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HomeMy WebLinkAbout11-15-21 CITY OF FARMIN TON Meeting Location: G Farmington City Hall ii 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA November 15, 2021 6:15 PM 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CONSENT AGENDA (a) Approve Meeting Minutes (September 20, 2021 Regular Meeting) (b) Monthly Financial Statement 6. PUBLIC HEARINGS 7. DISCUSSION ITEMS (a) Downtown Banners (b) EDA Funded Programs:2022 (c) 2021 Review and 2022 Work Plan &Calendar 8. DIRECTOR'S REPORT/OTHER BUSINESS (a) SourceLink Activity Report 9. ADJOURN CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON 651-28o-6800 �u1 FarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Approve Meeting Minutes (September 20, 2021 Regular Meeting) DATE: November 15, 2021 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the September 20, 2021 Regular EDA Meeting. ACTION REQUESTED Approve the September 20, 2021 Regular EDA Meeting Minutes. ATTACHMENTS: Type Description D Exhibit September 20, 2021 Regular EDA Meeting Minutes CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES REGULAR MEETING September 20, 2021 1. CALL TO ORDER The meeting was called to order by Community Development Director Samantha DiMaggio at 6:15 p.m. 2. PLEDGE OFALLEGIANCE Director DiMaggio led those in attendance in the Pledge of Allegiance. 3. ROLL CALL Members Present: Bernhjelm,Hoyt,Pearson,Porter,Wilson Members Absent: None Staff Present: David McKnight,City Administrator; Samantha DiMaggio, Community Development Director; Kalley Swift,Community Development Specialist Others Present: Kara Hildreth,Journalist 4. APPROVEAGENDA MOTION by Bernhjelm,second by Hoyt to approve the Agenda.APIF,MOTION CARRIED. S. CONSENT AGENDA MOTION by Bernhjelm,second by Pearson to approve the Consent Agenda as follows: a) Monthly Financial Statement b) Approved Meeting Minutes (June 17, 2021 Special and June 24,2021 Regular Meeting) APIF,MOTION CARRIED. 6. PUBLIC HEARINGS 7. DISCUSSION ITEMS a)Amendment of the EDA By-Laws Director DiMaggio reviewed the amendments made to the EDA By-Laws with the reorganization of the EDA becoming the City Council.Items that referred to state law and/or city ordinance were removed in addition to reflecting new meeting dates,times and overall structure.Director DiMaggio also outlined the new formatting of the individual meetings.The EDA will be less discussion based and more approval and decision-making based.The EDA will let staff know if they like the way items,programs and projects are progressing or if they wish to see change.For example,the EDA won't be designing the new downtown banners and discussing their possibilities.Instead staff has quoted out banner designs and prices from three vendors,staff is bringing those designs to the downtown business coffee&connections next week,the downtown businesses will vote on their favorite(s) and staff will bring forward the top two banner options at the next meeting. Director DiMaggio opened the item up for discussion.Member Wilson asked about the EDA work plan that was created right before the EDA transition.Can the EDA get an update to the work plan?Director DiMaggio will provide the updated calendar at the end of the meeting and it will also be reviewed at the November EDA meeting.Director DiMaggio noted that we are still wrapping up projects the EDA has started this year. MOTION by Bernhjelm,second by Pearson to approve the amendment to the EDA By-Laws. APIF,MOTION CARRIED. b)Appointment of Chair and Vice Chair With the restructuring of the EDA,a new Chair and Vice Chair needs to be appointed to perform the duties for the remainder of 2021.Director DiMaggio asked for volunteers or a call for nominations.Member Wilson is interested in serving as Chair and the group was supportive.Member Bernhjelm was the previous Vice Chair and was comfortable remaining in the position. MOTION by Hoyt,second by Porter to approve the appointment of Member Wilson as Chair of the EDA for the remainder of 2021.APIF,MOTION CARRIED. MOTION by Hoyt,second by Pearson to approve the appointment of Member Bernhjelm as Vice Chair of the EDA for the remainder of 2021.APIF,MOTION CARRIED. c) 2022 Fagade Improvement Program The EDA has funded a Downtown Fagade Improvement Program for the past five years (2017-2021).The grant program was created as an implementation step to reach adopted goals within the Downtown Redevelopment Plan and has been highly successful.There have been 12 facade projects in downtown which has resulted in$293,808.32 worth of fagade investment with an overall ratio of 2.6:1 applicant funding vs.EDA grant funding. After the review of fagade grant applications at the March 2021 EDA meeting,the EDA expressed the desire to change the guidelines of the program for various reasons.These reasons included grant amounts being too high,no scoring or selection process available when the program was over-applied for,the program should be expanded outside of downtown,a desire to highlight