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Home My WebLink About03.23.09 EDA Packet AGENDA ECONOMIC DEVELOPMENT AUTHORITY March 23, 2009 -7:00 p.m. Chair Christy Jo Fogarty 1. Call Meeting to Order 2. Pledge of Allegiance 3. Approve Agenda (7:00 D.m.) Authority Members Vice-Chair Steve Wilson 4. Citizens CommentslPresentations a. Peter Dugan, CB Richard Ellis (A licensed Real Estate Broker specific to retail and restaurants will provide a brief presentation on retail and the importance of the "site".) b. S1. Paul Pioneer Press, March 14th Article, Plan for Eagan's Cedar Grove mixed-use project lacks retail Terry Donnelly Mayor Todd Larson Julie May Peter Herlofsky City Administrator 5. Consent Agenda (see attached) a. January 26, 2009 Minutes b. Bills (Jan. 20 - March 19,2009) c. Budget Details d. Expressive Embroidery, Annual Rent Increase e. Commercial Property Value Spreadsheet f. Farmers' Market Lease -109 Spruce Street g. Request to use McVicker Property City Staff ReDresentatives Tina Hansmeier Economic Development Specialist 6. Public Hearings (None) Cindy Muller Executive Assistant 7. Continued Business a. Business Development Grant i. Applicant - Farmington Truck Center ii. Response to Request for Information - CDA b. Farmers' Market Update c. Industrial Park Expansion Project Update d. Business Subsidy Policy (Attorney McDowell-Poehler) e. Park & Rec Building Update 430 Third Street Farmington, MN 55024 Phone: 651.280.6800 http://www.cLfarmington.mn.us 8. New Business a. Certificate of Completion, LSI Holdings I, LLC b. Economic Growth Committee Meeting Request c. MN Real Estate Journal Marketing Opportunity 9. City Staff Reports, see attached a. Economic Update, volume 20 b. Business Closed or Relocated, 2004-2008 10. Adjourn The Farmington EDA's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment. j<:\I-rR,~\-FDA\BCj.j,RD ,AGFt~DAS\2009 Roard ),~'::n(L:iS" ,)\.'lcfnos &. SU1n!n:':Tic:;\(l3230Y\(I:~,2:'1,09 FDA A~('r~da.doc Plan for Eagan's Cedar Grove mixed-use project lacks retail - TwinCities.com Page 1 of2 winCitiesecom Plan for Eagan's Cedar Grove mixed-use project lacks retail Developers: Housing must come first By Frederick Melo fmelo@pioneerpress.com Updated: 03/14/2009 10:57:52 PM COT MENDOlA :-..-~ HEIGHTS! i @-.~~_._~.~! ~ l~", ~ i~1- ~. 'acg Cedar !~~ ..... Grove I !Ii ;:a, . -:~~n. I' Z I ,... ""J'O". "" .~ ~ i EACAN rW U,-..,. .... /........-.---1-1... D. ~K"O. f'.A. ".' ~.. r:nl71'" APPLE. 1 COUNTY . . L!!.I VALLEY I i I. .- PIONEER PRESS Something is noticeably missing from plans for Eagan's new housing and commercial corridor, and that's commerce. The city's vision for a walkable new downtown is beginning to take shape - at least on paper- though the heavy amount of rental housing and lack of retail in the first phase of the new Cedar Grove concept plan has raised some questions among proponents. <Ii; "I would call it dramatic ... it's a change, and with the economy what it is, you kind of have to go with what will work," City Council Member Cyndee Fields said. Developers say the concept plan, which calls for 400 market-rate and senior apartments but little in the way of new businesses, is a sign of the country's difficult economic climate. They hope to begin construction by fall. The new neighborhood, spanning 50 acres in and around the now-demolished Cedarvale Shopping Center, had been envisioned as a "gateway" corridor of homes, shops and offices at the western end of the city, off the intersection of Minnesota Highways 77 and 13. The city has spent several years and more than $38 million acquiring about 50 properties and making street improvements. On Tuesday night, developers Kelly Doran of Doran Properties and Leonard Pratt of Pratt Homes presented the city council with an illustration of the potential district. The 29-acre western portion was left gray and marked "future development phase." The eastern 21 acres bisected by Rahn Road could include a 160-room hotel with an adjoining eatery, the existing Jensen's Supper Club and Cedarvale Bowl, a day care, a credit union, 250 units of market-rate apartments in two three-story buildings, and 150 units of senior housing, including independent-living and assisted-living quarters. It would also include new and existing parking areas. Previous plans had called for dozens of cottage- style single-family homes, open space and a possible amphitheater. The area would be bounded by Cedar Grove http://www.twincities.com/dakotalci_11912925 aswancn ~ .. a ~ MODIFY YOUR MORTGAGE YOURSELF A COMPLETE STEP BY STEP GUJDE Visit GetYourLoanModDVD.com Nowl Print Powered By [ttrf2rrYlc:t9Y02m~~() 3/19/2009 Plan for Eagan's Cedar Grove mixed-use project lacks retail - TwinCities.com Page 2 of2 TwinCitiesecom Boulevard to the north and Cedar Grove Parkway to the south. At the west end of the site, a new park- and-ride lot and bus station connected to the Cedar Avenue Bus Rapid Transit route is planned for the fall. Said Fields: "We have a large concentration of people here, and I don't see any retail that will sustain the concentration of people. ... They're going to be driving to get to the laundry or the grocery store." Mayor Mike Maguire questioned why 20 percent of the residences had not been designated as affordable housing, as previously envisioned, and asked if the new plan is pedestrian-friendly and has enough green space. Doran said, given the current economic climate, it would be unrealistic to find financing for retail establishments in the first phase, but a critical mass of residential properties could help draw businesses in the second phase. He called the plan "achievable and sustainable." The city owns the majority of the 50 acres, which are not generating as much tax revenue as they would if they were fully developed. Pratt said some of the senior-living residences could be designated as affordable or low-income housing. The developers said the other residences would have to be market-rate to qualify for the type of federally guaranteed HUD loans they hope to receive. Community Development Director Jon Hohenstein said if the plan receives financing and survives the council's scrutiny, construction could begin in late summer or early fall. The city council will approve or reject the concept plan during a meeting of the Economic Development Authority on Monday night. . "We'll stand our ground, and the developer will stand theirs, and (through that), we'll get a good product," Maguire said. The owners of Competition Engines, Larson Automotive and a U-Haul property remain in a legal battle with the city, contesting the city's efforts to acquire their properties by eminent domain. The Minnesota Court of Appeals heard arguments in their case Feb. 19 and has 90 days from then to make its decision. Doran said the concept plan had been designed so construction could begin without them, and the plan's first phase would not be affected by the litigation. Frederick Melo can be reached at 651-228-2172. http://www.twincities.com/dakota/ci_11912925 assat~cn <MI. . a cr!J ~l MODIFY YOUR MORTGAGE YOURSELF A COMPLETE STEP BY STEP GUIDE Vfsit GetYourLoanModDVD,com Nowl Print Powered By C~IE9?rnati2y~.~ 3/19/2009 5a.... MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting January 26, 2009 1. Call Meeting to Order The meeting was called to order by Mayor Larson at 7:00 p.m. Members Present: May, Fogarty, Wilson, Larson, Donnelly Members Absent: None Also Present: Tina Hansmeier - Economic Development Specialist, Lisa Dargis - Administrative Assistant, Peter Herlofsky Jr. - City Administrator, Jeff Thelen - EGC, Ruthe Batulis - EGC, Ann Carlon - EGC, Doug Bonar - EGC, Lee Mann - Bonestroo, Bruce Maus - Grubb & Ellis, Harvey Snyder 2. Pledge of Allegiance 3. Approve Agenda MOTION by Fogarty, second by Wilson to approve the agenda. APIF, MOTION CARRIED. Procedural Matters i. Election of Officers MOTION by Larson, second by Donnelly to elect Member Fogarty as Chair. APIF, MOTION CARRIED. MOTION by Larson, second by May to elect Member Wilson as Vice-Chair. APIF, MOTION CARRIED. 11. Adoption of By-Laws MOTION by Larson second by Wilson to approve the By-Laws. APIF, MOTION CARRIED. iii. Official Newspaper MOTION by Wilson, second by Larson to approve the Farmington Independent as the official newspaper. APIF, MOTION CARRIED. iv. Meeting Schedule The members agreed to keep the meeting schedule the same. 4. Citizen's Comments/Presentations 5. Consent Agenda a. November 24, 2008 Minutes b. Bills (November 24-December 31, 2008) c. Bills (January 1-19,2009) MOTION by Larson, second by Wilson to approve the consent agenda. APIF, MOTION CARRIED. 6. Public Hearings None EDA Minutes January 26, 2009 Page 2 7. Unfinished Business a. Industrial Park Expansion Update Mr. Lee Mann and Mr. Bruce Maus (consultants) were present to discuss the industrial park expansion process. They provided updated information about the scope of their services and estimated costs for Phase 2 of the project. There was discussion ofthis topic at the Economic Growth Committee (EGC) meeting earlier in the day. Mr. Jeff Thelen asked what point the consultants are at in the process right now. He also asked why the City of Farmington is planning to do the engineering work for the site when they do not own the property. He asked if the City had plans to eventually own the property or if they were planning to have a private developer take over the project. Mr. Harvey Snyder stated that he was involved with the development of the existing industrial park. He stated that the property owner, Mr. Babe Murphy, handled much of the development process himself. The City of Farmington helped to market the sites. The City did cover most of the infrastructure costs up front and then assess them to the properties. He stated that there was also tax increment financing used. Mr. Maus stated that the primary question is whether the City wants to own the industrial park land or not own the land; he also stated that there are pros and cons for either option. He stated that the ownership of industrial parks is usually one of three different forms. One form is private party ownership with cooperation between the private party and the municipality as to the long term project goals. Another form is a local business group or non-profit organization whose primary purpose is economic development and creating new jobs in the community. The third form is when the municipality becomes directly involved and acquires the land and puts some of the public improvements in. He stated that any of those methods can work in Farmington, but what is really critical is whatever approach is taken, what is most important is to have some form of control. Without any control of the land prices the costs may increase based upon the potential buyer and offers may be lost. If the City owns the land then they can convey the land at the development price, they can set standards for development in the park. All three of the development approaches can offer some form of control. Mr. Snyder stated that the private sector has been used previously in Farmington and was successful. Mr. Maus stated that the EDA may want to consider criteria to determine what approach to use. He stated that a criterion such as job creation is often considered, although he would suggest emphasizing creation of wealth and investment instead. Companies that make more of an investment in a community are more permanent and typically offer jobs that may pay more. The other reason that the City may want control is to manage density so that there are options for companies that want to expand in the future. Tax base is usually at the top of the list for reasons to want control of the land. Some communities will make their design requirements too cheap or too cost prohibitive. The community needs to decide how it wants to define the design EDA Minutes January 26,2009 Page 3 requirements based upon their development goals. Mr. Maus also stated that businesses that are compatible to companies already in the community are potentially good options for recruitment. Member Donnelly asked if the consultants would be making recommendations as to the strategy for the City to utilize to control the land in addition to the concept layout. Mr. Mann stated that the product that this Phase will provide is a concept layout and estimated infrastructure costs. There will also be estimated costs of land included as well but the primary focus is on the infrastructure costs. There will be several meetings to make certain that City staff and the consultants are on the same page and to update the EDA. The process can be modified if the EDA so desires. Chair Fogarty asked if part of this Phase would be recommendation regarding how the City can best lock down land prices. Mr. Mann stated that that would be included in the next Phase. Mr. Maus stated that there are many ways to work out the land control portion that might include contracts or agreements with the property owners rather than outright purchase of the land. Chair Fogarty asked if the total developable acres would be determined in Phase 2 of the process. The consultants stated that some of that analysis has already been done as part of the comprehensive plan update process. Mr. Mann stated that the developable acres have been estimated at 297.83 acres. Member May asked how much has been spent on this project so far. She stated that she would also like more information on Phase I before making the decision to move forward. Staff stated that the amount that has been spent so far is about $6,500. Mr. Mann provided a summary of the results of the conversations that took place with the property owners when he met with them last fall. He stated that Mr. Wurdemann and Mr. Huber both indicated a very strong desire to move forward as soon as possible. They are very interested in having their property developed and are very willing to work with the City. They are concerned about the costs of infrastructure and how that would be split but would like to move forward as soon as possible. Mr. Murphy indicated that he is very willing to work with the City of Farmington. He did not appear quite as motivated, but did say that if there is a good plan he is interested. The Devneys did indicate that their first preference would be that their