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HomeMy WebLinkAbout09-20-21 CITY OF Meeting Location: FARMINGTONFarmington City Hall it 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA September 20, 2021 6:15 PM 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CONSENTAGENDA (a) Monthly Financial Statement (b) Approve Meeting Minutes (June 17, 2021 Special and June 24, 2021 Regular Meeting) 6. PUBLIC HEARINGS 7. DISCUSSION ITEMS (a) Amendment of the EDA By-Laws (b) Appointment of Chair and Vice Chair (c) 2022 Facade Improvement Program 8. DIRECTOR'S REPORT&OTHER BUSINESS (a) SourceLink Activity Report 9. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 e Farmington M N.gov TO: Economic Development Authority FROM: Samantha DiMaggio, Community Development Director SUBJECT: Monthly Financial Statement DATE: September 20, 2021 INTRODUCTION/DISCUSSION Attached is the monthly financial statement of the EDA. ACTION REQUESTED Acknowledge the monthly financial statements and ask any questions you may have. ATTACHMENTS: Type Description ❑ Exhibit Monthly Financial Statement Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2021 2021 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ONINVESTMENTS -2,327.85 -2,100.00 2000-HRA/ECONOMIC DEVELOPME 5010 SALES OF ASSETS -34,000.00 0.00' 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -29,999.97 -40,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBURSEMENTS 22,750.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB -83,218.34 -180,474.00 2000 HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 85,592.15 129,430.00' 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 6,290.90 10,030.00' 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 6,419.43 9,707.00 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 14,006.30 9,046.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 263.43 790.00 2000-HRA/ECONOMIC DEVELOPME 6220 EQUP SUPPLIES&PARTS-DBB 58.08 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS 80.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 2,895.00 11,650.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 2,251.40 2,000.00' 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 7,103.97 9,472.00 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 304.54 540.00 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 13.86 300.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 397.39 130.00: 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPME 6455 LEGAL NOTICES 91.50 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,250.00 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,526.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 990.00 3,500.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 1,529.71 5,000.00 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 0.00 400.00 2000-HRA/ECONOMIC DEVELOPME 6492 ADVERTISING 0.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINTENANCE 1,296.00 0.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 247.64 195.00 2000-HRA/ECONOMIC DEVELOPME 6550 DEVELOPER PAYMENTS 7,802.90 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 5,080.00 8,000.00 2000-HRA/ECONOMIC DEVELOPME 6950 MACHINERY, EQUIPMENT&TOOLS 27,744.00 2000-HRA/ECONOMIC DEVELOPME 7140 LEGAL&FISCAL FEES 1,230.50' Total 2000-HRA/ECONOMIC DEVELOPM 47,668.54 -17,384.00 47,668.54 -17,384.00 47,668.54 -17,384.00 9/15/2021 1:27:35 PM Page 1 of 1 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Approve Meeting Minutes (June 17, 2021 Special and June 24, 2021 Regular Meeting) DATE: September 20, 2021 INTRODUCTION/DISCUSSION Attached for your review are the minutes of the June 17, 2021 Special EDA Meeting and June 24, 2021 Regular EDA Meeting. ACTION REQUESTED Approve the minutes of the June 17, 2021 Special EDA Meeting and June 24, 2021 Regular EDA Meeting. ATTACHMENTS: Type Description D Exhibit June 17, 2021 Special EDA Minutes D Exhibit June 24, 2021 Regular EDA Minutes CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES SPECIAL MEETING June 17, 2021 1. CALL TO ORDER The meeting was called to order by Chair Butterfield at 6:00 p.m. 2. PLEDGE OFALLEGIANCE Chair Butterfield led those in attendance in the Pledge of Allegiance. 3. ROLL CALL Members Present: Butterfield,Bernhjelm,Hoyt,Simmons,Hudlemeyer,Carpentier, Kaufman Members Absent: None Staff Present: Kalley Swift, Community Development Specialist Others Present: Kristie Kerr,Homestead Community Church; Barbara Wolff, Bloomington Resident; Dean McNeal,Bloomington Resident 4. APPROVEAGENDA Member Simmons noted that item 5 CITIZEN COMMENTS/PRESENTATIONS was on the agenda twice and it should only be one item on the agenda. MOTION by Simmons,second by Hoyt to approve the Agenda with only one item 5 CITIZEN COMMENTS/PRESENTATIONS rather than two.APIF,MOTION CARRIED. S. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Kaufman,second by Hoyt to approve the Consent Agenda as follows: a) Approved Meeting Minutes (April 15, 2021,Special Meeting) b) Executive Director Appointment APIF,MOTION CARRIED. 7. PUBLIC HEARINGS a) Public Hearing to Consider Sale of the EDA Owned"Riste Lot"at 209 Oak Street Chair Butterfield opened the public hearing to consider the sale of the Riste Lot and allowed Kristie Kerr,Homestead Community Church,the ability to speak on behalf of the church.Ms. Kerr expressed gratitude for the EDA holding a Special Meeting in order to approve the sale of the Riste Lot.They have been interested in this lot for many years and are very excited to have it finalized.Homestead Community Church plans on turning it into an accessory outdoor use with green space.Homestead will look to the Riste Lot for future building expansion if they need arises. Community Development Specialist Swift explained the Riste lot was acquired and demolished in 2007 by the HRA/EDA of Farmington using Community Development Block Grant(CDBG) funds and Redevelopment Incentive Grant(RIG) dollars.Since 2007 the City Council and EDA have discussed selling this property for private redevelopment.The EDA 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.The Riste Lot is specifically called out in the Downtown Redevelopment Plan as a vacant and underutilized site in downtown Farmington.Homestead Community Church currently owns the Exchange Bank and Larson Buildings and has invested in the property with facade improvements and interior renovations.Homestead Community Church has expressed interest in acquiring the Riste Lot since 2018 and has kept in frequent contact with city staff about acquiring the property. The Contract for Private Development will require Homestead Community Church to file a lot combination request with Dakota County to ensure the Exchange Bank,Larson Building, and Riste Lot remain under common ownership.A purchase price of$35,000 was agreed upon after the September 2020 appraisal to determine the fair market value of the Riste Lot.Due to Dakota County and federal requirements,a new appraisal was conducted in May 2021 with a fair market value of$36,000.The EDA will have repayment provisions back into the CDBG Program upon the sale of the Riste Lot.The EDA will be required to pay back 76.9%of the fair market value.76.9%of$36,000 is$27,684 required to be reimbursed into the CDBG Program.City staff encourages the sale of the Riste Lot at this time.Specialist Swift opened the room up for questions from the EDA and public present. Member Bernhjelm expressed her excitement in seeing this sale become finalized to Homestead Community Church.She thanked Homestead Community Church for the improvements already made to the Exchange Bank and Larson Buildings.She is in favor of the sale.Member Simmons echoed Member Bernhjelm and expressed her excitement to see this sale finalized.She appreciated Homestead Community Church's patience.MOTION by Hoyt,second by Bernhjelm to close the Public Hearing to Consider Sale of the EDA Owned "Riste Lot"at 209 Oak Street.APIF,MOTION CARRIED.MOTION by Hoyt,second by Kaufman to approve the sale of the Riste Lot and adopt the attached Contract For Private Development and Resolution 01-21 Authorizing Sale of Property.APIF,MOTION CARRIED. 