no delinquent taxes, fees, payments, association dues, etc. Should it be found that any of these exist the amount should be deducted from the appraised value. Appraiser did not research these items; typically, a title search would reveal any of these. Comments: The subject is City owned (Economic Development Authority of Farmington). As such,the subject is currently tax exempt. Page 12 Nagell Appraisal Incorporated 1952.544.8966 SUBJECT SALES & BUILDING HISTORY Listing History: The subject does not appear to be actively listed for sale on MLS, Costar, RediComps, MnCAR. Sale Price: n/a Sale Date: n/a Buyer: n/a Seller: n/a Sales History: Terms: n/a Source: County, Realist There are no other known or reported sales of the subject property within the past 3 years. Pending Sale: None apparent or reported. Subject is currently vacant commercial land. Per MnCar historical property record Building History: data, it appears the site was previously improved with an older vintage mixed-use building (office, or potentially office/apartment), building was built in 1900, and was subsequently torn down between 2003 and 2008 based on historical aerials. Lease History: None apparent or reported, the subject is vacant land. Leasehold Interest: None apparent Association Dues: None noted, property is not in CIC. Nagell Appraisal Incorporated 1952.544.8966 Page 13 REGIONAL DATA Metro Area Minneapolis-Saint Paul is the most populous urban area in Minnesota and is composed of 186 cities and townships. Built around the Mississippi, Minnesota and St. Croix rivers, the area is also nicknamed The Twin Cities for its two largest cities, Minneapolis and Saint Paul. Saint Paul is the second largest city in Minnesota, as well as the state capital. The area is part of a larger U.S. Census division named Minneapolis-St. Paul-Bloomington, MN-Wl, the country's 16th-largest metropolitan area, composed of eleven counties in Minnesota and two counties in Wisconsin. This larger area, in turn, is enveloped in the U.S. Census combined statistical area called Minneapolis-St. Paul-St. Cloud, MN-WI with an estimated population of 3.5 million people in 2006, ranked the 13th most populous in the U.S. In both of the fully developed central cities—Minneapolis and St. Paul—the population has declined due to smaller household sizes, yet growth in other areas of their counties has been more than offsetting. Below is detailed where this growth has occurred: POPULATION Census Census Forecast Growth Growth County 2000 2010 2019 2000-2010 2010-2019 total annual total annual Hennepin 1,116,200 1,152,425 1,266,000 3.25% 0.32% 9.9% 1.10% a Ramsey 511,035 508,640 550,321 -0.47% -0.05% 8.19% 0.91% m Dakota 355,904 398,552 429,021 11.98% 1.20% 7.64% 0.85% y Anoka 298,084 330,844 356,921 10.99% 1.10% 7.88% 0.88% Washington 201,130 238,136 262,440 18.4% 1.84% 10.21% 1 1.13% v Scott 89,498 129,928 149,013 45.17% 4.52% 14.69% 1.639/o Wright 89,986 124,700 138,377 38.58% 3.86% 10.97% 1.22% u Carver 70,205 91,042 105,089 1 29.68% 2.97% 15.45% 1.72% o 0 Sherburne 64,417 88,499 97,238 37.38% 3.74% 9.87% 1.10% Chisago 41,101 53,887 56,579 31.11% 3.11% 5.00% 0.56% Total 2,837,560 3,116,653 3,410,999 9.84% 0.98% 9.44% 1.05% Overall, the area has experienced moderate to good income growth. Annualized income growth of 2.5% to 3.5% is consistent with national averages. MEDIAN HOUSEHOLD INCOME Census Estimate Growth County 2010 2019 2010-2019 total annual 3 Hennepin 59,236 78,167 31.96% 3.55% d Ramsey 50,136 64,660 28.97% 3.22% m N Dakota 69,508 86,036 23.78% 2.64% y Anoka 65,771 82,175 24.94% 2.77% Washington 77,239 96,671 25.16% 2.80% U) Scott 77,314 102,152 32.13% 3.57% 6 Wright 66,833 84,974 27.14% 3.02% o Carver 80,173 101,496 25.13% 3.14% m Sherburne 69,971 89,250 27.55% 3.06% Chisago 63,810 83,464 30.80% 3.42% Page 14 Nagell Appraisal Incorporated 1952.544.8966 Regional Data—continued Economic Trends The current residential interest rates for a typical 30-year mortgage are around 2.50% to 3.75%. Commercial rates are around 3.5% to 5.0%. Rates are expected to be relatively stable for the foreseeable future. The state of the macro economy (national, state, etc.) declined from its peak in 2006, but in 2010 began showing signs of recovery. Many economists are terming 2007 through 2009 as "The Great Recession". New construction labor costs have steadily increased, along with material costs as well. Overall, construction costs are less competitive to what they were 5 to 6 years ago. Generally, when vacancy is over 10%, new commercial/industrial construction is slow. Listing prices have been increasing steadily since 2012 +/- and are starting to approach peak levels similar to the market in 2006, which was a period of high seller expectations. However, recent buyer and seller expectations regarding value and list prices appear to be trending towards equilibrium. Although well diversified, the TCMA and surrounding Minnesota economy is not immune to the recent soft/declining trends of the overall economy. ISO Minnesota Indez u.e10 1.063 1320 1011 iK ram 1Q0 3r-20 14L7 140 _.__ _. _._ _-._...- - 0W-20 1760 wr20 1166 _._ r J-20 3= 120',,. --------- - �20 1753 /1 -70 1763 1m 30,20 13L3 oe-m 137.0 170 ___ Na 137.3 O-20 M3 120 _. 116 - - w.lr An, 60 7-11aR as 1100-2010 0-2010 0-2017 0__7010 0-2013 DcmfO U.S.hNiez D-19 130.1 7-70 130.3 :W" _- - ra20 1363 wF70 1713 140 ._ M20 1167 wv- 1160 135 J-20 1760 Ji20 12L0 IYf20 1Z 130';. __..._....... ---- 30,20 ui3 Gd-20 1710 N-20 12L3 o.>m —4 110 _...._..._ M-&Aw 61 7rn3s {4 110 0-2010 0-2010 0-2117 0-7011 0-1010 0-300 Source: Minnesota DEED The recent COVID-19 pandemic created a significant drop in the economy due to high unemployment and decreased spending. Both Minnesota and the nation are in a period of uncertain recovery. Nagell Appraisal Incorporated 1952.544.8966 Page 15 Regional Data—continued EMPLOYMENT & LABOR TWIN CITIES LABOR FORCE,EMPLOYMENT&UNEMPLOYMENT Socirce:MN Dept of Employment&Economic DeveloDment •LABOR FORCE •EMPLOYMENT •UNEMPLOYMENT RATE% 10 10.4% 9 8 7.0% 6.3% 7 fY' 6 5.3% 40-- 4.6% � 5 JV 3.7% ' 3.4% 3.2°! �� 4 3.1% i. 2.3°/0 2.7% � 3 r 2 1.70x1 1 0 11 2012 -ui: 19 2020 Over the past ten years, unemployment rates have gone from a peak of around 7.0% to near historical lows of around 2% in 2018. In 2020 and onward the COVID-19 pandemic created a significant spike in the unemployment rate. The most recent data, shown below, indicates that the rate has dropped significantly, but is still not to 2019 levels. Unemployment Rates 16.0- 14.0- 12.0- 10.0— a 6.014.012.010.0 C 6 8.0 U O G 6.0 L A 4.0 2.0- 0.0- 1990 0.01990 1992 1934 1996 1998 2000 2002 2004 2006 2008 2317 2012 2014 2016 2018 2020 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 —US Minnesota Minneapolis-St Paul-Bloomington Source:DEED Labor Market lnfornationOffioe —MN-VA MSG, Local Area UnemploymentStatistics(LAUS) Page 16 Nagell Appraisal Incorporated 1952.544.8966 Regional Data—continued COMMERCIAL REAL ESTATE - Vacancy Rates for Major Building Types MULTIFAMILY TWIN CITIES METRO-11RENT&VACANCY Swrce Martwette ANsors =AVERAGE MONTHLY RENT • VACANCY 7 6 5 4 J 3 2 1 Apartment vacancy declined significantly from 2009 to 2012, but then stabilized in 2013 and onward. New construction is taking place in good quality and built-up markets. Despite the increased number of units, vacancy has remained at/near historic lows and rental rates are increasing. The increase is 2020 is likely due to a combination of COVID-19 as well as new supply. RETAIL ABSORPTION,CONSTRUCTION&VACANCY SLm(e rjshmxx&V;ak&w1d = ABSORPTION • VACANCY% 211, 9.8 9.4 9.2 9.5 10 S.4 8.i 8.3 7.7 8 6 W € t 0.90 0.890.92 0.694 0.33 0 40 ; > 039 0.62 0.47 0.450.53 0.00 M 2 0.26 €' 0.18 0 d 3 M ., ; " 0.01J 0 (0.61) 2016 2017 2019 2020 The above chart is for the entire Metro area. Retail vacancy has increased from 2015 (6.6%) through 202020 (9.5%). New construction in 2015, 2016, and 2017 was relatively significant, which also likely increased vacancy. Construction slowed in 2018 but picked up again in 2019. Properties in strong locations have generally experienced lower vacancy relative to the overall market. That said, building design and functionality can impact a specific property's performance, even in a good area. The COVID-19 pandemic has slowed absorption to a crawl. Nagell Appraisal Incorporated 1952.544.8966 Page 17 Regional Data-continued ABSORPTION,OFFICE M ABSORPTION M CONSTRUCTION • VACANCY% 19.9 19.2 18.0 17.4 20 16.6 16.0 17.0 16.7 16.8 17.0 17.2 18 16 0.97 0.98 1412 0.76 10 _ 0.62 0.63 0.60 0.48 h 0 8 0.38 6 0.27 1 0.21 4 0.01 0.0o D oO 0.02 1 2 (0.34)1 0 Office vacancy is still the highest of the four major building sectors. New construction is typically limited when vacancy is over 10%. Vacancy trended downward from 2010 to 2016, but new construction in 2016 has increased the vacancy rate. Absorption has not been strong enough to overcome existing and under construction supply. COVID-19 has resulted in the market potentially rethinking work-from-home and the subsequent drop in need for physical office space. ABSORPTION,INDUSTRIAL 16.416.1 ABSORPTION !•CONSTRUCTION •VACANCY% F, 16 12.8 14 10.6 3.67 12 9.5 9.4 10 8.1 8.3 2.78 8.0 2.94 2.52 7.0 8 y 2.2� 6.8 1.92 1.98 1.93 6 e 1.81 .52 N 00 0.994 0.61 M 0.89 .64 � 90.71} 0 ?ti IOib ?018 2019 2020 Vacancy has been trending downward since a peak in 2010. Buildings with high clear height(24' +)tend to have stronger demand in the current market. Absorption has been positive since 2011. The slight vacancy rate increase in 2020 appears to be mostly due to significant new construction. Page 18 Nagell Appraisal Incorporated 1952.544.8966 Regional Data—continued The Minnesota Department of Employment and Economic Development (MN DEED) provides a county profile for each county in the state. The profile includes information on population, income, demographics, labor force, etc. Based on the data, it appears that Dakota County is growing, both in terms of population and income. Eagan is the largest city in the county and provides a strong economic base, although Burnsville and Apple Valley area similarly large. Surrounding suburban communities as well host small, medium, and large companies that also contribute to the strong economy of the area. Most new development has been occurring in the northern and central portions of the county. The southern area is more rural with an agricultural economic base. Mendota Heights is commonly considered an average to good community with appealing amenities. The following pages will include the MN DEED report. Nagel]Appraisal Incorporated 1952,544.8966 Page 19 Regional Data-continued The following pages will include the MN DEED report. ECONOMICM EMPLOYMENT AND . Dakota Co. ,.. � Dakota Co.is a part of Economic Development Region 11,which is located in the Twin Cities Planning Region- POPULATION CHARACTERISTICS , ' Dakota Co.'s population has increased so far this decade,ranking as the 11th fastest growing of the 87 counties in the state from 2010 to 2019.It is now the 3rd largest in the state.Dakota Co.'s population has an older median age than the state and a smaller percentage of people aged 65 years and older.The population is aging,especially as the Baby Boom generation moves through the population pyramid(see Figure I)- Current .Current population: 429,021 people Median Age] 38.4 years Population change, 30,469 people state: 38-3 years 2010-2019 7.6% increase Table L Popullatilion by AgeGrOu ,2019 Figure 1.Population Pyramid,2000.2019 Number Percent 2000 Population 2019 Estimate Under 5 years 27,425 6.4% 27,M 27A2S Under 5 years 5-14 years 58,775 13.7% S9,596 58,77S 5.14 years 15-24 years 51,186 119% 25-34 years 56,045 13.1% �'267 Si• ' 1524 years 35-44 years 58,541 13.6% s4ASO 46,04S 25.34 years 45-54 years 55,424 12-9% 68,194 58,541 3S-44 years 55-64 years 58,614 13.7% 49,249 SS,424 45.54 years 65-74 years 37,920 8-8% 26,137 M614 55.64 years 75-84 years 17,726 4.156 14,142 87,920 6S•74 years 85 years&over 7,365 1-7% Tota I Population 429,021 100.0% 8,502 17,726 75.84 years ,-;r 2,902 7,365 85 years&over Dakota Co.enjoyed a natural increase-more births than deaths from 2010 to 2019,but also experienced net in-migration-meaning more people moved in than moved out.Despite suffering domestic out-migration,Dakota Co.welcomed net international in-migration-gaining new Minnesotans from foreign countries(see Table 2). Table 2.Components of P 'on e,2030.2019 Total April 1,2010 to July 1,2019 Population Natural I Vital Events I Net Migration amp Increase I Births I Deaths I Total I Intemaitiortal 13000911c Dakota Co. 30,431 25,833 48,1801 22,3471 48031 5,642 1 -839 State of Minnesota 335,705 250,4881 637,3561 386,8681 98,1611 114,414 -26,253 Page 20 Nagell Appraisal Incorporated 1952.544.8966 Regional Data-continued COUPM PROFILE Dakota Co. POPULATION PROJECTIONS According to the Minnesota State Demographic Center,Dakota Co.'s population is expected to grow from 2020 to 2030,with a rate of change that is faster than the projected statewide growth rate(5.D%).In addition to the overall growth,the number of people aged 65 years and older is expected to increase over the next decade(see Figure 4 and Table 5). Figure 4.Projections by Age Group,2020- Table SPopulation Pro'ectioats by Age Grou 2020-2030 2030 2020 2030 Numeric Percent soo,000 434,203 463,564 Dakota Co. Projection Projection Change Change 450,000 08 years&over Under 5years 26,652 27,832 1,180 4-4% 400,000 N754 years 5-14 years 56,767 55,251 -1,516 -2.7% 350,004 A years •ears 15-24 years 60,564 63,290 2,726 4.5% gSS-64years 25-34 ears 50,548 62,184 11,636 23.0% 300,000 35-44 years 57,072 52,400 -4,672 -8.2% 250,006 ■as sa years 45-54 years 57,827 59,416 1,589 2.7% 200.000 a3Sd4years 55-64 years 61,696 57,283 -4,413 -7.2% 150,066 •2S-34years 65-74 years 39,495 53,607 14,112 35.7% 100,000 01S-24years 75-84 years 1 14,404 1 22,6231 8,219 57.1% 50.000 os-14 years 85 years&over 9,178 9,678 500 5.4% 0Lkder syears Total Population 434,203 463,564 29,361 6.8% 2620 Projectidh030 Projection EDUCATIONAL ATTAINMENT Dakota Co.has a higher percentage of adults(18 years&over)with at least a high school diploma than the state(92.4%),and a higher percentage of people with at least some college experience.Dakota Co.also has a higher percentage of people with an Associate's degree and a higher percentage of people with a Bachelor's degree or higher. Figure S.Educational Attainment,2018 Percentage of the adult population (18 years&over)with at least a high 93.9% 6% t]Less than high school school diploma: ❑High school graduate(ind.equiv.) 22% College-educated:1 72.0% ClSomecollege.nodegree state:1 67.1% •Associate's degree Associate's Degree: 11.0% 22% ■Bachelor's degree Bachelor's Degree: 27.6% u Advanced Degree: 11.4% ■Advanced degree Source-U.S.Census 8urmu,2014-2018Amerkan Comawrtity Nagell Appraisal Incorporated 1952.544.8966 Page 21 Regional Data-continued COUNTY PROFILE Dakota Co. LABOR FORCE TRENDS The number of workers in Dakota Co.increased over the Figure 6.Annual Labor Force Estimates �Minnesota --*-Dakota Co. past year.Longterm,Dakota Co.'s labor force expanded - 242 7903,200,000 more slowly from 2004 to 2019,compared to a statewide 3,340,000 growth rate of 8.0%(see figure 6). u 24D,D00 rp e 3,000,ODD o 223,604 242,790 available workers R 230,000 2904040 y7,183 1 Labor Force change, 16,987 workers 220,0D02 0 2004-20192.800,000 „ 7.5% increase o _ o 21D,DD0 2.700,040 ,^D 2.9% unemployment rate 3.2%Istate 2DD,000 2.604,000 N N N N N N N N N N N N N N N N N N N N O O w wOY 0 0 C 0 7,0411unemployed workers 8 8 8 8 8 .. a V � M Snu ice-DEED Lard Are o V.x m pfc y.^aent StaMties At 2.9%,Dakota Co.had a lower unemployment rate than the state in 2019.Dakota Co.'s unemployment rate increased compared to 2.5%in 2018,and was lower than the 7.2%rate posted in 2009.The number of unemployed workers actively seeking work in Dakota Co.increased over the past year,and is down compared to 2009. Figure 7.Annual Change in labor Force,1990-2019 Average of 5,072 Average of 1,008 Average of 1,726 AM Per yem new workers per year new workers per year 6,000 c 3 4,000 S 2,000 D ' N1 p 2,ODD 0 4,ODp 1 m w wviw . § 8 8 8 § 8 8 8 '� a t a o a o ��, o�c �Y� Q� a o o a a o 0 0 m0 b to c SA is P "8".31 DRD LY•� -,4cy'"'wt' S rt,s y Of!,S Labor force growth has slowed in recent years.After experiencing a net gain of workers from 1990 to 2000,Dakota Co.averaged an annual gain of new workers from 2000 to 2010,and most recently a gain of new workers since 2010(see Figure 7).Moving forward,Dakota Co.is expected to add workers from 2020 to 2030(see Table 6). figure 8.Jobseekers Per Vacancy, Region 11 Vacancies Table 6.Labor Force Labor Force Projection 2009-2019 --e-Region 11 unemployed Projections,2020-2030 2020 20300 Jobseekers per Vacancy y 324,C4ki 6.0 16 to 24 years 3 ,522 42.41 _C 4. 25 to 54 years !SO,447 :55.236 zz 100,000 4,962 5.0 v 55 to 64 years 46,922 43,566 80 ODD 3.6 75,572 CO � 65 years&over 12,852 17,463 13 • JA Total Labor Force 249,743 261,680 0 60.E 2.S 3.0 N r•agra�.,�;...enter o. 1J3 A 40.DD0 347 2.0 ^ Dakota Co.is a part of Region 11,which includes Anoka, 0 20.OW ' 1.0 Carver,Dakota,Hennepin,Ramsey,Scott,and Washington a 0.0 County.The labor market has grown extremely tight in c Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 04 Q4 Q4 recent years,dropping to a ratio of 0.6 jobseekers per 20092010201120122013201420152016201720182019 vacancy during the 4th quarter of 2019(see Figure 8). Sverre:DfFO Job Vcmncy Survey.L4U5 program Page 22 Nagell Appraisal Incorporated 1952.544.8966 Regional Data-continued COUNTY PROFILE Da ata LABOR FORCE CHARACTERISTICS Dakota Co.had a higher labor force participation rate than the state.The labor force in Dakota Co.is more racially diverse than the state (where 85.5%of workers are white alone),but is becoming more diverse over time. Table 7.Employment Characteristics,2018 Dakota Co. Dakota Co. In Labor Force Labor Force Unemp. (available Partic. Rate workers) Mote Female R Total labor Force 241,966 74.0% 3.6% 69.]% 3.9% 124,828 117,033 16 to 19 years 11,721 55.1% 12.7% 52.9% 11.7%1 5,860 5,862 20 to 24 years 21,538 88.7%1 7.2% 84.4% 6.4% 11,047 10,498 25 to 44 years 100,700 91.2% 3.0% 88.6% 3.5% 52,537 48,154 45 to 54 years 54,416 90.4% 2.3% 87.3% 2.8% 17,753 26,687 55 to 64 years 42,585 76.1% 2.5% 72.6% 3.0% 21.854 20,717 65 to 74 years 9,448 28.6% 2.6% 27.6% 2.4% 4,920 4,522 75 years&over 1,440 6.6% 2.8% 6.3% 2.6% 857 593 Employment Characteristics by Educational Attainment Population,25 to 64 years 197,805 87.3% 2.7% 84.2% 3.2% Less than H.S.Diploma 8,006 76.1% 3.6% 65.4% 4.5% 11.5.Diploma or Equivalent 33,884 82.6% 2.0% 78.6% 2.6% Some Colle a or Assoc.Degree 65,113 86.9% 2.6% 85.2% 3.2% Bachelor's Degree or Higher 90,699 90.6% 2.0% 89.8% 1.9% A smaller percentage of workers in Dakota Co.worked in the same county in which they live compared to the state.Dakota Co.also had a longer average commute time than the state. Dakota Co. Figure 10.Time Leaving Home to Table S.Commuting Characteristics,2018 Number Percent go to Work,2018 in Dakota Co. ■Minnesota Worked in state of residence 227,004 99.09/. 2,807,811 97.5% 0% 20% 40% Worked in county of residence 109,833 47.9% 1,831,557 63.6% Worked out of county of residence 117,I71 51.1% 979,134 34.0% 11-00 a-m-to 3.330 Worked outside state of residence 2,293 1.0% 71,995 2.5% 4:59 a.m. 94.1% MEANS OF TRANSPORTATION TO WORK 5:00 a.m.to 559 Car,truck,or van 204,762 89.3% 2,488,152 86.4% a.m 8.9% Public transportation(excl.taxicab) 7,567 3.3% 103,673 3.6% 9.1% Other method(walk,bike,taxi,etc) 5,274 2.3% 126,711 4.4% 6:00 a.m.to6:s9 22.2% Worked at home 11,694 5.1% 164,149 5.7% a'"t' 19.7% TRAVEL TIME TO WORK 7:00 a.m.to 759 Less than 10 minutes 26,828 11.7% 455,009 15.8% a.m. 27.7% 292% 10 to 19 minutes 62,369 27.2% 869,701 30.2% 20 to 29 minutes 55,719 24.3% 639,317 22,296 8:00 a.m.to 859 14.3% 30 to 44 minutes 56,178 24.5% 564,442 19.6% a m 14.2% 45 to 59 minutes 18,114 7.9% 192,947 6.7% 9100a.m.to 60 or more minutes 10,089 4.4% 158,389 5.5% 11:59 p.m. 23.6% Mean travel time to work(minutes) 24.7 minutes 13.5 minutes S, 2624-20JS A-6-C--liry Sumer.5-Yeor 1stimotes Na ell Appraisal Incorporated 1952.544.8966 Page 23 Regional Data-continued COUNTY PROFILE Dakota Co. INCOMES,COST OF LIVING,&HOUSING Dakota Co.had a higher median household income than the state,and a lower percentage of households with incomes below 550,000. Overall,Dakota Co.had the 5th highest median household income of the 87 counties in the state. Median Household Incomel$83,288 Figure 11.Household Incomes,2018 0Less than$25,DDO 0$25,OOD-$49,999 0$50,ODD-$74999 state$68,411 a$75,000$99.999 0$100,00$149,999 ■$150,ODOormore Median Family Incomel$100,822 Dakota Co. 10.3% 17.1% rr•1x state$86,204 Per Capita Incomel$40,441 Minnesota 16.1% 20.3% 15.0% state$36,245 Source:2014-2018Amerieam Community Survey 5-Year fstinwres Dakota Co.also had a higher cost of living than the state,with a required hourly wage of$15.87 for a single person living alone to meet a basic needs cost of living,and an hourly wage requirement of 519.72 for a typical family with 2 adults and 1 child(see Table 9). Table 9.Basic Needs Cost of LLII Estimates,2019 Single Yearly Hourly wage Mat Casts Single Adult,0 children Hearth Trans- Cost of Living Required Child Care Food Care Housing rtation Other Taxes Dakota Co. $33,012 $15.87 50 $333 $151 $911 5633 $349 $374 State of Minnesota $30,9DO $14.86 $0 $335 $137 $759 5629 5336 5379 Typical Family:2 Adults(i Month Casts Family Yearly Hourly Wage working full-time,1 part- Health Trans time i child Cost liwng Required Chid Care Food Housing Other Tam Dakota Co. $61,524 $19.72 $713 $762 $550 $1,172 $730 $542 $658 State of Minnesota $55,548 $17.80 $511 $764 $484 $986 S729 5537 $618 Dakota Co.had a higher median house value than the state,having the 6th highest value of the 87 counties in 2018.Dakota Co.'s housing stock was newer than the state's,with a higher percentage of units built since 2000(see Figure 12). Table 10.Estimated Yakte of Owner- Dakota Co. Figure 12.Year Structure Built,2018 occupied Housing Units,2018 Total Percent O% 20% 40% 60% Total 119,031 100.0% 100.0% •Dakota Cm ■M nne-sota Less than$50,000 4,396 3.7% 5.7% 2010 tx laterIf 8% 2 5% $50,000 to$99,999 3,196 2.7% 9.4% 2000 to 2009 ! 16.25: $100,000 to$149,999 10,037 8.4% 15.2% 14.6% $150,000 to$199,999 19,884 16.7% 19.87 1980 to 1999 % 42.3% 26.5 $200,000 to$299,999 40,572 34.1% 25.7% 1960 to 1979 26.0% $300,000 to$499,999 33,326 28.0% 17.6% 23'8% 00 $500,0or more 7,620 6.4% 6.6% 1940 to 1959 6.73 14.7% Median(dollars) $252,000 $199,700 a.s% 1939 or earlier ` 16.6% Median monthly owner costs,owner-occupied units Figure 13.Housing Costs as a with a mortgage $1,700 Percentage of Income,2018 state$1,547 mortgage Percentage of households with a mortgage spending 30%or more of20.3% � rent their income on housing costs 25.4% Median monthly rent costs)$1,119 stole122.6% 9.8% �i6.1x 52.4X state$944 17.4% Percentage of renters spending 30%or more44,396 of their household income on rent Less than 20% 20%to 24.9% state 45.3% 25.0%to 29.9% •30.0%to 34.9% Source:2014-2018 Americom Community Survev.5-Year fsamaws •35%or more Page 24 Nagell Appraisal Incorporated 1952.544.8966 Regional Data-continued COUNTY PROFILE Dakota Co. OCCUPATIONS At$23.3 in 2020,wages were higher in Region 11 than the state.Overall,Region 11 had the highest median hourly wage level of the 13 economic development regions In the state.Wages were highest for management occupations($57.34)and lowest for food preparation and serving related jobs($12.78)(see Table 11). Table 11.Occupational EmploMent Statistics,2020 Region 11 Occupational Group Median Estimated She re o/ Regional Hourly Regional TotolJobs o[otlan Wage Jobs Ouorient Total,All Occupations $23.30 1,805,980 100.0% 1.0 1 $21.49 2,880,650 100.0% Management $57.34 123,350 6.8% 1.2 1 524.38 165,310 5.7% Business&Financial Operations $35.14 136,210 7.5% 1.3 $12.43 244,300 8.5% Com uter&Mathematical $44.06 83,840 4.6% 1.4 $17.72 4 060 0.1% Architecture&Engineering $39.81 40,170 2.2% 1-2 $20.03 363.800 12.6% Life,Physical&Social Science $36.17 19,520 1.1% 1.2 $24.31 100,060 3.5% Community&Social Service $23.79 32,620 1.8% 0.9 $13.65 70 290 2.4% Legal $39.47 15,960 0.9% 1.3 18.06 216A90 7.5% Education,Training&Library $25.44 93,700 5.2% 0.9 538.00 55,520 1.9% Arts Design,Entertainment&Media $26.54 28,040 1.6% 1.2 $28.97 104 900 3.6% Healthcare Practitioners&Technical 37.89 105,380 5.8% 0.9 $37.35 20.050 0.7% Healthcare Support S14.95 97,250 5.4% 1.0 $24.52 38,540 1.3% Protective Service $21.78 27,830 1.5% 1.0 515.37 277,000 9.6% Food Preparation&Serving Related $12.78 145,600 8.1% 1.0 23.34 57 200 2.0% Building,Grounds Cleaning&Maint. $15.81 48,430 1.7% 09 15.23 83,860 2.9% Personal Care&Service $13.98 44,540 2.5% 1.0 36.07 190.900 6.6% Sales&Related $16.72 175 320 9.7% 1.0 $42.71 97,960 3.4% Office&Administrative Support $21.11 235,850 13.1% 1.0 $52.70 170,650 5.9% Farming,Fishing&Forestry $17.13 1,140 0.1% 0.4 S19.03 212,650 7.4% Construction&Extraction $32.47 57 490 3.2% 0.9 $22.45 45,030 1.6% Installation Maintenance&Repair $25.72 53 710 3.0% 0.9 $14.81 163,160 5.7% Production 19.54 111670 6.2% 0.8 33.87 171550 6.0% Transportation&Material Moving $18.19 128 390 7.1% 0.9 534.35 27 070 0.9% JOB VACANCY SURVEY Dakota Co.is a part of Region 11,which includes Anoka,Carver,Dakota,Hennepin,Ramsey,Scott,and Washington County.There were 75572 job vacancies posted by employers in the 4th Quarter of 2019,indicating extensive opportunity in the region,with openings across several occupations and industries see Figure 14). Table 12.Region 11 Job Vacancy Survey Results,Qtr.4 2019 Figilzii q.Job Vacancie&W Industry,Qtr.4 2019 Construction Number of Services,Ex. Ad-nistratien 3% A1an�factvring Occupational Group Vacancies Wage Offer Pubic zsb g2 Utilities Total,All Occupations 75,572 16.35 Admin 3% W _ _ _ holesale Management 4,793 36.03 Trade Business&Financial Operations ,IS 1 acccrnmodatio 3% Computer&Mathematical 2,971 $36.94 n and Food Architecture&Engineering 1,424 .6 Sevres Li e, ysica is ciences 677 1s% . j... Community&Social Service 2,005 18.36 Education,Training&Library 243 Health[are Healthcare Practitioners&Technical 2,860 18.84 3 Support 682 18.68 andSocialTransportation on Healthcare Su PP Assistance E` _ and Protective Service 4,622 6.56 22% Intormatk(dfphousing Food Preparation&ServingRelated 3,104 15.20 1% zx Building,Grounds Cleaning&Maint. 769 13.68 Arts. Financeand Personal are&Service 10,781 1 . • rtainment, insurance Sales&Related 2,87-314.94 Recreation :r+ Professipnal 5% Office Administrative Support p 1 �d'�idB3rative Educat�iagemen?nd TechnicalServices Real Estate and Waste servialsCompanies and Rental Construction Extraction 9,563 1 .5 S% Services 6% and and Leasing Installation,Maintenance&Repair 7,472 $15.76 Sib Enterprises 1% Production 1, Transportation&Material Moving 2,599 20.01 Source:DF£D Job Vacancy Survey,Qtr.41019 Nagell Appraisal Incorporated 1 952.544.8966 Page 25 Regional Data-continued COUNTY PROFILE Dakota Co. OCCUPATIONS IN DEMAND Table 13.Twin Cities Occupations in Demand,2019 Less than High School High School or Equivalent Some College or Assoc.Deg. Retail Salespersons Heavy and Tractor-Trailer Truck Drivers Registered Nurses Software Developers,Applications $26,029 S52,343 $86,042 $98,421 Combined Food First-Line Supervisors of Food Preparation Nursing Assistants Computer Systems Analysts Preparation and Serving and Ser S24.190 539,064 $36,729 $93,609 Personal Care Aides First-Line Supervisors of Retail Sales Licensed Practical and Licensed Market Research Analysts and Workers Vocational Nurses Marketing Specialists $26,766 544,284 $49,611 $72,220 Janitors and Cleaners, Customer Service Representatives Hairdressers,Hairstylists,and Management Analysts Except Maids and Cosmetologists 31,228 540,281 $27,986 $81,581 Secretaries and Administrative Assistants, Automotive Service Technicians Cashiers Industrial Engineers Except and Mechanics 24,643 S43,840 $42,879 91470 Laborers and Freight,Stock, Industrial Engineering and Material Movers, Office Clerks,General Technicians Financial Managers $35,075 S38,531 $53,574 5131676 Stock Clerks and Order Sales Representatives,Wholesale and Computer User Support Fillers Manufacturing Specialists Human Resources Specialists $29,957 $69,458 $56,377 $63,999 Cooks,Restaurant Teacher Assistants Medical Records and Health Secondary School Teachers,Except Information Technicians Special and Care $30,990 $33,719 $50,570 $70,007 Home Health Aides Maintenance and Repair Workers, Dental Assistants Sales Representatives,Wholes General and Manufacturing $30,476 546,196 $53,942 $78,863 Food Preparation Workers Pharmacy Technicians Machinists Computer and Information Systems Managers 28139 540,810 $54,619 $146,734 So:.�- SFJ Gi r:e.^,f;nr;��Dcr�arC Dakota Co.is a part of the Twin Cities planning region,which is projected to see a 6.8%increase in employment levels over the next decade. In addition to new)obs created,there will be a much larger number of exit openings(see Figure IS)- Table Regional Industry EmpAWMent Projections, 1 Figure 1S.Regional Occupational Employment Projections,2016-2026 Estimated Projected Percent ■From emp4riyment growth ■From exit opencngs 50.000 50,000 150,000 Employment Employ- Change Management 10,9(t911111111111111115122 Twin Cities Planning Region 2016 ment 2026 2016.1026 Business&fmanciaL... 11,676IONIM7 Total,All Industries 1,878,351 2,006,300 6.8% CDmputer&Mathematical 4,566MS,113 Natural Resources R MinriE 3,705 3,273 -11.7% A,Wtecture&Engineering 2,871 !10,470 Utilities 5,568 5,4 -2-6% Lite,PhywaC,&So©al..1,856 14,444 Construction 66,153 71,315 7.8% Ccmmwnity&Socia€Service 4,769=5,794 Manufacturing 169,852 160,446 53legal 1,856 1 4,286% Education,Training&... 9,6331IIIIIIIIIIIIIIIIIIIIIIIIS Wholesale Tra a 1, 1 1. % 7, 3 1 Retail Trade 168,136 170,889 1.6% Ant.Design,.-. 15,466 Healthcare practitioners Sc.. 13,731444 Transportation&Warehousing 65,315 7 Healthcare Support 10,3SSiIIIIIIIIIIIIIIIII210 Information 36,574 37,542 2.6% Proted6eeService 1,624 14,732 Finance&Insurance,Real Estate 138,831 146,282 5.4% Food Preparation&..- 11,77 Professional ervices&Mgmt-of Compani =,15 1-1= Building,Grounds Cleaning.- 4,992 91W57 Administrative&Waste Services 103,946 106,959 2.9% Personal Care&Service 23,2 Educational Services 141,862 153,144 8.0% Office sales&Related 3,5� &Adm+nistrative-...1,13g Health Care&SocialAssistance ,1 L Farming,Fisting&Forestry •1S4 1,060 Leisure&Hospitality 1 168,680 1 181,314 7.5% Construction&Extraction 5,407 x,068 Other Services,Ex.Public Admin 78,765 82,299 4.5% Installation,Maintenance..