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Home My WebLink About03.24.08 EDA Packet - with notes \ ~ 3. Approve Agenda ~I(vnv\ Procedural Matters (Tina) \: '11&9 11I~ i. Adoption of By-Laws , ~.J ~ j ~ ii. Election of Officers_ ~~. / ~ _ f ~' ~~ . ,/;f :~: ~~~:~~::er ~ '\ ~~ v. EGC Discussion 4. Citizens CommentslPresentations a. Presentation on Market Study Summary of Findings & Development Strategy (Maus/McComb) 7. Unfinished Business (8:15 p.m.) a. Rental Property -Former Liquor Store (Tina) .., (. b. Mc ~icker and Riste Lot Updates (Tina) '\Pi tl.WCv rLtfP' ct(7l1Ul^ 1. Appearance ii. Sale Options 8. New Business a. McVicker CDBG Fund Balance (Lisa) b. Downtown Discussion (Lisa)..} '-..p ~ i. Downtown Delineation PubliS ~ee.ting 0'-"" ~ '-.:::l~. ii. Design Standards Example 0 V . ~ 1................. ~. I iii. Downtown Success Strategies t 0,(/ ~ ~ ~ ('i0 Current City Hall {)yo~lL.- ~ \i c. Marketing Discussion {Tina) t\r.....~~. -<<.i C:P (~. d. Industrial Development Strategy (Lisa) ~ ;;f q,~ /, !Z J ~ f e. Dakota County's Economic Development Strategy Initiatives (Tina) ~- ~ '''J> ~. ~ity Staff Reports 'i A) It) a. Economic Update, see attached ~ ;$.~ ~ b. Downtown Idea Exchange, see attached 10. Adjourn The Farmington !A's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment. . r:J Members Mayor Kevan Soderberg Christy Jo Fogarty David McKnight David Pritzlaff Steve Wilson City Staff Representatives Peter Herlofsky City Administrator . Tina Hansmeier Economic DevelopmentfJ. Specialist ~ Lisa Dargis Administrntive ASS~J 325 Oak Street 1~ Farmington, MN 55024 Phone: 651.463.7111 http://www.cLfarmington.mn.us --~ AGENDA ECONOMIC DEVELOPMENT AUTHORITY March 24, 2008 -7:00 p.m. City Council Chambers. City Hall L~ 1. Call Meeting to Order 2. Pledge of Allegiance (7:00 D.m.) J~\,;)( -#' ~I'V 5. Co~ent Agenda (see attached) ~ cat January 28, 2008 EDA Meeting Minutes Y' b. February 25,2008 Special City Council meeting Minutes . c. Bills d. January & February Budget Details e. School & Conference 6. Public Hearings (None) . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECf: McVicker CDBG Fund Balance DATE: March 24, 2008 INTRODUCTION Staff is requesting direction regarding previously allocated CDBG funding. DISCUSSION In 2005, CDBG funding was allocated to the McVicker property; since that time, the site has remained vacant. The $32,750 was allocated to meet the Federal HUD objective of "Low jMod". This means that the dollars must be used to benefit low to moderate income persons as determined by the current income limits (see Exhibit A). We have investigated possible options for reallocation of the funding to initiate it's use. The four following options have been determined to be feasible while adhering to the "Low jMod" objective requirements: 1. Leave the funding as it is for potential use if and when the McVicker site develops. 2. Reallocate the funds to the Residential Rehabilitation account. 3. Establish a Microenterprise fund to assist an entrepreneur with rental assistance. 4. Issue a one time grant for the full amount to a local business that is relocating or expanding and can fulfill the job creation requirement. Option one would require any development that takes place on the McVicker site benefit low to moderate income persons either through affordable housing or job creation. With regard to option number 2, the City of Farmington has historically over spent our allocation for housing rehabilitation activities (see Exhibit B). This activity meets the low to moderate income requirements and is administered by the CDA. Regarding the use of funding for the microenterprise activity; staff would look into vacant building space either downtown or in the industrial park. The preference would be to enable a small or home business owner to occupy a space that is not City owned. This strategy would provide the dual benefit of filling vacant space and supporting entrepreneurial growth. The owner of the business would have to be a low to moderate income person, or they would have to hire 51% low to moderate income employees and . track employees' income data for five years. The city would offer a rent subsidy to assist the business owner in obtaining a professional space (see Exhibits C and D). Option four would be to issue an RFP for a one time $30,000 grant to any local business that is expanding or relocating and can meet the "Low jMod" job creation requirements. This use would also involve the recipient tracking and reporting employee income data for five years. Dependent upon the number of responses received; a set of criteria would be created to determine the most appropriate project to award the funding to. I have attached a list of potential drawbacks and benefits to the four options to better illustrate the possible outcomes. ACTION REOUESTED Discuss the four options listed above and direct staff on the desired outcome. . . . Ootion #1 - Leave the fundino as is. -~--,_.,._..,----------,_.._-_.,._,----,~--- Benefit The funding has already been allocated and could potentially be used as an incentive if a developer with the right kind of project was interested in the site. Drawback The last development contract for the site fell through and although there are occasional inquiries, no concrete development offers have been received since that time. The current market does not support a large degree of optimism for development in the near future. Option # 2 - Reallocate the Funding to Residential Rehabilitation Benefit Farmington has had to tap into the countywide CDBG account to support our residential rehab account for the last several years because our requests for funding have exceeded our allocation amounts. This option all but guarantees that the money will be spent down fairly expeditiously, and will assist the CDA in their goal to spend down funds. . Drawback This option doesn't really provide any economic development benefit. We have limited financial tools to offer in support of our businesses, so it is difficult for staff to choose to have the funds go towards a residential use. Option #~ - Establish a Microenterprise Fund Benefit This is clearly an exciting option as it provides an additional "incubator space" opportunity. Support of entrepreneurs is clearly key to future economic growth and this provides a chance for the City of Farmington to help a building owner fill space and perhaps foster small business growth. This program has not been utilized much in Dakota County so it would be an unusual use for CDBG in this area. This may give Farmington the opportunity to promote this type of assistance and set a positive example for other communities. Drawback . Excitement typically carries with it risk and this option is no exception. Many small businesses fail and there is the potential that the business would not succeed even with free rent. Requirements that the business stay in the community for a certain period of time after receiving assistance would be preferred. Identification of an appropriate business and an appropriate space will be fairly time intensive. There will need to be . fairly extensive criteria put in place for choosing the business and there will be disappointed parties if there is a great deal of interest generated. Either the business owner or their employees have to qualify as low to moderate income and the CDA/HUD will require that income data be tracked for five years. This is a fairly significant amount of paperwork, especially for a new business owner. Option #4 - Issue a one time grant. Benefit This is the option that initiated our research into reallocation options, due to the number of businesses that we have visited with who have expressed an interest in expansion. There is currently at least one business expanding/relocating within the City that would potentially be a good fit for the "Low/Mod" job creation requirement. This would provide an opportunity for the city to provide financial assistance to an existing business as they grow within our community. Drawback The only fair way to issue the grant would be to send out an RFP and let everyone have equal opportunity to apply for the funding. There could be a great deal of interest, although many of the applicants may not realize that they would have to adhere to the . same five year income tracking requirements that have been mentioned above. Getting financial information from employees may be a deterrent for some business owners and One would believe that there is a threshold point where a business may not think the amount of free money is worth the hassle. This is why the suggestion was not to split the funding up into smaller increments for this option. . . * 00 -n o 0 ?f2. :: =r Q, CD Ol () ., 0 m to 3 G) CD iJ 0. ., w' 0 ::l ~ _. Ol ~ ? o _ 3 =r CD CD Cij" ~ f;R~ 0) 0 ~ 3. 1'-:);::;': Or Ol 0 i5.~ - ~ =r 0 CD 0. c'.::: en (Jl 3 g CD -0 0..-0 -" CD ~ 0. :5" S. () - o =r 3 CD CD C Cij" en f;Rl>> 0) CD ->. 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' organizations may use CDBG funds to facilitate economic development through the establishment, stabilization and expansion' of microenterprises. Reference: s570.201 (0) This category authorizes the use of CDBG funds to provide financial assistance ofvirtually any kind to an existing microen terprise or to assist in the establishment ofa microenterprise. It also authorizes the provi- sion of: ./ Technical assistance to a new or existing microenterprise or to persons developing a microenterprise, and ./ General support to owners of microenterprises or to persons developing a microenterprise. Note that under the subcategory of" general support," CDBG funds may be used to provide services of any kind that may be needed by the owner of or person developing amicroenterprise to enable the establishment, stabilization, or expansion of the business. This could include, for example, child care, transportation, counseling, and peer support pro- grams. Any such services provided under this authority are not subject to the cap on P ublic services regardless ofthe entity providing the service. It should also be noted that financially or technically assisting a microenterprise may also be carried out under the basic eligibility categories of Special Economic Development Activities and Special Activities by CBDOs. However, if carried out under either of those categories, such assistance would be subject to the requirements con- cerning Public Benefit. References: 3570.203,3570.204, and 3570.209 Definitions: "Microenterprise" means a business having five or fewer employees, one or more of whom owns the business. "Person developing a microenterprisen means any person who has expressed an interest and who isr after an initial screening, expected to be actively working towards developi~g a business that is expected to be a microenterprise at the time it is formed. Community Development Block Grant Program categories of Eligible Activities ..:. 2-63 t" ,..""t '.. ': ~ it 'tiJ'! 't""": 11 !"~ ~~ . J,!J . ~. .". Complying with National Objectives- Microenterprise Assistance Additional Considerations Because microenterprises are for-profit businesses, most of the guide- lines for meeting national objectives under the category of Special Economic Development Activities also apply here, There is one notable exception, however. A grantee may qualify under the L/M Income Limited Clientele subcategory any CDBG assistance under the basic eligibility category of Microenterprise Assistance that it proyides to owners of and/or persons dev~loping a microenterprise who are' iJM income persons. If such assistance is provided to owners/persons developing a microenterprisewho are not L/M income persons, itwould not quality under Limited Clientele, but would need to meet the require- ments of other subcategories (e.g., Area Benefit or Jobs). See the following chart for further elaboration on meeting the LIM Income Benefit national objective. Reference: s570.208(a){2)(iij} . Many grantees have been assisting some microenterprises as part of theirCDBG economic development programs. The creation ofaseparate eligibility category for this class of businesses does not mean that such grantees may no longer do so. First, it should be made clear that just because a business is small enough to meet the CDBG definition of a microenterprisewould not preclude its being assisted under the category of Special Economic Development. However, when the grantee provides assistance to such businesses under that category, all applicable require- ments, including public benefit, will apply. In orderto take advantage of the special advantages available under the Microenterprise Assistance category, the grantee would need to establish an activity for providing such assistance separate from all other business assistance it may elect to provide. This is necessary to avoid the confusion that would result from mixing assistance under two categories having differing require- ments. Therefore, grantees should consider revamping their CDBG economic development programs tO,clearly separate microenterprise assistance from all other forms. . Community Development Block Grant"Program . 2-64 .:. categories of Eligible Activities . w CJ Z ~ en - fA fA c:t 1&1 tn - a:, a. a:: 1&1 I- Z 1&1 o a:: u - :i I fA 1&1 > - l- e.) 1&1 ., m o ... 4 Z o - = Z . . ~ l: ... ... o - c r.: ,~ ',.,; """ := ,.... ,- o co E 8~ := I C'<") ~ ~ o ~ E C- o ~ u... ~ V .D co u C. 0- co ...., o Z ('C c .e .... :s 'C c::t rw E 8r-- =: I t<'l ~ Q) o ~ E c- 00 I C U'l ::lv o .;; ..::: 0 u t. .!::; tIl ::l U'l c..C!.l <- .f: o tIl ....... ::l c..o ~ t'tS V .- ti3ti3 C!.l .- :-:is t'tS t'tS 01) t;) ~ C C!.l t'tS ....... 0 U U'l.....v U'l 00= U'lc"::: < -_ u C!.l :0 t'tS U 0.. c.. C\S ...... o Z c ~ u... r.r:. Q) "S. 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Co) Q) :a' c oW qJC E QJ o :: fJ QJ = r:c - la :e qJ - ... ..J< Community_Development Block Grant Program Categories of Eligible Activities .:. 2-65 := o ~ co :: 8~ = '";'l r<J C!.l ~ :-. 01) o co E c- o v u... ~ ... 0=8 co ~~Il.)C o ..c '.:: 55 c........c... .2'~.8 & U'l v tI) Il.) CUll.) E' ~.~ ~ 0 8 ~ ~ ~ v 01) ro 2 -5 .:: ..c -....l c..... .:: co 00.E2 C U := v U'l t/J t/J ::l U'l 0 <..c t/J U'l ~ t'Cl v vcE S.Q ~ -........0 c..:o v Ev..c C!.l co ...... - .8 .~ co v..c t> -~ _ ..c: = 3: :5:<- "0 0 v v ...... ... U'l 0 ti3 E U'l co ... v 0 .!Q?ft. ... e-~ v ..... c v o ... U E v ..c E- t/J C o t/J ... Il.) c.. C!.l E o U t/J' c .0- 02 ?:::r roc 't) v ... c .... Il.) 0.0 Ct.l ,Q o - QJ S o v C - :e ::r - \Q I "'l "l::j ..... - t::: o \Q I "'l Cf) Q.J ~ ~ Q.J Q.J Cf) CI) Q.J '- ..... '- - :Ei 'Cij Cf) o ~ ~ '- ..... v Q.J :E;- o - t::: s::: o -- ..... I:::: s::: ~ - ..... o l.., ~ Special Activities by CaDOs . Preface The pUrpose of this preface is to emphasize the distinction b,etween subrecipients and Community-Based Development Organizations . (CBDOs) as they relate to the CDBG program. .:. The term "subrecipient" is defined at s570.500(c) to mean a public or private nonprofit agency, authority, or organization, or a for-profit entity authorized under s570.201 (0) to provide microenterprise assistance, receiving CDBG funds from the grantee to undertake activities eligible under the CDBG program. .:. While the types of organizations that qualify as CBDOs generally would meet the above description, the subrecipient definition at s570.500(c) excludes CBDOs unless the CBDO is spedjicalIy designated by the gran tee to be a subredpientfor CDBG program purposes. .:. Designation of an entity as a sub recipient affects the following: · whether any income that may be generated by a CDBG- funded activity that is received by the entity is considered to . be CDBG program income; · whether the grantee must enter into a written agreementwith the entity containing requirements specified at ~570.503 (although the grantee could elect to enter into such an ' agreement with a CBDO whether or not it is designated as a subrecipient); and · whether the entity is bound by the general administrative requirements imposed by the OMB Circulars in its adminis- tration of the CDBG funds provided to it by the grantee (although a grantee could require a CBDO to abide by these requirements as a condition of providing CDBG funds to the entity, without the need to designate it as a subrecipient). 2-66 .:. Categories of Eligible Activities . Community Development Block Grant Program . . , ~ ' ' l "'), '\ ./1(, !.=- L WI ~ i LJ,D C/<1 E- (( II 0 ("-J ~A.IN+ 1) \ a ~UJ:) INCOME VERIFICATION PROCESS Limited Clientele Verification may be necessary to show that a limited number of persons meet the low/moderate income qualification. To qualify, the CDBG-funded activity must meet one of the following tests: 1. The clientele is "presumed" to be low and moderate income, including abused children, battered spouses, elderly persons, adults defined as severely disabled, homeless persons, illiterate adults, persons living with AIDS, and migrant farm workers. 2. The clientele provides family and income information to be verified as being low and moderate. 3. The clientele participates in a CDBG-funded activity with eligibility requirements, including limits exclusively to low/moderate income persons. 4. The clientele participates in a CDBG-funded activity that by nature and location, it may be concluded that the activity's clientele will primarily be low/moderate income persons. 5. The activity serves to remove material or architectural barriers to the mobility or accessibility of elderly persons or severely disabled adults. Limited Clientele Verification Examples . Providing public services at a senior center based on the "presumed" category, or . Providing youth scholarships for community recreation events only to those who meet family income requirements. Housing CDBG-funded activities for the purpose of providing or improving permanent residential structures are eligible if occupied by a low/moderate income household. If a structure contains two dwellings, at least one must be so occupied, and if the structure contains more than two dwellings, at least 51 percent of the units must be so occupied. For rental housing, occupancy by low/moderate income households must be at affordable rents to qualify under this criterion. Under this category, a household is used to determine income eligibility rather than persons. Housing Verification Example Providing low or no-interest rehab loans to owner-occupied homes only for those households that meet income qualifications. Job Creation/Retention Certain economic development activities qualify when at least 51 percent of permanent jobs are created or retained on a full-time equivalent basis are low/moderate income. These jobs must be documented as either being held by, or will be available to low/moderate income persons. A person may be presumed to be low/moderate income if he/she resides within an eligible Census Block Area or an area where at least 70 percent of the residents Dakota County CDBG Program Manual 5-12 INCOME VERIFICATION PROCESS are low/moderate income, Otherwise, an individual income verification process must be used for the eligibility determination. . Job Creation/Retention Verification Example Implementing an economic development revolving loan program. Definitions of Income When verifying a person or household's income, three methods may be used to determine income: 1, Annual income as defined in 24 CFR 5.609, referred to as "Part 5 Annual Income". This is also commonly known as the Section 8 method. 2. Annual income as reported under the Census Long Form for the most recent decennial census. 3. Adjusted gross income as defined under the IRS Form 1 040 long form. Most CDBG recipients use the first method, Part 5 Annual Income. Therefore, the following information pertains to this method only. 1. Gross income (income before any deductions have been taken) is always used to determine eligibility. . 2. Income is always anticipated, meaning the amount of income expected to be received in the next twelve months. 3. Income earned from an asset (not its value) is counted in the calculation of income. An asset is cash or an item that can be converted to cash; only the cash value of an asset is counted as an asset. The anticipated income to be generated by the asset during the coming twelve months, such as interest on a savings account, is used to determine annual income. 4. Any family and non-family member of a household are counted for purposes of determining a household's annual income. 5. A "Sample Format for Calculating Part 5 Annual Income" is included for reference (Form 2-12), and the following income inclusions and exclusions tables are provided for the verification process. . Dakota County CDBG Program Manual 6-12 INCOME VERIFICATION PROCESS . Form 2-12: Sample Format for Calculating Part 5 Annual Income . . Sample Format for Calculating Part 5 Annual Income 1. Name 2. Identification ASSETS Family Member Asset Description Current Cash Actual Income Value of Assets from Assets 3. Net Cash Value of Assets... '" ... .., ... ...... 3. 4. Total Actual Income from Assets... ... .., ... ... ... ... ,.. ... ... ... ... ." ... . 4. 5. If line 3 is greater than $5,000, multiply line by _(Pass book Rate) 5. and enter results here; otherwise, leave blank. ANTICIPATED ANNUAL INCOME Family Wagesl Benefitsl Public Other Asset Members Salaries Pensions Assistance Income Income Enter the greater of lines 4 or 5 from above in e. 6. Totals a. b. c. d. e. Enter total of items of 6a. through 6e. 7. This is Annual Income. Dakota County CDSG Program Manual 7-12 INCOME VERIFICATION PROCESS Table 1-12: Sample Format for Calculating Part 5 Annual Income - Income Inclusions . 1, The full amount of wages, salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services (before any payroll deductions) 2. Net income from the operation of a business or profession, Expenditures for business expansion or amortization of capital indebtedness cannot be used as deductions in determining net income; however, an allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in IRS regulations. Any withdrawal of cash or assets from the operation of a business or profession is included in income, except to the extent with withdrawal is reimbursement of cash or assets invested in the operation by the family. 3. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness cannot be used as a deduction in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5000, annual income includes the greater of the actual income derived from net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. 4. The full amount of periodic payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump- sum amount or prospective monthly amounts for the delayed start of a periodic payment (except Supplemental Security Income or Social Security). 5. Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (see paragraph 3 under Income Exclusions) 6. Welfare assistance. If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income consists of: . The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus . The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph is the amount resulting from one application of the percentage. . 7. Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling 8. All regular pay, special day and allowances of a member of the Armed Forces. . Dakota County CDBG Program Manual 8-12 . . . INCOME VERIFICATION PROCESS Table 2-12: Sample Format for Calculating Part 5 Annual Income - Income Exclusions 1, Income from employment of children (including foster children) under the age of 18 years, 2, Payments received for the care of foster children or foster adults (usually persons with disabilities unrelated to the tenant family who are unable to live alone). 3. Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except for payments in lieu of earning - see number 5 in Income Inclusions), 4. Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member. 5, Income of a live-in aide, 6. The full amount of student financial assistance paid directly to the student or to the educational institution. 7. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire, 8, (a) Amounts received under training programs funded by HUD, (b) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self Sufficiency (PASS). (c) Amounts received by a participant in other publicly assisted programs that are specifically for, or in reimbursement of, out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and that are made solely to allow participation in a specific program. (d) Incremental earnings and benefits resulting to any family member from participation in qualifying state or local employment training programs (including training not affiliated with a local aovernment) and trainina of a familv member as resident management staff, Amounts excluded must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program, 9, Temporary, nonrecurring, or sporadic income (including gifts). 10. Reparation payments paid by a foreign government pursuant to claims under the laws of that government by person who were persecuted during the Nazi era. 11, Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household or spouse). 12. Adoption assistance payments in excess of $480 per adopted child. 13, For public housing only, the earnings and benefits to any family member resulting in the participation in a program providing employment training and supportive services in accordance with the Family Support Act of 1988, Section 22 of the 1937 Act, or any comparable federal, state or local law during the exclusion period. 14. Deferred periodic amounts from SSI and Social Security benefits that are received in a lump sum amount or in prospective monthly payments. 15. Amounts received by the family in the form of refunds or rebates under the state or local law for property taxes paid on the dwelling unit. 16, Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep this developmentally disabled family member at home, 17. Amounts specifically excluded by any other federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions apply. Dakota County CDBG Program Manual 9-12 . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Procedural Matters DATE: March 24, 2008 INTRODUCfION Attached are the Economic Development Authority By-Laws. DISCUSSION It is typical for the EDA to review and ultimately adopt the By-Laws in February of each year. Due to the timing of the transition of this Board the following needs to be addressed at this time: a. Adoption of By-Laws A copy of the proposed by-laws has been enclosed. If they appear to be acceptable, a motion to approve and adopt the by-laws would be in order. b. Election of Officers Section 1, subd. 3 of the EDA By-Laws provides that each year, the EDA shall choose a Chairperson and Vice-Chairperson. In the past, the EDA's procedure in this regard typically involved a nomination for Chairperson, a second, and a vote, followed by a similar process for the Vice-Chairperson. c. Official Newspaper Section 1, subd. 3 of the EDA By-Laws provides that each year, the EDA shall designate the official newspaper. A motion to designate the Farmington Independent as the official newspaper would be in order. d. Meeting Schedule Section 1, subd. 3 of the EDA By-Laws provides that each year, the EDA shall establish a meeting schedule for the year. ACfION REQUESTED Please provide action or direction for the above listed items. . Respectfully submitted, c/trwtNJjTs1JW;J Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky, Jr., City Administrator . . . . . 