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HomeMy WebLinkAbout04-18-22 CITY OF FARMINGTON Meeting Location: Farmington City Hall O� 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA April 18, 2022 6:00 PM 1. CALL TO ORDER 2. ROLL CALL 3. APPROVE AGENDA 4. CONSENTAGENDA (a) Meeting Minutes (February 22, 2022 Regular Meeting) (b) Meeting Minutes (February 28, 2022 Special Meeting) (c) Monthly Financial Statement 5. PUBLIC HEARINGS 6. DISCUSSION ITEMS (a) Review Fagade I mprovement Program Application—409 Third Street (b) Review Fagade I mprovement Program Application—345 Third Street (c) Review Facade I mprovement Program Application—916 Eighth Street (d) Unallocated Fagade Improvement Program Funds—2022 7. DIRECTOR'S REPORT 8. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 lu ® Farmington M N.gov TO: Economic Development Authority FROM: Samantha DiMaggio- EDA Executive Director SUBJECT: Meeting Minutes (February 22, 2022 Regular Meeting) DATE: April 18, 2022 INTRODUCTION/DISCUSSION Attached is the draft meeting minutes from the February 22, 2022 Regular EDA Meeting. ACTION REQUESTED Approve the February 22, 2022 Regular EDA Meeting Minutes. ATTACHMENTS: Type Description D Exhibit February 22, 2022 Regular EDA Meeting Minutes CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES REGULAR MEETING February 22, 2022 1. CALL TO ORDER The meeting was called to order by EDA Chair Wilson at 6:00 p.m. 2. ROLL CALL Members Present: Hoyt,Lien,Wilson Members Absent: Bernhjelm,Porter Staff Present: Lynn Gorski,Assistant City Administrator;Samantha DiMaggio, Community Development Director. 3. APPROVEAGENDA MOTION by Hoyt,second by Lien to approve the Agenda.APIF,MOTION CARRIED. 4. CONSENT AGENDA a) Meeting Minutes(January 18,2022) b)Monthly Financial Statement MOTION by Hoyt,second by Lien to approve the Consent Agenda.APIF,MOTION CARRIED. 5. DISCUSSION ITEMS a)Appointment of Chair and Vice Chair MOTION by Hoyt,second by Lien to Appoint Steve Wilson as Chair of the EDA.APIF,MOTION CARRIED. MOTION by Hoyt,second by Wilson to Appoint Nick Lien as Vice Chair of the EDA.APIF, MOTION CARRIED. b.Amendment of the EDA By-Laws MOTION by Hoyt,second by Lien to approve the Amendment of the EDA By-laws.APIF, MOTION CARRIED. c.2022 Business Subsidy Policy Update Staff is recommending the EDA review the Business Subsidy Policy to ensure that it meets the economic development goals of the City and the requirements of the Business Subsidy Act.The EDA started their discussion on the policy and will continue it at the next meeting. 6. ADJOURN MOTION by Hoyt,second Lien by to adjourn. APIF,MOTION CARRIED. Respectfully Submitted, Samantha DiMaggio Executive Director 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: Meeting Minutes (February 28, 2022 Special Meeting) DATE: April 18, 2022 INTRODUCTION/DISCUSSION Attached is the draft meeting minutes from the February 28, 2022 Special EDA Meeting. ACTION REQUESTED Approve the February 28, 2022 Sepcial EDA Meeting Minutes. ATTACHMENTS: Type Description ❑ Exhibit February 28, 2022 Special EDA Meeting Minutes CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES SPECIAL MEETING February 28, 2022 1. CALL TO ORDER The meeting was called to order by EDA Chair Wilson at 1:00 p.m. 2. ROLL CALL Members Present: Hoyt,Lien,Wilson Members Absent: Bernhjelm,Porter Staff Present: Lynn Gorski,Assistant City Administrator; Samantha DiMaggio, Community Development Director; Kalley Swift,Community Development Specialist 3. APPROVEAGENDA MOTION by Hoyt,second by Lien to approve the Agenda.APIF,MOTION CARRIED. 4. CONSENT AGENDA a) Certificate of Completion-Elm Park Limited,Inc. Chair Wilson asked for an overview of the consent agenda item.Director DiMaggio explained that the Farmington HRA and Elm Park Limited,Inc.,the original developer of 115 Elm Street,executed an Amended and Restated Contract for Private Sale on March 17, 1994.As per this agreement,once the development project was complete,the city was to execute and record Exhibit E,Certificate of Completion.City staff is unable to find and validate that this document was signed and recorded as it should have been.In order for the pending sale of 115 Elm Street to occur,a Certificate of Completion needs to now be executed. MOTION by Hoyt,second by Lien to approve the execution of Exhibit E, Certificate of Completion.APIF,MOTION CARRIED. 5. ADJOURN MOTION by Lien,second by Hoyt to adjourn at 1:25 p.m. APIF,MOTION CARRIED. Respectfully submitted, Kalley Swift Community Development Specialist Economic Development Authority Minutes Page 1 of 1 Special Meeting February 28,2022 CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmingtonMN.gov i© TO: Economic Development Authority FROM: Samantha DiMaggio- EDA Executive Director SUBJECT: Monthly Financial Statement DATE: April 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 D Exhibit Monthly Financial Statement More Robust Financial Report Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2022 2022 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 218,590.17 2000-HRA/ECONOMIC DEVELOPME 1010 CASH-LGA ASSMNT RELIEF 35,000.00' 2000-HRA/ECONOMIC DEVELOPME 3510 UNRESERVED FUND BALANCE -201,846.92 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS -420.87 -2,400.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -12,500.01 -50,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB 0.00 -183,465.00'' 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 0.00 134,160.00 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 0.00 10,579.00 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 0.00 10,638.00 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 0.00 21,465.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 0.00 833.00' 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 0.00 11,650.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 0.00 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 2,829.00 11,316.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES-DBB 1,800.00 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 0.00 540.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 121.47 550.00 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,790.00 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 700.00 3,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 0.00 5,000.00 2000-HRA/ECONOMIC DEVELOPME 6480 MEETING EXPENSE 46.82 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 57.12 400.00 2000-HRA/ECONOMIC DEVELOPME 6492 ADVERTISING 0.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 0.00 250.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 0.00 8,000.00 2000-HRA/ECONOMIC DEVELOPME 7310 OPERATING TRANSFERS -44,366.78 0.