minority,women,veteran,immigrant and small businesses, etc.City staff took all suggestions into account and drafted a new version of the fagade grant program.High level changes include changing the name of the program,expanding the geography,addition of a map and scorecard,new timelines and changing grant award maximums.If approved,the new fagade program will go into effect and applications will begin to be accepted starting on January 1, 2022. Specialist Swift opened the room for questions or proposed amendments to the new version of the facade program.Chair Wilson asked if the scorecard could be incorporated into the EDA application review no matter how many applicants and funding requests they receive each year.Staff confirmed that will occur.The EDA approved of the fagade program amendments and saw no issues which should be addressed.Specialist Swift explained that staff will do targeted and direct promotion of the program for the remainder of the year. MOTION by Hoyt,second by Porter to approve the 2022 Fagade Improvement Program APIF,MOTION CARRIED. 8. DIRECTOR'S REPORT&OTHER BUSINESS a) SourceLink Activity Report EDA Regular Meeting Page 2 September 20,2021 Director DiMaggio has implemented the software SourceLink for Director DiMaggio and Specialist Swift to utilize.The software hosts our business list and tracks interactions that we have with city businesses,prospects,developers,etc.The software allows us to see how many interactions we have and for what type of assistance they needed.SourceLink also hosts surveys and will be the new home for BR&E information.In August 2021,staff had 60 interactions with roughly half of the interactions being assisting people with site location assistance. Director DiMaggio reviewed our new quarterly coffee&connections which will begin next week.City staff will host this once a quarter and will focus on different sections of the city for each meeting.The first meeting will be downtown businesses and the December meeting will be Highway 3 businesses. Director DiMaggio reviewed the updated EDA calendar.At the October regular meeting the EDA will review the new BR&E survey,revisit downtown banners and review the remaining EDA funded programs. 9. ADJOURN MOTION by Bernhjelm,second by Porter to adjourn at 6:51 p.m. APIF,MOTION CARRIED. Respectfully submitted, Kalley Swift Community Development Specialist EDA Regular Meeting Page 3 September 20,2021 CITY OF ® 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Samantha DiMaggio SUBJECT: Monthly Financial Statement DATE: November 15, 2021 INTRODUCTION/DISCUSSION Attached is the monthly financial statement of the EDA. ACTION REQUESTED Acknowledge the monthly financial statement and ask any questions you may have of staff. ATTACHMENTS: Type Description © Exhibit Monthly Financial Statement More Robust Financial Report Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2021 2021 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 220,854.90 2000-HRA/ECONOMIC DEVELOPME 1010 CASH-LGA ASSMNT RELIEF 35,000.00' 2000 HRA/ECONOMIC DEVELOPME 1505 PREPAID EXPENSES 1,295.00 2000-HRA/ECONOMIC DEVELOPME 3510 UNRESERVED FUND BALANCE -293,223.81 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS 2,532.59 -2,100.00 2000-HRA/ECONOMIC DEVELOPME 5010 SALES OF ASSETS -34,000.00 0.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -33,333.30 40,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB -122,312.85 -180,474.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 90,881.27 129,430.00 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 6,679.37 10,030.00' 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 6,816.11 9,707.00 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 14,846.30 9,046.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 292.70 790.00 2000-HRA/ECONOMIC DEVELOPME 6220 EQUIP SUPPLIES&PARTS-DBB 58.08' 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS 80.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 26,575.00 11,650.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 2,287.46 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 7,893.30 9,472.00 2000 HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 348.23 540.00 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 13.86 300.00' 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 445.71 130.00 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPME 6455 LEGAL NOTICES 91.50 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,250.00 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,526.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 1,627.95 3,500.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 1,529.71 5,000.00 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 301.84 400.00 2000-HRA/ECONOMIC DEVELOPME 6492 ADVERTISING 0.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINTENANCE 1,296.00 0.