2008 ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS These By-Laws, when adopted, are intended to deal with matters not otherwise covered by State Law, City Ordinance or elsewhere. Section I - Meetines SUBD. 1- Regular meetings of the Economic Development Authority shall be held on the fourth (4th) Monday of each month at 7:00 PM. Any regular meeting falling upon a holiday shall be held on the next following business day at the same time and place. All meetings, including special and adjourned meetings, shall be held in the City Hall unless otherwise designated. SUBD. 2 - Special meetings of the Authority may be called by the Chairperson or in written form by any other three (3) members of the Authority, filed with the Executive Director. The Executive Director may also call a special meeting. At least 3 days before the meeting, the Executive Director shall notify each member of the time, place and purpose of the meeting by causing written notice thereof to be delivered to him/her personally if he/she can be found, or, if he/she cannot be found, by leaving a copy at the home of the member with some person of suitable age and discretion residing therein. At least three (3) days prior to the meeting, the Executive Director shall also post notice of the meeting and if applicable, notify each person who has filed an applicable written request for notice, or may, if necessary, provide such other more restricted notice, including but not limited to (as allowed'by Statute, such as) M.S. 471. 705, subd. 1 C, paragraph g, " if a person receives actual notice of a meeting of a public body at least 24 hours before the meeting, all notice requirements of this subdivision are satisfied with respect to that person, regardless of the method of receipt of notice." Emergency meetings may be held because of circumstances that, in the judgement of the Authority require immediate attention. The notice of special meeting shall state the item(s) to be discussed and acted upon. Items not stated in the notice may be discussed, but no action may be taken if any member objects. Any special meeting attended by a majority of the Authority members shall be a valid meeting for the transaction of business that may come before the meeting. SUBD. 3 - At the regular Authority meeting in February of each year, the Authority shall (1) designate the official newspaper; (2) establish meeting schedule for the year; and (3) choose a Chairperson and a Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons disability or absence and in case of a vacancy in the office of Chairperson and until a successor has been appointed and qualifies to fulfill the duties of Chairperson. SUBD. 4 - All Authority meetings, as defmed by State Law, including special and adjourned meetings shall be open to the public. The Authority Attorney shall advise the Authority in writing as to his interpretation of the state "Open Meeting Law" and all new members shall be provided such written interpretation. K:\TINA \Economic Development\EDA-HRA \EDA \By-laws\2008 EDA By-Laws.doc 1 Section II Presidine: Officer; Rules of Order . SUBD. 1 - The Chairperson shall preside at all meetings of the Authority. In the absence of the Chairperson, the Vice-Chairperson shall preside. In the absence of both, the Executive Director shall call the meeting to order and shall preside until the Authority members present at the meeting choose one of their number to act temporarily as presiding officer. SUBD. 2 - The presiding officer shall preserve order, enforce the rule of procedure herein prescribed, and determine all questions of procedure and order. Except as otherwise provided by statute or by these rules, the proceedings of the Authority shall be conducted in accordance with the following rules of order: A. A Motion must be seconded before being considered by the Authority and the The presiding officer must recognize mover, as well as the seconder. B. Any motion may be withdrawn by its mover with the consent of his/her second. But a motion, once debated, cannot be withdrawn except by a majority vote of the Authority. C. A motion will not be subject to debate until it has been stated by the presiding officer and he/she has opened it to debate. D. Each member, while speaking, shall confme himself/herselfto the question at hand and avoid all personal, indecorous or sarcastic language. . E. Whenever any member of the Authority desires to speak on any question, which affects him/her personally, he/she shall first vacate hislher chair and shall not resume his/her seat until the matter under consideration has been acted upon. He/she shall be allowed to make comments on the question as a private citizen only and while a member of the audience. F. Whenever public hearings are held, the presiding officer, shall allow any member of the public, the privilege of speaking. A reasonable time shall be allowed to anyone as long as they are not repeating points already made. The presiding officer shall maintain order and may rule anyone out of order. G. At any meeting, the presiding officer will allow the public to participate as long as there is reason to believe the input is beneficial. SUBD. 3 - Any member may appeal to the Authority from a ruling of the presiding officer. If the appeal is seconded, the appealing member may speak first on the reason for his/her appeal. General discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is approved by a majority of the members present. . K:\TINA\Economic Development\EDA-HRA\EDA\By-laws\2008 EDA By-Laws.doc 2 . . . . Section III - A2endas SUBD. 1 - The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Wednesday preceding the meeting for publication purposes. SUBD. 2 - Any member may place an item on the agenda by so instructing the Executive Director. SUBD. 3 - No item shall be placed on the agenda unless the item is expressed in such a way as to clearly show the subject matter involved SUBD. 4 - The agenda add-ons are subject to approval by a majority vote of the members present and further such add-on items may be discussed, but no action may be taken if any member objects. Section IV - Order of Business SUBD. 1 - Each meeting of the Authority shall convene at the time and place appointed therefore. Authority business shall be conducted in the following order: 1) Call to Order 2) Pledge of Allegiance 3) Approve Agenda 4) Approve Consent Agenda a. Bills b. Minutes c. Additional Consent Agenda items 5) Public Hearings 5) Continued Business 6) New Business 7) Executive Director's Report 8) Adjourn SUBD. 2 - The order of business may be varied by the presiding officer, except that all public hearings shall be held at the time specified in the notice of hearing. Section V - Minutes SUBD. 1 - Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her absence, hislher designee. In the absence of both, the presiding officer shall appoint a secretary pro tem. Resolutions need not be recorded in full in the minutes if they appear in other permanent records of the Executive Director and can be accurately identified from the description given in the minutes. SUBD. 2 - Minutes of each meeting shall be reduced to typewritten form, shall be signed by the taker, and copies thereof shall be delivered to each Authority member as soon as practicable after the meeting. At the next regular Authority meeting following such delivery, approval of the minutes shall be considered by the Authority. The minutes need not be read aloud, but the K:\TINA\Economic Development\EDA-HRA\EDA\By-laws\2008 EDA By-Laws.doc 3 presiding officer shall call for any additions or corrections. If there is an objection, the Authority shall vote upon the addition or correction. If there are no additions or corrections, the minutes shall stand approved by motion. If there is an objection, the Authority shall vote upon the addition or correction and approve the minutes by motion as amended. c . Section VI - Quorum and V otine SUBD. 1 - At all meetings a majority of all members shall constitute a quorum for the transaction of business. SUBD. 2 - The votes of members on any question pending before the EDA shall be by voice votes. Roll call vote can be requested by any member, except for the following agenda items; approval of the agenda; approval of the consent agenda; and the adjournment. The names of those voting for and against the question shall be recorded in the minutes. If any member present does not vote, the minutes shall state: "Abstain: Name". SUBD. 3 - Except as otherwise provided by statute, a majority vote of the quorum shall prevail. Section VII - Executive Directors Review The City Administrator shall complete an annual performance review of the Executive Director. The City Administrator will,provide an opportunity for Authority members to comment on the performance of the Executive Director. Section VIII - Suspension or Amendment of the Bv-Laws . SUBD. 1- These by-laws may be temporarily suspended by a unanimous vote of the members present. SUBD. 2 - These by-laws shall not be repealed or amended except by a majority vote of the whole Authority after notice has been given at some preceding meeting. Section IX - Effective Date SUBD. 1- These by-laws have been adopted by the on the day of immediately. ,20 and becomes effective Attest: EDA Executive Director EDA Chairperson Date: Date: . K:\TINA \Economic Development\EDA-HRA \EDA \By-laws\2008 EDA By-Laws.doc 4 JANUARY 2008 S M T W T F S .13115 6 .~10 1112 13~15 16 17 II 19 20. _ 23 2425 26 270.30 31 JULY 2008 S M T W T F S 1 2..5 6 **10 11 12 13 ~ 15 16 17 . 19 20.2223242526 2719 2930 31 FEBRUARY 2008 S M T W T F S 112 3*56789 10@~14 .16 17..2'0212223 240.2728. AUGUST 2008 S M T W T F S .2 3*56789 10@*14 .16 17 * 19 20 21 22 23 24~.27 28.30 31 SEPTEMBER 2008 Si~;~~: 7 8 9 * 11 . 13 14 16 17 18 19 20 21 01232425.27 28 29 30 MARCH 2008 8 M T W T F S 1 2*45678 9 @l~13 .15 16.18 1920 21 22 23~25 26 27.29 3031 APRIL 2008 S M T W T F S 12345 1~ .t~.~ 16 ~~ ~ : 201:.2324.26 2702930 OCTOBER 2008 S M T W T F S 1 234 5!74>9.11 12 + 15 16 17 18 19 21 22 23 . 25 26121.2930 31 MAY 2008 S M T W T F S 123 416781110 11 +~15 16 17 18 20 21 22. 24 25.~ 282930 31 NOVEMBER 2008 S M T W T F S 1 2*456.8 9 ~.~13 14 15 16. 18 19 20 . 22 2382526..29 30 DEceMBeR 2008 S M T W T F S ,234116 7 8~111213 14 16 17 18 .20 21023..2627 28 29 30 31 JUNE 2008 S M T W T F S 11345117 8 * 12 13 14 15 17 18 19 . 21 220.25 26 27 28 2930 www.ci.farmington.mn.U8 2008 PHONE NUMBERS . CITY HOLIDAYS + PLANNING COMMISSION . COUNCIL MEETINGS . PAYDAYS o WATER BOARD 6; EDA <> PARK & REC. COMMISSION o RRC ADVISORY BOARD HPC MEETINGS . Bonestroo 661- 636-4600 FAX 851-886-1311 WWW.boneetroo.com . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Economic Growth Committee (Dakota County Regional Chamber) DATE: March 24, 2008 INTRODUCfION The Economic Growth Committee [EGC] was created and appointed by the Dakota County Regional [DCR] Chamber of Commerce to serve as an advisory body to the City Council for the purpose of assisting with the efforts of expanding the tax base and increasing job opportunities within the City. DISCUSSION The City Council approved a Resolution (attached) in August 2006 to create an EGC between the City and the Chamber. Since that time the EGC has been formed by the private sector. See enclosed DCR Chamber of Commerce information regarding the purpose of the EGC. ACfION REQUESTED Staff would like the EGC and EDA members to discuss the EGC's role in relation to the EDA. Respectfully submitted, ~~~ Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky, Jr., City Administrator . . , . RESOLUTION NO. R93-06 ACCEPTING A PROPOSAL TO CREATE AN ECONOMIC GROWTH COMMITTEE BETWEEN THE CITY OF FARMINGTON AND THE NORTHERN DAKOTA COUNTYCHAMrnEROFCOMMERCE-FARNUNGTON Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 21 st day of August 2006 at 7:00 p.m. Members Present: Members Absent: Soderberg, Fogarty, McKnight, Pritzlaff, Wilson None Member Pritzlaff introduced and Member Wilson seconded the following: PROPOSAL: The formation of a new jointly recognized entity by the City Council of the City of Farmington and the Farmington Business Council of North em Dakota County Chamber of Commerce to herein be referred to as the Economic Growth Committee. PURPOSE: The Economic Growth Committee is an advisory body to the City Council Economic Development Authority (EDA) for the purpose of assisting in appropriate efforts to expand the tax base and increase job opportunities. FACTORS: The Farmington Area Business Council identifies economic development and redevelopment as a high priority and an important function for the economic well being of the City of Farmington, and The Farmington Area Business Council believes it is important to work cooperatively with the City of Farmington and the townships of Castle Rock, Empire and Eureka developing a public/private sector partnership for the economic growth effort of the Farmington area, and The Farmington Area Business Council believes the Economic Growth Committee shall be a resource in assisting the City Council and city staff in addressing various economic growth issues, and The Farmington Area Business Council believes the Economic Growth Committee shall be involved in the strategic planning process as it relates to economic development and redevelopment, and H:\RESOLUTI\2006 Resolutions\Economic Growth Committee 8-21-06,doc pjh The Farmington Area Business Council believes the Economic Growth Committee shall continue for a period as long as the City Council ofthe City of Farmington and the Farmington Area Business Council of the Northern Dakota County Chamber of Commerce shall deem necessary. . MISSION: The Farmington Area Business Council recognizes the mission of the Economic Growth Committee is as follows: h Receive input from and provide recommendations to the City Council EDA 2. Act as a sounding board for development and redevelopment projects 3. Assist in strategic planning and marketing for the City of Farmington 4. Serve as a working committee with the ability to form task forces and special committees to accomplish goals and objectives 5. Take pulse ofthe community with regard to image and retention of businesses. GOALS: The Farmington Area Business Council recognizes the Economic Growth Committee shall develop goals as follows: 1. Consistent with those established by the City Council 2. Take a proactive approach to city economic development and redevelopment 3. Provide employment opportunities, continued retention of jobs and enhancement of the tax base 4. Actively promote research, development and redevelopment of office/industrial parks 5. Promote research, development and redevelopment of historic downtown Farmington 6. Recognize the importance of the retail sector to the overall economic well being ofthe . City of Farmington WORK PLAN: The Farmington Area Business Council recognizes the Economic Growth Committee shall establish an annual Work Plan that will be submitted to the EDA and the City Council and Farmington Area Business Council for approval. MEMBERSHIP: The Farmington Area Business Council recognizes the Economic Growth Committee will consist of fourteen (14) select members who are either residents of or do business in the Farmington area. Seven members will be appointed by the City Council and seven members will be appointed by the Farmington Area Business Council of Northern Dakota County Chambers of Commerce. Members will be appointed by the following categories and count: Category Financial Institution Development Landowner Business Owner Utilities Education City Council Member Business Council Member At Large/Townships City 1 1 1 1 o 1 1 o 1o H:\RESOLUTI\2006 Resolutions\Economic Growth Committee 8-21-06,doc pjh Chamber 1 1 1 1 1 o o 1 1 . . . . Appointments made to the Committee shaH be for a three year term with a maximum continual service of three three-year terms or a total of nine years. The appointment and term of "Council Member" and "Business Council Member" categories shall be at the discretion of the City Council and Farmington Area Business Council respectively. Interim replacements shall be appointed by the appropriate Council and shall fill the term of the resigning member. The City Administrator or his/her designee and Northern Dakota County Chamber of Commerce President shall serve as ex-officio members of the Economic Growth Committee. FINANCES: Funding for the Economic Growth Committee will be budgeted by the City Council, Economic Development Authority and/or Northern Dakota County Chamber of Commerce. Standard fmancial and expenditure procedures will be followed according to the funding source and policies of the funding source. OFFICERS: A Chair and Vice Chair shall be elected by a majority vote ofthe Committee membership. The Chair and Vice Chair will serve one-year terms with a three year limit on successive terms. 't WORKING COMMITTEES/TASK FORCES: Any and all working committees and Task Forces shall be formed by consensus of the Committee. Any member of the Economic Growth Committee may serve on such Committees/Task Forces. Chairpersons of such groups shall be appointed by the Chair of the Economic Growth Committee. Any appropriate non-Economic Growth Committee members maybe appointed by the Chair of the Committee/Task Force. SPECIAL ECONOMIC DEVELOPMENT TASK FORCES/STUDIES: Membership on Special Economic Development Task Forces/Studies shall consist of appointments by appropriate parties to ensure balanced representation. Representative No. Appointed By: City Council 1 City Council Business Council 1 Business Council Planning Commission 1 Planning Commission At Large/Township 1 City Council EGC 1 EGC Chair EGC Chair 1 EGC Chair Ex-officio staff of the city and chamber If appropriate the following: Parks & Rec 1 Affected Parties max= 4 Parks and Rec Director Identified and selected by EGC Chair and approved by City Council The Chair of the Economic Growth Committee shall serve as Chairperson of such Special Economic Development Task Force/Studies. If a conflict is apparent regarding the appointments of any members, the City Council shall have the final decision. H:\RESOLUTI\2006 Resolutions\Economic Growth Committee 8-21-06,doc pjh REPORTING: A report will be provided annually to the EDA and City Council of the City of Farmington and Farmington Area Business Council. . NOW, BE IT FURTHER RESOLVED, that the Economic Growth Committee shall continue and carry out the responsibilities herein contained. Passed and duly adopted this /9+h day of ~ ' .;>. 00':: by the Farmington Area Business Council of the Northe Dakota County Chamber of Commerce. (j/4Jft ,& ATTEST: ~~ Rutlfe Batulis, President, Northern Dakota County Chamber of Commerce Attested to the 30+)., dayofG(7",d2006. / (.. ",,- . This resolution adopted by recorded vote of the Farmington City 21st day of August 2006. SEAL . H:\RESOLUTI\2006 Resolutions\Economic Growth Committee 8-21-06,doc pjh . dakota county C H A lA B E: R 0 F C 0 [vi Iv'! ERe E - Drivin.,g the New Agenda for Business November 30, 2007 FARMINGTON AREA BUSINESS COUNCil... EXECUTWE SUMMARY ECONOMIC GROWTH COMMITTEE The Economic Growth Committee serves as an advisory body to the City Council of Farmington for the purpose of assisting in appropriate efforts to expand the tax base and increase job opportunities. A resolution of support was passed by the Council in 2005. RATIONALE Economic development and redevelopment is a high priority and an important function for the economic well being of Farmington. It is important to work cooperatively with City Council and city staff developing a public/private sector partnership for the economic growth effort of the City. The Economic Growth Committee is a resource to assist the City Council and city staff in addressing various economic growth issues and will be involved in the strategic planning process as it relates to economic development and redevelopment. . MISSION 1. Receive input from and provide recommendations to the City Council; 2. Act as a sounding board for development and redevelopment projects; 3. Assist in strategic planning and marketing for the City of Farmington; 4. Serve as a working committee with the ability to form task forces and special committees to accomplish goals and objectives; and 5. Take pulse of the community with regard to image and retention of businesses. 6. Build strong relationships and facilitate cooperation between stakeholders for the future success of Farmington GOALS 1. Develop goals consistent with those established by the City Council; 2. Take a proactive approach to city economic development and redevelopment; 3. Actively pursue employment opportunities, job retention and enhancement of the tax base; 4. Actively promote research, development and redevelopment of office/industrial parks; 5. Promote research, development and redevelopment of historic downtown Farmington; and 6. Recognize the importance of the retail sector to the overall economic well being of Farmington . COMPOSITION . Composed of 10 to 14 members appointed by the Farmington Area Business Counci1/DCR . Members will be residents and/or do business in Farmington . Members will represent industry sectors/categories such as developer, financial, utilities, transportation, education, business owner, landowner, city council, business council/chamber, Township and at large members. . The City Administrator or his/her designee and DCR Chamber President serve as ex-officio members. . Chair and Vice-chair elected by EGC members annually. TERM . Term length 2-3 years. . Proposed maximum continual service of three terms. . MEETlNGS . Monthly on a regular day and time, Location to be determined GENERAL The Economic Growth Committee will establish an Annual Work Plan, consistent with the Mission and Goals of the EGC. The EGC would have the ability to form working committees/task forces and form special economic development task forces and/or studies, maximizing the depth of resources, knowledge and personal. Charter members of the Economic Growth Committee Bugaloos Nick Schultz Downtown Business Anchor Bank of Farmington Mark Kragness Financial Thelen Cabinets Jeff Thelen Business Park Castle Rock Bank LaVonne Nicolai Financial CG Construction Colin Garvey Develooper City of Farmington Peter Herlofsky Farmington City of Farmington City Council David McKnight Farmington Dakota Electric Association LaDonna Boyd Utility OCR Chamber of Commerce Ruthe Batutis Chamber Family Health Medical Clinic - Farmington Bob Finke Medical Independent School District #192 Doug Bonar Education . Marschall Line Inc. Jackie Serres Transportation Minnesota Energy Resources Ann Carlon Utility Roundbank Todd Seeman Financial Snap Fitness Barrie Marasco Business Pilot Knob . 10-6-20: INDUSTRIAL PARK DESIGN STANDARDS: Page 1 of 4 " 10-6-20: INDUSTRIAL PARK DESIGN STANDARDS: eUilding Material And Design: 1. Exterior Walls: Exterior walls of buildings to be constructed shall consist of one or more of the following materials and shall receive prior approval of the city: (a) Brick: Size, type, texture, color and placement shall be approved. (b) Stone: Stone shall have a weathered face or shall be polished, fluted or broken face. (c) Concrete Masonry Block: Concrete masonry block shall be those generally described as "customized architectural concrete masonry units" or shall be broken faced brick type units with marble aggregate. All concrete masonry units shall be coated with a city approved coating. There shall be no exposed concrete block on the exterior of any building unless approved by the city. (d) Concrete: Concrete may be poured in place, tilt up or precast; and shall be finished in stone, textured or coated, with a minimum life expectancy often (10) years. 2. Alternate Materials: Alternate exterior surface materials of preengineered metal may be substituted in an amount not to exceed six percent (6%) of the exterior wall surface area of each building if the following conditions apply: (a) Used for housing or screening equipment necessary to the manufacturing operations; . (b) Architecturally compatible with the building as a whole as determined by the city planning division; (c) Compliance with any additional screening and/or landscaping requirements of the city; and (d) Modifications are made with prior written approval of the city planning division. 3. Alterations To Buildings: Any alterations to buildings shall meet all requirements of this chapter. 4. Canopies: Canopies with visible wall hangers shall not be permitted. Design of canopies shall be in keeping with the design of the building and shall be approved by the city prior to construction or alteration. 5. Roof Mounted Equipment: All rooftop equipment shall be set back a minimum of twenty feet (20') from the edge of the roof and shall be screened. Screening shall consist of either a parapet wall along the roof edge or an opaque screen constructed of the same material as the building's primary vertical exposed exterior finish. Equipment shall be painted a neutral color. The site plan shall indicate all mechanical rooftop equipment and shall include elevations. 6. Loading Docks: The design of the loading docks shall be incorporated into the overa~1 esign theme of the building and constructed of materials equal to or the same as the principal building The loading dock areas shall be landscaped and/or screened so that the visual and acoustic impacts of t elr function is ...-tully contained and out of view of adjacent properties and public streetSJrhe rei.red width for a ~ndscaped yard along a local collector/industrial or local street is ten-:pret (10'). he architectural design shall be continuous and uninterrupted by ladders, towers, fences, and equipme Businesses that abut County Highway 50 and/or County Highway 31 shall not construct loading docks that front these http://66.113.195.234/MNIFarmingtonlI3006000000020000.htm 3/24/2008 10-6-20: INDUSTRIAL PARK DESIGN STANDARDS: Page 2 of 4 roadways. 7. Trash Containers: Trash containers or trash compactors shall not be located within twenty feet (20') of any street, sidewalk or internal pedestrianway and shall be screened by a six foot (6') masonry wall o. three (3) sides of the trash unit. 8. Coverage: Unless otherwise approved by the city, the ratio of building square footage and parking area shall not exceed sixty five percent (65%) of the total square footage of any building site within the affected property. (B)Utilities: All buildings and structures shall be served by underground utility distribution facilities. The installation of such utilities shall not change the grade or contour of the city approved grading plan for the site. (C) Building Setbacks: No building or other structure shall be erected within fifty feet (50') of the front property line; or twenty five feet (25') of the side and rear property lines. If two (2) or more lots are developed as one site, the interior common lot line shall be ignored. (D)Parking Areas: 1. Surfacing: Prior to issuance of a certificate of occupancy, all parking areas, driveways and loading areas shall be surfaced with asphalt or concrete pavement following the city's engineering standard plates. In the event said surfacing cannot be completed due to weather or seasonal restrictions, a temporary certificate of occupancy may be issued contingent upon the extension of the security or letter of credit required under this chapter. All parking lots located in the front of buildings or adjacent to street rights of way shall be curbed. . 