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 -8,684.00 0.00 -8,684.00 0.00 -8,684.00 4/12/2022 2:40:19 PM Page 1 of 1 CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 �IiIIflilwYl O FarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Review Fagade I mprovement Program Application—409 Third Street DATE: April 18, 2022 INTRODUCTIONIDISCUSSION The EDA has allocated funding for the Fagade Improvement Program for 2022 which allows business owners in downtown or along Highway 3 to apply for a fagade grant for a variety of exterior improvements(cosmetic and/or structural). For 2022,the EDA has allocated up to$30,000 of its annual operating budget to fund the Fagade I mprovement Program. Within the program guidelines, it states that the EDA will contribute up to a maximum of 50%of eligible project costs and that grants typically will not exceed$5,000. A Fagade Improvement Program application has been received for 409 Third Street by property and business owner Ed Endres which is the location for Farmington Pizza Man Bar&Grill. Business(es) at Location: Farmington Pizza Man Bar&Grill Number of Employees:34 Business and Property Owner: Edward Endres Site of Facade Project:409 Third Street Year Building Was Built: 1958 Current Condition of the Building:Good Business Website: https://www.farmingtonpizzaman.com/ Facade Project(s) Utilizing Grant Dollars: New windows,new awnings over the windows on the south and west side of the building,and new light fixtures on the south and west side of the building. Total Project Cost:$21,933 Facade Improvement Grant Dollars Requested:$5,000 Score Card: 26/35 City staff has reviewed the application materials submitted for 409 Third Street and recommends that the EDA approve the Fagade Improvement Grant for$5,000. If approved,city staff will process the execution of a grant agreement between Mr. Endres and the EDA. Attached,please find the general application and pictures/description forthe facade project(s). ACTION REQUESTED Review the Fagade I mprovement Program application for 409 Third Street.The EDA should make a motion to approve or deny the Fagade improvement Program application for$5,000. ATTACHMENTS: Type Description D Exhibit 409 Third Street Application and Renderings D Exhibit 409 Third Street Score Card D Exhibit 409 Third Street Grant Agreement ® 43o Third St., Farmington, MN 55024 FARMINGTON ® 651-28o_680o OFarmingtonMN.gov Date Submitted: / /2022 FaVade Improvement Program Grant Application SITE ADDRESS FOR FACADE PROJECT: 1 C�fit�1 l '� Applicant Information NAME: ai wo d m YEAR ESTABLISHED AT THIS LOCATION: CHECK ALL THAT APPLY TO YOU: MINORITY WOMAN VETERAN IMMIGRANT APPLICANT'S USINESS NAME(IF APPLICABLE): n. NUMBER OF EMPLOYEES: 34 EMAILA&fil irlo ))7�iZ2LtYY}C:r�1Ci ?4rY1ur( LLWPHONE:�( 14L73 1!1T I Property Information PROPERTY OWNER(S): � Vtkt f7l, AA �Yl(CI'-`PS I--- A"o n , !T1 lJ� ADDITIONAL BUSINESSES AT THIS LOCATION&EMPLOYEE SIZE(IF MULTI-TENANT): K)1A YEAR BUILT: HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA FACADE GRANT? YES NO W7Good IS THE CURRENT CONDITION OF THE BUILDING/PROPERTY: (Suitable for continued use with normal maintenance) Satisfactory(Requires some updating and restoration to represent"good"conditions) Fair(Requires updating and restoration-conditions may have an impact on building operations) Poor(Requires significant updating and restoration-conditions impact building operations) Unsatisfactory(Requires major restoration or demolition due to unsafe/structurally unsound conditions) kA Project Information PROPOSED PROJECT DESCRIPTION i,�aw wipctpws ati sl'dG! + s ' TOTAL PROPOSED PROJECT COST:$ FUNDING INFORMATION: This program funds up to a maximum amount of 50%of eligible project costs(minimum 1:1 funding match).Grants typically will not exceed$5,000. REQUESTED GRANT AMOUNT:$ .4 .6J Application Requirements VZnhoto(s) of current facade/areas to be improved �Rendering plan or and drawings showing proposed/ / P g g p posed improvements ✓/A minimum of two contractor bids and/or proposals with a breakdown of itemized costs ✓ Proof of insurance on the building Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to assess your eligibility for financial assistance.The City will not be able to process your application without this information.The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the information that you are providing to the City is public or private.If financial assistance is provided for the project,the information submitted with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I/We have read the above statement and 1/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 Fagade Improvement Program Guidelines and will abide by the rules and regulations set forth in that document. ]/We understand that if approved I/we will enter into a grant agreement which further outlines my responsibilities for the project. I/We authorize City staff or other authorized representative of the City the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. I/We authorize program representatives the right to access the property for the purpose of taking photographs of the structure before and after the facade improvement project. I/We understand that i/we are responsible for obtaining appropriate permits if needed.l/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). %4"/W/ I---- Applicant Signature Property Owner Signature (If tenant is the applicant) '0 Farmington Pizza Man hts-. Awnings Windows Window on north Side will be replaced as well. -AWN y am 3 yo� 3 St. Office Use Only—Please leave blank Scoring System 1 2 3 4 5 Rationale Older buildings will have older fagades. <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years This criteria aims to support business Age of Building ( ) , ( ) ( ) ( ) g community Built Since 1992 Built 1991-1962 Built 1961-1932 Built 1931-1902 Built Before 1902 in older buildings the communi as well as business retention efforts. Statisically,smaller businesses have 5 or Fewer less cash buffer than larger businesses. Business Size 51+Employees 26-50 Employees 11-25 Employees 6-10 Employees Employees This criteria aims to stablize the ability for all businesses to complete fagade projects. The higher the ratio of private Total Cost of the <$5,000 $5,001-$10,000 $10,001-$15,000 $15,001-$20,000 $20,001+ investment vs.public grant dollar Project investment,the higher the scoring will be. Unsatisfactory: Requires major Poor:Requires Fair:Requires Buildings which need larger repairs significant updating updating and Satisfactory:Require and projects beyond faVade should be restoration or Good:Suitable for Current Conditions or restoration. restoration. some restoration to completed first prior to facade of the Building demolition due to Conditions adversely Conditions may have represent"good" continued use with improvements.This program is not unsafe and/or impacts building an impact on condition. normal maintenance intended to be an aesthetic band-aid structurally unsound conditions. operations. building operations. to a building with poor conditions. Minority,Women, Statisically,M/W/V/1 businesses have less cash buffer than other businesses. Veteran and/or No M/W/V/1 _ _ _ Ownership is This criteria aims to stabilize the ability Immigrant Ownership M/W/V/I for all businesses to complete facade Ownership projects. Is the Business Businesses with higher foot traffic Public Facing?(e.g. No - Yes from the public benefit from an Retail,Food, attractive,aesthetically appealing Medical,etc.) storefront. EDA grant programs intend to be accessible to all businesses in the Have You Received eligible program areas.Preference will an EDA Facade Yes - - �JN:] be given to those businesses who have Grant Previously? not previously received facade funding which will be reflected within the iscoring rubric. /35 Points City of Farmington EDA Facade Improvement Program Grant Agreement This Fagade Improvement Grant Agreement(hereinafter referred to as "Agreement")is made and entered into this day of April,2022 by and between Edward M.Endres, Farmington Pizza Man Bar&Grill at 409 Third Street,Farmington,Minnesota (hereinafter referred to as"Grantee") and the City of Farmington Economic Development Authority(EDA),a public body corporate and politic,having its principal offices at 430 Third Street,Farmington,Minnesota (hereinafter referred to as"Grantor"). WHEREAS,the Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the EDA as grants. WHEREAS,the Grantor has established a Facade Improvement Program (hereinafter referred to as "Program") to assist businesses with property fagade improvements,either cosmetic or structural, within the 2022 eligibility boundary along Minnesota Highway 3 and within downtown Farmington; and WHEREAS,the Grantee has applied for Fagade Improvement Program funds for eligible fagade improvements at their property located at 409 Third Street with the tax pin 147700020067 (hereinafter referred to as "Property");and WHEREAS,the Grantor has reviewed the Grantee's application and determined that the proposed fagade improvement project meets the requirements of the Program; and WHEREAS,the Grantee desires to participate in the Program, on the terms and conditions set forth below. NOW,THEREFORE,in consideration of the agreements hereinafter contained,the parties agree as follows: A-Property Improvements: 1. The Grantee agrees and acknowledges that the approved facade improvements (hereinafter referred to as"Improvements")which will be reimbursed are for the project(s) outlined in the Grantee's original application,and are as follows: a. New windows,new awnings over the windows on the south and west side of the building,and new light fixtures on the south and west side of the building. 