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HomeMy WebLinkAbout01-18-22 CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street _r_ Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA January 18, 2022 6:00 PM 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENTAGENDA (a) Open to Business--Joint Powers Agreement (b) Monthly Financial Statement (c) Meeting Minutes (November 15, 2021 Regular Meeting) 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) 2022 Redevelopment and Property Reinvestment Program 9. DIRECTOR'S REPORT (a) Sourcel-ink Activity Reports 10. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Samantha DiMaggio- EDA Executive Director SUBJECT: Open to Business--Joint Powers Agreement DATE: January 18, 2022 INTRODUCTION/DISCUSSION The Open to Business Program was started in Dakota County in 2013 as a county-wide effort to offer expert technical assistance and additional financial resources to small businesses and entrepreneurs. The program continues to gain recognition and have an impact on our small business economy. As a county-wide effort, cities in Dakota County wishing to participate in the program enter into a joint powers agreement(JPA)with the Dakota County Community Development Agency(CDA). The CDA is the agency that holds the contract for services with the Metropolitan Consortium of Community Developers (MCCD)to operate the Open to Business Program. The CDA and MCCD have approved a two-year agreement effective January 1, 2022,through December 31, 2023. Natalie Mouilso has been the Dakota County OTB business advisor since August 2020. Ms. Mouilso provides one-on-one technical assistance to business owners and aspiring entrepreneurs on a wide range of topics including: business plan development,feasibility analysis, marketing, licensing, and cash flow and other financial projection development. Ms. Mouilso has taken significant strides in the last year to rebuild and expand relationships with partners (chambers of commerce, lending agencies, County library system, etc.), which has significantly increased the visibility and knowledge of OTB. Ms. Mouilso has created new programs including Business Boot Camp and Q&A webinars with University of Minnesota Law School to answer legal questions.The participating cities have expressed enthusiastic support for Ms. Mouilso continuing as the dedicated OTB advisor for the next two years. The total program fee for services offered throughout Dakota County is $150,000. The CDA continues to cover over 50%of this fee with the remainder distributed amongst the participating cities in Dakota County according to population. Farmington's fee for 2022-2023 is$5,150 per year. The master Contract for Services between the CDA and MCCD along with the Joint Powers Agreement are attached. Staff recommends continued participation in this program as it remains a strong resource for small business growth and entrepreneurs in Farmington. ACTION REQUESTED Authorize the execution of the Open to Business Joint Powers Agreement between the Farmington Economic Development Authority and the Dakota County Community Development Agency as well as authorize the annual allocation of$5,150. ATTACHMENTS: Type Description [5 Backup Material Joint Powers Agreement JOINT POWERS AGREEMENT Open to Business Program THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of DATE, by and between the DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (the "CDA"), a public body corporate and politic organized and existing under the laws of the State of Minnesota (the "State"), and each of the BURNSVILLE ECONOMIC DEVELOPMENT AUTHORITY, CITY OF LAKEVILLE, CITY OF MENDOTA HEIGHTS, INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY, EAGAN ECONOMIC DEVELOPMENT AUTHORITY, HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY, ROSEMOUNT PORT AUTHORITY, FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, AND WEST ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA (each individually a "Local Government Entity" and together the "Local Government Entities"), each a political subdivision of the State. RECITALS: A. In order to pursue common goals of fostering economic development,the CDA and the Local Government Entity Cities desire to engage the Metropolitan Consortium of Community Developers, a Minnesota non-profit corporation ("MCCD") to undertake the "Open To Business Program" (the"Program")within Dakota County (the"County"). B. Pursuant to the Program, MCCD will provide technical assistance and access to capital to small business and potential entrepreneurs in the County. C. The CDA and the Local Government Entities propose to jointly exercise their common economic development powers to undertake the Program. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the CDA and each of the Local Government Entities, each party does hereby represent, covenant and agree with the others as follows: Section 1. Representations. Each of the Local Government Entities and the CDA makes the following representations as to itself as the basis for the undertaking on its part herein contained: (a) It is a political subdivision of the State of Minnesota with the power to enter into this Agreement and carry out its obligations hereunder. Joint Powers Agreement (b) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which it is now a party or by which it is bound,or constitutes an event of default under any of the foregoing. Section 2. Powers to be Exercised. The powers to be jointly exercised pursuant to this Agreement are the powers of the CDA and the Local Government Entities under Minnesota Statutes, Chapter 469, to undertake activities to promote economic development within their respective jurisdictions. Section 3. Method for Exercising Common Powers; Funds. The CDA, on its own behalf and on behalf of the Local Government Entities, will initially enter into an agreement with MCCD in substantially the form attached hereto as Exhibit A (the "Agreement") to engage MCCD to operate the Program within Dakota County. The CDA and each of the Local Government Entities will make payments to MCCD as described in Exhibit A of the