land on the east side of Pilot Knob Road be developed before the land on the west side of Pilot Knob. They did say that if everyone else is willing to develop, they would be willing to work with the City if the road needed to go in across their property but they would rather see the piece to the east develop first. The general consensus was that if the City wanted to move forward with the industrial park expansion, there would be cooperation from all of the property owners. All of the property owners expressed concern about the assessments. The owners were all aware that the intended use for the property would be industrial. The Devneys asked if the commercial area along Pilot Knob Road could be expanded to the north if that would make sense, but they did understand that the use would be industrial. EDA Minutes January 26,2009 Page 4 Member Larson asked if anyone has been calling regarding the land on the east side of Pilot Knob. Staff stated that there is about 13 acres available. There have not really been any inquiries for lots of that size. There is a 2.5 acres site that is platted that is owned by Mr. Regan and the Devneys' property is about 11 acres that is unplatted. Staff has received inquiries primarily for larger parcels. Member Donnelly asked if there was any sort of cost recovery tool that could be used for the planning costs. City attorney Poehler stated that this type of investment could not generally just be assessed to the properties unless the City entered into a public improvement special assessment agreement for these costs. She stated that for this amount she would not recommend that. Member May asked if there had been any indication from the property owners regarding timing of development. Mr. Mann stated that the three property owners that were most willing would be willing to start discussions with the City at any time. Member Wilson stated that the development environment has changed quite a bit during his time on the City Council. He asked what the current 3-5 year market potential is in Farmington. He stated that he fears moving ahead with any sort of major investment in an industrial park if the development potential isn't there right now. Mr. Maus stated that Phase 2 is intended to show how the industrial park could be laid out in the most efficient manner, which would use the least amount of resources, and serve the most amount of property. It will determine the optimal place to start with the least amount of investment. He said it is difficult to plan halfway. The market can be influenced by the economy, neighboring communities and land prices. He stated that Farmington is in a good position to capture industrial development when the next surge of growth occurs. The timing would be difficult to determine. City Administrator Herlofsky asked what the shelf life would be for the Phase 2 concept layouts. Mr. Mann stated that adjustment for changes in construction costs could be made that would enable the plan to be used for a long time. Member Wilson stated that he is concerned that control of the land and setting the price could potentially work against the City as well. He stated that he feels we are trying to force premature development. He stated that he does feel that the City should be a partner in the infrastructure costs, but to what level would need to be determined. He does not feel that there has been sufficient planning for what they want this to look like. Chair Fogarty stated that she feels this is the beginning of the plan. She stated that she knows there is a tremendous amount of pressure on the City Council to get more industrial and commercial development in the community to balance the tax base. She stated that Farmington is not going to get a lot of retail any time soon and the market study said that industrial development is the best bet. She said that the EDA needs to prepare for it. She feels this is an investment in the community. EDA Minutes January 26,2009 Page 5 Member Donnelly stated that he feels this is planning and preparing for future growth and that will be important. He said that it is a reasonable expense. He stated that the options are to do nothing or to do something. Member May asked why the work could not be done in house rather than through a consultant. Chair Fogarty stated that the previous EDA did not feel like there was the expertise available in house to do this the best way it could be done. City Administrator Herlofsky stated that we have heard over and over again to hire good specialists to do the work. Mr. Maus stated that staff has made it very clear that staff is to do as much of the work as possible. The best way for the development growth to take place is to have industrial growth that will consequently spur retail growth. Member May stated that she would prefer to see more of the work handled by staff rather than consultants. Member Larson asked if the City was going to invest in putting in infrastructure, how long it may take to start recovering some of that investment. Staff stated that there is really no way to determine that. Mr. Maus stated that it would most likely be in the 3 to 5 year range. Member Larson asked if larger sites would potentially be developed more quickly than the smaller sites available now. Mr. Maus stated that having larger sites available provides more options and may generate more interest. Mr. Jeff Thelen asked ifthere was any other industrial land available in the City. Staff stated that there is not, there is only B-3 heavy business in other areas ofthe community. Mr. Maus stated that there is a Shovel Ready Program through the State of Minnesota to promote sites that are available and ready to develop with the infrastructure already in. Chair Fogarty stated that she would like to have a program similar to what is available in Oakdale that expedites the development process. Staff will look into that program and bring more information back. Member Wilson stated that he would like to know what the cost recovery has been over the last 20-30 years for the investment in the existing industrial park. City Administrator Herlofsky stated that the Finance Director is working on putting those figures together. Member Wilson stated that he felt that having Mr. Mann involved was a good choice because of the relationships that he has with the land owners. He stated that he is not as concerned about the Phase 2 costs, but there is significant investment required in this project if moving forward, that will inevitably impact taxpayers. Member Donnelly stated that this phase is just the concept planning and it will be difficult to make any decisions without the planning done. The decision tonight does not require the City to acquire the land or commit to moving forward. MOTION by Wilson, second by Larson to approve hiring the project consultants to conduct Phase 2 as identified on Exhibits B & C. VOTED FOR: Larson, Donnelly, Fogarty, Wilson, VOTED AGAINST: May. MOTION CARRIED. EDA Minutes January 26, 2009 Page 6 b. Partners in Progress Grant Staff is providing recommendations for use of the grant funds for 2009. A portion of the funding will be used for marketing costs associated with the farmers' market and a portion will fund general economic development marketing activities. Staff also provided information regarding the upcoming Partners in Progress Event. c. Farmers' Market Staff was previously directed by the EDA to research the details of establishing a local farmers' market to draw additional traffic to the downtown. Information was presented regarding a choice of location and costs associated with hosting the market. Staff recommended the former Lampert's Lumber site as the location for the market and Thursdays from 3:00-7:00 p.m. for the market day and time. Chair Fogarty stated that she would like staff to create a flyer to announce the upcoming market at the Farmington Expo. Member Wilson stated that he would be willing to attend the market to speak with market visitors and help to market the City. Staff will be working with the downtown businesses to coordinate events and business hours to maximize the additional traffic. The first year the products allowed would be restricted to home produced food items and home grown produce and plants. Member May asked if staff had considered restricting the market to only organic products. Staff will look into the availability of organic vendors in the area. Member Larson asked if we would be allowing downtown businesses to have booths. Staff stated that there will be one or two "business nights" during the season at which local businesses will be able to have booth space. Member May stated that she would like to have the focus of promotions be more on promoting business in Farmington, rather than just promoting the downtown. Mr. Doug Bonar stated that he feels that there should be other events offered in other portions of the City as well. He stated that the municipal center would also be an appropriate location and would not favor any particular business area. Member Donnelly asked what effect the train will have on the Lampert's location. Staffwould need to get the schedule for the trains from the Police Department. Chair Fogarty stated that she would prefer to not use the former City Hall or American Legion sites, but excluding those sites, she would be comfortable leaving the choice of location up to staff. MOTION by Wilson, second by May to approve the budget and leave the downtown location choice to staffs discretion. APIF, MOTION CARRIED. d. Downtown Advertising Sign This item has been continued from the last EDA meeting. Responses have been received to the request for proposals for replacement of the Downtown Business Advertising Sign. If the sign were replaced there would be a requirement for a text amendment to the City Code to allow this type of off premise advertising and City events sign. Staff has provided recommended fees for rental of advertising space. The City Attorney stated that if the sign is opened up to use by non-City advertising there is now way to set EDA Minutes January 26,2009 Page 7 restrictions on who may use the sign or what they put on the sign per the First Amendment. There would need to be a good sign policy in place, but there is no way to completely prevent undesirable advertising. Member Wilson asked if there was any indication how much revenue the sign would generate. Staff stated that it would depend on the price charged for rental space and the number of advertisers utilizing the sign. Member Wilson asked if there was the potential to replace the sign and then sell it to another entity to run. The City Attorney stated that this would be an off premise advertising sign and if it were not a City sign it would then be in conflict with the sign code. City attorney Poehler stated that if the commercial advertising piece were taken out of the equation, it would remove many of the issues with the sign. Member May stated that the Rotary had previously looked at this item and had gone through many of these same discussions, and opted not to move forward with the project. She stated that she feels it should be located on the north side ofthe community. There have been several attempts to create a community events sign in the past. Chair Fogarty stated that she would prefer to have the existing sign taken down. She stated that she does not feel that the site of the exiting sign is the best location either. Member Larson stated that he would like to see an LED on the corner of 19Sth Street and Pilot Knob Road. The EDA members agreed that they would like to see the old sign tom down at the end of the summer. They would also like to wait until the extension of 19Sth Street is completed to determine an alternate location for a new City Event sign. Staff will determine the cost for demolition of the sign. e. Business Development Grant Revisions Staff has recommended modifications to the Business Development Grant Program. The EDA had indicated a desire for a form of recourse to be included in the program in the event that the business receiving funding was to leave the City. Per discussion with the City Attorney, there are two options for recourse. One option would be to require a lien against the property which is not realistic based upon the grant amounts. There would also be costs associated with preparing the lien that would be cost prohibitive. The second option is to include a provision that if the recipient were to leave town within three years, it would trigger repayment. This option would require the City to pursue the enforcement of the provision through the courts system. Staff is recommending adding the second provision requiring that the recipient not move their business outside the community for a period of three years. Staff is also recommending changing the verbiage referring to the McVicker Property to EDA owned property as a housekeeping item. MOTION by Larson, second by Wilson to approve the recommended changes to the grant program. APIF, MOTION CARRIED. f. Business Development Grant Agreements i. Anna's Bananas ii. Vinge Tile and Stone The grant agreements for Anna's Bananas Daycare and Preschool and Vinge Tile and Stone have been prepared. MOTION by Wilson, second by May to approve both grant agreements. APIF, MOTION CARRIED. EDA Minutes January 26, 2009 Page 8 8. New Business a. Park & Rec. Building, 308 Elm St. The building that formally housed City Vehicles, commonly referred to as the Park & Rec. Garage, is now vacant. The building is in a state of disrepair and the property is now listed as available for purchase for redevelopment. Staff is recommending demolishing the building on the site to make it more appealing to potential buyers. Two parties have expressed interest in purchasing the property. A large reduction in the sale price for the property will be considered a business subsidy per the City's policy. If the building on site is demolished, the property could be sold for the land value, which is significantly less that the county's current value for land and building. Member May asked if we could have the building appraised to verify the actual market value for the property as is. Member Wilson asked if the Frontier building could be relocated to redevelop the block. The adjacent building that is owned by Frontier