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 247.64 195.00 2000-HRA/ECONOMIC DEVELOPME 6550 DEVELOPER PAYMENTS 29,047.98 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 5,142.14 8,000.00 2000-HRA/ECONOMIC DEVELOPME 6950 MACHINERY, EQUIPMENT&TOOLS 27,744.00 2000-HRA/ECONOMIC DEVELOPME 7140 LEGAL&FISCAL FEES 1,230.50 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 -17,384.00 0.00 -17,384.00 0.00 -17,384.00 11/10/2021 1:34:52 PM Page 1 of 1 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Downtown Banners DATE: November 15, 2021 INTRODUCTION[DISCUSSION City staff has received design patterns and bids from three banner providers for new downtown banners. These new banners are intended to be up year-round on 60 light poles downtown on Elm, Third, Oak and Spruce Street.There will be two different banner designs that alternate on the light poles. Staff brought forward the banner vendor options to the September 23rd Coffee&Connections which hosted our downtown businesses. Each vendor had four or five banner design options to choose from and the participating downtown businesses voted on their preferred design(s). Attached for review are the top two vendors with the top two banner options from each vendor. Staff is recommending that the EDA acquire 60 banners for the downtown and is asking the EDA to pick the final banner winner from the top two options-30 of each banner would be ordered. Pricing breakdowns are listed below and on the attachment.The funding for this project would come from the cash reserve available within the EDA budget. City staff has previously proposed to the EDA to set aside $5,000 for banners. Both options fall within that budget allotment. O ption 1—Vendor A Option 2—Vendor B Banner Price $55/each $73/each 60 banners purchased Total$3,300 Total$4,380 Banners: -Custom Pole Banner Size: 18" x45" Same Image Front& Back ACTION REQUESTED 1. Select a banner option to fund through the EDA budget. 2. Make a motion and approve the execution of city staff purchasing the selected banner option with the EDA budget. ATTACHMENTS: Type Description D Exhibit Top Two Banner Options Option 1 - Vendor A RMINGTON Banner Price $55/each 60 Banners Total$3,300 v 1 N F FARMINGTON Option 2 - Vendor B DOWNTOWN • WMINGTON Banner Price 1 $73/each 60 Banners Total$4,380 *Question Marks (??) will disappear [ESTABLISHED 1872] CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: EDA Funded Programs: 2022 DATE: November 15, 2021 INTRODUCTION/DISCUSSION Historically,the EDA has created and funded various programs with numerous objectives. While there has always been good intent behind the creation of these programs,they have been pieced together and there is a need for clearer objectives and an overall cohesive message throughout all programs the EDA funds. City staff is recommending a thorough review, removal or revision of all EDA funded programs at this time so clearer direction can be provided to the EDA and the community for 2022. The city's new Finance Director, Chris Regis, is reviewing the EDA budget so city staff and the EDA can have a better understanding for how much funding is in the budget and available for projects and programs. Director Regis will present a clear overview of the EDA budget in early 2022. For now,the EDA needs to make high-level decisions on the 2022 EDA funded programs so staff can finish revising plans, receive necessary approval from the EDA and promote the programs to the business community for 2022. With a $50,000 allocation from the City Council for 2022,the EDA will need to allocate funds from their cash reserve if they wish to fund any program in addition to the Fagade Improvement Program for 2022. Director Regis believes there is an estimated$220,000 in reserves within the EDA. City staff is recommending the EDA pull$40,000 from their reserves to use in the 2022 budget in addition to the $50,000 annual allocation.That scenario is outlined in the attached 2022 budget outline for discussion purposes. The programs which have received EDA funding within the past two years are outlined below with staff recommendations for funding in 2022. Downtown Facade Improvement Program The EDA approved an updated version to the Downtown Fagade I mprovement Program in September. The new Fagade Improvement Program will accept applications starting on January 1, 2022 and will be reviewed for grant approval in April 2022.The current budget for 2022 is$20,000. Staff recommends an increase from$20,000 to$30,000 for 2022. Redevelopment and Property Reinvestment Program I n 2021,the EDA funded a new pilot program called the Redevelopment and Property Reinvestment Program.Through city adopted plans, it has been acknowledged that redevelopment needs to focus on retaining, reinvesting and reinvigorating underutilized buildings and properties within our commercial and industrial areas. The purpose of the program was to encourage renovations and projects which focus on property, building and code improvements which are otherwise seen as barriers for reinvestment, reuse and redevelopment of a property. It also intended to increase attraction to business properties, help businesses expand