2. If the Grantee wishes to revise the Improvements receiving grant funding through the Program,the Grantee must submit the revised plans to city staff to be reviewed by the EDA. a. The EDA will review the revised plans at the next earliest Regular EDA Meeting. 3. The Grantee agrees to apply for and receive all necessary permits and approvals from the city and from any other governing authority with jurisdiction over the Property related to the construction of the Improvements prior to work beginning. 4. The Grantee agrees to complete the Improvements in accordance with all applicable laws, rules and regulation,including but not limited to,Farmington City Code,MN Building Code, Fire Code,etc. 1 S. The Grantee shall select the means,method and manner of performing the Agreement requirements and Improvements. B-Improvement Timeline: 1. The Agreement will be terminated 120 days from the date of the Agreement on page 1 if construction work has not yet begun. 2. The Improvements shall be completed in a timely manner and all grant funds must be distributed by or before December 31,2022. a. The Agreement may be extended once,with the length of the extension to be determined on a case-by-case basis.If an extension is necessary,a written extension request shall be made to the Executive Director of the EDA. C-Payment of Program Funds 1. Grant funds will be paid on a reimbursement basis only after all Improvements have been completed according to the authorized scope of work and have been accepted by the Grantor.The cost of complete construction of the Improvements,including out-of-pocket costs for required permitting and approvals,shall be defined as the"Improvement Costs." 2. The Grantee shall be responsible for making the initial payments to all contractors and others involved in the construction and permitting of the Improvements. 3. Upon final completion of the Improvements,the Grantee shall make a request for reimbursement of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000).The request for reimbursement shall include: a. Proof of final inspection for the Improvements. b. After photos of the property reflecting the Improvements made. c. A dated copy of the final itemized invoice(s) that comprised the Improvement Costs or a sworn construction statement. d. Dated proof of payment of said invoice(s) that comprised the Improvement Costs. e. Such other documentation as the EDA staff may require in its reasonable discretion to verify the amount of and payment of the Improvement Costs by the Grantee. f. The EDA will have ten (10)business days following the submittal of a complete request for reimbursement to submit in writing explanation of the EDA's reason for denial of repayment or to issue the check to the Grantee in the amount of one-half (1/2) of the actual Improvement Costs incurred by the Grantee,but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000). 4. The Grantee agrees to use the proceeds of the grant reimbursement solely for the Improvements. D-Liability and Indemnification 1. Neither the city nor the EDA shall in any event be liable to the Grantee,nor to any of its agents,employees,guests or invitees,for damages arising from bodily injury,death, 2 property damage,sickness,disease,or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. 2. The Grantee shall indemnify,save,defend and hold harmless the city and the EDA from any claims,liability,causes of action,damages,losses,and costs including attorney fees resulting directly or indirectly from any act or use of Program funds including the defect or claimed defect of any of the Improvements or any such manner arising from this Agreement. 3. This section shall survive the termination,expiration or cancellation of this Agreement. E-Written Notice 1. When written notice is required or permitted due to the Improvements,Agreement and/or Program,it shall be addressed hereunder to the follow addresses. Written Notice to the Grantor: Written Notice to the Grantee: Farmington EDA Farmington Pizza Man Bar&Grill Attn: Executive Director Attn:Edward Endres 430 Third Street 409 Third Street Farmington,MN 55024 Farmington,MN 55024 F-Agreement 1. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreement(s)between the parties regarding the subject matter contained herein.There are no verbal agreements that change this Agreement. 2. The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the EDA. 3. Any alterations,variations,modifications,amendments or waivers of the provisions of the Agreement shall only be valid when they have been reduced to writing and signed by the authorized representatives of the parties. G-Cancellation 1. Prior to the disbursement of funds,this Agreement may be cancelled by the EDA or Grantee at any time,with or without cause,upon thirty(30) days written notice to the other party. 2. If the Grantee fails to perform any of the provisions of this Agreement including providing false,misleading or incomplete information in documents submitted to the City,fails to use grant funds exclusively for the Improvement Costs,or otherwise breaches or fails to comply with any of the terms of this Agreement,it shall be in default. 3. The EDA may act to protect its interest,including requiring the return of all or part of the funds already disbursed. a. If all or part of the funds are required to be repaid back to the EDA,it shall constitute default and the Grantee has thirty(30) days from the date of written notice to pay the EDA.In the event of untimely repayment by the Grantee of the demand following a declaration of default by the EDA,the EDA may thereafter assign this Agreement to the City for the City to assess the unpaid amounts upon the Property and certify the same to the county auditor for collection in like manner as 3 property taxes upon the Property.The Grantee expressly waives any right granted by statute or otherwise to object or appeal the assignment and assessment upon the Property. H-Records-Availability.Access and Audit Clause 1. Pursuant to Minn.Stat.§16C.05,subd. 5,the Grantee agrees that the EDA,City,the State Auditor or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary,shall have access to and the right to examine,audit,excerpt and transcribe any books,documents,papers,records,etc. which are pertinent to the accounting practices and procedures of the Grantee which specifically involve the transactions relating to this Agreement.The Grantee agrees to maintain these records for a minimum of six years from the date of Agreement fulfillment or termination of this Agreement as outlined by Minn.Stat.