Communications houses equipment that makes it cost prohibitive to redevelop the block to the east of the Park & Rec. building. Mr. Doug Bonar asked what would need to be done to the building to make it leaseable property. Chair Fogarty asked if we have questioned the county about the estimated value that they have put on the property. Mr. Snyder stated that staff could research how much income could be generated from the building if it were leased out. Staff will contact the county assessor's office and if necessary contact an appraiser to get an appraisal done on the property. Staffwill also explore the other options for the property such as making improvements to the building and bring the information to the next meeting. Staff was directed to respond to inquiries on the property with the county's value as the price to purchase the parcel in the interim. b. Economic Update Distribution At the last meeting the EDA asked for information regarding the distribution options for the Economic Update. Staff has provided information regarding the current distribution of the publication as well as options for additional distribution methods. Chair Fogarty asked how much it would cost to insert the Economic Update into The Bridge. Staff stated that there would be additional cost. Chair Fogarty stated that she would like to see the business highlights distributed more widely. She said that she would like to maintain the layout. Staff stated that a page of the Update could be added into The Bridge. Staff stated that another way to highlight businesses is to have a spotlight on business program incorporated as part of the City Council meetings. Member May asked how much it would be to inset the publication into the This Week News. Staff will look into costs for insertion in The Bridge and the This Week News. 9. City Staff Reports a. EconomicUpdate, Volume 18 Information received. EDA Minutes January 26,2009 Page 9 b. Summary of New Businesses, 2004-2008 Information received. c. Summary of Closed Businesses, 2004-2008 Information received. Members May and Wilson asked if the reasons that the businesses closed or left are known. Staff provided a verbal update on the reasons that they are aware of. Staff will also email the information to the members. 10. 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T'" z o 1ii z If l;j '" is ;S" c :if ,2 S Do ~ en ~i ..J en B;:::I ::J ~~'~~: t= 'Ci) ~ CD ~ ~a11O~.E'- C.... C).....-! 35&:38~o N'f"'C")OOO OOOl.C)I'N !il;g;g;g;g;! ~ ~ ~ 5~ '" ~ o o N .. co N '" ai '" .. ~ i '" .. ~ ~ .. ~ ! .. .... 1! ~ .. .... 1! a .. .... 1! a .. ~ a ~ a ~ a ~ ~ .. '" '" ... on '" .... 1! a .. ~ o ri .. ~ ~ .. '" '" co ai '" N j J .. g ~ i -ll " ! ~ ~ :ll 1!i w i I ii'i i i h .!I 0 q ~~ :::! ;; s~ idl scl City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Expressive Embroidery, Annual Rent Increase DATE: March 23, 2009 INTRODUCTION Expressive Embroidery entered into a Lease Agreement with the EDA on April 15, 2008, to rent the building located at 305 3rd Street. According to the terms of this Agreement, the annual base rent will increase yearly for the remainder of the lease term which is set to expire on March 31,2011. Subsequently, the Landlord is responsible for communicating all rent increases to the Tenant. DISCUSSION The Lease Agreement between Expressive Embroidery, Inc. and the Economic Development Authority outlines the process for the annual increase in the base rent. According to the formula this results in an increase of 5.3% bringing the annual payment to $12,880.30. Beginning April 15, 2009, the monthly rate due will be $1,073.36. Attached for your information is a copy of the letter sent to the business owners communicating the increase in rent. Attached to the letter is the relevant portion of the Lease Agreement outlining the process for the yearly adjustment to the base rent. RECOMMENDATION This item is for your information only. Respectfully submitted, /' . (/t.,1terbzlf;,rnClf V Tina Hansmeier, Economic Development Specialist City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us March 6, 2009 Mark & Cindy Bubbers Expressive Embroidery, Inc. 305 Third Street Farmington, MN 55024 Dear Mark & Cindy: The Lease Agreement between Expressive Embroidery, Inc. and the Economic Development Authority outlines the process for an annual increase in the base rent. According to the formula this results in an increase of 5.3% bringing the annual payment to $12,880.30. The monthly rate will be $1,073.36 from April 15, 2009 to March 15, 2010. I have attached this portion of the Lease Agreement for your convenience. If you have any questions, please let me know. Sincerely, ~ . ' '~0~tttCQ Tina Hansmeier Economic Development Specialist Enc. COlllmDevffinaJExp Embroidery conditioning system; cleaning services; tools and supplies; landscape maintenance costs; building security services; license and permit fees; building management fees; and in general all other costs and expenses which would, under generally accepted accounting principles, be regarded as operating and maintenance costs and expenses. (b) Base Rent. During the first year of the Lease, Tenant shall pay to Landlord during the Lease Term rent at the annual rate of Eight Dollars ($8.00) per rentable square foot per annum for a total of Twelve Thousand Two Hundred Thirty-Two and No/100 Dollars ($12,232.00) per annum, hereinafter referred to as the "Base Rent." The Base Rent is payable in equal monthly installments of One Thousand Nineteen and Noll 00 Dollars ($ 1,019.00) in advance, on or before the first day of each and every month throughout the Term; provided, however, that if the Commencement Date shall be a day other than the first day of a calendar month or the Expiration Date shall be a day other than the last day of a calendar month, the Base Rent installment for such first or last fractional month shall be pro- rated accordingly. (c) Adjustments to Base Rent. For each year of the Lease thereafter, the new annual base rent shall be the previous annual base rent of the previous year plus an amount equal to the increase in the Consumer Price Index ("CPI") as provided. below. The Base Rent shall never be decreased. The CPI shall mean the "Consumer Price Index for All Urban Consumers, All Cities, All Items (1984 = 100)" as published by the United. States Department of Labor, Bureau of Labor Statistics or, if such index shall be discontinued, the successor index thereto or, if there shall be no successor index, such comparable index as shall be mutually agreed upon by the parties. To determine the annual rental increase to be paid by Tenant, the annual rental for the previous year shall be multiplied by a percentage figure, computed from a fraction, the numerator of which shall be the CPI for the third quarter of the preceding year and the denominator of which shall be the CPI for the corresponding quarter of one year earlier. Such fraction shall be converted to a percentage equivalent. The resulting percentage figure shall be multiplied by the previous years Rent. Landlord shall be responsible for communicating all Rent increases to Tenant. (d) Tenant's obligation to pay the Base Rent is a separate and independent covenant and obligation. Tenant shall pay all Base Rent and other sums of money as shall become due from and payable by Tenant to Landlord under this Lease at the times and in the manner provided herein, without abatement and without notice, demand, set-off or counterclaim. Throughout the term of this Lease Tenant shall pay the following: (c) Operating Expenses. Tenant shall pay all Operating Expenses when due. (d) Service Charge. Tenant's failure to make any monetary payment required of Tenant hereunder within five (5) days of the due date therefore shall result in the imposition of a service charge for such late payment in the amount often percent (10%) of the amount due. In addition, any sum not paid within thirty (30) days of the due date therefore shall bear interest at a rate equal to the greater of eighteen percent (18%) or the prime rate plus two percent (2%) per annum (or such lesser percentage as may be the maximum amount permitted by law) from the date due until paid. 4. SECURITY DEPOSIT (a) Tenant has deposited with Landlord the sum of One Thousand and No/lOa Dollars ($ 1000.00) as security ("Security Deposit") for the full and faithful performance of every provision of 2 Page 1 of2 Tina Hansmeier From: Lisa Dargis Sent: Thursday, February 19, 20091 :16 PM To: Tina Hansmeier Subject: FW: Lease From: Andrea McDowell Poehler [mailto:apoehler@ck-Iaw.com] Sent: Thursday, February 19, 2009 11:55 AM To: Lisa Dargis SUbject: Lease Lisa: Using the information below from the Bureau of Labor and Statistics, taking the average of the months making up the 3rd quarter and dividing per the lease results in an increase of 5.3% and a total annual payment of $12,880.30. Let me know if you have any questions. Andrea l'II!lF'flrCYUNITE rr"STATES'" IJEPART1:;fE NT OF' rABOIt".,'...."."''''""'''''' .,.,' www.bls.gov Search: I~~~.~~.gov ._.__..___._..____ __.[;;!J for: L__.~._...____._._.J ~l>ear~h _~;i ~BUREAU OF LABOR STATISTICS Newsroom I Tutorials I Release Calendar Ilil Home Subject Areas Databases III Tables Publications Economic Releases A - Z Index I About BLS Databases, Tables & Calculators by Subject FONT SIZE: 8 EB Change Output Options: From: 1'?.QQZd To: I ?QQ~...:.l IS!) r include graphs NEW! More Formatting Options..... 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"jij .~ Ol E E o o "jij ~- :x: I ~ m &i [[ ~ Iffi~ - ~~ I u ~II~S E~ IglE t ~~€= m~ I~ - ~E= E ~~06 ~~~ ~ ~ ~~~ If m {j Z VJ m E c... .a m ~ ~ '5 0 ~ ~ c cl~ .~c~~~~mVJo=O~~wOml~I~O ~",~QlQlO ~l1l~OQlI~r~~,,""~ mWm~~~~~=OI~~I~~zmoE~m )IRI1~~t~~I~~~~~iE~EEE ~lwS~~oo~~~~ffi~~~~IfVJ~~~ 2l .C a. Ol "jij '" Ql .a i5 c .j: ,., a; ~ Ql '" "jij ~ '" Ql .E :::JZ-~ ~~ ~ ~f3-; ffi af ; .:( :;-~ ui c R UQle 8~0. Ol > U n::em ~~e ~:s .~ UQl.. -5~~ ~;;c om~ E-gU ~~~ ~~~ ~~ ~ -3 g':5 ~!i~ (ij '5 :E >IDcn iri it) it) 000 zzz SF City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Farmers' Market Lease - 109 Spruce St. DATE: March 23, 2009 INTRODUCTION / DISCUSSION Attached is the lease for 109 Spruce Street, between Sackett Properties, LLC and the City of Farmington Economic Development Authority. The lease has been reviewed and approved by the City Attorney. The site will be the location of the 2009 Downtown Farmington Farmer's Market. The Planning Commission unanimously approved the conditional use permit allowing hosting of a farmers' market on the site at their March 10,2009 meeting. ACTION REQUESTED Execute and enter into the attached lease agreement for 109 Spruce Street. \" ;,~::~~~itted, t:~~~ Ad~~sistant COMMERCIAL LEASE This lease is made between Molly Aaron of Sackett Properties, LLC, herein called the Lessor, and the City of Farmington Economic Development Authority, hereby called the Lessee. Lessee hereby offers to lease from Lessor the premises located in the City of Farmington, County of Dakota, and State of Minnesota, described as a three sided pole building and surrounding parking lot located at 109 Spruce Street. 1. Term and Rent The rent will be $250 for the 2009 summer season. The rent should be paid to the Lessor at the beginning of the season and can be delivered in person or sent to 912 Westlyn Ct., Farmington, MN 55024. 2. Use The Lessee may use the premises for the purpose of holding a community farmers' market on Thursdays, beginning July 9th and concluding September 24th between the hours of3 and 7pm and permitting vendors and guests on the property. The premises shall not be used for any other purpose. The Lessor shall permit the Lessee to enter the site 2 hours before and 2 hours after market times, or as needed with reasonable notice. 3. Care and Maintenance of Premises Lessee shall provide portable bathrooms, if desired by the Lessee, and shall be responsible for the removal of all garbage materials produced by the farmers' market activities. 4. Parking During the term of the lease, Lessee shall have the nonexclusive use in common with the Lessor of the common automobile parking areas. 5. Insurance Insurance is held by the Lessor. The Lessee, or the contracted vendors of the Lessee, shall hold their own insurance policies. Signed this /7 -+h day of ~, 2009. Lessor ~O{OJ) i5'Y0 Date :1-- f'l- D q \ ~ Owner Lessee Date EDA Chair Lessee Date EDA Executive Director Sj City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Request to Use McVicker Property DATE: March 23, 2009 INTRODUCTION Mrs. Buffy Labeau of Longbranch Saloon and Eatery and Gossips Bar & Grill has requested to use the McVicker property on two separate occasions. DISCUSSION Mrs. Labeau would like to reserve the property on May 16th to host the KDK Foundation event she is organizing. The applicant is also interested in reserving the property for an evening event she would like to organize for June 17 or 18, 2009. Mrs. Labeau would like to host both events on the McVicker property to encourage residents to come downtown. Mrs. Labeau is aware of all insurance and security requirements for use of the lot. ACTION REQUESTED Authorize use of the McVicker property by Mrs. Buffy Labeau for the following events: . May 16, 2009 - KDK Foundation Spring Fest (Bingo, Beer & Band) . June 17 or 18, 2009 - Beer, Brats, and Bingo Respectfully s.,ubmitted, ~Ul~)61~ Tina Hansmeier, Economic Development Specialist 2009 EDA Property Reservation Form This reservation form gives you priority for the use of the EDA-owned property only. It does not guarantee the cleanliness of the property, as it is a public space. We strongly suggest checking the condition of the property the day of your reservation. Farmington Community Development Department 1. Date Completing Form: CJ-I '? -. {J 9 Date of Event: 5- I (p - 0 (1 ~ 2. Event Name (i.e. wedding, graduation, fundraiser, family reunion,): K D K Estimated No. Attending Event) (jJ - J C:;U DescripfionofEvent:X.b. K .73cl( 13J'nOD ~- {Pprn - -&:0 /2XJ::l1 7- /D LIVe Ptwc1 (tJ J?(Jm- /d, Jlf,fEt 'lJl lie QU-lO-JS- 20 ><CfO f€?lt p\vS c;Atqe/-fy.b~v0 3.EventFee:N/A GarbageFee(See#6beIOW)~ - . / 4. Property Location (please check one): Public Space/McVicker Lot (317/323 3rd Stre@., Riste Lot (209 oOeet) 5. Name of Individual or Group Reserving EDA Owned Property: ~on9 &CLfl('}I' &1 mY! - Address: '-~ a rei ?ired City: fOrm I'~'YL State: m IJ Zip: '5f;D3.tj , Phone: (w) 0-s/--LJ0 ?yq& I (h) torsl- L/(o?)