8. DISCUSSION ITEMS 9. DIRECTOR'S REPORT 10. ADJOURN MOTION by Simmons,second by Carpentier to adjourn at 6:12 p.m. APIF,MOTION CARRIED. Respectfully submitted, Kalley Swift Community Development Specialist Page 2 CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES REGULAR MEETING June 24, 2021 1. CALL TO ORDER The meeting was called to order by Chair Butterfield at 6:00 p.m. 2. PLEDGE OFALLEGLINCE Chair Butterfield led those in attendance in the Pledge of Allegiance. 3. ROLL CALL Members Present: Butterfield,Bernhjelm,Hudlemeyer,Carpentier Members Absent: Kaufman,Hoyt,Simmons, Staff Present: Samantha DiMaggio, Community Development Director;Kalley Swift, Community Development Specialist Others Present: Barbara Wolff,Bloomington Resident; Dean McNeal,Bloomington Resident 4. APPROVEAGENDA MOTION by Bernhjelm,second by Hudlemeyer to approve the Agenda.APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA Specialist Swift explained that the closing for the sale of the Riste Lot was Friday,June 25,so David McKnight needed to remain Executive Director until the property was officially closed.Swift suggested amending the Executive Director Appointment to either appoint Samantha DiMaggio,Community Development Director effective Monday,June 28,2021,or to pull the item from the consent agenda and officially appoint Director DiMaggio at the July EDA Meeting. MOTION by Bernhjelm,second by Carpentier to amend the Executive Director Appointment to be effective Monday,June 28, 2021 and approve the Consent Agenda as follows: a) Monthly Financial Statements b) Executive Director Appointment APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) City Council Update/Member Roundtable Member Bernhjelm said that the BR&E Program officially started this week with two different business visits.They were overall great visits and we received positive feedback so far about how the city has handled businesses and the business community.There was a red flag documented for one of the visits,but it was nothing the city could address locally.City staff connected the business with our Open To Business Dakota County Advisor Natalie Mouilso who has since reached out to offer her resources for their red flag. During Monday's City Council meeting,the City Council approved the contract for the downtown sidewalk improvements as well as expanding the project to pave parking lots at Rambling River Center and Rambling River Park.The downtown sidewalk project and the addition of more improvements to the downtown environment shows the effort that we are trying to put all of our resources into one area right now.The downtown sidewalk project and our discussion tonight feels like for the first time we are intentionally putting all of our efforts into a specific area.Member Bernhjelm wanted to give that context before the discussion of reallocating the RRC Plaza dollars since funding these items are coming from the City Council to the EDA when looking at the RRC Plaza funds in the EDA budget. Community Development Director,Samantha DiMaggio took time to introduce herself.She has over 20 years of experience in community and economic development.She is excited to take time and learn the community as well as bring new ideas and resources. b) 2022 Budget Discussion and Recommendation In June,the City Council looks at the first draft of the budget for the following year.The City Council realizes the EDA is underfunded and as a result the responsibilities of the EDA need to match the funding given.The role of the EDA has been defined as supporting the 2021- 2022 City Council priorities of business growth,community engagement,and infrastructure support.Accounting for maximum spend downs in all budget categories for 2021,there is still$52,062 cash available within the EDA budget.Broadly,2022 will be a year of focusing on the BR&E program and launching the new versions of the Facade Improvement Program and Redevelopment and Property Reinvestment Program. Funding the operation of the EDA,the annual Open to Business fee,the Facade Improvement Program,and the Redevelopment and Property Reinvestment Programs costs roughly$75,000/year for the EDA,and the EDA has typically seen$40,000/year in the past five years.As the EDA continues to create and execute additional programs,cash available on hand will continue to decrease.Member Bernhjelm asked about the Riste Lot sale and if those funds were accounted for in our budget yet.The reimbursement of the CDBG dollars to the CDA and the expenditure of legal fees,appraisal fees,and closing costs for the Riste Lot will occur after the closing of the property.The EDA will have less than$10,000 added into their budget as cash available later this summer.Member Bernhjelm wanted to propose something to the group and get their reaction.Since the EDA has seen a lot of success from the Downtown Facade Improvement Program,the EDA should consider increasing the annual budget allocation to at least$30,000.The Redevelopment and Property Reinvestment Program would remain at$20,000 since there has only been one year of the Program which isn't enough time to see how the Program fully functions.Member Bernhjelm recommends asking for at least$50,000 from the City Council.With an increase in funding,the EDA could have a signage conversation next year which would incorporate city-wide signage updates. There was consensus within the EDA to go bigger on the ask from the City Council. Chair Butterfield is comfortable asking for additional funding for 2022,but isn't sure signage or increasing funding to a successful program is the answer when explaining to the City Council why the EDA would like an increase in funds.He would also like to see Director DiMaggio's reaction to our current toolset which may impact EDA budget areas.The EDA discussed more about wayfinding generally throughout the entire city which included the downtown pedestrian wayfinding as well as larger vehicle wayfinding on major corridors and monument city entrance signs which was a discussion item in 2020. Page 2 Director DiMaggio outlined her thoughts on some of the city's economic development tools she was able to review during her first couple of days.After her tour of the city,she believes the facade program should become city-wide.There are plenty of areas in the city, especially along major corridors,that could benefit from that type of program.Fagades are first impressions.Just like the EDA is saying go big on the funding ask,the Fagade program should have that same mentality for going big and allowing any business city-wide looking to make a facade improvement eligible for the program. For the Redevelopment Program,Director DiMaggio is surprised we have money for interior fixes.Member Bernhjelm said the idea is that there are some buildings we felt were not being sold or filled with tenants because there was too much interior work to be done inside,like sprinkling a building,which turned prospects away.The intent is to help make properties more attractive for landowners to get tenants inside or to sell the property for a new use.Chair Butterfield said the spirit of that program is to help businesses invest in a manner to either draw more customers in,increase business capacity,or expand what they do to grow jobs and job creation.Director DiMaggio mentioned some cities do a 429 Plan for property owners who need to sprinkle a building.It allows building owners to repay the city over time as part of their taxes as an assessment.That is something we could look at doing rather than the Redevelopment Program. Director DiMaggio also reviewed our available properties