§16C.05,subd.5. I-Force Majeure 1. The parties shall be excused from performance under the Agreement while and to the extent that either of them are unable to perform,for any cause beyond its reasonable control.Such causes shall include,but not be restricted to,fire,storm,flood,earthquake, explosion,war,total or partial failure of transportation or delivery of materials and supplies,interruption of utilities and any act of government or military authority.In the event either party is rendered unable wholly or in part by force majeure to carry out its obligations under this Agreement then the party affected by force majeure shall give written notice with explanation to the other party immediately. J-Conflict of Interest 1. No elected official,officer,or employee of the City or EDA shall during his or her tenure or employment and for one year thereafter,have any interest,direct or indirect,in this Agreement or the proceeds thereof. K-Minnesota Laws Govern 1. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. 4 IN WITNESS WHEREOF,the parties hereto have hereby executed this agreement as of the year and date above on page 1. GRANTOR: GRANTEE: CITY OF FARMINGTON EDA EDWARD M.ENDRES 430 THIRD STREET 409 THIRD STREET FARMINGTON,MN 55024 FARMINGTON,MN 55024 BY: BY: Steve Wilson,Chair Edward Endres,Property Owner DATE: DATE: BY: Samantha DiMaggio,Executive Director DATE: 5 CITY 4F O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 IYW O Farmington M N.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Review Fagade Improvement Program Application—345 Third Street DATE: April 18, 2022 INTRODUCTION/DISCUSSION The EDA has allocated funding for the Facade Improvement Program for 2022 which allows business owners in downtown or along Highway 3 to apply for a fagade grant for a variety of exterior improvements(cosmetic and/or structural). For 2022,the EDA has allocated up to$30,000 of its annual operating budget to fund the Fagade Improvement Program. Within the program guidelines,it states that the EDA will contribute up to a maximum of 50%of eligible project costs and that grants typically will not exceed$5,000. A Facade Improvement Program application has been received for 345 Third Street,also known as the Fletcher Building,and is currently home to Heikkila Studios. Business: Heikkila Studios Number of Employees: 1 Year Established at Location:2004 Business and Property Owner: Pam Heikkila Site of Facade Project:345 Third Street Year Building Was Built: 1877 Current Condition of the Building: Fair Business Website: https://www.heikkilastudios.com/ Facade Project Utilizing Grant Dollars: New windows on the west side of the building. Total Project Cost:$10,270 Fagade Improvement Grant Dollars Requested:$5,000 Score Card: 23/35 City staff has reviewed the application materials submitted for 345 Third Street and recommends that the EDA approve the Facade Improvement Grant for$5,000. If approved,city staff will process the execution of a grant agreement between Ms. Heikkila and the EDA. Attached,please find the general application and current conditions for the facade project. ACTION REQUESTED Review the Fagade Improvement Program application for 345 Third Street.The EDA should make a motion to approve or deny the Facade Improvement Program application for$5,000. ATTACHMENTS: Type Description ❑ Exhibit 345 Third Street Application ❑ Exhibit 345 Third Street Current Conditions ❑ Exhibit 345 Third Street Score Card ❑ Exhibit 345 Third Street Grant Agreement CITYOF 430 Third St., Farmington,MN 55024 FARMINGTON 651-28o-6800 Farmington M N.gov °_��'' . ,rweewMrsirn Date Submitted:—/—/2022 FaVade Improvement Program Grant Application SITE ADDRESS FOR FACADE PROJECT: Applicant Information NAME: YEAR ESTABLISHED AT THIS LOCATION: 103-1 —C 12MC to iln 200 CHECK ALL THAT APPLY TO YOU: MINORITY VETERAN IMMIGRANT KOM�� APPLICANT'S BUSINESS NAME (IF APPLI'CABLE): NUMBER OF EMPLOYEES: I EMAIL: 1'1P 4kY laSWI04 J� WV-1-C , CUM PHONE: s-I —quo""nL4(9(, !� Property Information ? PROPERTY OWNER(S): D1,n 1-�, K kI l-a- ADDITIONAL BUSINESSES AT THIS LOCATION&EMPLOYEE SIZE(IF MULTI-TENANT): YEAR BUILT: 10-n HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA FACADE GRANT? YE NO WHAT IS THE CURRENT CONDITION OF THE BUILDING/PROPERTY: Good(Suitable for continued use with normal maintenance) Satisfactory(Requires some updating and restoration to represent"good"conditions) Fair(Requires updating and restoration-conditions may have an impact on building operations) Poor(Requires significant updating and restoration-conditions impact building operations) Unsatisfactory(Requires major restoration or demolition due to unsafe/structurally unsound conditions) Project Information PROPOSED PROJECT DESCRIPTION `1l\.Q. fmw -L wi hal cri-si S GZirP V,rrg- P. �Qm . h ITA- O 4e,N TOTAL PROPOSED PROJECT COST:$ FUNDING INFORMATION: This program funds up to a maximum amount of 50%of eligible project costs(minimum 1:1 funding match).Grants typically will not exceed$5,000. REQUESTED GRANT AMOUNT:$ 15,000 f V`l t N D�'� Application Requirements &1C1''° 1� Photo(s)of current facade/areas to be improved Rendering and/or plan drawings showing proposed improvements v YCs tj Ye—!& 7-A minimum of two contractor bids and/or proposals with a breakdown of itemized costs ---�Proof of insurance on the building Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to assess your eligibility for financial assistance.The City will not be able to process your application without this information.The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the information that you are providing to the City is public or private.If financial assistance is provided for the project,the information submitted with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I/We have read the above statement and I/we agree to supply the information to the City with full knowledge of the matters contained in this notice. I/We certify that all statements on this application are true and correct to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification. I/We have read the Fagade Improvement Program Guidelines and will abide by the rules and regulations set forth in that document I/We understand that if approved I/we will enter into a grant agreement which further outlines my responsibilities for the project I/We authorize City staff or other authorized representative of the City the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. I/We authorize program representatives the right to access the property for the purpose of taking photographs of the structure before and after the fagade improvement project. I/We understand that I/we are responsible for obtaining appropriate permits if needed.I/we understand that all aspects of project management will be my responsibility. I/We understand that in the case of improvements that do not require a city-issued building permit,the applicant must submit the name and state license number of the contractor completing the work prior to the project occurring and agree to an inspection of the work by a city building official. I/We further understand that I/we will make the final selection of the improvements to be made with the grant funds and that the contract for improvements will be solely between me and the contractor(s).The City will not be liable for the inadequate performance of the contractor(s). plica Sign are Owe0ty er ' tore (If tenant is the applicant) Y x a i f S^i ♦ � del i - eJ 3V-d s� Office Use Only—Please leave blank Scoring System 1 2 3 4 5 Rationale Older buildings will have older facades. Age of Building <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years This criteria aims to support business (Built Since 1992) (Built 1991-1962) (Built 1961-1932) (Built 1931-1902) (Built Before 1902) Jin older buildings in the community as well as business retention efforts. Statisically,smaller businesses have 5 or Fewer less cash buffer than larger businesses. Business Size 51+Employees 26-50 Employees 11-25 Employees 6-10 Employees This criteria aims to stablize the ability Employees for all businesses to complete facade projects. The higher the ratio of private Total Cost of the investment vs.public grant dollar Project <$5,000 $5,001-$10,000 $10,001-$15,000 $15,001-$20,000 $20,001+ investment,the higher the scoring will be. Unsatisfactory: Requires major poor:Requires Fain Requires Buildings which need larger repairs significant updating updating and Satisfactory:Requires and projects beyond facade should be restoration or Good:Suitable for Current Conditions or restoration, restoration. some restoration to completed first prior to facade of the Building demolition due to Conditions adversely Conditions may have represent"good" continued use with improvements.This program is not unsafe and/or normal maintenance. structurally unsound impacts building an impact on condition. intended to be an aesthetic band-aid conditions. operations. building operations. to a building with poor conditions. Statisically,M/W/V/1 businesses have Minority,Women, Veteran and/or No M/W/V/I Ownership is less cash buffer than other businesses. Immigrant Ownership M/W/V/I This criteria aims to stabilize the ability Ownership _ for all businesses to complete facade projects. Is the Business Businesses with higher foot traffic Public Facing?