-?j 90 (c) [0'51- (~)() ~(J{)5~ Site Rental Reauirements: <; I /- A. Reservations should be made at least two weeks in advance of the event date. t7t:(p;relnls-e. (fA. IS.- B. To secure a reservation, the reservation form and all necessary documents (Le. insurance certificate, caterfug license, site layout, etc) must be received in City Hall, located at 430 Third Street.- C. Glass containers such as bottles, drinking glasses, jars, etc. are not permitted on reserved EDA Owned Property. D. Event organizers are responsible for cleaning and disposing of garbage into the garbage containers during and at conclusion of the event. E. If event is larger than 150 people, additional garbage containers are required at a rate of I gallon for each person over 150 people. Garbage service must be arranged through the City's Solid Waste Service at 651-280-6900. F. Bring this form with you on the day of your reservation as proof that you have reserved EDA property for your event. G. Portable restroom facilities are to be provided by applicant as necessary to accommodate anticipated attendance. I, the undersigned, hereby agree to release and discharge the City of Farmington, its agents, officers, employees, volunteers and insurers from all claims, demands, actions, judgments and executions. This release includes all claims that I, or the group reserving and using the property may have against the City of Farmington for all personal injuries, death or property damage that may arise out of the reservation and use of the C't)' of Fannington's Economic Development Authority owned property. ,'3-/9- CPI ~ Date FOR CITY USE ONLY Date Form Received: 61(~/ DO; Initials of Staff Receiving all necessary documenticm~ Insurance Certificate Submitted for Event (please circle one): yes no -.Jf --rub V (~1 v: i! rt 2009 EDA Property Reservation Form This reservation form gives you priority for the use of the EDA-owned property only. It does not guarantee the cleanliness ofthe property, as it is a public space. We strongly suggest checking the condition of the property the day of your reservation. Farmington Community Development Department /) / V . /\Cy //\ '. J/-lh /1)1/>\. 1. Date Completing Form: ... "l.'- (j c./ { Date ofEvent:,-."/l:tflJ2 I () f- c ' 2. Event N=e (Le. we-: ~on, ~r, flY r~unioo,)Piill Q! 1110/1 I ~tKhtimated No. AttendIDg Event: ! ()i) Descri;r;onof~vent ~{'r) h( cJt5, - tjJ 11/ . /2-0/\ LaO 4t{;\X 3. Event Fee: N/A Garbage Fee (see #6 below): N ( vq ~ 4. Property Location (please check one): Public Space/McVicker Lot (317/323 3rd Streel 5. Name of Individual or Group Reserving EDA Owned Property: Lv cf1 Address: '- ::nq Or d. 8t- City: ~ J h Phone: (w) {o5/ 41#0- (0990 (h) b9 - Lj(03-3~ to (c) Riste Lot (209 oOeet) )J Zip: ,nD d-L( (c/5/- ,~'i: -Odcs8. ite Rental Reauirements: A. Reservations should be made at least two weeks in advance of the event date. B. To secure a reservation, the reservation form and all necessary documents (i.e. insurance certificate, catering license, site layout, etc) must be received in City Hall, located at 430 Third Street. C. Glass containers such as bottles, drinking glasses, jars, etc. are not permitted on reserved EDA Owned Property. D. Event organizers are responsible for cleaning and disposing of garbage into the garbage containers during and at conclusion of the event. E. If event is larger than 150 people, additional garbage containers are required at a rate of I gallon for each person over 150 people. Garbage service must be arranged through the City's Solid Waste Service at 651-280-6900. F. Bring this form with you on the day of your reservation as proof that you have reserved EDA property for your event. G. Portable restroom facilities are to be provided by applicant as necessary to accommodate anticipated attendance. I, the undersigned, hereby agree to release and discharge the City of Farmington, its agents, officers, employees, volunteers and insurers from all claims, demands, actions, judgments and executions. This release includes all claims that I, or the group reserving and using the property may have against the City of Farmington for all personal injuries, death or property damage that may arise out o e reservation d use ofthe City of Farmington's Economic Development Authority owned property. 3~/f-u 0; Date FOR CITY USE ONLY late Form Received: ,1). ( tz,. Dq Initials of Staff Receiving all necessary documentionk- Insurance Certificate Submitted for Event (please circle one): yes no /Q./ City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Farmington Truck Center, Business Development Grant Application DATE: March 23, 2008 INTRODUCTION Staff has received an application from Farmington Truck Center, Inc. for a Business Development Grant for business expansion. DISCUSSION Farmington Truck Center, Inc., located at 22098 Canton Court, provides full service repair for heavy duty trucks and also provides MNDOT inspections for trucks and/or trailers. They plan to expand their business offerings to include service and repair work for cars and light duty trucks. The expansion will include the addition of testing, diagnostic and repair equipment specific to the new services to be offered. They will be hiring at least 2 additional staff members, and indicate that the new positions they will be creating will qualify for the low/mod income benefit as is defined by the CDBG and Business Development Grant Program guidelines. The proposed project costs for the expansion are listed in detail on the attached letter (see Exhibit A). All of the required financial information has been submitted, and the Dakota County Community Development Agency (CDA) has reviewed the application. Although they feel that the diversification of services is a good project, the CDA staff has raised concerns over the financial status of the company, they are summarized as follows: IIlf the program policy does not delineate what financial factors would make someone ineligible, then I think Ws up to you as the local program administrators to decide whether or not to award the funding. Those decisions are based on financial factors, but they also relate to a good understanding of the business history, the owner's character, etc. A decision to approve is always better if you've stated both the positive and negative points (to the EDA). II Due to the private nature of financial data, Finance Director Roland has prepared a general summary of the financial information submitted for your review (see Exhibit B). If you desire to review the documentation submitted, please contact me to set up a time to come in and review the paperwork. Farmington Truck Center has been a very valuable asset to the Farmington business community since 1997. We are pleased that they are considering the proposed expansion of their business within our city. For more information about their current services, please visit their website at www.farmingtontruckcenter.com. ACTION REQUESTED Authorize award of a City of Farmington Business Development Grant in the amount of $15,000 to Farmington Truck Center, Inc. Resp,c. . ~y submitted, /' , \. / ..../ ...rZ- . --.c-tr.... '-- tI-.~ Lisa Dargis, Administra ive Assistant };x hi bi -f- 4 22098 Canton Court Farmington, MN 55024 651-463-4825 office 651-463-4850 fax Farmington Truck Center Inc March 10lh 2009 City of Farmington 430 Third Street Farmington, MN 55024 651-280-68230 651-280-6899 F RE: Business Development Grant To Whom It May Concem: Attached is the documentation requested in the Business Development Grant application. In addition below is an outline of use of the Grant monies. Farmington Truck Center believes with the help of this grant that in addition to being able to work on Cars and light Trucks we should be able to provide two additional position within the company. Equipment needed to expand the business services to accommodate cars, light duty trucks and heavy duty trucks 2009 Scan tool software: Product Laptop Workstation Computer Detroit Diesel PC Software Allison PC Software MackNolvo PC Software Cummins PC Software Caterpillar PC Software Brake Link Tractor/trailer ABS Wireless Vehicle Link Additional Adapters PLC Converter Kit Graphing Application Cards MODis Elite Kit Drill Press Tire Balancer Transmission jack & Fuel Adapter Cost 1552.00 2661.73 1899.71 2000.00 2000.00 668.00 1124.00 1597.00 959.00 514.00 2834.00 7695.00 1800.00 6900.00 2000.00 Total 36,204.44 Ghihl~ 13 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Robin Roland, Finance Director SUBJECT: Financial Analysis - Farmington Truck Center Business Development Grant Application DATE: March 23, 2008 As part of the Business Development Grant approval process, financial information has been supplied by the grant applicant and has been reviewed by Lisa Dargis and me. Our review has highlighted significant concerns with net worth; wages paid and increased rent expenditures. The fmancial documents are available in the Community Development department for individual review as EDA members may choose. ~;zttOO' . Robin Roland Finance Director 7q/'/ City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Response to Dakota County CDA Request for Information DATE: March 23, 2008 INTRODUCTION Staff has submitted the attached information in response to a request from the Dakota County CDA pertaining to the Business Development Grant Program. DISCUSSION In response to the attached email from Dan Rogness, Dakota County CDA - Director of Community Revitalization, staff has provided a summary of grant activities and recipients to date. Representatives from the CDA and City of Farmington Staff met in February to discuss the continuance of the grant program. Staff is hopeful that the program will continue to be a tool that can be utilized to promote local business expansion and support of microenterprise endeavors. Staff will continue to discuss possible options to continue the program with the CDA, and will provide updates as available. ACTION REQUESTED This item is for information only. BP"Y :bmitted~ ~~~:::t:~Sistant City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ciJarmington.mn.us March 10,2009 Mr. Dan Rogness Director of Community Revitalization Dakota County CDA 1228 Town Centre Drive Eagan, MN 55123 Dear Mr. Rogness: Attached to this letter is a report by Lisa Dargis in our Economic Development Department, providing an outline of the City of Farmington's suggested uses ofCDBG funds. Farmington has been very appreciative of the assistance from your staff in helping us assist prospective businesses in our community. We have used this money for three individual grants that will benefit the City of Farmington and the greater Dakota County area. We appreciate their assistance in helping us initiate these new programs in Farmington and your continued support in these areas. Thank you again for your assistance. Enc. Herlofsky/Economic Dev/CDA City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Dan Rogness, Director of Community Revitalization FROM: Lisa Dargis, Administrative Assistant SUBJECT: Farmington Business Development Grant Activities DATE: March 9, 2009 INTRODUCTION / DISCUSSION The following is a summary of the Farmington Business Development Grant Program and activities that have been funded to date. Overview: In early 2008 staff created a grant program to utilize previously allocated CDBG funding that had not been spent down. It is the desire of the Economic Development Authority (EDA) to develop tools that will help to strengthen the local economy, so the program is centered on providing local business assistance. The primary goals of the program are; a) To retain local jobs within the City by encouraging existing businesses to relocate or expand within the City of Farmington. b) To create additional job opportunities within the City. c) To support entrepreneurial growth within the City. Eligible Uses of Funding: Applicants may apply for grant funding for one of the following uses only. a) Business Expansion Assistance. One time grant funding for an existing Farmington business that is expanding their current facility, relocating to, or constructing a facility elsewhere within the city limits. Relocation outside of the City of Farmington within three years of receipt of grant funding, or sale of equipment purchased with grant funding within three years will trigger repayment of grant funding in full. The Applicant would have to meet the criteria for the national objective of benefiting low to moderate income persons as defined by the Federal Department of Housing and Urban Development through job creation. b) Microenterprise assistance. Rental assistance for a period of one year to an owner of a microenterprise business or a person choosing to develop a microenterprise business that will occupy a currently vacant commercial or industrial space within the city limits. The business must meet the criteria of microenterprise defined as a business having five or fewer employees, one or more of whom owns the business. The Applicant must submit a comprehensive business plan and the business must not relocate outside of the City of Farmington for a period of three years after receiving assistance or repayment of grant funding in full will be required. c) Redevelopment Assistance. Redevelopment of EDA owned property. The redevelopment would have to meet the criteria for the national objective of benefiting low to moderate income persons as defined by the u.s. Department of Housing and Urban Development. A mixed-use project that includes commercial and residential will need to meet the national objective related to both job creation and low/moderate income housing. There may be additional site specific requirements. For further details please contact a City of Farmington Economic Development staff member. Activities to Date: As of March of 2009, three Business Development Grants have been awarded. a) Buds & Bytes was the first recipient of the grant funding and is thus far the only microenterprise business to receive funding. The family owned and operated company specializes in computer repair and floral arrangement. They relocated from northern Minnesota and now run their business in a previously vacant space in Downtown Farmington. They were awarded $7,740 in rent assistance for the period of one year. b) Anna's Bananas Daycare & Preschool received a grant in the amount of $15,000 to help fund the outdoor play area of their new 14,000 square foot facility on Highway 3. The daycare was previously located in a rented space, not far from their new location. The proprietors now own their facility, and will be nearly doubling their staffing levels. The new facility is scheduled to open this spring. c) Vinge Tile & Stone has also received grant funding for business expansion; the business will be adding granite fabrication to their company's current offerings. Located at the entrance to Farmington's Industrial Park, Vinge Tile & Stone is using grant funding to purchase granite fabrication equipment, and will be expanding into the currently vacant space on the west side of their building. As can be seen from the sampling of businesses that have received funding, the grant program is flexible enough to be utilized by several business types. Business retention plays an integral part in job creation and business growth in any city, and we feel confident that support of the businesses that are already a part of our community will enable them to positively impact our local economy into the future. n B~st ~egd~.rds, < (\.;4-- ~. '" ~. ..,..'