2. Off Street Parking Spaces Required: Off street parking shall be provided to serve each site. The minimum number of parking spaces shall be the greater of: (a) One space for every six hundred (600) square feet of industrial space; and One space for every two hundred (200) square feet of office space; and One space for each two thousand (2,000) square feet of storage area or (b) One space per projected employee per shift. 3. Screening: All parking areas shall be screened as required in subsection (F) of this section. 4. Location: Parking shall not be permitted within ten feet (10') of the front property line (those facing any dedicated street), or within ten feet (10') of any side or rear property line unless otherwise approved by the city. (E)Landscaping: All open spaces shall be dustproofed, surfaced, landscaped, rockscaped or devoted to lawns. Not less than two-thirds (2/3) of the required building setback area from any dedicated street .1 be landscaped with lawns, trees, shrubs and walkways of a design approved by the city planning division. Landscaping shall be installed within ninety (90) days of occupancy or substantial completion of building, whichever occurs first, weather permitting. http://66.113.195.234/MN/Farmington/13006000000020000.htm 3/24/2008 10-6-20: INDUSTRIAL PARK DESIGN STANDARDS: Page 3 of4 Th-e following landscape standards shall apply to all proposed projects within the overlay zones: 1. Street Trees: Street trees shall be planted at one canopy tree per forty feet (40') of street frontage. . 2. Perimeter Parking Lots: One tree and three (3) shrubs per forty feet (40') of parking lot perimeter frontage. Plants are to be installed within ten feet (10') of the parking lot frontage area. 3. Interior Parking Lots: One planting island per twenty (20) parking spaces. One tree and three (3) shrubs are required within each planting island. The planting island shall be curbed with concrete. 4. Buffer Area: When the industrial district is adjacent to a residential district, a twenty five foot (25') buffer is required and shall include a six foot (6') high wooden fence and landscaping to screen the adjacent property. (F) Screening : 1. Storage Areas: Without prior approval of the city, no outside storage areas shall be allowed nor shall any articles, goods, materials, incinerators, storage tanks, refuse containers or like equipment be kept in the open or ex 0 ublic view or vi . cent buildings. If outside storage is given city approva :"8 I ria s an or containers and equipment s all be screened from view. Required screening shall include: a) a six (6) to eight foot (8') high opaque wooden fence and landscaping; b) landscaping and berms; or c) a combination of both to fully screen the outdoor storage. 2. Structure: No accessory structures (including, but not limited to, water towers, storage tanks, processing equipment, cooling towers) or outside equipment shall be constructed, erected or placed on .e affected property without prior approval of the city. If such approval is granted, such structures shall e screened from public view and the view of adjacent buildings in a manner approved by the city planning division. (G)Signs: All signs shall be of a design and material approved by the city planning division. Unless otherwise approved, wall signs must be attached to the building, and be parallel to and contiguous with its walls and not projecting above its roofline. No sign of a flashing or moving character shall be installed and no sign shall be painted on any building wall. Pole signs will not be allowed. Advertising billboards are not allowed within the overlay zone. (General guidelines for signage available through the city planner.) (H) Maintenance: 1. Owners and occupants of any or all of a site have the duty and responsibility, at their sole cost and expense, to keep the site, including buildings, improvements and grounds, well maintained, safe, clean and aesthetically pleasing. Such maintenance includes, but is not limited to, the following: (a) Prompt removal of all litter, trash, refuse and wastes. (b) Provide such care as required to maintain all vegetation in a healthy and aesthetically pleasing appearance. (c) Maintain exterior lighting and mechanical facilities in good working order. . (d) Maintain parking areas, driveways and roads in good repair. (e) Prompt repair of any exterior damage to any buildings and improvements. (Ord. 002-469, 2-19- http://66.113.195.234/MN/Farmingtonl13006000000020000.htm 3/24/2008 10-6-20: INDUSTRIAL PARK DESIGN STANDARDS: Page 4 of 4 2002; amd. Ord. 002-477, 7-15-2002) .' ~ .. lMv!1s~ ~<-/h P-;'1r~cJ . . . http://66.113.195.234/MN/Farmington/13006000000020000 .htm 3/24/2008 . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING January 28, 2008 1. Call Meeting to Order The meeting was called to order by Chairperson Arey at 7:00 p.m. Members Present: Arey, Starkman, Hardt, Collignon Members Absent: Flaherty, McKnight, Fogarty Also Present: Tina Hansmeier-Economic Development Specialist, Lisa Dargis- Administrative Assistant, Lee Smick-City Planner, Peter Herlofsky-City Administrator, Kevan Soderberg-Mayor, David Pritzlaff-City Council Member 2. Pledge of Allegiance 3. Approve Agenda MOTION by Hardt, second by Collignon to approve the agenda. APIF, MOTION CARRIED. 4. Citizen's CommentslPresentations None 5. Consent Agenda a.) Bills b.) November 26, 2007 Minutes c.) November Budget Details MOTION by Hardt, second by Collignon to approve the consent agenda. APIF, MOTION CARRIED. 6. Public Hearings None 7. Unfinished Business a.) Work Plan Update Staff compiled items that staff has been working on and how they relate to the priorities identified in the Comprehensive Plan Chapter. The contract with Global Synergy has been terminated and staff will be utilizing Mr. Fursman on an as needed basis. Member Hardt asked what the philosophy behind ending the contract was. City Administrator Herlofsky stated that staff is obtaining quotes from consultants for individual activities like addressing the potential for a second industrial park. He stated that staff was not utilizing the consultant enough to continue paying a monthly retainer and the consultant agreed. Member Hardt stated that he does not feel that we have the resources to do a ten year plan for EDA Minutes January 28, 2008 Page 2 . economic development. Chair Arey stated that since the contract was entered into by the EDA, he felt it should be the EDA who modifies or terminates the contract. City Administrator Herlofsky stated that the payment for the consultant was actually coming out of the general fund and we just received the termination letter. Chair Arey stated that they would like a copy of the letter for the next packet. Member Starkman asked what kind of feedback has been received through the business outreach visits. Staff explained that most of the feedback has been positive. Business members have indicated that they would like to see expanded marketing efforts and more incentive programs. Member Collignon stated that he would like to see a spreadsheet with some of the feedback from the visits compiled. 8. New Business a.) Joint Workshop The Historic Preservation Commission received a copy of the EDA's Comprehensive Plan Chapter and initiated scheduling a workshop with the City Council to discuss downtown. Staff felt that the downtown commercial district delineation should be the first steE' The boards and commissions will meet to discuss this issue on February 11 . Staff provided the EDA members with an overview of the Neighborhood Preservation Overlay District that the HPC has been working on, as it will also be discussed at this workshop. . b.) CDA Housing Rehab Summary At the November 2007 meeting the EDA requested a breakdown of the residential rehabilitation funding that has been used by Farmington residents. Staff provided a breakdown and noted that Farmington has used more than the allocated amount each year. The CDBG allocation that Farmington is receiving for 2008 is a 2% reduction from the 2007 amount. Half of the 2008 allocation was allocated to residential rehab. c.) Certificate of Completion Staff was contacted by a commercial real estate company that has been supporting the refinancing of a commercial loan for Just Kidding Around Daycare. A document verifying completion of the project and all requirements was requested. Staff is requesting approval of the certificate of completion for this project. Chair Arey asked if this step should have been completed earlier since the business has been operating for some time. Staff indicated that there is no indication in the City's records of the certificate being issued. MOTION by Collignon, second by Starkman to approve the execution of the certificate of completion. APIF, MOTION CARlED. . . . . EDA Minutes January 28, 2008 Page 3 d.) Rental Property update Staff is looking to move forward with making some improvements to the former liquor store building. The Dakota Valley Arts Council (DV AC) has expressed an interest to occupy the space. Regardless of what tenant eventually utilizes the space, there are some repairs that should be completed. Member Starkman stated that the building could eventually be demolished so he is concerned with spending $15,000 to improve it. He also inquired how the $15,000 estimate was compiled. Staff stated that there have been estimates obtained in the past for the construction work as well as a recent estimate for cleaning of the space. Staff indicated that there are no current plans to redevelop the site. Member Starkman stated that he would like to see new estimates obtained before approving an amount. The DV AC has provided a proposal regarding the space and what they would like to see repaired/remodeled prior to their use of the space. There has not been a particular rent price identified. Staff would like to make the space more presentable and would not like to compete with the other downtown landlords. The EDA members indicated that they would like to see new estimates before approving funding for improvements to the space. They would also like to see a proposal from the DV AC. Member Collignon asked staff to bring this item to the Downtown Business Association for their feedback on the DV AC occupying the space. MOTION by Hardt to authorize staff to spend the $15,000 to make the improvements that they have identified. MOTION DIED for lack of a second. Staff will bring more information to the February meeting for the members to reVIew. e.) School and Conference Staff would like to attend the 2008 Ehlers Public Finance Seminar. MOTION by Starkman, second by Collignon to approve the funding for staff to attend the conference. APIF, MOTION CARRIED. 9. City Staff Reports/Discussion a.) Economic Update Information received. b.) Downtown Idea Exchange Information received. c.) 2007 Business List Reports Staff provided year end reports regarding new businesses that have opened in Farmington and those that have closed or relocated. d.) Chair Arey thanked Member Hardt for his contributions to the Economic Development Authority during his time on the board. EDA Minutes January 28,2008 Page 4 10. Adjourn MOTION by Collignon, second by Starkman to adjourn at 7:58 p.m. APIF, MOTION CARRIED. \'" Resp~ctfuU~ 'submitted, ,.,." ' ""'''' "\- ]..' \ ".. . , , , . < .. ~,,~'c~.. ('ka Dargi~--"- ,..l ", "j Administrative Assistant J . . . ~ . . . MINUTES Special City Council Meeting February 25, 2008 1. Call Meeting to Order The meeting was called to order by Chairperson Arey at 7:00 p.m. Members Present: Soderberg, Pritzlaff, Fogarty, McKnight, Wilson Members Absent: None Also Present: Tina Hansmeier-Economic Development Specialist, Lisa Dargis- Administrative Assistant, Peter Herlofsky-City Administrator, Chad Collignon-EGC, Michelle Leonard-Farmington Independent, Mark Bubbers 2. Informational Items a) Procedural Matters Staff is seeking consensus regarding what meeting day and time the members would like for the upcoming year. Councilmember Fogarty proposed that the meeting be held prior to a City Council meeting or workshop. Mayor Soderberg stated that he is concerned that there would not be enough time. Consensus was reached to leave the meeting time as it is currently; the fourth Monday of each month. Once it has been determined how long is necessary for the EDA meetings; the day or time could be changed at a later date. b) ED Strategy/Activity Update Staff has compiled a list of activities as they relate to the lCMA Peer Group Study that took place in January of2007. As indicated in the original strategic planning session that took place; a follow up visit will be scheduled with Mr. Rapp to assess the progress over that last year. Councilmember Wilson asked the status of marketing efforts as they pertain to economic development. Staff stated that the marketing is ongoing but there has been discussion regarding the possibilities of a second industrial park which would play an integral role in the marketing materials. Until the direction on that issue is more definitive there are some components of the marketing materials that are on hold. Councilmember Wilson asked if the EGC would be reviewing the Comprehensive Plan information. Staff will be bringing this information to the EGC meeting on Thursday. A proposal has been received from Bruce Maus regarding a consulting contract for negotiations with landowners for industrial property. Staff is also in communication with Campbell Knutson and former City Engineer, Lee Mann regarding a similar proposal. More information will be provided at the March 24, 2008 EDA meeting. c) Rental Property Options The former liquor store building has been vacant since Broadband Solutions vacated the space. There are two interested parties at this time. The Dakota Valley Arts Council (DV AC) has expressed an interest in the building and an embroidery business has also indicated that they would like to rent the property. The building is ~ EDA Minutes February 25,2008 P~e2 . in need of repair at this time and staff has been obtaining quotes to make improvements to the space. Mayor Soderberg stated that he feels that the City should do the improvements rather than have the lessee make the repairs. Councilmember Pritzlaff stated that he would like us to do any work that might result in any kind of liability against the City of Farmington if it were handled by others. He also stated that the renter should have their own insurance for their property inside of the building. Councilmember Wilson asked if there had been any consideration given to selling the property. The EDA has been retaining the property in anticipation of potential redevelopment on the comer of Third and Elm Streets. Councilmember Fogarty asked if there was any evidence of mold in the building. Staff stated that they have not observed any mold. Councilmember Fogarty also asked what the market value of the building is. Staff stated that they will provide the current market value information. Councilmember Pritzlaff stated that the amount seems to have gone up from the initial estimates regarding making improvements to the space. He also asked if there had been any discussion regarding a lease rate. Staff stated that $8-$10 per square foot has been discussed. Staff stated that the difference in the estimates results from additional items and the original estimates that were obtained in 2006. Councilmember McKnight stated that he would be willing to make improvements to the space because it previously worked as an incubator space and could potentially do so again. He stated that he would also prefer to have the embroidery business occupy the space as opposed to the DV AC. Mayor Soderberg . stated that perhaps an EGC member would be a good resource for advice on some of the lease details. He also stated that the minimum improvements should be made regardless of the eventual tenant. Staff stated that not all of the bids have been received. The consensus of the Council was that they would prefer to see the tenant pay rent and they would not be in favor of letting anyone occupy the space for free if we are making improvements to the space. Councilmember Wilson stated that he would like to see if we can provide more than one space if we have two interested parties. Staff will look into other options for the DV AC. d) Update on EDA property The McVicker and Riste lots located in the downtown have been vacant for some time. Staff is looking for direction to get appraisals of the current values for these properties. There have been two inquiries recently regarding what we would potentially sell the properties for. The estimate for the appraisals is for $5,000. Councilmember Fogarty feels that the cost is unreasonable. Councilmember McKnight stated that he would not like to pay that amount for the appraisals either. Consensus from the Council was to not perform the appraisals. e) Exchange Bank Building Update Mr. Hosmer Brown is in default of contract for the Exchange Bank Building renovation. Staff was previously informed by the City Attorney that Dakota County Abstract did not have the signed warranty deed as was provided as a remedy to . default in the original contract. Staffhas recently been informed that Dakota County . . . EDA Minutes February 25, 2008 Page 3 Abstract does indeed have the signed, original document. Due to changes to the status of the work that has taken place since the last default notice; staff has directed the City Attorney to issue a 30 day notice to Mr. Brown indicating that he will have until April 1, 2008 to complete all work and qualify for a Certificate of Occupancy from the City Building Official. If Mr. Brown does not complete the renovation work by that date, the City of Farmington will record the executed warranty deed returning the building to the EDA. 3. City Staff Reports a) Economic update Information received. b) Downtown idea Exchange Information received. c) Article from Dakota County Tribune Information received. d) Business Reports A listing of new businesses that have come to Farmington, expanded, relocated or closed was distributed. Information received. 4. Adjourn MOTION by Fogarty, second by McKnight to adjourn. APIF, MOTION CARRIED. ~" Respectfully submitted, ~iS'DargiS '(\~ Administrative ASSIstant ~ N .;; .. ~ g, o Cl. ~I~ ~ ~ $ ~ ClO ClO .... .... o 0 '" '" o 0 '" '" N N r- r- '" ~ ..; ClO '" '" iii '0 ClO en t- O LU 'l:: Z ~ 0 <.> 0 . .. N 5 C- O> E ;;; a:: a:: E N LU " ;;; en en 0 ...J a:: -'" <l: <.> Z <l: 0> ClO 0 U. .r:: <:> u. <.> 0 Cij <.> 0 '(j N en ii: ~ c ;<; 1)1~ a:: t- " N LU <.> (3 0 N '!!!. 0 J: LU <.> <:> .<:> a:: t- ...J o Cl. 0 LU t- t- t- Z Z Z LU LU W ::;; ::;; ::;; Cl. Cl. 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N "! ~ 0; ~ <0 000 000 "'00 r-:..:fai 5j i~~~ ~ c 8 :a CII ~~~~g 'E:g ~.i! l! ~~~~8 <DOC'\lOLO T'"U')!'T'"1.l) 1J')000lO(l') "'t'lt"'t1l)1J) <0 .... N 't .,. ... N "! ~ .,. 0; N 0; o o '" o N s o I- '0 " "I ill ~ .. .. m !i o I- o " o > o Z tJ o g " r/J g <( ~ ~ " c: ~ 1; ::. q <( .. ::. .0 " IL c: .!l ~l ~~ ---.................... ~5~~~~~~~~~~~ oi55cootJ)~{D~o:go~ :Jt:Jt'"= N ~g~g~~~~~~ g <ON.r cri ... ~ en Lt)lX)(OU) 'lit NCD('I)T'" "It .....(f)N .; N~O ~"'O ...-Nq ~ .,. o <0 '" ...<Oco (')(')0 ~(')~ 0> "'... co N<O co N N~O ~"'o T"" NO. ~ co ~ ~ gggggggggg 8 OOLOIOIll(I') NNN 0 g~-...: ~ ~I" " .!! ,,'Q. Q. " :J UJr/J .. .. !!' .. .. ij~ ~ ~ od.~ ,~_ g ~ CII CIl U (1) Q, w ~~~~ ~ ~~ g>~ ~.g'~~ ~B'a~ 'E~ ~ : (I) .a..g 10 c: ~ cri5 gt 8, ~ ~ .!.!~.~t52~:S ;:5 m o,~ o~~:i~~E6-6~~~.E .....C"')T'"N(")U)OOOll)OO ~~~~~~~~~~~~ ..--.. OODll) ~~~~ """" ~ 0: ... .... 0> ai <0 .,. .... .... .... .,; .,. ~ ..., (') N ... .,. ~ ... rJ ... .,. ~ ... .; N ... .,. '" ;;: .; N ... .,. '" ;;: .; ~ .,. '" ;;: .; N ... .,. '" ;;: .; ~ '" ;;: .; N ... ~ ... .; N ... '" ;;: .; N ... co (') '" ;;: .; ~ .,. ~ ~ ~ '" ... ~ " ~ UJ 8 I ~ ~ ~ ~ i .. ~i ,YO g~ !i ~~ ~.g 0> (') <0 ~ ~ 0> .; ~ .,. o o '" .,; .... !l c: .. 'ii lD '0 c: :J IL .,. .. 15 I- . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: School and Conference DATE: March 24, 2007 INTRODUCTION Lisa Dargis would like to attend four Economic Development Finance Professional courses offered through the National Development Council. DISCUSSION As indicated on the attached flyer, the National Development Council will be offering the four courses required for certification as an Economic Development Finance Professional at North Hennepin Community College. Previously, none of the required courses were offered in Minnesota. Each course is one week in length and consists of training and a final exam that is required for certification. At the completion of the four weeks of training, participants who pass all four examinations are awarded EDFP certification. The cost of each course is $975 and would be paid out the EDA's budget. This will require transferring funding allocated to the miscellaneous account to the training and subsistence account. ACTION REQUESTED Approve attendance for Lisa Dargis for the Economic Development Finance Professional Certification Program courses. R~ee~ Submitted, ,/ ~ C "C;'" ie".. , ~~ Lisa Dargis, Admin~ Assistant . EDFPCertification Program'" The National Development Council's Economic Development Finance Professional (EDFP) Certification Program is coming to the Twin Cities! This 4-course program is a rigorous and comprehensive training series designed solely for economic development practitioners. Participants learn the tools and techniques of the trade to build the capacity they need to successfully create jobs and translate economic development opportunities into results for their communities. Topics include business credit and real estate finance analysis, loan packaging, negotiating, problem solving, deal structuring and more! Each of the four courses is five days in length: ED 101- Economic Development Finance April 7-11, 2008 ED 201 - Business Credit Analysis July 14-18, 2008 ED 202 - Real Estate Finance Sept. 29-0ct. 3, 2008 ED 300 - The Art of Deal Structuring Dec. 8-12 2008 Registration & Tuition Information To register, complete and fax a printable registration form, available online at www.nationaldevelopmentcouncil.org, to NDC's Training Division at 859-578-4860 or complete and submit the online registration form. The cost of each course is $975. Course Location Contact Information North Hennepin Community College Adult Education & Training 7411 85th Avenue North Brooklyn Park, MN 55445 Contact: Heidi McManus ph: 763-493-0580 hmcmanus@nhcc,edu National Development Council 927 Dudley Road. 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Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECf: Rental Property - Former Liquor Store Building DATE: March 24, 2008 INTRODUCfION Staff has been directed to work with a tenant to rent and occupy the vacant building space at 305 3rd Street, formerly the City's downtown Liquor Store. DISCUSSION Direction was provided to make improvements to the building's interior to make the space more suitable for a tenant to occupy the space. Staff obtained three (3) estimates (attachments #1- #3) all based on the same items, which are enclosed. Staff opted to go with Always- Handy Handyman Services due to the estimated cost being significantly lower. There has been some change orders which were anticipated prior to the start of work because it was unclear what the condition of the floor would be underneath the carpet. An agreement (attachment #4) has been entered into with the Contractor and signed by the Executive Director which will need execution by the Chair of the EDA. In addition, please see the attached Lease Agreement (attachment #5) for details regarding the specifics of the lease, as prepared by Campbell Knutson. ACfION REQUESTED Motion to approve and authorize the Chair of the EDA to execute the following documents: 1) EDA/ Contractor Work Agreement 2) Lease Agreement ~e!:~ctful~ su~mitted, ~ 'Ptrtj-'la/r;rJfl(/L-/ Tma Hansmeier, Economic Development Specialist cc: Peter Herlofsky, Jr., City Administrator Always-Handy Handyman Services Keith Kristiansen .1 07 Walnut 8t armington, lvfN 55024 License # 20595026 Bill To City ofFarrnington Old Liquor Store P,O, Number Terms Due Date Due on receipt 3/3/2008 Description 7 Labor for Removal of Old Carpet and fixing Middle of the Floor where old tile meets old carpet (Unforeseen problems with underlayment will need to be addressed for abor and material once carpet has been emoved) 7 Carpet Cost 7 Carpet Installation 7 Modify Duct work on South Wall 7 Remove Metal Parts along South Wall and Fill with Mud & Plaster 7 Extend Drop Ceiling to South Wall 7 Remove wall and Door to no where 7 Hang Drywall and Tape and Mud Both Sides 7 Removal of shelves in front room 7 Cleaning of Interior upstairs and Basement 7 Electrical Bid 'From Cities Electric 7 Install 3 Doors & Hardware 4 Dumpster Quantity/Hrs Bid does not include unforeseen problems . Phone # 651-207-9579 ESTIMATE (D Date Estimate # 3/3/2008 125 Ship To Rep Customer # . Project Price/Rate Tax Amount 1,646.00 1,646.00 2,145.00 895.00 183.00 360,00 2,145.00 895.00 183.00 360.00 1,584.00 324.00 373.00 1,584.00 324.00 373.00 240.00 676.00 2,735.00 576.00 375.00 240.00 676.00 2,735.00 576.00 375.00 Total $12,112.00 Payments/Credits $0.00 Balance Due $12,112.00 @ . ServiceMASI'ER Deutsche Contracting, Inc. Clean 1IIed<<m_~ . ""..-"",,,,,",, 450 Armstrong Road Northfield, MN 55057 Lic # 20354617 Insured: City of Farmington Property: 305 3rd St Farmington, MN 55024 Claim Rep.: N/A Estimator: N/ A Contractor: Company: Deutsche Contracting, Inc. Business: (612) 490-3736 Home: 450 Armstrong Road Northfield, MN 55057 Claim Number: Policy Number: Type of Loss: Coverage Dwelling Other Structures .. Contents Deductible $0.00 $0.00 $0:00 Policy Limit $0.00 $0.00 . . $O'.mr . Date of Loss: Date Inspected: Date Received: bate Entered: 2/25/20086:19 PM. Price List: MNMN5B8A Restoration/Service!Remodel Estimate: 2008-02-25-1819 . . . v .~~~.,,~ . ! ! . 0 > " 0 9 . o .;; 5 ~ 0 ~ g I) a I 0 ~ 1110~U G~\" \ '0 ,l fr -I LO/tO/LO ..........-. ~~ - .",,"\.1"' :J'o'r 8'0''' .....,,,.., >>." ,J~~;~~;;~',"" .~"'"-"'.,, , 3S'o'Hd _ N'o"d 3!'S ':JNI '!N3"dO'3^3~Y;:'"'d'~d ': I) __:::.=_ .::...-: I ,to" '" 'N010N"'" C V 0 =.:.':._.::.= I 133.15 "'.0' NOI?~::>013~ 'JNI01ln8 3'JVl101S ~~~-llOd ,0 0,1 .l::J3r01!ld Q3S0d01!ld =_ Ii; "~,!_ji ' ~ ;! E ~~ ______________u____________________J~_______ r---m- -ffi nJ!. .; :;:; -,' _/____m___ -, _1: _ _ .JJ1' f.;,_----m-nmn----- If' ,/ i r / r:-v 3{-1\j. in-I::' ~~rA-------!-----------I--m-'n-' i /' "=/"='~ ' ~ . ~ ~ -:.___ / /', 'ffi i /1 i ~~ I /' -,1 ~ ~w i _ _ _ i ~I ~ / / /1 '7.:1I\1 __ r- __ _ _ __ __ -r---..---;-'''':'- ' T if ' 'IV : _ _ ---"7g / ,I" ,o~~1 ::1 : ~ ~ ~ffi /' . I' \"i"":;;- , o. u~ · I : oc ~5 0 I fi ~ 11J " ",.' "4" '1 (: ///4 dl .. ->,:/ II i ; ; / ; !' ",~, ~I !