(e.g. from the public benefit from an Retail,Food, N Yes attractive,aesthetically appealing Medical,etc.) storefront. EDA grant programs intend to be accessible to all businesses in the Have You Received eligible program areas.Preference will an EDA Facade Yes - - No be given to those businesses who have Grant Previously? not previously received fapde funding which will be reflected within the scoring rubric. 2.3 /35 Points City of Farmington EDA FaVade Improvement Program Grant Agreement This Fagade Improvement Grant Agreement(hereinafter referred to as"Agreement")is made and entered into this day of April,2022 by and between Pam Heikkila,Heikkila Studios at 345 Third Street,Farmington,Minnesota (hereinafter referred to as "Grantee")and the City of Farmington Economic Development Authority(EDA),a public body corporate and politic,having its principal offices at 430 Third Street,Farmington,Minnesota (hereinafter referred to as"Grantor"). WHEREAS,the Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the EDA as grants. WHEREAS,the Grantor has established a Facade Improvement Program (hereinafter referred to as "Program")to assist businesses with property facade improvements,either cosmetic or structural, within the 2022 eligibility boundary along Minnesota Highway 3 and within downtown Farmington;and WHEREAS,the Grantee has applied for Fagade Improvement Program funds for eligible fagade improvements at their property located at 345 Third Street with the tax pin 147700023081 (hereinafter referred to as "Property");and WHEREAS,the Grantor has reviewed the Grantee's application and determined that the proposed facade improvement project meets the requirements of the Program; and WHEREAS,the Grantee desires to participate in the Program,on the terms and conditions set forth below. NOW,THEREFORE,in consideration of the agreements hereinafter contained,the parties agree as follows: A-Property Improvements: 1. The Grantee agrees and acknowledges that the approved facade improvements (hereinafter referred to as"Improvements")which will be reimbursed are for the project(s) outlined in the Grantee's original application,and are as follows: a. New windows on the west side of the building. 2. If the Grantee wishes to revise the Improvements receiving grant funding through the Program,the Grantee must submit the revised plans to city staff to be reviewed by the EDA. a. The EDA will review the revised plans at the next earliest Regular EDA Meeting. 3. The Grantee agrees to apply for and receive all necessary permits and approvals from the city and from any other governing authority with jurisdiction over the Property related to the construction of the Improvements prior to work beginning. 4. The Grantee agrees to complete the Improvements in accordance with all applicable laws, rules and regulation,including but not limited to,Farmington City Code,MN Building Code, Fire Code,etc. 1 S. The Grantee shall select the means,method and manner of performing the Agreement requirements and Improvements. B-Improvement Timeline: 1. The Agreement will be terminated 120 days from the date of the Agreement on page 1 if construction work has not yet begun. 2. The Improvements shall be completed in a timely manner and all grant funds must be distributed by or before December 31,2022. a. The Agreement maybe extended once,with the length of the extension to be determined on a case-by-case basis.If an extension is necessary,a written extension request shall be made to the Executive Director of the EDA. C-Payment of Program Funds 1. Grant funds will be paid on a reimbursement basis only after all Improvements have been completed according to the authorized scope of work and have been accepted by the Grantor.The cost of complete construction of the Improvements,including out-of-pocket costs for required permitting and approvals,shall be defined as the"Improvement Costs." 2. The Grantee shall be responsible for making the initial payments to all contractors and others involved in the construction and permitting of the Improvements. 3. Upon final completion of the Improvements,the Grantee shall make a request for reimbursement of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000).The request for reimbursement shall include: a. Proof of final inspection for the Improvements. b. After photos of the property reflecting the Improvements made. c. A dated copy of the final itemized invoice(s)that comprised the Improvement Costs or a sworn construction statement. d. Dated proof of payment of said invoice(s) that comprised the Improvement Costs. e. Such other documentation as the EDA staff may require in its reasonable discretion to verify the amount of and payment of the Improvement Costs by the Grantee. f. The EDA will have ten(10)business days following the submittal of a complete request for reimbursement to submit in writing explanation of the EDA's reason for denial of repayment or to issue the check to the Grantee in the amount of one-half (1/2) of the actual Improvement Costs incurred by the Grantee,but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000). 4. The Grantee agrees to use the proceeds of the grant reimbursement solely for the Improvements. D-Liability and Indemnification 1. Neither the city nor the EDA shall in any event be liable to the Grantee,nor to any of its agents,employees,guests or invitees,for damages arising from bodily injury,death, 2 property damage,sickness,disease,or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. 2. The Grantee shall indemnify,save,defend and hold harmless the city and the EDA from any claims,liability,causes of action,damages,losses,and costs including attorney fees resulting directly or indirectly from any act or use of Program funds including the defect or claimed defect of any of the Improvements or any such manner arising from this Agreement. 3. This section shall survive the termination,expiration or cancellation of this Agreement. E-Written Notice 1. When written notice is required or permitted due to the Improvements,Agreement and/or Program,it shall be addressed hereunder to the follow addresses. Written Notice to the Grantor: Written Notice to the Grantee: Farmington EDA Heikkila Studios Attn: Executive Director Attn: Pam Heikkila 430 Third Street 345 Third Street Farmington,MN 55024 Farmington,MN 55024 F-Agreement 1. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreement(s)between the parties regarding the subject matter contained herein.There are no verbal agreements that change this Agreement. 