Agreement. The CDA may from time to time execute and deliver documents amending, modifying or extending the Agreement as it deems necessary or convenient, provided, that no such document will adversely affect services provided to, or amounts payable by, any Local Government Entity without the prior written consent of such Local Government Entity. Section 4. Limited Liability. Neither the CDA nor the any of the Local Government Entities shall be liable for the acts or omissions of the other in connection with the activities to be undertaken pursuant to this Agreement. To the extent permitted by law, (a) the CDA hereby indemnifies the Local Government Entities for costs associated with claims made against the Local Government Entities directly relating to actions taken by the CDA, and (b) each Local Government Entity hereby indemnifies the CDA for costs associated with claims made against the CDA directly relating to actions taken by such Local Government Entity. Nothing herein shall be deemed a waiver by the indemnifying party of the limits on liability set forth in Minnesota Statutes, Chapter 466; and the indemnifying party shall not be required to pay, on behalf of the indemnified party, any amounts in excess of the limits on liability set forth in Minnesota Statutes, Section 466.04, less any amounts the indemnifying party is required to pay on behalf of itself, its officers, agents and employees for claims arising out of the same occurrence. Section 5. Conflict of Interests; Representatives Not Individually Liable. The CDA and each of the Local Government Entities, to the best of its knowledge, represents and agrees that no member, official or employee of their respective bodies shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official or employee of the CDA or any Local Government Entity shall be personally liable with respect to any default or breach by any of them or for any amount which may become due to the other parry or successor or on any obligations under the terms of this Agreement. 2 Joint Powers Agreement Section 6. Term; Distribution of Property. The term of this Agreement shall expire on December 31, 2023. There is no property which will be acquired by the CDA or any Local Government Entity pursuant to the Program which would need to be distributed at the end of the term hereof. Section 7. Notices and Demands. A notice, demand or other communication under this Agreement by any party to another shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally to the person and at the addresses identified on each signature page hereto, or at such other address with respect to either such party as that parry may, from time to time, designate in writing and forward to the other as provided in this Section. Section 8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. [Remainder of page intentionally left blank] 3 Joint Powers Agreement IN WITNESS WHEREOF, the CDA and the Local Government Entities have caused this Agreement to be duly executed in their respective names and behalf as of the date first above written,with actual execution on the dates set forth below. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Dated: By Its Executive Director Notice Address: Dakota County Community Development Agency 1228 Town Centre Drive Eagan,MN 55123 Attn: Lisa Alfson, Director of Community and Economic Development S - 1 Joint Powers Agreement EAGAN ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 3830 Pilot Knob Road Eagan,MN 55122 Attn: S - 2 Joint Powers Agreement BURNSVILLE ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its City Manager By Its Notice Address: 100 Civic Center Parkway Burnsville, MN 55337 Attn: City Manager S - 3 Joint Powers Agreement CITY OF LAKEVILLE, MINNESOTA Dated: By Its Mayor By Its City Clerk Notice Address: 20195 Holyoke Avenue Lakeville,MN 55044 Attn: Community and Economic Development Director S -4 Joint Powers Agreement CITY OF MENDOTA HEIGHTS Dated: By Its By Its Notice Address: 1101 Victoria Curve Mendota Heights, MN 55118 Attn: Community Development Director S - 5 Joint Powers Agreement APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 7100 147th Street W. Apple Valley, MN 55124 Attn: S - 6 Joint Powers Agreement INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 8150 Barbara Avenue Inver Grove Heights, MN 55077 Attn: S - 7 Joint Powers Agreement HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY Dated: By Its: By John Hinman Its Executive Director Notice Address: 101 East 4th Street Hastings, Minnesota 55033 Attn: Executive Director S - 8 Joint Powers Agreement ROSEMOUNT PORT AUTHORITY Dated: By Its By Its Notice Address: 2875 145th Street Rosemount,MN 55068 Attn: S - 9 Joint Powers Agreement FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 430 Third Street Farmington,MN 55024 Attn: 5 - 10 Joint Powers Agreement SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 125 Third Ave.No. South St.Paul, MN 55075 Attn: Executive Director 5 - 11 Joint Powers Agreement WEST ST. PAUL ECONOMIC DEVELOPMENTAUTHORITY Dated: By Its By Its Notice Address: 1616 Humboldt Avenue West St. Paul, MN 55118 Attn: Executive Director S - 12 Joint Powers Agreement Exhibit A Contract for Services for the Open To Business Program A- 1 Joint Powers Agreement CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON 651-28o-6800 II�IIIv11 ® Farmington MN,gov TO: Economic Development Authority FROM: Samantha DiMaggio- EDA Executive Director SUBJECT: Monthly Financial Statement DATE: January 18, 2022 INTRODUCTION/DISCUSSION Attached is the monthly financial statement of the EDA. ACTION REQUESTED Acknowledge the monthly financial statement for the EDA and ask any questions you may have. ATTACHMENTS: Type Description ❑ Exhibit Monthly Financial Report More Robust Financial Report Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2022 2022 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS -2,400.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -50,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS& REIMBRSMNT-DBB -183,465.