~/ I J / i! 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MAINTAIN A MINIMU FROM NNG PIPELlNi~ TglEARANCE OF 12" 1C WATER MAIN P PROPOSED 16" 11 SHAll BE ROUr:OPOSED 16' WATER MAIN NNG PIPELINE. D BELOW THE EXISTING 1: ........... -- 1: INSTAll.. 16'x 16" TEE INSTAll.. 255 LF. OF 1~~D ~ik:OC~ATERMAIN, AND 16' GV VALVE IJ.:E N~~~~~~lND WATER 1- 1 ~ .~ +~,"). CONCRETE CURB " GUTTER ,\-rY?,) ",<~' 1f l' ELEV.=915,28 11 1! - C-f1'1 (pVfZ-6~ . _ ~ Mlt{(t..PH7 p(2.o~ __, R 1"'1 ~ ( l:c; A-N PR-o f'e~-r:r ServiceMASTER Deutsche Contracting, Inc. Clean ""/"'~=....- . 450 Armstrong Road Northfield, MN 55057 Lie # 20354617 . 2008-02-25-1819 Main Level 206.70 SF Walls 248.11 SF Walls & Ceiling 4.60 SY Flooring 25.84 LF Ceil. Perimeter Ceiling Height: 8' 41.42 SF Ceiling 41.42 SF Floor 25.84 LF Floor Perimeter f--6'3" ---l Office 1'1' DESCRIPTION QNTY REPLACE 0.59 REMOVE Floor preparation for sheet goods 41.42 SF 0.00 Apply floor leveler (latex embossment) - fill gaps, cracks or chips - for smooth surface prior to installation Remove Glue down carpet 41.42 SF 0.51 . Glll~.~<?w.n<::ary,~t"_,,, ,,_,..__, 47.63,S_F___ ...,..,__",,__.,0.00 15 % waste added for Glue down carpet. 0.00 2.75 TOTAL 24.44 21.12 130.98 -".'-- Totals: Office 176.54 8'1. 308.00 SF Walls .398.26 SF Walls & Ceiling. 10.03 SY Flooring 38.50 LF Ceil. Perimeter Ceiling Height: 8' 90.26 SF Ceiling 90.26 SF Floor 38.50 LF Floor Perimeter 1--8' 7. --l I 10 1 Storage - ..... 8'5"[ DESCRIPTION QNTY REMOVE REPLACE Floor preparation for sheet goods 90.26 SF 0.00 0.59 Apply floor leveler (latex embossment) - fill gaps, cracks or chips - for smooth surface prior to installation Remove Glue down carpet 90.26 SF 0.51 0.00 Glue down carpet 103.80 SF 0.00 2.75 15 % waste added for Glue down carpet. Finish Carpenter - per hour 3.00 HR 0.00 59.63 Remove shelving units and dispose. 2008-02-25-1819 3/14/2008 TOTAL 53.25 46.03 285.45 178.89 page:. . ServiceMASTER Deutsche Contracting, Inc. Clean '1bedm)W~ . ....-............ 450 Armstrong Road Northfield, MN 55057 Lic # 20354617 CONTINUED - Storage DESCRIPTION QNTY REMOVE REPLACE TOTAL 5/8" drywall- hung, taped, floated - ready 1.00 EA for paint Sheetrock, mud and tape east wall of "Storage" room. 0.00 315.00 315.00 Totals: Storage 878.62 Cooler Area Ceiling Height: 8' 425.36 SF Walls 726.48 SF Walls & Ceiling 33.46 SY Flooring 53.17 tn:::eil:P6rlmeter 301.13 SF Ceiling 301.13 SF Floor 53.17 LF Floor Perimeter Missing Wall: 1 - 36'6" X 8'0" Opens into Sales Floor Goes to Floor/Ceiling DESCRIPTION QNTY REMOVE REPLACE TOTAL 0.59 177.67 Floor preparation for sheet goods 301.13 SF 0.00 Apply floor leveler (latex embossment) - fill gaps, cracks or chips - for smooth surface prior to installation Glue down carpet 346.29 SF 0.00 2.75 15 % waste added for Glue down carpet. Framing repair - Minimum charge 1.00 EA 0.00 Mud, tape, and paint drywall. 1.00 EA 0.00 The above two line items are to build soffit over "cooler" area, sheetrock, and finish. Suspended ceiling system - High grade - 2' 345.00 SF 0.00 x2' 275.00 525.00 2.73 HV AC Technician - per hour 5.00 HR 0.00 86.40 Labor and material to remove ductwork, terminate at floor, and install vent covers and remove hot-water heat plates. Mud, tape, and paint drywall 1.00 EA 0.00 390.00 Patch and finish drywall. . 2008-02-25-1819 3/14/2008 952.30 275.00 525.00 941.85 432.00 390.00 Page: 3 ServiceMASl'ER Deutsche Contracting, Inc. Clean ,..-~=....-. 450 Armstrong Road Northfield, MN 55057 Lic # 20354617 . DESCRIPTION CONTINUED - Cooler Area QNTY REMOVE REPLACE TOTAL Totals: Cooler Area 3,693.82 Back Entry D" 118.00 SF Walls 142.18 SF Walls & Ceiling 2.69 SY Flooring 14.75 LF Ceil. Perimeter Ceiling Height: 8' 24.17 SF Ceiling 24.17 SF Floor 14.75 LF Floor Perimeter . ._. _._..____._ . .......__..___.._.u..._..__ . _ .+ _______ .._....__ ..___.... _.._' .h..... .-___,_~....__..__.__.._._.__.__..__.. -~-... "-.,-"".-",,.,-,.,-,--,,--'--'---'-------" Missing Wall: 1- 4'11" X 17'0" DESCRIPTION .. cleaning charge per step Opens into Stairs QNTY 15.00 EA ...REMOVE 0.00 . Goes to Floor/Ceiling . REPLACE 3.12 TOTAL 46.80 Totals: Back Entry 46.80 Storagel I!!!!!t!!m. DESCRIPTION Interior door unit 288.92 SF Walls 356.51 SF Walls & Ceiling 7.51 SY Flooring 36.12 LF Ceil. Perimeter QNTY 1.00 EA REMOVE 0.00 Ceiling Height: 8' 67.59 SF Ceiling 67.59 SF Floor 36.12 LF Floor Perimeter REPLACE 154.20 TOTAL 154.20 Totals: Storage I 2008-02-25-1819 3/14/2008 154.20 page:. .senficeMASTBR Deutsche Contracting, Inc. Clean '1be-..~~ II> 7...,."",)w-.. 450 Armstrong Road Northfield, MN 55057 Lic # 20354617 lli!:.tf 96.00 SF Walls 104.66 SF Walls & Ceiling 0.96 SY Flooring 12.00 LF Ceil. Perimeter Ceiling Height: 8' 8.66 SF Ceiling 8.66 SF Floor 12.00 LF Floor Perimeter Janitor 1-2'9' -l Bathroom Interior door unit QNTY 1.00 EA REMOVE 0.00 REPLACE 154.20 TOTAL 154.20 DESCRIPTION Totals: Janitor 154.20 .--- ........ 1T~ fT9" 317.59 SF Walls 403.10 SF Walls & Ceiling _H__ ... .... , _, .~. _.___,,_ ro' 9.50 SY Flooring 39.70 LF Ceil. Perimeter ,-, -CeiliiIgHeJgh1:S'-- 85.51 SF Ceiling 85.51 SF Floor . - nu __'__' ,_"_... . .- -~ .. - P' 39.70 LF Floor Perimeter -B"iitliroom- ---,... ..-------...,.---.-----,. ---- Missing Wall: 1- 4'11" X 17'0" Opens into Stairs Goes to Floor/Ceiling QNTY REMOVE REPLACE TOTAL 1.00 EA ,.0.00 154.20 154"20 85.51 SF 0.00 0.29 24.80 1.00 EA 0.00 17.62 17.62 1.00 EA 0.00 7.68 7.68 1.00 HR 0.00 28.31 28.31 232.61 DESCRIPTION Ip,teripf door unit . Clean floor Clean toilet - Heavy Clean sink Cleaning Technician - per hour Totals: Bathroom . 2008-02-25-1819 3/14/2008 Page: 5 SeroiceMASTER Deutsche Contracting, Inc. Clean ""-~=........... . 450 Armstrong Road Northfield, MN 55057 Lie # 20354617 . 845.36 SF Walls 1,818.60 SF Walls & Ceiling 108.14 SY Flooring 105.67 LF Ceil. Perimeter Ceiling Height: 8' 973.24 SF Ceiling 973.24 SF Floor 105.67 LF Floor Perimeter Sales Floor Missing Wall: 1 - 36'6" X 8'0" Opens into Cooler Area Goes to Floor/Ceiling DESCRIPTION QNTY REMOVE REPLACE TOTAL 574.21 ,Floor preparation for sheet goods 973.24 SF 0.00 0.59 Apply floor leveler (latex embossment) - fill gaps, cracks or chips - for smooth surface prior to installation Remove Glue-down carpet - mat. per specs 973.24 SF 0.51 0.00 from indo analysis Glue down carpet 1,119.22 SF 0.00 2.75 _ ____,_,l5.%.waste_adde.dioLGlue-dowRcarpd..., _ --- ,-----. ---. " ,- - ,-- ------,--,------.---, -, .-- . - --,. ------.. ' Clean shelving - wood 100.00 LF 0.00 0.56 496.35 3,077.86 Totals: Sales Floor _..__.__.....__... .,..... __H h . General Site ~..,. Fi_~ _.~' ->.~........ -, ... '~-".:, - -' - - .. < "-~ -- 4,00 EA 0.00 REPLACE TOTAL 73.25 146.50 3,100.00 3,100.00 0.00 393.64 15.22 60.88 . 3/14/2008 Page: DESCRIPTION QNTY REMOVE Administrative/supervisor labor charge 2.00 HR 0.00 Labor for General Contractor - Submit and administer permits, inspections, and QNQC. ELECTRICAL - Bid item 1.00 EA 0.00 Detailed description attached. Dumpster load - Approx. 20 yards, 4 tons of debris Add for personal protective equipment - Heavy duty 2008-02-25-1819 1.00 EA 393.64 ServiceMASI'ER Deutsche Contracting, Inc. . """""'''''_ Clean, ""-,........ 450 Armstrong Road Northfield, MN 55057 Lie # 20354617 CONTINUED - General Site DESCRIPTION QNTY REMOVE REPLACE TOTAL Apply anti-microbial agent 0.00 SF 0.00 0.19 0.00 Negative air fan/Air scrubber (24 hr period) 1.00 DA 0.00 72.19 72.19 - No monit. Boots - waterproof latex - Disposable (per 4.00 EA 0.00 6.84 27.36 pair) Totals: General Site 3,800.57 .---' Total;-MaiIrLevel --------..1-3;3#:'18------- --_... basement [' .. '] , . . j I 977.33 SF Walls 1,890.25 SF Walls & Ceiling 10 1.44 SY Flooring 122.17 LF Ceil. Perimeter 912.92 SF Ceiling 912.92 SF Floor 122.17 LF Floor Perimeter basementl Ceiling Height: 8' -- Clean floor Apply anti-microbial agent Content Manipulation charge - per hour QNTY 912.92 SF 912.92 SF 1.25 HR REMOVE 0.00 0.00 0.00 REPLACE 0.29 0.19 35.50 TOTAL 264.75 173.45 44.38 DESCRIPTION Totals: basement 1 482.58 . 2008-02-25-1819 3/14/2008 Page: 7 ServiceMASl'lJR Deutsche Contracting, Inc. (Jean ""-~=",..- . 450 Armstrong Road Northfield, MN 55057 Lic # 20354617 e ... I 525.33 SF Walls 794.73 SF Walls & Ceiling 29.93 SY Flooring 65.67 LF Ceil. Perimeter Ceiling Height: 8' 269.40 SF Ceiling 269.40 SF Floor 65.67 LF Floor Perimeter basement sto - . ~ t t Clean floor Apply anti-microbial agent QNTY 269.40 SF 269.40 SF REMOVE 0.00 0.00 REPLACE 0.29 0.19 TOTAL 78.13 51.19 DESCRIPTION Totals: basement sto 129.32 Total: basement 611.90 Adjustments for Base Service Charges . _lJ~~~!~~__________ ed- Adjustment ______~igd1e..t~tS~~!Q.!~~.l200,l:l.:l)~::_~:;.:_J.J~1?___,___ ___,______ ___ , . Carpenter - Finish, Trim/Cabinet Coverage Dwelling Cleaning Technician Coverage 119.26 Floor Cleaning Technician Coverage Dwelling Cleaning' Remediation- Technician'----- -- Coverage Dwelling Drywall InstallerIFinisher Coverage Dwelling Flooring Installer Coverage Dwelling @ 100.00 % = 119.26 56.62 @ 100.00 % = 56.62 70.28 @ 100.00 % = 70.28 .._..~..~-_.._---_..~ - .-.-....-..-.-.......---... -. -,'--"'. --78;96--' @ 100.00 % = 78.96 249.92 @ 100.00 % = 249.92 170.50 @ 100.00%= 170.50 745.54 14,699.22 Dwelling Total Adjustments for Base Service Charges: Line Item Totals: 2008-02-25-1819 2008-02-25-1819 3/14/2008 page:. Serti{ceMASTER Deutsche Contracting, Inc. . 1be_';;::=,r::::..~. 450 Armstrong Road Northfield, MN 55057 Lie # 20354617 Grand Total Areas: 4,359.11 SF Walls 2,814.84 SF Ceiling 7,173.95 SF Walls and Ceiling 2,863.16 SF Floor 318.13 SY Flooring 537.99 LF Floor Perimeter 0.00 SF Long Wall 0.00 SF Short Wall 534.98 LF Ceil. Perimeter 2,863.16 Floor Area 2,958.81 Total Area 4,042.59 Interior Wall Area 2,571.33 Exterior Wall Area 321.42 Exterior Perimeter of Walls 0.00 Surface Area 0.00 Number of Squares 0.00 Total Perimeter Length 0.00 Total Ridge Length 0.00 Total Hip Length Coverage . ---- --------nweltmg---'----.. . Other Structures Contents Amount % Grand Total % ----------,- .,- '--- ----- -'--13;953:OS---'- 1 OO.OO%'-----'--'---18;09R53-------roO:OW/o---' -, - - 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% _. _." _..,......___.__. 0" 13,953.68 100.00% .._.-".- Total 18,098.53 100.00% "., .~ _ ___ ... ___ . _. _..' _ .". .._..__. ~__.- _ ,_~ . ...... .. _____~_._..___...._. '. .". ... _ .~ .0 _ _ ..___ _ .., ,......_ _ ~. .,_.n_~"_"~*'__',_ ..._.. _ -__" .." .".."----.". - -- ,.. --..-.-----.-- -.-. _...~..- ..,. -- . 2008-02-25-1819 3/14/2008 Page: 9 SeroiceMASTBR Deutsche Contracting, Inc. Clean ""-~=.....- . 450 Armstrong Road Northfield, MN 55057 Lic # 20354617 Replacement Cost Value Net Claim 2008-02-25-1819 . Summary for Dwelling 5,890.56 @ @ 15,082.11 15,082.11 Line Item Total Total Adjustments for Base Service Charges Mati Sales Tax Reimb @ 6.500% x Subtotal Overhead Profit 10.0% x 10.0% x N/A 13,953.68 745.54 382.89 15,082.11 1,508.21 1,508.21 $18,098.53 $18,098.53 3/14/2008 -_._--','--~------.~-~ Page: 1_ ~ ~ @) . FULL ACCESS REI\!10DELING p p SAL March 7, 2008 City of Farmington Attn: Tina Hansmeier 325 Oak St. Farmington, MN 55024 (651) 463-1821/Work (612) 968-0067/Cell thansmeier@ci.farmington.mn.us . Scope of Project Remodel commercial space basement, walls, ceiling and floors at property located at 305 3rd Street in Farmington to include: . Install carpet, wall to wall, without removing shelving units in main area. Carpet should be installed around the counter unit. Cost of Labor & Materials: $10,800.00 . Remove shelving in front storage room Cost of Labor: $250.00 . Install three doors (bathroom, sink area and storage room on north side of building) Cost of Labor & Materials: $895.00 . Modify ductwork on south wall to be vented on bottom Cost of Labor and Materials: $496.00 . Remove metal parts along bottom of south wall and fill with sheetrock, add filler to holes/crevices with mud/plaster Cost of Labor & Materials: $495.00 . . Extend drop ceiling to south wall (the ceiling needs to contain three lights) Cost of Labor & Materials: $2,275.00 2917 133rd St. W. Shakopee,11N 55379 Fax: 952-400-1142 Phone: 9,52-746-3000 . Remove door and wall portion above door to nowhere Cost of Labor & Materials: $267.00 . . Mud, tape and sheetrock wall that was installed after coolers were removed Cost of Labor & Materials: $1,195.00 . Sheetrock, tape, mud and sand back inside wall of storage area in front of building approximately 9' high x 11' wide (secure electrical to switch to stud before sheetrocking) Cost of Labor & Materials: $1,696.00 . Clean interior upstairs and basement to include the following: o Some general dusting of wall for cob webs o Window and entry door (in and out) o Shelving on main level o Scrub and sanitize basement walls and floor (includes steps) o Clean bathroom Cost of Labor & Materials: $490.00 . Three lights in drop ceiling as listed above Cost of Labor and Materials: $460.00 . Check fuse boxes to bring up to code, block open circuits and create key code for what each switch if for Cost of Labor & Materials: $995.00 . . Redo the conduit in front storage room for electrical switch Cost of Labor and Materials: $95.00 . Move existing Exit sign (currently side mounted to wall, needs to be visible from all directions) Cost of Labor & Materials: $75.00 . Replace lights in front office and storage rooms Cost of Labor & Materials: $180.00 . Upgrade four 2-pronged outlets to 3-pronged commercial outlets Cost of Labor & Materials: $264.00 . Dumpster (40 cubic yards) Cost of Dumpster: $438.00 Total Cost of Labor & Materials: $21,366.00 Ken Bolduc Vice President . 2917 133rd St. W. Shakopee, MN 55379 Fax: 952-400-1142 Phone: 952-746-3000 . . . 0) EDA/CONTRACTOR WORK AGREEMENT This Agreement is made this 18th day of March, 2008, by and between the FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, ("EDA") and ALWAYS-HANDY HANDYMAN SERVICES, KEITH KRISTIANSEN (the "Contractor"). In consideration of the mutual covenants and promises contained in this Agreement, the EDA and the Contractor agrees as follows: 1. General Conditions. Contractor shall perform the work described by this Agreement and Specifications as provided by Exhibit "A" attached hereto (the "Work") and, any written Change Order agreements executed by both parties. 2. Work to be Completed. As described by Exhibit "A" attached hereto, Contractor to provide all labor and materials necessary for the Work to be completed at property located at 305, Third Street, Farmington, Minnesota 55024. 3. Commencement and Completion of Work. The Work shall commence on March 19. 2008, and be satisfactorily completed on or before April 7th. 2008. In the event the Work is not commenced within ten (10) days of the date specified, the EDA may dismiss the Contractor without any compensation whatsoever and appoint a substitute contractor. If the Contractor is unable to commence the work by the specified date, it must promptly notify the EDA in writing. 4. Payment. The Work as set forth in Exhibit "A" and accepted by the EDA, including all labor, materials, and equipment needed to accomplish the same, shall be completed by the Contractor for the sum of Twelve Thousand One Hundred Twelve and no/IOO ($12,112.00) Dollars (the "Contract Price") to be paid to the Contractor in two installments as follows: a. One-half of the Contract Price upon commencement of the Work and b. The remainder of the Contract Price within 30 days following completion of the Work to the satisfaction of the EDA. The Contractor agrees to furnish the EDA with all Mechanics Lien Waivers deemed necessary by the EDA, prior to full payment of the Contract Price. The Contract Price shall constitute the sole compensation payable to the Contractor for completion of the Work. 5. Stora2:e and Protection. Contractor shall be responsible for the storage and protection of all equipment and materials to be supplied under the terms of this Agreement until work is complete and the EDA has been provided a complete installation. 6. Clean-Up. Contractor shall maintain an orderly and clean work site, and daily remove and properly dispose of all waste, and debris resulting from performance under this Agreement. 7. Cooperation. Contractor must schedule work, coordinate and cooperate with all other contractor's work, and abide by the EDA's schedule for completion of work. 8. Permits and Licenses. The Contractor shall secure all permits and licenses necessary to the completion of the Work and shall comply with all federal, state, and local laws, ordinances and regulations in the performance of the Work. 9. Warranty. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the EDA shall immediately replace, without cost to the EDA, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 10. Chanf!e Orders. In the event of changes in the scope of work as described by this Agreement, written Change Orders must be executed by both parties. The "Contract Price" shall be increased or decreased in the amount agreed upon by the Change Orders. Both parties hereby agree that the Contract Price shall neither be increased nor decreased, nor shall the Contractor be entitled to an increase in the "Contract Price" for work not agreed upon in writing by both parties. 11. Waiver of Liabilitv. The Contractor understands and agrees that the Work is undertaken at the sole risk of the Contractor. The Contractor does expressly forever release the EDA from any claims, demands, injuries, damage actions or causes of action whatsoever, arising out of or connected with the Work. 12. Indemnification. Any and all claims that arise or may arise against the Contractor, its agents, subcontractors or employees, as a consequence of any act or omission on the part of the Contractor while engaged in the performance of the Work shall in no way be the obligation or responsibility of the EDA. The Contractor shall indemnify, hold harmless and defend the EDA, its commissioners, officers, and employees, against any and all liability, loss, cost, damages, expenses, claims or actions, including attorneys fees which the EDA, its commissioners, officers, or employees may hereinafter incur or be required to pay, on account of injury or death of any person(s) or damage to any property arising out of or by any reason of any act or omission of the Contractor, its agents, servants or employees in the execution, performance or failure to adequately perform its obligations under this Agreement, whatever the cause of such injury or damage. 13. Insurance. The Contractor agrees that in order to protect itself and the EDA under the indemnity provisions set forth above, it will at all times during the term of this Agreement, keep in force, at a minimum, policies of insurance as indicated herein. The Contractor shall not commence work until a Certificate of Insurance covering all of the insurance required by this paragraph is approved and a written Notice to Proceed is issued by an authorized representative of the EDA. The following insurance policies must be certified to the EDA for approval: 137430 a. The Contractor shall purchase and maintain a commercial general liability insurance policy (CGL) to insure its operations. The CGL policy shall be in the amount of at least One Million and No/lOOths ($1,000,000.00) Dollars in combined bodily injury and property coverage. 2 . . . . . . b. The Contractor shall purchase and maintain an automobile policy which provides coverages for all owned, non-owned and rented or hired automobiles. The Automobile Policy shall be in the amount of at least One Million and Noll OOths ($1,000,000.00) Dollars combined single limit coverage. c: The Contractor shall purchase and maintain Workers' Compensation insurance in accordance with Chapter 176 ofthe Minnesota Statutes. The EDA shall be named as an "additional insured" party on both the Contractor's CGL and automobile insurance policies. The EDA shall receive at least thirty (30) days writt,en notice of cancellation, non-renewal, or any material changes of the insurance specified above. 14. Prompt Payment to Subcontractors. Pursuant to Minnesota Statute 471.25, Subdivision 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor's receipt of payment from the EDA for undisputed services provided by the subcontractor. The Contractor must pay interest of one and one-half percent (1 ~ %) per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. 15. Addresses and Notices. Any notice permitted or required to be given under this Agreement shall be deemed to have been given by certified mail, postage prepaid, addressed as follows: a. EDA Name and Address: Farmington Economic Development Authority Attention: Tina Hansmeier 325 Oak Street Farmington, Minnesota 55024 Phone: b. Contractor Name and Address: Always-Handy Handyman Services Keith Kristiansen 11 07 Walnut Street Farmington, MN 55024 Phone: (651) 207-9579 Either party may change the address by giving written notice to the other party. 16. Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Minnesota. 17. Data PracticesIRecords. A. All data created, collected, received, maintained, or disseminated for any purpose in the course of this Agreement is governed by the Minnesota Government Data 137430 3 Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted . to implement the act, as well as federal regulations on data privacy. B. All books, records, documents, and accounting procedures and practices of the Contractor and its subcontractors, if any, relative to this Agreement are subject to examination by the City. 18. Entire A!!reement. This Agreement constitutes the entire agreement between the EDA and the Contractor with respect to the matters addressed herein. 19. Amendment. This Agreement may be modified or amended only with the written approval of the EDA and the Contractor. 20. Construction. In the event that anyone or more of the provisions of this Agreement, or any application thereof, shall be found to be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions or any application thereof shall not in any way be affected or impaired thereby. 21. Assi!!nment. This Agreement shall be binding upon and in order to the benefit of the parties, their legal representatives, heirs, successors and assigns. No assignment or attempted assignment of this Agreement or any rights hereunder shall be effective unless the written consent of the other party is first obtained. . 22. Authority. Each of the undersigned parties warrant it has the full authority to execute this Agreement, and each individual signing this Agreement on behalf of a corporation hereby warrants that he or she has full authority to sign on behalf of the corporation that he or she represents and to bind such corporations thereby. 23. Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or any other covenant, agreement, term or condition, nor does it imply that such covenant, agreement, term or condition may be waived again. IN WITNESS WHEREOF, the parties have set their hands this , 2008. day of FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By Its: President ,/ - ,\ ; A . ",i ..- \ .' /'",/,--~ /;,l',-... I'::/~/~,,~';'//u~~~-~ ,. -',0..' "._ " _ ,.t- '-.... Its: ExeCutive Director- . And:" 137430 4 . . . 137430 Dated: CONTRACTOR By?je7 Its ~,,~ Dated: .5 - / 'i -e? 7 5 EXHIBIT "A" . A. Schedule of work to be completed bv Contractor includes: 137430 1. Obtaining all necessary permits from the City of Farmington 2. See Attached . . 6 Always-Handy Handyman Services Keith Kristiansen .107 Walnut St Farmington, MN 55024 License # 20595026 (( . t:.XV1 { bi +- A II H2E V I ~ ED 1t11 Bill To City of Farmington Old Liquor Store 325 Oak Street Farmington, MN 55024 P.O. Number Description 7 Labor for Removal of Old Carpet and fIXing Middle of the Floor where old tile meets old carpet (Unforeseen problems with underlayment will need to be addressed for abor and material once carpet has been emoved) 7 Carpet Cost 7 Carpet Installation 7 ModifY Duct work on South Wall 7 Remove Metal Parts along South Wall and Fill with Mud & Plaster 7 Extend Drop Ceiling to South Wall 7 Remove wall and Door to no where 7 Hang Drywall and Tape and Mud Both Sides 7 Removal of shelves in front room 7 Cleaning of Interior upstairs and Basement 7 Electrical Bid From Cities Electric 7 Install 3 Doors & Hardware 4 Dumpster Bid does not include unforeseen problems . Phone # 651-207-9579 Terms Due Date Due on receipt 3/3/200& Quantity/Hrs Page 1 ESTIMA TE Estimate # I I Date 3/3/2008 125 Ship To Rep Customer # Project Price/Rate Tax Amount 1,646.00 1,646.00 2,145.00 895.00 183.00 360.00 2,145.00 895.00 183.00 360.00 1,584.00 324.00 373.00 1,584.00 324.00 373.00 240.00 676.00 2,735.00 576.00 375.00 240.00 676.00 2,735.00 576.00 375.00 Total Payments/Credits Balance Due Always-Handy Handyman Services Keith Kristiansen 1107 Walnut St Farmington, MN 55024 License # 20595026 ESTIMATE Date Estimate # 3/3/2008 125 Bill To Ship To City of Farmington Old Liquor Store 325 Oak Street Farmington,MN 55024 I P.O. Number Terms Due Date Rep Customer # Project Due on receipt 3/3/2008 Description Quantity/Hrs Price/Rate Tax Amount 7 Door change due to height and one door 392.00 392.00 added Cost Increase 7 Material and Labor for removal of old 4,595.00 4,595.00 underlayment, leveling and installation of new underlayment 7 Removed duct work from behind old 78.00 78.00 shelving in storage are and fill in wall 7 Fill in holes in floor from the counter 25.00 25.00 Bid does not include unforeseen problems Total $17,202.00 Payments/Credits $0.00 Balance Due $17,202.00 Phone # . 651-207-9579 Page 2 CASTLE ROCK AGENCY INC J:::11111111:11111:11::liIII11111111111)11111111111111i:I:!)).~llil:ii .... .. ..PPPP.PPP..PP.PPPPPPPPPPPP.PPPPPPPPP.PPPP.p THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE DATE (MM/DD/YY) 03/18/08 :i):Acoifjj~ -PRODUCER . 27925 DANVILLE AV CASTLE ROCK MN 55010 COMPANY A TRI-STATE/CONTINENTAL WESTERN KEITH KRISTIANSEN DBA ALWAYS HANDY HANDYMAN SERVICES 1107 WALNUT ST FARMINGTON MN 55024 COMPANY B INSURED COMPANY C THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION DATE (MMlDD/YY) DATE (MMlDD/YY) LIMITS GENERAL LIABILITY X COMMERCiAl GENERAL LIABILITY CLAIMS MADE ~ OCCUR OWNER'S & CONTRACTOR'S PROT CNP 2589163 10/26/07 10/26/08 GENERAL AGGREGATE PRODUCTS - COMP/OP AGG PERSONAL & ADV INJURY EACH OCCURRENCE FIRE DAMAGE (Anyone lire) MED EXP (Anyone person) $2, 000, 000 $2 , 000 , 000 $1,000,000 $1,000,000 $ 250,000 $ 5,000 AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS .sCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS GARAGE LIABILITY ANY AUTO COMBINED SINGLE LIMIT $ BODILY INJURY $ (Per person) BODILY INJURY $ (Per accident) PROPERTY DAMAGE $ AUTO ONLY. EA ACCIDENT $ OTHER THAN AUTO ONLY: EACH ACCIDENT AGGREGATE EACH OCCURRENCE AGGREGATE EXCESS LIABJUTY UMBRELLA FORM OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND EMPLOYERS' LIABILITY THE PROPRIETOR! PARTNERSIEXECUTIVE OFFICERS ARE: OTHER INCL EXCL EL EACH ACCIDENT $ EL DISEASE-POLICY LIMIT $ EL DISEASE.EA EMPLOYEE $ DESCRIPTION OF OPERA TlONSlLOCATlONSNEHICLESlSPECIAL ITEMS j:~Sf.lt!FIO.AtliriHdtbe~; .. .::::.::::::::::::::::;::: ......:.,................,...:.;.:.:-:. '......:.:.;.:.:.,.............:.:.; .................................... ............:.:.:.::::.::::::::::::::::::::::.;... ;:;:::;:::::::::: .:.:.:.:"':jj;;~i"'~t::~;:::lI.:..,....;i;{:.:.:. ~~(~{~)!