the use of the building, provide incentive for necessary building upgrades, etc. The city has also increased fire code inspections on commercial properties which has led to an increase in building owners needing to provide necessary renovations and projects on commercial properties. I n 2021, the EDA budgeted $20,000 with$10,000 grant maximums. Two businesses applied for a total of $17,878.72 in grant dollars for projects that consisted of installing a bathroom with amenities, connecting to city sewer and water, masonry for deteriorating bricks, and tuckpointing along interior and exterior walls. I n total,the projects added $35,757.43 of investment into two commercial properties. City staff is aware of at least two businesses who would be interested in applying for a Redevelopment and Property Reinvestment grant for 2022. Staff recommends the EDA continue this program for 2022 which will allow staff a greater understanding of how this program can positively impact commercial properties in the city. If the EDA agrees with this conclusion, it is recommended that the EDA direct staff to bring forward revised program guidelines and application at the January 2022 EDA meeting for approval. Staff is recommending$30,000 for this program in 2022,with this funding being allocated from the EDA reserve. Site Readiness Program This program was created in 2018 but funding was not dedicated to it until 2021. It received an annual budget of$20,000 with $5,000 grant maximums.The intent of this program is to leverage investment in the development of land for industrial, highway or heavy business use by providing matching grants for preparing sites for development. Eligible projects include infrastructure, site plans, surveys, etc. There was zero interest in the program in 2021 and city staff doesn't feel that this program is serving its intended purpose or is crafted in a beneficial way for our larger property owners. Additionally, $5,000 grants will not incentivize a large property owner to pursue these actions to get land ready for development. Staff believes if the EDA wishes to execute an EDA funded program with these intentions, a larger budget and clear objectives needs to be established. City staff and Council members are currently meeting with large property owners (20 acres or more)to open up a conversation and learn the plans that they have for their land and timelines moving forward for potential development. After these conversations occur for the remainder of 2021 and 2022, staff will have clear direction if this type of program would be beneficial for our community. Staff recommends that this program is not allocated dollars for 2022. Similar ideas to this program will be reviewed at a later date. Public Space Improvement Program This program was created in June 2020 for the EDA to execute numerous "small victories"outlined within city adopted plans.These small victories would provide benefits to all sectors of the public through creation, maintenance and updates to public spaces. City staff has brought forward multiple projects to the EDA since June 2020 to be funded for the outlined program purpose but was unable to execute any of the projects. City staff recommends that this program does not need dedicated funding in 2022 since the EDA has recently purchased holiday decor for the downtown (June 2021 Regular meeting) and new downtown banners are being discussed at this meeting. This program can be renewed at a future date if the need arises. Utility Fee Program This program was created in April 2020 and was directly related to COVI D-19. It provided one-time direct assistance grants for city utility fees for businesses with 100 employees or less company-wide. City staff believes that the program has served its purpose and does not need to be renewed. Conclusion Staff recommends the EDA fund the following programs in 2022: • Fagade Improvement Program-$30,000 • Redevelopment and Property Reinvestment Program-$30,000 Staff recommends the EDA pause or cancel the following programs which means there will be no dedicated funding for the following programs in 2022: • Site Readiness Program (Could be revived after large property owner input in 2021 and 2022). • Public Space I mprovement Program (No funding necessary in 2022 due to multiple public sector improvements in 2021). • Utility Fee Program (No longer relevant). ACTION REQUESTED 1. Discuss and direct city staff on providing another pilot year for the Redevelopment and Property Reinvestment Program. a. If this program continues, direct staff to bring forward revised guidelines and application to the January 2022 EDA meeting for approval. 2. Discuss utilizing EDA funds from the cash reserve portion of the EDA budget for increasing the Fa§ade Improvement Program and Redevelopment and Reinvestment Program to$30,000 annual allocations each for 2022. 