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 134,160.00 2000- HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 10,579.00 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 10,638.00 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 21,465.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 833.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 11,650.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 11,316.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES-DBB 1,800.00 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 540.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 550.00 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 500.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 3,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 5,000.00 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 400.00 2000-HRA/ECONOMIC DEVELOPME 6492 ADVERTISING 2,500.00 2000- HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 250.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 8,000.00 Total 2000-HRA/ECONOMIC DEVELOPM -8,684.00 -8,684.00 -8,684.00 1/11/2022 3:48:53 PM Page 1 of 1 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington M N.gov TO: Economic Development Authority FROM: Kalley Swift, Community development Specialist SUBJECT: Meeting Minutes (November 15, 2021 Regular Meeting) DATE: January 18, 2022 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the November 15, 2021 Regular EDA Meeting. ACTION REQUESTED Approve the November 15, 2021 Regular EDA Meeting Minutes. ATTACHMENTS: Type Description D Exhibit November 15, 2021 Regular EDA Meeting Minutes CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES REGULAR MEETING November 15, 2021 1. CALL TO ORDER The meeting was called to order by EDA Chair Wilson at 6:15 p.m. 2. PLEDGE OFALLEGIANCE Chair Wilson led those in attendance in the Pledge of Allegiance. 3. ROLL CALL Members Present: Hoyt,Pearson,Porter,Wilson Members Absent: Bernhjelm 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 Pearson,second by Hoyt to approve the Agenda.APIF,MOTION CARRIED. S. CONSENT AGENDA MOTION by Hoyt,second by Porter to approve the Consent Agenda as follows: a) Approve Meeting Minutes (September 20,2021 Regular Meeting) b) Monthly Financial Statement APIF,MOTION CARRIED. 6. PUBLIC HEARINGS 7. DISCUSSION ITEMS a)Downtown Banners 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.The participating downtown businesses voted on their preferred design(s).The EDA will decide the final design tonight based off of those votes.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.City staff presented the top two banner options. EDA Members asked clarification questions on the vendors,life expectancy of the banners, and adding the word"historic" onto the banners.There was an overall consensus that Vendor B was the preferred downtown banner design option due to the quality of the banner and the top design provided. Page 1 MOTION by Porter,second by Pearson to select Vendor B for the new downtown banner design with the addition of the word"historic"to design#2.APIF,MOTION CARRIED. MOTION by Hoyt,second by Pearson to allocate$5,000 of the EDA budget to purchase the new downtown banners from Vendor B.APIF,MOTION CARRIED. b) EDA Funded Programs:2022 Historically,the EDA has created and funded various programs with numerous objectives. 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.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. City staff outlined previously funded programs through the EDA including the Downtown Fagade Improvement Program,the Redevelopment and Property Reinvestment Program, the Site Readiness Program,the Public Space Improvement Program and the Utility Fee Program. Staff recommends the EDA fund the following programs in 2022: • Facade 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 Improvement Program (No funding necessary in 2022 due to multiple public sector improvements in 2021). • Utility Fee Program (No longer relevant). Member Hoyt had concerns about striking programs.City staff clarified that if the EDA doesn't fund a certain program in 2022 that it would still like to see implemented,staff can work on bringing forward revised guidelines for the program in future years.Staff is trying to set up 2022 for a successful year of grant programs while taking a step back to review and edit programs like site readiness in order to have a successful relaunch in the coming years. MOTION by Pearson,second by Porter to approve the EDA funded programs for 2022 to be the Fagade Improvement Program and the Redevelopment and Property Reinvestment Program with an annual allocation of$30,000 each. APIF,MOTION CARRIED. c) 2021 Review and 2022 Work Plan&Calendar City staff reviewed completed 2021 activities which included two successful grant programs,the sale of the Riste Lot,implementing a CRM with city staff and purchasing holiday lights for the downtown.City staff then reviewed the 2022 Work Plan which will guide all EDA actions,discussions and activities in 2022.Chair Wilson asked if staff could Page 2 connect each item in 2022 with what goal it is working towards or accomplishing within the 2022 Work Plan. MOTION by Hoyt,second by Porter to adopt the 2022 Work Plan and Calendar as presented.APIF,MOTION CARRIED. 8. DIRECTOR'S REPORT&OTHER BUSINESS a) SourceLink Activity Report City staff reviewed the September and October SourceLink Activity Report which included over 100 interactions exchanged between city staff and our businesses,prospects and large land owners. 