resource on our website which outlines where available properties,buildings,and suites are for businesses.There aren't that many available,so the EDA could look at targeting certain properties for certain uses.A grocery store is talked about a lot in this community. Something the EDA could look at doing is using a RFP for putting a grocery store at a specific location in the city.Submissions would come in from those who are willing to make that specific type of investment and whoever was selected was given a grant.The City of Jordan was successful doing that for getting more restaurants with their Kitchen Equipment Program for commercial kitchens which are expensive.There are things the EDA could do to target their dollars to get specific goals and outcomes rather than putting funding at broader programs and hoping something sticks.Director DiMaggio would like time to figure out Farmington needs and what buildings/sites are available before going farther into that idea. Chair Butterfield asked what the City Council needs out of this discussion.The EDA asking for an additional$50,000-100,000 is the right amount.Member Bernhjelm said the City Council is going to get skittish if the EDA asks for$100,000 without a more detailed plan of where these dollars will go.She said an approach of showing necessary funding for our current programming,funding for new ideas from city staff based off of EDA conversations this fall,and funding for signage/city improvements would help the City Council.Chair Butterfield likes the idea of listing sections of funding needs to the City Council when asking for a larger amount. Director DiMaggio asked why the EDA got tasked with wayfinding.Member Bernhjelm said the EDA wasn't necessarily tasked with it.The EDA has had$100,000 RRC Plaza dollars set aside for years.For at least the past four years,the City Council has had discussions about big projects and none take off,including the RRC Plaza.For the past year or so,there have been conversations for how to spend those EDA RRC Plaza dollars and make an impact now since the project isn't happening in the near future.Last year,staff and the EDA discussed some projects that could get done that are business friendly and would help support driving traffic downtown or along Highway 3.Signage came up.Additionally,through other external Page 3 studies done,we know that there is a need for it.There is nothing driving people off of Highway 3 to go downtown.We have outdated signage as well. Member Bernhjelm emphasized that wayfinding does not have to be the answer,and the EDA does not have to tackle it.It is simply a topic that has been lingering for a while that feels like we can't get done because we don't have the financing. If the EDA doesn't want to tackle it with their budget funds that is okay.Member Bernhjelm stated that the next discussion item which included holiday decor and banners was suggested to be funded by the EDA because when the City Council was allocated the$1.2 million,banners and holiday decor were suggested items to fund with those dollars.Member Bernhjelm and Member Hoyt told the rest of the City Council that those types of items were things the EDA has talked about funding and taking the lead on,so let that group look at those items to fund since those items have a business purpose to it,it helps create a more attractive downtown and fagade,and it helps advance some of the implementation steps of the Downtown Redevelopment Plan. Chair Butterfield asked for clarification from the memo.It says that as the EDA continues to create and execute programs,it needs to think about identifying long-term dedicated funding sources.What does finding longer term sources mean?Specialist Swift explained that right now the only funding source the EDA has is an annual allocation from the City Council and it is a general fund transfer.If the EDA analyzes their needs and realizes it needs larger transfers annually when the cash available decreases,the City Council needs to know that well in advance so they can plan for those larger annual transfers within the city budget.Director DiMaggio added that there are other funding sources we could pull from. We could utilize MN DEED dollars.However,in order to secure funding from sources like the state,you usually need your own money to get their money.Her fear is that if we went to the state and said we have$100,000,what will you give us,it wouldn't be a ton.With a lot of DEED projects,they want 50%match.There is concern that if we had a business need, project,or wanted to look into a new industrial/business park,and we want to apply for something like a BDPI,we would need more funds to get the funds we needed from MN DEED. Chair Butterfield outlined that the EDA sold its only asset and we have our fund balance. That is it.If you compare our EDA to other EDAs with the same structure as us,they have 5- 10x more dollars and assets they can use.Does this EDA want to build up our balance and increase our assets to leverage these state and federal funds?If we do,how do we get there? Director DiMaggio said we either need to get allocated more money or we need to stop spending for a while.When she got to the City of Le Sueur,their EDA had been utilizing business loans rather than business grants to help increase their fund balance which at the time was$1.6 million for a city with a population of 4,000.Shakopee's EDA annual amount was almost$1 million. Member Carpentier asked Director DiMaggio about what are some average interest rates for loans businesses would try and take out.Director DiMaggio said that the average rate is around 5%.In Le Sueur,she did some at 3%and in Greater MN right now they are around 6% for riskier loans.Member Carpentier asked if we could get a large one-time allocation if we brought forward the idea or plan for how we are going to transition from grants to loans which would be steps towards becoming self-funding.This would allow the City Council to only have to give a large allocation once during a year where there is a surplus in the budget and not have to worry about PR hits later on if supporting EDA functions would require a tax levy increase.Director DiMaggio said the City of Le Sueur got lucky with the loans which led to the$1.6 million available.Some of the loans they did were partnered with DEED,and Page 4 DEED used to allow you to keep$100,000 of the loan repayments.This is how they ended up at$1.6 million available to use on a large project.They also acquired 150 acres of land along HWY 169 that they have been trying to develop for years.Our EDA just sold our only lot which was valued at$36,000.We have to look at how competitive we want to be and where do we want to take ourselves. An issue Director DiMaggio sees is that the EDA is expected to do big change and make big things happen,but we are only given a small amount of funding to accomplish it.She isn't afraid of getting creative with the funding and allocation that we are given.However, $20,000 for a site readiness program isn't going to get us anywhere,especially if it is infrastructure based.If we want to fund some of these programs and initiatives,we are going to need to find more funding somewhere.We could do a TIF,but when a business comes into that area and they want to do a TIF,they can't because we took a TIF to get the site ready.Director DiMaggio needs more time to see what land we have available,if we are able to acquire it,and how we could help advance the creation of additional industrial or business parks.If it isn't available,then that's okay,but she is nervous for how we are going to grow our commercial base if there is nowhere to grow our commercial base. Member Bernhjelm stated that she has enough information needed at this time to bring the EDA budget discussion to the City Council knowing that we will have further discussions in the fall about our revised