3. A motion should be made to transfer$40,000 from the EDA cash reserve into the 2022 budget. ATTACHMENTS: Type Description © Exhibit 2022 EDA Budget Outline Budget Input Form - 2022 Object Actual Actual Budget 2021 Proposed Budget Finance 2022 Proposed Budget Staff Proposed Account 2020 2021 2021 Comments Proposed Comments 2022 2022 4011 -CURRENT PROPERTY TAX 0 0 4020-TAX INCREMENT EXCESS 0 0 4404-FEDERAL GRANT 0 0 4460-COUNTY MISCELLANEOUS 0 0 4516-ADMINISTRATION FEES-PROJECTS 0 0 0 4955-INTEREST ON INVESTMENTS (4,391) (2,328) (2,100) TM 4-29-2020 (2,400) TM 5-14-2021 _.__.._..._ 4960-GAIN/LOSS INVEST MKT VALUE (2,306) 0 4975-RENTAL INCOME 0 0 0 5005-LAND SALES 0 0 5010-SALES OF ASSETS 0 (34,000) 0 5205-OPERATING TRANSFERS (40,000) (30,000) (40,000) See Operating Transfers (50,000) Per Operating Transfers $50,000.00! spreadsheet in spreadsheet in ! Finance/Operating Finance/Operating Transfers By Transfers By Year folder Year folder 5350-MISCELLANEOUS REVENUE 0 0 0 5360-REFUNDS& REIMBURSEMENTS 0 6210-OFFICE SUPPLIES 0 0 6220-EQUIP SUPPLIES& PARTS 0 0 6250-OTHER SUPPLIES&PARTS 0 0 0 6280-BOOKS&SUBSCRIPTIONS 85 80 6401 -PROFESSIONAL SERVICES 2,635 26,575 11,650 Downtown/Hwy 3 11,650 Downtown/Hwy 3 $0.00 implementation+ implementation+ Board/Commission Board/Commission stipends stipends $1,650 $1,650 6401 -PROFESSIONAL SERVICES 0 0 6403-LEGAL 84 2,251 2,000 2,000 $2,000.00 6404-IT SERVICES 8,767 7,104, 9,472 This line item is for the 11,316 This line item is for the $12,516.00 chargeback of each area's chargeback of each area's share of internal IT share of internal IT charges.6- charges.TM 8-20-2020 15-2021 TM 6421 -MUNICIPAL SERVICES 0 0 0 6422-ELECTRIC 246 14 300 EDA sign 0 $0.00 6423-NATURAL GAS 0 01 0 Object Actual Actual Budget 2021 Proposed Budget Finance 2022 Proposed Budget Staff Proposed Account 2020 2021 2021 Comments Proposed Comments 2022 2022 6426-INSURANCE 121 397 130 This is for property and 550 This is for property and liability $0.00 liability insurance insurance premiums. premiums. 6445-POSTAGE/SHIPPING FEES 0 0 6450-OUTSIDE PRINTING 0 0 500 BR&E cards and collateral 500 BR&E cards and collateral $500.00 6455-LEGAL NOTICES 0 92 6460-MEMBER DUES& LICENSURE 795 1,250 2,000 Staff dues 2,000 Staff dues $1,000.00 6470-TRAINING&SUBSISTANCE 1,679 990 3,500 Training and conferences 3,000 Training and conferences $3,000.00" 6485-MILEAGE REIMBURSEMENT 21 195 400 400 $400.00 6492-ADVERTISING 0 0 2,500 2,500 $2,500.00 6505-EQUIPMENT REPAIR/MAINTENANCE 13 1,296 0 6515-BUILDING REPAIR/MAINTENANCE 0 0 0 6550-DEVELOPER PAYMENTS 20,000 7,803 *30,000 for Fagade and $60,000.00 $30,000 for Redevelopment& Reinvesetment 6570-PROGRAMMING EXPENSE 11,114 5,110 8,000 Open to Business,Real 8,000 Open to Business, Real estate $8,000.00 estate database database 6910-LAND 0 6915-BUILDING&STRUCTURE 0 0 6950-MACHINERY, EQUIP&TOOLS 27,744 7140-LEGAL& FISCAL FEES 1,231 7310-OPERATING TRANSFERS 0 0 0 7420-OTHER 0 0 0 2022 Operating Transfer $50,000.00 *2022 Transfer From Cash Reserve (Reserve Balance is'$220,000) $40,000.00 2022 Expenditures $89,916.00 (1,150) 55,782 (17,384) 1 (8,684)1 Year End Balance $84.00 op Staff Proposed Cash Reserve Balance Transfer in Addition to 2022 Budget staff2022osed From Cash Reserve Beginning Balance $220,000.00 6550-DEVELOPER PAYMENTS 40,000 *Move$40,000 from Cash Reserves Beginning *$10,000 Fagade and$30,000 for $40,000.00 Balance into Developer Payments Redevelopment& Reinvesetment Year End Balance1 $180,000.00 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Samantha DiMaggio SUBJECT: 2021 Review and 2022 Work Plan &Calendar DATE: November 15, 2021 INTRODUCTION/DISCUSSION Review the 2021 accomplishments of the EDA and discuss the 2022 Work Plan and corresponding calendar. ACTION REQUESTED A summary of the 2021 EDA accomplishments has been compiled and will be shared at the Boards and Commissions event on December 2, 2021.The EDA should review this and recommend any updates or modifications. Staff utilized the 2040 Comprehensive Plan to develop a 2022 Economic Development Work Plan and corresponding calendar. The EDA should review these documents and recommend any changes. ATTACHMENTS: Type Description D Exhibit 2022 EDA Work Plan & Calendar CITYOF FARMINGTON 2022 WORK PLAN MINN ECONOMIC DEVELOPMENT AUTHORITY OVERVIEW The Economic Development Authority (EDA) has developed the following 2022 Work Plan to be used as a reference and tool for developing priorities, budgets, goals, and initiatives derived from the City's 2040 Comprehensive Plan. The following documents were also utilized as references on the development of this work plan; 2019-2021 Strategic Plan (2019), the Downtown Redevelopment Plan (2016), the Trunk Highway 3 Corridor Plan (2019) and the ULI Minnesota- Navigating your Completive Future Workshop Key Observations (2017). The Farmington City Council has also outlined the following goals which should also be incorporated into the priorities and initiatives of the EDA: 1. Business Growth- It helps provide more amenities to residents and increase and diversify our tax base. 2. Community Engagement- Engage residents to gather input, provide updates and work to encourage positive promotion of our community. 