9. ADJOURN MOTION by Porter,second by Hoyt to adjourn at 6:47 p.m. APIF,MOTION CARRIED. Respectfully submitted, Kalley Swift Community Development Specialist Page 3 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 OFarmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: 2022 Redevelopment and Property Reinvestment Program DATE: January 18, 2022 INTRODUCTION/DISCUSSION At the November 2021 Regular EDA meeting,the EDA approved allocating$30,000 to a Fagade Improvement Program and $30,000 to a Redevelopment and Property Reinvestment Program for 2022. Revised guidelines and application process for the Fagade Improvement Program were already reviewed and approved by the EDA in September 2021 with an application window through March 31, 2022.The EDA will review those grant applications at their April meeting.The EDA is now being asked to review revised guidelines and application process for the Redevelopment and Property Reinvestment Program which if approved will have an application window open through June 30, 2022.The EDA would review those grant applications at their July meeting. The EDA funded a Redevelopment and Property Reinvestment Program in 2021. It was the first year the EDA funded a program of this nature.The intent of the program was to spur investment on commercial and industrial properties to foster property improvements, redevelopment growth and increase the productive use of existing infrastructure within the City of Farmington.These projects focused on property, building and code improvements otherwise seen as barriers for reuse and redevelopment of a property.There were two redevelopment and property reinvestment projects funded in 2021. One project allowed a business to connect to city sanitary sewer and water as well as providing a plumbed bathroom facility on-site. The other project funded exterior work and restoration on a historic building. I n 2021,the EDA expressed the desire to change the guidelines and application process for all EDA funded grant programs. City staff took EDA suggestions into account and drafted a newer version of the Redevelopment and Property Reinvestment Program which is attached for review.The proposed program mimics the updated Facade Improvement Program for better EDA program cohesion. The 2021 version of the Redevelopment and Property Reinvestment Program is also attached for comparison purposes and to review where the program began. Most aspects of the proposed 2022 program remain the same as it was in 2021 to better gauge the success a redevelopment and reinvestment grant program can have, but high-level changes include: • Addition of a scorecard which can be used when the Redevelopment and Property Reinvestment Program has more grant funding requested than grant funding available. • No more rolling applications—Newhard deadlines. The EDA is being asked to review the new Redevelopment and Property Reinvestment Program guidelines and application process as proposed.The EDA can have a discussion and provide suggestions for any changes to the proposed 2022 program at this time. If approved,the Redevelopment and Property Reinvestment Program will go into effect and start accepting applications on March 1,2022. ACTION REQUESTED A motion needs to be made to accept the 2022 Redevelopment and Property Reinvestment Program as presented or with proposed amendments. ATTACHMENTS: Type Description D Exhibit Proposed 2022 Redevelopment and Property Reinvestment Program Guidelines D Exhibit Proposed 2022 Redevelopment and Property Reinvestment Program Application D Exhibit 2021 Redevelopment and Property Reinvestment Program Guidelines -Pilot Year Redevelopment and Property Reinvestment Program Guidelines 2022 CITY OF FARMINGTON City of Farmington Redevelopment and Property Reinvestment Program Program Objectives In coordination with the EDA Workplan and city adopted plans such as the 2040 Comprehensive Plan, Downtown Redevelopment Plan and Highway 3 Corridor Plan, it has been acknowledged that redevelopment needs to focus on retaining,reinvesting and reinvigorating underutilized buildings within commercial and industrial areas of the city. For 2022,the Economic Development Authority(EDA) has made financial grants available for projects which focus on property,building and code improvements which are otherwise seen as barriers for reinvestment,reuse and redevelopment of a property.The intent of the program is to foster investments and improvements into commercial and industrial properties which fosters business growth, efficiency and increases the productive use of existing infrastructure. Eligible Properties Any property within the City of Farmington where the primary use of the property and building(s) is for business (commercial and/or industrial). If you are unsure if your property is eligible or if you qualify for this program,please contact city staff who will assist you. Eligible Improvements Funds may be used for property,building and code improvements which are permanent and anchored to the site of improvements.The project utilizing grant funds must go towards a project which helps redevelop,maintain and/or expand the variety of business uses on the existing property and infrastructure.Applicants which can outline how the project provides the potential to create or retain jobs as well as increase revenue and/or efficiency of a business operation will receive higher scoring.Please refer to the scoring rubric at the end of these guidelines. Funds may be used for,but not limited to: • Building demolition costs in a project which will redevelop the property. • Construction,renovation or expansion of buildings. • Contamination remediation. • Correcting code violations (city,building and/or fire code). • Installation and connection to city sewer and/or water. • Permanent electrical,plumbing or mechanical work. • Preventing and/or fixing deterioration and blight of structure(s). • Property upgrades to comply with ADA requirements (e.g.install an elevator). • Reconfiguration of interior space to suite a new user or provide lower cost space. • SAC and/or WAC credits. • Sprinkling a building. • Other improvements similar in nature to the above-contact city staff with questions on project eligibility. Ineligible Improvements • Acquisition costs. • Any improvement(s)temporary in nature (furniture,equipment,etc.)which can be removed when the owner/tenant leaves. • Business and operating costs. • Costs to the applicant prior to EDA acceptance and grant agreement execution. Funding The EDA utilizes$30,000 of its annual operating budget to fund the Redevelopment and Property Reinvestment Program and will contribute up to a maximum of 50%of eligible project costs.Grants typically will not exceed$10,000. Only one grant approval is allowed per year per property. All grants require a minimum 1:1 funding match from the applicant. This is a reimbursement program.You must complete and pay for the project in full before you will be issued a reimbursement check.All program requirements must be met and the applicant must provide a receipt of evidence of paid invoice(s)with a breakdown of itemized costs before a reimbursement check is issued. Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review that is determined eligible for designation or is a heritage landmark property will be reviewed as outlined in city code to receive a Certificate of Appropriateness.This requires additional Planning Commission review for the project. Grant Terms &Requirements If approved,a grant agreement will be executed between the applicant and the City of Farmington outlining all requirements which must be met by the applicant before funding is released.Once the grant agreement is executed,the applicant has 90 days to begin the project. The project must be completed by July 1, 2023. If construction work does not begin within 90 days of the grant agreement execution,the grant agreement is null and void.The applicant may apply for one extension if necessary which will be reviewed on a case-by-case basis. Data Privacy All information provided by applicants under the Redevelopment and Property Reinvestment Program shall be maintained in accordance with the Minnesota Data Practices Act. Permits All improvements must obtain any required approvals and/or permits.All construction management is your responsibility. Property Inspections Upon determination that the applicant(s) applying for financial assistance is eligible based on the program guidelines,the Building Official may conduct an inspection of the property to determine if the proposed improvements conform with City of Farmington building code standards. Grant Approval Process Step One: Be sure you meet program requirements • The property receiving grant dollars must be used for business purposes. • The property is up-to-date on all property taxes and is in good standing with the city. • This is a reimbursement program.You must complete and pay for the redevelopment and reinvestment project in full before the EDA will issue a reimbursement check.All program requirements must be met before reimbursement is issued. Step Two: Contact Community Development city staff with any questions you have before applying for the program.Possible project discussion can occur over the phone, email, virtually or in-person.Community Development staff can be reached at 651-280-6800. • Properties which are a designated historic property may require Planning Commission review and approval for a Certificate of Appropriateness before a grant can be approved. Step Three: Submit a completed Redevelopment and Property Reinvestment Program Application. A completed application includes: • Filled-out application. • Photo(s) of current area to be redeveloped and reinvested in. • Rendering and/or plan drawings showing proposed improvement. • Contractor bids (minimum two) with a breakdown of itemized costs. • Proof of insurance on the building and/or property to be improved. Step Four:Application review and grant selection. Completed applications will be accepted from March 1, 2022 —June 30, 2022.All applications must be submitted no later than 4:30 p.m.on June 30.The EDA will award grants at their July 2022 Regular Meeting. Applications competing for funding will be graded and selected based on the scores received. Please reference scoring criteria to review how redevelopment and reinvestment projects will be graded if applications exceed available funding.The EDA reserves the right to approve or reject projects on a case-by-case basis taking into consideration established policies,project criteria and Redevelopment and Property Reinvestment Program demand. Meeting program criteria does not guarantee the award of business assistance to the project.Approval or denial of any project does not set a precedent for approval or denial of another project. Office Use Only-Please leave blank Scoring System 1 2 3 4 5 Rationale Older buildings typically need reinvestment or <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years redevelopment to reach full business capacity Age of Building or capabilities. This criteria aims to support (Built Since 1992) (Built 1991-1962) (Built 1961-1932) (Built 1931-1902) (Built Before 1902) business in older buildings in the community as well as business retention efforts. Statisically,smaller businesses have less cash 5 or Fewer buffer than larger businesses.This criteria Business Size 51+ Employees 26-50 Employees 11-25 Employees 6-10 Employees Employees aims to stablize the ability for all businesses to complete reinvestment or redevelopment projects. Total Cost of the The higher the ratio of private investment vs. Project <$10,000 $10,001420,000 $20,001-$30,000 $30,001-$50,000 $50,001+ public grant dollar investment,the higher the scoring will be. Fair.Poor.or Current Conditions Good:Suitable for Satisfactory:Requires Unsatisfactory: Buildings and properties which need of the Building continued use with some restoration to Conditions adversely redevelopment or reinvestment projects to and/or Property normal maintenance, represent"good" impact building and achieve full business potential will receive condition. business operations higher scoring. in some capacity. Minority,Women, Statisically,M/W/V/I businesses have less cash Veteran and/or No M/W/V/I Ownership is buffer than other businesses.This criteria aims Immigrant Ownership M/W/V/I to stabilize the ability for all businesses to Ownership complete projects. Does the Project Redevelopment and reinvestment grants are Directly Relate To intended to help a business or property owner An Increase In increase business productivity,revenue, Business No - - Yes capacity or employee size.If the project is able Productivity, Revenue,Capacity to accomplish that objecitve,the scoring will or Employee Size? reflect that. Have You Received Redevelopment and reinvestment grants an EDA Grant Yes - - - No intend to be accessible to all businesses. Previously? Preference