2. The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the EDA. 3. Any alterations,variations,modifications,amendments or waivers of the provisions of the Agreement shall only be valid when they have been reduced to writing and signed by the authorized representatives of the parties. G-Cancellation 1. Prior to the disbursement of funds,this Agreement may be cancelled by the EDA or Grantee at any time,with or without cause,upon thirty(30) days written notice to the other party. 2. If the Grantee fails to perform any of the provisions of this Agreement including providing false,misleading or incomplete information in documents submitted to the City,fails to use grant funds exclusively for the Improvement Costs,or otherwise breaches or fails to comply with any of the terms of this Agreement,it shall be in default. 3. The EDA may act to protect its interest,including requiring the return of all or part of the funds already disbursed. a. If all or part of the funds are required to be repaid back to the EDA,it shall constitute default and the Grantee has thirty(30) days from the date of written notice to pay the EDA.In the event of untimely repayment by the Grantee of the demand following a declaration of default by the EDA,the EDA may thereafter assign this Agreement to the City for the City to assess the unpaid amounts upon the Property and certify the same to the county auditor for collection in like manner as 3 property taxes upon the Property.The Grantee expressly waives any right granted by statute or otherwise to object or appeal the assignment and assessment upon the Property. H-Records-Availability,Access and Audit Clause 1. Pursuant to Minn.Stat.§16C.OS,subd.5,the Grantee agrees that the EDA,City,the State Auditor or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary,shall have access to and the right to examine,audit,excerpt and transcribe any books,documents,papers,records,etc. which are pertinent to the accounting practices and procedures of the Grantee which specifically involve the transactions relating to this Agreement.The Grantee agrees to maintain these records for a minimum of six years from the date of Agreement fulfillment or termination of this Agreement as outlined by Minn.Stat.§16C.05,subd.S. I-Force Majeure 1. The parties shall be excused from performance under the Agreement while and to the extent that either of them are unable to perform,for any cause beyond its reasonable control.Such causes shall include,but not be restricted to,fire,storm,flood,earthquake, explosion,war,total or partial failure of transportation or delivery of materials and supplies,interruption of utilities and any act of government or military authority.In the event either party is rendered unable wholly or in part by force majeure to carry out its obligations under this Agreement then the party affected by force majeure shall give written notice with explanation to the other party immediately. J-Conflict of Interest 1. No elected official,officer,or employee of the City or EDA shall during his or her tenure or employment and for one year thereafter,have any interest,direct or indirect,in this Agreement or the proceeds thereof. K-Minnesota Laws Govern 1. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. 4 IN WITNESS WHEREOF,the parties hereto have hereby executed this agreement as of the year and date above on page 1. GRANTOR: GRANTEE: CITY OF FARMINGTON EDA PAM HEIKKILA 430 THIRD STREET 345 THIRD STREET FARMINGTON,MN 55024 FARMINGTON,MN 55024 BY: BY: Steve Wilson,Chair Pam Heikkila,Property Owner DATE: DATE: BY: Samantha DiMaggio,Executive Director DATE: 5 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington M N.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Review Fagade Improvement Program Application—916 Eighth Street DATE: April 18, 2022 INTRODUCTION/DISCUSSION The EDA has allocated funding for the Fagade Improvement Program for 2022 which allows business owners in downtown or along Highway 3 to apply for a fagade grant for a variety of exterior improvements(cosmetic and/or structural). For 2022,the EDA has allocated up to$30,000 of its annual operating budget to fund the Fagade Improvement Program. Within the program guidelines,it states that the EDA will contribute up to a maximum of 50%of eligible project costs and that grants typically will not exceed$5,000. Business: River Valley Home Care Inc. Number of Employees: 130 Year Established at Location:2008 Business and Property Owner: Rachelle Pariseau Site of Facade Project:916 Eighth Street Year Building Was Built: 1958 Current Condition of the Building: Good Business Website: https://www.rivervaIleyhomecare.com/ Fa5ade Project Utilizing Grant Dollars: Painting for exterior siding. New exterior painting will be of similar color to what is currently on the building. Total Project Cost:$3,250-$3,485 Fa5ade Improvement Grant Dollars Requested:$1,625-$1,742.50 Score Card:21/35 City staff has reviewed the application materials submitted for 916 Eighth Street and recommends that the EDA approve the Fagade I mprovement Grant for half of the cost of the fagade project of painting the exterior of the building. Since the request grant dollars is less than$5,000,city staff recommends the EDA approve the grant amount in the amount of one-half(1/2)of the incurred costs by the applicant for the fagade project as is outlined in section C3 of the grant agreement. If approved,city staff will process the execution of a grant agreement between Ms. Pariseau and the EDA. Attached,please find the general application and current conditions for the fagade project. ACTION REQUESTED Review the Fagade Improvement Program application for 916 Eighth Street. The EDA should make a motion to approve or deny the Fagade Improvement Program application for one-half(1/2) of the incurred costs by the applicant for the fagade project as is outlined in section C3 of the grant agreement. ATTACHMENTS: Type Description ❑ Exhibit 916 Eighth Street General Application and Photos © Exhibit 916 Eighth Street Score Card D Exhibit 916 Eighth Street Grant Agreement Date Submitted: / /2022 Facade Improvement Program Grant Application 1� SITE ADDRESS FOR FACADE PROJECT: l G1 ?v 5rc�E' �/ J Applicant Information NAME: GfCL l`! �ltJrl 5l'CL .. YEAR ESTABLISHED AT THIS LOCATION: /t / bG'U a CHECK ALL THAT APPLY TO YOU: MINORITY WOMAN VETERAN IMMIGRANT APPLICANT'S BUSINESS AMEIF APPLICA LE): N4, RLl)i� (l//u NUMBER OF EMPLOYEES: 1130 EMAIL: t`6&lig 11e'! A1 F iC t'tJtr.�•L-t�r�1 PHONE:&1l-) ' q,9 7- Property Information PROPERTYOWNER(S): Pep ADDIT,�NAL BUSINESSES AT T IS LOC�TION&EMPLOYEE SIZE(IF MULTI-TENANT): l �% '/ �'/} �� , ,� .. lie fit[eAleA s YEAR BUILT: �f HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA FACADE GRANT? YES 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) i Project Information PROPOSE PRO ECT�DESCRIPTION QL j `� f v � TOTAL PROPOSED PROJECT COST:$ '13 q85 FUNDING INFORMATION: This program funds up to a maximum amount of 50%of eligible project costs(minimum 1:1 funding match).Grants typically will not exceed$5,000. j j REQUESTED GRANT AMOUNT:$ I —) / � . 5-`Z� / Application Requirements /Photo(s)of current fagade/areas to be improved Rendering and/or plan drawings showing proposed improvements i/A minimum of two contractor bids and/or proposals with a breakdown of itemized costs Y"/Proof of insurance on the building Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to j 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 thatyou 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 Lead the above statement and I/we agree to supply the Information to the City with full luiowledge 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 I/We understand that any intentional misstatements will be grounds for disqualification. I/We have read the Fapade Improvement Program Guidelines and will abide by the rules and regulations set forth in that document. [/We understand that if approved I/we will enter into a grant agreement which further outlines my responsibilities for the project. i 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. [/We authorize program representatives the right to access the property for the purpose of taking photographs of the structure before and after the fagade improvement project. i E I/We understand that I/we are responsible for obtaining appropriate permits if needed.