EDA program offerings.Chair Butterfield clarified that the EDA needs more money in order to leverage additional funding sources to get something that will be meaningful and move the dial for our#1 priority which is increasing the tax base. c) Reallocating Rambling River Center Plaza Funds Specialist Swift outlined that the EDA has discussed interest in reallocating the RRC Plaza funds for other projects and that the City Council has identified some projects which could be funded through the EDA since these projects help advance some items listed within the Implementation Chapter of the Downtown Redevelopment Plan.The four projects available for discussion are:wayfinding($15,000),banners ($20,000),holiday decor($27,744), and streetscaping($40,000). For wayfinding,the EDA reviewed a draft downtown wayfinding plan in 2020 and comments were incorporated into the final plan.That plan is what would be funded if approved tonight. For banners,draft designs are being created.City maintenance staff has assessed the current brackets on city owned light poles downtown,and they need to be replaced if new banners are ordered.For holiday decor,a bid was placed from Parks&Rec and is ready to be purchased with approval tonight.The sale prices for the holiday decor items are on sale until June 30.For streetscaping,the downtown sidewalk project is occurring in 2021.This project is a good time to also update public space infrastructure and streetscaping. Completing these types of improvements is a part of the Downtown Redevelopment Plan and Public Space Improvement Program. Member Bernhjelm pulled up the City Council materials from that week's City Council meeting.In the downtown sidewalk memo,the City Engineer's outlined expenditures did not include revenue from the EDA for funding the downtown sidewalk project or streetscaping.Since City Council approved the downtown sidewalk funding earlier that week utilizing other funding sources,Member Bernhjelm said the EDA does not have to worry about funding that specific project.Member Bernhjelm added that her and Member Hoyt specifically kicked down the banners and holiday decor to the EDA to try and fund vs. Page 5 the Council funding it.She feels strongly about the EDA funding those two projects.Member Bernhjelm also feels that the holiday decor could be sponsored and asked Director DiMaggio how she feels going out and trying to find sponsorships for the$27,744.Director DiMaggio said going out for sponsorships may not be the best use of her time.She asked what local groups would be willing to donate?Is there a way to have Dakota Electric or Xcel sponsor something like this?Member Bernhjelm wants to purchase the holiday decor while we can take advantage of the sale price and reach out to Dakota Electric to see if this is something they want to get behind and sponsor. Director DiMaggio asked why the EDA is funding this when the project is more of a city project.There are so many cool light displays around the area,would people even come into downtown to see these?Member Bernhjelm said we've heard from residents a lot which is why it is a topic for discussion.Our previous holiday decor was in rough shape so we haven't been using them.Last year a group of residents got together and did their own holiday decor.Same goes for the banners.They are in rough shape.Member Bernhjelm doesn't feel like we need to fund all four projects outlined,but a small investment that is visible is a way for the community to see how the EDA has helped out and give the group some exposure.Member Hudlemeyer said we should ask our electric companies to match half the funds.That would be a win. He does feel that we should do this project,especially if we go to the City Council and ask for a large budget allocation soon.We should fund a project which helps further a goal in the Downtown Redevelopment Program and is a project the City Council would like us to fund.We need to do something they have tasked us with.Member Bernhjelm said that there is an expectation that the banners and the holiday decor are going to be funded by the EDA.If it doesn't happen,she will go back to the City Council and let them know why the EDA did not fund the projects. Chair Butterfield asked for clarification on if the sale prices would be available after June 30. City staff clarified that the prices will go up due to time of the year and cost of materials and goods.Member Carpentier and Hudlemeyer discussed supply and demand delays and mid- year price increases seen in all business sectors. Member Hudlemeyer asked what the life expectancy is for these holiday decor items.A$27,000 investment which lasts five years is not too large of an investment to make.Chair Butterfield said to put it in new context.Just the holiday decor project alone is 50%of this body's cash available.If you add the$100,000 RRC Plaza dollars to that total,this is 20%of our total available funding.Why would we take an underfunded committee and allocate 20% of the total possible funding we have when we have a downtown and highway 3 corridor we want to revitalize,an industrial park we need to expand on,and we don't have a grocery store.Chair Butterfield doesn't see how spending 20%of all available EDA funding on holiday decor without a planned winter activity downtown could allow for any credibility for the EDA as a group.He feels that strongly specifically for streetscaping and holiday decor.He thinks wayfinding is okay to use some funds for.Member Carpentier doesn't like the idea of funding wayfinding unless there are ways to increase on it and make it uniform throughout the city.He doesn't want to upset the City Council.The decor needs to get done. He doesn't think we are going to catch heat for using some of our available funding for holiday decor. Member Bernhjelm said she doesn't think we should do all of the projects.We already crossed off streetscaping and she doesn't want to do a small dent in wayfinding without doing it the right way.She wants people to come to the downtown space and feel good about it this year.The banners and holiday decor would help with that and also help our businesses.We've given them facade improvement grants to help clean up the downtown. Page 6 The banners and holiday decor projects aid in continuing that.Chair Butterfield said in the past 4 months we have had multiple requests for grant funding that has exceeded the value that we budgeted for this year.We have turned businesses down and lessened the requested dollars for businesses.To him it doesn't sit great to spend dollars on projects like these when we said no to a business a couple months ago because we put a policy ceiling on annual allocation for our grant dollars. Member Carpentier said what he is hearing is not that having the holiday decor is a bad idea.Instead it is what is the proper part of the organization that should be providing funding for it.He agrees that the holiday decor is not his first choice for what we should be funding.However,he is aware that there is an expectation with this project and he isn't sure if not funding it is worth potentially losing allies and a working relationship with the City Council since we are an advisory board of the City Council.If funding this project shows we are willing to work with the City Council rather than against,it may lead to greater allocations later.He is okay spending the$28,000 on holiday decor.Member Bernhjelm said that the City Council is aware of the$100,000 dedicated to the RRC Plaza in the EDA budget and that the EDA is having discussions about how do we spend these dollars and do something.What the City Council tried to do is say here is a project we need some support on,can you help us out with it since you are already looking for ideas to fund something. Chair Butterfield feels better about the holiday decor if we look at it from the perspective that we are