-.2,639 11,342 Production •5,990 I1� Public Administration ,11 1 1,4 Transportation&material-.- 3,787 Source.OLEO 2016 2026 trnvbvmenr Ourlook Page 26 Nagell Appraisal Incorporated 1952.544.8966 Regional Data-continued COUNTY PROFILE Dakota Co. ECONOMIC CHARACTERISTICS After gaining jobs over the past year,Dakota Co.had the 3rd largest economy of the 87 counties in the state.Dakota Co.was the 40th fastest growing in the past year and the 25th fastest growing since 2014,From 2014 to 2019,employers in Dakota Co.added jobs,but lagged the state's 6.3%growth rate_ 10,5561 business establishments $58,074 lannual average wage 190,960 jobs $11,089,725,736 ltotal industry payroll Job change, 10,185 jobs 2014-2019 5.6% increase Figure 16.Industry Employment statistics,2004.2019 -a-Dakota Co. -6--iviinnesota 2001,000 3,000,000 19D,960 2,900,000 190,000 2.900.290 2800 000 '^ 178.019 y 0 180.000 174 6t3 2,700,000 a 16 2,692,170 � 170,000 2,680, 2,600,000 2'60 2,500,000 e 160,000 2,400,000 150,000 2,300,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Saurce:DEED=W program Average Figure 17.Change in Jobs,2014.2019 Table 15.Dakota Co.Industry Number of Percent of Annual Employment Statistics,2019 Jobs Total Jobs Wage -100.0% 50.0% 0.D% 50.0% 100-0% Total,All Industries 190,960 100.0% $58,074 1 5.6% Agriculture,Forestry,Fish&Hunt 0.4% $34,288 ® 7.7% Mining .J? 0.1% $98,468 -457% Constructior, ID 468 5.5% 1 $76,895 1 2_9% Manufacturing 18,943 9.9% $69,835 2-6% Utilities 543 0.34% 5122,610 29.0% Wholesale Trade 8,761 4.6% 576,841 6,9% Retail Trade 24,114 12.6% 532,917 )g 6.4% Transportation&Warehousing 15,120 7.9% S61,758 17.6% Information 6,349 3.3% $93,438 20.3% Finance&Insurance 12,810 6.7% $93,016 18.8% Real Estate&Rental&Leasing- 2,318 1.2% $53,219 26.2% Professional&Technical Services 7,857 4.1% $87,470 1.1% Management of Companies 5,151 2.7% $99,164 S9A% Admin.Support&Waste Mgmt-Svcs. 7,645 4.0% $42,796 0.1% Educational Services 13,681 7.2°% $53,568 5.E�; Health Care&Social Assisran 23,x51 12 s>, 543,050 12.4% Arts,Entertainment,&Recreation 3,751 2.0P: $93,185 jlilllllllllllll 24-4% Accommodation&Food Services 15,601 8.2%6 $19,549 :a 60% Other Services 7,322 3.c 535,926 3.3% Public Administration 1 5,609 1 2.9% 560,S96 83% .-.-DFED Ouorrerly Census a/F✓nnM1oamenr&LVaoes i t7t�W For more information on Dakota Co.'s population,labor force,and economic trends,contact: Tim O'Neill (Regional Analyst,Twin Cities Metro DEED Headquarters 1 332 Minnesota 5t. I $t.Paul MN 55301 Office:651-259-7401 (Email:timothy.oneill@state.mn.us web:mvw.mn.gov/deed./data/regional-imi/ Data updated:July 31,2010 Nagell Appraisal Incorporated 1 952.544.8966 Page 27 REGIONAL MAP Otsego` ...,o es e t IL_o >. tD1• Forest A N O k, A Lake S H T`�Jp, Ramsey Andover Ham Lake Ibertville \'c"C� o St.Michael:.:.... Dayton �., .. Anoka ---114 Rogers 10" Coon { Champlin oRapids Lino Lakef j Oneka Lake Champlin. Blaine _ ' tCenterville 'Hugo ` Spring 4PinesOsseo Lake ar ......Corcoran Brooklyn Park❑ ' M nds Lvhtte Bear Rockford Maple Grov °- �� e Beach 2�2 oAdley w q��La eJu.II 'ArderHiOs90 Whke BrooklynoosBearLake Syillwater Lake ��- Center flew Brighton�i Lak-"•� 71New H Columbia Heights : i Mahtomedi Oak Park ,Independence iOpendence Hope - 0 ° --_�_ Heights p ndence -- 9 Crystal' �Robbins"tale Roseville Little Canada Maple Plain Plymouth° (((((( U- (.. „r, ° peU �' WASHINGTON Bayport IOaj if 1p. - , Lake Elmo Orono \ j, Lauderdale �l - - `}�tmplewo d H E N Pl E I N ' !� Gol en Valley _ ;I ?North Long Lake` ° Falcon Heights _MinneapolisOakdale oHudso r19 Wayzata 15 St.Lou Peis " rk Mound Spring Park Minnetonka o � Lake thoan\ ~' r Deephaven Hopkins P riste- Tonka Bay, ',i Harrel _ 2 r,g�,e£ye Woodbury Shorewood ,Excelsior dine WestSt Paul `�� Afton M dote ,? tr' Richfield Lake MinnewasP.ta Lake; g„_rant ra ° Rog Lake S 'Paul 5 Eden P ” wpod Victone Chanhassen ❑ Prairie rairie 212 St.Paul Park Cottage 41 se o rove Bloomington Eagan Inver° 58;'• _ ° 61 Grove F„sher L ....... "hts til0�y, Chaska "" Shakopee 101 7? i` yt 1} r Dahloren - Burnsville °Apple Valley Rosemount Hastings Prescott r Prior 42 --~M-. Lake a1> _ 21 jet* 282 Sub i Jordan 0 Lakev9le t mington Helena .... ............ Sr _ T T t Ceder Lake ' HEW Pr 1 t .......................... i Castb Rode Page 28 Nagell Appraisal Incorporated 952.544.8966 CITY& NEIGHBORHOOD DESCRIPTION Type of neighborhood: Outlying southern suburban community Percent built-up: 70% Developed Stage of Development: Stable Redevelopment Limited redevelopment as majority of construction is newer vintages Neighborhood boundaries: City Limits Major Transportation: Highway 3, Cedar Avenue, County Road 31 Single Family Residential 55% Two- & Multi-Family 5% Commercial/Industrial 10% Predominant type& conformity: Other/Vacant/Park Land 30 Total: 100% Average conformity Reputation of the area: Average Typical property age: New to 90+years, predominantly under 40 years Single-Family Home Sales: $100,000-$500,000+ Apartment Sales: $40,000 to$80,000+ per Unit Office Property Sales: $40 to$120+ per SF Retail Property Sales: $75 to$200 + per SF Industrial Property Sales: $40 to$90+ per SF Capitalization Rates: 7-11% Historic Subject Market: Stable Neighborhood Trend: Stable, gradual increase over time Detrimental influences: No major apparent The subject is located in Farmington, which is an outlying suburban community about 40-50 minutes southeast of Downtown Minneapolis. Farmington had experienced significant residential growth from 2003-2007; commercial and industrial uses also increased. However, as a result of an oversupply of new residential units and the declining economy, new development ended in 2008 and property values (residential and commercial) declined. Since 2011, the market is showing signs of stabilization. Farmington has a reputation as a stable community, access to major shopping and support facilities are located within the city, as well as nearby communities including Lakeville to the west/north and Apple Valley to the north. Nagell Appraisal Incorporated 1952.544.8966 Page 29 City& Neighborhood Description—continued Subject City: As of the 2010 census the population was 21,086, in 2000 it was 12,365. This represents an increase of about 70.5%from 2000 to 2010. The 2019 population estimate for the city is 23,091, an increase of 9.5%. Median Income 2016 to 2019 5120,000 ---- ! I $1001WO $80,000 ■Minnesota 56Q000 — ■Dakota Co1nry IS Farmington 540,000 520.000 — — so 2016 2017 2018 2019 The median income for the city is above county and state levels (per Census Bureau). Income has remained steady over the time frame. Median Home Prices: City of Farmington Source: Northstar MLS Median Sales Price T. ales Reg..- —Dakota county —Famwg S375K S350K S250K 1-2016 1-2019 1-2020 12021 Twin Cities Region&Dakota county&Fwmmgton.Single-Fxn t, F Cala_:is 12 moods c1-1..y ate n Ban Mai J x21. rio19uaraneed fnf spa 02021 stll"T The median sale price for a single-family home in Farmington has remained fairly steady with a general increase over the years and is between the Twin Cities Region and county levels. Page 30 Nagell Appraisal Incorporated 1952.544.8966 City & Neighborhood Description —continued Local Market Update — March 2021 MINNEAPOLIS AREA E. .,;. ,L LI E,M1KN@APOLt6 AREA REALIOR&v_, REALTORS' + 19.0% 0.0% + 25.8% Changein Change in Change in FarmingtonNew Listings Closed Sales Median Sales Price March Rolling 12 Months New Listings 63 75 .19.0% 650 731 +12.5% Closed Sales 42 42 0.0% 574 632 +10.1% < Median Sales Price" 5270,639 9340,500 .25.8% $277,000 $30®,000 +11.6% Average Sales Price' S270,754 x,786 +25.5% $280,231 $315,952 +12.7% Price Per Square Foot' $145 $168 +16.1% $144 $156 +8.7% Percent of Original List Price Received' 98.7% 103.4% +4.8% 99.6% 101.15E +1-5% Days on Market Until Sale 54 25 -53.7% 35 30 -14-3% Inventory of Homes for Sate 74 59 -20-3% -- -- Months Supply of Inventory 1-6 1.1 -31-3% March 2M •2021 Rolling 12 Months 220 .2021 75 731 63 650 574 632 42 42 +19.0% 0.0% — ---+12.5% +10.1% New Listings Closed Sales New Listings Closed Sates Change in Median Sales Price from Prior Year(6-Month Average)" 16-County Twin Cities Regoon Farmington �. +40'4 - — -- - --- - — +301% +20% +10% -10% -20% -30% -.._------------ - --- -------- - — --- 1-2%118 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014 1.2015 1-2016 1-2017 I-MIS 1-2019 1-2020 1-2021 Nagell Appraisal Incorporated 1 952.544.8966 Page 31 NEIGHBORHOOD MAP 66 V,�OWI. 208thW=1� "t W Linden St 210th St Willow St o Pine. St I'* 3 �7 F Elm St to FA-]7 Walnut St WalnutStL��� __ ���❑ h —Locust St Locust S't—. CO map ------------ CO E 74 Ln CO (n -6o Ash St 1,Ili,4t r5 Page 32 Nagell Appraisal Incorporated 952.544.8966 " • I „r tvenc Fed�aPBank>FS8' ,; t Ce ( : } I = mI y fr sh MarketIV r !d ZOII•AUlhOrize Kw k Trip ��.. �. M LL r, �tetaile - r rs Zon ,, Au o Repair .�� `_ErCharro.Mex�can "- I • � St:br:as a. Lorgbronul- � - •- .•, Vii,_ `fit ``� , • - •r ♦ . b Old K I w Pizza Man ;y0 Millar-]ia] veterans or-oreign W .e lit I j ry � r - . • t 'fast Spn I•Ir. cePlace - " t� ! _ • Carr?,�dr, i .nrq � r� — - ^�� ��- r! t SUBJECT MARKET CONDITIONS OVERVIEW Market Conditions Overview is based on conversations with market participants, articles, publications and data. Listed below are pertinent conditions of the subject market. Current Market Location SF Zoning List Current $/SF Date List Price 21020 Chippendale _ Ct, Farmington, 26,789 Commercial Mar-2016 $99,000 $3.70/SF Vacant commercial land located in Farmington, property is setback, and has less appealing surrounding uses. 418 Jackson Avenue NW, Elk River 5,663 Commercial Mar-2021 $85,000 $15.01/SF Vacant commercial land located off of the main thoroughfare for the area. Land Market Commercial: $5 to $15, depending on allowed uses, visibility, exposure, etc. Market Balance Current Listings: 0 Vacant Land Listings, less than 0.20 acres Search Parameters: Dakota County Sales Activity: 0 Vacant Land Sales, less than 0.20 acres Search Parameters: Dakota County Market Balance: There appears to be a balance in the market. Marketing Time: 12+/- months typical for properties listed competitively Demand for land in appealing close-in locations such as Minneapolis, St. Paul, St. Louis Park, Edina, and numerous other Minneapolis areas is generally good. However, demand in more outlying locations, like the subject community, around the periphery is still in oversupply. As residential development begins to return to said areas, development land should experience increased demand. Farmington is experiencing residential growth with new construction and as a result that has created some synergy for retail in the area. Overall Market Trend: Potential unstable due to COVID-19, Economists are talking about a potential recession occurring within 24 months. Page 34 Nagell Appraisal Incorporated 1952.544.8966 SITE DESCRIPTION Dimensions: Approximately 40' x 90', based on aerial GIS Gross Site Area: 3,703 SF, 0.08 acres, per county, confirmed with aerial GIS measure Useable Site Area: 3,703 SF, 0.08 acres Topography/Shape/ Low: Mostly level/Rectangular/ None apparent Soil conditions/Drainage: Assume Stable/Appears Average Utilities: Electricity/Gas Yes/Yes Water/Sanitary Sewer City water/City sewer Off-Site Improvements: Street/Curb/Gutter: Bituminous/Concrete/Concrete Sidewalk/Alley: Concrete/ None Visual Road Condition: Average, typical wear and tear Street Lights: Standard Storm Sewer: Yes Access to site(#): Oak Street (0, walk-up only) Frontage: Oak Street Visibility/Exposure: Average, located in downtown area Flood hazard zone: No, see following flood map Bus Line: None apparent Apparent Easements: Typical drainage and utility apparent; it appears there may be a zero- lot line easement, not uncommon for downtown areas Yes, it appears the parking lot to the north is encroaching on subject Encroachments/Conditions: and building to the east appears to be encroaching on subject, based on aerial plat, see following aerial plat. No survey provided Surplus/Excess Land: None noted Land to Building Ratio: Not applicable, vacant land Use/Functional Adequacy: Vacant land N—Commercial S—Commercial, Mixed-use Surrounding Uses: E— Mixed-use buildings W—Single-level office Distance to Major Road: Approximately 1 block south of Elm Street and less than half a mile west of Highway 3 access The subject is an infill site in the built-up Downtown Farmington area. Immediate surrounding uses consists of commercial related uses. Elm Street is the main thoroughfare for the city, the subject is located approximately 1 block south. No other apparent adverse influences or easements noted. Nagell Appraisal Incorporated 1952 544 8966 Page 35 ZONING Subject Zoning: B-2 Downtown Business (Downtown Commercial District) The B-2 downtown business district identifies a variety of general commercial and higher density residential uses for the downtown area in order to expand and strengthen the downtown as the primary commercial Intent(city code): district for the city, create a pedestrian friendly downtown, and promote the city as a cultural center. Objectives of this district are to preserve historical buildings, require high design standards, and provided a diverse mix of community oriented commercial and cultural activities that are pedestrian oriented and accessible to area residents. Animal clinics; breweries; clinics; clubs; coffee shops; commercial recreational uses; commercial services; distilleries; micro distilleries; neighborhood services; nonprofit recreational, cultural and entertainment Permitted Uses: uses; offices; personal and professional services; personal health and beauty services; public buildings; recreation equipment sales/service/repair; restaurants, class 1, traditional; retail facilities; sexually oriented businesses—accessory; small breweries; Minimum lot area: none Minimum lot width: none Major Restriction/ Minimum front yard setback: 0 feet requirements in this district: Minimum side yard setback: 0 feet Minimum rear yard setback: 0 feet Maximum building height: 45 feet Maximum lot coverage: 100% Parking: Varies on use. Use: The subject is vacant land. It appears based on zoning, a wide variety of uses could be allowed as approved by the City on a case-by-case basis. Source: Zoning map, city code Page 36 Nagell Appraisal Incorporated 1952.544.8966 ZONING MAP 60 50 10 40 1 1 300 20 13-2 2 m n 305 3 J1Xk �, B-2nk B- n0 2309 tB-2 . 17 108 60 . ^ 1 40 ^ n 321 10 0 10 50 v 212 13 B-2 1 13-2 •' 0 60 120 329 724 B-2 ©'-2 110 81 47 21 20 20 3.77 p ,�. 3,2 .772 v r 6-2110 n PHOS e0 6.2 50 340 341 0 205 209 X10 B-270 B-p B-2 i2 0 70 25 15 6-2 t744 345 .311 2 B"Za 13-2 m ) 65 21 20 30 p10 60 a n 10 50'- 60 10 25 15 10 _ 42 12 4R 7 25 28 ii0 24 24 12 co 35 25 376 217 f 300 302 J06-72 B 2 210 B-2^ 270 400 - B-2 B-22 B-2 204 B-2 B-2 B-2 B-2 314 8-2 24 m 19 25 a AiNk 69 31 A-1 (Agriculture) P..-'OS(Park/Open Space) ; B-1 (Highway Business) [_j R-1 (Low Density Residential-1.0-3.5 du.!ac) B-2(Downtown Business) L] R-2(Low/Medium Density Residential-3-5-6.0 d u/ac) . B-3(Heavy Bus;ness) n R-3(Medium Dens`ty Res`dential-6.0-12.0 -- . B-4(Neighborhood Business) du/ac) R-5(High Density Residential-12.0+du'ac) Business/Commercial Flex D R-D(Downtown Residential) 1-1 (Industrial) R T(Downtown Transitional Mixed Use) IP(Industrial Park) ROW(Right-of--Way) Mixed-Use r771SSC(Spruce Street Commerc-al) Mixed-Use Commercial/Res-dential - Water Nagell Appraisal Incorporated 1952.544.8966 Page 37 •.+/itf>t>< ■1111 111HIM 111111 ' 11 - ■ iI�S 11111 Illi ■11111111 :11MR111111 !1111! 1111 11111!! 11111 111111 1111 111111: ININ _'IC 1111 __ 11111111 IIi 11111 ill: 1111 i n ,i � ,i IIIII�— 111 : :II1 111111 1111 _ 111111 WOO 111111 Itllll .1111 1111 ����■ ■■■•■ ■■■■■ `� ' 1111! 1111111 1111 "� 0■■■11o■■1 1111 /j; 111111 :x: 211111: :111 •�• •�• SE HIS Milli 111111 1111 1111 ='� ■� C� C� �� =,� `:�= � ■111■ .111■ —_ IM! �■ ■111■ oil NM ME 1■ CIONC : �� �� �, �� ■ill■ ■11mom 1■ "■ _�-_ 211111 � �1� I� �111�11 r - - - • 4 • FLOOD I Prepared for:Nagell Appraisal&Consulting InterFlood 209 Oak St Farmington, 1 t .. �ei►w�ww st_ {v now st� ' .-�:. � o - �,��,;� tee.- —;. _ i. - �-�.-•f� _� ti y�i MAP i . t 1 w:rwi sc - aNnutsi ' q IN J' DATA MAPLEGEND A--by C FEMA Special Flood Hazard Area No Areas inundated by 500-year flooding Protected Areas •-a. Zone:X er 27037CO219E Areas inundated by 1 00-year flooding Ftoodway . .. December PLAT MAP mw s 1 N J' I7 iw ..oerster Buddir v Midler Insurani", No e n Rates IL r� ♦ •i i , Oak St • Oak St Per county. Red arrows indicate the properties to the north and east that appear to be encroaching on the subject property. No survey provided. Page 40 Nagell Appraisal Incorporated 1952.544.8966 I I • i t� ? C6,1es�Merfi�tWomes �� a 4:5 ` y br i rr t r k j Corinthian No 67" —Masonic-Lodge ---- �r Myrtle Chapter S +• •� py j The Market t erster Jewelers n 1 � � He kkili SI r I� akSI OakSt Fa f ik Sr oak Si Dnited$tales'. yBus es sociauon t t��r+d�1� ,�r,k k s s 111T, Gi U- an Rea al' 1 f - Ic nFamdy.. •� `1- I surar -The Pam Farmington Buds 8 Bytes A, lora)Desiq;Sty Hai Rwer Community Church A — J A � � • . . .. . HIGHEST AND BEST USE Highest and best use as defined in The Appraisal of Real Estate, Thirteenth Edition, by the Appraisal Institute, is: "The reasonably probable and legal use of vacant land or an improved property, that is physically possible, legally permissible, appropriately supported, financially feasible, and that results in the highest value." Highest and best use is analyzed in two ways, site as vacant and site as improved. Typically,there are four criteria in highest and best use analysis Legally permissible uses What uses are allowed by zoning? Physically possible uses What uses are physically possible on the site? Financially feasible use Which possible and permissible uses will produce a positive return? Maximally productive use Of the financially feasible uses, which use produces the highest return warranted by the market(the ideal improvements)? Site as Vacant: Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor,capital,and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements. The Dictionary of Real Estate Appraisal,Fifth Edition,by the Appraisal Institute. Legally Permissible Uses: The subject is currently zoned B-2 Downtown Business and guided for commercial. The current zoning allows for a variety of potential uses including office, retail, commercial, restaurant, etc. Mixed-uses allowed with a conditional use. Physically Possible Uses: The physical characteristics of the site appear suitable for development. Utilities are available. The subject has good access and average visibility/exposure along Oak Street. The subject would allow for a number of potential uses.Appraised value assumes subject site is buildable. Financially Feasible Uses: Typically, surrounding uses, market demand, and availability of financing drive financially feasible uses. Surrounding Uses: Directly to the north, east, and south are commercial related properties. Located to the west is a single-level office property with residential beyond. Given the surrounding uses a commercial related use would be logical. Financing: Over the past 3+ years, financing has loosened up since the "Great Recession". However, borrowers typically must be well qualified with 20% to 30% down. For new projects, lenders commonly require significant pre-leasing activity for multi-tenant properties. Market Demand: The subject area is mostly built-up with good demand in the immediate area The subject has limited traffic visibility/exposure. Financially Feasible Uses: Commercial related use Maximally Productive Use: Based on the above discussion, zoning, exposure, and access, a commercial related use would be logical. Given there is a gap between cost and value, consideration should be given to timing of any new development. Therefore, the highest and best use of the subject is considered to be for commercial related development as market demand warrants and zoning allows. Property would likely be a zero-lot line (similar to downtown buildings in the immediate area), and potentially could have multilevel layout. It would be logical to apply for a mixed-use to allow for apartments on the upper level. Given shape of subject it would likely be developed as a single site. Most probable buyer would be a developer that would either rent or owner-occupy the subject. Another potential buyer could be an adjacent property owner wanting to expand their building or parking area. Page 42 Nagell Appraisal Incorporated 1952.544.8966 COST APPROACH The Cost Approach is not applied as the subject is vacant land only. INCOME APPROACH The subject is vacant commercial land which is rarely leased in the market. Due to limited rent rates and capitalization rates the Income Approach was considered not reliable and was therefore not applied. Nagell Appraisal Incorporated 1952.544.8966 Page 43 SALES COMPARISON APPROACH The Sales Comparison Approach to Value is predicated upon sales of properties with similar characteristics as the subject. The primary premise of this approach is that the market value of the subject is directly related to the prices of competing properties after adjustment. Adjustments are made in an effort to account for significant differences. Supply and Demand: Sales in the market result from negotiations between buyers, sellers and lenders. Buyers reflect market demand and sellers supply. If demand is high, prices tend to increase, if it is low, prices usually decrease. Substitution: The principle of substitution holds that the value of a property tends to be set by the price paid to acquire a substitute property of similar utility and desirability within a reasonable amount of time (The Appraisal of Real Estate, 14th Edition). The Sales Comparison Approach is less reliable if substitute properties are not available in the market. There are adequate sales to apply the sales comparison approach and formulate a reliable indication of market value. Balance: The market tends to force a balance between supply and demand. Balance can change due to shifts in population, variations in purchasing power, consumer tastes and preference and time. Externalities: When possible, select comparables with similar location, economic conditions and support facilities. The Following Outline Is Used In The Sales Comparison Approach: -A location map of the comparable sales. -Comparable sales are listed. -An adjustment grid using the comparable sales. -A discussion of adjustment and conclusion of value. Page 44 Nagell Appraisal Incorporated 1952.544.8966 Comparable Location Map Primary Comparable Selection/Search Criteria: • Commercial properties with competing exposure, scope expanded as needed • Sale date of January 1, 2016+, older sales may be considered if appropriate • 1,500 SF to 10,000 SF +/-, properties outside of range will be considered based on proximity • Data from competing communities • In some instances, older data and/or data from competing communities will be utilized due to proximity to the subject and other characteristics similar to the subject. "169" East Baha - - -[ F O L H Lake :;.•� ° fo - Chisago City Dresser Ili Arland Oak Grove _ o .' --1.G8: Ame °Clayton '..:: r ' Elk River Osceola Y Mortice t .. ........... . ..o q Clear Annandale nn� .`iemseY, A N O H P. Forest Lake� FE—Z91- Lake T AEedvea °Andaver Sale Comparable 5 ._. Deylon-.. ka a................ ...DediPerk...._.. app ael Coo11 !14 Omka Lake Star Prairie, Potlgela u alo Michael Rogers CMMPlht ' :North ° ° * ° avflle '4 `. °Sterdan :Pork C.. rooRyp ° t Hugo Sorsa S T. C R O ' n PerT`c ;6t0 Lak4P Forest s:: a Cokato Rockford Sale Comparable 1 ,: °��nd Emerald Waverly MgHe Grove HINOTON Desdel—', -_ s Gienwwd Cly 12 H-E N N E F ♦ _ tomedi Stillwater < $Howard Lake Delano°` < New Hope. I W on Oak Perk H hts e laiepe.ience dh St. e5 Boycevie` -e. Plymouth° Gold 5ale Comparable 6 N I 5 (' O Maple Plem o alley ° on Hemmontl 5 I N : e JL O Watenpwn lYMlneapn is RAM ,..eland Bekhnn v- d"11'2 Knapp Sale Colnpdable 3 o oodbu <Skver Lake T:�Hdlywootl Minn o dm - ry Afton 1 i Wit St Sau:h St.Paul ° chinson to I Lester L VNaccR✓a + Fa;�- Prairie W-ont� o den Prairie �71 ttfleld A�enddtao Cottage , ----- o rove i C L E O D HI°omingtono 1°kbstm Yaxg apc _ Ap de v Ile nv Grde Heig Sok Conparabk 2 ' ° Sal.Co arabla4 i. - Burn—lie ( Eknwootl°. C R V E R $hak BPe� Fa 0 y n m Saie Comp Ilea mp Burnsville - Sao ���PPPPPP o 1 Y ..5 prescdt P I E R t E El Peso .............. •y�bgg Pr ar LSVe Iz a2 Hasting� V Rock Ellin . 6 Trimbelle Ellsworth : Eau G New Auburn ' .... - .........__... 5ale Com abla 7 .. 1 : Lekeuille D A h: O T .4 Par _,Farmington PNm CRY° Dva1d 6 Helene ,.t.. tl Ip ° e. .. Bale .I .....aTrenion S 1 8 L E 1' -°Audnglon Plaine S C J T T Cedd Lem .,a Bay City .. hW-Gvrl d -.- ...New Prague4_,_,Subject 3. Red V*e ..... .. .. .... Maxol -. ....... .e.._....- Heriderson Webster Rock I Cannan ;. es Le o onstlale fe Camon F O O O D H U E Lerilgeon° Wh-U.ntl '" agier� 69. .......Leke.Cty..• Pepin Nelso ° Moritgomery - _ ° 8 Le Cold R1 I N N $ O }'A °ra00 b.Wabash e C O L L E T ........... L E S U E U R St Paid ` � Cdvnrf city °CJevelend J • west A6eny _hlcoUdt kT?ttesde C e - �"— e:Mazeppe W A°B A S H A H R ... ..hgnbrd ° arnbrle Y` 1 / H n _ (14' ��_�°' ��" �MAelCalt RrsMrd J borer Memorial Hardwood State Forest Lake .... ... a9Vs�t,eVMaiervM.......... J ........ ............. 'W 1 i ldedlord : .. Wopord ........ :.Qonoca PYte Butternut ..__ e _jfi� .Ylo'L°°'tl °plaklvirtw rSkyfne ' ane Crystal .lanasviB i OYMdwtrle : ................ R tet" °RaPldan k Clair° - .__�MtOrVrE Garden,Cly•.. fie; e2 22 8 LPU E E A R T H WA-S E C A C0! S T E L�E CJere>tllora °Cl Certd g 4 t� 4 D O D G E TMrttld �adord °Rmbd[on. Cdrors-. , M S T E D�• a St.Clharie L Mapleto :elf n 13 9mnd� Sale Car par"a i,Amboy, r 112; New RicNerM IM pr. •ryey�p Saratoga Earth 1 �aldele Chatfield: ..a.Rlrvrosde Cidteve Cerld L =Itadlertl Rush Delevan Nagell Appraisal Incorporated 1952.544.8966 Page 45 Land Value- continued Land Sale Comparable#1 x ;w 33N F.e r. z 33N M N w�i'� 31E ' 3m MIm..MIM na: KUmrfYl y). g 31.A.N 301h 1e Mh 2 ,....,.... mh Property Data Address: 3120 Emerson Avenue North, Minneapolis PID/Legal Description: 09-029-24-42-0026 Description: Land parcel Zoning/Intended Use: Commercial Physical Characteristics: Average Utilities: Available Site Size: 6,098 SF Development Appeal: Average Comments: Commercial property located in Minneapolis. Immediate area has a softer commercial market. Sale Data Sale Price: $40,000 Price/SF: $6.56 per SF Sale/Close Date: April 10,2020 Sale Terms: Market Buyer: Edward Schliep Sale Conditions: Typical Seller: Big O Investment Corp Source/Verification: MLS, CREV Comments: Sale was listed on the open market. Page 46 Nagell Appraisal Incorporated 1952.544.8966 Land Value--continued Land Sale Comparable#2 T S r S Property Data Address: 1101 Vermillion Street, Hastings PID/Legal Description: 197730004280 Description: Land parcel Zoning/intended Use: Commercial Physical Characteristics: Average Utilities: Available Site Size: 8,712 SF Improvements: None Vacant commercial property located in Hastings. The property has good exposure along Comments: Vermillion Street, a main thoroughfare for the immediate area and is located near an intersection. Sale Data Sale Price: $110,000 Price/SF: $12.63 per SF Sale/Close Date: August 15, 2016 Sale Terms: Cash Buyer: E&R Investments, LLC Sale Conditions: Typical Leonard R Heiliger and Irene Seller: M Heiliger Join Irrevocable Source/Verification: RediComps, CREV Living Comments: Market transaction reported. Nagell Appraisal Incorporated 1952.544.8966 Page 47 Land Value--continued Land Sale Comparable#3 r tt w Property Data Address: 116 Main Street West,Waconia PID/Legal Description: 750503640 Description: Land parcel Zoning/Intended Use: Commercial Physical Characteristics: Average Utilities: Available Site Size: 3,049 SF Improvements: None Comments: Commercial parcel in competing location. Similar overall site size in a downtown location. Sale Data Sale Price: $30,000 Price/SF: $9.84 per SF Sale/Close Date: July 6, 2016 Sale Terms: Cash Buyer: Paul&Vici Scheuble Sale Conditions: Typical Seller: Louann&John Subheimer SourceNerification: Appraiser Files, CREV Comments: Buyer was the adjacent property owner. Per CREV there was no reported significant difference in the price paid. Page 48 Nagell Appraisal Incorporated 1952.544.8966 Land Value --continued Land Sale Comparable#4 � _Lake�W� sYt ca"e'tlY� Lake SI E v" " u c 2 Main St W _ 'y � Mam Si E cae� d' y _.'4M 05 a : y- A 21d St E • away N y Std St W aid 9 E Std St E J St W ath St Ea 5m St W Property Data Address: 26 Elm Street South,Waconia PID/Legal Description: 750502630 Description: Land parcel Zoning/Intended Use: Commercial Physical Characteristics: Good Utilities: Available Site Size: 9,148 SF Improvements: None Comments: Commercial property located in Waconia. Property rated to have good development appeal due to frontage on Elm Street and alley(allows access to rear of site for parking if desired). Sale Data Sale Price: $120,000 Price ISF: $13.12 per SF Sale/Close Date: March 2, 2018 Sale Terms: Market Buyer: 16 South Elm Street, LLC Sale Conditions: Typical Seller: Steven C. Menefee SourceNerification: RediComps, CREV Comments: Buyer owned adjacent property, however market transaction reported. Nagel[Appraisal Incorporated 1952.544.8966 Page 49 Land Value--continued Land Sale Comparable#5 i 5 Property Data Address: 411 Oak Avenue South,South Haven PID/Legal Description: Multiple Description: Land parcel Zoning/Intended Use: Commercial Physical Characteristics: Average Utilities: Available Site Size: 2,614 SF Improvements: None Vacant commercial property located in South Haven, an outlying community. Property also Comments: brackets the subject site size. Property has somewhat less exposure than the subject, community located along the Highway 55 corridor which connects to downtown Minneapolis. Sale Data Sale Price: $24,750 Price/SF: $9.47 per SF Sale/Close Date: July 25, 2017 Sale Terms: Cash Buyer: Schaefer Curt Sale Conditions: Typical Seller: City of South Haven Source/Verification: MLS Comments: The property was listed on the open market. Page 50 Nagell Appraisal Incorporated 1 952.544.8966 Land Value--continued Land Sale Comparable#6 9 m � Y y � "sm-r sc v: _.. ^Sele camvatbs Wnona SI W ., _;....., ..... W.