[/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 inade a performance ofthe Applicant Signature Property Owner Signature j (If tenant is the applicant) i I I� I I i II I ill i yy� 1 i r ; r fi P �- r � cam" � •,� L 4 •S r t• , 1 I I!f J I ` 1jt t tF , Ilk �I .� "� Vfl} �1 •!�t +r j�i�+ i 1 E ; t A - 4 r , IC y, L }� �Z`�����. +.s ..� n;�•' '1,,, }t� hitt t �'i� t 4�t'i ,sf •�. Y Y ala 4'sl � V R i v � t•, f. pk5 •i I �� L� '�.i -`-'• � :tib � . i ,.�. � t 3 �� ��`L.."�"�<'�s.� +u. ;� f{l.._ .girl ` ,(r�+/� �� _�•,���• 1 Owl r ' I, I f: i i 5 x •. I� � 4,•L q Ito 911k, S1Yee-� I Office Use Only—Please leave blank Scoring System 1 2 3 4 5 Rationale Older buildings will have older fagades. <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years This criteria aims to support business Age of Building (Built Since 1992) (Built 1991-1962) (Built 1961-1932) (Built 1931-1902) (Built Before 1902) in older buildings in the community as well as business retention efforts. Statisically,smaller businesses have 5 or Fewer less cash buffer than larger businesses. Business Size 51+Employees 26-50 Employees 11-25 Employees 6-10 Employees Employees This criteria aims to stablize the ability for all businesses to complete facade projects. The higher the ratio of private Total Cost of the <$5,000 $5,001-$10,000 $10,001-$15,000 $15,001420,000 $"L0,001+ investment vs.public grant dollar Project investment,the higher the scoring will be. Unsatisfactory: poor:Requires &;Requires Buildings which need larger repairs Requires major significant updating updating and Sai f, toy-:Require and projects beyond fa de should be Current Conditions restoration or or restoration. restoration. some restoration to GodSuitable for completed first prior to fagade demolition due to continued use with of the Building Conditions adversely Conditions may have represent"good" improvements.This program is not unsafe and/or normal maintenance. structurally unsound impacts building an impact on condition. intended to be an aesthetic band-aid conditions. operations. building operations. to a building with poor conditions. Statisically,M/W/V/1 businesses have Minority,Women, less cash buffer than other businesses. Veteran and/or No M/W/V/1 _ - Ownership is This criteria aims to stabilize the ability Immigrant Ownership M/W/V/I for all businesses to complete facade Ownership projects. Is the Business Businesses with higher foot traffic Public Facing?(e.g. No _ _ Yes from the public benefit from an Retail,Food, attractive,aesthetically appealing Medical,etc.) storefront. EDA grant programs intend to be accessible to all businesses in the Have You Received eligible program areas.Preference will an EDA FaVade Yes - - No be given to those businesses who have Grant Previously? not previously received facade funding which will be reflected within the scoring rubric. 21 /35 Points City of Farmington EDA Facade Improvement Program Grant Agreement This Facade Improvement Grant Agreement(hereinafter referred to as "Agreement")is made and entered into this day of April, 2022 by and between Rachelle Pariseau,River Valley Home Care Inc.at 916 Eighth Street,Farmington,Minnesota (hereinafter referred to as"Grantee")and the City of Farmington Economic Development Authority(EDA),a public body corporate and politic, having its principal offices at 430 Third Street,Farmington,Minnesota (hereinafter referred to as "Grantor"). WHEREAS,the Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the EDA as grants. WHEREAS,the Grantor has established a Facade Improvement Program (hereinafter referred to as "Program")to assist businesses with property facade improvements,either cosmetic or structural, within the 2022 eligibility boundary along Minnesota Highway 3 and within downtown Farmington; and WHEREAS,the Grantee has applied for Fagade Improvement Program funds for eligible fagade improvements at their property located at 916 Eighth Street with the tax pin 142580000010 hereinafter referred to as"Property");and WHEREAS,the Grantor has reviewed the Grantee's application and determined that the proposed fagade improvement project meets the requirements of the Program; and WHEREAS,the Grantee desires to participate in the Program,on the terms and conditions set forth below. NOW,THEREFORE,in consideration of the agreements hereinafter contained,the parties agree as follows: A-Property Improvements: 1. The Grantee agrees and acknowledges that the approved fagade improvements (hereinafter referred to as"Improvements")which will be reimbursed are for the project(s) outlined in the Grantee's original application,and are as follows: a. Painting for exterior siding. 2. If the Grantee wishes to revise the Improvements receiving grant funding through the Program,the Grantee must submit the revised plans to city staff to be reviewed by the EDA. a. The EDA will review the revised plans at the next earliest Regular EDA Meeting. 3. The Grantee agrees to apply for and receive all necessary permits and approvals from the city and from any other governing authority with jurisdiction over the Property related to the construction of the Improvements prior to work beginning. 4. The Grantee agrees to complete the Improvements in accordance with all applicable laws, rules and regulation,including but not limited to,Farmington City Code,MN Building Code, Fire Code,etc. 1 S. The Grantee shall select the means,method and manner of performing the Agreement requirements and Improvements. B-Improvement Timeline: 1. The Agreement will be terminated 120 days from the date of the Agreement on page 1 if construction work has not yet begun. 2. The Improvements shall be completed in a timely manner and all grant funds must be distributed by or before December 31,2022. a. The Agreement may be extended once,with the length of the extension to be determined on a case-by-case basis.If an extension is necessary,a written extension request shall be made to the Executive Director of the EDA. C-Payment of Program Funds 1. Grant funds will be paid on a reimbursement basis only after all Improvements have been completed according to the authorized scope of work and have been accepted by the Grantor.The cost of complete construction of the Improvements,including out-of-pocket costs for required permitting and approvals,shall be defined as the"Improvement Costs." 2. The Grantee shall be responsible for making the initial payments to all contractors and others involved in the construction and permitting of the Improvements. 3. Upon final completion of the Improvements,the Grantee shall make a request for reimbursement of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000).The request for reimbursement shall include: a. Proof of final inspection for the Improvements. b. After photos of the property reflecting the Improvements made. c. A dated copy of the final itemized invoice(s) that comprised the Improvement Costs or a sworn construction statement. d. Dated proof of payment of said invoice(s)that comprised the Improvement Costs. e. Such other documentation as the EDA staff may require in its reasonable discretion to verify the amount of and payment of the Improvement Costs by the Grantee. f. The EDA will have ten(10) business days following the submittal of a complete request for reimbursement to submit in writing explanation of the EDA's reason for denial of repayment or to issue the check to the Grantee in the amount of one-half (1/2) of the actual Improvement Costs incurred by the Grantee,but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000). 