~M~,~f6~J~~;~rf)~ ".".=;.;.;:;:;.;::.;:;:;:.::=.:;:;"," .. ;.;.'.;.:-:.; ... ......::: ':::::::::::::::~:;:;~}:;:~{::::;::;:::::::::. FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY 325 OAK STREET FARMINGTON MN 55024 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL .lQ.... DAYS WRITTEN NOTICE TO THE CERTIRCATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY ~ ' .................................'............. ........................'............. A9Q~p,;:~~$.m:bl~t:))} ..... ........,............................................................. ....,.,.................................................,............. .......?........................................-...........'...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . >>p"."""'" . :.',:.:.:.:.:.:.:.:.:.:.:.:. .;...;.:.;.:.:..:;.;.;.;:;:;.;.;::.:.:...... PAGE 1 OF 2 FOR LIENHOLDER USE FAMILY CAR POLICY NON-ASSESSABLE POLICY ISSUED BY AMERICAN FAMILY MUTUAL INSURANCE COMPANY A MEMBER OF THE AMERICAN FAMILY INSURANCE GROUP MADISON, WI PLEASE READ YOUR POLICY 1618-0653-07 . POLICY NUMBER 16l8-0653-07-97-FPPA-MN LIENHOLDER - SEE BACK SIDE POLICYHOLDER/NAMED INSURED KRlSTIANSEN, KEIrn S & JENNIFER L 1107 WALNUT ST FARMINGTON, MN 55024-1723 EFFECTIVE FROM 03-18-2008 TO 06-05-2008 ACCT 010-935-328-39 VIN IFTPW14V17FB50635 2007 FORD Fl S VEHICLE SYMBOL 30 CLASS CITY IB COVERAGES AND LIMITS PROVIDED BODll.. Y INJURY LIABll..ITY $250,000 EACH PERSON $500,000 EACH OCCURRENCE PROPERTY DAMAGE LIABll..ITY $250,000 EACH OCCURRENCE TERRITORY 2 COMPREHENSIVE $500 DEDUCTIBLE COLLISION $500 DEDUCTIBLE UNINSURED MOTORISTS - BODll.. Y INJURY ONLY $250,000 EACH PERSON $500,000 EACH ACCIDENT ENDORSEMENT - SEE BELOW UNDERlNSURED MOTORISTS COVERAGE - BODILY INJURY ONLY $250,000 EACH PERSON $500,000 EACH ACCIDENT PERSONAL INJURY PROTECTION COVERAGE DESIGNATION A FULL GLASS BREAKAGE UNDER COMPREHENSIVE COVERAGE . MULTIPLE VEHICLE AND AIR BAG DISCOUNTS HA VB BEEN APPLIED AUTO AND HOME PREMIUM ADVANTAGE DISCOUNT HAS BEEN APPLIED ANTI THEFT DISCOUNT HAS BEEN APPLIED AUTO & LIFE DISCOUNT HAS BEEN APPLIED MN LAW: F AlLURE TO PROVIDE PROOF OF INS. AT THE REQUEST OF A LAW ENFORCE- MENT OFFICIAL OR W /IN 1 0 DAYS IS A MISDEMEANOR PUNISHABLE BY A FINE OF NOT LESS THAN $200 AND/OR TIME SERVED IN JAIL & REVOCATION OF DRIVING PRIVILEGES. Declarations effective on the date shown above. These declarations form a part of this policy and replace all other declarations which may have been issued previously for this policy. If this declarations is accompanied by a new policy. the policy replaces any which may have been issued before with the same policy number. '-\.., <'. AUTHORIZED ". ",<,(", .,Y.J;'/f,,I'-? REPRESENTATIVE " President AGENT 434-086 PHONE (651)322-7354 KELLEY BURNETT 15170 CIDPPENDALE AVE W STE 200 ROSEMOUNT,MN 55068-2770 ~'jF:~ (J - - Secretary USER 10 TYPE ENTRY DATE INCEPTION DATE KAR033 DE 03-18-2008 06-27-2007 . Form No. U1A1(b) Stock No. 05095 PAGE 2 OF 2 1618-0653-07 . L1ENHOLDER(S) HDT LEASING LLC PO BOX 105704 ATLANTA, GA 30348-5704 . AGREEMENT We agree with ~'ou, in return for ~'our premium payment to in:,'Ure ~'ou subject to all terms of this policy. We will insure ~'ou for coverages and the limits of liability as shown in the declarations of this policy. DEFINITIONS I. We, us and our mean the company providing tllls insurance. 2. You and ~'our mean tlle policyholder named in the declarations and spouse. if living in tlle same household. LOSS PAYABLE CLAUSE Loss or damage shall be paid to ~'ou and the lienholder shown in the declarations. The insurance covering the interest of tlle lienholder shall apply unless in\'alidated by the lienholder's fraudulent acts or omissions. We have the right however, to cancel this policy as shO\Y1l in the General Pro\'isions. Cancelation shall tenninate tIllS agreement ,,,ith respect to tlle lienholder's interest. When we canceL we will give tlle lienholder at least 10 days (30 days in Illinois) notice. When we pay the lienholder we are entitled. to the extent of the payment. to tlle lienholder's rights of reco\'ery. . CERTIFICATE OF LIABILITY INSURANCE A.~er:caj1 :=a.mL,' ;i:SLratl,:.;:: '::~;:I:'"1~IC!.r:'t' I', i\r:'.c.'ic~:r.1 Fi:iITlllvM~t:1;3.l jr.5U1'"a.~'::e Gr);::-l:..any i~ :::.O;e::.:lIUf~ t::.X I::: "K'< C'I::::J:e-d. &})O f\r-I'::rl(:tl,n P~~'.. i'la:::,I::::;;', 1/'/i:j,:::::,r5n 53783.,)(n)i h5:J~€::' 5 N:tT~ ~;-Id .4dirf.;;.:S- Ke',rh ~=-j.:1 ...'en:-~lrei ~;-isti~nse~ 1107 \tlJ1 cl! n:.~\ 81 Fan"i~;')'3:c'n. t~t,N 5-5C:2~ .';ger(s "J.:.nc~. .A.-=.jf':~~~ i)")j ~1'i1)(C' NJ:Tlt:';)~ I,Ag!. _:':s~. '<ene,.- 5:~rrl::~-: ::fJ2~,' 3;::;.735..1 . -: 5178 C:-JiPpl;l!"';da:_'C /J..'./c. ly'V' S!8 2'~.H:' =l(:~,=,T'!:;u:-t. Mt\ 55065-277,: :43L.'C8S.' Th:s certificate is iss,ued as a maller of information only and eonfcr-s nO rights upon tMe Certificate Holder. This certificate does net amend. extend or alter tho coverage afforded by the poffcies listed belew, rcoViF!AG~S ! TYPE 0;: INSURANCE ! 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I:: l!"';l!..':::c:t ir :0;='1 J::=~C~:'l'~ CERTIFICATE HOLDER'S NAME AND ADDRESS CANCElLA TlON o Sn:::J'::! ii1m d fi:F. abo,'<? ,"l1!;;..;:r;tS::lPc,liCies be> cancsle,; :::-siQ's ,r-s ex~~ra:i':n Ctl1n :r,orz~~. ::1.~ ,:,::rr:,:;E.rl'!t 'will ond:::.a.~~.t tCI mai}"~ 30 da'Y's) ',..ir:tten r::11:c:~ ~() th.;; ':::er;.tica~e Holder I:arr-e,j, c',ut tJdL're to r:laif 5U,:h n.:.ticQ s:"'IGid im::;e;s=: flU ':J:J.:,oal,or., o,r [Iab(jt'~l C$f arl't' ~:ind L:P::.n It:e cC\-npar"~f, ':,t5 ~gsr.t& (Ii r~p~G:!~e.ntati'..'05-. . 1'0 d~y~' J.'1!C"SS .j;ffcre-n1 ,..,1 Tn-~r'c"r qf e:tl.}'S Sh(rl"or,. j -h::i ,:,:ur~d.t:;s c:.:......siaq= Dr, :~H: date- ,:;-d !SS'"..~ .::;n'y - I ne ~.,t:"::1"voe; de!iicrI:t-3d p'~licr;s; :ir~ $l~bjec1 t~ can:eI13t:.r: .~r C.::':l~(\"rr,i:). v.t;:r. 17ieh Ii terns and by thcaws :1 :,.:/ G1rtl(,' c.f :::sue, i '~,1n;"~'~~'2C'U~"~!~~~~~-~~~~~~'::~_/ /' --. I . Farr1inQt(l,'~ EI::c'n:J~.nc DC.'JE.I:')~f''1e.i~~t Auth:.:.~ity ;::;5 Oak .~.:-eet F'arn'ngio.-" Mt,. !;,!YJ.:l4 U.201 Ed_ 5/00 Ce:ti"i':-a:e ,.. c,lce-r Ste.:K N~. C..s66-9 ~e'.' 7:::-2 . . . . ~ LEASE AGREEMENT THIS LEASE AGREEMENT ("Lease") is entered into and made as of this _day of April) 2008 by and between the FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota public body corporate and politic, ("Landlord"), and EXPRESSIVE EMBROIDERY, INC., a Minnesota corporation ("Tenant"). The parties mutually agree as follows: 1. LEASED PREMISES Subject to the terms and conditions of this Lease, Landlord leases to Tenant and Tenant rents from Landlord, the premises formerly known as the Farmington Liquor Store, comprising approximately 1,529 square feet of net rentable space (the "Rentable Area") in the building ("Building") located at 305 Third Street, Farmington, Minnesota, 55024, hereinafter referred to as the "Leased Premises." In addition to the Rentable Area, Tenants will have the use of the Building's lower level, which square footage is not included in the Base Rent calculation, as hereinafter described, but which for all other terms of this Lease is included in the Leased Premises. Descriptions of the Rentable Area and the Leased Premises are attached hereto as Exhibits "A" and "B", respectively. 2. TERM The term of this Lease (the "Term") shall be for a period of one year, commencing April 1, 2008 (the "Commencement Date"), and ending March 31,2011 (the "Expiration Date") subject to adjustment as provided in Paragraph 6 hereof, unless this Lease shall be sooner terminated as hereinafter provided. 3. RENT (a) For purposes of this Lease, the following definitions shall apply: (i) "Taxes" shall mean all real estate taxes, installments of special assessments, sewer charges transit taxes, taxes based upon receipt of rent and any other federal, state or local governmental charge, general, special, ordinary or extraordinary (excluding income, franchise, or other taxes based upon Landlord's income or profit, unless imposed in lieu of real estate taxes) which shall now or hereafter be levied, assessed or imposed against the Leased Premises and/or the Tenant and shall apply to said obligations at such time in which said obligation are accrued or levied. (ii) "Operating Expenses" shall mean all of Tenant's direct costs and expenses of operation and maintenance of the Leased Premises and the surrounding walks, driveways, parking lots and landscaped areas (within the area described in Exhibit "B") as determined by Landlord in accordance with generally accepted accounting principles or other recognized accounting practices, consistently applied, including by way of illustration and not limitation: insurance premiums; personal property taxes on personal property used on the Leased Premises; water, electrical and other utility charges including (but not limited to) the separately billed electrical and other charges described in Paragraph 8 hereof; the charges of any independent contractor who, under a contract with Tenant, or its representatives, does any of the work of operating, maintaining or repairing of the Leased Premises, service and other charges incurred in the operation and maintenance of the heating, ventilation and air 137501.04 conditioning system; cleaning services; tools and supplies; landscape maintenance costs; building security services; license and permit fees; building management fees; and in general all other costs and expenses which would, under generally accepted accounting principles, be regarded as operating and maintenance costs and expenses. . (b) Base Rent. During the first year of the Lease, Tenant shall pay to Landlord during the Lease Term rent at the annual rate of Eight Dollars ($8.00) per rentable square foot per annum for a total of Twelve Thousand Two Hundred Thirty-Two and No/lOO Dollars ($12,232.00) per annum, hereinafter referred to as the "Base Rent." The Base Rent is payable in equal monthly installments of One Thousand Nineteen and No/lOO Dollars ($ 1,019.00) in advance, on or before the first day of each and every month throughout the Term; provided, however, that if the Commencement Date shall be a day other than the first day of a calendar month or the Expiration Date shall be a day other than the last day of a calendar month, the Base Rent installment for such first or last fractional month shall be pro- rated accordingly. (c) Adiustments to Base Rent. For each year of the Lease thereafter, the new annual base rent shall be the previous annual base rent of the previous year plus an amount equal to the increase in the Consumer Price Index ("CPr') as provided below. The Base Rent shall never be decreased. The CPI shall mean the "Consumer Price Index for All Urban Consumers, All Cities, All Items (1984 = 100)" as published by the United States Department of Labor, Bureau of Labor Statistics or, if such index shall be discontinued, the successor index thereto or, if there shall be no successor index, such comparable index as shall be mutually agreed upon by the parties. To determine the annual rental increase to be paid by Tenant, the annual rental for the previous year shall be multiplied by a . percentage figure, computed from a fraction, the numerator of which shall be the CPI for the third quarter of the preceding year and the denominator of which shall be the CPI for the corresponding quarter of one year earlier. Such fraction shall be converted to a percentage equivalent. The resulting percentage figure shall be multiplied by the previous years Rent. Landlord shall be responsible for communicating all Rent increases to Tenant. (d) Tenant's obligation to pay the Base Rent is a separate and independent covenant and obligation. Tenant shall pay all Base Rent and other sums of money as shall become due from and payable by Tenant to Landlord under this Lease at the times and in the manner provided herein, without abatement and without notice, demand, set-off or counterclaim. Throughout the term of this Lease Tenant shall pay the following: (c) Ooerating Expenses. Tenant shall pay all Operating Expenses when due. (d) Service Charge. Tenant's failure to make any monetary payment required of Tenant hereunder within five (5) days of the due date therefore shall result in the imposition of a service charge for such late payment in the amount often percent (10%) of the amount due. In addition, any sum not paid within thirty (30) days of the due date therefore shall bear interest at a rate equal to the greater of eighteen percent (18%) or the prime rate plus two percent (2%) per annum (or such lesser percentage as may be the maximum amount permitted by law) from the date due until paid. (a) Tenant has deposited with Landlord the sum of One Thousand and No/lOO Dollars ($ 1000.00) as security ("Security Deposit") for the full and faithful performance of every provision of . 4. SECURITY DEPOSIT 2 . . . this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease, including, without limitation, the provisions relating to the payment of Base Rent, Operating Expenses, repair of damage to the Leased Premises and/or cleaning or restoring the Leased Premises upon termination of this Lease, Landlord may use, apply or retain all or any part of this security deposit for the payment of any Base Rent, Operating Expenses, or other sum in default and any amounts which Landlord may spend or become obligated to spend by reason of Tenant's default to the full extent permitted by law. If any portion of said deposit is so used, applied or retained, Tenant shall, within ten (10) days after written demand therefore, deposit cash with Landlord in an amount sufficient to restore security deposit to an amount equal to the then applicable Base Rent, plus the monthly amount of estimated Operating Expenses and other charges payable hereunder by Tenant multiplied by the number of months worth of Base Rent represented by the initial security deposit and Tenant's failure to do so shall be a material default and breach of this Lease. Landlord shall not be required to keep any security deposit separate from its general funds, and Tenant shall not be entitled to interest on any such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant or to the last assignee of Tenant's interest hereunder at the expiration of the Term. (b) In the event of a sale or any other transfer of the Leased Premises, Landlord shall have the right to transfer the Security Deposit to its purchaser and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to such purchaser for the return of such deposit. In the event of an assignment of this Lease, the Security Deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility for the return of such deposit to the assignor. 5. LEASEHOLD IMPROVEMENTS Tenant shall be solely and exclusively responsible for the cost of any leasehold improvements that Tenant may choose to make. No improvements shall be made by Tenant or Tenant's agents or contractors without Landlord's written consent. Tenant shall have no right of reimbursement from Landlord for any improvements constructed by or caused to be constructed by Tenant. Tenant, or his contractors or agents, shall complete construction of any and all improvements in a good and workmanlike manner, utilizing new and first grade material, in conformity with all applicable federal, state, and local laws, ordinances, rules, regulations, building codes, fire regulations, and applicable insurance requirements. 6. DELIVERY OF POSSESSION; ADJUSTMENT OF TERM (a) Early Delivery of Possession. If the Leased Premises are ready for occupancy prior to the Commencement Date, Landlord may, in Landlord's sole discretion and at Tenant's request, deliver possession of the Leased Premises to Tenant at such time, and Tenant may then occupy the Leased Premises as a tenant and the Term shall be revised to reflect the Commencement Date based on the Date of Possession and the Expiration Date shall be moved forward for the same number of days the Commencement Date was moved forward. (b) Late Delivery of Possession. If Landlord determines that it will be unable to have the Leased Premises ready for occupancy by the Commencement Date for delays caused by Landlord or Landlord's contractor, Landlord shall give Tenant written notice to that effect, and thereafter the Commencement Date shall be postponed to the earlier of (i) the date upon which Landlord tenders possession of the Leased Premises or (ii) the thirtieth (30th) day after Landlord has notified Tenant in writing of the date the Leased Premises will be ready for occupancy. In the event of such 3 postponement, the Term of this Lease shall remain the same, but the Expiration Date shall be extended for the same number of days the Commencement Date was postponed; Tenant's obligation to pay rent shall be postponed for a like number of days, and Landlord shall not be liable to Tenant for any loss or damage resulting from Landlord's delay in delivering possession of the Leased Premises to Tenant. Should the completion date be delayed by cause of Tenant, then the Commencement Date shall remain as if there were no delay in completion. . (c) Tenant's Acceptance of the Leased Premises. Upon delivery of possession of the Leased Premises to Tenant as hereinbefore provided, Tenant shall (but only upon Landlord's request) provide Landlord with an Estoppel Letter, in the form attached to this Lease, made a part hereof and marked Exhibit "C", signed by an officer or principal of Tenant acknowledging (i) the original or revised Commencement Date and Expiration Date of this Lease, and (ii) that Tenant has accepted the Leased Premises for occupancy and that the condition of the Leased Premises and that the Building was at the time satisfactory and in conformity with the provisions of this Lease in all respects, except for any defects as to which Tenant shall give written notice to Landlord within thirty (30) days after Landlord has delivered possession of the Leased Premises. Landlord shall as promptly thereafter as is reasonably possible correct all such defects. Tenant's Estoppel Letter, fully executed, shall be attached to and made a part of this executed Lease. 7. USE OF THE LEASED PREMISES (a) Specific Use / "As is" Basis. The Leased Premises shall be occupied and used exclusively for general office, retail purposes, and related services incidental thereto, and shall not be used for any other purpose. Except for the work to be performed by Landlord as identified on Exhibit "E", Tenant hereby accepts the Leased Premises on an "as is" "where is" basis without any . representations or warranties as to its fitness for a particular purpose. (b) Existing Shelving. Tenant shall have use of the shelving currently in place within the Leased Premises. However Tenant and Landlord agree that the conveyor track unit currently existing in the Leased Premises, are not included in this Lease and may at any time be removed by Landlord. Landlord reserves the right, at any time during regular business hours, and without incurring any liability to Tenant therefore, to enter the Leased Premises and remove such conveyor track. (c) Covenants Regarding Use. In connection with its use of the Leased Premises, Tenant agrees to do the following: (i) Tenant shall use the Leased Premises and conduct its business thereon in a safe, careful, reputable and lawful manner; shall keep and maintain the Leased Premises in as good a condition as they were when Tenant first took possession thereof and shall make all necessary repairs to the Leased Premises other than those which Landlord is obligated to make as provided elsewhere herein. (ii) Tenant shall not commit, nor allow to be committed, in, on or about the Leased Premises any act of waste, including any act which might deface, damage or destroy the Leased Premises, Building, or any part thereof; use or permit to be used on the Leased Premises any hazardous substance, equipment or other thing which might cause injury to person or property or increase the danger of fire or other casualty in, on or about the Leased Premises; permit any . objectionable or offensive noise or odors to be emitted from the Leased Premises; or do anything, or permit anything to be done, which would, in Landlord's opinion, disturb or tend to disturb the owners or tenants of any adjacent buildings. 4 . . . (iii) Tenant shall not overload the floors, ceilings, or walls of the Leased Premises beyond their designed weight-bearing capacity. Landlord reserves the right to direct the positioning of all heavy equipment, furniture and fixtures which Tenant desires to place in the Leased Premises so as to distribute properly the weight thereof, and to require the removal of any equipment or furniture which exceeds the weight limit specified herein. (iv) Tenant shall not use the Leased Premises, nor allow the Leased Premises to he used, for any purpose or in any manner which would, in Landlord's opinion, invalidate any policy of insurance now or hereafter carried on the Leased Premises or increase the rate of premiums payable on any such insurance policy. Should Tenant fail to comply with this covenant, Landlord may, at its option, require Tenant to stop engaging in such activity or to reimburse Landlord for any increase in premiums charged during the term of this Lease on the insurance carried by Landlord on the Leased Premises and attributable to the use being made of the Leased Premises by Tenant. (c) Compliance with Laws. Tenant shall not use or permit the use of any part of the Leased Premises for any purpose prohibited by law. Tenant shall, at Tenant's sole expense, comply with all laws, statutes, ordinances, rules, regulations and orders of any federal, state, municipal or other government or agency thereof having jurisdiction over and relating to the use, condition and occupancy of the Leased Premises, except that Tenant shall not be responsible for or required to make structural repairs to the Building or the Leased Premises unless, in the case of the latter, they are occasioned by its own use of the Leased Premises or negligence. (d) Compliance with Zoning. Tenant hereby acknowledges that Tenant is aware of the character of its operation in the Leased Premises and that applicable zoning ordinances and regulations are of public record. Tenant shall have sole responsibility for its compliance therewith, and Tenant's inability so to comply shall not be cause for Tenant to terminate this Lease. 8. UTILITIES AND OTHER BUILDING SERVICES (a) Tenant shall be solely and exclusively responsible for making arrangements for, and solely and exclusively responsible for, the cost of the following utilities and any other building services necessary for Tenant's comfortable use and occupancy of the Leased Premises for general office and/or retail use or as may be required by law or directed by governmental authority: (i) Heating, ventilation and air conditioning; (ii) Electricity for lighting and operating business machines and equipment in the Leased Premises and the common areas and facilities of the Building; (iii) Gas service( s); (iv) Water for lavatory and drinking purposes; (v) Cleaning and janitorial service; (vi) Replacement of all lamps, bulbs, starters and ballasts used on the Leased Premises; 5 (vii) Cleaning, care and maintenance of the Leased Premises and the walks, driveways, parking lots and landscaped areas adjacent to the Leased Premises, including the . removal ofmbbish and snow; and (viii) Repair and maintenance of the Leased Premises and certain systems within the Leased Premises to the extent specified in Paragraph lO(a) hereof. (b) Additional Services. If Tenant requests any other utilities or building services in addition to those identified above or any of the above utilities or building services in frequency, scope, quality or quantities greater than that which Landlord determines is normally requir~ then Landlord shall use reasonable efforts to assist Tenant in obtaining such additional utilities or building services. In the event Landlord is able to and does furnish such additional utilities or building services, the cost thereof shall be borne by Tenant, who shall reimburse Landlord monthly for the same as provided in Paragraph 8( d) hereof. Tenant shall not install nor connect any electrical machinery or equipment other than the business machines and equipment typically used for the use authorized under this Lease by tenants in buildings comparable to the Leased Premises (a personal computer being an example of such typical electrical equipment) nor any water-cooled machinery or equipment without Landlord's prior written consent. If Landlord determines that the machinery or equipment to be so installed or connected exceeds the designed load capacity of the Leased Premises' electrical system or is in any way incompatible therewith, then Landlord shall have the right, as a condition to granting its consent, to make such modifications to any utility system or other parts of the Leased Premises, or to require Tenant to make such modifications to the equipment to be installed or connected, as Landlord considers to be reasonably necessary before such equipment may be so installed or connected. The . cost of.any such modifications shall be borne by Tenant, who shall reimburse Landlord for the same (or any portion thereof paid by Landlord) as provided in Paragraph 8( d) hereof. (c) Interruption of Services. Tenant understands, acknowledges and agrees that anyone or more of the utilities or other building services identified above may be interrupted by reason of accident, emergency or other causes beyond Landlord's control, or may be discontinued or diminished temporarily by Landlord or other persons until certain repairs, alterations or improvements can be made; that Landlord does not represent or warrant the uninterrupted availability of such utilities or building services; and that any such interruption shall not be deemed an eviction or disturbance of Tenant's right to possession, occupancy and use of the Leased Premises or any part thereof, or render Landlord liable to Tenant in damages by abatement of rent or otherwise, or relieve Tenant from the obligation to perform its covenants under this Lease. (d) Payment for Utilities and Building Services. The cost of additional utilities and other building services furnished by Landlord at the request of Tenant or as a result of Tenant's activities as provided in Paragraph 8(b) hereof shall be borne by Tenant, who shall be separately and/or additionally billed therefore and who shall reimburse and pay Landlord monthly for the same, at the same time the next monthly installment of Base Rent is due. Tenant agrees to give reasonable advance notice, in writing, to Landlord of its request for additional services. (e) EnerllV Conservation. Notwithstanding anything to contrary in this Paragraph 8 or elsewhere in this Lease, Landlord shall have the right to institute such policies, programs and measures as may be necessary or desirable, in Landlord's discretion, for the conservation and/or preservation of energy related services, or as may be required to comply with any applicable codes, rules and regulations, whether mandatory or voluntary. . 6 . . . 