3. Infrastructure Support- Work to proactively improve and maintain the infrastructure systems throughout the community. MISSION STATEMENT 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, providing convenient shopping options for residents, and expanding and diversifying the tax base through development and redevelopment. To achieve this mission, a key aspect of the EDA's efforts is to promote the retention and expansion of existing businesses, and the attraction of new businesses to the community. COMPREHENSIVE PLAN The Economic Development chapter of the 2040 Comprehensive Plan provides a framework of the activities of the EDA. "The Economic Development Plan (Chapter 9 of the Comprehensive Plan)provides a high level and long-term roadmap for the City of Farmington and its partners(public, private, and nonprofit sectors) to work together to enhance employment, investment and quality of life opportunities that benefit the entire community. The city recognizes that local govemment has a responsibility for creating an environment in which economic development can occur. This plan also serves to examine and strengthen the city's ability to compete effectively and prosper in both the regional and increasingly global economy." 1_IPage The Comprehensive Plan contains eight(8) economic development goals. As part of the process of creating the Strategic Plan in 2019, the EDA validated the importance of these goals for guiding the actions of the EDA by developing a list ranking potential action steps for the EDA to consider: GOAL 1: ➢ A three-year Strategic Plan for Economic Development that provides a dynamic and actionable tool for achieving the community's economic development vision. a. The 2019-2021 Strategic Plan: i. The plan articulates the vision, mission and fundamental principles that guide decision making and actions for the EDA. 1. Vision Statement: • The Economic Development Authority's vision is to improve the economic vitality of the City of Farmington and to enhance the overall quality of life by attracting and retaining businesses, creating partnerships, fostering employment opportunities, promoting workforce housing, business growth, and expanding the tax base through development and redevelopment. 2. Mission Statement: • Farmington is commerce friendly, responsive, and innovative in the realm of economic development. The Economic Development Authority's mission is to position Farmington as one of Minnesota's most desirable cities to open, grow, and maintain a business. ii. The plan provides a framework for identifying potential roles for the EDA, prioritizing use of resources and periodically reviewing actions taken by the EDA. iii. The plan serves as a tool for communicating information about the EDA to the city council, city departments and advisory boards, partner organizations in the economic development community and Farmington residents and businesses. b. Action Step: i. Due to the Covid-19 Pandemic, this plan is still applicable and should be incorporated in the annual work plan until the EDA feels most of the strategic plan has been considered or implemented, at which the plan should be updated. GOALS 2& 3: ➢ Cultivation of strong relationships between existing businesses and the city to increase business retention. ➢ A desirable commercial environment for residents is created through growth from existing and new businesses. a. The 2040 Comprehensive Plan i. The city's economic development strategy generally focuses on enterprise development rather than the attraction or recruitment of outside businesses to relocate to Farmington. This "grow your own"businesses strategy simply means supporting the development of small to medium sized businesses in the community through a variety of proactive measures. Enterprise development is generally recognized as a relatively low-cost economic development strategy that is particulady well-suited for a variety of rural and urban communities. The following factors support the rationale for focusing on a `grow your own"strategy for economic development: b. Action Steps: i. Continue the Business Retention and Expansion Program 1. Implement a long-range survey/tool. a. Future programs and initiatives will be developed based on this data. 2. Conduct 2-3 business visits per month. ii. Continue use of tracking software- Sourcel-ink. 1. Track survey responses and business visits. 2 1 P.age... a. This information will be used for potential program development and future initiatives of the EDA. 2. Ability to develop detailed business lists with contact information. 