supporting our downtown business community who want to see the holiday decor.He also wants to see a partnership with our local businesses who want to see the holiday decor for matching funds.We could earmark half the holiday decor bid into our budget and then go out for the donations for the other half.Member Carpentier added that we have to be aware of the June 30 deadline for the holiday decor sale prices.Member Bernhjelm proposes we take the risk and simply buy the holiday decor.We then go out and work hard the rest of the year to get the back-end sponsorships.She would rather the EDA attempt to do something like that.As an EDA,we have never gone out and attempted to get a business to sponsor something that we are doing.Businesses are looking for things to sponsor.From our BR&E visit this week, one of the businesses said he was looking to sponsor something in the city that wasn't a sports activity.There are others out there. Dakota Electric is a good example.They are active members of the Dakota County Chamber. Director DiMaggio said it is going to be hard to ask some of our smaller businesses to sponsor because they have already been hit hard this past year.Member Carpentier said most of the youth sports organizations have a lot of cash right now and are possible groups to ask.Member Bernhjelm suggested an idea of asking the youth sports organizations to sponsor a banner which would draw families downtown to see one of their kids on a banner.It is a unique way to celebrate Farmington athletics. Chair Butterfield asked to run through where the discussion has led us.The holiday decor is liked by the group when in partnership with matching funds from businesses.The banners are also liked by the group when going in with the partnership/sponsorship approach.The wayfinding has soured with this committee and there are issues which aren't going to get resolved tonight.The group should focus the remainder of the conversation on what to do with the concept of banners and holiday decor. Member Hudlemeyer said we should order the holiday decor and banners,but still try and get sponsorships/partnerships.Chair Butterfield asked how would we go about a partnership approach. Member Bernhjelm stated we should split these into their individual projects.We could ask Parks&Recreation Director Omlid to engage the youth organizations Page 7 and have a conversation with them about the banner program and ask if they want to get behind the project.For the holiday decor,we can tackle it through city staff and the Dakota County Chamber.Director DiMaggio suggested her and Director Omlid could send out a joint letter asking for donations in order to maximize the return on the projects.We may not get any donations,but that is the risk you have to take.The banners conversation can come back at a later date for a funding discussion,but the holiday decor has a deadline for a decision to make tonight. Chair Butterfield summarized that the projects are looking for$18,000 for banners (50 banners at$100/each and 50 banner brackets at$260/each) and$27,744 for the holiday decor.Member Carpentier suggested trying to get sponsorship for the holiday decor first.If we get no one interested in it then we know up front that this isn't the time to be doing this activity.Member Bernhjelm said that one of the priorities the Council hasn't discussed in detail is the community engagement component. Both of these projects are great opportunities to engage the community on something.Engage the business community for sponsoring our holiday decor and youth groups for the banners.It is a good story to tell if either gets done.Chair Butterfield agrees on the community engagement part,but he still goes back to these projects being$45,000 total if we don't get any engagement.Member Bernhjelm reminded the group that we do not have to make any decision on the banner project tonight.It is something we can work on for the future.Tonight,we only need to make a budget allocation decision on the holiday decor. Chair Butterfield still goes back to how we declined businesses dollars earlier this year for about the same amount of funding and now we are going to put those dollars towards holiday decor.Member Bernhjelm looks at it from a lens of adding decor to a whole street of businesses downtown and helping all of them out by making it a better community space. Ideas were suggested of having the City Council pay for half or just having the EDA allocate funding for 50% of the project and find the other half later.Member Carpentier said that the packet was put together so we could analyze all of the possible action items,but none of these projects listed should be given to the EDA to fund.However,the EDA also needs to exist for something.The only way we are going to get to something larger is if we do some of these smaller projects designated for the group first.He feels the exact same way as Chair Butterfield about denying businesses grant dollars and lessening grant funds requested,but we can't go back in time.It was a really good discussion at the March EDA meeting,and it was hard to make those decisions,but if we open that door again it is going to be really hard to close. Member Bernhjelm said to remember that the$100,000 RRC Plaza dollars were earmarked specifically for downtown projects.These dollar requests are still doing downtown projects. She doesn't think the EDA would be misleading about funding these downtown projects when we had to say no to businesses earlier this year.As an EDA,we already have these dollars allocated within our budget for a downtown project in some scope or form.Chair Butterfield asked about reallocating the RRC Plaza dollars into the general EDA budget so they can be used for anything moving forward,not just downtown projects.MOTION by Bernhjelm,second by Carpentier to reallocate the RRC Plaza dollars in the EDA budget to the general EDA budget-cash available.APIF,MOTION CARRIED. The EDA furthered their discussion about options for potentially fundraising the holiday decor after a potential purchase.Director DiMaggio suggested purchasing the holiday decor in full but make it clear moving forward that the EDA is not funding projects like this Page 8 without a sponsorship program.Asking for donations after the purchase is too late to go asking for sponsorships and donations.She emphasized we either purchase the holiday decor in full or we move onto a new project. MOTION by Bernhjelm,second by Carpentier to have the EDA pay for the holiday lights in full.Voting for: Bernhjelm,Carpentier,Hudlemeyer.Voting against: Butterfield.MOTION CARRIED. 9. DIRECTOR'S REPORT Specialist Swift reviewed the Director's Report which included welcoming new Community Development Director Samantha DiMaggio,reviewing the BR&E visits which happened this week,and the quantity of new inquiries from business prospects. The next meeting is on July 22. 