—St W $ rin3 u W d fi W—ph'St 1 S11RN SL 5 W Bernar Wnsto Ct o Ju— Property Data Address: 846 Smith Avenue South,St.Paul PID/Legal Description: 07-28-22-33-0185 Description: Land parcel Zoning/Intended Use: Commercial Physical Characteristics: Average Utilities: Available Site Size: 6,970 SF Development Appeal: Average Comments: Commercial property located in St. Paul. Property is located in more of a residential neighborhood, less appealing surrounding uses. Sale Data Sale Price: $45,000 Price/SF: $6.46 per SF Sale/Close Date: May 15,2019 Sale Terms: Market Buyer: Patrick Schacherer Sale Conditions: Typical Seller: Jeffrey&Patricia Micko Source/Verification: CoStar, CREV Comments: Sale was listed on the open market. Nagell Appraisal Incorporated 952.544.8966 Page 51 Land Value--continued Land Sale Comparable#7 u. Plban Si A i MEMO .g 'y e o m, $,p Haen S r Z a a Property Data Address: XXX Broad Street, Prescott,WI PID/Legal Description: 2710112141003 Description: Land parcel Zoning/Intended Use: Commercial Physical Characteristics: Average Utilities: Available Site Size: 5,227 SF Development Appeal: Average Comments: Commercial property located in Prescott, Wisconsin with superior location (downtown area, river amenity). Sale Data Sale Price: $102,500 Price/SF: $19.61 per SF Sale/Close Date: August 20, 2020 Sale Terms: Market Buyer: Prescott Roadhouse, LLC Sale Conditions: Typical Seller: Schaefer of Toner, LLC Source/Verification: MLS, Realist Comments: Sale was listed on the open market. Page 52 Nagell Appraisal Incorporated 1952.544.8966 Land Value -- continued Land Sale Comparable#8 3rd St-W_ a w 9 v ; r 30 — 2�d st nnv r 63 Y ; �d St SE 1 a m 3rd St SE C'—te Si Caperade 8 CmmWy < i n � R Q' N N Property Data Address: Main Street&4th Street,Stewartville PID/Legal Description: 543413030222 Description: Land parcel Zoning/intended Use: Commercial Physical Characteristics: Average Utilities: Available Site Size: 9,583 SF Development Appeal: Average Comments: Commercial property located in Stewartville, an outstate community located outside the Rochester area. Sale Data Sale Price: $32,000 Price/SF: $3.34 per SF Sale/Close Date: September 30,2020 Sale Terms: Cash Buyer: HuntHaus Properties, LLC Sale Conditions: Bank Owned Seller: First Alliance Credit Union Source/Verification: RediComps, CREV Comments: Sale was listed on the open market. Property was bank owned, buyers typically are bank owned. Nagel]Appraisal Incorporated 952.544.8966 Page 53 Land Value--continued Land Sale Comparable#9 Ld tt ; i s i�v N Linden Ln n I ...I.ii4 r1 18 1 ` f Church Lake BFrd 't Property Data Address: 7984 Rose Street,Victoria PID/Legal Description: Several Description: Land parcel Zoning/Intended Use: Commercial Physical Characteristics: Good Utilities: Available Site Size: 16,553 SF Development Appeal: Average Comments: Commercial property located in Victoria with direct Highway 5 exposure. Property has good development appeal due to property layout and corner setting. Sale Data Sale Price: $375,000 Price/SF: $22.65 per SF Sale/Close Date: February 25,2021 Sale Terms: Cash Buyer: Brian Shermock Sale Conditions: Typical Seller: Victoria Property, LLC Source/Verification: CoStar, CREV Comments: Sale was listed on the open market. Page 54 Nagell Appraisal Incorporated 1952.544.8966 Sales Comparison Approach-continued Listed below is the adjustment grid for the comparables. Comparable items of significant difference are adjusted for on a price per square foot basis. Description Subject 1 2 3 4 5 6 7 8 9 209 3120 1101 116 26 411 846 )00( Main Street 8 7984 Address Oak Street Emson Avenue North Vermillion Street Main Street West Elm Street South Oak Avenue South Smith Avenue South Broad Street 4th Street Rose Street Farmington Minneapolis Hastings Waconia Waconia South Haven St.Paul Prescott,WI Stewartville Victoria Proximity Subject 26.3 mi N 15.6 mi NE 34.2 mi NW 34.2 mi NW 68.8 mi NW 19.5 mi N 17.7 mi nE 63.2 mi SE 29.6 mi NW Financing Market Market Market Market Market Market Market Market Cash Cash Conditions Typical Typical Typical Typical Typical Typical Typical Typical Bank Owned Typical Sale Date -- Apr-20 Aug-16 Jul-16 Mar-18 Jul-17 May-19 Aug-20 Sep-20 Feb-21 Location Average/Good Average-Softer Good-Expo Average/Good+ Average/Good+ Average/Good- Average Good-Paver Arenity Further Out Good-Expo Zoning/Use Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Phys Char Average Average Average Average Good Average Average Average Average Good Development Appeal Average Average Average Average Average Average Average Average Average Average Improvements None None None None None None None None None None Utilities Available Available Available Available Available Available Available Available Available Aveilable Sale Price - $40,000 $110,000 $30,000 $120,000 $24,750 $45,000 $102,500 $32,000 $375,000 Site Size(SF) 3,703 6,098 8,712 3.049 9,148 2,614 6,970 5,227 9,583 16,553 Price per SF $6.56 $12.63 $9.84 $13.12 $9.47 $6.46 $19.61 $3.34 $22.65 Cond.Adj. +/- Financing Market Conditions Typical Sale Dale - 25% Net Cond.Adj. 0% 0% 0% 0% 0% 0% 0% 25% 0% Effective$/SF $6.56 $12.63 $9.94 $13.12 $9.47 $6.46 $19.61 $4.17 $22.65 Adjustments +/- Location Average/Good 25% -20% -5% -5% 5% 10% -25% 25% -20% Zoning/Use Commercial Phys Char Average -20°% -20% Developrrent Appeal Average Improvements None Utilities Available Site Size(SF) 3,703 5% 5% 5% 10% Net Adjustment 25% -15% -5 -20% 5% 10% -25% 301/6 -30% Adjusted Price per SF $8.20 $10.73 $9.35 $10.49 $9.94 $7.10 $14.71 r $5.43 $15.86 Limited sales of small stand alone parcels in downtown areas as such, scope of search expanded. Nagell Appraisal Incorporated 1952.544.8966 Page 55 Sales Comparison Approach—Continued Discussion of Adjustments Property Rights: Refers to the ownership interest conveyed at the time of sale. Properties with leases or other encumbrances in place can sell for more or less than comparable properties that sell fee simple interest. • The sale prices of the comparable properties were not impacted by existing lease terms (if any). Financing: The impact financing may have had on the sale price, favorable interest rate or term. • All sales were cash or estimated to be near or at market rates. Conditions of sale: Reflects non-market conditions, which may or may not have impacted the sale price, such as differing motivations of buyer or seller(related parties, distressed or liquidation sale, listings, pendings, occupancy, assemblage, etc.), impending eminent domain proceedings, influence due to tax ramifications, or lack of market exposure. • Comparable 8 adjusted for bank ownership. Market conditions: • The sales data did not indicate a time adjustment over sold comparables. Location: This adjustment is based on the appraiser's judgment. It takes into consideration surrounding land uses, intended use, neighborhood characteristics, traffic, exposure and access. • Comparable 1 adjusted for softer commercial market. • Comparable 2 adjusted for good exposure and location near an intersection. • Comparable 3 adjusted for superior community. • Comparable 4 adjusted for superior community location. • Comparable 5 adjusted for smaller community • Comparable 6 adjusted for inferior surrounding uses. • Comparable 7 adjusted for superior location and river amenity. • Comparable 8 adjusted for outstate area. • Comparable 9 adjusted for good highway exposure. Zoning/Use: Page 56 Nagell Appraisal Incorporated 1952,544.8966 • Comparables have competing zoning, no adjustment. Sales Comparison Approach—Continued Physical Characteristics: Shape and topography adjustments reflect the market preference for rectangular and level parcels, which optimize development potential. • Comparable 4 adjusted for appealing development appeal, due to good frontage along Elm Street and alley access. • Comparable 9 adjusted for good development appeal with two site layout and corner setting. Improvements: • Comparables considered competing, no adjustment warranted. Utilities: • Comparables all have access to public utilities, no adjustment warranted. Site Size: • Adjustments recognize larger parcels of land typically sell for less per SF than smaller sites. Conclusion: The comparables used are rated to be the most indicative of data analyzed and bracket the subject value. Other sales reviewed were older, further and/or needed more adjustment. Adjustments are made on a per square foot basis. The comparables utilized in this analysis each have several similar characteristics in common with the subject. While none are totally identical to the subject, each represents a viable alternative to a prospective buyer of the subject property and, after adjustment, can be utilized as an indicator of market value for the subject property. Indicator Un-adiusted Price per SF Adiusted Price per SF Range $3.34 - $22.65 $5.43 - $15.86 Average $11.52 $10;24 Median $9.84 $9.94 Variance in data is not uncommon for smaller site sizes in fringe communities. Based on the subject characteristics, a rate near the mid-range is considered appropriate. Site Size(SF) Value per SF Total Nagell Appraisal Incorporated 1952.544.8966 Page 57 3,703 SF $9.75 $36,104 '001111 W11 ' ' RECONCILIATION Indicated Value by Cost Approach Not Applied Indicated Value by Sales`'Comparison Approach $36,000 Indicated Value by Income Approach Not Applied The Cost Approach to value was considered less reliable as the subject is vacant land. The Direct Sales Comparison Approach to value analyzed recent sales of vacant land as compared with the characteristics of the subject property. Adjustments were made to the comparables to make them as similar to the subject as possible. This results in an indication of market value at which a typical buyer would be willing to pay for the subject property. Quantity and quality of dated rated to be fair, very few sales in downtown areas with small sizes sell. The Income Approach is typically preferred for income-producing properties. The reliability of this approach is a function of accuracy of rent and expense data and the capitalization rate. Limited to nil available data on land properties such as the subject as they are typically not rented. Therefore, the Income Approach was not applied. Conclusion: All weight given to the Sales Comparison Approach: NOTE: Changes in the economy, market, building, use, lease, and/or management, etc., subsequent to the effective appraisal date could impact market value. Typically, unstable and/or distressed properties with unusual conditions and/or motivated sellers tend to sell below market value. Based on market observations and discussions with various market experts, bank owned discounts can range from 10%-50%+. The appraised value opinion is considered to be indicative of the most probable price within the subject market(see Market Value Definition in rear of report). The actions of buyers and sellers operating in said market generally reflects a bell curve,with most participants and prices in the middle of the curve. However, there are right and left tail market participants that may have a different perception of value than most buyers/sellers resulting in a willingness to pay more or less than the appraised value opinion. Seller may be fortunate and find a buyer who needs this property and is willing to pay more,conversely there could only be buyers that are towards the left,that are willing to pay less. Awn[r Pero[ i Sole Peepk ', Sore P."k EXPOSURE TIME/MARKETING TIME Page 58 Nagell Appraisal Incorporated 1952.544.8966 Reasonable Exposure Time: Typically 12 months before Marketing Time Opinion: 6 to 18 months or less after the the effective date of the appraisal. effective date of the appraisal. DEFINITIONS MARKET VALUE - The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (A)buyer and seller are typically motivated; (B) both parties are well informed or well advised, and each acting in what they consider their own best interest; (C)a reasonable time is allowed for exposure in the open market; (D) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto;and (E) the price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Dictionary of Real Estate Appraisal,Fifth Edition,Appraisal Institute Nagell Appraisal Incorporated 1952.544.8966 Page 59 ENVIRONMENTAL & STRUCTURAL ISSUES Regarding any adverse environmental and/or improvement structural conditions (such as, but not limited to, hazardous wastes, toxic substances, mold, construction defects or inadequacies, etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property: None are apparent, however, appraiser is not an expert in this field. Value assumes no hazardous or structural conditions exist. Value assumes any abandoned wells will be properly sealed. If any of these conditions exist the appraised value could differ significantly. EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS As stated by USPAP; Extraordinary Assumption: An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions of conclusions. Appraised value assumes soils are stable and buildable, if found to be otherwise appraised value could differ. No survey provided, appraised value assumes the subject site is 100% buildable and does not require any major site improvements prior to development, if found to be otherwise appraised value could differ. Per request, the appraiser did not inspect the subject property. Appraiser previously inspected the property. If any of the described herein is found to be otherwise, value could differ. Hypothetical Condition: That which is contrary to what exists but is supposed for the purpose of analysis. None Page 60 Nagell Appraisal Incorporated 1952.544.8966 ASSUMPTIONS AND LIMITING CONDITIONS 1. The appraisers assume no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor do the appraisers render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership and good management. 2. The furnished legal description is assumed to be correct. 3. Any sketch in the report may show approximate dimensions and is included to assist the reader in visualizing the property. The appraisers have made no survey of the property. It is assumed unless otherwise noted that no survey has been viewed and that all improvements are located within the legally described property. 4. The appraisers are not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made therefore. 5. The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. 6. The appraisers assume that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraisers assume no responsibility for such conditions, or for engineering, which might be required to discover such factors. 7. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, radon gas, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 8. Information, estimates, and opinions furnished to the appraisers, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, the appraisers can assume no responsibility for accuracy of such items furnished the appraisers. 9. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the appraisers are affiliated. No part of the contents of this report, or copy thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, reference to any professional appraisal organizations, or the firm with which the appraiser is connected), shall be disseminated to the public through advertising, public relations, news, sales, or any other public means of communications without the prior written consent and approval of the appraisers. Nagell Appraisal Incorporated 1952.544.8966 Page 61 Assumptions & Limiting Conditions—continued 10. The appraisers have no present or contemplated future interest in the property appraised; and neither the employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value of the property. The appraisers have no personal interest or bias with respect to the parties involved. 11. The appraiser has personally inspected the subject site (unless noted otherwise). The comparable sales data has been viewed via aerial maps, photographs and/or online street views along with file pictures, when available. To the best of the appraiser's knowledge and belief, all statements and information in this report are true and correct, and the appraisers have not knowingly withheld any significant information. 12. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions, and conclusions. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. The appraisal is for the sole use of the named client. 13. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of the property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 14. This appraisal assignment was not based on a requested minimum valuation or specific valuation or approval of a loan. 15. To the best of our knowledge and belief, the reported analysis, opinions, and conclusions were developed, and this report was prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 16. The appraised value opinion assumes all leases (if any) are current and paid in full as of the effective date of the appraisal. 17. Excel grids and tables may have slight deviations due to rounding, which may have a nominal impact on value. 18. The appraised value opinion assumes all formulas used in the Excel grids throughout the report are accurate. 19. Unless noted, value assumes no apparent adverse site, building or zoning issues or conditions. 20. Site and building sizes are based on public record, data services, client and/or appraiser measurement at the time of appraisal and are considered reliable, but not guaranteed.Actual sizes herein could vary if made by an engineer/surveyor/contractor. 21. Because market and property conditions may change rapidly, the appraised value set forth in this appraisal should not be relied on after thirty days from the date of the report. 22. If any of the above if found to be different, value could change. Page 62 Nagell Appraisal Incorporated 1952.544.8966 CERTIFICATION I certify that, to the best of my knowledge and belief: 1) The statements of fact contained in this report are true and correct. 2) The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analysis, opinions, and conclusions. 3) 1 have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. 4) 1 have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5) My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6) My compensation for completing this assignment is not contingent upon the development or reporting of predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7) My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8) The reported analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the requirements of the Appraisal Institute's Code of Professional Ethics and Standards of Professional Appraisal Practice, which includes the Uniform Standards of Appraisal Practice. 9) Erin Waytas&William R.Waytas have not made a person inspection of the property. 10) No one provided significant professional assistance to the person signing this report. 11) In accordance with the competency provision USPAP, I have verified that my knowledge, experience and education are sufficient to allow me to competently complete this appraisal. See attached qualifications. 12) As of the date of this report, William R. Waytas and Erin Waytas have completed the requirements of the continuing education program of the appraisal institute. 13) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representative. 14) We have provided services as an appraiser, regarding the subject property within the 3 year period immediately preceding acceptance to this assignment. Erin Waytas, MAI William R. Waytas Certified General MN 40368620 Certified General MN 4000813 Date:see report Date: see report Nagell Appraisal Incorporated 1 952.544.8966 Page 63 QUALIFICATIONS Appraisal Experience Presently and since 2008, Erin Waytas, MAI has been employed as an employee of Nagell Appraisal Incorporated, an independent appraisal firm (12 employees) who annually prepares 1,500 +/- appraisal reports of all types. She is currently a full-time licensed certified general real estate appraiser and partner at the firm. Properties Appraised — Commercial – low and high-density multi-family, retail, office, office condos, storage units, mixed-use, industrial, restaurant, fast-food restaurant, strip-centers, gas stations (branded), convenience stores, auto- service and repair, greenhouse/landscaping properties, redevelopment land, resort, food production and distribution, churches, airplane hangars, bed & breakfasts, numerous special use properties, and subdivision analysis. — Residential–single-family residences, residential with water frontage, hobby farms, townhouses, and land — Eminent Domain – assisted with extensive partial and total acquisition appraisal services provided to numerous government agencies and private owners. — Special Assessment–assisted with numerous street improvement and utilities projects for both government and private owners — Clients – served include banks, trust companies, corporations, governmental bodies, attorneys, and private individuals; — Area of Service–most appraisal experience is in the greater Twin Cities Metro Area(typically an hour from downtown metro). Also, numerous assignments throughout Minnesota and Wisconsin. Testimony -- District Court, has been given Professional Membership,Associations&Affiliations License: Certified General, MN License#40368620 Holds the MAI designation from the Appraisal Institute DNR:Approved Appraiser for Minnesota Department of Natural Resources Education -- Bemidji State University, Bemidji, MN Mathematical Education, Statistics and Middle Emphasis Summa Cum Laude Graduate(3.97 GPA) -- General & Professional Practice Courses&Seminars -- Basic Appraisal Procedures -- Basic Appraisal Principles -- 2012-2013 15-Hour National Uniform Standards of Professional Appraisal Practice -- Introduction to Legal Description -- The Sales Comparison Approach -- General Appraiser Income Approach -- Part 1 -- General Appraiser Income Approach–Part 2 -- Advanced Income Capitalization -- Real Estate Finance, Statistics, and Valuation Modeling -- Quantitative Analysis -- General Appraiser Report Writing and Case Studies -- Advanced Market Analysis & Highest and Best Use -- General Appraiser Market Analysis& Highest and Best Use -- Advanced Concepts and Case Studies -- General Appraiser Sales Comparison Approach -- General Appraiser Site Valuation and Cost Approach Page 64 Nagell Appraisal Incorporated 1952.544.8966 Curriculum Vita--continued Appraisal Experience Presently and since 1985, William R. Waytas has been employed as a full time real estate appraiser. Currently a partner and President of the Nagel]Appraisal Incorporated, an independent appraisal firm (11 employees)who annually prepare 1,500 +/-appraisal reports of all types. Mr. Waytas was employed with Iver C. Johnson & Company, Ltd., Phoenix,AZ from 1985 to 1987. Properties appraised: • Commercial- low and high-density multi-family, retail, office, industrial, restaurant, church, strip- mall, fast-food, convenience stores, auto-service and repair, hotel, hotel water park, bed & breakfast, cinema, marina, numerous special use properties, and subdivision analysis. • Residential — single-family residences, hobby farms, Lakeshore, condominiums, townhouses, REO and land. • Eminent Domain — extensive partial and total acquisition appraisal services provided to numerous governmental agencies and private owners. • Special Assessment—numerous street improvement and utilities projects for both governmental and private owners. • Review—residential, commercial and land development. • Clients - served include banks, savings and loan associations, trust companies, corporations, governmental bodies, relocation companies, attorneys, REO companies, accountants and private individuals. • Area of Service-most appraisal experience is in the greater Twin Cities Metro Area (typically an hour from downtown metro). Numerous assignments throughout Minnesota. Professional Membership,Associations&Affiliations License: Certified General Real Property Appraiser, MN License#4000813. Appraisal Institute: SRA, Senior Residential Appraiser Designation, General Associate Member Employee Relocation Council: CRP Certified Relocation Professional Designation. International Right-Of-Way Association: Member HUD/FHA: On Lender Selection Roster and Review Appraiser DNR: Approved appraiser for Department of Natural Resources Testimony -- Court, deposition, commission, arbitration &administrative testimony given. Mediator -- Court appointed in Wright County. Committees -- President of Metro/Minnesota Chapter, 2002,Appraisal Institute. -- Chairman of Residential Admissions, Metro/MN Chapter,Al. -- Chairman Residential Candidate Guidance, Metro/Minnesota Chapter,Al. -- Elm Creek Watershed Commission, Medina representative 3 years. -- Medina Park Commission, 3 years. Nagell Appraisal Incorporated 1952.544.8966 Page 65 Curriculum Vitae--continued Education -- Graduate of Bemidji State University, Minnesota. B.S. degree in Bus.Ad. -- During college, summer employment in building trades (residential and commercial). -- Graduate of Cecil Lawter Real Estate School. Past Arizona Real Estate License. -- General & Professional Practice Courses&Seminars -- Course 101-Introduction to Appraising Real Property. -- Numerous Standards of Professional Practice Seminar. -- Fair Lending Seminar. -- Eminent Domain &Condemnation Appraising. -- Eminent Domain (An In-Depth Analysis) -- Property Tax Appeal -- Eminent Domain -- Business Practices and Ethics -- Scope of Work -- Construction Disturbances and Temporary Loss of Going Concern -- Uniform Standards for Federal Land Acquisitions (Yellow Book Seminar) -- Partial Interest Valuation Divided (conservation easements, historic preservation easements, life estates, subsurface rights, access easements, air rights, water rights, transferable development rights) Commercial/Industrial/Subdivision Courses &Seminars -- Capitalization Theory &Techniques -- Highest& Best Use Seminar -- General & Residential State Certification Review Seminar -- Subdivision Analysis Seminar. -- Narrative Report Writing Seminar(general) -- Advanced Income Capitalization Seminar -- Advanced Industrial Valuation -- Appraisal of Local Retail Properties -- Appraising Convenience Stores -- Analyzing Distressed Real Estate -- Evaluating Commercial Construction -- Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets Residential Courses &Seminars -- Course 102-Applied Residential Appraising -- Narrative Report Writing Seminar(residential) -- HUD Training session local office for FHA appraisals -- Familiar with HUD Handbook 4150.1 REV-1 &other material from local FHA office. -- Appraiser/Underwriter FHA Training -- Residential Property Construction and Inspection -- Numerous other continuing education seminars for state licensing &Al Speaking Engagements -- Bankers -- Auditors -- Assessors -- Relocation (Panel Discussion) Publications -- Real Estate Appraisal Practice(book): Acknowledgement -- Articles for Finance& Commerce and Minnesota Real Estate Journal Page 66 Nagell Appraisal Incorporated 1952.544.8966 ADDENDA TO APPRAISAL REPORT Nagell Appraisal Incorporated 1952.544.8966 Page 67 t # Y 4 NY- FARMINGTON DOWNTOWN REDEVELOPMENT ADOPTED BY THE CITY COUNCIL w ON APRIL 18, 2016 �a ` 1 ©© ,,ti, ACKNOWLEDGEMENTS Project Task Force Kris Akin-Downtown Building Owner Heidi Cunningham-ISD 192,Director of Community Education Ed Endres-Downtown Business Owner John Franceschelli III-Heritage Preservation Commission(HPC),Chair Nicole Gorman-Rambling River Center,Recreation Supervisor Chris Kulus-Farmington Business Association(FBA),President David McMillen-Parks and Recreation Commission(PRC),Chair Dirk Rotty-Planning Commission,Chair Barb Svoboda-Farmington Library,Manager Janie Tutewohl-Downtown Business Owner,Realtor Steve Wilson-Economic Development Authority(EDA) Megan Richards-Farmington High School,Student Representative City Staff Adam Kienberger,Community Development Director Tony Wippler,Planning Manager Project Consultants Hoisington Koegler Group Inc.(HKGI) Northland Securities Maxfield Research OFarmington Downtown Redevelopment Plan ---------------- CONTENTS CHAPTER 01 DOWNTOWN'S CURRENT CONDITIONS 4 ...................................... DowntownStudy Area..............................................................................5 Current Conditions Analysis,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,6 CurrentLand Uses.....................................................................................? 2030 Planned Land Uses............................................................................8 Current Zoning&Historic Properties............................................................. Public Property Ownership........................................................................10 Current Sidewalks&Trails..........................................................................11 Current Public Parking .............................................................................12 Issues&Opportunities Analysis,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,14 CHAPTER 02 REDEVELOPMENT PLAN & INITIATIVES „ 16 Downtown Districts..................................................................................17 Illustrative Redevelopment Plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,18 2030 Land Use Plan Map...........................................................................21 Downtown Core Redevelopment Initiatives,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,22 Downtown Edges Redevelopment Initiatives................................................29 Downtown Riverside Redevelopment Initiatives............................................30 CHAPTER 03 MARKET ANALYSIS.....................................................................32 Farmington Retail Trade Area,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,33 Population&Household Growth Trends&Estimates.......................................33 Consumer Expenditures analysis,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,36 RetailGaps Analysis.................................................................................37 HousingAnalysis.....................................................................................37 Market Review of Preferred Downtown Redevelopment Concept,,,,,,,,,,,,,,,,,,,,,,39 CHAPTER 04 IMPLEMENTATION......................................................................42 Keys to Implementation............................................................................42 Roles&Responsibilities............................................................................43 Getting Started—Downtown Action Plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 45 LandUse Controls................................................................................... 