3. Begin tracking business leads and day to day business contacts. iii. Continue to have active participation in local and regional business groups like the Farmington Business Association and the Dakota County Regional Chamber of Commerce GOALS 4 & 8: ➢ Healthy and diversified growth of existing and new businesses to achieve the community's 2030 and 2040 employment projections. ➢ A well-trained and adaptable workforce is maintained within the community to support the projected business and job growth. a. UL/Minnesota- Navigating your Completive Future Workshop Key Observations (2017) i. Data on demographics, employment and jobs in Farmington, presented at the workshop, offered a point of reference for trends that will affect the city in coming years. b. Action Step: i. The Department of Employment and Economic Development tracks numerous data points, including employment projections. Staff feels that inviting DEED to present annually or once every other year is vital to understanding how the trends and demographics are affecting Farmington and the State of Minnesota. GOAL 5: ➢ Redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas. a. Hwy 3 Corridor Plan (2019) i. Goal 1: Improve the attractiveness and visual cohesiveness of the corridor. 1. Strategy 2: Encourage activation in existing commercial areas through community events. 2. Strategy 4: Utilization of Community Development Block Grant(CDBG), Dakota Community Development Agency(CDA) loan, and grant programs to assist in the cleanup of low to moderate income residential properties. 3. Strategy 5: Consider developing an incentive program for TH 3 properties similar to the Downtown Fagade Improvement Program. b. Action Steps: i. Funds from the sale of the Riste Lot, $22,750, were returned to the CDA and were placed into the Home Improvement Loan Program, which is administered by the CDA. 1. There is currently a waiting list for participants for these funds. Should that change, staff could create a targeted marketing piece to be shared with the community. ii. Staff will continue to review use of CDBG on: 1. Workforce Housing 2. Utilization of the CDBG fund allocations a. Uses, program options and requirements, etc. iii. Staff will meet with vacant land and property owners in the City. 1. This data will be tracked in LOIS 2. GIS maps will be updated showing: a. Current developments 3 1 P a g e iv. Continue to provide incentive grants or loans for business to improve facade and interior improvements as well as explore options to partner with state or federal programs to leverage additional dollars into vital areas of the community. GOAL 6: ➢ Public and private sector reinvestment in downtown to revitalize it as the community's commercial, cultural, and recreational center. a. Downtown Redevelopment Plan (2016) *Items pertaining to the EDA. i. Refurbish vacant historic buildings and other commercial buildings. 1. Exteriors and interiors, some buildings with restored exteriors are in need of significant interior improvements to be attractive to potential tenants. 2. Downtown's low rental rates for commercial space create a financing gap for building improvements, so public or non-profit involvement in funding could be critical to jumpstart this initiative. ii. Proactively support the retention of and improvements to current civic/municipal destinations and expand events in downtown. 1. Cun'ent and potential downtown events include Farmers'Market, Dew Days, Car Show, and Dazzle Day, which are important for attracting people to downtown and also serve as a cost-effective form of downtown marketing. iii. Redevelop vacant and under-utilized sites for new business and possibly housing. 1. Southwest comer of Highway 50& 3rd Street as a critical downtown gateway development opportunity. 2. North side of Highway 50 between 3rd and 4th Streets. 3. Sites near Oak and 2nd Street intersection iv. Improve and add outdoor public space for informal gathering places and events. 1. Refurbish Depot Way Arts Park. 2. Create 2nd Street farmers'market pavilion and open space. v. Strengthen downtown identity and wayfinding. 1. Add downtown gateway signage on Highways 50 and 3. 2. Add wayfinding signage, e.g. bike trails, parking. vi. Redevelop sites to provide new housing options in Farmington. 1. Redevelop area west of rail line, north and south of Spruce Street, with apartments or a mix of apartments and rowhouses. 2. Redevelop half block on Walnut Street, between 3rd and 4th Street, with townhouses similar to the north half of the same block. vii. Redevelop Riverside West. 1. Redevelop the commercial site furthest from Hwy 50 with residential building(s) next to the rivers open space long-term. viii. Redevelop Riverside North. 1. Redevelop sites along Pine Street with downtown townhouse and apartment living options. b. Action Steps: i. Continue to administer fagade and redevelopment programs as grants or loans. ii. Encourage reinvestment in the downtown as well as the expansion of our commercial base and cultural and recreational events. iii. Assist with the 2040 Comprehensive Plan update and ensure areas downtown are rezoned accordingly to promote specific future redevelopment in downtown to align with all city-adopted plans. iv. Revisit Downtown branding and advocate for city-wide signage. 