9. SIGNS Tenant shall not inscribe, paint, affix or display any signs, advertisements or notices on the Leased Premises or in the Leased Premises and visible from outside the Leased Premises, except for such signage, advertisements or notices as Landlord at Landlord's discretion specifically permits. 10. REPAIRS, MAINTENANCE, ALTERATIONS, IMPROVEMENTS AND FIXTURES. (a) Repairs and Maintenance. Tenant acknowledges that, except as explicitly provided under this Lease, Landlord makes no representations as to any current or future repairs of the Leased Premises, that no promises to alter, remodel or improve the Leased Premises have been made by Landlord, and that Tenant agrees to make any repairs necessary for Tenant's use of the Leased Premises. Tenant further acknowledges that Tenant has had ample opportunity to inspect the Leased Premises and accepts the Leased Premises "as is." Landlord shall at its expense keep in good order, safe condition and repair, heating, ventilation and air condition systems, the exterior walls (including painting), roof, floors (other than surface materials), foundation, pavement and interior support columns of the Leased Premises. Except as otherwise provided herein, Tenant shall be solely responsible for the maintenance and repair and good working order and condition of the Leased Premises. Tenant shall maintain, at its own expense, the Leased Premises and the equipment and fixtures on the Leased Premises in good working order and condition during the term of this Lease. Tenant shall, at Tenant's expense, keep and maintain the Leased Premises in good order, condition and repair at all times during the Term, and Tenant shall promptly repair all damage to the Leased Premises and replace or repair all damaged or broken fixtures, equipment and appurtenances with materials equal in quality and class to the original materials, under the supervision and subject to the approval of Landlord, and within any reasonable period of time specified by Landlord. If Tenant fails to do so, Landlord may, but need not make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including Landlord's Costs, forthwith upon being billed for same. As used in this Lease, the term "Landlord's Costs" shall mean fifteen percent (15%) of any costs or expenses paid by Landlord, in order to reimburse Landlord for all overhead, general conditions, fees and other costs and expenses arising from Landlord's actions or involvement. (b) Alteration or Improvements. Tenant shall not make, nor permit to be made, alterations or improvements to the Leased Premises unless Tenant obtains the prior written consent of Landlord thereto. If Landlord permits Tenant to make any such alterations or improvements, Tenant shall make the same in accordance with all applicable laws and building codes, in a good and workmanlike manner and in quality equal to or better than the original construction of the Leased Premises and shall comply with such requirements as Landlord considers necessary or desirable, including without limitation the provision by Tenant to Landlord with security for the payment of all costs to be incurred in connection with such work, requirements as to the manner in which and the times at which such work shall be done and the contractor or subcontractors to be selected to perform such work and the posting and re-posting of notices of Landlord's non-responsibility for mechanics' liens. Tenant shall promptly pay all costs attributable to such alterations and improvements and shall indemnify, defend and hold harmless Landlord from and against any mechanic's liens or other liens or claims filed or asserted as a result thereof and against any costs or expenses which may be incurred as a result of building code violations attributable to such work. Tenant shall promptly repair any damage to the Leased Premises caused by any such alterations or improvements. Any alterations or improvements to the Leased Premises, except movable office furniture and equipment and trade fixtures, shall at Landlord's election, either (i) become a part of the realty and the property of Landlord, and shall not be removed by Tenant or (ii) be removed by Tenant upon the expiration or sooner termination hereof and 7 any damage caused thereby repaired at Tenant's cost and expense. In the event Tenant so fails to remove same, Landlord may have same removed and the Leased Premises so repaired at Tenant's expense. At Landlord's election, Landlord and Landlord's architect, engineers or contractors shall have the right to supervise all construction operations within the Leased Premises, and Tenant shall promptly pay Landlord the cost of such supervision. (c) Trade Fixtures. Any trade fixtures installed on the Leased Premises by Tenant at its own expense, including but not limited to movable partitions, counters, shelving, showcases, mirrors and the like may, and at the request of Landlord, shall be removed on the Expiration Date or upon earlier termination of this Lease provided that Tenant is not then in default. Tenant agrees that Tenant will bear the cost of such removal, and further that Tenant will repair at its own expense any and all damage to the Leased Premises resulting from the original installation of and subsequent removal of such trade fixtures. If Tenant fails so to remove any and all such trade fixtures from the Leased Premises on the Expiration Date or upon earlier termination of this Lease, all such trade fixtures shall become the property of Landlord unless Landlord elects to require their removal, in which case Tenant shall promptly remove same and restore the Leased Premises to their prior condition. In the event Tenant so fails to remove same, Landlord may have same removed and the Leased Premises repaired to their prior condition, all at Tenant's expense. . (d) Wiring and Cabling. Any wiring or cabling installed by Tenant in the Leased Premises or in shafts or ducts shall, at Landlord's request, be removed by Tenant at Tenant's expense on or before the Expiration Date or earlier termination of this Lease. If Tenant fails to remove any such wiring or cabling, Landlord may have the same removed at Tenant's expense. ( e) Storefront. If the Leased Premises includes storefront glass entrances or walls at or . near public spaces, Tenant must have specific approval by Landlord of all colors and materials for floor covering, wall covering, furniture, and artwork prior to installation. (f) Reserved Rights. Landlord reserves the right to decorate and to make, at any time or times, at its own expense, repairs, alterations, additions and improvements, structural or otherwise, in or to the Leased Premises and the Building, and to perform any acts related to the safety, protection or preservation thereof, and during such operations to take into and through the Leased Premises or any part of the Building all material and equipment required and to close or temporarily suspend operation of entrances, doors, corridors, or other facilities, provided. that Landlord shall cause as little inconvenience or annoyance to Tenant as is reasonably necessary in the circumstances, and shall not do any act which permanently reduces the size of the Leased Premises. Landlord may do any such work during ordinary business hours and Tenant shall pay Landlord for overtime and for any other expenses incurred if Landlord agrees to conduct such work during other hours as requested by Tenant. 11. FIRE OR OTHER CASUALTY; CASUALTY INSURANCE (a) Substantial Destruction of the Building. If the Building should be substantially destroyed (which, as used herein, means destruction or damage to at least seventy-five percent (75%) of the Building) by fire or other casualty, either party hereto may, at its option, terminate this Lease by giving written notice thereof to the other party within thirty (30) days of such casualty. In such event, the rent shall be apportioned to and shall cease as of the date of such casualty. (b) Partial Destruction of the Leased Premises. If the Leased Premises should be rendered . partially un-tenantable for the purpose for which they were leased (which, as used herein, means such destruction or damage as would prevent Tenant from carrying on its business on the Leased Premises 8 . . . to an extent not exceeding forty percent (40%) of its normal business activity) by fire or other casualty, Tenant may, at its option, elect to fix such damage at its own expense, with no reimbursement by Landlord, or terminate this Lease. Should Tenant elect to fix or otherwise repair the Leased Premises under this Paragraph 11 (b), Tenant warrants that all repairs will be done in a good workmanlike manner with materials equal in quality and class to the original materials, and in compliance with any and all laws, statutes, ordinances, regulations, fire codes, building codes and restrictions and requirements. In the event Tenant elects to terminate under this paragraph, Tenant agrees to provide Landlord with 30 days written notice to that effect, whereupon both parties shall be released from all further obligations and liability hereunder. (c) Casualty Insurance. Without limiting Tenant's liability under this Lease, Landlord shall procure and maintain a policy or policies of public liability insurance, insuring against injury or death to persons and loss or damage to property; provided, however, that Landlord shall not be responsible for, and shall not be obligated to insure against, any loss or damage to personal property (including, but not limited to, any furniture, machinery, equipment, goods or supplies) of Tenant or which Tenant may have on the Leased Premises or any trade fixtures installed by or paid for by Tenant on the Leased Premises or any additional improvements which Tenant may construct on the Leased Premises. If Tenant's operation or any alterations or improvements made by Tenant pursuant to the provisions of Paragraph 10( c) hereof are substantially different from the Tenant Improvements described in Exhibit "D" and result in an increase in the premiums charged during the Term on the casualty insurance carried by Landlord on the Leased Premises, then the cost of such increase in insurance premiums shall be borne by Tenant, who shall reimburse Landlord for the same after being billed therefor. Tenant shall at all times during the term, carry, at its own expense, property insurance with an insurance company licensed to do business in the State of Minnesota, covering its personal property, trade fixtures installed by or paid for by Tenant or any additional improvements which Tenant may construct on the Leased Premises which coverage shall be no less than eighty percent (80%) of replacement value. Tenant shall also carry business interruption insurance on such terms as shall be reasonably satisfactory to Landlord. Tenant shall furnish Landlord with a certificate evidencing that such coverages are in full force and effect. (d) Waiver of Subrogation. Landlord and Tenant hereby release each other and each other's employees, agents, customers and invitees from any and all liability for any loss, damage or injury to property occurring in, on or about or to the Leased Premises, improvements to the Leased Premises or personal property within the Leased Premises, by reason of fire or other casualty which are covered by applicable standard fire and extended coverage insurance policies. Because the provisions of this paragraph will preclude the assignment of any claim mentioned herein by way of subrogation or otherwise to an insurance company or any other person, each party to this Lease shall give to each insurance company which has issued to it one or more policies of fire and extended coverage insurance notice of the terms of the mutual releases contained in this paragraph, and have such insurance policies properly endorsed, if necessary, to prevent the invalidation of insurance coverages by reason of the mutual releases contained in this paragraph. 12. GENERAL PUBLIC LIABILITY, INDEMNIFICATION AND INSURANCE (a) Except for the negligence or intentional misconduct of Landlord, Landlord's agents, servants or employees, Tenant shall be responsible for, shall at all times during the Term of this lease and with an insurance company licensed to do business in the State of Minnesota, insure against, and shall indemnify Landlord and hold it harmless from, any and all liability for any loss, damage or injury to person or property, arising out of use, occupancy or operations of Tenant and occurring in, on or 9 about the Leased Premises and Tenant hereby releases Landlord from any and all liability for the same. Tenant's obligation to indemnify Landlord hereunder shall include the duty to defend against any claims asserted by reason of such loss, damage or injury and to pay any judgments, settlements, costs, fees and expenses, including attorney's fees, incurred in connection therewith. . (b) Tenant shall at all times during the Term carry, at its own expense, for the protection of Tenant, Landlord and Landlord's management agent (if any), as their interests may appear, one or more policies of general public liability and property damage insurance, issued by one or more insurance companies licensed to do business in the State of Minnesota and acceptable to Landlord, covering Tenant's use, occupancy and operations providing minimum coverages of $1,000,000 combined single limit for bodily injury and property damage per occurrence with $2,000,000 aggregate coverage. Such insurance policy or policies shall name Landlord, its agents and employees, as additional insureds and shall provide that they may not be canceled or materially changed on less than thirty (30) days prior written notice to Landlord. Tenant shall furnish Landlord with certificates evidencing such insurance. Should Tenant fail to carry such insurance and furnish Landlord with copies of all such policies after a request to do so, Landlord shall have the right to obtain such insurance and collect the cost thereof from Tenant. Landlord shall have the right during the term of this Lease to adjust the minimum coverage levels stipulated above upon written notice to Tenant. Within thirty (30) days of such written notice, Tenant shall provide Landlord with evidence of such adjustment. Tenant shall also provide Landlord with certificates evidencing workers' compensation insurance coverages. Tenant's insurance coverages required hereby shall be deemed to be additional obligations of Tenant and shall not be a discharge or limitation of Tenant's indemnity obligations contained in Paragraph I2(a) hereof. (c) Landlord and its partners, shareholders, affiliates, officers, agents, servants and employees shall not be liable for any damage to person, property or business or resulting from the loss . of use thereof sustained by Tenant or by any other persons due to the Building or any part thereof or any appurtenances thereof becoming out of repair, or due to the happening of any accident or event in or about the Building, including the Leased Premises, or due to any act or neglect of any tenant or occupant of the Building or of any other person. This provision shall apply particularly, but not exclusively, to damage caused by gas, electricity, snow, ice, frost, steam, sewage, sewer gas or odors, fire, water or by the bursting or leaking of pipes, faucets, sprinklers, plumbing fixtures and windows and shall apply without distinction as to the person whose act or neglect was responsible for the damage and whether the damage was due to any of the causes specifically enumerated above or to some other cause. Tenant agrees that all personal property located in the Leased Premises shall be at the risk of Tenant only, and that Landlord shall not be liable for any loss or damage thereto or theft thereof. 13. EMINENT DOMAIN If the whole or any part of the Leased Premises shall be taken for public or quasi-public use by a governmental authority under the power of eminent domain or shall be conveyed to a governmental authority in lieu of such taking, and if such taking or conveyance shall cause the remaining part of the Leased Premises to be un-tenantable and inadequate for use by Tenant for the purpose for which they were leased, then Tenant may, at its option, terminate this Lease as of the date Tenant is required to surrender possession of the Leased Premises. If a part of the Leased Premises shall be taken or conveyed but the remaining part is tenantable and adequate for Tenant's use, then this Lease shall be terminated as to the part taken or conveyed as of the date Tenant surrenders possession; Landlord shall . make such repairs, alterations and improvements as may be necessary to render the part not taken or conveyed tenantable; and the rent shall be reduced in proportion to the part of the Leased Premises so taken or conveyed. All compensation awarded for such taking or conveyance shall be the property of 10 . . . Landlord without any deduction therefrom for any present or future estate of Tenant, and Tenant hereby assigns to Landlord all its right, title and interest in and to any such award. 14. LIENS If because of any act or omission of Tenant or anyone claiming by, through, or under Tenant, any mechanic's lien or other lien shall be filed against the Leased Premises or against other property of Landlord (whether or not such lien is valid or enforceable as such), Tenant shall, at its own expense, cause the same to be discharged of record within a reasonable time, not to exceed thirty (30) days after the date of filing thereof, and shall also defend and indemnify Landlord and hold it harmless from any and all claims, losses, damages, judgments, settlements, cost and expenses, including attorneys' fees, resulting therefrom or by reason thereof. If such lien is not discharged of record within thirty (30) days after the date of filing thereof, Landlord, at its sole option, may take all action necessary to release and remove such lien (without any duty to investigate the validity thereof) and Tenant shall promptly upon notice reimburse Landlord for all sums, costs and expenses including reasonable attorneys' fees and Landlord's Costs incurred by Landlord in connection with such lien. 15. RENTAL, PERSONAL PROPERTY AND OTHER TAXES (a) Landlord shall pay before delinquency any and all taxes, assessments, fees or charges (hereinafter referred to as "taxes"), related to the Leased Premises, except any sales, gross income, rental, business occupation or other taxes, levied or imposed upon Tenant's business operation in the Leased Premises and any personal property or similar taxes levied or imposed upon Tenant's trade fixtures, leasehold improvements or personal property located within the Leased Premises, which will be Tenant's responsibility. In the event any such taxes are charged to the account of, or are levied or imposed upon the property of Landlord, Tenant shall reimburse Landlord for the same. Notwithstanding the foregoing, Tenant shall have the right to contest in good faith any such tax and to defer payment, if required, until after Tenant's liability therefore is finally determined. (b) If any leasehold improvements, trade fixtures, alterations or improvements or business machines and equipment located in, on or about the Leased Premises, regardless of whether they are installed or paid for by Landlord or Tenant and whether or not they are affixed to and become a part of the realty and the property of Landlord, are assessed for real property tax purposes at a valuation higher than that at which other such property in other leased space in the Building is assessed, then Tenant shall reimburse Landlord for the amount of real property taxes shown on the appropriate county official's records as having been levied upon the Leased Premises or other property of Landlord by reason of such excess assessed valuation. 16. ASSIGNMENT AND SUBLETTING Tenant may not assign or otherwise transfer its interest in this Lease or sublet the Leased Premises or any part thereof without the express, prior written consent of Landlord. Tenant shall notify Landlord sixty (60) days in advance of its intent to transfer, assign, or sublet all or any portion ofthe Leased Premises. In the event of any such assignment or subletting, Tenant shall nevertheless at all times remain fully responsible and liable for the payment of rent and the performance and observance of all of Tenant's other obligations under the terms, conditions and covenants of this Lease. No assignment or subletting of the Leased Premises or any part thereof shall be binding upon Landlord unless such assignee or subtenant shall deliver to Landlord an instrument (in recordable form, if requested) containing an agreement of assumption of all of Tenant's obligations under this Lease and Landlord shall execute a consent form. The parties agree that Landlord may at its sole discretion 11 withhold its consent to any assignment or sublease. Upon the occurrence of an event of default, if all or any part of the Leased Premises are then assigned or sublet, Landlord, in addition to any other . remedies provided by this Lease or by law, may at its option, collect directly from the assignee or subtenant all rent becoming due to Landlord by reason of the assignment or subletting, and Landlord shall have a security interest in all property on the Leased Premises to secure payment of such sums. Landlord, at its option, may also recapture any sublet space in the event of default. Any collection by Landlord from the assignee or subtenant shall not be construed to constitute a novation or release of Tenant from the further performance of its obligations under this Lease. Any rents received by Tenant from the assignment or subletting of the Leased Premises which exceed rents payable by Tenant hereunder shall be immediately paid to Landlord as additional compensation. Landlord shall, at its option, have the right to recapture all or any part of the Leased Premises Tenant proposes to assign or sublet upon notice from Tenant of its intent to assign or such sublet part of the Leased Premises. Landlord shall have the right to transfer and assign, in whole or in part, all its rights and obligations hereunder in the Leased Premises, the Building and all other property referred to herein, and upon such transfer, the transferor shall have no further liability hereunder and Tenant shall attorn to any such transferee. 17. SUBORDINATION OF LEASE TO MORTGAGES This Lease is subject and subordinate to any mortgage, deed of trust or similar encumbrance, including ground or underlying leases presently existing or hereafter voluntarily placed upon the Leased Premises, including any renewals, extensions or modifications thereof; and the recording of any such mortgage, deed of trust or similar encumbrance shall make it prior and superior to this Lease regardless of the date of execution or recording of either document. Tenant shall, at Landlord's request, execute and deliver within five (5) days to Landlord, without cost, any instrument which may . be deemed necessary or desirable by Landlord to confirm the subordination of this Lease; and if . Tenant fails or refuses to do so, Landlord may execute such instrument in the name and as the act of Tenant. Tenant shall attorn to any subsequent owner or transferee of the Leased Premises regardless of whether or not a subordination agreement has been executed by Tenant. 