47 Attracting Investment..............................................................................51 Financial Tool Box 52 Usingthe HRA Act...................................................................................59 Table of Contents FIGURES & TABLES Figure 1: Project Study Area.................................................................5 Figure 2: Existing Land Use..................................................................7 Figure 3: 2030 Planned Land Use..........................................................8 Figure 4: Existing Zoning&Historic Properties,,,,,,,,,, 9 Figure 5: Public Property Ownership.....................................................10 Figure 6: Existing Downtown Pedestrian&Bike Network...........................11 Figure 7: Existing Downtown Public Parking...........................................12 Figure 8: Issues&Opportunities...........................................................13 Figure 9: Downtown Districts Concept...................................................17 Figure 10: Illustrative Downtown Redevelopment Plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,18 Figure 11: Illustrative Downtown Redevelopment Plan By District.................19 Figure 12: Recommended Changes to 2030 Land Use Plan Map,,,,,,,,,,,,,,,,,,21 Figure 13: Rambling River Center Plaza Concepts,..,.. ,25 Figure 14: Bike and Pedestrian Network Plan........................................... 27 Figure 15: Public Parking Plan...............................................................28 Figure 16: Farmington Retail Trade Area,,,,,,,,,,,,,,,,,,, 34 Figure 17: Farmington Drive Times........................................................34 Table 1: 2015 Household Expenditures by Selected Product Type..............35 Table 2: 2015 Retail Demand Potential&Leakage..................................38 © Farmington Downtown Redevelopment Plan CHAPTER 01 : DOWNTOWN " S CURRENT CONDITIONS ...MMMW��_ � d Downtown Farmington is at a crossroads as the city of Farmington continues its rapid growth and evolution as a community. For much of its history, the area viewed as downtown today was a freestanding rural downtown that served as the community's commercial, civic,and cultural center.As the Twin Cities metro area has grown and expanded its suburbs outward to Farmington,downtown Farmington's context has changed dramatically. Downtown's historic role as the most central, convenient commercial and civic destination for residents is now confronting major competition from new commercial areas emerging within Farmington and neighboring communities. With a growing portion of Farmington residents living north of downtown,and drawn toward destinations nearer to them or closer in to the metro area, downtown is increasingly viewed as being at the edge, less convenient, and irrelevant to the overall community. The purpose of the Downtown Redevelopment Plan is to analyze downtown's current and future challenges and provide a shared vision for downtown that guides reinvestment efforts by both the private and public sectors. 4 Figure 1: Project Study Area tr i y P M G Win' i ` $ J y, i i_ 7I , 1 i t i � 1 I !l 1 y I I i l 1 1 z• 7. i r .: a .y • h > j rt n Legentl ago n. ------------- FlmagaN DO D.( 0.12 0.18 02 DOWNTOWN STUDY AREA Downtown's traditional commercial district,approximately 3 blocks in length,is located south of Elm Street/Highway 50 and east of the rail line.However,the study area for the downtown redevelopment plan encompasses approximately 20 blocks,including blocks north of Elm Street/Highway 50 and west of the rail line.The downtown study area is bounded by the Vermillion River(north), 1 st Street(west),Walnut Street(south),and 5th Street(east),as shown in the above aerial map.It should be noted that the study area's boundaries are larger than the city's Downtown Commercial Overlay District's boundaries,which have an eastern boundary of 4th Street rather than 5th Street.Also of note,the downtown zoning districts encompass a much larger area,extending north to Main Street,west to Division Street,south to Maple Street,and east to Highway 3.These zoning districts include B-2, RT and R-D. © Farmington Downtown Redevelopment Plan CURRENT CONDITIONS ANALYSIS This chapter provides a brief overview of downtown Farmington's current conditions, issues,and opportunities.This analysis considers current land uses,planned land uses,zoning districts,historic properties,public property ownership,public parking, current sidewalks and trails.Maps and analysis specific to each of these elements are Q � on the pages that follow. In terms of current development character,the downtown core is lined with commercial storefronts primarily in traditional buildings along both 3rd Street and Oak Street.Unlike many historic downtowns,Farmington is fortunate to have retained downtown streets with solid building frontages.Many downtowns eventually lose some buildings and replace them with surface parking lots on their "Main Street"Surface parking lots front on the 3rd St/Highway 50 intersection,which is the primary entry or gateway into downtown,and the intersection of 3rd St/Spruce St.Changing the development character of the 3rd St/Highway 50 gateway corner to reflect the historic character of downtown is a strategic redevelopment opportunity. Downtown is also fortunate to have retained a number of unique historic buildings clustered near the intersection of 3rd St&Oak St,which are primarily commercial buildings with classic architecture.However,there is also a substantial number of vacant storefronts and buildings,particularly in the historic buildings.Empty storefronts in these iconic downtown buildings represents significant missed opportunities for downtown revitalization. Commitments to keeping downtown the civic and cultural center for the community are evident in the presence of civic assets,including the City Hall,County Library, Rambling River Center,Elementary School,Post Office,and Municipal Liquor Store. Downtown is also home to several community events,including Dew Days,Dazzle Day,Car Show,and the Farmers'Market.The city also has invested in providing quality downtown outdoor public spaces,including the Depot Way Arts Park and streetscape improvements in the downtown core.The downtown streets have features,such as wide sidewalks,decorative pavement,corner bumpouts,benches, and pedestrian lamps,that provide a foundation for creating desirable outdoor gathering spaces.A major gap is the lack of a public park,plaza,or open space in the downtown core east of the rail line. There are a limited number of vacant sites in the downtown core,as well as the downtown edges and riverside districts.These vacant sites,as well as underutilized sites,provide valuable opportunities for the city to attract,guide,and support redevelopment projects that strengthen downtown as a commercial,civic,cultural, and recreational center for the community. An active freight rail line is located on the western edge of the downtown core. Train traffic and noise is a concern for some existing downtown residents.While the city has previously explored the potential for creating a Quiet Zone in Farmington, the significant costs which would be the city's responsibility have prevented the establishment of a Quiet Zone thus far. Crossing of both the rail line and Highway 50 by pedestrians and bicyclists has been identified as a concern. Downtown's Current Conditions O Figure 2: Existing Land Use LEGEND L.__ Study Area Parcels Floodplain Willow Existing Land Use Single-Family Residential; % z _ Multi-Family Residential j _ Commercial i _ Industrial / Pine _ Park/open Space ^, - Public/Semi-Public � _Vacant i ROW 77 F1 I r _.. PE11150 L Oak r Oak a ®z R Spruce _ Walnut Walnut 1 CURRENT LAND USES The downtown study area currently contains a diverse mix of land uses,including commercial,industrial,public/semi-public,multi-family residential,and single- family residential.There are also some vacant properties scattered throughout the study area.The commercial land uses include traditional downtown retail,service, and office uses in the downtown core.Outside of the downtown core,there is a large suburban retail development and businesses not oriented to a downtown environment,such as self-storage,automotive repair,etc.The residential uses are primarily single-family with just two apartment buildings and two townhouse developments. OFarmington Downtown Redevelopment Plan Figure 3: 2030 Planned Land Use LEGEND Study Area Parcels Willow Floodplain J 2030 Planned Land Use 1^ j Low Density Low Medium Medium Density ' Pine Pine High Density Mixed-Use(Commer(fal/Residential); _ Commercial r _ Industrial - Park/Open Space - Main Public/Semi-Public ROW SO Oak Oak HEa M R Spruce Walnut '�• Walnut 2030 PLANNED LAND USES The city's 2030 Comprehensive Plan includes the following downtown strategies: Maintain and expand the downtown commercial center to the north and enhance its river front orientation. Preserve the downtown area by retaining historic buildings and features, require high design standards,provide for a diverse mix of community-oriented commercial and cultural activities,promote well-landscaped developments, be pedestrian-friendly,promote the display of public art and encourage community gatherings. The 2030 Land Use Map currently in the city's Comprehensive Plan,shown above, reflects these two strategies,including the expansion of downtown commercial north to the river and east along Highway 50.It also guides the expansion of medium and high density residential through redevelopment around the downtown core. Downtown's Current Conditions Q Figure 4: Existing Zoning&Historic Properties LEGEND I _i Study Area Parcels ®Historic Property Willow ®Eligible for Historic Designation ZONING r A-1(Agriculture) � _ B-1(Highway Business) _ B-2(Downtown Business) Pine Pine _ B-3(Heary Business) _ �•� _ B-4(Neighborhood Business) _ Business/Commercial Flex 1 — I-1(Industrial)trial) _ IP(Industrial Park) ' Main _Mixed-Use _ Mixed-use Commercial/Residential ^L _ P/OS(Park/Open Space) i R-1(Low Density Res 13.5 DU/AQ R-2(Low/Med.Density Res 5o DU/AQ . R3(Med.DensityRes 6-12 DU/AQ _ R-5(HighDensity Res l2+DU/AQ R-D(Downtown Residential) . R-T(Downtown Transitional Mixed Use) ROW(Right-ofWay) Oak Oak —SSC(Spruce Street Commercial) Water R—Iz E-� Spruce � a VIM% � � Walnut Walnut CURRENT ZONING & HISTORIC PROPERTIES The map above shows the current zoning district designations within the downtown study area.The primary zoning districts are B-2(Downtown Business), R T(Downtown Transitional Mixed Use),and B-3(Heavy Business). Historic properties,both designated and eligible for designation,are also shown on the above map. OFarmington Downtown Redevelopment Plan Figure 5: Public Property Ownership LEGEND Study Area Willow Parcels Floodplain y Ownership / - City of Farmington Dakota Co Pine Pine Dakota Co CDA Farmington FDA HRA _ ISD 192 "'IT NSP L Main so ........... OakOak Sprulce Walnut Walnut F—� TTTM F— PUBLIC PROPERTY OWNERSHIP Public/semi-public property within the downtown study area includes the City of Farmington (2nd Street,Rambling River Center,along the river), Farmington FDA/ HRA(City Hall,Depot Way Arts Park,vacant lot on Oak Street),Dakota County (library), Dakota County CDA(vacant residential lots), ISD 192(administrative building on Walnut Street),and NSP/Xcel (Oak Street property). Downtown's Current Conditions Figure 6: Existing Downtown Pedestrian&Bike Network up" i agtn I_ Ji rt r T ^I � I I �,! • _ ___ r1fT I I� h LL „K ELL I I I I i� 11-.... I ', IIIb f.1r _- wa I I _j [ V cls 7 - J H� - -H kory hi-gTrAI— .1 &rtn Sb Ik ® RA-d(-Mg Sgnaledlnte—li.n -- — _ [..� PJM Raunda7 , _.� � I� �r A CURRENT SIDEWALKS & TRAILS Most streets within the downtown study area provide sidewalks today,with the exception of 2nd Street,Spruce Street(west of rail line),and 3rd St/Pine St north near the river. Other than the pedestrian path through Depot Way Arts Park,there are no trails within the downtown study area today.The closest existing trails are located across the river from downtown(north side of the river)and west of downtown(east side of the river).There are limited access points across the river to the regional trail network. Farmington Downtown Redevelopment Plan Figure 7: Existing Downtown Public Parking i I in I I � . II L 0 _ . r )ak a _ —Angled On-Street Parking a—Parallel On-Street Parking *• a n U M Municipal Parking Lot - — - - ®County Library Parking Lot I I I I Ln CURRENT PUBLIC PARKING The map above shows where on-street and off-street public parking is currently available in the downtown study area.With the exception of Elm Street/Highway 50 and 2nd Street,downtown streets provide off-street parking spaces.Angled parking is provided in the downtown core on 3rd Street,Oak Street,and Spruce Street.Off- street public parking lots exist at the city hall,adjacent to the Rambling River Center, 2nd Street,and the library. Downtown's Current Conditions Figure 8: Issues&Opportunities � L s 1 1L'i I___ r E`d„." Kemps;; Dakota County x Lumber I une 13T LU � Ill i � MT R m6ling River -- _ � — t'�Park A IT I UUL� m jfl �S171Y . �R _s I I _ 7 F Oak ak - T -- Spruce 1 ir Mmneap alis 1 I) t 4�1l 11 I I = ! { Y J ARoute Traffic J ' I Control Center T, r — ' r -- _ _ Walnut --.... I {( wtam e�m ga T; I t _ LEGEND Walnut Q cess a�ns �' :: r ` ,11 ETT1-11 — �. .r.� _-. _ , e- aea,�;moe.elopm.�� :.3 Inslruchonal5ervrces flo I r _ I I Center/Gatewoy Academy age + P,e c a orar--- -- Ik LocuSt ✓ 's LoCust _- ♦Gaaway<orrOor ---- Small World �r— mbortr«rco�reorr --- �--- f Child Care floae co��ea ora _ + I StsMy Area C _..__ Maple ap e I - -- rooapa� ___1 I �... ._ � flarvoce�spaa Westview ! .. ,LLL.) ce:pp�ateee aroe� Park ' _.- —� IaMmark - -- Farmington Beech Elementary School L 1 Beech —_ I DESTINATIONS —__. ._ neenei db k iosk Fonal l r O E y—. — — _-- Beech © llb�a�Y Ilrl.11(�(y �a --_.- o k«ta HicIL .._.- I - Hickory L—- = �-- Hickory - -- Y Y I �I OAVl—c znoP 0 -- t revue rYstropFE 1 flesiauranUBar � � _ .� fles�auranVBar A - -- 1- r 7 y GrwerystareN —ly ., [-T .r kI ��_. - r<� 1 C ® Farmington Downtown Redevelopment Plan ISSUES & OPPORTUNITIES ANALYSIS These downtown issues and opportunities were identified by the project consultants working with the Project Task Force and city staff early in the project, so that they could provide guidance for the exploration and creation of downtown redevelopment concepts.Figure 8 provides a visualization of the issues& opportunities analysis. Issues Vacant commercial buildings/storefronts Vacant sites-Elm St&Hwy 50,Oak&2nd St Current restaurants&bars mix doesn't attract families Casual gathering places are limited,e.g.bakery seating,outdoor seating,no coffee shop,etc. Rail line impacts include frequent train traffic,train noise,and limited number of street and trail connections that can cross the rail line River also limits street and trail connections into downtown Lack of public green space in downtown core Buildings on Highway 50 don't reflect character of historic downtown Downtown is off the beaten path for residents north of downtown,not convenient Not enough unique shops to be a destination for boutique shoppers Not enough destinations to attract residents on a regular basis Identity and awareness of downtown is low within the community Opportunities Reuse of historic commercial buildings and other older buildings on 3rd Street and Oak Street Redevelop vacant and underutilized sites Add park or plaza in downtown core Add connections from downtown to the regional trail system and river Add a riverwalk on south side of river Create a stronger downtown entry from Hwy 50 Improve character of streets,e.g.2nd St,Hwy 50 Add new housing options Create a stronger downtown identity Downtown's Current Conditions Precedents&Inspiration 6�y,A- Strif.-et, Looking lX'esi Toward Milwaukee Depot, 1 NA W# OACV17- 777 t } t r 1 ♦, .. � i 1 1� .11F74nw1�t• S++ r j„,�y,...� ��` ',e�l w 1 1 1 „ � I �• � `�+r.— �"-"C1' � � I �'«R^ _ r 'fit �.�j S _�.. .. . l.r Historic photos of downtown Farmington buildings,streets,and views,including many buildings that still grace downtown today 0 Farmington Downtown Redevelopment Plan I CHAPTER 02 : REDEVELOPMENT PLAN & INITIATIVES The Farmington Downtown Redevelopment Plan is intended to provide a shared vision for downtown that guides reinvestment efforts by both the private and public sectors, including key redevelopment opportunities. The vision for downtown has the following guiding principles as its foundation: Preserve and enhance downtown's unique historic character to attract people to gather,visit,shop,work,and live downtown • Reinvigorate downtown as the community's commercial,cultural,and recreational center • Retain and strengthen civic destinations and events already located in downtown • Enhance downtown's walking and biking environment,including connections to the vermillion River,regional trails,parks,and natural areas • Improve downtown's identity and visibility as a desirable and convenient destination for residents as well as visitors from surrounding communities • Focus on redevelopment opportunities in the downtown core first This chapter lays out the community's preferred downtown redevelopment plan,including an illustrative development plan, land use plan,pedestrian and bike circulation plan,parking plan, and public space concepts. Redevelopment initiatives are identified for each of the downtown districts:downtown core,downtown edges, and downtown riverside. 16 Figure 9: Downtown Districts Concept - r a DOWNTOWN DISTRICTS The study area for the downtown redevelopment plan encompasses approximately 20 blocks,including blocks west of the rail line and north of Elm Street/Highway 50.Defining a downtown area can be challenging and often times there are multiple versions of downtown geographic areas within a community.Farmington's current zoning map actually defines an even larger downtown area based on the current extent of the downtown zoning districts:B-2(Downtown Business), R T(Downtown Transitional Mixed Use),and R-D(Downtown Residential).Since the downtown study area is fairly large,diverse in its development character,and includes two major connectivity challenges(Highway 50 and the rail line),this plan establishes five(5)downtown districts as shown above.These downtown districts each have somewhat unique development character and challenges for pursuing the plan's preferred redevelopment vision.The downtown redevelopment plan uses the downtown districts for identification of unique redevelopment initiatives, connectivity improvements,and redevelopment phasing. r� Farmington Downtown Redevelopment Plan Figure 10: Illustrative Downtown Redevelopment Plan 1 � / r Will 0V VERMtL R i o l - -�, R R R R R ---- } _J G0 TF — �- R ENVELOPMENT SMTEG IES T A Refurhishcurentvacant histOnt&odr -----�- commercial buildings a t R Retain&support improvementsrodvic/ municipal destNanDirsindowntown C. Redevelop vacant&undeninlized sites D. Add&inpmxoutdDorpubicspacein F K the downtown care for events&informal I I gathering places -1 M _7 - f 1 E Improve pedestrian envirornent E Add key downtown core bice trail facilities&connections to the river and regional trail network G. Create complete downtown trAail network E` U 1 i H. Add oudoor places for seating& N gathering along 3rd St&Oak St / p B I. improve Highway 50crDsingskx G C A Cott G pedestrians and bicyclists U H H, ► a J. Optimize public parking on-street& - �-- off-street 4 C B C K. Strength downtown entry iderrotyand � ng E E � ) I I L Redevelop sites to provide new housing - optionsinFarmington [ M.Improve design ofexisting commercial sites on Rwy So � H. Expand Rambling River Park L f R 0 Create anivefwa& P Add apedestdanbnidge 0 RisensideNrest -, R. RixrsdeNath E �t __ ) p 6 : ( DETACHED HOUSING -_I _.__ E ---..-.._ LL__ -1inif ATTA(BEDHOUSING L L ■ APARTMENTS ■ YIAEDUSE • _ --- _-_-_-- I(oNlu(lu.Il51lFNTW) COMMERCIAL civic ■ PARK OR OPEN SPACE +' HISTORIC BUILDINGS -- 111III PROPOSED RIVE RWALK �— --� lnstr nciico;tn! EXISTINGTRAIL ._. PROPOSED TRAIL NETWORK __ RARCONNECTION CORE KEY i _ - -- N MID-BLOCK PEDESTRIANWAYOR V1 �` D ) L USI NEW SIDEWALK e- .._-__.._.� CV ' _—„—___. 7-77-77F Illustrative plan shows keys redevelopment and reinvestmen t loco tion opportunities,including redevelopment initiatives. Redevelopment Plan & Initiatives Figure 11: Illustrative Downtown Redevelopment Plan By District DOWNTOWN CORE �� � ••• — C M liw I— r _ K . r i D B QAE - ■��■ ask f E I E s J A J Jp B Y J Farmington Downtown Redevelopment Plan - '' DOWNY OWN RIVERSIDE VE am, ter ' �f .._� R R R R R s `AL II REDEVELOPMENT STRATEGIES I W I I I I 1 A. Refurbish current vacant historic&other DOWNTOWN WEST EDGE DOWNTOWN EAST EDGE commercial buildings _ B. Retain&support improvements to civic/ r _ - municipal destinations in downtown ti C Redevelop vacant&underutilizedsites - D. Add&improve outdoor public space in the M downtown core for events&informal gathering _ Places E. Improve pedestrian environment F Add key downtown core bike trail facilities& t l connections to the river andionaltrailnetwork reg G. Create complete downtown trail network J 1 H. Add outdoor places for seating&gathering along 3rd St.&Oak St. °'` 17 I. Improve Highway 50 crossings for pedestrians and bicyclists J. Optimize public parking on-street&off-street K. Strengthen downtown entry identity and i wayhnding L. Redevelop sites to provide new housing options in Farmington M. Improvedesign ofexisting commercial sites on ; ij III Hwy 50T N. Expand Rambling River Park i 0. Create a riverwalk 1 P Add a pedestrian bridge Q. Riverside West R. Riverside North DETACHEDHOUSING ), ATTACHEDHOUSING I '�'�' i j�J('j� )•" APARTMENTS . MIXED USE (COMMERCIAL.RESIDENTIAL) c COMMERCIAL CIVIC PARK OR OPEN SPACE . HISTORIC BUILDINGS (INCLUDING ELIGIBLE) ._ ., •1' j, PROPOSED RIVERWALK EXISTING TRAIL i r_ PROPOSED TRAIL NETWORK NMIPROPOSED DOWNTOWN CORE KEY TRAIL CONNECTION j MID-BLOCK PEDESTRIAN WAY OR NEW SIDEWALK '.� ) " ,-,L#luL Redevelopment Plan & Initiatives 0 Figure 12: Recommended Changes to 2030 Land Use Plan Map LEGEND L.—.—.j Study Area -- Linden Parcels Floodplain 2030 Planned Land Use Low Density - Low Medium —Medium Density d►_ —High Density r�� 11 •`.�..�.�.+ WIIIOW —Mined-Use(Commerdal/Residentiap •� / I _Commercial —Industrial I _Park/Open Space —Public/Semi-Public ROW ' ®Proposed Land Use Cl }.� pine Pine H L rT r Main t 50 P;m t ai - Oak Oak Q ' Spruce i EM Walnut �'— Walnut =14 r� N M a Locust Locust F-=�P-- F-:=I R F-:--] The land use plan map above shows recommended in the City's 2030 Ce Redevelopment Plan's illustrative plan. 0 Farmington Downtown Redevelopment Plan DOWNTOWN CORE REDEVELOPMENT Precedents&Inspiration 4 INITIATIVES The downtown core area is centered around the blocks along 3rd Street from the t# Highway 50 intersection south to the Spruce Street intersection.This six-block area is fortunate to already have an authentic"small town"and"main street"feel.There are some significant existing assets to build upon,including streets lined with storefronts,attractive historic buildings,wide sidewalks with decorative pavers, trees,benches,lampposts,and corner plazas.In addition to the historic buildings, there are views of downtown's rail and agricultural heritage on the west edge of the downtown core. Active storefronts in unique historic buildings will Redevelopment in the downtown core is focused on retaining,reinvesting,and reinvigorate downtown reinvigorating underutilized buildings,sites,and outdoor public spaces,including the following redevelopment initiatives: A. Refurbish vacant historic buildings and other commercial buildings » Exteriors and interiors,some buildings with restored exteriors are in need of significant interior improvements to be attractive to potential tenants » Downtown's low rental rates for commercial space create a financing — gap for building improvements,so public or non-profit involvement in funding could be critical to jumpstart this initiative B. Proactively support the retention of and improvements to current civic/municipal destinations and expand events in downtown ` » Current civic/municipal destinations include the city hall, library,post office,and liquor store » The municipal liquor store should consider locations in downtown, including existing buildings and a potential new building on a redevelopment site » Current and potential downtown events include Farmers'Market, Dew Days,Car Show,and Dazzle Day,which are important for attracting people to downtown and also serve as a cost-effective form of downtown marketing C. Redevelop vacant and under-utilized sites for new business and possibly housing » Southwest corner of Highway 50&3rd Street as a critical downtown gateway development opportunity » North side of Highway 50 between 3rd and 4th Streets Precedent downtown buildings showing potential new » Sites near0akand 2nd Street intersection building types that could fit into Formington'shistoric commercial district Redevelopment Plan & Initiatives Precedents&Inspiration i j w t ;.L..r •y'. Model of the historic Farmington railroad depot courtesy of the Farmington Model Railroad Club that could T� serve as inspiration for a future open-air farmers'market pavilion D. Improve and add outdoor public space for informal gathering places and events •:�•.,;�,.:��"' » Refurbish Depot Way Arts Park .+. » Create Rambling River Center Plaza (see Figure 13) » Create 2nd Street farmers'market pavilion and open space(see photos of farmers'market to the left and depot model above) » Create library corner plaza E. Improve pedestrian environment » Add sidewalk to 2nd Street » Improve and extend existing mid-block pedestrian pathways F. Add key downtown core bike trail facilities and connections to the river and regional trail network (see Figure 14) » Fill trail gap from downtown west to Rambling River Park trail via Spruce Street » Fill trail gap from downtown north to Kuchera's Entrance via 3rd Street, Pine Street,and 4th Street » Add trail hub facilities in downtown,e.g. bike racks, map,directional signs, restroom,water G. Create complete downtown trail network (see Figure 14) j » Add trails connecting into downtown on Oak St, Main Street,3rd Street, 1 st Street,along rail line,etc. Precedent outdoor plazas and farmers'marketspaces H. Add outdoor places for seating and gathering along 3rd showing potential new types of outdoor public spaces for downtown 0 Farmington Downtown Redevelopment Plan Precedents&Inspiration Il..y.•..-. ytt y" �k. v A! Aker Ca ,41 Precedent downtown gateway features Street and Oak Street » Consider adding benches or seatwalls in corner plazas » Promote temporary outdoor seating areas for restaurants, bakery,etc., ► " ,. ._.; ; $` including on-street parking I. Improve Highway 50 crossings for pedestrians and bicyclists » Add visible crosswalk pavement markings » Add pedestrian-activated signals J. Optimize public parking on-street and off-street » Consider increasing on-street parking by converting some parallel parking to angled on 4th Street and Spruce Street(see Figure 15) Precedent outdoor public seating and gathering spaces K. Strengthen downtown identity and wayfinding » Add downtown gateway signage on Highways 50 and 3 » Add wayfinding signage,e.g. bike trails,parking oowNrowN HIGH SCHOOL , S.BUSINESS PARK ► � _ 4USEuV DAIRY SERINE VISITOR CENTER Precedent wayfinding signage Redevelopment Plan & Initiatives Figure 13: Rambling River Center Plaza Concepts PLAZA CONCEPT 1 e'dsc�ppin9Jl ,. 1 J r� Event/Ezhibition Tents �. IWW Temporary/Permanent s Christmas Tree .,* Relocated Bell PLAZA CONCEPT 2 � Fountaimt �xan ;g i g n V nr EV-ht/ERhibitiOnTents' i ..Y. Relocated Bell Temporary/Permanent Christmas Tree ® Farmington Downtown Redevelopment Plan PLAZA CONCEPT 3 ,; Lands A in Temporary /Permanent' 'fin ChristmasTree ' tr- - s ii Event/Exhibition Tents, Relocated Bell: PLAZA CONCEPT 4 Landsciaping Jim Eve nt/Exhibition Tenth Temporary/Permanent -. Christmas Tree Relocated Bell x .. . Redevelopment Plan & Initiatives Figure 14: Bike and Pedestrian Network Plan i I : T i _ N � '�T ( .}ci TL_ 1 ,11T .../ I-F I lal I I I , IT�I I f —_� l I I 23t1i 208th d . - w I T ♦`` � !-_i ` ' T- Irl Willow T- f ; u C Ti Pine _ - —_ - -- .13tH 1 ( L. i _77 � � I f r IT , IIT ! I J I I rr ® 1(( — � Irllili� �'_ L — 1____ � L Spruce Walnut walnut _T T T- ,.T - 1 _ J11 [ T i -- Locust ' I Lbcusi N I— I - I _ _ I . ---- L —: Maple — i _ �� '-i]•r �TMepie�-I r- _ I � 11-7 Beech T� Beech - L T I T � 'Ti T w T _� — L Beech �' - ' r Proposean Cros sing+Mid-block r ITI� Pedestrian Crossing —. Proposed Trail Proposed Regional Trail Connection ( Tom— Hickory - _Hicko --- T` - -1 TTS L , —L. •-• Existing Trail s — u Existing Sidewalk T �, ® Railroad Crossing 1 0 Signaled Intersection 74 — Ll Project Boundary Pedestrian&bike circulation plan shows key opportunities for improving downtown's walking and biking connections. 