10. ADJOURN MOTION by Hudlemeyer,second by Bernhjelm to adjourn at 7:50 p.m. APIF,MOTION CARRIED. Respectfully submitted, Kalley Swift Community Development Specialist Page 9 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Samantha DiMaggio, Community Development Director SUBJECT: Amendment of the EDA By-Laws DATE: September 20, 2021 INTRODUCTION/DISCUSSION Based on the recent re-organization of the Economic Development Authority, staff has updated the EDA's By-Laws. Attached for your review is a red-lined version along with a final version of the updated By- Laws. ACTION REQUESTED The EDA is asked to approve the amended By-Laws. ATTACHMENTS: Type Description D Backup Material Red Lined EDA By-Laws D Backup Material EDA By-Laws Updated 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—Meetines SUBD. 1—Regular meetings of the Economic Development Authority shall be held on the feeFth third(34r0)MondayT uFsday of each month at 6:00-15 p.m.Any regular meeting falling upon a holiday shall be held on the pFevieas Thursday following Tuesday-at the same time and place.All meetings,including special and adjourned meetings,shall be held in the City Hall unless otherwise designated. any athef Pwa(2)membeffi of the Auiherit5',filed With*1101 EXOP-116VP—WiROPIRF.T-14P P-44-8kiliYe DiFmff Faa),also call a spe6ial meeting—N!least thFee(3)days befeFe the meeting,the Fxeeutive PiFeeter shall b meeting, shall alse pest netiee efthe fneeting and if applieable,a966,eaeh peFsAn whi;has filed an applieable fiet limited to(as allevved by Statute,sueh as)M.S.4 71.705,subd. 1 G,PaFagFaph g,"ifa per-son Fequirements efthis subdivision aFe satisfied with Fespect te that peFSOR,FegaFdl@SS efthe meihed of Emer-geney meetings may be held beeause of eirewnstanees that, judgment in the meetingthe AUtliffit)'FeqtiiFe immediate attention.The notiet,efspeeial Fneeting shall state the item(s)to be ____—AP-ted upon. ltems nat stated in the fietice may be diseussed,but no action fflay be tak@n if any Fnembef:ebjeets-. Aii),speeial meeting attended by a FAaj6rit)'Of the Atitliffit)'mefnbef:s shall be a valid fer the IF_AAS....4iAR of business!hat Fnay a befffe the.. SUBD.3—At the first regular Authority meeting in 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 astaff will serve as the SecretaryZ-mW Treasurer,__hiCh~@@a~8t Na R,.,...MAisSiAR,._. SUBD. 4 All AutheFity meetings,as defified by Siate Law, b a inteFffetation_ 1 Section Il Presidin¢Officer;Rules of Order SUBD. I—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,iadeeeFousindecorous 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—Aeendas SUBD.1—The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the c"�Thursdav 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 appeintedupointed, 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 Gomments 5) Minutes 6) Monthly Financial Statements a-- n,,.,A nutes — '-'- Formatted:Indent:Left: 3.08", No bullets or b. Monthly Statements numbering e-a. 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. 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 3 objection,the Authority shall vote upon the addition or correction.If there are no additions or corrections the minutes shall stand approved by motion If there is an objection,the Authority shall '- Formatted:Indent:First line: 0.08" vote upon the addition or correction and approve the minutes by motion as amended. Section Vl–Quorum and Voting $UBD 1–At all meetings a iority of all members shall constitute a quorum for the transaction of business. SUBD 2–The votes of members on anv 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 adiournnient—The names of those voting for acid 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 othenv*se provided by statute.a m� te ority voof the quorum shall prevail. Section VII–Executive Director The Authority may appoint and provide for annual performance reviews of an Executive Dire Section VI11–Suspension or Amendment of the By-Laws UBD. 1–These by-laws may be temporarily suspended by a unanimous vote of the members present. UBD.2–These by-laws shall not be repealed or amended except by a majority vote of die whole Authority after notice has been given at some precedingmeeting. Section IX–Effective Date SUBD. 1–These by-laws have been adopted by the Economic Development Authority n the X18! day ofl October.2021 and become effective ininiedjately. A.tte5tt EDA Executive Director EDA Chairperson Date: ..........................-... - –Date,_._......_._._......_._.____..._-... ........._...------ -- -- 4 -- Formatted:Indent:Left: 0",Right: 0",Space Before: 0 pt -- Formatted:Body Text,Indent:Left: 0" t Formatted:Space Before: 0 pt Formatted:Indent:Left: 0",Right: 0",Space Before: 0 pt _ - Formatted:Indent:Left: 0",Right: 0" al ARM swwi""''_"""':'.`` -- Formatted:Indent:Left: 0",Space Before: 0 pt Formatted:Indent:Left: 0" sYMig"V l' Fiiq Formatted:Body Text,Indent:Left: 0" t [ormatted:Space Before 0 pt Formatted:Indent:Left: 0",Space Before: 0 pt Formatted:Body Text Formatted:Space Before: 0 pt Formatted:Indent Left: 0",Space Before: Opt Formatted:Indent.Left: 0",Right 0" ' -- Formatted:Space Before: 0 pt 9mieft 1X v4w@�iw-Wow Formatted:Body Text,Indent:Left: 0" •, Formatted:Space Before: 0 pt Formatted:Indent:Left: 0",Right: 0",Space Before: 0 pt QBE Formatted:Indent:Left: 0" -- Formatted:Space Before: 0 pt Formatted:Indent:Left 0",Space Before: 0 pt,Tab stops:Not at 3.58" �t3ee��fled \ Formatted:Space Before: 0 pt Formatted:Indent:Left: 0",Tab stops:Not at 3.12"+ 3.58"+ 6.62" 5 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 third(3rd) Monday of each month at 6:15 p.m. Any regular meeting falling upon a holiday shall be held on the following Tuesday 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—At the first regular Authority meeting 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) staff will serve as the Secretary/Treasurer. 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. 1 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. Section III—Agendas SUBD. 1 —The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Thursday 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. 2 Section IV—Order Qf Business SUBD. I —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) Consent Agenda 6) Public Hearings 7) Discussion Items 8) Director's Report& Other Business 9) 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. Resolutions need not be recorded in full in the minutes if they appear in other permanent recordsof 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 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 VotinE 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. 3 Section VII—Executive Director The Authority may appoint and provide for annual performance review of the 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 20th day of September 2021 and become effective immediately. Attest: EDA Executive Director EDA Chairperson Date: Date: 4 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 moo® FarmingtonMN.gov TO: Economic Development Authority FROM: Samantha DiMaggio, Community Development Director SUBJECT: Appointment of Chair and Vice Chair DATE: September 20, 2021 INTRODUCTION/DISCUSSION Per the Economic Development By-Laws, Section 11, Sub. 1: SUBD. 1—The Chairperson shall preside at all meetings of the Authority. I n the absence of the Chairperson,the Vice-Chairperson shall preside. I n 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. ACTION REQUESTED Staff is requesting nominations and appointments for Chair and Vice-Chair to serve until 2022. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 s�V 1 Farmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: 2022 Fagade Improvement Program DATE: September 20, 2021 INTRODUCTION/DISCUSSION The EDA has funded a Downtown Fagade I mprovement Program for the past five years.