18. DEFAULTS AND REMEDIES (a) Default by Tenant. The occurrence of any one or more of the following events shall be a default and breach of this Lease by Tenant: (i) Tenant shall fail to pay any monthly installment of Base Rent or additional expenses or charges within five (5) days after the same shall be due and payable. (ii) Tenant shall fail to perform or observe any term, condition, covenant or obligation required to be performed or observed by it under this Lease for a period of thirty (30) days after notice thereof from Landlord; provided, however, that if the term, condition, covenant or obligation to be performed by Tenant is of such nature that the same cannot reasonably be performed within such thirty-day period, such default shall be deemed to have been cured if Tenant commences such performance within said thirty-day period and thereafter diligently undertakes to complete the same, but in any event completes cure within ninety (90) days after notices from Landlord. (iii) Tenant shall vacate or abandon or fail to occupy for a period of thirty (30) days, . the Leased Premises or any substantial portion thereof; 12 . . . (iv) Tenant makes or attempts to make an assignment for the benefit of creditors; or substantially all of Tenant's assets in, on or about the Leased Premises or Tenant's interest in this Lease are attached or levied upon under execution (and Tenant does not discharge the same within thirty (30) days thereafter); or (v) Tenant causes or permits a hazardous condition to exist on the Leased Premises and fails to cure such condition immediately after notice thereof from Landlord. (b) Remedies of Landlord. Upon the occurrence of any event of default set forth in Paragraph l8(a) hereof, Landlord shall have the following rights and remedies, in addition to those allowed by law, anyone or more of which may be exercised without further notice to or demand upon Tenant: (i) Landlord may apply the security deposit or re-enter the Leased Premises and cure any default of Tenant, in which event Tenant shall reimburse Landlord for any costs and expenses which Landlord may incur to cure such default; and Landlord shall not be liable to Tenant for any loss or damage which Tenant may sustain by reason of Landlord's action, regardless of whether caused by Landlord's negligence or otherwise. (ii) Landlord may terminate this Lease as of the date of such default, in which event: (A) Neither Tenant nor any person claiming under or through Tenant shall thereafter be entitled to possession of the Leased Premises, and Tenant shall immediately thereafter surrender the Leased Premises to Landlord; (B) Landlord may re-enter the Leased Premises and dispossess Tenant or any other occupants of the Leased Premises by summary proceedings, ejectment or otherwise, and may remove their effects, without prejudice to any other remedy which Landlord may have for possession or arrearages in rent; and (C) Notwithstanding the termination of this Lease Landlord may either declare all rent which would have been due under this Lease for the balance of the Term or exercised renewal period to be immediately due and payable, whereupon Tenant shall be obligated to pay the same to Landlord, together with all loss or damage which Landlord may sustain by reason of such termination and reentry, or relet all or any part of the Leased Premises for a term different from that which would otherwise have constituted the balance of the Term and for rent and on terms and conditions different from those contained herein, whereupon Tenant shall be obligated to pay to Landlord as liquidated damages the difference between the rent provided herein and that provided for in any lease covering a subsequent reletting of the Leased Premises, for the period which would otherwise have constituted the balance of the Term, together with all of Landlord's costs and expenses for preparing the Leased Premises, for reletting, including all repairs, leasehold improvements, marketing costs, broker's and attorney's fees, and all loss or damage which Landlord may sustain by reason of such termination, re- entry and reletting, it being expressly understood and agreed that the liabilities and remedies specified above shall survive the termination of this Lease. (iii) Landlord may terminate Tenant's right of possession of the Leased Premises and may repossess the Leased Premises by unlawful detainer or eviction action, by taking peaceful possession or otherwise, without terminating this Lease, in which event Landlord may, but shall be under no obligation to, relet the same for the account of Tenant, for such rent and upon such 13 terms as shall be satisfactory to Landlord. For the purpose of such reletting, Landlord is authorized to decorate, repair, remodel or alter the Leased Premises. If Landlord fails to so . relet the Leased Premises, Tenant shall pay to Landlord as damages a sum equal to the rent which would have been due under this Lease for the balance of the Term or exercised renewal period as such rent shall become due and payable hereunder from time to time during the Term. If the Leased Premises are relet and a sufficient sum shall not be realized from such reletting after paying all of the costs and expenses of all decoration, repairs, remodeling, alterations and additions and the expenses of such reletting and of the collection of the rent accruing therefrom to satisfy the rent provided for in this Lease, Tenant shall satisfy and pay the same upon demand therefor from time to time. Tenant shall not be entitled to any rents received by Landlord in excess of the rent provided for in this Lease. (iv) Landlord may sue for injunctive relief or to recover damages for any loss resulting from the breach. Any agreement for an extension of the Term or any additional period thereafter shall not thereby prevent Landlord from terminating this Lease for any reason specified in this Lease. If any such right of termination is exercised by Landlord during the Term or any extension thereof, Tenant's right to any further extension shall thereby be automatically canceled. Any such right of termination of Landlord contained herein shall continue during the Term and any subsequent extension hereof. (c) Landlord's Security Interest. Landlord reserves, and is hereby granted, a security interest on all fixtures, equipment and personal property (tangible and intangible) now or hereafter located in or on the Leased Premises to secure all sums due from and all obligations to be performed by Tenant hereunder, which lien and security interest may be enforced by Landlord in any manner . provided by law, including, without limitation, under and in accordance with the Uniform Commercial Code as adopted in Minnesota. At Landlord's request, Tenant shall execute and file, where appropriate, all documents required to perfect the security interest herein granted. (d) Default bv Landlord and Remedies of Tenant. Landlord shall not be deemed to be in default under this Lease until Tenant has given Landlord written notice specifying the nature of the default and Landlord does not cure such default within thirty (30) days after receipt of such notice or within such reasonable time thereafter as may be necessary to cure such default where such default is of such a character as to reasonably require more than thirty (30) days to cure. (e) Waiver of Covenants. Failure of Landlord to insist, in anyone or more instances, upon strict performance of any term, covenant, condition, or option of this Lease, or to exercise any option herein contained, shall not be construed as a waiver, or a relinquishment for the future, of such term, covenant, condition, or option, but the same shall continue and remain in full force and effect. The receipt by Landlord of rents with knowledge of breach in any of the terms, covenants, conditions, or options, of any of this Lease to be kept or performed by Tenant shall not be deemed a waiver of such breach, and Landlord, shall not be deemed to have waived any provision of this Lease unless expressed in writing and signed by Landlord. (f) Attorney Fees. rfTenant defaults in the performance or observance of any of the terms, conditions, covenants or obligations contained in this Lease and Landlord placed the enforcement of all or any part of this Lease, the collection of any rent due or to become due or the recovery of . possession of the Leased Premises in the hands of an attorney, or if Landlord incurs any fees or out-of- pocket costs in any litigation, negotiation or transaction in which Tenant causes Landlord (without 14 . Landlord's fault) to be involved or concerned, Tenant agrees to reimburse Landlord for the attorney's fees and costs incurred thereby, whether or not suit is actually filed. 19. BANKRUPTCY OR INSOLVENCY It is understood and agreed that the following shall apply in the event of the bankruptcy or insolvency of Tenant: (a) If a petition is filed by, or an order for relief is entered against Tenant under Chapter 7 of the Bankruptcy Code and the trustee of Tenant elects to assume this Lease for the purpose of assigning it, such election or assignment, or both, may be made only if all of the terms and conditions of subparagraphs (b) and (c) below are satisfied. To be effective, an election to assume this Lease must be in writing and addressed to Landlord, and in Landlord's business judgment, all of the conditions hereinafter stated, which Landlord and Tenant acknowledge to be commercially reasonable, must have been satisfied. If the trustee fails so to elect to assume this Lease within sixty (60) days after his appointment, this Lease will be deemed to have been rejected, and Landlord shall then immediately be entitled to possession of the Leased Premises without further obligation to Tenant or the trustee and this Lease shall be terminated. Landlord's right to be compensated for damages in the bankruptcy proceeding, however, shall survive such termination. . (b) If Tenant files a petition for reorganization under Chapters 11 or 13 of the Bankruptcy Code, or if a proceeding filed by or against Tenant under any other chapter of the Bankruptcy Code is converted to a Chapter 11 or 13 proceeding and Tenant's trustee or Tenant as debtor-in-possession fails to assume this Lease within sixty (60) days from the date of the filing of such petition or conversion, then the trustee or the debtor-in-possession shall be deemed to have rejected this Lease. To be effective any election to assume this Lease must be in writing addressed to Landlord and, in Landlord's business judgment, all of the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable, must have been satisfied: (i) The trustee or the debtor-ill-possession has cured or has provided to Landlord adequate assurance, as defined in this subparagraph (b), that: (1) The trustee will cure all monetary defaults under this lease within ten (10) days from the date of assumption and (2) The trustee will cure all non-monetary defaults under this Lease within thirty (30) days from the date of assumption. (ii) The trustee or the debtor-in-possession has compensated Landlord, or has provided Landlord with adequate assurance, as hereinafter defined, that within ten (10) days from the date of assumption Landlord will be compensated for any pecuniary loss it has incurred arising from the default of Tenant, the trustee, or the debtor-in-possession, as recited in Landlord's written statement of pecuniary loss sent to the trustee or debtor-in-possession. . (iii) The trustee or the debtor-in-possession has provided Landlord with adequate assurance of the future performance of each of Tenant's obligations under this Lease; provided however, that: (1) From and after the date of assumption of this Lease, the trustee or the debtor-in-possession shall pay the Base Rent payable under this Lease in advance in equal monthly installments on each date that such Rents are payable. 15 (2) The trustee or debtor-in-possession shall also deposit with Landlord, as security for the timely payment of Rent, an amount equal to three (3) months' Base Rent and other monetary charges accruing under this Lease; . (3) If not otherwise required by the terms of this Lease, the trustee or the debtor-in-possession shall also pay in advance, on each day that any installment of Base Rent is payable, one-twelfth (1112) of Tenant's annual Operating Expenses, and other obligations under this Lease; and (4) The obligations imposed upon the trustee or the debtor-in-possession will continue for Tenant after the completion of bankruptcy proceedings. (iv) Landlord has determined that the assumption of this Lease will not: (1) Breach any provision in any other lease, mortgage, financing agreement, or other agreement by which Landlord is bound relating to the Property, Building or Leased Premises; or (2) If requested by Landlord, the assignee will obtain guarantees, in form and substance satisfactory to Landlord (i.e. letter(s) of credit), from one or more persons who satisfy Landlord's standards of creditworthiness; and (3) Landlord has obtained consents or waivers from any third parties which may be required under any lease, mortgage, financing arrangement, or other agreement by which Landlord is bound, to enable Landlord to permit such assignment. . . (c) When, pursuant to the Bankruptcy Code, the trustee or the debtor-in-possession is obligated to pay reasonable use and occupancy charges for the use of all or part of the Leased Premises, it is agreed that such charges will not be less than the Base Rent as defined in this Lease, plus additional accrued charges and expenses and other monetary obligations of Tenant included herein. (d) Neither Tenant's interest in this Lease nor any estate of Tenant created in this Lease shall pass to any trustee, receiver, assignee for the benefit of creditors, or any other person or entity, nor otherwise by operation of law under the laws of any state having jurisdiction of the person or property of Tenant, unless Landlord consents in writing to such transfer. Landlord's acceptance of rent or any other payments from any trustee, receiver, assignee, person, or other entity will not be deemed to have waived, or waive, either the requirement of Landlord's consent or Landlord's right to terminate this Lease for any transfer of Tenant's interest under this Lease without such consent. 20. ACCESS TO THE LEASED PREMISES Landlord, its employees and agents and any mortgagee of the Leased Premises shall have the right to enter any part of the Leased Premises at all reasonable times for the purposes of examining or inspecting the same, showing the same to prospective purchasers, mortgagees or tenants and for making such repairs, alteration or improvements to the Leased Premises as Landlord may deem necessary or desirable. If representatives of Tenant shall not be present to open and permit such entry . into the Leased Premises at any time when such entry is necessary or permitted hereunder, Landlord and its employees and agents may enter the Leased Premises by means of a master key or otherwise, Landlord shall incur no liability to Tenant for such entry, nor shall such entry constitute an eviction of Tenant or a termination ofthis Lease, nor entitle Tenant to any abatement of rent therefore. 16 . . . 21. TERMINATION. Either party may terminate this Lease without cause upon providing the other party thirty days written notice of such termination. 22. SURRENDER OF LEASED PREMISES Upon the expiration, or earlier tennination, of this Lease Tenant shall surrender the Leased Premises to Landlord, together with all keys, access cards, alterations, improvements, and other property as provided elsewhere herein, in broom-clean condition and in good order, condition and repair, except for ordinary wear and tear and damage which Tenant is not obligated to repair, failing which Landlord may restore the Leased Premises to such condition at Tenant's expense, which shall be payable upon demand. Upon such expiration or termination Tenant's trade fixtures, furniture and equipment shall remain Tenant's property, and if Tenant shall not then be in default under this Lease, Tenant shall have the right to remove the same prior to the expiration or earlier termination of this Lease, Tenant shall promptly repair any damage caused by any such removal, and shall restore the Leased Premises to the condition existing prior to the installation of the items so removed. Any of Tenant's trade fixtures, furniture or equipment not so removed shall be considered abandoned and may be retained by Landlord or be destroyed. 23. HOLDING OVER If Tenant remains in possession of the Leased Premises without the consent of Landlord after the expiration or earlier termination of this Lease, Tenant shall be deemed to hold the Leased Premises as a tenant from month to month, terminable on thirty (30) days' notice given by one party to the other and subject to all of the terms, conditions, covenants and provisions of this Lease (which shall be applicable during the holdover period), except that Tenant shall pay to Landlord twice the last current Base Rent, and additional charges or expenses, which shall be payable to Landlord on demand. In addition, Tenant shall be liable to Landlord for all damages occasioned by such holding over. Tenant shall vacate and surrender the Leased Premises to Landlord upon Tenant's receipt of notice from Landlord to vacate. No holding over by Tenant, whether with or without the consent of Landlord, shall. operate to extend this Lease except as otherwise expressly provided herein. 24. QUIET ENJOYMENT Except as provided in Paragraph 23 hereofto the extent that it may be applicable, if and so long as Tenant pays the prescribed rent and performs or observes all of the terms, conditions, covenants and obligations of this Lease required to be performed or observed by it hereunder, Tenant shall at all times during the term hereof have the peaceable and quiet enjoyment, possession, occupancy and use of the Leased Premises without any interference from Landlord or any person or persons claiming the Leased Premises by, through or under Landlord, subject to any mortgages, underlying leases or other matters of record to which this Lease is or may become subject. 17 25. FORCE MAJEURE All of the obligations of Landlord and of Tenant under this Lease are subject to and shall be . postponed for a period equal to any delay or suspension resulting from fires, strikes, acts of God, and other causes beyond the control of the party delayed in its performance hereunder, this Lease remaining in all other respects in full force and effect and the Term not thereby extended. Notwithstanding the foregoing, the unavailability of funds for payment or performance of Tenant's obligations hereunder shall not give rise to any postponement or delay in such payment or performance of Ten ant's obligations hereunder. 26. NOTICE AND PLACE OF PAYMENT (a) All rent and other payments required to be made by Tenant to landlord shall be delivered or mailed to Landlord at the address set forth below or any other address Landlord may specify from time to time by written notice given to Tenant. (b) All payments required to be made by Landlord to Tenant shall be delivered or mailed to Tenant at the address set forth in Paragraph 26( c) hereof or at any other address within the United States as Tenant may specify from time to time by written notice given to Landlord. ( c) Any notice, demand or request required or permitted to be given under this Lease or by law shall be deemed to have been given if reduced to writing and mailed by Registered or Certified mail, postage prepaid, to the party who is to receive such notice, demand or request at the address set forth below or at such other address as Landlord or Tenant may specify from time to time by written notice. When delivering such notice, demand or request shall be deemed to have been given as of the .. date it was so delivered or mailed. Landlord: Tenant: Farmington EDA 325 Oak Street Farmington MN 55024 Attn: Tina Hansmeier Expressive Embroidery, Inc. 110 6th Street Farmington, MN 55024 Attn: Mark Bubbers 27. MISCELLANEOUS GENERAL PROVISIONS (a) Payments Deemed Rent. Any amounts of money to be paid by Tenant to Landlord pursuant to the provisions of this Lease, whether or not such payments are denominated "Base Rent" or and whether or not they are to be periodic or recurring, shall be deemed Base Rent or additional Rents owing for purposes of this Lease; and any failure to pay any of same as provided in Paragraph 18(a) hereof shall entitle Landlord to exercise all of the rights and remedies afforded hereby or by law for the collection and enforcement of Tenant's obligation to pay rent. Tenant's obligation to pay any such Base Rent or additional Rent pursuant to the provisions of this Lease shall survive the expiration or other termination of this Lease and the surrender of possession of the after any holdover period. (b) Estoppel Letters. Tenant shall, within ten (10) days following written request from . Landlord, execute, acknowledge and deliver to Landlord or to any lender, purchaser or prospective lender or purchaser designated by Landlord a written statement certifying (i) that this Lease is in full force and effect and unmodified (or, if modified, stating the nature of such modification), (ii) the date 18 . to which rent has been paid, (iii) that there are not, to Tenant's knowledge, any uncured defaults (or specifying such defaults if any are claimed); and (iv) such further matters as may be requested by Landlord. Any such statement may be relied upon by any prospective purchaser or mortgagee of all or any part of the Leased Premises. Tenant's failure to deliver such statement within such period shall be conclusive upon Tenant that this Lease is in full force and unmodified, and that there are no uncured defaults in Landlord's performance hereunder. ( c) Memorandum of Lease. If requested by either party, a Memorandum of Lease, containing the information required by law concerning this Lease shall be prepared, executed by both parties and filed for record in the office of the county recorder in Dakota County, Minnesota. (d) Applicable Law. This Lease and all matters pertinent thereto shall be construed and enforced in accordance with the laws of the State of Minnesota. (e) Entire Agreement. This Lease, including all Exhibits, Riders and Addenda, constitutes the entire agreement between the parties hereto and may not be modified except by an instrument in writing executed by the parties hereto. (f) Binding Effect. This Lease and the respective rights and obligations of the parties hereto shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto as well as the parties themselves; provided, however, that Landlord, its successors and assigns shall be obligated to perform Landlord's covenants under this Lease only during and in respect of their successive periods as Landlord during the term of this Lease. . (g) Severability. If any provision of this Lease shall be held to be invalid, void or unenforceable, the remaining provisions hereof shall not be effected or impaired, and such remaining provisions shall remain in full force and effect. (h) No Partnership. Landlord shall not, by virtue of the execution of this Lease or the leasing of the Leased Premises to Tenant, become or be deemed a partner of Tenant in the conduct of Tenant's business on the Leased Premises or otherwise. (i) Headin~s. Gender. etc. As used in this Lease, the word "person" shall mean and include, where appropriate, an individual, corporation, partnership or other entity, the plural shall be substituted for the singular, and the singular for the plural, where appropriate; and other words of any gender shall include any other gender. The topical headings of the several paragraphs of this Lease are inserted only as a matter of convenience and reference, and do not affect, decline, limit or describe the scope or intent of the Lease. (j) Waiver of Jury. To the extent permitted by Law, Tenant hereby waives any right it may have to a jury trial in the event of litigation between Tenant and Landlord pertaining to this Lease. (k) Allocation of Rent. Landlord and Tenant agree that no portion of the Base Rent paid by Tenant during the portion of the term of this Lease occurring after the expiration of any period during which such rent was abated shall be allocated by landlord or Tenant to such rent abatement period, nor is such rent intended by the parties to be allocable to any abatement period. . (1) Right to Change Name and Building Address. Landlord reserves the right to change the name or street address of the Building. 19 (m) Requirement of Identification. Landlord, or its contractor(s), may require all persons entering or leaving the Building during such hours as Landlord may reasonably determine, to identify . themselves by registration or otherwise, and to establish their right to leave or enter, and to exclude or expel any peddler, solicitor or beggar at any time from the Leased Premises or Building. (n) Limitation of Landlord's Personal Liability. Tenant specifically agrees to look solely to Landlord's interest in the Leased Premises for the recovery of any judgment against Landlord, it being agreed that Landlord shall never be personally liable for any such judgment. (0) Execution bv Landlord. Submission of this instrument to Tenant, or Tenant's agents or attorneys, for examination or signature ,does not constitute or imply an offer to lease, reservation of space, or option to lease, and this Lease shall have no binding legal effect until execution hereof by both Landlord and Tenant. (P) Time of Essence. Time is of the essence of this Lease and each of its provisions. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first written above. Landlord: Tenant: EXPRESSIVE EMBROIDERY, INC. By: Its: . FARNUNGTONECONOMUC DEVELOPMENT AUTHORITY By: Its: President By: Its: By: Its: Executive Director . 20 EXHIBIT B (Legal Description of Leased Premises) S 52.5 FT OF N 103.5 FT OF W 110FT OF LOTS 5 & 6 BLOCK 23 . . . 22 . . . EXHIBIT C TENANT ESTOPPEL LETTER Lease Dated: Landlord: Tenant: Leased Premises: ,2008 Ladies and/or Gentlemen: The undersigned ("Tenant") hereby confirms the following as of the date hereof: Tenant is the tenant under the captioned lease (the "Lease"). All capitalized terms contained herein have the meaning defined in the Lease. The Commencement Date of the Term is , 200_" The Expiration of the Term is Tenant has accepted the Leased Premises for occupancy and the condition of the Leased Premises, including the Leasehold Improvements constructed thereon and the Building is in conformity with the provisions ofthis Lease in all respects, except for the following: The rentable area of the Leased Premises is 1,529 square feet. The lease is in full force and effect; there is not existing default on the part of Landlord under the Lease; and the Lease has not been amended, modified, supplemented or superseded. Dated: ,200_ By: Its: 23 EXHIBIT D (Tenant Improvements) Addition of220 amp plug for Tenant's equipment . . . 24 . . . EXHIBIT E (Landlord Improvements) Install carpet, wall to wall, without removing shelving units in main area. Carpet should be installed around the counter ur Shelving in front storage room needs to be removed. Install 3 doors. (bathroom, sink area, storage room on north side of building) Modify ductwork on south wall to be vented on bottom. Remove metal parts along bottom of south wall and fill with sheet rock, add fill to holes/crevices with mud/plaster. Extend drop ceiling to south wall. The ceiling will need to contain 3 lights. Remove door and wall portion above door to no where. Mud/tape sheetrock wall that was installed after coolers were removed. Sheetrock, mud and tape other side of this wall. Clean interior upstairs and basement to include the following: 2. Some general dusting of wall for cot 3. Window & entry door (in & out) 4. Shelving on main level 5. Scrub and sanitize basement walls c steps) and please include cleaning of bath roo Electrical 3 lights in drop ceiling as listed above, Check fuse boxes to bring up to code, Block open circuits. Also create key code for what each switch is for. Redo the conduit in front storage room for electrical switch. Move existing Exit sign. Currently side mounted to wall, needs to be visible from all directions. Replace light fixtures in front office and storage rooms. Upgrade four(4) 2-pronged outlets to 3-pronged commercial outlets. 25 . . . ,.~ City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECf: Expressive Embroidery Variance Application DATE: March 24, 2008 INTRODUCfION IDISCUSSION Expressive Embroidery is proposing to locate a sign for its business on the north facing wall of the building. This requires a variance to allow a sign to be placed on the side of the building rather than the front of the building (facing 3rd Street) per City Code Section 10-6-3 (B) sub. 3a, written as follows: 3. B-1, B-2, B-3, B-4, and 1-1 Zoning Districts: (a) Wall Signs: One wall sign is permitted per building front as follows for each zoning district: B-2: 14 percent of fa<;ade (300 square foot maximum) The variance application is attached showing the proposed sign location. If the application is taken to the Planning Commission for review, it must first be signed by the property owner, which is the EDA. ACfION REQUESTED Review the application including the sign location, and determine if the EDA desires to sign the variance application form as the property owner. ( Res~. .IlYSUbmitt. ed,. .' 'Y:r~b7~ Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky, Jr., City Administrator 'IP v~ 1.c/ ~ ,~v " ~D(,;/t(;f'ti .{.OIf.Jlts 12 (dJ>i..-, . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us II VARIANCE APPLICATION Applicant: ~'ft 5S'lvt 2mb R.o,,)~r'1 Telephone: ~ 4(..0 - ~3>3/... Fax: L.J ",,6 r . 1 Address: JO 5 3 - c:; r rfl}{2.yY1 f IV' TZ"M Wi IV Street City State II 5502'-1 Zip Code Telephone: ~ _ Fltf?ml/lJftD;J pV11J City State rt~ I L\ I 'L Premises Involved: 305 3..... % S S2,5 of I\J 103.5 0(- 110 of d-rs Address! Legal D scription (lot, block, plat name, section, township, range) Current Zoning District COVriWl 1: ( c./ tk- Current Land Use \JA c~Jl ----'-l- 5" - .?ax: L.J . uwner' Street 5502.-~ Zip Code 5~~ BL~23 Address: Specific Nature of Request 'i~)t<l't. 0' f4 SUBMITTAL REOUIREMENTS o Proof of Ownership ltApplication Fee ($200) o Boundary / Lot Survey W t'\-AJT 'Lc) PoST 14: S' \ . tJ No ~,.. Ir tf'ffc.k ~ w kU-- oN PR-or):.~Tt' O'-U"''irtS fA~I~-pJ tt:>A o Copies of Site Plan o AbstractJResidential List (adjoining property owners only) o Torrens (Owner's Duplicate Certificate of Title Required) Signature of Property Owner 3/21 db Date Date _ Reque,st Submitted to the Plan~ing COlnmission on PUblicHearing Set for:: ,- ," - - .... ...,....F -" .. '0"""" .. ",:-, -:C,' ',' '-',' ,-'--'. Planning ComiDissi9D. Action:' ,/ - - - Approved ,.;;,~<":' " "-, :"'-" .. ,'" .. ...>,-".:. '- ..' c.... . .. . . ..... ." For office use only Adve~edinJ.,ocalNewspapei: :;',i:',>/'<:._.'".:;'::-,,-,' :,_.', ,.-'''; ~I?enied Comments: . . CoriditioD.S Set: Planning division: . Date: 9106 . ~ ~ '.~. . ;J ';J ",., ~1 '..4 ... "~J .'l .