0 Farmington Downtown Redevelopment Plan Figure 15: Public Parking Plan ....._t.. ___-- L____:_-_�� _.. - I i in i 0 Dlak ak II- 1. _LLQ Angled On-Street Parking Parallel On-Street Parking a Potential Conversion to Angled Parking a n u ® Municipal Parking Lot93 — 1 County Library Parking Lot i I I i s � I I i i I Vv1 Parking plan shows existing on-street and off-street parking areas,and opportunities for increasing on-street parking. Redevelopment Plan & Initiatives Precedents&Inspiration DOWNTOWN EDGES REDEVELOPMENT INITIATIVES The downtown edge areas are located east,south,and west of the downtown core area.The east and south edges are primarily single-family residential today. However,the west edge is a mix of single-family residential and outdoor/indoor storage,and manufacturing businesses.There arejust three retail uses within the two edge areas,which are all on Highway 50,and one office use on 4th/Oak St. ,. Redevelopment in the downtown edge areas is focused on two redevelopment initiatives: L. Redevelop sites to provide new housing options in Farmington p� » Redevelop area west of rail line,north and south of Spruce Street, ' with apartments or a mix of apartments and rowhouses Redevelop half block on Walnut Street, between 3rd and 4th Street, with townhouses similar to the north half of the same block M. Improve design of existing commercial sites on Hwy 50 Add landscaping buffers,including trees,between the sidewalk and surface parking areas 11 aa, Precedent housing development types for the Downtown Edge districts Example of improving street edge between surface parking area and sidewalk 0 Farmington Downtown Redevelopment Plan DOWNTOWN RIVERSIDE REDEVELOPMENT Precedents&Inspiration INITIATIVES The downtown riverside areas are located between the Vermillion River and downtown,north of Highway 50.A key opportunity exists to connect downtown and the river with a riverwalk,trail connections,park expansion,and site redevelopment. Redevelopment in the downtown riverside areas is focused on the following redevelopment initiatives: N. Expand Rambling River Park » To better link downtown and the river's natural area,expand the park south of the river and east of the rail line,and add a new park entry at 3rd &Pine 0. Create a riverwalk on the south side of the river and L 1; connect to the regional trail network (see North Creek I B r Greenway regional trail plan on following page) While there is a trail on the north side of the river,a new trail or riverwalk on the south side of the river could be an added amenity for downtown residents and workers,as well as an added destination r to attract visitors to downtown P. Add a pedestrian/bike bridge over the rail line » The rail line is a major barrier for walking and biking in downtown and near the river,so adding this pedestrian/bike bridge is an important connection for creating a pedestrian/bike trail network in downtown Q. Redevelop Riverside West ,FYI » Redevelop the commercial site furthest from Hwy 50 with residential building(s) next to the river's open space long-term » Redesign the current commercial parking lot driveways as streets to transition the area from a suburban retail site to a place for shopping and living ILI lit R. Redevelop Riverside NorthIA'- � ' » Redevelop sites along Pine Street with downtown townhouse and apartment living options » Connect Pine Street between 4th &5th Streets » Preserve truck route for the Kemps facility Precedent housing development types for the Riverside districts Redevelopment Plan & Initiatives 0 FOCUS-NORTH CREEK REG/ONALGREENWAY r' a ► Proposed NorthCreek Riverview" Greenway regional' 1trail NALI" Elementary 4 � School l t Dodger Qi{ Middle � ���ion River t , School. Pit ` F'r . :. School ( all,elds Q Proposed F. ouer Rambling s waySnding Vermillion River Park Trail connection Riuer � 3 ♦s 1 N' Proposed grade W i;� separated crossing � 4 Existing grade separated crossing W Gateway "R Existing regional trail Q landmark ; Proposed regional trail Z Existing local trail a Pt- t_ Proposed local trail a ELM STREET U Connection � Greenway corridor to downtown Depot ETo L.akevalle Farmm=tonWay _ i t Arts Schmitz Makin L �« «''- Y = Park ' ;�200'Feet ` p Arena ! The concept above shows Dakota County's current plan for the future North Creek Regional Greenway segment nearest to downtown Farmington. It identifies a proposed local trail connection between the regional trail and downtown that crosses Highway 50 at 1 st Street,which is west of the rail line,then uses 1 st Street and Oak Street to connect to downtown where the rail line crosses Oak Street.The Downtown Redevelopment Plan recommendation is to work with Dakota County on ways for the North Creek Regional Greenway to better connect into downtown Farmington. For example, bringing the regional trail to the south side of the Vermillion River would be preferable for more directly linking downtown to the regional trail.Additionally,safer connections to downtown than the uncontrolled intersection at Highway 50/1 st Street would be Spruce Street west from downtown to the Rambling River Trail (next to the Schmitz Maki hockey arena) or the traffic controlled intersection at Highway 50/3rd Street. ® Farmington Downtown Redevelopment Plan i►' CHAPTER 03 : MARKET ANALYSIS To ensure that the Downtown Redevelopment Plan's vision, concepts, and initiatives are based in reality, the process of developing this plan includes a high-level market analysis. The limited scope of this market analysis includes the following elements: Retail trade area identification Consumer expenditures analysis Retail gap analysis Housing market analysis These elements are addressed at a general level for the downtown Farmington trade area and specifically for the downtown redevelopmen concepts that were explored during this project. The market analysis was integral to identifying the preferred downtown redevelopment concept, redevelopment site opportunities, priority initiatives,and phasing. 32 FARMINGTON RETAIL TRADE AREA Figure 16 outlines the retail draw area from which the majority of the demand for goods and services in downtown Farmington will be generated.Lakeville is adjacent to Farmington on the west and has continued to increase its level of retail development in support of the large number of households that have been attracted to the community.As most of the retail development in Lakeville is newer, new retail in Farmington is more likely to draw from households in Farmington rather than neighboring suburban communities like Lakeville,Apple Valley and Rosemount.Downtown Farmington is also likely to draw from households in adjacent outlying areas to the east and south.These communities do not have a substantial retail base and are more likely to rely on commercial development in Farmington to support and enhance their ability to obtain retail goods and services within a reasonable drive time of the city. Figure 17 shows retail drive times from downtown Farmington using 5, 10 and 15 minute drive times. The majority of retail customers most likely to be drawn to Farmington are within a 10-minute drive time. POPULATION & HOUSEHOLD GROWTH TRENDS & ESTIMATES The most recent population and household estimates as published by the Metropolitan Council show Farmington is estimated to have 22,386 people and 7,557 households. Average annual growth rates in Farmington over the past four years are about 2%for population and 2%for households,respectively. We anticipate that Farmington has the potential to exceed the Metropolitan Council's 2020 projections for population and households,most likely by 2019. ® Farmington Downtown Redevelopment Plan Figure 16: Farmington Retail Trade Area - `•.,r1 s - ire rc a r � -- ' ' a a Sava a Burnsville g 1)2nd S i E a APpfd c ,v _ Prescott o Nasttngs Valle Rosemount +ast s,e 4M." --CR 1:E t.R:i 0 I e � Ok{� k 9 $� h J: ?, I;ei strv„ oy N - p CR=2t S ,,R-d0 .y. Ivana,E - Vermtll me, I : g i 21, Lakeville is m t Far Ioi) Y c �•' _ 21?h StE lucwom8, C q•ro�tsm s,w B t - a q - m (i N Tine�w,,1� < _ �r'r s,e MN$0 Mfesvtlle,-= y : qg a1s New Z � u >tc Market Elko �rK Wetster Randolph t , � I = a �''' •'„ tiff-?n Cannon raq.,o Falls Figure 17: Farmington Drive Times ,t h ' e vt u FamFrtn ` (xo K ... _•.._ Farm.-gt.,, 15 t S mpton r * J6 Market Analysis Table 1: 2015 Household Expenditures by Selected Product Type Annual Expenditures TCMA Expenclit s SpendingPotential index to USA Total Average Average Farmington Twin Cities category t5000'sj Per HH Per HH IAarketArea Metro Area Goods&Services Index index Apparel&Services 31,752 2,904 2,843 125 121 Entertainment and Recreation 45,704 4,180 3,935 126 122 Nonprescription Drugs 1,673 153 146 118 113 Prescription Drugs 6,364 582 557 117 112 Eye Glasses&Contact Lenses 1,225 112 105 125 117 Personal Care Products 6,396 585 558 125 119 Chi Id Care 6,943 635 571 142 127 School freaks&Supplies 2,460 225 221 125 122 Smakin.wProd uct 5,216 477 513 102 110 Com puter H a rid wa re 3,007 275 265 127 122 Computer Scftware 284 26 26 130 126 Pas 16,521 691 646 121 114 Food 7771 Food aHome 68,851 6,297 1C,123 121 118 Food A.vayfrom Hcme 45,475 4,159 3,976 127 121 A cohc I i c Be.erages 7,643 699 691 126 124 Misc.Beverage=_at Home 6,462 591 583 118 117 Home ® hdex Home Mortgage PaymeMlRent 146,319 13,382 11,355 143 121 lvfaintenance9.Remc.delingServices 24,84 2,253 1°8.8 134 118 Mainten ance&R.emcdelin-Matar ials 4,166 381 32E 127 1^9 Utilities 66,960 6,124 5,8.83 121 116 Household FurnishingsEquipmeM&OpEratlom Househol d Texti I es 1,345 123 119 125 121 Furniture 7,384 615 630 131 122 Fl cor Ccveri ngs 339 31 34 126 120 r.lajn.rA:plianta 3,879 352 316 131 117 Sma I I.Ap pl i a n c es Sol 55 54 121 118 Hc•useoares 964 90 87 125 120 Luggage 131 12 11 132 124 Telephone&.AcceRcries 656 6o 58 120 116 Lawn&Garden 6,943 635 498 126 115 Movingptcrag&�FreightExpress 962 88 93 119 126 HcusekeepingSupplies 9,589 877 842 121 117 Frorrmi&kisurarKe ® kdex Investnwnts 34,234 3,131 3,072 114 112 VehideLoans 61,165 5,594 5,066 132 120 Owners&Renters Insurance 7,137 E50 576 129 114 "Aah i cl e I nsur ante 16,521 1,511 1,442 125 119 Lifer Other Insurance 35,557 3,252 535 130 116 Health Insurance 6,396 585 3,CGS 123 116 Traral ' ''an Index tars andTrucks(Net 0utlay) 56,332 5,152 4,741 127 117 Gasoli ne and Mawr Oil 47,158 313 4,071 133 116 +ehicleMaintan ance,Repair 15,40E 1,-C? 1,333 126 119 Travel Index AirlirneFares E,3E5 E37 E = 133 126 Ledging 6,CC. 644 SSC 133 122 `dehideRartaI 525 48 43 142 129 Foc J?-LTi n k E,681 611 565 131 121 Sun many Goods&Services 127,545 10,845 10,346 Food 128,431 11,746 15,373 Home 242,079 22,140 19,552 Household 32,783 2,998 2,738 Financial and Insurance 163,981 14,723 13,756 Transportation 118,89E 10,874 10,145 Travel 20,-,,5 1,900 1,762 Total 831„487 75,226 73,672 Note: The Span d i ng Fct enti a 1 I ndex i s based on h ou s ehcI ds a nd rep resents th e a mou nt spent for a product or service relati veto the national benchmark index d 100. Sources:ESRl Inc:Maxfield Research and Consults n&,LLC ® Farmington Downtown Redevelopment Plan CONSUMER EXPENDITURES ANALYSIS Table 1 presents information on retail expenditures for households located in the Farmington Retail Trade Area. The data was compiled by ESRI Inc.;a national demographics forecasting firm and is derived from national data on household expenditures through the Consumer Survey of Expenditures. The report uses a benchmark index of 100. Proportions above 100 indicate that households in the retail draw area spend proportionally more on items or services in that category than the average US household. Proportions below 100 indicate the opposite--that households spend less than the average US households on those items or services. The table shows that households in the Farmington Retail Trade Area spend more than the average US household in nearly every expenditure category shown on the table. Categories that exhibit the highest proportions above the 100 benchmark are: Child care Home mortgage payments Computer software Vehicle loans Life insurance Major appliances Vehicle rental-travel Airline fares Lodging Other retail goods that are still above the 100 benchmark but not as high as the above categories include: Apparel and services Food away from home Alcoholic beverages Computer hardware Entertainment and recreation Personal care products and services Eye glasses and contact ienses Lawn and garden Housewares and small appliances Market Analysis RETAIL GAPS ANALYSIS In considering businesses that might take advantage of the high proportion of consumer expenditures as identified in these categories,Maxfield Research also completed a retail gaps analysis. The retail gaps analysis identifies the amount of retail sales within the Retail Trade Area,the number of business establishments,and categories where existing or new businesses would be able to capture a portion of sales from the Retail Trade Area that are"leaking"out to other retail areas. This information is presented in Table 2. Table 2 shows that the Farmington Retail Trade Area is currently losing nearly 75 percent of possible retail expenditures to other locations outside of the Retail Trade Area. Farmington is situated on the edge of a more rural area with limited options available in small towns and surrounding townships for the development of commercial retail goods and services. A portion of those households would look to Farmington to be able to satisfy some of that demand.Categories with the highest proportions of leakage outside of the Retail Trade Area are: Stores associated with items specifically for the home such as: - Home furnishings - Furniture - Appliances - Building materials - Lawn and garden supplies Other categories include: - General merchandise stores - Health and beauty stores - Apparel and accessories stores - Giftstores - Limited and full service eating places(coffee shop,small family-friendly restaurant, outdoor seating for bakery) Not all of these categories have store formats that would"fit"or be acceptable in a downtown location,but some do. Gift shops,drugstores,hair salon,kids salon, restaurants(casual and sit-down)are types of businesses that would be able to capture some of the retail demand that is currently leaving the area. HOUSING ANALYSIS The market analysis included a review of two preliminary alternative redevelopment concepts in downtown Farmington.The first concept showed housing in close proximity to the downtown on two to three sites.Housing in close proximity to the downtown will encourage households to patronize establishments in the downtown if they are desirable and attractive as it will be easy to walk or bike to them rather than having to get into a car and drive a distance.A modest amount of housing above downtown retail shops will provide a more energized environment. Young adults,middle-age singles,couples without children,single-parents,and empty-nesters are household types that are often drawn to an urban downtown district. A variety of housing products,medium to high density,could be offered to attract multiple market segments. Farmington Downtown Redevelopment Plan Table 2: 2015 Retail Demand Potential&Leakage Demand Supply Retail Cop Surplus/LeakaRe Nu-r=e- .f indrrrryGroup(NAICSCode) (Retail Potential) [Retail Wes) (Demand-Supply) Factor Bus:resws ataI Retail Trade and Food&Drink 4 NAKS 44-45,722) $417,198,753 $51,055,545 $356,133,107 '7 = :=a otal Retail Trade NA10544-45) $373.255,341 $49,666,231 $323,W9,110 = _ Total Food&Drink(NAI CS 7221 $43,943,412 $11399,415 $32,543,397 SE.e a Motor Vehicle&Parts Dealers 4NA'CS 441} $78,077,192 $5,782,802 $72,294390 86.2 = Automobile Dealers 4NAICS 4411) $68,0131944 $3338,715 $64,675,229 90.6 Other Maw Vehicle Dealers(NAICS 44121 $5,034,298 $1,850,997 $3,183,301 46.2 = Arno Parte Accessories,and Tire Stores(NA)C44131 $5,028,950 $593,090 $4,435,EW 78.9 Furniture&HomeFw-r'sh ras Sto-es4NXCS4421 $8,280,876 $3,013,796 $5,267,050 46.6 20 Furrtirtu-e Stm-es:NA CS 44211 $4,925,627 $1,605,431 $3,320,195 50.8 MornefL-Tn:stCmGsSto-es(NAICS44221 $3,355,249 $1,408,365 $1,.946,884 40.9 -_ e_t•onics&Appliance Stores 4NAiCS 443/NAICS 4431) $9,790969 $279,059 $9,511,500 94.5 = Gs-•amu Equip.&Supp ySb-es INiAICs 4441 $13,9$5,615 $4p39959 $9945,656 55.2 -,;Mate- 2nd Supplies Lea e-s ;NA CS 4441) $11,505,041 $2,974,661 $8,530,310 5&9 10 awrandGa7de7r-_u'pMeft2ndSL4ViesStn-es{NA?CS4442 $2,480,574 $1„065,298 $1,415,276 39.9 _d&E e.a a S=-es:NA,CS 4451 $56,553,530 $6,866,675 $49,665•.!555 78.3 _ e St=,-es ;NA aS44°11 $48,515,175 $3,287,387 $45,227,178 887.3 = Spec a'tf fon-1-St=--es;NA CS 44521 $1,530,055 $270,632 51,259,423 69.9 Eee-,W M and Wqu w Sto-es:NA CS 44531 $6,508,340 $3,328,046 $3,180,25.4 32.3 He.Ith&Perzenal Care SIDres:NA CS 445,lNAICS44611 $26,377,523 $4,710,193 $21,.667,330 69.7 = �asof,neStatlors;NACS. 447,0A CS 44711 $40,093,344 $20373,472 $19,719,672 32.6 = th,n8 axc--C=t- ra A::ess les Stwes4NA1CS4491 $19,652XII, $1,914,352 $17,73.8,5£6 82-2 10 C ot}r i rug St=--es:NA Cs 44311 $15 236,491 $833,757 $14,402334 89.6 7 Shoe StoresINAI CS44821 $3387,8:62 $0 $3,3$7,1152 100.0 0 lewery,LLWGC.ar: :Cather Goods Strores4MICS4483) $1,028,565 $1,0110,595 052,0301 {2.51 3 S po-t"rs Go 31s: =__= := and Mnusi c Stores(NAI CS 4511 $91258,5.88 $1,192,847 $$055,741 77.2 lriatrLrnent S es I NAICS 451 $7,23a,523 $1,192,847 56,045,676 71.7 Bock.Period-c; ;rid Music Stams(NA1CS45121 $2,020,055 $0 $2,020,05+5 100.0 - General Merch,arndiseStores(NNAICS 4521 $67,678,538 $75,172 $67,803,356 99.8 DepartrnentStwes Excludiuu8 leased Depts.4NMCS 4521) $28,5.61,844 $75,172 $28,505,6'2 99.5 i 3t•e-General MerchiandseStwes 4NA1CS 45291 $39296,634 $0 $39255,694 100.0 _ .=c ancLsStore Retailers 4NA'•CS4531 $910811070 51,.159,056 S7,922402 77.4 = sts 4 NA!CS 45311 $457,560 $0 $45-7,560 1.00.0 0 C ft x Sr apphis,Statiorue a:er r= ft St es I NA'C5 45321 $1,914,556 $68,744 $1,845 822 93.1 Used Merchaanase5tores:NA CS 45331 $1,5.45,95$ $302,253 $1,243,705. 67.3 J C-fror Misce#IareJrs St-e Rets-a-s:NA CS 45391 55•,162,9116 $788,07i $4,374,915 733 L_ kcasmre Retailers(WAIL'S 4541 S34,225,178 $238,826 $33,985,352 96.6 4 E e:t-= :S;-= 'r8and Mani-Order tiocses 4MICS 4541) $30,358,645 $O $30.358,645 100.0 -=1 Ver: -o V;-- -e Cperatars4NAICS4542) $1,049,631 $0 $1,049A891 100.0 C' Direct Se -- b'ishenenis 4WAiCS 45431 $2,816,642 $238,826 $2,577,816 84.4 4 food Services&Drirding Places 4NAICS 7221 $43,943,412 $11,399,415 $32,50,997 58.8 29 Ful I-Se MceRestaurartesINAIC572211 $17,364,152 $4,625,009 $13,339,143 59.1 10 limited-ServieeEatin6PIacesINAdCS72221 $22,670.333 56,326,908 $16,343,625 56.4 15 Special foodServicus 4NAICS 72231 53,,.458365 $26,493 $1,431.,.872 9&4 1 Drinking Places-Alcoholic 5everages 4WCS 7224 $1,850,362 $421,005 Si,429,357 62-9 3 Note: All i6rresqurotedin2015 dollars. Supply4retail ales)estimates sales toconsuaners byestablishments,sales tobusinesses sinesses are excluded. Dernand4retail potenrial)estimates the ex;*cted2moutspent byconRlttes ata retail establiAwnmt. LeakagefSurplace factmnw2s{✓resthe relationship between supply and derandand ranges from+1004total leakage)to-1004tatal surplus).Aposifivevalue represents'lolose of retail opportunity outl i de fee trade area-A negative ver l ue represents a srrrpl us of retail sales,a norket where customers are drawn in frorn outside fie trade arca. Sources SSRI:Maxield Research and Consultirue,LIC Market Analysis 0 MARKET REVIEW OF PREFERRED DOWNTOWN REDEVELOPMENT CONCEPT The Preferred Downtown Redevelopment Concept identifies various parcels in the downtown that may be redeveloped over a period of time and provides suggested development density and use concepts for those parcels. This review comments on the Preferred Redevelopment Concept from a market perspective,identifying potential support and challenges that may arise based on the concept presented. The downtown area was divided into four subareas: Downtown Core Downtown Edges Riverside West Riverside North It is our understanding that parcels in the Downtown Core and the Downtown West Edge are those that would be considered first for redevelopment with the Downtown East Edge and Riverside North following after. Downtown Core Suggested redevelopment in the Downtown Core includes refurbishing existing vacant structures to fill them with new commercial users. Refurbishing typically provides lower cost space to small and medium size businesses that may not have the capital to invest in purchasing a building or want to initially check out a market. Refurbishing can provide updated mechanicals,exterior fa4ade improvements, and a reconfiguration of the interior space to suit a new user. The smaller building sizes allow for multiple users to occupy new space creating a greater variety of businesses and increasing the potential to draw customers to the downtown area. A potential mix could include some restaurant dining,coffee shop,and/or soft goods retailers that are looking for smaller size spaces. The average retail space for small to mid-size users is between about 1,500 and 3,000 square feet. These smaller buildings can provide that niche for the downtown. The larger parcel at the corner of 3rd St and Elm St/Highway 50 is currently proposed for mixed use with commercial at the street level and housing above. The current drawing of the building on this site does not show any off-street parking for this facility. Parking for the housing could be accommodated under the building, but is quite expensive and would most likely require some type of assistance to make that type of design economically feasible. With a number of smaller buildings in the downtown identified for redevelopment,this larger site is more likely to be attractive to a larger national retailer. However,larger national retailers will require off-street parking. Some users may also want a drive-through for their customers. Lease rates for new space in this type of use typically approach $18.00 to$20.00 per square foot. Most small businesses would have difficulty paying lease rates at this level. Providing housing(likely rentals)at this site would be attractive to prospects. The difficulty would be in filling the commercial space at a lease rate that would be Farmington Downtown Redevelopment Plan economically viable for smaller users if the space were to be subdivided into smaller segments. Visibility and signage for the commercial space would be critical. Most properties that have housing above with retail below have been built in urban districts where there is greater population density. Despite higher densities,many of these properties have also suffered because the design of the mixed-use development favors the housing and not the commercial space. The commercial space often attracts smaller businesses,has higher turnover rates,and higher average vacancy rates. The parcel at 3rd St and Elm St/Highway 50 is a key parcel in the Downtown Core and the"gateway"to the downtown. We believe that it is critical to ensure that the redevelopment of this parcel is successful to support momentum for additional redevelopment in the Downtown Core. At this time,we would not recommend incorporating housing above commercial space at this location. Other sites are available in close proximity to the Downtown Core that can support housing in more traditional formats and would increase the number of people downtown that view it as their shopping district. Two other sites in the Downtown Core have been identified for housing,4th and Elm and directly facing Elm Street between 3rd and 4th Streets. The parcel at 4th and Elm Street could possibly be considered for mixed-use development,but at a later date as other redevelopment is completed and downtown business activity has increased. Rental rates for new apartments in third-tier suburban locations are ranging from $1.50 to$1.70 per square foot,on average. In order to support new rental housing in the downtown,grants or low-interest loans would likely be needed to ensure that the apartments would be economically viable. Downtown Edges Two primary redevelopment sites are shown in the West Edge,north and south of Spruce Street. An open space buffer is shown between the proposed housing and the train tracks. As we understand,there are about ten trains per day that move through downtown Farmington and the train tracks are not a"whistle free"zone. While the open space buffer would provide green area between the proposed rental housing and the train tracks,units situated along the train tracks may be more difficult to lease if tenants are bothered by noise and vibration from the trains. Developing housing on this property is likely to require more insulation,higher quality windows and other sound attenuation practices to mitigate and reduce the noise from the train traffic. To the southeast of the Downtown Core,a parcel is shown at Walnut between 4th and 5th Streets with attached housing. These units may be either rental or ownership. Market analysis identified a potential demand for either rental apartments or ownership multifamily at a modest price point. With the greater number of redevelopment sites identified as apartments,we recommend that this property be targeted for ownership housing,either young to mid-age households or empty-nester households(single-level living). Market Analysis Riverside West Redevelopment parcels in the Riverside West district show a commercial expansion space of 5,000 square feet extending out from the current grocery store. In addition two other redevelopment buildings are shown in this area,one that is proposed to incorporate housing adjacent to a second building that would have commercial uses. There is an existing building that is situated to the east from the two proposed buildings. From the drawing it appears that most of the parking would be located north of the existing building. It is unclear how the access and/or visibility to the new commercial space would be provided. Convenient access and a high level of visibility are usually critical to most retailers. The layout of these new buildings do not appear to improve the access or visibility of the existing building and to a degree,seem not to offer the new space the appropriate level of access or visibility that most retailers would desire. It is our recommendation that this portion of the site may need to be entirely reconfigured to offer the best potential layout for new space. Riverside North Phasing of redevelopment is likely to position the Riverside North district as a later phase of redevelopment,although depending on market conditions,some parcels may redevelop in this area prior to others in some of the other districts. The sites identified for redevelopment are all near the Kemps plant on the north side of the Downtown Core and are proposed to include a multi-story building which could be general occupancy apartments or senior housing. Other parcels show attached housing which may either be rental or ownership. Again,with a significant amount of rental already suggested for other sites in and near Downtown Core,we would recommend that the lower density units be targeted as ownership versus rental. Phasing We recommend that the city initially focus on redevelopment in the Downtown Core as redevelopment incorporates commercial and residential uses. Redevelopment to the west in the Downtown Edge district could accompany redevelopment of the Downtown Core to generate additional household growth that would support new business uses contemplated for the Downtown Core area. Additional redevelopment outside of the Downtown Core should be prioritized regarding funding support that may be requested to encourage new uses. We recommend beginning with the Downtown Core,then moving to the West Edge and East Edge districts,then up to Riverside West and finally over to Riverside North. However,if private developers desire to redevelop various areas outside of the Downtown Core with no public assistance from the community,the city may want to consider the potential benefits of early redevelopment of some sites outside of the Downtown Core if the uses on those sites would complement uses in the Downtown Core. Farmington Downtown Redevelopment Plan s CHAPTER 04 : IMPLEMENTATION Without clear direction on implementation, the Plan risks remaining little more than a sheaf of papers. This chapter focuses on the keys to achieving the vision presented in this Plan. KEYS TO IMPLEMENTATION The experience of Farmington and other cities shows that several factors are important ingredients for successful redevelopment: Patience.The vision for this Plan cannot be implemented overnight.The time frame for implementing this Plan reflects its evolutionary nature;it looks forward over a period of years.Redevelopment often requires the patience to wait for the right things to happen,rather than making changes simply to be seen doing something. Commitment.Commitment to the Plan and patience go hand-in-hand. This Plan does not simply seek to attract development to downtown;it also seeks to move downtown toward a vision for the future.There is a difference. Commitment to the Plan means the willingness to actively promote public and private investments that achieve the vision,and to deter developments that do not meet the objectives of the Plan.Not all of these decisions will be easy. 42 Public-Private Partnerships.Implementation of this Plan requires a continuation of the public-private partnerships that created the Plan.Both city government and businesses must actively work to achieve the vision for downtown. Financial Reality.A large portion of the implementation chapter discusses roles and responsibilities for the city.Implementing the Plan requires the careful investment of public funds,but the private side of the financial equation must not be overlooked.New development and existing businesses will pay for part of the improvements called for in the Plan.Implementing the Plan seeks to balance the investment in Plan initiatives with the creation of a financial environment that sustains businesses. Strategic Investments.If financial support for the Plan was unlimited,the need for strategic decisions would be less important.With limited funds,though, every expenditure is crucial.It is not possible to undertake immediately all of the initiatives described in this Plan.Needs and opportunities not contemplated in the Plan may arise in the future.Every investment must be evaluated for its impact on achieving the vision for the future of downtown Farmington. The Plan provides a guide for private and public investments to revitalize downtown in a manner consistent with this Plan.The following strategies will assist the city in implementing the Plan and realizing the vision for downtown. ROLES & RESPONSIBILITIES There is a temptation to give full responsibility for implementation of the Downtown Redevelopment Plan to Farmington's city staff.Many of the powers and resources needed to undertake the strategies described in this Plan are held by the city.The success of downtown Farmington cannot be made the sole responsibility of city government.Achieving the vision for downtown requires on-going collaboration of both public and private stakeholders.This section describes the roles and responsibilities of key parties. Business and Property Owners While the city influences the physical setting,downtown largely remains a place of private activities. Individual businesses determine the types of goods and services available in downtown.Individual businesses make decisions about how they operate.Property owners decide how to maintain and improve their buildings.Each of these factors plays a role in the long-term success of downtown. City Council The City Council must be committed to implementing this Plan.Important redevelopment powers reside solely with the City Council.Among the powers that may be needed to undertake redevelopment powers in the downtown are: Approving the establishment of TIF districts. Approving the establishment of special service districts and levying service charges on properties in the district. Levying special assessments for public improvements. Farmington Downtown Redevelopment Plan Issuance of general obligation bonds to finance redevelopment and improvement projects. The City Council must be engaged in the redevelopment process and be prepared to take action as needed.Actions by the City Council can enhance the downtown in other ways.Some examples include: Keeping and adding community events to make downtown a focal point. Keeping civic institutions concentrated in downtown. Avoiding subsidizing non-downtown projects that include businesses that should be located in downtown. Providing staff capacity and resources needed to plan and undertake projects in downtown. EDA The Farmington Economic Development Authority(EDA)should play a key role in implementing the Plan.Many municipal development powers for redevelopment are given to the EDA(using the powers of a housing and redevelopment authority). Additionally,FDAs often have more time to focus on plan implementation than a City Council. Some important EDA powers include: Acquiring property. Making loans. Constructing and operating public facilities. Establishing TIF districts. The section"Using the HRA Act"at the end of this chapter explains the steps to better access statutory redevelopment powers. Downtown Partnerships Building partnerships and collaborative teams,both internally at the city and externally with stakeholder agencies,will enable the city to leverage everyone's interests and needs related to downtown.Internally,it is important that city departments work collaboratively on planning,programming,and investing in downtown improvements.For example,new trails and a plaza/park in downtown impacts the community development,parks and recreation,and municipal services departments,at a minimum.Externally,the city needs to partner with other agencies with jurisdictional authority or property ownership in downtown,such as Dakota County(library,highway,community development agency),School District, and MN Dept.of Natural Resources. Implementation w M 4 AU21 t f GETTING STARTED-DOWNTOWNAMON PLAN Implementation of the Downtown Redevelopment The use of an annual Downtown Action Plan keeps an Plan is not a single action. It is a collection of public and active and current focus on achieving the vision for private actions that occur over a period of years.Creation downtown.This Action Plan also becomes a tool for and use of a Downtown Action Plan is a valuable tool communication and collaboration between the city and forjumpstarting and maintaining progress with the other stakeholders. implementation process.Contents of an action plan The recommended elements of a Downtown Action Plan would include: for 2016/2017 include the following actions,some are Identification and prioritization ofactions and investments short-term while others are first steps toward long-term for the next year,' initiatives: Review of progress made in the past year,' 1. Design and build the key trail connections between Assignment of responsibilities for guiding these implementation strategies;and the Downtown Core and the river,along Spruce Street, Determination of budget and funding needs. 