-,.... (,,::r ;:J Lisa Dar~is-~ EDFPj/ From: Tina Hansmeier Sent: Thursday, February 26, 2009 12:03 PM To: Lisa Dargis Subject: FW: CDBG for Econ. Dev. Please see Danis email below. Please note new mailing address and phone number: Tina Hansmeier Economic Development Specialist City of Farmington 430 3rd Street 651-280-6821 From: Dan Rogness [mailto:DanRogness@dakotacda.state.mn.us] Sent: Thursday, February 26, 2009 11 :48 AM To: Peter Herlofsky; Tina Hansmeier Cc: Melissa Taphorn Subject: CDBG for Econ. Dev. Hi Peter and Tina: I had my discussion with Mark Ulfers regarding the city's future use of CDBG funds for economic development activities in Farmington. His idea is to first send a summary of what you are using the program funds for to Brandt Richardson in order to get his feedback on that being a good use of the county's federal dollars. If that feedback is positive, then we may be able to change our stance on not using more CDBG for that activity. Therefore, please send me your best (short) summary of the general program guidelines and those recipients to date. I'll then send that to Mark who will be responsible for getting it to Brandt. I suppose a follow-up meeting between all of us may be a possibility, too. Thanks, and let me know if you have further questions. Dan Rogness Director of Community Revitalization Dakota County CDA Eagan, MN 651.675.4464 7b City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.fannington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Farmers' Market Update DATE: March 23, 2009 INTRODUCTION / DISCUSSION Vendor invitations have been sent out and I have received completed applications and payment from five vendors as of the date of this memo. Applications will continue to be accepted on an ongoing basis, with a deadline of June 15, 2009 for guaranteed booth space. After June 15, spaces will be assigned based upon availability. The Planning Commission unanimously approved the conditional use permit for the event at their March 10, 2009 meeting. I am currently working to obtain a transient merchant permit for the market. Additional details are being coordinated and I am currently creating marketing materials for the event. Weekly market "themes" are being discussed with possible partner organizations in an effort to attract additional customers to the event throughout the season. 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Q)Q) ~c .......ctllQ) c.........E .....tIlQ)c (j'I.- 0\.... o<(l1JcQ) 0""" > N""-COO (Q)8EOl 0\ o o N .s o N '$. ] rJ.l o N ~ o~ j:.I..; o N ~ ~ N ~ t: 8- g. rJ.l ~ +:l ..... - ~ ~ ~ ~ o N ~ o~ ""Cl 'Q)' ~ t o ~ ~ c-. eEl ~ ~ CI) ~ ~ - Q ;..:::l .g ..e- N o - 0'1 1 o ~ , , ) , -...: 0- .E 7c City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Proposed Industrial Park Expansion, Phase 2 Project Status DATE: March 23, 2009 INTRODUCTION/ DISCUSSION At the January 26, 2009 EDA meeting, the Authority approved hiring the project consultants, Lee Mann, Bruce Maus and Joel Jamnik to conduct Phase 2 as identified on the attached exhibit A. The concept planning kick-off meeting was held on February 12th at which time specific information necessary for Bonestroos' Landscape Architect, Wally Case, to prepare draft concepts was discussed. To date, all requested site specific information has been provided to Mr. Case. The provided information will assist in the preparation of two draft concept plans, one that incorporates conventional design standards and one that incorporates Low Impact Design (LID) standards. As soon as staff receives more information, an update will be communicated to the EDA. Respectfully submitted, ~{n02Htef~{fYlel~ Tina Hansmeier Economic Development Specialist EkJn.\biJ(' A Farmington Industrial Park Expansioli'il Phase 2 - Concept Planning 1/2009 Phase 2 Task DescriDtions 1. Concept Kick=off meeting = $1455 City staff will meet with the consultant team to discuss and kick off the concept planning process. 1.5 hour meeting will be held at Campbell Knutson's offices. 2. Draft Concept Plans = $3375 City staff will provide the consultant team with electronic q;>ntours, mapping, zoning information etc. as identified in the kick-off meeting. Upon receipt of the information, Bonestroo will draft two concept plans, one that incorpclrqtes conventional design standards and one that incorporates Low Impact ge~gn,{LID) standards. Direction as to the extent to which the liD concept deviate~.Jrbh1 current City standards will be provided by the City at the kick-off meeting. l., \~'. . ./ ~. ~ ,", . 1.-'.;. I. 3. Meet with City staff on draft Concept Plans - $f805'~;' {, Once the first draft of the concept pl~~s are complete, City staff and ~he consultant team get together for a 2.0 hour meetmg.qt Campbell Knutson to revIew the draft concepts. At this meeting, City staff provid~'feedback and directibn to the team for revisions to the draft concept plans. / ' ' 4. Finalize COncept 1!'~~"$2160 # ,'7' Bonestroo revises th~ lfaffCO!icept plans per the directIon given at the meeting outlined in Task #3. / 4---~.~ ~ J - 5. Infrastr~\I_r~ Layout, Cost E!!timatetSchedule - $7005 This item.J!1tludesthe determination of one. infrastructure layout and associated cost estimatg<for the concept plan(s). This work would commence once the City approves the ~~pt plans for this analysis. Alproposed schedule for the project would be formulate:d fqr the City's planning 9nd budgeting purposes. This task also includes a discussion with the City's appraiser to determine a budget estimate for the land costs. Formal appraisals would be recommended at some point in the future as the project moves fOlWard. . .,..,,// " 6. Final meeting with City Staff before presentation to EDA - $1455 A 1.5 hour meeting ~t the offices of Campbell Knutson for the consultant team and City staff to review the concepts, cost estimates and proposed schedule before meeting with the EDA. 7. Meet with EDA - $2095 A 2.0 hour meeting for the consultant team and the EDA to review the final drafts of the concept plans and associated information. EDA to provide feedback on the concept plans, cost estimates and schedule for the purposes of finalizing these items. 1 7e1 MEMORANDUM TO: Farmington EDA Chair and Board members FROM: Andrea McDowell Poehler DATE: March 20, 2009 RE: Business Subsidies BACKGROUND Staffhas requested that our office provide some general information to the EDA concerning laws regulating business subsidies. Business subsidies are regulated by Minnesota State law, chapter 116J. A business subsidy is defined under Minn. Stat. ~116J.993, subd. 3, as a state or local government agency ". . . grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. " The statute provides a list of 23 exceptions to the foregoing definition of financial assistance that do not constitute a business subsidy. Prior to awarding a business subsidy, including a business subsidy of $25,000 or more or a loan of $75,000 or more, to any business, a City or EDA must hold a public hearing and adopt criteria for awarding business subsidies. The criteria must include a specific wage floor for the wages to be paid for the jobs to be created stated as a specific dollar amount or formula that will generate a specific dollar amount. A grantor may deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual :report to the department. The City and EDA have complied with this requirement through the adoption of its business subsidy policy. Once criteria are established for providing a business subsidy, the City/EDA and the recipient must enter into a subsidy agreement that meets the statutory requirements. The agreement must include an obligation to repay part or the entire subsidy if the recipient does not meet its obligations. The subsidy agreement, in addition to any other goals required by the City/EDA, must include: . Goals for the number of jobs created, which may include separate goals for the number of part-time or full-time jobs, or, in cases where the job loss is specific and demonstrable, goals for the number of jobs retained; . Wage goals for any jobs created or retained; and . Wage goals for any jobs to be enhanced through increased wages. The wage and job goals must contain specific goals to be attained within two years of the benefit date. During the period of the subsidy, the grantor must monitor the progress of the recipient in achieving the agreement goals and the recipient is required to provide information and reports relevant to their progress. If a business subsidy will exceed $150,000, the City/EDA must provide public notice and a hearing on the subsidy. The law provides for a 180 day statute of limitations for citizens or owners of property in the city to bring a civil action against the city for failure to comply with the business subsidy laws. ATTACHMENTS Minnesota Statutes Ch. 116J.993-994 r 1 MINNESOTA STATUTES 2008 1161.994 116J.994 REGULATING LOCAL AND STATE BUSINESS SUBSIDIES. Subdivision 1. Public purpose. A business subsidy must meet a public purpose which may include, but may not be limited to, increasing the tax base. lob retention may only be used as a public purpose in cases where job loss is specific and demonstrable. Subd. 2. Developing a set of criteria. A business subsidy may not be granted until the grantor has adopted criteria after a public hearing for awarding business subsidies that comply with this section. The criteria may not be adopted on a case-by-case basis. The criteria must set specific minimum requirements that recipients must meet in order to be eligible to receive business subsidies. The criteria must include a specific wage floor for the wages to be paid for the jobs created. The wage floor may be stated as a specific dollar amount or may be stated as a formula that will generate a specific dollar amount. A grantor may deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the department. The commissioner of employment and economic development may assist local government agencies in developing criteria. A copy of the criteria must be submitted to the Department of Employment and Economic Development along with the first annual report following the enactment of this section or with the first annual report after it has adopted criteria, whichever is earlier. Notwithstanding section 1161.993, subdivision 3, clauses (1) and (21), for the purpose of this subdivision, "business subsidies" as defined under section 1161.993 includes the following forms of financial assistance: (1) a business subsidy of $25,000 or more; and (2) business loans and guarantees of $75,000 or more. Subd. 3. Subsidy agreement. (a) A recipient must enter into a subsidy agreement with the grantor of the subsidy that includes: (1) a description of the subsidy, including the amount and type of subsidy, and type of district if the subsidy is tax increment financing; (2) a statement of the public purposes for the subsidy; (3) measurable, specific, and tangible goals for the subsidy; (4) a description of the financial obligation of the recipient if the goals are not met; (5) a statement of why the subsidy is needed; (6) a commitment to continue operations in the jurisdiction where the subsidy is used for at least five years after the benefit date; (7) the name and address of the parent corporation of the recipient, if any; and Copyright Il:;) 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2 MINNESOTA STATUTES 2008 116J.994 (8) a list of all financial assistance by all grantors for the project. (b) Business subsidies in the form of grants must be structured as forgivable loans. For other types of business subsidies, the agreement must state the fair market value of the subsidy to the recipient, including the value of conveying property at less than a fair market price, or other in-kind benefits to the recipient. (c) If a business subsidy benefits more than one recipient, the grantor must assign a proportion of the business subsidy to each recipient that signs a subsidy agreement. The proportion assessed to each recipient must reflect a reasonable estimate of the recipient's share of the total benefits of the project. (d) The state or local government agency and the recipient must both sign the subsidy agreement and, if the grantor is a local government agency, the agreement must be approved by the local elected governing body, except for the St. Paul Port Authority and a seaway port authority. (e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be authorized to move from the jurisdiction where the subsidy is used within the five-year period after the benefit date if, after a public hearing, the grantor approves the recipient's request to move. For the purpose of this paragraph, if the grantor is a state government agency other than the Iron Range Resources and Rehabilitation Board, ''jurisdiction'' means a city or township. Subd. 4. Wage and job goals. The subsidy agreement, in addition to any other goals, must