4. The Grantee agrees to use the proceeds of the grant reimbursement solely for the Improvements. D-Liability and Indemnification 1. Neither the city nor the EDA shall in any event be liable to the Grantee,nor to any of its agents,employees,guests or invitees,for damages arising from bodily injury,death, 2 property damage,sickness,disease,or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. 2. The Grantee shall indemnify,save,defend and hold harmless the city and the EDA from any claims,liability,causes of action,damages,losses,and costs including attorney fees resulting directly or indirectly from any act or use of Program funds including the defect or claimed defect of any of the Improvements or any such manner arising from this Agreement. 3. This section shall survive the termination,expiration or cancellation of this Agreement. E-Written Notice 1. When written notice is required or permitted due to the Improvements,Agreement and/or Program,it shall be addressed hereunder to the follow addresses. Written Notice to the Grantor: Written Notice to the Grantee: Farmington EDA River Valley Home Care Inc. Attn: Executive Director Attn: Rachelle Pariseau 430 Third Street 916 Eighth Street Farmington,MN 55024 Farmington,MN 55024 F-Agreement 1. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreement(s)between the parties regarding the subject matter contained herein.There are no verbal agreements that change this Agreement. 2. The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the EDA. 3. Any alterations,variations,modifications,amendments or waivers of the provisions of the Agreement shall only be valid when they have been reduced to writing and signed by the authorized representatives of the parties. G-Cancellation 1. Prior to the disbursement of funds,this Agreement may be cancelled by the EDA or Grantee at any time,with or without cause,upon thirty(30) days written notice to the other party. 2. If the Grantee fails to perform any of the provisions of this Agreement including providing false,misleading or incomplete information in documents submitted to the City,fails to use grant funds exclusively for the Improvement Costs,or otherwise breaches or fails to comply with any of the terms of this Agreement,it shall be in default. 3. The EDA may act to protect its interest,including requiring the return of all or part of the funds already disbursed. a. If all or part of the funds are required to be repaid back to the EDA,it shall constitute default and the Grantee has thirty(30) days from the date of written notice to pay the EDA.In the event of untimely repayment by the Grantee of the demand following a declaration of default by the EDA,the EDA may thereafter assign this Agreement to the City for the City to assess the unpaid amounts upon the Property and certify the same to the county auditor for collection in like manner as 3 property taxes upon the Property.The Grantee expressly waives any right granted by statute or otherwise to object or appeal the assignment and assessment upon the Property. H-Records-Availability.Access and Audit Clause 1. Pursuant to Minn.Stat.§16C.05,subd. 5,the Grantee agrees that the EDA,City,the State Auditor or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary,shall have access to and the right to examine,audit,excerpt and transcribe any books,documents,papers,records,etc. which are pertinent to the accounting practices and procedures of the Grantee which specifically involve the transactions relating to this Agreement.The Grantee agrees to maintain these records for a minimum of six years from the date of Agreement fulfillment or termination of this Agreement as outlined by Minn.Stat.§16C.05,subd.S. I-Force Majeure 1. The parties shall be excused from performance under the Agreement while and to the extent that either of them are unable to perform,for any cause beyond its reasonable control.Such causes shall include,but not be restricted to,fire,storm,flood,earthquake, explosion,war,total or partial failure of transportation or delivery of materials and supplies,interruption of utilities and any act of government or military authority.In the event either party is rendered unable wholly or in part by force majeure to carry out its obligations under this Agreement then the party affected by force majeure shall give written notice with explanation to the other party immediately. J-Conflict of Interest 1. No elected official,officer,or employee of the City or EDA shall during his or her tenure or employment and for one year thereafter,have any interest,direct or indirect,in this Agreement or the proceeds thereof. K-Minnesota Laws Govern 1. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. 4 IN WITNESS WHEREOF,the parties hereto have hereby executed this agreement as of the year and date above on page 1. GRANTOR: GRANTEE: CITY OF FARMINGTON EDA RACHELLE PARISEAU 430 THIRD STREET 916 EIGHTH STREET FARMINGTON,MN 55024 FARMINGTON,MN 55024 BY: BY: Steve Wilson,Chair Rachelle Pariseau,Property Owner DATE: DATE: BY: Samantha DiMaggio,Executive Director DATE: 5 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: Unallocated Fagade Improvement Program Funds—2022 DATE: April 18, 2022 INTRODUCTION/DISCUSSION The EDA has allocated funding for the Fagade I mprovement Program for 2022 which allows business owners in downtown or along Highway 3 to apply for a facade grant for a variety of exterior improvements (cosmetic and/or structural). For 2022,the EDA has allocated up to$30,000 of its annual operating budget to fund the Fagade I mprovement Program. Within the program guidelines, it states that the EDA will contribute up to a maximum of 50%of eligible project costs and that grants typically will not exceed $5,000. After review of the facade improvement grants tonight,the EDA will have remaining funds for the program within the 2022 EDA budget.The EDA needs to have a discussion to decide what to do for the program for the remainder of the year.This year is the first year the EDA has decided to place a deadline on their grant programs with the Facade Improvement Program application deadline of March 31st, 2022 and a Redevelopment and Property Reinvestment Program deadline of June 30th, 2022. City staff is aware of additional businesses downtown and along Highway 3 which have expressed interest in applying for the Fagade Improvement Program for 2022, but were unable to apply prior to the deadline of March 31st, 2022 for a variety of reasons. The EDA should make one of the following decisions: 1. Keep the Fagade Improvement Program closed for the remainder of 2022 and keep the unused funds for other EDA activities within the EDA budget. 2. Re-open the Fagade Improvement Program with a second hard deadline and review a second round of applications later in the year. If applicants are competing for limited funds,the EDA would utilize the new score card associated with the program. 3. Re-open the Fagade Improvement Program on a first-come,first-serve basis (i.e. rolling applications). If applicants are competing for limited funds,the EDA would utilize the new score card associated with the program. City staff recommends option#3 to allow businesses the ability to apply for grant dollars and execute fagade projects on a timeline that works best for them. After discussion of the preferred option of unallocated Fagade Improvement Program funds within the 2022 budget, the EDA should direct staff with their decision. No motion is necessary. ACTION REQUESTED The EDA should discuss their preferred option for the Fagade Improvement Program for the remainder of 2022 and inform city staff of their decision.