3rd St/Pine St to Kuchera's Entrance,and Highway 50, including visible crosswalk markings. 2. Add bike racks and wayfinding signage to promote downtown as a bike trail hub. Farmington Downtown Redevelopment Plan g • Sw � � T X i i f, r �* 3. Establish a city sidewalk cafe program that permits the 7. Establish downtown partnerships focused on addition of outdoor sidewalk seating and gathering retention,improvement,and marketing of existing places along downtown streets,including the use of and potential downtown destinations and events, parking spaces for seasonal outdoor patios. including farmers'market and municipal liquor store. 4. Design and build a Rambling River Center Plaza in 8. Explore city policies and strategies for proactively the open area west of the Rambling River Center and guiding successful redevelopment of the gateway fronting onto Oak Street as a multi-functional plaza for corner site at 3rd Street&Highway 50. daily informal uses as well as event uses,such as Dew 9. Establish a more visible and accessible home for Days and Dazzle Day. downtown plans,initiatives,and events,such as a 5. Establish a city grant or low-interest loan program downtown page on the city's website and a digital targeted for refurbishing of downtown historic and version of the redevelopment plan. commercial buildings,both exteriors and interiors. 10.Leverage the knowledge and passion of the project 6. Identify specific locations and create downtown task force by reconvening the group periodically to gateway identity features and directional signage. address challenges and assess progress of the plan's implementation. Implementation LAND USE CONTROLS The city manages land use with several different tools.The primary tools are the city's Comprehensive Plan and the adopted Zoning Ordinance.Existing land use controls should be reviewed and revised as necessary to ensure consistency with this Plan.This step allows development to occur that fits the Plan.These modifications will also prevent land uses that do not conform with the Downtown Redevelopment Plan. Comprehensive Plan The Plan for the revitalization of downtown should be made part of the Comprehensive Plan either by incorporation into the document or by reference. The city's 2030 Comprehensive Plan sets the long-term framework for development within the entire community.Based upon the 2030 Comprehensive Plan,other land use controls such as the Zoning Ordinance are created.These zoning regulations, for example,must be consistent with the 2030 Comprehensive Plan and in that way the city ensures that development conforms to the community's goals.The currently adopted 2030 Comprehensive Plan does acknowledge redevelopment of downtown and does recognize that a mix of land uses,including residential,would be acceptable. As a result of the Downtown Redevelopment Plan's vision and illustrative plan, future land use designation changes are recommended to the 2030 Land Use Plan Map in the city's 2030 Comprehensive Plan,which are identified on the following page 21. Zoning Zoning Map. In order to ensure consistency between the land use plan map and the zoning map,the city should consider potential changes to the zoning map, including the following: Change B-2 zoning east of 4th Street to R T. Change B-3 zoning west of rail line,north and south of Spruce Street,to R-5. Change B-2 zoning west of rail line and adjacent to the Vermillion River to R-5. Change B-3 zoning east of rail line,and along Pine Street,to R-5. Downtown Commercial Overlay District Design Standards.The city has established a downtown overlay district that has required design standards for all new construction,renovations,or additions of commercial buildings.To implement the Downtown Redevelopment Plan,it is recommended that the city consider the following changes to the overlay district's design standards: Make the design standards applicable to multi-family buildings,notjust commercial buildings. Expand the overlay district's boundaries east to 5th Street to be consistent with the boundaries of the Downtown Redevelopment Plan. While the B-2 zoning district is exempt from providing off-street parking spaces, this exemption or a reduced off-street parking quantity standard should be Farmington Downtown Redevelopment Plan considered for the entire Downtown Redevelopment Plan study area which includes the R T(Downtown Transitional Mixed Use)zoning district. » Specify that the building facade material and design standards apply to facades visible from an alley,mid-block pedestrian way,off-street parking area,or public open space. Strengthen the standard regarding blank windowless walls(E)(3),such as requiring facade treatments that compensate for the lack of windows. This land use plan map LEGEND shows recommended Study Area changes to the 2030 Land 0 Parcels Use Plan Map in the City's Floodplain Linden 2030 Comprehensive 2030 Planned Land Use Plan as a result of the Low Density Downtown Redevelopment I Low Medium /! Plan's illustrative plan. _Medium Density High Density T•� Willow _Mixed-Use(CommeMal/Aesidentlap _Commercial _Industrial _Park/Open Space _Public/Semi-Public �.._�.,_.�—.-_. '"�` ROW J� Pine Pine ®Proposed Land Use Changes x.,. .,,.. ♦»... � Main 50 lUF OakMI Oak o Spruce I Pd Walnut �T Walnut FM M7, a a w � M R N LpCust Locust Implementation 0 FOCUS-6ATEWAY(ORNER SITE » Redevelopment will likely require greater density.This (SOUTHWEST CORNER Of 3RD STREET&HIGHWAY50) density creates income potential needed to offset the additional costs of redevelopment. This property is identified as a key redevelopment site » Redevelopment is more expensive.At a minimum, in the Downtown Redevelopment Plan.This property redevelopment incurs costs for the demolition and clearance provides an excellent setting to illustrate the continuum of existing structures. of potential city roles in the redevelopment process. » Redevelopment increases parking demand.Commercial/ office uses may be able to rely on surface parking at and Market Based.This approach represents the minimal around the site.Residential uses often require on-site, role for the city.The"market"will determine the timing structured parking.Structured parking spaces are often 3 to and nature of redevelopment.The city will influence 5 times more expensive than surface parking. redevelopment through land use controls(zoning and Even if the approach is to rely on developers to bring forth Comprehensive Plan). Financial assistance is not provided. redevelopment projects,the city must be prepared to be This approach creates the most difficult path for a financial partner.The additional costs of redevelopment, implementation.The economics of redevelopment make as envisioned in the Plan,cannot be supported solely by significant change on this property unlikely in the near- income from the use of this property. term.The income potential of the property limits the City-Led Redevelopment.This end of the continuum amount of redevelopment investment that is financially represents a proactive city role.While this role could feasible for a developer.Given the financial constraints, take a variety of forms,a desirable approach would be the best outcome would be some combination of the acquisition of the property.This action has several commercial and office uses within the existing structure benefits:(1)the developer is not faced with the potential with some revitalization. challenge of land acquisition;(2)the city controls the cost It should be noted that this type of use could actually of land for a redevelopment project;(3)ownership creates become a barrier to more significant redevelopment.The greater control over future development;and (4) land near-term reinvestment could make the property more acquisition demonstrates city support for redevelopment. expensive, increasing the cost of a future redevelopment This approach also carries greater financial commitment project. and risk.Initial funding is required to acquire the property. There are no guarantees that all costs will be recovered Market Based with Financial Assistance.This approach from redevelopment.The timing of redevelopment is similar to the previous scenario with the exception remains difficult to predict. that the city uses financial assistance to achieve desired public objectives.The purpose of financial assistance One variation of this approach would be to relocate the city's liquor store to this site.Although this property may in the scenario is to create outcomes that would not occur without this assistance.Financial assistance makes not be the optimal location for the liquor store,it has additional investment financially feasible.It also creates several benefits for the Plan: the ability to negotiate for public objectives that are not » Downtown attraction.One of the goals of the Plan is to possible solely through the use of land use controls.Some attract more people to the downtown.The strategy of moving the liquor store would be to enhance both its examples of public objectives include: physical space and its services to make it a destination. » Incentive to attract desired businesses to the Downtown. Attracting people expands opportunities for all businesses. » Exterior improvements to the building. » Development control.The city has complete control over » Other changes in the nature of the reinvestment to more the project.The building fagade at this key intersection is strongly support the Downtown Redevelopment Plan. important. There may be other aspects of site design and uses that would be beneficial to the overall Plan. Market Based Redevelopment.The previous examples » Development timing.Relocation of the liquor store is the assume that future uses occur within the existing fastest means of redeveloping the site and realizing the structure. Redevelopment assumes that a new structure related benefits for the downtown. is built on this site.Redevelopment has several important implications: Farmington Downtown Redevelopment Plan Downtown ELM STREETIHWY50 Gateway Feature/ Signage/Public Art �° << "" �� ~•' ,'�" _ `"'�" "'._ ` '.'�" �_'" New Retail or Mixed-Use (Retail with Office or Residential Above) Building W h i Farmers'Market Open , Air Pavilion that Reflects Character of Historic Railroad Depot 2nd Street Designed as �a a Multi-Functional Event Street that Accommodates Parking When Events Are $ W Not Occurring � .77LL N cc J � New Retail Buildings i Potential redevelopment concept for the gateway cur,ersite siury n ewove focuses on a new building located right up to the sidewalk on both 3rd Street and Elm Street/ Highway 50 and a potential formers'morket open space/street on 2nd Street. Implementation ATTRACTING INVESTMENT The Downtown Redevelopment Plan will be implemented by attracting private investment to downtown.This investment will come from property owners and from new development partners for the city. Solicitation of Proposals The planning process has raised awareness about the potential for revitalization in Downtown Farmington.For the purposes of this Plan,redevelopment means demolition of existing structures and construction of a new building or buildings consistent with the downtown framework.A potential development partner may be apparent at the time of implementation.If not,the city may use a request for proposal (RFP)process to obtain a private development partner for a redevelopment project.The RFP allows the city to explain its objectives and to find the developer best suited to bring the segments of the design framework to fruition in this area.The steps in the RFP process include: » Prepare and distribute RFP » Select preferred development partner » Negotiate preliminary development agreement. » Approve final development agreement by EDA. » Planning review and approval process. Revitalization Revitalization is an important outcome of this Plan.In the Plan,revitalization is used where existing structures will remain and will be upgraded.The city hopes to create an environment that encourages property owners to invest in the betterment of existing buildings and sites,perhaps through financial incentives.Tools to create that environment include: » Grants for initial architectural and design work. » Low interest loans to finance improvements. » Use of public funds in matching grant program for qualifying improvements. » Technical assistance for property owners wishing to explore revitalization projects. The city and the EDA should take steps to establish a specific revitalization assistance program following adoption of this Plan.Without a commitment to this program,revitalization of existing structures may be set aside as resources are applied to other,larger redevelopment initiatives. Land Acquisition Opportunities may arise to acquire land not related to a current development proposal.It is advantageous to have the ability to purchase land at key locations when offered for sale by property owners.This approach offers several benefits: ® Farmington Downtown Redevelopment Plan » A"willing seller"purchase often reduces the long-term land expense and the public cost of redevelopment. » The assembly of land enhances the potential for redevelopment.Land costs are certain and the delays to assemble a site are reduced. » Control of land minimizes the need for condemnation.The challenge of acquiring and banking land in advance of redevelopment is funding.The city will be looking into funding alternatives for land acquisition as well as specific redevelopment projects. FINANCIAL TOOL BOX Revitalization or redevelopment of downtown will be more difficult without the financial assistance of the City of Farmington.The need for public financial assistance comes from several factors: » Redevelopment projects often prove not to be financially feasible without public assistance.Projected revenues available from the new development do not cover the costs of redevelopment.This"gap"between revenues and expenditures stems from a variety of causes.Land costs are often higher than alternative"green field"locations.The price of a redevelopment site includes land and structures.Further,redevelopment includes costs for demolition and clearance of existing structures.There are also expenses(direct or indirect)for the relocation of existing businesses.Often these additional costs cannot be passed on through higher lease rates or sale prices. » Structured enclosed parking may be three or four times more expensive than outdoor surface parking. » The Plan seeks a higher level of design and building materials in downtown.The Plan anticipates that the city's downtown will create a showcase area for the community and therefore higher quality design and materials are anticipated. City financial participation in redevelopment provides a means of achieving this goal. » Revitalization,rather than full-scale redevelopment,is also costly and limited by some of the same factors as the redevelopment process.The current economic environment of downtown may not generate enough additional income for the property owner to invest in enhanced building facades or signage.Public financing may be needed to support a portion of the cost of improvements. The remainder of this chapter provides an overview of the primary tools available to the City of Farmington for financing actions related to implementation of this Plan. Tax Increment Financing Tax increment Financing(TIF)is the primary development finance tool available to Minnesota cities(Minnesota Statutes,Sections 469.174 through 469.179). TIF is simple in concept,but complex in its application.Through tax increment financing,the property taxes created by new development(or redevelopment)are captured and used to finance activities needed to encourage the development. The challenge in using TIF lies with the complex and ever-changing statutory Implementation limitations.These complexities make it impractical to provide a thorough explanation of tax increment financing as part of this Plan.Instead,this section highlights the use of TIF as it relates to the implementation of the Plan. Uses Tax increment financing can be used to finance all of the important implementation actions facing the city:land acquisition,site preparation,parking, and public improvements.In addition,TIF creates a means to borrow money needed to pay for redevelopment costs. Type of TIF Districts The implementation of the plan may require the creation of one or more new TIF districts.The following overview highlights some of the considerations in creating a TIF district.This information is intended solely as a basic framework for finding applications within downtown.All specific uses will require a thorough analysis of all statutory factors.The ability to meet the statutory criteria for establishing a district is a key to the use ofTIF.Three types of TIF districts have application to the plan: » Redevelopment.A redevelopment TIF district has two basic criteria:(1)parcels consisting of 70%of the area of the district are occupied by buildings,streets, utilities,or other improvements;to be occupied,not less than 15%of the parcel's area must be covered by the improvements;and (2),more than 50% of the buildings,not including outbuildings,are structurally substandard to a degree requiring substantial renovation or clearance(as defined by statute).A redevelopment district may consist of non-contiguous areas,but each area and the entire area must meet these criteria; » Renewal and renovation.A renewal and renovation district requires similar, but reduced criteria.The following three factors must exist:(1)the same 70% occupied test applies;(2)the minimum amount of structurally substandard buildings drops to 20%;(3)30%of the other buildings require substantial renovation or clearance to remove existing conditions(such as inadequate street layout;incompatible uses or land use relationships;overcrowding of buildings on the land;excessive dwelling unit density;obsolete buildings not suitable for improvement or conversion;or other identified hazards to the health,safety,and general well being of the community); » Housing.A housing TIF district is intended to contain a project,or a portion of a project,intended for occupancy,in part,by persons or families of low and moderate income.A district does not qualify as a housing district if the fair market value of the improvements,which are constructed in the district for commercial uses or for uses other than low and moderate income housing, consists of more than 20%of the total fair market value of the planned improvements in the development plan or agreement.Several variations of housing districts may also apply different rent and income restrictions and apply to owner-occupied and rental housing.These districts have typically been established and managed by the Dakota County Community Development Agency(DCCDA). ® Farmington Downtown Redevelopment Plan Limitations The use of TIF as a financing tool also poses limitations: » Use of Tax Increments.The use of tax increment revenues is controlled by both State Law and by a local plan.State Law sets forth specific limitations based on the type of TIF district.These limitations generally tie back to the original criteria used for establishing the district.For example,at least 90%of the revenues derived from tax increments from a redevelopment district or renewal and renovation district must be used to finance the cost of correcting conditions that allowed for the designation of the district.The use of tax increments must also be authorized by a tax increment financing plan adopted by the city; » Pooling.The term pooling refers to the ability to spend money outside of the boundaries of the TIF district.For redevelopment districts,not more than 25% of revenues can be spent on activities outside of the TIF district.The limit is 20% for all other districts.Monies spent on administrative expense count against this limit.This limit reduces the ability of TIF to pay for area-wide improvements and to use excess revenues to support other development sites; » Timing Constraints.Timing factors must be considered in creating a TIF district. Establishing a district too far in advance of actual development may limit future use.Within 3 years from the date,of certification,the city must undertake activity within the district.The statutory criteria of activity includes issuance of bonds in aid of a project,acquisition of property,or the construction of public improvements.Without qualifying activity,no tax increment can be collected from the district.Within 4 years from the date of certification,the city or property owners must take qualifying actions to improve parcels within the district.All parcels not meeting these statutory criteria must be removed(knocked down) from the district.Upon future improvement,any parcel so removed may be returned to the district.After 5 years from the date of certification,the use of tax increment is subject to new restrictions.Generally,tax increment can only be used to satisfy existing debt and contractual obligations.The geographic area of theTlF district can be reduced,but not enlarged,after 5 years from the date of certification. Tax Abatement Tax abatement acts like a simpler and less powerful version of tax increment financing.With TIF,the city controls the entire property tax revenue from new development.Under the abatement statute(Minnesota Statutes,Sections 469.1812 through 469.1815),the city,county and school district have independent authority to grant an abatement.Acting alone,the city cannot use tax abatement to generate the same amount of revenue as TIF.Nonetheless,tax abatement provides a valuable tool for the downtown initiatives.Certain projects may be of sufficient importance to encourage county and/,or school district abatement and achieve additional funding capacity. Implementation Uses Abatement in Minnesota works more like a rebate than an abatement.The city(and other units abating taxes)adds a tax levy equal to the amount of taxes to be abated. The revenue from the abatement levy can be returned to the property owner or retained and used to finance development activities.Tax abatement can be used to finance the key redevelopment actions in the downtown;such as land acquisition, site preparation and public improvements.Tax abatement is perhaps best suited as an incentive for reinvestment in existing property.While TIF deals with only the value from new development,abatement can apply to both new and existing value.This power provides the means to encourage building rehabilitation and storefront improvements.The city could agree to abate all or part of the municipal share of taxes to encourage reinvestment tied to the plan. The statute grants the authority to issue general obligation bonds supported by the collection of abated taxes.The proceeds of the bonds may be used to pay for(1) public improvements that benefit the property,(2)land acquisition,(3) reimbursement to the property owner for improvements to the property,and (4) the costs of issuing the bonds. Limitations State law places several important limitations on the use of tax abatement: The total amount of tax abatements for each political subdivision is capped.The total abated taxes in any year cannot exceed the greater of ten percent(10%) of the net tax capacity of the political subdivision for the taxes payable year to which the abatement applies,or(2) $200,000. If one political subdivision declines to abate,then the abatement levy can be made for a maximum of 15 years.If the city,county and school district all abate, then the maximum period drops to 10 years; Taxes cannot be abated for property located within a tax increment financing district. Special Assessments Public improvements are often financed using the power to levy special assessments(Minnesota Statutes Chapter 429).A special assessment is a means for benefiting properties to pay for all or part of the costs associated with improvements,and to spread the impact over a period of years.From a city perspective,this authority provides an important means of raising capital. Uses Special assessments can be used to finance all of the public improvements needed to implement the Plan.Eligible improvements include streets,sidewalks,street lighting,streetscape,and parking.Special assessments provide a means to borrow money to finance public improvements.Chapter 429 conveys the power to issue general obligation improvement bonds to finance the design and construction of public improvements.Important factors in the use of improvement bonds include: A minimum of 20%of the cost of the improvement to the city must be assessed against benefited properties; ® Farmington Downtown Redevelopment Plan » Beyond the 20%threshold,any other legally available source of municipal revenue may be used to pay debt service on improvement bonds; » Improvements bonds are not subject to any statutory debt limit; » Improvement bonds maybe issued without voter approval. Limitations Careful consideration must be given to setting the amount of the assessment. From a legal perspective,the amount of an assessment cannot exceed the benefit to property as measured by increased market value.There are also practical considerations.Benefiting property owners should pay for a fair share of improvement costs without creating an economic disincentive to operating a business in downtown.Within this limitation,several factors will shape the amount of the assessment: » The amount of the assessment must be 20%or more of the improvement cost to allow the issuance of bonds; » Local improvement policies and/or decisions made on previous projects often create parameters for assessments. » Likewise,assessment decisions should be made with consideration of the potential implications for future similar projects; » The assessment must strike a balance between equity and feasibility.Properties that benefit from improvements should pay a fair share of the costs.The assessment must be affordable for both the property owner and the city. Reducing the assessment to the property requires the city to allocate other revenues to the project. Special Service District A special service district is a tool for financing the construction and maintenance of public improvements within a defined area.Minnesota Statutes Sections 428A. OI through 428A.1 O govern the creation and use of special service districts.This legislation is currently scheduled to expire in 2028.A special service district provides a means to levy taxes(service charges)and fund improvements to and services for a commercial area. Uses A special service district has several applications for downtown Farmington: » The district can provide an alternative to special assessments as a means of financing some of the public improvements in downtown.The service district approach avoids the benefits test imposed by special assessments.The test for the service district is that the amount of service charges imposed must be reasonably related to the special services provided.The costs of shared parking or streetscape improvements,for example,may be better