(2017-2021). The grant program was created as an implementation step to reach adopted goals within the Downtown Redevelopment Program and has been highly successful. There have been 12 fagade projects in downtown Farmington these past five years which have been partially grant funded through the EDA's program.These 12 projects have resulted in $293,808.32 worth of fagade investment with an overall ratio of 2.6:1 applicant funding vs. EDA grant funding($212,330.46 applicant funds vs. $81,477.86 EDA grant funds). After the review of fagade grant applications at the March 2021 EDA meeting,the EDA expressed the desire to change the guidelines of the program for various reasons.These reasons included grant amounts being too high, no scoring or selection process available when the program was over-applied for, the program should be expanded outside of downtown, a desire to highlight minority,women,veteran, immigrant and small businesses, etc. City staff took all suggestions into account and drafted a new version of the fagade grant program which is attached for review. High level changes include: • Changing the grant program name from the Downtown Fagade I mprovement Program to the Fagade Improvement Program. • Expanding the geography of businesses eligible to apply for the program. • Addition of a map which highlights which parcels are eligible for the program. • Addition of a scorecard which can be used when the Fagade Improvement Program has more grant funding requested than grant funding available. • No more rolling applications—New hard deadlines. • Lowering grant maximums from$10,000 to$5,000,yet still allowing wiggle room if the EDA wanted to grant funding awards larger than $5,000 if the program is under-applied for. The EDA is being asked to review the new Fagade I mprovement Program guidelines and application process and provide suggestions and a discussion for any additions or modifications to the proposed program for 2022. If approved,the Fagade I mprovement Program will go into effect and start accepting applications on January 1, 2022. ACTION REQUESTED A motion needs to be made to accept the 2022 Fagade I mprovement Program as presented or with proposed amendments. ATTACHMENTS: Type Description D Exhibit Facade Improvement Program Application Draft D Exhibit Facade Improvement Program Eligible Property Map D Exhibit Facade Program Guidelines CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON O 651-28o-6800 FarmingtonMN.gov Date Submitted:_/_/2022 Facade Improvement Program Grant Application SITE ADDRESS FOR FACADE PROJECT: Applicant Information NAME: YEAR ESTABLISHED AT THIS LOCATION: CHECK ALL THAT APPLY TO YOU: MINORITY WOMAN VETERAN IMMIGRANT APPLICANT'S BUSINESS NAME (IF APPLICABLE): NUMBER OF EMPLOYEES: EMAIL: PHONE: Property Information PROPERTY OWNER(S): ADDITIONAL BUSINESSES AT THIS LOCATION&EMPLOYEE SIZE (IF MULTI-TENANT): YEAR BUILT: HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA FACADE GRANT? YES NO WHAT IS THE CURRENT CONDITION OF THE BUILDING/PROPERTY: Good(Suitable for continued use with normal maintenance) Satisfactory(Requires some updating and restoration to represent"good"conditions) Fair(Requires updating and restoration-conditions may have an impact on building operations) Poor(Requires significant updating and restoration-conditions impact building operations) Unsatisfactory(Requires major restoration or demolition due to unsafe/structurally unsound conditions) Project Information PROPOSED PROJECT DESCRIPTION TOTAL PROPOSED PROJECT COST:$ FUNDING INFORMATION: This program funds up to a maximum amount of 50% of eligible project costs (minimum 1:1 funding match).Grants typically will not exceed$5,000. REQUESTED GRANT AMOUNT:$ Application Requirements Photo(s) of current facade/areas to be improved Rendering and/or plan drawings showing proposed improvements A minimum of two contractor bids and/or proposals with a breakdown of itemized costs Proof of insurance on the building Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to assess your eligibility for financial assistance.The City will not be able to process your application without this information.The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the information that you are providing to the City is public or private.If financial assistance is provided for the project,the information submitted with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I/We have read the above statement and I/we agree to supply the information to the City with full knowledge of the matters contained in this notice. I/We certify that all statements on this application are true and correct to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification. I/We have read the Facade Improvement Program Guidelines and will abide by the rules and regulations set forth in that document. I/We understand that if approved I/we will enter into a grant agreement which further outlines my responsibilities for the project. I/We authorize City staff or other authorized representative of the City the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. I/We authorize program representatives the right to access the property for the purpose of taking photographs of the structure before and after the facade improvement project. I/We understand that I/we are responsible for obtaining appropriate permits if needed.I/we understand that all aspects of project management will be my responsibility. I/We understand that in the case of improvements that do not require a city-issued building permit,the applicant must submit the name and state license number of the contractor completing the work prior to the project occurring and agree to an inspection of the work by a city building official. I/We further understand that I/we will make the final selection of the improvements to be made with the grant funds and that the contract for improvements will be solely between me and the contractor(s).The City will not be liable for the inadequate performance of the contractor(s). Applicant Signature Property Owner Signature (If tenant is the applicant) Eligible Properties for Facade Improvement Program t w .w4rt' • 66 I f� • " on _. „.;; ■` ii " lit. (rill ■ � II 11 .r.y ..=�� .♦ �.� MAIN ST �. _ ,hY.� 213THST�WJ II l ; �q �A' \' • � � �,,��••1��;��'� -ELT �I�.. t � '� „rfi 1.•Tl�7Y•�T�1 III; s II ST SPRUCE ST.Y'`t ,. •MI r �• SP .. 'p �., '. r.�=-- -- _--��.Jt:- - H n�!1 � ., < • _ itr it = LOCUST ST q I _____ -_• _ '.� - < II G -NICKORYST: F,. q�y'y �y/ F� 74 A9HSi 11Rl ?l or 50 I----------------- , II-___ - r►I ■ 1 a 3-1111.ANTCN I If I HERITAGE a ®Farmington Boundary Eligible Property Boundary Eligible Property -CITY OF-._.. FARMINGTON FARMINGTON Facade Improvement Program Guidelines 2022 f+ 4.,. City of Farmington Facade Improvement Program Program Objectives In coordination with the EDA Workplan and city adopted plans such as the 2040 Comprehensive Plan, Downtown Redevelopment Plan and Highway 3 Corridor Plan,the EDA is offering a Fagade Improvement Program to encourage businesses to improve the curb appeal of their business.This program targets properties along MN Highway 3 and downtown Farmington and aims to help stimulate revitalization in these business areas. Eligible Properties Any business who is the property owner or lessee (with property owner's approval) within the eligibility boundary.The primary use of the property and building(s) must be for business (commercial and/or industrial). Refer to the attached map to see if your property is eligible. If you are unsure if you are located in eligibility zone or if your property qualifies for this program,please contact city staff who will assist you. Eligible Improvements Facade improvement grants can help finance a variety of exterior facade improvements (cosmetic and/or structural) for properties.These improvements must be visible from public streets and sidewalks and include,but are not limited to: • Accessibility improvements • Permanent patios • Art or murals • Repair and restoration of windows • Awnings,canopies or marquees and doors • Building entrance improvements • Restoration of exterior finishes and • Decorative fencing materials • Dumpster enclosures • Signage • Exterior lighting • Utility screening • Exterior paint and re-siding • Other improvements similar in • Masonry repairs and tuckpointing nature to the above—contact city • Permanent landscape staff with questions on eligibility. improvements Past Facade Grant Project Example a Facade Improvement Program Funding The EDA utilizes$20,000 of its annual operating budget to fund the Facade Improvement Program and will contribute up to a maximum of 50%of eligible project costs. Grants typically will not exceed$5,000.Only one grant approval is allowed per year per property. All grants require a minimum 1:1 funding match from the applicant. This is a reimbursement program.You must complete and pay for the facade project in full before you will be issued a reimbursement check.All program requirements must be met and the applicant must provide a receipt of evidence of paid invoice(s) before a reimbursement check is issued. Ineligible Activities and Improvements The following activities are not eligible for Facade Improvement grant financing: • Improvements in progress or completed prior to program acceptance and grant agreement execution. • Improvements to the interior of a building or exterior improvement not visible from public streets and/or sidewalks. • Improvements to non-business buildings and properties. • Roofing, HVAC, etc.