include: (1) goals for the number of jobs created, which may include separate goals for the number of part-time or full-time jobs, or, in cases where job loss is specific and demonstrable, goals for the number of jobs retained; (2) wage goals for any jobs created or retained; and (3) wage goals for any jobs to be enhanced through increased wages. After a public hearing, if the creation or retention of jobs is determined not to be a goal, the wage and job goals may be set at zero. The goals for the number of jobs to be created or retained must result in job creation or retention by the recipient within the granting jurisdiction overall. In addition to other specific goal time frames, the wage and job goals must contain specific goals to be attained within two years of the benefit date. Subd. 5. Public notice and hearing. (a) Before granting a business subsidy that exceeds $500,000 for a state government grantor and $150,000 for a local government grantor, the grantor must provide public notice and a hearing on the subsidy. A public hearing and notice under this subdivision is not required if a hearing and notice on the subsidy is otherwise required by law. (b) Public notice of a proposed business subsidy under this subdivision by a state government grantor, other than the Iron Range Resources and Rehabilitation Board, must be published in the Copyright (\:) 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 3 MINNESOTA STATUTES 2008 1161.994 State Register. Public notice of a proposed business subsidy under this subdivision by a local govemment grantor or the Iron Range Resources and Rehabilitation Board must be published in a local newspaper of general circulation. The public notice must identify the location at which information about the business subsidy, including a summary of the terms of the subsidy, is available. Published notice should be sufficiently conspicuous in size and placement to distinguish the notice from the surrounding text. The grantor must make the information available in printed paper copies and, if possible, on the Intemet. The govemment agency must provide at least a ten-day notice for the public hearing. (c) The public notice must include the date, time, and place of the hearing. (d) The public hearing by a state government grantor other than the Iron Range Resources and Rehabilitation Board must be held in St. Paul. (e) If more than one nonstate grantor provides a business subsidy to the same recipient, the nonstate grantors may designate one nonstate grantor to hold a single public hearing regarding the business subsidies provided by all nonstate grantors. For the purposes of this paragraph, "nonstate grantor" includes the iron range resources and rehabilitation board. (f) The public notice of any public meeting about a business subsidy agreement, including those required by this subdivision and by subdivision 4, must include notice that a person with residence in or the owner of taxable property in the granting jurisdiction may file a written complaint with the grantor if the grantor fails to comply with sections 1161.993 to 1161.995, and that no action may be filed against the grantor for the failure to comply unless a written complaint is filed. Subd. 6. Failure to meet goals. (a) The subsidy agreement must specify the recipient's obligation if the recipient does not fulfill the agreement. At a minimum, the agreement must require a recipient failing to meet subsidy agreement goals to pay back the assistance plus interest to the grantor or, at the grantor's option, to the account created under section 1161.551 provided that repayment may be prorated to reflect partial fulfillment of goals. The interest rate must be set at no less than the implicit price deflator for govemment consumption expenditures and gross investment for state and local governments prepared by the Bureau of Economic Analysis of the United States Department of Commerce for the 12-month period ending March 31 of the previous year. The grantor, after a public hearing, may extend for up to one year the period for meeting the wage and job goals under subdivision 4 provided in a subsidy agreement. A grantor may extend the period for meeting other goals under subdivision 3, paragraph (a), clause (3), by documenting in writing the reason for the extension and attaching a copy of the document to its next annual report to the department. Copyright ~ 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 4 MINNESOTA STATUTES 2008 1161.994 (b) A recipient that fails to meet the terms of a subsidy agreement may not receive a business subsidy from any grantor for a period of:five years from the date of failure or until a recipient satisfies its repayment obligation under this subdivision, whichever occurs first. (c) Before a grantor signs a business subsidy agreement, the grantor must check with the compilation and summary report required by this section to determine if the recipient is eligible to receive a business subsidy. Subd. 7. Reports by recipients to grantors. (a) A business subsidy grantor must monitor the progress by the recipient in achieving agreement goals. (b) A recipient must provide information regarding goals and results for two years after the benefit date or until the goals are met, whichever is later. If the goals are not met, the recipient must continue to provide information on the subsidy until the subsidy is repaid. The information must be filed on forms developed by the commissioner in cooperation with representatives of local government. Copies of the completed forms must be sent to the local government agency that provided the subsidy or to the commissioner if the grantor is a state agency. If the Iron Range Resources and Rehabilitation Board is the grantor, the copies must be sent to the board. The report must include: (1) the type, public purpose, and amount of subsidies and type of district, if the subsidy is tax increment financing; (2) the hourly wage of each job created with separate bands of wages; (3) the sum of the hourly wages and cost of health insurance provided by the employer with separate bands of wages; (4) the date the job and wage goals will be reached; (5) a statement of goals identified in the subsidy agreement and an update on achievement of those goals; (6) the location of the recipient prior to receiving the business subsidy; (7) the number of employees who ceased to be employed by the recipient when the recipient relocated to become eligible for the business subsidy; (8) why the recipient did not complete the project outlined in the subsidy agreement at their previous location, if the recipient was previously located at another site in Minnesota; (9) the name and address of the parent corporation of the recipient, if any; (10) a list of all financial assistance by all grantors for the project; and Copyright ~ 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 5 MINNESOTA STATUTES 2008 116J.994 (11) other information the commissioner may request. A report must be filed no later than March 1 of each year for the previous year. The local agency and the Iron Range Resources and Rehabilitation Board must forward copies of the reports received by recipients to the commissioner by April 1. (c) Financial assistance that is excluded from the definition of "business subsidy" by section 1161.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting requirements of this subdivision, except that the report of the recipient must include instead: (1) the type, public purpose, and amount of the financial assistance, and type of district if the assistance is tax increment financing; (2) progress towards meeting goals stated in the assistance agreement and the public purpose of the assistance; (3) if the agreement includes job creation, the hourly wage of each job created with separate bands of wages; (4) ifthe agreement includes job creation, the sum ofthe hourly wages and cost of health insurance provided by the employer with separate bands of wages; (5) the location of the recipient prior to receiving the assistance; and (6) other information the grantor requests. (d) If the recipient does not submit its report, the local government agency must mail the recipient a warning within one week of the required filing date. If, after 14 days of the postmarked date of the warning, the recipient fails to provide a report, the recipient must pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The maximum penalty shall not exceed $1,000. Subd. 8. Reports by grantors. (a) Local government agencies of a local government with a population of more than 2,500 and state government agencies, regardless of whether or not they have awarded any business subsidies, must file a report by April 1 of each year with the commissioner. Local government agencies of a local government with a population of 2,500 or less are exempt from filing this report if they have not awarded a business subsidy in the past five years. The report must include a list of recipients that did not complete the recipient report required under subdivision 7 and a list of recipients that have not met their job and wage goals within two years and the steps being taken to bring them into compliance or to recoup the subsidy. If the commissioner has not received the report by April 1 from an entity required to report, the commissioner shall issue a warning to the govenunent agency. If the commissioner has still Copyright Ii) 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 6 MINNESOTA STATUTES 2008 1161.994 not received the report by June 1 of that same year from an entity required to report, then that government agency may not award any business subsidies until the report has been filed. (b) The report required under paragraph (a) is also required for financial assistance of $25,000 and greater that is excluded from the definition of "business subsidy" by section 1161.993, subdivision 3, clause (1), and of $75,000 and greater that is excluded from the definition of "business subsidy" by section 1161.993, subdivision 3, clause (21). The report for the financial assistance under this paragraph must be completed within one year ofthe granting of the financial assistance. The report required for financial assistance under this paragraph must include: (1) the name of the recipient, its organizational structure, its address and contact information, and its industry sector; (2) a description of the amount and use of the financial assistance and the total project budget, including a list of all financial assistance by all grantors for the project and the private sources of financial assistance; (3) the public purpose of the financial assistance, the job goals associated with both the financial assistance and the total project in which the financial assistance is included, the hourly wage of each job created, and the cost of health insurance provided by the employer; (4) the date the project will be completed; (5) the name and address of the parent corporation of the recipient, if any; and (6) any other information the commissioner may request. (c) Within one year of completing a report under paragraph (b), the local government agency must report to the commissioner on progress in achieving the purposes and goals under paragraph (b), clause (3). (d) The commissioner of employment and economic development must provide information on reporting requirements to state and local government agencies. Subd. 9. Compilation and summary report. The Department of Employment and Economic Development must publish a compilation and summary of the results of the reports for the previous two calendar years by December 1 of 2004 and every other year thereafter. The reports of the government agencies to the department and the compilation and summary report of the department must be made available to the public. The commissioner must make copies of all business subsidy reports submitted by local and state granting agencies available on the department's Web site by October I of the year in which they were submitted. Copyright (\J 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 7 MINNESOTA STATUTES 2008 1161.994 The commissioner must coordinate the production of reports so that useful comparisons across time periods and across grantors can be made. The commissioner may add other information to the report as the commissioner deems necessary to evaluate business subsidies. Among the information in the summary and compilation report, the commissioner must include: (1) total amount of subsidies awarded in each development region of the state; (2) distribution of business subsidy amounts by size of the business subsidy; (3) distribution of business subsidy amounts by time category; (4) distribution of subsidies by type and by public purpose; (5) percent of all business subsidies that reached their goals; (6) percent of business subsidies that did not reach their goals by two years from the benefit date; (7) total dollar amount of business subsidies that did not meet their goals after two years from the benefit date; (8) percent of subsidies that did not meet their goals and that did not receive repayment; (9) list of recipients that have failed to meet the terms of a subsidy agreement in the past five years and have not satisfied their repayment obligations; (10) number of part-time and full-time jobs within separate bands of wages for the entire state and for each development region of the state; (11) benefits paid within separate bands of wages for the entire state and for each development region of the state; and (12) number of employees in the entire state and in each development region of the state who ceased to be employed because their employers relocated to become eligible for a business subsidy. Subd. 10. Compilation. The Department of Employment and Economic Development must publish a compilation of granting agencies' criteria policies adopted in the previous two calendar years by December 1 of 2004 and every other year thereafter. Subd. 11. Enforcement. (a) A person with residence in or an owner of taxable property located in the jurisdiction of the grantor may bring an action for equitable relief arising out of the failure of the grantor to comply with sections 116J.993 to 1161.995. The court may award a prevailing party in an action under this