4 1 P a g e GOALS 7: ➢ Diverse housing options and quality of life amenities that support the needs and preferences of the community's workforce into the future. a. ULI Minnesota-Navigating your Completive Future Workshop Key Observations (2017) i. Housing can provide an important component for downtown vitality. Gen Y and Boomers are attracted to authentic downtown environments, especially those that offer affordable housing opportunities and unique dining venues. Creating a greater residential density in close proximity to downtown benefits retailers and service providers and maybe a counter punch to traditional single-family neighborhoods in the northwest part of the city. As density grows in the downtown area ensuring that businesses cater to these residents will be important to the vitality of the area with more frequent evening hours of operation and programmed activities. b. Action Steps: i. Continue to work with the CDA for their current workforce housing in the city to ensure it stays viable. ii. Also work with the CDA for the development of future workforce housing on land they own along Denmark Avenue as residential developments fill in around the site to the west and south. 2022 EDA WORKING CALENDAR *Calendar is subject to change. r r N N N N N N N N N N N N N N N N N N N N N N N N N 00 N 00 N 00 (D O 00 V) O r O co IT LO CO fl- 00 O O � r r O O O O O O O O O r r « Revisit Downtown Branding X Discuss Redevelopment& Property Investment Programs X Review of 2021 EDA Activities, 2022 Work Plan &Calendar X EDA Work Plan/Calendar for 2022 X Boards &Commission Event X EDA Organizational Meeting X Update Redevelopment Program X Update Business Subsidy Policy X Favor Farmington Program Review X Award Fa ade Grants I X DEED Presentation I I I I X TBD 2021 ACTIVITY REVIEW A. Downtown Fagade Improvement Program • Total EDA Grants Awarded: $21,000 • Total Project Investments into Downtown: $106,648.42 a. 310 Third Street (Dakota Motors Building) - $7,000 grant for the installation of siding, paint, stucco, window frames. Total project cost was $26,391.42 51Page b. 301 Elm Street (Linn's Carpet) - $7,000 grant for tuckpointing, paint, awnings, flowerpots. Total project cost was $55,000 c. 345 Third Street (Fletcher Building) - $7,000 grant for cleaning and painting bricks, removing, and installing new trim and shutters, and window replacement. Total project cost was $25,257. • The Fagade Improvement Program was updated with a geographic expansion to include downtown and the Highway 3 corridor. B. Redevelopment and Property Reinvestment Program • Total EDA Grants Awarded: $17,878.72 • Total Project Investments: $35,757.43 a. 3282 220th Street W(Summit Landscaping) - $9,003.72 grant for installation of sewer and water and building a restroom. Total project cost was $18,007.43 b. 345 Third Street (Fletcher Building - Heikkila Studios) - $8,875 grant for masonry and tuckpointing. Total project cost is$17,750 C. Sale of Assets • Sale of Riste Lot(209 Oak Street)to Homestead Community Church for$35,000. D. Purchases • Holiday lights for downtown ($27,744) • Subscription to SourceLink, a new CRM software for city staff to better keep track of our local businesses, business needs, and encounters. ($1,200). 61_Page CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 ®® 1 O Farmington MN.gov TO: Economic Development Authority FROM: Samantha DiMaggio SUBJECT: SourceLink Activity Report DATE: November 15, 2021 INTRODUCTION/DISCUSSION Please see the attached activity report generated by SourceLink for September 1, 2021-October 31, 2021. ACTION REQUESTED Review the attached activity report and ask any questions you may have of staff. ATTACHMENTS: Type Description D Exhibit SourceLink Activity Report Activity Overview for City of Farmington MN 9/11/2021 -10/31/2021 Incoming Requests Counf Follow Ups', Count Surveys Completed Count .. . Email 105 Follow-up 3 Paper 0 Initial-Email 2 3 Email 0 Initial-Mailing 3 0 Initial-Phone 3 Meeting 15 Phone Call 5 Total Incoming Requests 133 Total for All Typesi 137 New Measurable Clients i 0 Top 10 Assistance Requested i Total: 126 Client Status i Total: 40 Assistance Type ;, Count Status Coapt£} Customer Relations 28 Active Client 28 Startup Assistance 28 No Response 9 Site Location Assistance 27 Prospective Client 3 Property Development 15 Total: 40 Grants,General 11 Strategic Planning Assistance 10 Business Planning Assistance 3 Regulatory Compliance 2 Process Development 1 Loans 1 Total: 126 Referred To Total: �., Referral,CategOry Receiving Organization Count Total: Followup Results 3 Categary � Count,, Neutral Outcome 1 No Response 2 3 Report RF315 Wednesday,November 10,2021 1`:42 PM Page 1 of Activity Overview for City of Farmington MN 9/1/2021 -10/31/2021 Incoming Referrals i Total: 133 Referral Categoryry ", Referring Organiatron. Lead Count ' 133 Total: 133 By City and State of Client for Incoming Requests i Total: 133 State, City Lead Count , 21 Total 21 Farmington 2 Total 2 MN Faribault 4 Farmington 86 Lakeville 2 Minneapolis 14 North Branch 4 Total 110 Total: 133 Report RF315 Wednesday, November 10,'2021 1:42 PM Page 2 of 2