will be given to those businesses who have not previously received EDA grants. /35 Points CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov Date Submitted:_/_/2022 Redevelopment and Property Reinvestment Program Grant Application SITE ADDRESS FOR PROJECT: Applicant Information NAME: YEAR ESTABLISHED AT THIS LOCATION: CHECK ALL THAT APPLY TO YOU: MINORITY WOMAN VETERAN IMMIGRANT APPLICANT'S BUSINESS NAME (IF APPLICABLE): NUMBER OF EMPLOYEES: EMAIL: PHONE: Property Information PROPERTY OWNER(S): ADDITIONAL BUSINESSES AT THIS LOCATION &EMPLOYEE SIZE (IF MULTI-TENANT): YEAR BUILT: HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA GRANT? YES NO WHAT IS THE CURRENT CONDITION OF THE BUILDING/PROPERTY: Good(Suitable for continued use with normal maintenance) Satisfactory(Requires some updating and restoration to represent"good"conditions) Fair(Requires updating and restoration-conditions may have an impact on building operations) Poor(Requires significant updating and restoration-conditions impact building operations) Unsatisfactory(Requires major restoration or demolition due to unsafe/structurally unsound conditions) Project Information PROPOSED PROJECT DESCRIPTION TOTAL PROPOSED PROJECT COST:$ FUNDING INFORMATION: This program funds up to a maximum amount of 50% of eligible project costs (minimum 1:1 funding match).Grants typically will not exceed$10,000. REQUESTED GRANT AMOUNT:$ Short Answer If applicable to your project,please outline how the project provides the potential to create or retain jobs as well as increase business productivity,revenue, capacity and/or efficiency. Application Requirements Photo(s) of current areas to be redeveloped and reinvested in. Rendering and/or plan drawings showing proposed project. A minimum of two contractor bids and/or proposals with a breakdown of itemized costs. Proof of insurance on the building and/or property to be improved. Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to assess your eligibility for financial assistance.The City will not be able to process your application without this information.The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the information that you are providing to the City is public or private.If financial assistance is provided for the project,the information submitted with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I/We have read the above statement and I/we agree to supply the information to the City with full knowledge of the matters contained in this notice. I/We certify that all statements on this application are true and correct to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification. I/We have read the Redevelopment and Property Reinvestment Program Guidelines and will abide by the rules and regulations set forth in that document. I/We understand that if approved I/we will enter into a grant agreement which further outlines my responsibilities for the project. I/We authorize City staff or other authorized representative of the City the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. I/We authorize program representatives the right to access the property for the purpose of taking photographs before and after the redevelopment and reinvestment project to record progress of the project. I/We understand that I/we are responsible for obtaining appropriate permits if needed.I/we understand that all aspects of project management will be my responsibility. I/We understand that in the case of improvements that do not require a city-issued building permit,the applicant must submit the name and state license number of the contractor completing the work prior to the project occurring and agree to an inspection of the work by a city building official. I/We further understand that I/we will make the final selection of the improvements to be made with the grant funds and that the contract for improvements will be solely between me and the contractor(s).The City will not be liable for the inadequate performance of the contractor(s). Applicant Signature Property Owner Signature (If tenant is the applicant) FARMINGTON Redevelopment and Property Reinvestment Program Guidelines and Application 2021 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov Redevelopment and Property Reinvestment Program In conjunction with various city adopted plans such as the Downtown Redevelopment Plan and Trunk Highway 3 Corridor Plan, it has been acknowledged that redevelopment needs to focus on retaining, reinvesting, and reinvigorating underutilized buildings and properties within our commercial and industrial areas of the city.The Economic Development Authority(EDA) has made funding available to financially assist property owners& leasers for projects which focus on property, building, and code improvements which are otherwise seen as barriers for reinvestment, reuse, and redevelopment of a property, Eligible Properties Any property within the City of Farmington which is within commercial or industrial zoning districts or within a district with a commercial or industrial component.This criteria requires that the property is zoned R-T, 13-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use(MU), Mixed Use Commercial/Residential(MUCR), or Spruce Street Commercial(SCC). Funding Source EDA fund balance of$20,000 for 2020.Grants will be awarded according to the following scale with a $so,000 grant maximum: Grant Amount 1:1 Match Project Amount $1,500 -2,500 $3,000 - 5,000 $2,501-5,000 $5,001- 10,000 $5,001-10,000 $10,001-20,000+ Grant Term and Requirements No more than one grant may be granted per property within one year from the initial application.A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs, the applicant must contribute at least one dollar.The grant amount to be awarded shall be $1,500 up to $10,000 according to the scale. Program Objectives The intent of this program is to leverage investment on commercial and industrial properties to foster property improvements, redevelopment growth,and increase the productive use of existing infrastructure within the City of Farmington.This program is intended to foster projects which focus on property, building, and code improvements which are otherwise seen as barriers for reinvestment, reuse, and redevelopment of a property. Program Definitions Program Administrator The Program Administrator shall be the City of Farmington Economic Development Authority, 43o Third Street, Farmington, MN 55024, phone 651-280-6820. Applicant Any property within the R-T, B-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use (MU), Mixed Use Commercial/Residential(MUCR), or Spruce Street Commercial(SCC) within City of Farmington limits seeking to obtain assistance under the terms of this program. Eligible applicants are: 1, Current Property Owners who are looking to update and fix issues on their property in order to make it more appealing to potential buyers and leasers. 