subdivision costs and reasonable attorney fees. Copyright ~ 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 8 MINNESOTA STATUTES 2008 1161.994 (b) Prior to bringing an action, the party must file a written complaint with the grantor stating the alleged violation and proposing a remedy. The grantor has up to 30 days to reply to the complaint in writing and may take action to comply with sections 1161.993 to 1161.995. (c) The written complaint under this subdivision for failure to comply with subdivisions 1 to 5, must be filed with the grantor within 180 days after approval of the subsidy agreement under subdivision 3, paragraph (d). An action under this subdivision must be commenced within 30 days following receipt of the grantor's reply, or within 180 days after approval of the subsidy agreement under subdivision 3, paragraph (d), whichever is later. History: 1999 c 243 art 12 s 2; 2000 c 482 s 2-11; 2001 c 7 s 28; 2003 c 128 art 13 s 24-26; 1Sp2003 c 4 s 1; 2004 c 206 s 24,25; 1Sp2005 c 1 art 4 s 23,24; 1Sp2005 c 3 art 7 s 2-5; 2008 c 366 art 5 s 3-5 Copyright ~ 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 1 MINNESOTA STATUTES 2008 1161.993 116J.993 DEFINITIONS. Subdivision 1. Scope. For the purposes of sections 1161.993 to 1161.995, the terms defined in this section have the meanings given them. Subd. 2. Benefit date. "Benefit date" means the date that the recipient receives the business subsidy. If the business subsidy involves the purchase, lease, or donation of physical equipment, then the benefit date begins when the recipient puts the equipment into service. If the business subsidy is for improvements to property, then the benefit date refers to the earliest date of either: (1) when the improvements are finished for the entire project; or (2) when a business occupies the property. If a business occupies the property and the subsidy grantor expects that other businesses will also occupy the same property, the grantor may assign a separate benefit date for each business when it first occupies the property. Subd. 3. Business subsidy. "Business subsidy" or "subsidy" means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. The following forms of financial assistance are not a business subsidy: (1) a business subsidy of less than $150,000; (2) assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) redevelopment property polluted by contaminants as defined in section 1161.552, subdivision 3; (5) assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50 percent of the total cost; (6) assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) assistance for housing; Copyright ~ 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2 MINNESOTA STATUTES 2008 1161.993 (8) assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under section 469.174, subdivision 23; (9) assistance for energy conservation; (10) tax reductions resulting from conformity with federal tax law; (11) workers' compensation and unemployment insurance; (12) benefits derived from regulation; (13) indirect benefits derived from assistance to educational institutions; (14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) ofthe Internal Revenue Code of 1986, as amended through December 31, 1999; (15) assistance for a collaboration between a Minnesota higher education institution and a business; (16) assistance for a tax increment financing soils condition district as defined under section 469.174, subdivision 19; (17) redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) general changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) funds from dock and wharf bonds issued by a seaway port authority; (21) business loans and loan guarantees of $150,000 or less; (22) federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) property tax abatements granted under section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. Subd. 4. Grantor. "Grantor" means any state or local government agency with the authority to grant a business subsidy. Subd. 5. Local government agency. "Local government agency" includes a statutory or home rule charter city, housing and redevelopment authority, town, county, port authority, Copyright <<J 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 3 MINNESOTA STATUTES 2008 1161.993 economic development authority, community development agency, nonprofit entity created by a local government agency, or any other entity created by or authorized by a local government with authority to provide business subsidies. Subd. 6. Recipient. "Recipient" means any for-profit or nonprofit business entity that receives a business subsidy. Only nonprofit entities with at least 100 full-time equivalent positions and with a ratio of highest to lowest paid employee, that exceeds ten to one, determined on the basis of full-time equivalent positions, are included in this definition. Subd. 6a. Residence. "Residence" means the place where an individual has established a permanent home from which the individual has no present intention of moving. Subd. 7. State government agency. "State government agency" means any state agency that has the authority to award business subsidies. History: 1999 c 243 art 12 s 1; 2000 c 482 s 1; 2004 c 206 s 52; 1Sp2005 c 3 art 7 s 1; 2006 c 259 art 4 s 1; 2008 c 366 art 5 s 2 Copyright rD 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 7e.. City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: 308 Elm Street / Park & Rec Garage DATE: March 23, 2009 INTRODUCTION/ DISCUSSION According to the Dakota County Assessors department, the estimated market value for this property was established when it went from a taxable to a tax exempt parcel at the time the City acquired it. All properties, regardless of tax status must carry a value. For the most part, the property will maintain its given value until there is a change in the property's tax status. The actual market value of the property may be higher or lower but is unknown at this time. At the direction of the EDA staff has contacted Mr. Harvey Snyder to appraise the property (Exhibit A). This information should be available for the next EDA meeting. Exhibit B, attached, is an additional proposal to purchase the property. It must be understood that if the EDA chooses to accept this proposal for purchase of the property as is, due to the difference between Dakota County's estimated value of the property and the offering price, a business subsidy is being offered. The purchasing party will need to provide information to substantiate the need for the subsidy. The City's Business Subsidy Policy is attached (Exhibit C). ACTION REQUESTED The City Attorney, Andrea McDowell-Poehler will be in attendance at Monday's EDA meeting for a discussion regarding the City's Business Subsidy Policy. This item is for informational purposes at this time. Respectfully submitted, ~/ {>)4flzcl ~/r)elc6 Tina Hansmeier Economic Development Specialist exiJb;1- A City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us March 19, 2009 Mr. Harvel Snyder 319 W 17 Street Hastings, MN 55033 Dear Mr. Snyder: As a follow-up to our phone conversation, the Farmington Economic Development Authority would like to use your services to obtain an appraisal for the Parks Garage located at 308 Elm Street. The fee we agreed on was $1,000. Please provide me with an appraisal by April 10, 2009. If you need additional information or have any questions, please let me know. Sincerely, VJu1((ifflu'U/7~ Tina Hansmeier Economic Development Specialist 651-280-6821 Com DevfTinaJEco Dev/Snyder Appraisal Dakota Motor Company 212 Elm Street Farmington, MN 55024 (651) 460-6655 1('/,r1 I;"" ", ,/1- , ,j '-; W (J Li-ic:l/ ~ /) ~/ f~(,L71 /, (J 7/ <-'I /" ,.) c., ,,('.1c' / ~tL ~ ~~<'- J<-e "- hr- ,~t? HUf?r-- )I/~ N 6-thjbrl- c3 {, _ "" "'I (('''' dq/:&:/ nt,..t'~ 'J ;:3 Z~c-lCtV7~ 'V (" A/ -('- , /'; f?x ~,- l () ~ J<lJ""(f %J r&U/ ;J)~:u{ if" t~ ~ ~ ~, 0 C\ 1\ ~t\r(1~ \,,-__/ '-'4 E 'lCh \ bOI t- c. CITY OF FARMINGTON, MINNESOTA Business Subsidv Policv SECTION 1. PURPOSE OF POLICY. The purpose of this Business Subsidy Policy (the "Policy") is to establish criteria by which the City of Farmington, Minnesota (the "City") may grant a business subsidy to a business (a "Business Subsidy"), as defined in Minnesota StatUtes, Section 116J.993, subdivision 3. This policy sets forth the criteria to be considered by the City in awarding a Business Subsidy in compliance with Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Act"). The City may deviate from this Policy only by documenting in writing the reason for deviation and attaching a copy of such documentation to its annual report to the Department of Trade and Economic Development, as provided in the Act. SECTION 2. PUBLIC PURPOSES. A Business Subsidy granted hereunder must meet one or more of the following public purposes: A. To redevelop blighted or under-utilized areas of the City. B. To provide for or promote housing for persons and families oflow and moderate incomes within the City. C. To provide for mixed-income housing developments within the City. D. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading in existing housing stock in residential areas of the City. E. To create additional job opportunities within the City. F. To retain local jobs in the City, where job loss is specific and demonstrable. G. To enhance the economic diversity of the City and to provide essential products and services within the City. A Business Subsidy shall not be granted hereunder merely because it is found that the granting of the Business Subsidy will result in an increase in the tax base of the City. SECTION 3. MANDATORY MINIMUM CRITERIA. Any project for which a Business Subsidy is granted by the City shall meet the following mandatory minimum criteria: A. Where the public purpose of a project is the creation of additional jobs in the City, the project receiving business assistance must create a minimum of 1 new full- time equivalent [FTE] job in the community, with a minimum wage of at least 125% of the prevailing federal minimum wage. B. Where the public purpose of a project is the retention of exnstingjobs in the City, the party requesting the Business Subsidy shall provide evidence that the loss of jobs in the City is imminent in the absence of the granting ofthe BUSll1.eSS Subsidy. C. Any party requesting a Business Subsidy must be able to demonstrate successful general development capability, as well as specific capability in the type and size of development proposed. D. All project proposals shall, in the opinion of the City Council, optimize the private development potential of a site. E. The project must meet the "but for" test, meaning that but for the Business Subsidy requested, it would not be financially feasible for the project to proceed in the manner.as proposed. F. The project must not generate significant environmental concerns in the opinion of local, state or federal governmental units. G. The project must be in accordance with the comprehensive plan, zoning, redevelopment plans, and policies of the City. SECTION 4. AWARD OF BUSINESS SUBSIDY. A project meeting the above criteria will not automatically be approved for a Business Subsidy. Meeting such criteria creates no contractual rights on the part of any party seeking a Business Subsidy. A Business Subsidy shall be provided within applicable state and local legal requirements. In granting a Business Subsidy, the City shall enter into an agreement with the recipient that provides the information, wage and job goals, commitment to provide necessary reporting data, recourse for failure to meet such goals, and other covenants, as required by the Act. 2 ~&v City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Certificate of Completion, LSI Holdings I, LLC DATE: March 23, 2009 INTRODUCTION Jennings, DeWan & Anderson, LLC has requested a Certificate of Completion on behalf of LSI Holdings I, LLC. DISCUSSION LSI Holdings I, LLC, developer of Aerospace Fabrication and Materials has met the obligations of the minimum improvements required under the Contract for Private Sale for Commercial Development between the Housing and Redevelopment Authority n/k/a Economic Development Authority of Farmington dated April 1, 2005. They are continuing their obligations to make payments under the special assessment agreement as outlined in the Contract. ACTION REQUESTED Approve and execute the attached Certificate of Completion. Respectfully svbmitted, "-t" . , / . C) , . .' . )'JilfiJfrGn~h1-C!