spread across a district than through assessments to individual properties. » A special service district can provide for maintenance of public improvements. Some of the improvements described in the Plan require a level of maintenance above the typical public improvement.Items such as banners and planted Implementation materials must be maintained and replaced at a faster rate than that expected for streets or utilities.A higher standard of cleaning and snow removal may be expected in downtown.Without a special service district,these costs are typically borne through the General Fund of the city. » A special service district provides a means of providing and operating the downtown parking system.Use of a special service district should be considered during the negotiation of a development agreement. If the city is going to use a special service district,the city should seek agreement to a petition and waiver of veto and other objections related to the use of a special service district.The development agreement must address both the establishment of the service district and the levy of a service charge. Limitations The use of a special service district is subject to some important constraints: » The process to create a district and to levy taxes must be initiated by petition of property owners and is subject to owner veto.The use of a special service district requires a collaboration of property owners and the city.There are two separate steps in the process:(1)adoption of an ordinance establishing the service district and (2)adoption of a resolution imposing the service charges. Neither step can be initiated by the city;the city must receive a petition to undertake the processes to create the special service district and to impose service charges.At a minimum,the petition must be signed by owners representing 25%of the area that would be included in the district and 25%of the tax capacity subject to the service charge. » The actions of the City Council to adopt the ordinance and the resolution are subject to veto of the property owners.To veto the ordinance or the resolution, objections must be filed with the City Clerk within 45 days of initial City Council action to approve.The objections must exceed 35%of area,tax capacity,or individual/business organizations in the proposed district.The specific veto requirements depend on the nature of the service charge.The service charge applies solely to nonresidential property.State law limits the application of a service charge only to property that is classified for property taxation and used for commercial,industrial,or public utility purposes,or is vacant land zoned or designated on a land use plan for commercial or industrial use.Other types of property may be part of the service district,but may not be subject to the service charge.A housing improvement area could be employed for owned housing elements of a redevelopment project. General Property Taxes General property taxes can be used to finance many of the services,improvements, facilities and development activities needed to implement the Plan.There are a variety of ways to provide property support.Taxes may be levied through the General Fund,to pay debt service on bonds,and as a levy for a development authority(EDA or HRA). ® Farmington Downtown Redevelopment Plan Grant Programs Grant funding from County,Regional,State and Federal programs can be a valuable tool for planning and implementation.The specific nature of grant programs changes over time depending on policy objectives and funding.The following section describes some of the key current programs. Dakota County Community Development Agency (DCCDA) The DCCDA operates several assistance programs targeted at community development and redevelopment: Community Development Block Grant Program. The federal Community Development Block Grant(CDBG) Program provides annual grants on a formula basis to Dakota County,which then distributes funds to participating cities and townships.This program was established to develop viable urban communities by providing decent housing and a suitable living environment.CDBG funding expands economic opportunities for low-and moderate-income persons and eliminates slum/blight conditions. Examples of how CDBG funds could be used in the downtown are acquisition and demolition of blighted properties to assemble sites for redevelopment and construction or substantial rehabilitation of affordable housing. Redevelopment Program. The DCCDA's Redevelopment Program provides staff expertise to cities for redevelopment activities.Projects have ranged from the acquisition of affordable housing sites to the redevelopment of commercial sites on behalf of cities.Staff assistance includes acquisition,relocation,demolition,and environmental remediation. Redevelopment Incentive Grant(RIG) Program. The DCCDA's Redevelopment Incentive Grant Program was created in 2006 to assist cities with redevelopment goals and promote the development of affordable workforce and supportive housing.To date,the program has awarded nearly$7 million to 34 redevelopment projects and 13 plans.All cities in Dakota County are eligible to participate in the program.Applications are solicited annually in the Fall.Maximum award for redevelopment projects is$250,000 and $15,000 for redevelopment planning. Examples of potential uses include: Acquisition and demolition of blighted properties to assemble property for redevelopment; Installation of public improvements,including utilities,sidewalks,trails, streetscape improvements; Land use,planning,marketing and transit oriented development studies; Construction of structured public parking. Livable Communities Grants The Metropolitan Council provides grants to fund"community investment that revitalizes economies,creates affordable housing,and links different land uses and transportation."There are currently four categories of Livable Communities Grants: Implementation Transit Oriented Development Grants.These grants are targeted at projects that promote higher density/mixed-use development with strong connections to transit.Projects must be located within the one half mile station area zone.Grant funds may be used for site assembly,placemaking,infrastructure,and site cleanup. Livable Communities Demonstration Account(LCDA). LCDA grants are intended for "innovative(re)development projects that efficiently link housing,jobs,services,and transit in an effort to create inspiring and lasting Livable Communities" Grant funds may be used for planning,infrastructure and site assembly. Local Housing Incentives Account(LHIA).The Local Housing Incentives program promotes affordable rental and owned housing opportunities. Tax Base Revitalization Account(TBRA).This program provides funding for the investigation and remediation of brownfields. State Redevelopment Grant Program The Minnesota Department of Employment and Economic Development(DEED) provides grants to help finance the"costs of redeveloping blighted industrial, residential,or commercial sites"Monies from this program can be used for a wide range of activities including land acquisition,site preparation and infrastructure.At least one half of the funding goes to projects located outside of the seven-county metropolitan area. USING THE HRA ACT Many redevelopment powers come to the city through the HRA Act(Minnesota Statutes Sections 469.001 through 469.047).State Law authorizes the EDA to use their powers.This section of the Plan lays the foundation for accessing the necessary statutory authority. Findings To exercise these powers,the HRA Act requires that the City Council make certain findings(by resolution)about the downtown area.The statutory findings focus on two development characteristics:(1)the presence of"substandard,slum,or blighted areas"or(2)a shortage of"decent,safe,and sanitary dwelling accommodations available to persons of low income and their families' While housing needs form part of this plan,the physical condition of buildings and infrastructure are the primary catalyst for public actions. The process of preparing this Plan involved the review and assessment of the existing condition of structures and infrastructure in the downtown area.Through these efforts the city has laid the foundation for using the powers granted by the HRA Act. The assessment of the downtown undertaken through the planning process identifies a variety of factors that show the need for redevelopment and the public actions offered in this Plan.Among the factors present in the downtown area are: Buildings and improvements that are physically or economically obsolete. Parcels with faulty arrangement and design and obsolete layout. Farmington Downtown Redevelopment Plan Parcels with excessive land coverage. Parcels with deficient soil conditions. The combination of these and other factors impair the ability of the private sector to correct these factors without the implementation of this plan.The failure to address this situation would not serve the best interests or general welfare of the community.Further,the results of the planning process should provide the basis for findings needed to support city actions under the HRA Act. Redevelopment Plan It would be appropriate to designate the Downtown Redevelopment Plan as a"redevelopment plan"for the purposes of the HRA Act.In designating this redevelopment plan,the City Council will make the following findings: 1.Land in the project area would not be made available for redevelopment without the financial aid to be sought.This Plan identifies the financial barriers to redevelopment in downtown Farmington.The need for financial assistance from the city(and other public bodies)will be determined as part of each project.This finding will be verified throughout the implementation of the Plan. 2.This redevelopment plan will afford maximum opportunity for the redevelopment of the downtown by private enterprise.A fundamental objective of this Plan is to maximize the opportunities for private investment in downtown. Public actions and investments are taken to remove barriers and to provide catalysts for private development. 3.This redevelopment plan is consistent with the needs of Farmington as a whole. To ensure this consistency,the city's 2030 Comprehensive Plan will be amended to support the Downtown Redevelopment Plan. Redevelopment Project Area The downtown planning area,as shown in Figure 1,is designated as the"project area"for undertaking redevelopment projects pursuant to this Plan.This area should also serve as the project area for the purposes of tax increment financing.This designation allows any excess tax increments to be spent in the downtown,subject to the authorizations and limitations of each tax increment financing plan. Implementation 'i r � F r •e C. _ - ��•---._.. � _ _ - � r a► l �- t, moi---� (reserved for recording information) CONTRACT FOR PRIVATE DEVELOPMENT HOMESTEAD COMMUNITY CHURCH THIS AGREEMENT, made on or as of the _day of , 2021, by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic under the laws of the State of Minnesota (the "EDA") and HOMESTEAD COMMUNITY CHURCH, a Minnesota non-profit corporation (the "Developer"). WITNESSETH: WHEREAS, the EDA was created pursuant to Minnesota Statutes, Sections 469.090-.108 and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Farmington pursuant to Section 469.093 of the Act; and WHEREAS, pursuant to the Act, the EDA is authorized to undertake certain activities to prepare real property for development and redevelopment by private enterprise; and WHEREAS,there has been a proposal that the EDA approve the sale of the real property described in Exhibit"A" attached hereto (the"Property")to the Developer for development of an outdoor landscaped patio area in the City of Farmington (the "Project"), as depicted in Exhibit "B"; and WHEREAS, the EDA believes that the Project and fulfillment generally of this Agreement is in the best interest of the EDA and the health, safety, morals and welfare of the residents of the City of Farmington and in accord with the public purposes and provisions of the applicable state and local laws and requirements. 2005200 NOW,THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I. DEFINITIONS In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.090-.108, as amended. "Agreement" [or "Contract"] means this Contract for Private Development by and between the EDA and the Developer, as the same may be from time to time modified, amended or supplemented. "Articles and Sections" mentioned by number only are the respective Articles and Sections of this Agreement so numbered. "City" means the City of Farmington, Minnesota. "County" means the County of Dakota, Minnesota. "Deed" means the limited warranty deed described in Section 3.1 to be executed by the EDA conveying the Property to the Developer. "Developer" means Homestead Community Church, a Minnesota non-profit corporation, or any assigns that have received prior written approval from the EDA. "EDA" means the Farmington Economic Development Authority. "Event of Default" means an action by the Developer listed in Article VII of this Agreement. "Minimum Improvements" means at least a 600 square foot brick patio space, a pergola and appurtenant improvements constructed on the Property by the Developer as depicted on Exhibit `B", in accordance with all applicable local, state and federal regulations governing such facilities, and in conformance with site plans as the same have been submitted to the EDA. "Parties" means the Developer and the EDA. "Party" means either the Developer or the EDA. "Project" means the Property and the completed Minimum Improvements thereon. "Property" means the real property as legally described in Exhibit"A" attached hereto. 200520v7 2 "Purchase Price" means the sum of Thirty-five Thousand and No/100 Dollars ($35,000.00), which the Developer shall pay the EDA for the purchase of the Property. "State" means the State of Minnesota. "Unavoidable Delays" means delays outside the control of the Party claiming its occurrence which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, Acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays. Unavoidable delays shall not include delays in the Developer's obtaining permits or governmental approvals necessary directly to enable construction of the Minimum Improvements. ARTICLE II. REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties by the EDA. The EDA represents and warrants that: (a) The EDA is a public body corporate and politic duly organized and existing under the laws of the State. Under the provisions of the Act and the laws of the State, the EDA has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the EDA are undertaken for the purpose of creating additional job opportunities within the City and to enhance the economic diversity of the City and to provide essential products and services within the City. (c) The EDA makes no representation or warranty, either express or implied, as to the Property or its condition or soil conditions thereon, or that the Property is suitable for the Developer's needs except as specifically set forth in this Agreement. (d) Subject to satisfaction of the terms and conditions of this Agreement, the EDA will convey the Property to the Developer for development in accordance with the terms of this Agreement. (e) There is not pending, nor to the best of the EDA's knowledge is there threatened any suit, action or proceeding against the city before any court, arbitrator, administrative agency or other governmental authority that may materially and adversely affect the Property, the validity of any of the transactions contemplated hereby, the ability of the EDA to perform it obligations hereunder or as contemplated hereby, or the validity or enforceability of this Agreement. 200520v7 3 (f) There are no parties other than the EDA in possession of any portion of the EDA, nor are there any leases (oral or written) applicable to or affecting the Property. No third party has an option to purchase, right of first refusal, right of first offer or other similar right with respect to all or a portion of the Property and the EDA has not entered into any other contracts for the sale of all or any portion of the Property with any third party. (g) Promptly following execution of this Agreement (but no later than ten (10) Business Days after the date of this Agreement), the EDA will provide the Developer with true, correct and complete copies of any environmental reports, surveys, soil borings, title commitment or other documentation in the possession of the EDA with respect to the Property. (h) The EDA has no actual knowledge that a "well" (as defined in Minnesota Statutes Section 103I.005, subd. 21) is located on the Subject Property. (i) Solely for purposes of satisfying the requirements of Minn. Stat. § 115.55, the EDA certifies that, to the EDA's knowledge, there is no "individual sewage treatment system" (as defined in Minnesota Statutes Section 115.55, subd. 1(g)) located on the Property. (j) The EDA certifies that, as of the date hereof,no methamphetamine production has occurred on the Property,pursuant to Minn. Stat. § 152.0275. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer is a non-profit corporation and is authorized to transact business in the State of Minnesota, and has full power and authority to enter into this Agreement, perform its obligations hereunder and has duly authorized the execution, delivery and performance of this Agreement by proper action of its members. (b) When the Property is conveyed to the Developer, the Developer will combine the Property and the parcel to the east of the Property (PID 14-77000-22-044) ("Developer Property") under a single tax identification number and will construct, operate and maintain the Minimum Improvements upon the Property in accordance with the terms of this Agreement, and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Minimum Improvements will be constructed by the Developer, at its sole expense, in such manner, and at such expense as are necessary to make the Property usable by the Developer, including all such improvements as are 2005200 4 necessary to make said facility comply with all applicable federal, state and local rules, regulations, ordinances and laws. (e) The Developer will use its best efforts to construct the Minimum Improvements in accordance with all local, state or federal energy-conservation laws or regulations. (f) The Developer will use its best efforts to obtain, in a timely manner, all required permits, licenses and approvals and to meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. The EDA will cooperate to expedite the processing of any application filed with the City by the Developer. The EDA does not hereby warrant or represent that the City will approve an application filed by Developer, except as expressly provided in this Agreement. (g) The Developer will cooperate with the EDA, and the EDA will cooperate with the Developer with respect to any litigation commenced with respect to the Property or the Minimum Improvements. (h) The Developer will construct the Minimum Improvements on the Property in accordance with the plans approved by the EDA and complete construction pursuant to the terms of this Agreement. (i) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with, or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound or constitutes a default under any of the foregoing. (j) Whenever any Event of Default occurs and if the EDA shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement,the Developer agrees that it shall, within ten (10) days of written demand by the EDA, pay to the EDA the reasonable fees of such attorneys and such other expenses so incurred by the EDA. (k) At Closing, Developer shall execute and record the lot combination agreement substantially in the form attached as Exhibit D against the Property and Developer Property to ensure that the properties described therein remain under common ownership and treated as a single parcel, which Agreement will be recorded against the properties described therein. 2005200 5 ARTICLE III. CONVEYANCE OF PROPERTY Section 3.1. Sale and Purchase of Property. Subject to the satisfaction of the terms and conditions of this Agreement, the EDA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the EDA in "as-is" condition through the execution and delivery of a limited warranty deed containing a right of reversion as provided under Section 6.3 of this Agreement and conveying marketable title to the Subject Property, subject to: (a) building and zoning laws, ordinances, state and federal regulations; (b) restrictions related to use or improvements of the Property do not affect Developer's intended use or improvement of the Property; (c) easements that do not interfere with Developer's intended improvements and use; (d) reservations of minerals or mineral rights to the State of Minnesota; and Section 3.2. Conditions Precedent to Conveyance of Property. (a) The EDA's obligation to convey the Property shall be subject to the satisfaction of, or waiver in writing by the EDA of, all of the following conditions precedent: (i) The Developer not being in default under the terms of this Agreement; (ii) The Developer having secured all governmental permits and approvals, including building permits necessary to be obtained in order to permit conveyance of the Property to Developer and construction of the Minimum Improvements; (iii) The Developer shall have submitted to the EDA and the EDA shall have approved Construction Plans for the Minimum Improvements pursuant to Article IV of this Agreement. (b) The Developer shall be obligated to accept title to the Property subject to satisfaction, or waiver in writing by the Developer, of the following conditions precedent: (i) The EDA not being in default under the terms of this Agreement; and 2005200 6 (ii) The Developer having secured the EDA's approval of the Construction Plans and all other governmental permits and approvals, including building permits necessary to construct the Minimum Improvements; and (iii) At or before Closing, Developer having determined that it is satisfied, in its sole discretion, with the results and matters disclosed by a Phase I Environmental Audit and any other environmental tests of the Property completed under the terms of this Agreement, including soil tests. If the contingencies have not been satisfied or waived by the parties by the Closing Date, then the respective party may elect to terminate this Agreement by written notice delivered to the other party. Upon such termination, the Earnest Money shall be immediately refunded to Developer and upon such return neither party will have any further rights or obligations regarding this Agreement or the Property. If either party fails to terminate prior to Closing, then the contingencies pertaining to each such respective contingency shall be deemed waived by the party entitled to assert the contingency and the parties shall perform under this Agreement. If this Agreement is terminated as permitted under the terms of this Section,then upon request by EDA, EDA and Developer agree to sign a cancellation of this Agreement or Developer shall deliver a Quit Claim Deed to the Property to EDA. Developer agrees to diligently proceed to satisfy the conditions of this Section. Section 3.3. Purchase Price. The purchase price for the Subject Property shall be payable by Developer as follows: (a) One Thousand and No/100 Dollars ($1,000.00) as earnest money, the receipt of which is hereby acknowledged by the EDA, but which shall be applied to the purchase price hereunder ("Earnest Money"). The Earnest Money shall be non- refundable except in the event of termination of this Agreement by Developer pursuant to Section 3.2 hereof; and (b) The balance payable in cash, certified funds or wire transfer paid to the EDA at Closing. Section 3.4. Closing. (a) The Closing of the purchase and sale contemplated by this Agreement shall occur at the Title Company's office or another location agreed to by the parties and shall occur on or before June 25, 2021 ("Closing Date") provided all conditions precedent for the EDA and Developer to close have either been met or waived, and the Developer pays the EDA the Purchase Price. (b) The Developer shall take possession of the Property upon execution and delivery of the Deed by the EDA at closing. 200520v7 7 (c) The Deed shall be in recordable form and shall be promptly recorded along with this Agreement. (d) At Closing, the Developer shall pay: (i) title insurance premiums, if any; (ii) one-half of closing costs; (iii) the cost for any survey, environmental investigation or tests by Developer; and (iv) all taxes payable in accordance with the terms of this Agreement. (e) At Closing, the EDA shall pay: (i) state deed tax relating to the conveyance of the Property and conservation fees; (ii) recording fees for corrective instruments required to remove encumbrances and place marketable title in Developer's name; (iii) all taxes and assessments payable in accordance with this Agreement; and (iv) all title insurance company fees for issuance of a title commitment. (f) All costs incidental to the Closing not otherwise specifically allocated under this Agreement shall be allocated in accordance with the custom and practice for similar transactions in Minnesota. Section 3.5. Title. Title Examination will be conducted as follows: (a) The EDA will, as soon as possible after the date of this Agreement, furnish the following (collectively, "Title Evidence") to the Developer and developer's attorney via email at wayne@glgtime.com a Commitment for Title Insurance ("Commitment") which includes proper searches covering bankruptcies and state and federal judgments, federal court judgment liens in favor of the U.S., liens, and levied and pending special assessments. (b) The Developer shall have ten (10) days after receipt of the Commitment to provide the EDA with written objections to the Commitment. The Developer shall be deemed to have waived any title objections not made within the ten-day period above, except that this shall not operate as a waiver of the EDA's covenant to deliver a limited warranty deed under this Agreement. (c) The EDA shall have 20 days from receipt of written title objections to make title reasonably acceptable to the other party. Upon receipt of title objections, the EDA will, within five (5) days, notify the Developer of EDA's intention to make title marketable within the 20-day period. Liens or encumbrances for liquidated amounts that can be released by payment or escrow from proceeds of Closing shall not delay the Closing. Cure of the defects by the EDA shall be reasonable, diligent and prompt. Pending correction of title, each party's obligation to close the transaction contemplated hereunder and the Closing shall be postponed. 2005200 8 (d) If notice is given and the EDA makes title marketable, then upon presentation to the other party of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the Closing shall take place within ten (10) days or on the scheduled Closing Date, as hereinafter defined, whichever is later. (e) If notice is given and the EDA proceeds in good faith to make title marketable but the 20 day period expires without title being made marketable, the objecting party may declare this Agreement void by notice; however, neither party shall be liable for damages hereunder to the other. (f) If the EDA does not give notice of intention to make title marketable, or if notice is given but the 20 day period expires without title being made marketable due to the other party's failure to proceed in good faith, the exclusive remedy shall be rescission of this Agreement by notice as provided herein and the EDA shall return the Earnest Money to Developer. (g) If title is marketable, or is made marketable as provided herein, and Developer defaults in any of the agreements herein, the EDA's exclusive remedies shall be to cancel this Agreement as provided by statute and retain the Earnest Money. Section 3.6. Physical Inspection. Developer and its agents will have the right, from time to time prior to the Closing, to enter upon the Subject Property to examine the same and the condition thereof and to conduct such surveys and to make such engineering and other inspections, tests and studies as Developer determines to be reasonably necessary, all at Developer's sole cost and expense. Developer will conduct such examinations or surveys during normal business hours to the extent practicable. Developer will conduct all examinations and surveys of the Subject Property in a manner that will not harm or damage the Subject Property so that it cannot be restored to its prior condition or cause any claim adverse to the EDA and will restore the Subject Property to its condition prior to any such examinations or surveys immediately after conducting the same. Developer will indemnify, defend, and hold the EDA harmless from and against any claims for injury or death to persons, damage to property or other losses, damages or claims, including, in each instance, reasonable attorneys' fees and litigation costs, arising out of any action of any person or firm entering the Subject Property on Developer's behalf as aforesaid, which indemnity will survive the Closing and any termination of this Agreement without the Closing having occurred. Notwithstanding the foregoing, Developer will not be liable merely for the discovery of a pre-existing condition at the Subject Property. 