2. Current Property Owners who have underutilized properties and are in dire need of building improvements, code improvements, facility upgrades, and rehabilitation in order to retain and reinvigorate the site/business, increase the property value, and draw additional employees and/or businesses to the site. 3. Leaseholders who are currently leasing a portion or the entirety of a building and are in dire need of building improvements, code improvements, facility upgrades, and rehabilitation in order to retain and reinvigorate their business site and draw additional employees to their business.The owner of the property must also join in with the application and comply with program requirements Building Official The Building Official for the program shall be a City of Farmington employee and shall provide plan review and technical expertise relating to inspections, construction quality, code compliance, and scope of work to be accomplished if required. Project Coordinator The Project Coordinator for the program shall be the Executive Director of the EDA. Target Area Any property zoned R-T, B-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use (MU), Mixed Use Commercial/Residential(MUCR), or Spruce Street Commercial(SSC) within the City of Farmington is eligible. If competing for limited funds, the proposed improvement project will be evaluated upon whether it is an outcome, priority, and/or an objective in a city adopted plan (e.g,Trunk Highway 3 Corridor Plan, Downtown Redevelopment Plan, etc.) Eligible Improvements Funds may be used for property, building, and code improvements which are permanent and anchored to the site of improvements(e.g. projects focused on mechanical, electrical, plumbing, etc.).The project being funded needs to be improvements which will help redevelop, maintain, and/or expand the variety of options for use of the existing property and infrastructure. Funds may be used for, but not limited to: Correcting/improving code violations - Paving, resurfacing, correcting handicap accessibility issues, etc. Fixing or preventing deterioration/blight of structure(s). Roofing, siding,windows, and doors. Sealing air leaks around floors, walls, ceilings, windows, doors, and fireplaces. Plumbing - Repair and replacement of fixtures and appliances, filtration systems, backflow prevention, line and hose repair and replacement, sump pump, etc. Elevator install/update. Heating and air conditioning systems, HVAC controls, ventilation, etc. Solar panels, green energy upgrades, energy efficient windows, skylights, etc. Contamination remediation. SAC Credits. Insulation in an attic, crawl space, basement, and exterior walls. Sprinkling a building. Demolition. Reconfiguration of interior space to suite a new user or provide lower cost space. Ineligible Improvements Any improvements(furniture, equipment, etc.)which can be removed when the owner/tenant leaves. Business and operating costs. Acquisition costs. Costs prior to acceptance of application. Special Conditions Contractors All project work undertaken with City of Farmington funds must be completed by bona fide contractors who are licensed (as applicable)and provide proof of insurance. Data Privacy All information provided by applicants under the Redevelopment and Property Reinvestment Program shall be maintained in accordance with the Minnesota Data Practices Act. Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review that is for a property determined eligible for designation or is a heritage landmark property will be reviewed as outlined in city code to receive a Certificate of Appropriateness. Procedures Application Intake Applications are accepted on an ongoing basis and are reviewed based upon fund availability and in the order received.Applications will be reviewed for participation in the program based upon the following guidelines: 1. Whether the applicant has clear title to the property to be improved. Prior to project approval, the following will be ascertained: a. Title verification; b. All real estate taxes and any city fees or charges are current; c. All individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; 2. The extent of which the proposed improvement project meets the Redevelopment and Property Reinvestment Program objectives; 3. The degree of the proposed improvement project's overall impact on the surrounding area; 4. Whether the proposed improvement project is identified as an outcome, priority, and/or an objective in a city adopted plan (e.g.Trunk Highway 3 Corridor Plan, Downtown Redevelopment Plan, etc.). If necessary, applications competing for limited funds will be selected based upon the proposed improvement project's applicability of the above criteria. Property Inspections Upon determination that the applicants) applying for financial assistance is eligible based on the program guidelines, the Building Official may conduct an inspection of the property to determine if the proposed improvements conform to City of Farmington building code standards. Scope of Work Upon completion of the initial inspection, the applicants) shall provide a report or elevation drawing indicating any planned improvements.This report will be reviewed by the City of Farmington. Project Approval The final application wiLL be approved by the Farmington EDA, foLLowing review by City of Farmington staff and recommendation of the