~V Tina Hansmeier Economic Development Specialist CERTIFICATE OF COMPLETION WHEREAS, the Housing and Redevelopment Authority in and for the City of Farmington, Minnesota ("HRA") entered into a Contract for Private Redevelopment dated April 1, 2005 ("Contract") with Patrick C. Anderson for construction of certain Minimurri Improvements; WHEREAS, by City of Farmington Ordinance No. 005-541, the HRA was reformed as the Farmington Economic Development Authority ("EDA") in August 2005; WHEREAS, Patrick C. Anderson assigned his interest in the Contract to LSI Holdings I, LLC ("Developer") by Assignment and Assumption of Contract dated April 20, 2005; WHEREAS, Developer has requested issuance of a Certificate of Completion related to the Contract and the EDA has reviewed Developer's compliance with the terms and obligations under the Contract; NOW, THEREFORE, the Farmington Economic Development Authority hereby states, acknowledges, confirms and certifies as follows: The undersigned hereby certifies that the LSI Holdings I, LLC has fully complied with its obligations to construct the Minimum Improvements under that document titled Contract for Private Redevelopment dated Apri11, 2005, by and between the Housing and Redevelopment Authority in and for the City of Farmington and Developer and that Developer is released and forever discharged from its obligations under the Contract with respect to the obligations of Developer, and its successors arid assigns, to construct the Minimum Improvements, and, except as otherwise provided herein, 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 ofthe satisfaction and termination of the covenants and conditions of the Contract for Private Redevelopment described above, except for payment of ongoing special assessments against the Property identified in Paragraphs 3.6(a) and 3.7 of the Contract. IN WITNESS WHEREOF, the Farmington Economic Development Authority has caused this Certificate to be duly executed in its name and behalf on or as of the date first above-written. Farmington Economic Development Authority By: Its President By: Peter Herlofsky Its Executive Director ?Jb City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Economic Growth Committee Request DATE: March 23, 2009 INTRODUCTION The Farmington Economic Growth Committee [EGC] has requested a joint meeting with the Economic Development Authority to discuss work plans. DISCUSSION The EGC is proposing this meeting for Monday, April 27 at 7 p.m. at City Hall. It is understood this session will be facilitated by Ruthe Batulis, President of Dakota County Regional Chamber of Commerce, and EGC Chair, Ann Carlon of Minnesota Energy Resources. If this request is approved, the EDA and EGC members will begin this session by describing their thoughts on the following question: In 5 years from now, what does successful economic development look like? ACTION REQUESTED Please set the joint EDAjEGC meeting for April 27,2009. Respectfully submitted, CjUtg;tzfljn4d!) Tina Hansmeier Economic Development Specialist cg~ City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.cLfarmington.mn.us TO: EDA Members FROM: Tina HansmeierJ Economic Development Specialist SUBJECT: Minnesota Real Estate Journal Marketing Opportunity DATE: March 23J 2009 INTRODUCTION Staff recently learned of an opportunity for the City of Farmington EDA to have a listing in the April 2009 issue of the MN Real Estate JournalJ which will feature an Economic Development 2009 Directory. The listing can be a way to promote the City and its services and will be utilized by the commercial real estate industry. DISCUSSION Funds received from Dakota Electric Association in the form of a Partners in Progress grant could be used towards the cost of this listingJ as a portion of this grant funding has been earmarked for general economic development marketing efforts. The cost per listing is $300. I have enclosed an application which depicts a sample of a listing for reference. ACTION REQUESTED If this is something the EDA is interested in pursuingJ please direct staff to submit information to the MN Real Estate Journal by March 31J 2009. Respectfully submittedJ ~~1.rt!JfIansrnel-€V Tina HansmeierJ Economic Development Specialist email Page 1 of 1 Tina Hansmeier From: info@edam.org Sent: Monday, March 09, 20094:45 PM To: Tina Hansmeier Subject: Minnesota Real Estate Journal 2009 Economic Development Directory .~. ... ". .-.-..-..-;................. -...... .....;..:......;........'......' ~ EconOniHl Devalopment AMoclo!lonof Mrnnsso,to March 9, 2009 Minnesota Real Estate Journal 2009 Economic Development Directory The Minnesota Real Estate Journal will feature an Economic Development 2009 Annual Directory in the April 2009 issue. This directory will profile economic developers, city planners, businesses and organizations that impact economic development on all levels from community to national. These listings are a great inexpensive way to promote your services and will be utilized by the commercial real estate industry. 3 Easy ways to participate in the directory: 1. Download interactive pdf at WYJW EllQ.Ym~l$-,-G9m 2. Email: klarsolJ.@re<;g.com 3. Fax: 952-885-0818. The cost is $300 for each listing. Deadline is March 31, 2009. 3/1 0/2009 I I ~, -,- '-",--"-, ", ~ . _. .:. .- Sf. Cloud Area Economic Development Partnership 1- -'om ~ loor... I knr)' Fi"hrr 1 JO 6d, Aw 5, 5" ClOII,1. Ml" 1':,,20-656-,'lSI5..dS16 THE PARTNERSHIP \\"\\"\\'.~'~lp~lr(l1l'rship.l"oJn ,.,......... .......... ....... ....'......, t.nl()(In.'~;:';l.:'.lpanl1l'rshilu:():n or h.flsdlcJ\l!>C.Jp:ml1l'r.-hip.com 'U' 't ' . '>!J ...,,~~ ~: - - . .~~..- ~ - . TIll: St, Clllml Art';l F";'C)flomic [)~"\'d()pl11"1U P,;lr(rwr..hip i:<,:.l r.:1;:.io:u1 ~k.- \'l,..lnpml.nt nr:;alli7.ui(111 pr~ll11()tin~ husim."M ":ft.'01:o0 ;Jnd l'XiMll'iiI11l white ;lltr-Jctin~ t11..'\\' hll~int.-s...~"S to (he Gn';,Ul'1" St. Cloud ArL':1 (lfCcmr.J .\tinnCS(I[;l. 'lh~ P~mn~'rshi~' sc..'("I."l'SJ.S;l prim;J1YC(llH~l:( lilf hrokers Jnd dl....n:lop":rs ,,-..&in~ blld ;Uld huikti!1~~~ In S'Clrn" lkmiil1 ~llld S!u.lhurtlc Cl'1I11Ii~. ()ur 111l.:J11bcrs induJl.: IhL' ;m.:J cilk:..f>. Cll1Ulfb. lllilili<....,. wlkp.:.." .1Jld univt:r..iti(....,. t1IlJncLll irNiuuiuns. wUJkfim.'"C..",:c.:llIc~ Ul:l~mJ(..li()n. k'goll. ;Etl..'I'Utlling. and tl(m.I'",lit li.,und;ntnm and .;t~(:m.i~ tntc.:r".,.!",J ilJ j()h CT(".ui(l:) and "-1=.inrul hminl."SS Jl,'n.:lllpml."JIt. A..k 1I~ about our 1<hu\"("l- rc..--.nly si!("S. JOHz' 'I"II~ [he Sdl"I1CC InitiJth1.' uf<..xntr::J ~iinnl,"s()r;] and Ihe new G:flrrJ.!.\1iur'k.."S()[J, Bi\l~ckncc l..ol'~. The Minnesota Real Estate Journal will feature on Economic Development 2009 Annual Directory in the April 2009 issue. This directory will profile economic developers, city planners, businesses and organizations that impact economic development on all levels from community to notional. These listings ore 0 great inexpensive way to promote your services and will be utilized by the commercial real estate industry. 3 Easy woys to participate in the directory: Download interactive pdf ot www.rejournals.com. Email: klarson@recg.com & Fox: 952-885-0818. Cost is 5300 for each listing. Deadline is Marcn 31 sf. "orne: Company: Address: City: Phone: Fox: State: Zip: Emoil: Website: Authorized Signature: Professional Bio (100 Words) to: Questions? Contact Karen Larson · klarson@recg.com · 952.405.7784 - -&., .,,- - A ~-.... c-'~ J ~..J. ~... Sponsor the Next if Little Miss or Miss Farmington Ambassador! II II Plans for the 2009 Miss Farmington Pageant to be held on June 18, 2009, are underway. Each year businesses are asked to sponsor a Little Miss or Miss candidate. Benefits include advertisements and articles in the Farmington Independent listing the candidate and her sponsor. The sponsor will be listed in all programs, announced at the pageant, and will escort their candidate on stage at the pageant. The royalty will attend parades and special events in the II surrounding communities where the sponsor's name will be announced. Car;Jdidates will display Dew Days buttons for the residents to purchase at their sponsor's business. The cost to sponsor a candidate and receive these benefits is $125. II If you know of a young lady you would like to sponsor, please encourage he11to apply. Age groups are Miss: 17 - 21 years of age and Little Miss: 2nd - 3,d grade. Deadline for candidate applications is April 3, 2009. II Candidates must have sponsor information If h . 1:1 II d. b M h d'd you ave questions pease ca tume In y ay 8, 2009. "'! en can. I ~tes Cindy Muller at 651-280-6803 or contact y~u, please become Involved In ~hls Sarah Miller at 651-463l'1507. community event and promote your business! II The Economic Development Authority [EDA] is comprised of the City Council members: Chair Christy Jo Fogarty, Vice- Chair Steve Wilson, Terry Donnelly, Mayor Todd Larson, and Julie May. The EDA meets on the 4th Monday of the month at 7:00 p.m., in the Council Chambers at City April 2009 ."" U,," THO Ull", THtJ FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Page 2 Farmington Economic Update MORNINGSTAR INVESTMENT RESEARCH CENTER Available through Dakota County Library website! I, In today's economic environment, how to allocate retirement funds and other investments is of particular interest to businesses and their employees. The Farmington Branch of the Dakota County Library has free access to electronic resources to guide these types of decisions. Morningstar Investment Research Center has ratings and investment information on thousands of stocks and mutual funds to help you manage your valuable investments. . Connect to Morningstar from work, from home or stop in to use it on one of the library's computer workstations. . Find this resource and more by visiting the Dakota County Library website at www.dakotacoun1v.us/library and clicking on "Research Tools." A library card and PIN are required to access most of the tools. ~~ e~~:;::.~:;:: :J......- p'", ,{;".~:ii:"_" "_'M.~~;:~'i;~f '''''_.=c.~'il''''''''tr~g~~ Public Internet workstations and wireless Internet access at the library MnRNINGSlAlr :C"::::~_H' ............-........ ..._....~..... ...><... c_~ 0- - help keep business people connected. The library's physical collection ~..c.,.;::..,,_.. -'.-_..... -...- includes books, audiobooks, and audiovisual materials on business SIDds Fund~ H~ Inl1ustrifll; Portt't'Jli(lX.~ ~ ~:"I .~:.. =. :::::J llff.:' topics. ~". . ,.. ,- For more information and research assistance, call 651-438-0250. ....---........, -.-------,,,,"' .......-, -- -..-- -.........--..... --...,-....- ",-..-..-.' ...,-...-......... -..,......_..-..0-.- ....-.....---.. ......._........~...... -...-....- -.......---- ,,-..-......-, The library is located at 508 Third Street in Farmington. .~ .~ .m__L~_ '~_'l'1o"'."'_'" Hours are - 12-8:30 p.m. Monday through Wednesday and 10 a.m.-5:30 p.m. Thursday through Saturday. .. .m_..__._.._m..............._..._..m......... .-.... ........ .. .. ,f' m ....._ __. _ .__. __ ..........._._____lQ.' ........ ..1'"....-,:;,;...,.. . Annual Overweight Permit Now Available for Farmington Businesses -.ro._ _.......,.,. ___-..._1_ ~- laTY OF FARMINGTONI_____ 96 BUSINESSES THAT HAVE CLOSED OR RELOCATED OUTSIDE OF FARMINGTON (2008-2004) BUSINESS NAME YEAR BACKGROUND INFORMATION MINI SMART (BP GAS) 2008 Closed shortly after reopening. Ken was copied on letter from Department of Agriculture. COUNTRY LANE CAFE 2008 Manager indicated that the restaurant would be closing on 12/31/08 due to the economy. Closed as of 11/1/08. Staff noticed a sign posted stating "store closed due to reasons beyond our control." Staff contacted St. MOTOR PARTS SERVICE 2008 Paul store which indicated that the lakeville, Hastings, and Farmington locations were consolidating with the St. Paul location. TED'S PIZZA 2008 Unknown at this time (10/22/08). landlord is trying to reach the owner. Moved business to Northfield. Business owner indicated that sales MY EYES...MY HEART... 2008 didn't meet her expectations and lack of pedestrian traffic were factors in her decision to move. EL TEQUILA 2008 Phone number disconnected. unable to reach owners. legal issues??? Moved out in February. Business contact indicated that they YAMAHA GOLF &. UTILITY 2008 bought another distributor and consolidated with their Burnsville location. Understood that this home based business came into town with BUGBEE'S LOCKSMITH 2008 the annexation of the residential property. The home where the business was out of went into foreclosure. Tried phoneD on 6/2/08 and it is disconnected. QUALITY CREDIT 2008 Owner indicated that he closed his business due to regulation chamzes. VART HEM 2008 Personal health and financial difficulties. GREAT CLIPS, DOWNTOWN 2008 Downtown location was closed because they weren't busy enough. Consolidated with location on Pilot Knob Road. SERVICEMASTER SOUTH METRO 2008 Moved out Feb. 1, 2008 to consolidate all offices into one location. Now located in Northfield. 2008 Count 12 CARLSON WAGON-LIT 2007 Merged with Apple Valley office. EDINA REALTY 2007 Built a new Apple Valley office and merged with that location. HOMETOWN FLOORING 2007 Closed due to bankruptcy. IMAGINATION DAYCARE &. PRESCHOOL 2007 Evicted from rental space. Fire Marshal mentioned that they closed due to market and are LAMPERTS LUMBER YARD 2007 consolidating into Lakeville location. Sales did not meet expectations. The business closed and has subsequently been purchased. We expect it to reopen with a new MEMORY CREEK 2007 name and new management. The Building Official noticed that this company left town in July, STREAMLINERS INC. 2007 2007. 2007 Count 7 Relocated to Lakeville; needed more space but could not find BASS FLEXIBLE PACKAGING land or a building of the right size and/or at an acceptable price 2006 within Farmington. BP GAS STATION (Hi2hwav 3) 2006 Closed, reason unknown. Former Tom Thumb site. 3/19/2009 Reportedly went out of business. Current location of "Cabins to Country Club;" property was annexed from Castle Rock CANNON LOG HOMES 2006 Township in 2005 Parent corporation closed Farmington location due to residential DUEBERS and commercial growth; corporation prefers to be in smaller, less 2006 competitive markets. LADIES WORKOUT EXPRESS Owner went bankrupt. Landlord believes that factors included 2006 limited business hours and low quality exercise equipment. LISA MARIE'S BOUTIQUE 2006 Closed, reportedly due to health of proprietor. MASTERTECH PLASTICS 2006 OWner is in process of selling building. MILLIE'S ANTIQUES Owner of business and building removed inventory to create 2006 space for prospective new tenant. THOROUGHBRED CARPETS Consolidated Farmington inventory with company's main location 2006 in Savage. 2006 Count 9 APRILLE SHOWER'S TEA ROOM 2005 Relocated to Stillwater; in part due to landlord - tenant issues. BUDGET MART (Pilot Knob Road) 2005 Building demolished; land sold for new Kwik Trip. GREAT PERFORMANCES VIDEO & TANNING (Pilot Knob Road) 2005 Building demolished; land sold for new Kwik Trip. OAK STREET GALLERY Landlord believes that local market was saturated (3 framing 2005 shops in close proximity at the time). REACH FOR THE STARS SALON 2005 Closed, reason unknown; current location of DBS Hair Design. WHY USA REAL TV / TRI-ST ATE Closed or relocated, reportedly due, in part, to difficulty meeting MORTGAGE 2005 financial terms of lease. Current site of Fan Club Athletics. WIDE OPEN THROTTLE Landlord reportedly did not renew tenant s Tease. Current site or 2005 ISD 192's classrooms. 2005 Count 7 ASHER CHIROPRACTIC 2004 Death of business owner. BLAHA'S COLLISION CENTER Owner retired from auto bUSiness and sold bUlTclTng to HRA for 2004 future City Hall site. HEART 'N HOME OWners retired from gift shop/craft business. Current site of 2004 Heikkila Studios. NEXTEL PHONE (Pilot Knob Road) Corporate decision to close, based on business volume. Current 2004 site of Cahill Salon. Business sold to competitor who had existing location in PRECISION VALVE Minneapolis; new owner then consolidated operations to 2004 Minneapolis. 2004 Count Grand Count 5 40 3/19/2009