-please see our Redevelopment and Property Reinvestment Program if interested in these types of projects. • Billboards,banners or roof signs. • Any project which does not comply with City Code. • Any project which is deemed ineligible by city staff or the EDA. Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review that is determined eligible for designation or is a heritage landmark property will be reviewed as outlined in city code to receive a Certificate of Appropriateness.This requires additional Planning Commission review for the fagade project. Grant Terms &Requirements If approved,a grant agreement will be executed between the applicant and the City of Farmington outlining all requirements which must be met by the applicant before funding is released.Once the grant agreement is executed,the applicant has 90 days to begin the project. The project must be completed by December 31,2022. If construction work does not begin within 90 days of the grant agreement execution,the grant agreement is null and void.The applicant may apply for one extension if necessary which will be reviewed on a case-by-case basis. Data Privacy All information provided by applicants under the Downtown Facade Improvement Program shall be maintained in accordance with the Minnesota Data Practices Act. Fagade Improvement Program 3 Permits All improvements must obtain any required approvals and/or permits.All construction management is your responsibility. Grant Approval Process Step One: Be sure you meet program requirements • Check to see if your property is located in the eligible program district.The property must be used for business purposes. • The property is up-to-date on all property taxes and is in good standing with the city. • This is a reimbursement program.You must complete and pay for the facade project in full before the EDA will issue a reimbursement check.All program requirements must be met before reimbursement is issued. Step Two: Contact Community Development city staff with any questions you have before applying for the program. Possible project discussion can occur over the phone, email, virtually, or in-person.Community Development staff can be reached at 651-280-6800. • Properties which are a designated historic property may require Planning Commission review and approval for a facade project before a grant can be approved. Step Three: Submit a completed Facade Improvement Program Application. A completed application includes: • Filled-out application • Photo(s) of current fagade/areas to be improved • Rendering and/or plan drawings showing proposed improvement • Contractor bids (minimum two) • Proof of insurance on the building to be improved Step Four:Application review and grant selection. Completed applications will be accepted from January 1, 2022—March 31,2022.All applications must be submitted no later than 4:30 p.m.on March 31.The EDA will award grants at their April 2022 Regular EDA Meeting. Applications competing for funding will be graded and selected based on the scores received. Please reference scoring criteria to review how facade projects will be graded if applications exceed available funding.The EDA reserves the right to approve or reject projects on a case-by- case basis taking into consideration established policies,project criteria and facade program demand. Meeting program criteria does not guarantee the award of business assistance to the project.Approval or denial of any project does not set a precedent for approval or denial of another project. Facade Improvement Program 4 Scoring System 1 2 3 4 5 Rationale Older buildings will have older fagades. Age of Building <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years This criteria aims to support business ) ) ) ) ) g community Built Since 1992 Built 1991-1962 Built 1961-1932 Built 1931-1902 Built Before 1902 in older buildings the communi as well as business retention efforts. Statisically,smaller businesses have less cash buffer than larger businesses. Business Size 51+Employees 26-50 Employees 11-25 Employees 6-10 Employees 5 or Fewer This criteria aims to stablize the ability Employees for all businesses to complete fagade projects. The higher the ratio of private Total Cost of the <$5,000 $5,001-$10,000 $10,001-$15,000 $15,001-$20,000 $20,001+ investment vs.public grant dollar Project investment,the higher the scoring will be. Unsatisfactorv: Requires major Poor:Requires Fair:Requires Buildings which need larger repairs significant updating updating and Satisfactory:Requires and projects beyond fagade should be restoration or Good:Suitable for Current Conditions or restoration. restoration. some restoration to completed first prior to facade demolition due to continued use with of the Building Conditions adversely Conditions may have represent"good" improvements.This program is not unsafe and/or impacts building an impact on condition. normal maintenance. intended to be an aesthetic band-aid structurally unsound operations. building operations. to a building with poor conditions. conditions. Statisically,M/W/V/I businesses have Minority,Women, less cash buffer than other businesses. Veteran and/or No M/W/V/I Ownership is Immigrant Ownership M/W/V/I This criteria aims to stabilize the ability Ownership for all businesses to complete fagade projects. Is the Business Businesses with higher foot traffic Public Facing?(e.g, from the public benefit from an Retail,Food, No Yes attractive,aesthetically appealing Medical,etc.) storefront. EDA grant programs intend to be accessible to all businesses in the Have You Received eligible program areas.Preference will an EDA Facade Yes No be given to those businesses who have Grant Previously? not previously received fagade funding which will be reflected within the scoring rubric. /35 Points CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Samantha DiMaggio, Community Development Director SUBJECT: SourceLink Activity Report DATE: September 20, 2021 INTRODUCTION[DISCUSSION Please see the attached activity report generated by SourceLink. ACTION REQUESTED Please review and ask any questions you may have about the activities report. ATTACHMENTS: Type Description © Exhibit August SourceLink Report Activity Overview for City of Farmington MN 7/1/2021 -8/30/2021 Incoming Requests Count Follow 0' Count SuNeys Completed Count =. Email 40 Follow-up 1 Paper 0 Initial-Email 2 Follow-up:30 Day 1 Email 0 Initial-Mailing 9 2 0 Initial-Networking 1 Meeting 3 Phone Call 1 Total Incoming Requests i 56 Total for All Typesi 60 New Measurable Clients i 0 Top 10 Assistance Requested i Total: 47 Client Status i Total: 22 Ass[stance Type Count Status gGount Site Location Assistance 25 Active Client 19 Strategic Planning Assistance 9 No Response 2 Non-profit Issues 6 Past Client(inactive) 1 Startup Assistance 3 Total: 22 Marketing/Sales 2 Customer Relations 1 Equity Investment 1 Total: 47 Referred To Total:3 Referral Category Rec �v�ng Organization' count Mentor/Consultant City of Farmington 1 Mentor/Consultant Metropolitan Consortium of Community Developers(MCCD) 1 No Response W.Paul Often 1 Total:3 Followup Results 2 Caego _< Count No Response 2 2 Report RF315 Wednesday,September 15,20212:22 PM Page 1 of 2