Project Coordinator. Approval by the Economic Development Authority(EDA) The contract for work to be completed will be between the applicant and the contractor. Once the applicant has accepted a bid, staff will prepare the information for presentation to the EDA. Upon EDA approval, a Grant Agreement will be signed by the applicant and a designated city official.This agreement will outline the terms and conditions of the project, including the city's role and the applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed Upon approval of the work to be done and obtaining the required permits, the contractor will normally have six(6) months in which to complete the awarded contract. If construction work does not begin within go days of the award of contract, the Grant Agreement is null and void; however, the applicant may apply for one extension if necessary. The length of the extension will be determined on a case-by-case basis. Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the applicants)and contractor concerning the completion of work, the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable state law. EDA funds shall not be released to either the applicants) or contractor until such dispute has been settled. Hold Harmless The appLicant(s) and the contractor shall indemnify and hold harmless the City of Farmington, the Farmington EDA, employees, and officials from any damages or liability arising from, or occurring as a result of,the activities funded through this program. EDA Payment All EDA funds will be disbursed by the EDA upon authorization by the applicants)and the City of Farmington. Payments will be made only after all work has been completed according to the authorized scope of work and has been accepted by the applicant(s). Funds will only be released once all improvements are completed to the satisfaction of the city Building Official and final project inspection by the Project Coordinator. Payment may be made directly to the contractor or in reimbursement to the applicants) upon presentation of paid receipts for approved work to the Project Coordinator. Appeals Process Appeals concerning eligibility for the Redevelopment and Property Reinvestment Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator.The coordinator will contact the applicant and attempt to rectify any concerns. A written response will be made within fifteen (15)days. CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON 651-280-6800 @ FarmingtonMN.gov TO: Economic Development Authority FROM: Samantha DiMaggio- EDA Executive Director SUBJECT: SourceLink Activity Reports DATE: January 18, 2022 1 NTRODUCTION/DISCUSSION Please see the attached activity reports generated by SourceLink. ACTION REQUESTED Review the attached activity reports and ask any questions that you may have of staff. ATTACHMENTS: Type Description ❑ Exhibit November- December 2021 ❑ Exhibit August- December 2021 Activity Overview for City of Farmington MN 11/1/2021 - 12/31/2021 Incoming Requests Count.. Follow Ups Count Surreys Completed" Count° .. Email 52 Paper' 0 Initial-Networking 1 Email 0 Initial-Walk-in 3 0 Meeting 5 Phone Call 1 Total Incoming Requests i 62 Total for All Types i 62 New Measurable Clients i 0 Top 10 Assistance Requested i Total: 36 Client Status i Total: 30 Ass4st" T" eX (.Count` Status,-r ° Count Business Planning Assistance 9 Active Client 24 Startup Assistance 7 No Response 4 Customer Relations 7 Prospective Client 2 Property Development 4 Total: 30 Strategic Planning Assistance 3 Grants,General 3 Site Location Assistance 2 Market Research 1 Total: 36 Referred To Total:2 Referral Category Receiving Organization --_Put, �., , No Response Berry Sweet Kitchen,Inc. 1 Resource Partner Farmington Area Public Schools-District 192 1 Total:2 Followup Results Category Count Incoming Referrals 1 Total: 62 Refecial Category Referring`Organization Lead Count . . „.. 62 Total: 62 Report RF315 Wednesday,January 12,2022 1:41 PM Page 1 of 2 Activity Overview for City of Farmington MN 1111/2021 - 12/31/2021 By City and State of Client for Incoming Requests i Total: 62 State Ctty Lead Count Total 5 MN Duluth 4 Faribault 1 Farmington 37 Minneapolis 7 Northfield 2 Rosemount 3 Saint Paul 2 Total 56 WI Eau Claire 1 Total 1 Total: 62 Report RF315 Wednesday,January 12,2022 1:41 PM Page 2 of 2 Activity Overview for City of Farmington MN 8/1/2021"- 12/31/2021 incoming Requests „ .count Follow Ups` Coun1` Surveys Completed Count Email 203 Follow-up 4 Paper 0 Initial-Email 4 4 Email 0 Initial-Mailing 19 0 Initial-Networking 2 Initial-Phone 3 Initial-Walk-in 3 Meeting 24 Phone Call 7 Total Incoming Requests i 265 Total for All Types i 271 New Measurable Clients i 0 Top 10 Assistance Requested i Total: 221 Client Status i Total: 77 Assistance Type Count Status ` Count Site Location Assistance 59 Active Client 59 Startup Assistance 38 No Response 14 Customer Relations 38 Past Client(inactive) 1 Strategic Planning Assistance 29 Prospective Client 3 Property Development 21 Total: 77 Grants,General 14 Business Planning Assistance 12 Non-profit Issues 6 Regulatory Compliance 2 Marketing/Sales 2 Total: 221 Referred To Total:4 Referral Category Receiving OrganizatCount Mentor/Consultant City of Farmington 1 Mentor/Consultant Metropolitan Consortium of Community Developers(MCCD) 1 No Response Berry Sweet Kitchen,Inc. 1 Resource Partner Farmington Area Public Schools-District 192 1 Total:4 Report RF315 Wednesday,January 12,2022 1:44 PM Page 1 of 2 Activity Overview for City of Farmington n MN 8/1/2021 - 12/31/2021 Followup Results 4 Category rr Count- Neutral Outcome 1 No Response 3 4 Incoming Referrals 1 Total: 265 Referral Category Re#ernng aprganization lead Count =- - - - - 265 Total: 265 By City and State of Client for Incoming Requests i Total: 265 State City Lead Count, 37 Total 37 Farmington 2 Total 2 MN and Farmington 1 Apple Valley 2 Duluth 4 Elysian 1 Faribault 5 Farmington 158 Lakeville 2 Medina 1 Minneapolis 31 North Branch 12 Northfield 2 Rosemount 3 Saint Paul 2 Total 224 RI East Greenwich 1 Total 1 WI Eau Claire 1 Total 1 Total: 265 Report RF315 Wednesday,January 12,2022 1:44 PM Page 2 of 2