3.7 Obligations at Closing. At Closing: (a) The EDA shall execute and deliver to the Developer the following: (i) Limited Warranty Deed. A limited warranty deed in recordable form and reasonably satisfactory to Developer, which shall include the following well representations: "Seller certifies that the Seller does not know of any wells 2005200 9 on the described Property." (ii) Seller's Affidavit. A standard form affidavit by the EDA indicating that on the date of Closing there are no outstanding, unsatisfied judgments,tax liens or bankruptcies against or involving the EDA or the Property; that there has been no skill, labor or material furnished to the Property for which payment has not been made or for which mechanic's liens could be filed; and that there are no other unrecorded interests in the Property. (iii) Non-Foreign Person Certification. A certification in form and content satisfactory to the parties hereto and their counsel, properly executed by the EDA, containing such information as shall be required by the Internal Revenue Code, and the regulations issued there under, in order to establish that the EDA is not a "foreign person" as defined in §1445(f)(3) of such Code and such regulations. (iv) Storage Tanks. If required, an affidavit with respect to storage tanks pursuant to Minn. Stat. § 116.48. (v) Well Certificate. If there is a well located on the Property, a well disclosure certificate in form and substance true to form for recording. (vi) Other Documents. All other documents reasonably determined by either party or the Title Company to be necessary to transfer and provide title insurance for the Property. (b) Developer shall execute and deliver at Closing: (i) Purchase Price. Payment of the balance of the Purchase Price; (ii) Lot Combination Request. The lot combination request to be filed with the County for the Property and Developer Property. (iii) Lot Combination Agreement. The Lot Combination Agreement attached hereto as Exhibit"D." (iv) Other Documents. All other documents reasonably determined by either party or the Title Company to be necessary to transfer and provide title insurance for the Property. Section 3.8. Charges and Fees. Developer shall be subject to normal development fees, building permit fees, sign fees and including but not limited to other fees such as plan review, plumbing and mechanical permits, WAC/SAC fees due at the time a building permit is issued including MCES SAC,water connection charges and sanitary sewer unit charges. 2005200 10 Section 3.9. Commissions. The EDA warrants and represents to Developer that no real estate broker was involved in this transaction on the EDA's behalf. The EDA shall indemnify Developer against any claim of any broker claiming by, through or under the EDA. Developer warrants and represents that no real estate broker was involved in this transaction on the Developer's behalf. Developer shall indemnify the EDA against any claim of any broker claiming by, through or under Developer. This warranty and representation shall survive Closing. 3.10. No Representation by the EDA. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, IT IS UNDERSTOOD AND AGREED THAT THE EDA IS NOT MAKING AND HAS NOT MADE, AT ANY TIME, ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN THE EDA'S LIMITED WARRANTY OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITIONS, UTILITIES, ACCESS, OPERATING HISTORY OR PROJECTIONS, VALUTION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF ANY PROPERTY DATA OR OTHER INFORMATION PERTAINING TO THE PROPERTY DELIVERED TO DEVELOPER BY THE EDA OR ANY OTHER MATTER OR THING REGARDING THE PROPERTY. DEVELOPER ACKNOWLEDGES AND AGREES THAT UPON THE CLOSING OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, THE EDA SHALL SELL AND DEVELOPER SHALL ACCEPT THE PROPERTY "AS IS, WHERE IS, WITH ALL FAULTS". DEVELOPER HAS NOT RELIED AND WILL NOT RELY ON, AND THE EDA IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS, OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO MADE OR FURNISHED BY THE EDA OR AGENT REPRESENTING OR PURPORTING TO REPRESENT THE EDA, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT. THE DEVELOPER REPRESENTS TO THE EDA THAT DEVELOPER HAS CONDUCTED, OR WILL HAVE HAD THE OPPORTUNITY TO CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL, ENVIRONMENTAL AND GEOTECHNICAL CONDITIONS THEREOF, AS DEVELOPER DEEMS NECESSARY TO SATISFY ITSELF OF THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES OR MATERIALS ON, WITHIN, UNDER OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF THE EDA. 20052ov7 11 UPON CLOSING, DEVELOPER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, ADVERSE PHYSICAL, ENVIRONMENTAL AND GEOTECHNICAL CONDITIONS MAY HAVE BEEN REVEALED BY DEVELOPER'S INVESTIGATIONS, AND DEVELOPER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED THE EDA (AND THE EDA'S OFFICERS, DIRECTORS, SHAREHOLDER, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT) LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS' FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH DEVELOPER MIGHT HAVE ASSERTED OR ALLEGED AGAINST THE EDA (AND THE EDA'S OFFICERS, DIRECTORS, SHAREHOLDER, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS) AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY. The EDA and Developer agree that the provisions of this Section 3.10 shall survive the closing of the transaction contemplated by this Agreement. ARTICLE IV. CONSTRUCTION OF MINIMUM IMPROVEMENTS Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Property in accordance with construction plans approved by the EDA, (the "Construction Plans") and will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof in good repair and condition. Section. 4.2. Construction Plans. (a) Prior to Closing, the Developer shall submit to the EDA a site plan for the Property ("Site Plan") and the Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with this Agreement, the Site Plan, and all applicable state and local laws and regulations. The EDA and/or the City Building Official shall approve the Construction Plans in writing if, in the reasonable discretion of the EDA and/or City Building Official: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii)the Construction Plans conform to all applicable federal, state and local law, ordinances, rules and regulations; (iii) the Construction Plans are adequate to provide for the construction of the subject Minimum Improvements; (iv) the 2005200 12 Construction Plans do not provide for expenditures in excess of the funds which will be available to the Developer for the construction of the Minimum Improvements; and (v) no Event of Default has occurred and is continuing. No approval by the EDA and/or City Building Official under this Section 4.2 shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements. No approval by the EDA and/or City Building Official shall constitute a waiver of an Event of Default. The EDA and/or City Building Official shall review the Construction Plans within thirty (30) days of submission of a complete set of Construction Plans and either approve the same or provide Developer with a list of specific required changes to be made to the Construction Plans. Upon making the specific changes to the Construction Plans as required by the EDA and/or City Building Official, the Developer shall submit the Construction Plans with the required changes to the City Building Official for his approval and if Developer made the required changes,the Construction Plans shall be approved. (b) If the Developer desires to make any material change in any Construction Plans after their approval by the EDA and/or City Building Official, the Developer shall submit the proposed change to the City Building Official for his approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the EDA and/or City Building Official shall approve the proposed change and notify the Developer in writing of its approval. Section 4.3. Construction of Minimum Improvements. The Developer shall substantially complete construction of the Minimum Improvements, except for minor "punch list items", within one (1) year of the date of this Agreement. Section 4.4. Construction Requirements. In constructing the Minimum Improvements, the Developer shall comply with all federal, state and local laws and regulations. Section 4.5. Failure to Accept Title to Property or to Construct. In the event all conditions precedent herewith are met or waived and the Developer fails to accept title to the Property pursuant to Article III or construction of the Minimum Improvements is not commenced or completed as provided in Section 4.3 of this Agreement (subject to the provisions of Article VII hereof), the Developer shall be liable to the EDA for the amount of the EDA's actual expenses related to this Agreement as liquidated damages. ARTICLE V. REAL PROPERTY TAXES Section 5.1 Taxes and Deferred Assessments. Except as otherwise provided herein, the EDA shall pay all general real estate taxes and installments of special assessments due and payable in the year prior to the Date of Closing and years prior thereto. The EDA and Developer 200520v7 13 shall prorate all general real estate taxes due and payable on the Subject Property in the year in which the Date of Closing occurs on a per diem basis. Except as otherwise provided below, EDA shall pay on or before Closing all levied and pending special assessments associated with the Subject Property as of the date of this Agreement. ARTICLE VI Events of Default Section 6.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events: (a) Failure by the Developer to pay when due any payments required to be paid under this Agreement or to pay when due ad valorem taxes on the Property. (b) Failure by the Developer to commence, diligently pursue and complete construction of the Minimum Improvements, or portions thereof, pursuant to the terms, conditions and limitations of this Agreement. (c) Failure by Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (d) The Developer does any of the following prior to completion of construction of the Minimum Improvements: (i) files any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under United States Bankruptcy Laws or any similar federal or state laws; or(ii) make an assignment for the benefit of its creditors; or(iii) admit, in writing, its inability to pay its debts generally as they become due; or (iv) be adjudicated, bankrupt or insolvent. (e) If any warranty or representation by the Developer in this Agreement is untrue in any material respect. (f) Failure by EDA to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (g) If any warranty or representation by the EDA in this Agreement is untrue in any material respect. Section 6.2. EDA's Remedies on Default. Whenever any Event of Default by Developer referred to in Section 6.1 of this Agreement occurs, the EDA may take any one or more of the following actions and unless otherwise provided such actions may be taken only after providing thirty (30) days written notice to the Developer of the Event of Default and the Event of Default has not been cured within said thirty (30) days or, if the Event of Default is by its nature incurable within thirty (30) days, the Developer does not provide assurances to the 2005200 14 EDA reasonably satisfactory to the EDA that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances from the Developer, deemed adequate by the EDA, that the Developer will cure its default and continue its performance under the Agreement. (b) Terminate this Agreement; (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the EDA to collect any payments due or damages arising under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 6.3. Revesting Title in EDA Upon Happening of Event Subsequent to Conveyance to Developer. In the Event that subsequent to the execution and delivery of the Deed the Developer shall fail to complete construction of the Minimum Improvements in conformity with this Agreement and such failure shall not be cured within thirty (30) days after written notice to do so, or within a reasonable amount of time thereafter if Developer is diligently proceeding with the construction of the Minimum Improvements, then the EDA shall have the right to immediately re-enter and take possession of the Property and to terminate (and revest in the EDA) the estate conveyed by the Deed to the Developer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Developer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Developer and failure on the part of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the EDA at its option may declare a termination in favor the EDA of the title, and all of the rights and interests in and to the Property conveyed to the Developer, and that such title and all rights and interests of the Developer, and any assigns or successors in interest to and in the Property, shall revert to the EDA. If Developer provides a title commitment and warranty deed to the Property in lieu of reversion, the EDA shall pay to Developer 90% of that portion of the Purchase Price actually paid by Developer to the EDA. The warranty deed shall convey fee title to the Property to Developer, subject only to the encumbrances identified under Section 3.1 of this Agreement. The title commitment required under this section shall be a current commitment for the issuance of an ALTA Form B owner's policy of title insurance issued by Title Company committing to insure good and marketable title to the Property in favor of the EDA. A deed of trust, mortgage, monetary lien or any other lien or encumbrance against the Property shall be deemed to be a title objection. Upon request, the EDA shall release the right of revertor if the Minimum Improvements are completed and a certificate of occupancy or temporary certificate of occupancy have been issued for the Subject Property. Section 6.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the EDA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or 2005200 15 omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 6.5. Attorneys' Fees. Whenever any Event of Default occurs and either the EDA shall employ attorneys or incur expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement, the Developer agrees that it shall, within ten (10) days of written demand by the EDA pay to the EDA the reasonable fees of such attorneys and such other expenses so incurred by the EDA; provided, that the Developer shall only be obligated to make such reimbursement if the other party prevails in such collection or enforcement action. Section 6.6 Developer's Remedies on Default. Whenever any Event of Default by EDA referred to in Section 6.1 of this Agreement occurs, the Developer may take any one or more of the following actions and unless otherwise provided such actions may be taken only after providing thirty (30) days written notice to the EDA of the Event of Default and the Event of Default has not been cured within said thirty (30) days or, if the Event of Default is by its nature incurable within thirty (30) days, the EDA does not provide assurances to the Developer reasonably satisfactory to the Developer that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Up to the Closing: (i) suspend its performance under the Agreement until it receives assurances from the EDA, deemed adequate by the Developer, that the EDA will cure its default and continue its performance under the Agreement; or (ii) terminate this Agreement; or (b) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the Developer to collect any damages arising under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant of the EDA under this Agreement. ARTICLE VII. ADDITIONAL PROVISIONS Section 7.1. Certificate of Completion. Promptly after a request by Developer, the EDA will furnish Developer with a certificate of completion substantially in the form shown at Exhibit "C" (the "Certificate of Completion"), provided that the City has determined that Developer has substantially completed the Minimum Improvements in accordance with the provisions of this Agreement. Such certification by the EDA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of Developer, and its successors and assigns, to construct the Minimum 2005200 16 Improvements, and shall operate to forever waive the EDA's interest in the Property, including the right of reverter. If the EDA shall refuse or fail to provide any certification in accordance with the provisions of this Section 7.1, the EDA shall, upon demand, provide Developer with a written statement, indicating in adequate detail in what respect Developer has failed to complete the Minimum Improvements in accordance with the provision of this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the EDA, for Developer to take or perform in order to obtain such certification. Upon Developer's completion of the items so described by the EDA, the EDA shall deliver a fully executed Certificate of Completion to Developer. Section 7.2. Restrictions on Use. The Developer agrees for itself and its successors and assigns and every successor in interest to the Property, or any part thereof, that the Developer and such successors and assigns shall devote the Property to, and only to, and in accordance with, any and all uses specified in the City Code, including but not limited to alteration or replacement of the Minimum Improvements, provided that alterations shall be more substantial improvements at a higher value than the Minimum Improvements and the Property shall not be returned to its current vacant state. Section 7.3. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in this Agreement it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and regulations. Section 7.4. Conflicts of Interest. No member of the governing body or other official of the EDA shall have any financial interest, direct or indirect, in this Agreement, the Project or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his personal interest or the interest of any corporation, partnership or association in which he is, directly or indirectly, interested. No member, official or employee of the EDA shall be personally liable to the Developer or any successors in interest, in the event of any default or breach by the EDA or for any amount which may become due to the Developer or successor or on any obligations under the terms of the Agreement. Section 7.5. Waiver and Release by Developer. The Developer hereby waives, releases and forever discharges the EDA from any claim for costs incurred in preliminary plans, specifications, site testing improvements, professional fees or legal fees in connection with the Project. Section 7.6. Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. 200520v7 17 Section 7.7. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally; and (a) In the case of the Developer, is addressed or delivered personally to: Homestead Community Church 3443 rd St. Farmington, Minnesota 55024 with a copy to: Wayne E Gilbert Gilbert Legal Group, LLC 2113 Cliff Drive Eagan, MN 55122 Wayne(a�glgtime.com Telephone: 651-452-6693 (b) In the case of the EDA, is addressed or delivered personally to: Economic Development Authority in and for the City of Farmington c/o City of Farmington 430 Third Street Farmington, Minnesota 55024 with a copy to: Andrea McDowell Poehler CAMPBELL KNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 (c) Either Party may, upon written notice to the other Party, change the address to which such notices and demands are made. Section 7.8. Disclaimer of Relationship. The Developer acknowledges that nothing contained in this Agreement nor any act by the EDA or the Developer shall be deemed or construed by the Developer or any third person to create any relationship of third-party 2005200 18 beneficiary,principal and agent, limited or general partner or joint venture between the EDA and the Developer. Section 7.9. Covenants Running with the Land. The terms and provisions of this Agreement shall be deemed to be covenants running with the Property and shall be binding upon any successors or assigns of the Developer and any future owners or encumbrancers of the Property. Section 7.10. Counterparts. This Agreement is executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 7.11. Law Governing. This Agreement will be governed and construed in accordance with the laws of Minnesota. IN WITNESS WHEREOF, the EDA has caused this Agreement to be duly executed in its name and behalf, and the Developer has caused this Agreement to be duly executed in its name and behalf, on or as of the date first above written. [Remainder of page intentionally left blank.] [Signature pages to follow.] 200520v7 19 ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON By: [print name] Its President By: [print name] Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2021, by and , respectively, the President and Executive Director, of the Economic Development Authority in and for the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public 200520v7 20 HOMESTEAD COMMUNITY CHURCH By: Its STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2021, by , the , a Minnesota non-profit corporation, on its behalf. Notary Public DRAFTED BY: Campbell Knutson Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan,Minnesota 55121 Telephone: (651)452-5000 2005200 21 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY The North 15 feet of the South 90 feet of the East 21 feet of Lot 3, Block 22, Town of Farmington, Dakota County, Minnesota. (Abstract Property) AND That part of Lots Three (3) and Four (4), Block Twenty-two (22), Town of Farmington, described as follows: Commencing at the Southeast (SE) corner of Lot Three (3), Block Twenty-two (22); thence West Twenty-one (2 1) feet; thence North Seventy-five (75) feet; thence East Twenty-one (2 1) feet; thence North Fifteen(15) feet; thence East Forty (40) feet; thence South Twenty (20) feet; thence West Twenty (20) feet; thence South Seventy (70) feet; thence West Twenty(20) feet to the place of beginning, except that part of Lot Four(4), Block Twenty-two (22), Town of Farmington, Dakota County, Minnesota, described as follows: Commencing at the Southeast corner of Lot Three (3), Block Twenty-two (22); thence West 21 feet; thence North 75 feet; thence East 21 feet; thence North 15 feet; thence East 20 feet to the point of beginning of the land to be described; thence continuing East 20 feet; thence South 20 feet; thence West 20 feet; thence North 20 feet to the point of beginning. (Torrens Property/Certificate of Title No. 139488) [209 Oak Street, Farmington, Minnesota/PIN # 14-77000-22-043] 200520v7 EXHIBIT "B" DEPICTION OF THE PROJECT . y i i 2005200 EXHIBIT "C" CERTIFICATE OF COMPLETION The undersigned hereby certifies that HOMESTEAD COMMUNITY CHURCH, a Minnesota non-profit corporation("Developer") has fully complied with its obligations to construct the Minimum Improvements under that document titled Contract for Private Development dated , 20_, by and between the Economic Development Authority in and for the City of Farmington (the "EDA") and Developer, and that Developer is released and forever discharged from its obligations under the Agreement with respect to the obligations of Developer, and its successors and assigns, to construct the Minimum Improvements, and the EDA waives any right, title or interest it may have in the Property, including a right of reverter. The Dakota County Recorder's Office is hereby authorized to accept for recording the filing of this instrument, to be a conclusive determination of the satisfaction and termination of the covenants and conditions of the Contract for Private Development described above. IN WITNESS WHEREOF, the EDA has caused this Certificate to be duly executed in its name and behalf on or as of the date first above-written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON By: [print name] Its President By: [print name] Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 20 , by and , respectively, the President and Executive Director, of the Economic Development Authority in and for the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public 200520v7 EXHIBIT D FORM OF LOT COMBINATION AGREEMENT THIS INDENTURE is made and entered into this day of , 20 , by the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic under the laws of the State of Minnesota, its successors and assigns (hereinafter referred to as "EDA"), and HOMESTEAD COMMUNITY CHURCH, a Minnesota non-profit corporation (hereinafter referred to as "Owners"). WITNESSETH: WHEREAS, Owner is the fee owner of certain real property in the City of Farmington, Dakota County, Minnesota, legally described in Exhibit A attached hereto (and hereinafter collectively referred to as the "Properties"); and WHEREAS, Owner has applied for a tax parcel combination of the Properties; and WHEREAS, as a condition of the sale of a portion of the Properties to Owner pursuant to the Contract for Private Development dated , 2021 between the EDA and Owner (the "Contract"), the Owner is required to execute and record this Agreement against the Properties to ensure that the Properties remain in common ownership by the same person or persons, and further that Properties are intended to be used and/or developed in common by Owner as if they were in fact one parcel. NOW, THEREFORE, for and in consideration of the sum of One Dollar ($1.00), the Contract and other valuable consideration, Owner hereby agrees to restrict, limit and preclude the ownership, sale, use, improvement and development of the Properties according to and under the conditions and covenants herein contained, as follows: 1. The EDA and Owner agree that the Properties shall henceforth be contained in common use and ownership even if recorded as a separate lot or parcel, and that the Properties will not be conveyed, sold, leased or otherwise encumbered except together as if they were a single parcel. 2. In addition to any other remedy the EDA may have, the covenants and restrictions contained herein may be enforced by injunction. An Owner who is in possession of the Properties shall pay to the EDA all costs and expenses including attorney's fees incurred by the EDA in enforcing the terms if this indenture. 3. This Agreement shall not be modified or amended except by written agreement of the Owner of the Properties and the EDA. 2005200 4. All provisions hereof shall run with the land and shall extend to and bind the heirs, successors, representatives, grantees or assigns of the respective parties hereto. EDA: ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON By: [print name] Its President By: [print name] Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 20 , by and , respectively, the President and Executive Director, of the Economic Development Authority in and for the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public 200520v7 OWNER: HOMESTEAD COMMUNITY CHURCH By: [print name] Its President STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2021, by , the President of Homestead Community Church, a Minnesota non-profit corporation, on its behalf. Notary Public DRAFTED BY: Campbell Knutson Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: 651-452-5000 AMP/jmo 2005200 EXHIBIT A TO FORM OF LOT COMBINATION AGREEMENT The North 15 feet of the South 90 feet of the East 21 feet of Lot 3, Block 22, Town of Farmington, Dakota County, Minnesota. (Abstract Property) AND That part of Lots Three (3) and Four (4), Block Twenty-two (22), Town of Farmington, described as follows: Commencing at the Southeast (SE) corner of Lot Three (3), Block Twenty-two (22); thence West Twenty-one (2 1) feet; thence North Seventy-five (75) feet; thence East Twenty-one (2 1) feet; thence North Fifteen (15) feet; thence East Forty (40) feet; thence South Twenty(20) feet; thence West Twenty (20) feet; thence South Seventy (70) feet; thence West Twenty (20) feet to the place of beginning, except that part of Lot Four (4), Block Twenty-two (22), Town of Farmington, Dakota County, Minnesota, described as follows: Commencing at the Southeast corner of Lot Three (3), Block Twenty-two (22); thence West 21 feet; thence North 75 feet; thence East 21 feet; thence North 15 feet; thence East 20 feet to the point of beginning of the land to be described; thence continuing East 20 feet; thence South 20 feet; thence West 20 feet; thence North 20 feet to the point of beginning. (Torrens Property/Certificate of Title No. 139488) [209 Oak Street, Farmington, Minnesota/PIN# 14-77000-22-044] ADD LEGALS FOR DEVELOPER PROPERTY 2oos2ov7 RESOLUTION NO. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON RESOLUTION AUTHORIZING SALE OF PROPERTY WHEREAS, the Economic Development Authority in and for the City of Farmington (hereinafter "EDA") is the owner of property legally described in the attached Exhibit "A" (the "Property"), and WHEREAS, Homestead Community Church ("Developer") has requested to purchase the Property for expansion of their abutting property and building with a patio and possible future building expansion; WHEREAS, the EDA finds that the sale of the Property to Developer is in the best interest of the City and its people to convey the Property pursuant to the terms of the Contract for Private Development attached hereto as Exhibit B ("Contract") and that the transaction furthers the general plan of economic development of the City and the aims and purposes of the EDA WHEREAS, the EDA has held a public hearing on the proposed conveyance of the Property to the Developer and the proposed Contract, preceded by published notice in accordance with the requirements of Minnesota Statutes Section 469.105 NOW THEREFORE BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, MINNESOTA, 1. The Contract is hereby approved; and 2. The President and Executive Director are hereby authorized to execute any and all documents necessary, in the opinion of the City Attorney, to effect the conveyance of the Property in accordance with the terms of the Contract. Adopted by the Economic Development Authority this day of , 2021. President Attest: Executive Director 152179v1 1 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY The North 15 feet of the South 90 feet of the East 21 feet of Lot 3, Block 22, Town of Farmington, Dakota County, Minnesota. (Abstract Property) AND That part of Lots Three (3) and Four (4), Block Twenty-two (22), Town of Farmington, described as follows: Commencing at the Southeast (SE) corner of Lot Three (3), Block Twenty-two (22); thence West Twenty-one (21) feet; thence North Seventy-five (75) feet; thence East Twenty-one (21) feet; thence North Fifteen (15) feet; thence East Forty (40) feet; thence South Twenty (20) feet; thence West Twenty (20) feet; thence South Seventy (70) feet; thence West Twenty (20) feet to the place of beginning, except that part of Lot Four (4), Block Twenty-two (22), Town of Farmington, Dakota County, Minnesota, described as follows: Commencing at the Southeast corner of Lot Three (3), Block Twenty-two (22); thence West 21 feet; thence North 75 feet; thence East 21 feet; thence North 15 feet; thence East 20 feet to the point of beginning of the land to be described; thence continuing East 20 feet; thence South 20 feet; thence West 20 feet; thence North 20 feet to the point of beginning. (Torrens Property/Certificate of Title No. 139488) [209 Oak Street, Farmington,Minnesota/PIN# 14-77000-22-043] 1521790 2 EXHIBIT B CONTRACT FOR PRIVATE DEVELOPMENT 152179vl 3