~~I -~ '~'l.\ V ,.J; "":" ,.J I~:~ ,. ,":,.' ,~ . ~J ~j ,,~ ~'I .' ~ F~_;'~;':e 11;,J,:.',~ ~~':g ~ . ~ ;;. ~ ,~\ q. I'- ., ~J .rl -. "J ,Ii $: : , ,,:,.t. t 11' ;J ~, t. , ,II'} ':- t . ,.~.,). .\ .\ .. \ . \ " \ II I ., \ \; \ \ \ \ , \ \ \ - .. I III II ~.. III l:I '! fj .;, l J , , · 1 ~; ~ I f~ ~l' ~- J l. . ,t:~ \jl . 1 ~I~.' aQ~ ~ ;? ..:.t.. ..~ ~'. . it. 1 ~,. . III '''i, 1; ~ .~( 'f: :I j ~~~ ~\.~. . 0\ \..\ [1,,- -J!~_ij ., · IlII \ .." ~f, ~ ~ ~'~..' ,*,~.", ..~.-.. '\ , ~ . i: ' ,I -~ III I _ _ ~ ,!A ~ ~, ~ '~~~....,.,'.'l.'. ~'~ t.~\il~ _ \ . l~" t Q I' l' ~,:tl II \.{' \ ~"-~ \~. ~. ",.."",. ,,\,: .,',_. 'III ,I',," ~ l[,~ \, w, ". t '1'. \'... ~. "'~ .1 ~ 'h~~" \' '\.'!t~\' L1.lIt> t,\\'~ .: -", \ ~~. ... 'iu \'.~ '" ~3 ~~'., d~Q \ 5, ~ 11 . \\ ~ ., III II 6\1 ., . 'l .",;,,:' ~ ..~',,~~ ~~ ~ " . il~' :>~, ... '. '"' 'J' . r~ ' ~,fl., ;; '"" ....' ." Ill. ~. "Y ., ~. ''"Il~'' ~,. , m fFI a III t \ \ \ _ _..-..;t..... . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: McVicker and Riste Lot Updates DATE: March 24, 2008 INTRODUCTION The McVicker and Riste lots are both EDA-O\,vned, vacant commercial lots located in downtown. DISCUSSION The McVicker lot, based on the details on the acquisition of the parcels must be sold for Fair Market Value (FMV). Fair Market Value= Acreage = $53,900 .18 The Riste lot, because of the use of Community Development Block Grant (CDBG) funds, can either be sold for a) Fair Market Value; no requirements attached or b) sell at a reduced price requiring that the end use meet one of the Federal Department of Housing and Urban Development national objectives. Fair Market Value= Acreage= $29,600 .08 ACTION REOUESTED This item is for discussion purposes only. Re$pectfully submitted, ;~Iv {laC filL /7m /oe<- Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsl,.-y, Jr" City Administrator . . . J City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Downtovvn Delineation Public Meeting DATE: March 24, 2008 INTRODUCTION Staff will be scheduling a public input session for the delineation of the DO\vntown Commercial District. DISCUSSION Following the City Council joint \vorkshop vvith the various City of Farmington boards and commissions, staff has revised the proposed DO\vntown Commercial District boundary. An important component to the delineation process is soliciting input from residents and business owners regarding the district. Staff vdll be scheduling a meeting for Monday, April 28, 2008 to provide citizens the opportunity to comment. A notice \vill be published in the local newspaper and individual notices 'will be sent to all addresses in the proposed district area. ACTION REOUESTED This item is for information only. Resp~ctfu.ll)'Stibmitt~d, .... i~' ~d' j---. ~ . - ---z.- ... Li~argi;:Ad~inistrativ --/~stant Delineation of the Downtown Commercial District . Farmington's historic downtown provides it's own unique brand for the City, and it's own unique challenges. What geographical area is actually considered the downtown business district has long been a source of confusion. Delineation of the downtown commercial district will provide the basis for creation of programs to support the economic growth and vitality of this area and to assist in the creation of design standards that will maintain the downtown's historic character. At a City Council workshop on February 11, 2008, members from various city boards and commissions met to discuss the proposed Downtown Commercial District. A preliminary boundary was created so that feedback could be obtained from residents and business owners in the area. Attached is a map of the proposed district. Please join us and provide your input on this important issue. Monday, April 28th, 2008 City Hall Council Chambers 5:30 p.m. - 6:30 p.m. . If you unable to attend the meeting you may provide input via email at Idargis@ci.farmington.mn.us or by calling an Economic Development staff member at (651) 463-1620 or (651) 463-1821. . This map has been created and distributed for discussion purposes only, The areas indicated are not fonnal districts at this time and merely represent possible options for future district locations, . . . ~ ~ ~' <3 % ,. w .., fS ~ ... c:.c.() ~<t..:::;' "4$,.. A PRO\lt'S\~ City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Design Standard Examples DATE: March 24, 2008 INTRODUCTION An example of design standards for the Downtown Commercial District has been provided for your review. DISCUSSION In response to questions that arose during the City council workshop that was held on February 11,2008; City Planner Lee Smick has created the attached list of design standards. The attached list provides an example of what type of standards would be most appropriate for the Downtown Commercial District. The final design standards would be created with input from the Planning Commission and the Historic Preservation Commission once the district was established. ACTION REQUESTED This item is for information only. '" Resp:stfu~-Submitted, . /"/ _ __ .. f ~ '\ /'C- /&.. jL~ "Y Lisa D~i;:Administrativ~~stant \~ DOWNTOWN COMMERCIAL DISTRICT PROPOSED DESIGN GUILDELINES . Setbacks: . Buildings south of Elm Street on Third, Oak, and Spruce Streets shall be set on the front property line. . Buildings north of Elm Street and east of Third Street shall be set on the front property line. . Buildings on Elm Street shall be set on the front property line between First and Fourth Streets. . Buildings north of Elm Street and west of Third Street shall be setback 20 feet. Major exterior surfaces: Style/Appearance to be Consistent with Other "Historic" Downtown Buildings . face brick . stone . glass . stucco . architecturally treated concrete . cast in place or precast panels . decorative block . Roof Line: . Flat or gently sloping. Facades: . Projections, recesses, and reveals expressing structural bays or other aspects of the facade, with a minimum change of plane of six inches (6"). . Changes in color or graphical patterns, changes in texture, or changes in building material. . V arying parapet heights and designs that demonstrate that the buildings are different from each other and that add interest to the streetscape. . Recessed entrances. . Building entrances that incorporate elements providing shade from the sun and weather protection for pedestrians. . Comer buildings which are distinguishable from the remainder of the building through the use of towers, architectural treatments, arches, roof forms, or size and mass. . Decorative (false facades) on upper story is allowed to provide variations in rooflines or heights. . One or Two Stories; Two Stories Strongly Preferred. . . . Windows shall be provided on walls that are adjacent to public or private rights of way, parking lots and sidewalks. Unifying Design Theme: . Buildings and/or streetscapes in the downtown commercial district shall reflect a unifying design theme that incorporates features found downtown commercial district. City staff and the planning commission shall detem1ine whether development proposals satisfy this requirement. Signs: . Projecting signs perpendicular to the building. . Wall signs flat along building frontage. . Monument signs are allowed where existing building is set back from front property line. Screening Of Roof/Exterior Equipment: . . Mechanical equipment, satellite dishes, and other utility hardware, whether located on the roof or exterior of the building or on the ground adjacent to it, shall be screened from the public view with materials identical to or strongly similar to building materials, or by landscaping that will be effective in winter, or they shall be located so as not to be visible from any public right of way, private street or off street parking area. In no case shall wooden fencing be used as a rooftop equipment screen. Screening: . Screening of service yards, refuse, and waste removal areas, loading docks, truck parking areas and other areas which tend to be unsightly shall be accomplished by use of walls, fencing, dense planting, or any combination of these elements. Screening shall block views from public rights of way, private street and off street parking areas, and shall be equally effective in winter and summer. Chainlink and slatted fencing are prohibited. . I .J ~ J .~ \b~ ~~ ~<) \t \1:~ . ~~ ~~ ~~ . , , \ . ( (.:) b... DI"'" \ \ ~. .' ~ . ,..t' ~ ~ ~' ~ ~ ~ ~ \u ~ " i , ~ ., I III ~:l ~ . \ ~ ~ ~ ~ ~ ; 'Ii'" - '\ ' \ . ... . "'- iI.... - ,., ./ .. ;, ~ r-r" . . " ~.. i . .; . 1 1 I I \ ~ ~ r 1 \ i. i.;' fi l~ , \ \ Vfi . '. I :~4-1, C?::a : , d':~~ tj' :' I:~.. , ~,' . t . ~ , \ , , \ \ .~ \ , , lr ~ ~ . ~ ~ . . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Downtown Success Strategies DATE: March 24, 2008 INTRODUCTION Staff has provided follow-up information regarding strategies to support dO""l1to"vn. DISCUSSION At the February 25th meeting, we distributed a booklet entitled "Bringing the Best . Busines~es Downtown". Staff has reviewed the ideas presented in the report and identified activities that are currently taking place as they pertain to the information. There were many suggestions included in the report that may prove beneficial in support of Farmington's downtown businesses. As you will see from the attached outline, the area with the most future activity potential is marketing. As \,ve are discussing marketing plan development, this publication can be used as a resource to generate ideas and recommendations. ACTION REQUESTED Thi.s item is for informational purposes only. ,~,~?pedfuJ~: SubQ1itted, ./ _J"~C- ,,_.. /~. "...,;"..- .-0 ) ~..~ f / '--"" <.' ...... \ l..../ ---.-.---- .,~ ------ -..,'...... Lisa.Dargis, Adminisb-at-ive'::Assistant Bringing the Best Businesses Downtown . Research . Analyze the Market (Market Study Completed 2007) . Uncover or Develop Market Niches . Ensure Local Regulations Don't Hamper Retention & Recruitment (Working with EGC to Streamline Development Process, Design Guidelines Should Reflect This As Well) Business Support . Assess Local Business Needs (Business Outreach Visits) . Remember to Focus on Retention (Business Outreach Visits) . . Build a Network of Referrals . Provide Helpful Resources and Assistance (Economic Update, Business Reinvestment Loan Program, Business Resources Page) Marketing . Target Your Office Market . Promote Nontraditional Spaces (Using the Former Liquor Store as an Incubator, DCTC Potentially Occupying Space in City Hall) . Find Creative Ways to Reuse Existing Space . Don't Forget Residential . . Marketing (cont.) . Target City, State and County Offices ,New C'.tv Hall, EXIsting l.ibrar y Post OffIce 5WC 0, Cx:reils;on Ofke Fairground..; Office; . Increase the Level and Quality of Downtown Promotion . Put Your Package Online . Hold an Open House . Get Out and Recruit . Create a Business to Business Directory (Possible Use for Existing Ongoing Business List) . Create a Consumer Guide . Create a Full Blown Recruitment Package . . Create a Database to Track Availability, Including Lease Status (Available Space Spreadsheet) . Create Printed Catalogs of Available Space Aesthetics . Improve the Appeal and Image of the Downtown Area (Business Reinvestment Loan Program, Elm Street Reconstruction Project) . Inventory All of Your Resources . Create Window Displays in Vacant Windows . . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.71] 1 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Current City Hall Site DATE: March 24, 2008 INTRODUCTION Staff would like to initiate discussion regarding the future use of the current City Hall site. DISCUSSION As was mentioned at the February 25th Special City Council Meeting, there has as yet been no determination how the site of the current City Hall building ,,,rill be handled once staff moves to the new building. There have been numerous discussions and several potential uses discussed; but no formal discussion has taken place by the City Council. Due to the fact that the building is owned by the City of Farmington, the EDA and possibly the EGC, may "Irish to provide recommendations regarding the best use of the site. Attached is an aerial photo of the site and adjacent properties for discussion purposes. ACTION REOUESTED This item for discussion purposes only. 0, \ Respectfully Submitted, -., /". --6;/.'':>'%.'' -"', , .> l^'-.. ' <... ,-', ""'-.', Lisa Dargis, Adminit3.tive As,~istant -.._......_... .J ~ . 'j': S< "..'.J". ",.-..'" -., " > Jit~ ,,"" .. ~ ,,,.. .. .. . F". ,'t... ,:~:."' -'''~: '. · ',.' .. :o'" . ',' . '. ... . ~-;: ." ';~'. . ,,",,,;.,,,,. 'v.':'; ~ ' .,..... .~. .. ... . ;!I ,.). ~ \. " ,..-.'_.. " , 't.... GAN~ I, ' .. i I , ' re~. ., :;+ ~ , .. Q~tt..: I'.l "'" ')} '''(1~ '" "V cPoo CJ o ., -r.' l' ~.... \ ~. . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Marketing Discussion DATE: March 24, 2008 INTRODUCTION Staff would like to recommend a comprehensive marketinglbranding campaign for the community. DISCUSSION Staff had a chance to attend the EDAM Winter Conference earlier this year \vhere information was presented regarding collaborative efforts between City Government, Economic Development Authorities and Chambers of Commerce \vhich successfully developed consistent broad based marketing efforts. COlmnunity involvement is critical for any marketing and or branding effort to be effective and accepted. Staff has created some marketing pieces internally over the past year but would like to develop a more comprehensive citywide campaign. The assistance of a marketinglbranding firm may be beneficial for this type of plan. Staff would like the EDA Board to provide input on this issue and discuss plans for the remainder of 2008 and potential budgeting for 2009. ACTION REQUESTED This information is for discussion purposes only. Respectfully submitted, ~ yjt; WI/-n/flJ/)fJC1:j Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky, Jr., City Administrator , . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Industrial Development Strategies DATE: March 24, 2008 INTRODUCfION Staff has received two quotes for industrial development consulting services. . DISCUSSION As has been discussed previously, the current Farmington Industrial Park is for the most part full. The remaining developable land is privately held. Staff has obtained quotes from two consultants to assist in the development of strategies for the City to acquire or control additional industrial land and to negotiate with landowners. With the results of the Market Study supporting expansion of the industrial park and the current downtown in the price of property, staff would like to initiate the process of determining options for industrial growth. The members of the EGC have expressed an interest in assisting with this process as well and could provide an opportunity to collaborate on identification of community business leaders who could be of assistance. ACTION REQUESTED Recommend entrance into an agreement with one of the consultants and direct staff to begin assembling stakeholders and initiating contact with landowners. Respectfu~ubmitted, ,/ ..'D r ./'/ ! \ ).., //7 / -{ lL- X-~ c l:rS~Ac!miniLr AsS~rnt ~ .$ , . . . January 28, 2008 Peter J. Herlofsky, Jr. City Administrator City of Farmington 325 Oak Street Farmington, MN 55024 RE: Development Services Dear Mr. Herlofsky: Thank you for the opportunity for Maus Group, LLC (Consultant) to provide community development services to the City of Farmington (City). We look forward to working with you on the following basis: Scope of Work Consultant will assist you in addressing the following objectives: 1. Meet with Staff and EDA to identify land for industrial park expansion. 2. Meet property owners to determine availability of land. 3. Develop scenarios to own or control the property. 4. Negotiate agreements representing the City of Farmington. 5. Provide written and oral reports as required. Our success in addressing these objectives is based in part on receiving the cooperation of your employees and our receipt of timely and accurate information. Compensation Consultant will be paid the hourly rate and mileage reimbursement noted below. In addition City will reimburse Consultant for out-of-pocket expenses approved in advance by the City. Hourly Rate $260/hour Mileage $.0485/mile Peter J. Herlofsky, Jr. January 28, 2008 Page 2 Termination Either party may terminate this engagement upon seven days written notice. Should you notify Consultant of your intent to terminate, we will deliver all completed work in our possession to the City upon payment to Consultant for services performed prior to termination, together with expenses incurred by Consultant. Liability In no event shall Consultant's liability to you exceed the fees paid to Consultant under the terms of this agreement. Attorneys Fees and Costs Consultant shall be entitled to recover reasonable fees and expenses incurred in any action or proceeding to recover fees or expenses earned under this agreement. Applicable Law Any disputes arising under this agreement shall be resolved or determined in accordance with Minnesota law. Please sign where indicated to confirm your acceptance of these terms. Maus Group, LLC Date: By: Bruce A. Maus City of Farmington Date: By: Peter J. Herlofsky, Jr. City Administrator 'I. . . . . . . March 20, 2008 Peter Herlofsky, Jr. City Administrator City of Farmington 325 Oak Street Fannington, MN 55024 RE: Consulting Services Dear Peter, Per your request, we have prepared the following proposal for consulting services to assist the City of Farmington (City) in implementing an industrial development strategy. The term "Consultant" refers to Mr. Joel Jamnik or Mr. Lee Mann for the purposes of this agreement. Scope of Work 1. The Consultant will meet with City Staff and the Economic Development Authority to identify strategies to creation of a second industrial park. The Consultant will negotiate with property owners regarding their willingness to develop their parcels and determine the price of the land. Possible options for acquisition or control of industrially zoned property will be presented to the EDA for their direction. Options for installation of utilities to the site will be determined and a recommendation made to the EDA. 2. 3. 4. Compensation See standard rate schedule For Bonestroo and Campbell Knutson as adopted by the City Council. Lee Mann Bonestroo, Rosene, Anderlik & Associates Joel J amnik Campbell Knutson Professional Association . D I I I , J I i I I I I I I I I I ! f\ 1-\ o 0 LAKEVILLEBLVD . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Dakota County's Economic Development Strategy Initiatives DATE: March 24, 2008 INTRODUCTION Please see attached email with attachment from Mark Ulfers, Executive Director of the Dakota County Community Development Agency. DISCUSSION The information provided is merely an update for the Board's review and understanding on the status of the strategic initiatives that the County Board approved at its meeting in July 2007. With regard to the first action step under Strategic Initiative 4b: Enhance Image, Marketing and Branding, the County has recently provided financial support in order for the County to become a partner in an ll-county Twin Cities economic development initiative. This includes a GIS-based \\'ebsite to be used primarily by site selectors, using Minneapolis/St. Paul ("MSP" as the key connection. The website will be "launched" in mid-April and training \"rill be provided by the County to certain staff. The website is currently under construction however, it can be viewed at wW'vv.metromsp.org. One can also go to www.gisplanning.com to see how other metro areas are using this GIS system. ACTION REQUESTED This item is for informational purposes only, no action is required. Respectfully submitted, Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsh.1T, Jr., City Administrator Page 1 of1 Tina Hansmeier From: Peter Herlofsky Sent: Thursday, March 06, 2008 1:43 PM To: Tina Hansmeier; Lisa Dargis; Lisa Shadick Cc: Cindy Muller Subject: FW: . Please add this item to EDA Agenda. Peter J. Herlofsky, Jr. City Administrator City of Farmington, Minnesota 325 Oak Street Farmington, MN 55024 Phone: 651 4631801 E-mail: pherlofsky@ci.farmington.mn.us From: Mark Ulfers [mailto:MarkUlfers@dakotacda.state.mn.us] Sent: Thursday, March 06, 2008 12:34 PM To: Craig Ebeling; Dave Osberg (External); Jamie Verbrugge; Jim Danielson; Joe Lynch; Karen Divina ; Peter Herlofsky; Steve King; Steve Mielke; Tom Hedges; Tom Lawell Cc: Greg Konat; Jack Ditmore; Dave Rooney; Brandt Richardson (External) Subject: --ro:---.----- Dakota County City Administrators . FROM: Mark Ulfers, Executive Director DATE: 3/05/08 RE: Update on County's Economic Development strategic Initiatives I would like to update you on the status of six strategic initiatives that were approved for economic development by the Dakota County Board of Commissioners last July (attached list). I will continue to update you on these initiatives, and please contact me if you have further questions or concerns. . A steering committee was formed to oversee these initiatives, which includes Greg KonaL Jack Ditmore, Dave Rooney and me. We will meet quarterly to direct and monitor the implementation process. . All thirty-one actions were narrowed down to twelve as priorities to start in 2008, which are bolded in the attachment. Once some progress is made on these, the Steering Committee will likely direct others to begin. . One action well underway relates to Initiative 2.2, which is a county-wide Commercial/Industrial market study by Maxfield Research. A draft was recently provided to the CDA. which will be reviewed by the workgroup before making the final version available. This workgroup consists mostly of City:. representatives. . As part of creating more prospect response capacity (Initiative 4a.1), the CDA is financially supporting 3/6/2008 Page 2 of2 . the start of an ll-county Twin Cities regional economic development website. Before agreeing to fund this project a meeting was held by the CDA where the web site was demonstrated. The session was well attended by City and Chamber of Commerce representatives. After receiving a number of letters of support from Dakota County communities, we have decided to move forward as a participating entity. We are looking at this as a pilot project and will assess outcomes after the two year demonstration period. More information will be forthcoming in the next two months. . Other actions are in various stages, but most of them are just beginning as meetings are scheduled by the assigned workgroups. Cc: Brandt Richardson; ED Steering Committee . . 3/612008 Dakota County Economic Development Strategy Prioritized Actions (2007 & 2008) . STRATEGIC INITIATIVE 1: Invest in Transportation and Transit Networks Prioritized List (top two balded for first action steps): 1. Identify areas in the county's transit plan that could support new and/or increased transit services (Le., Robert street, U-More Park, Cedar Avenue). Continue to provide planning assistance funds (through the Rail Authority) for communities along transitway corridors to focus on TOO. 2. Develop an approach for integrating consideration of economic development into transportation capital investment decisions (e.g. economic development factors as well as safety and traffic factors). Present to the county board for their consideration during the Transportation Plan Update. 3. As part of county transit plan implementation, research a potential program that expands the county's role related to transit facilitation, information and . .. ~g()!qi.rl9ti.()1J .Y".iJh .ef!1f?I()y~rs_, .<:::()~Q1~rliti~_s,..M\I!A_g_r1~::LQ6.~I~.u _. .... .._.... _ ......__ ...... pm 4. Build upon and replicate proposed transit investments that are key components to economic development, such as Eagan's Cedar Grove redevelopmenfsite.. ..... .. ..... p ....... .... ... . . 5. Collaborate with other organizations, coalition groups and/or through the Urban Partnership Agreement program to explore the costs and benefits of creating a Transit Management Organization (TMO) to serve Dakota County. Encourage private sector participation and funding. 6. Work with cities and explore land use and zoning options which work more effectively with current highway access spacing guidelines. Analyze tax base, safety and transportation impacts. 7. Continue to pursue funding for transportation priorities at the state and federal levels. Build upon existing cooperative lobbying efforts, including the 1-35 Solutions Alliance, the Cedar Group, and the TH52 Freeway Partnership. . 1 . .- . STRATEGIC INITIATIVE 2: Coordinate Strategic Infrastructure and land Development Prioritized List (top two bolded for first action stepsl: 1. Evaluate ways to improve coordination between the CDA and the County's environmental staff, using the cleanup of a 7 -acre housing redevelopment site in lakeville as an example. Develop staff expertise in brownfield redevelopment through training (CDA). Work together on developing a pilot program that would identify a prioritized system of brownfield sites for redevelopment and a list of technical and funding resources. 2. In response to city interest, initiate a RFP process guided by a city/county workgroup, to retain a consultant to analyze the industrial land market, historic and projected absorption rates. The consultant will also assist the workgroup in exploring options to establish an ongoing real estate tracking system. Use the CDA's recently completed a comprehensive housing needs study for Dakota County as an example of a county-wide study that was well received by cities and the county. 3. Initiate a study on property tax implications of various development patterns, possibly including this with the commercial-industrial market study. 4. Continue to examine and expand telecommunications capacity within Dakota County and the region (IT participates in a regional task force, the _'_'Giga-group", with the City of Eagan, Thomson-West, Hubert Humphrey Institute of Public-Affairs, MHTA;andChcimb-ers). - - -- ------- -- - - 5. Examine the pros/cons of having private telecommunications vendors having exclusive leasing of dark fiber to providers for expanding residential and commercial access to increased bandwidth. 6._~xp_I~~~J?~blic access responsibilities; the High Performance Partnership Project (H I P p} -i den f1Hecf] 97-publl"co-c-cess-nodes fh6fwiil"haveT6o -fvHfor ---- greater access within 12 months. 2 STRATEGIC INITIATIVE 3: link Workforce Development and Economic Development Prioritized List (top two balded for first action steps): 1. Provide cities with WIB information about its programs and services that can impact economic development activities, including business retention and expansion. 2. Evaluate whether smaller resource rooms could possibly be located at other sites beyond the two Workforce Centers in Burnsville and West Sf. Paul, such as public libraries or schools. 3. Enhance outreach to employers and employees with more visibility and accessibility. 4. Build upon job training that takes place at DCTC and Inver Hills, which provides a significant resource to local businesses. 5. Explore options (other than county property tax dollars) to fund the loan or scholarship programs. . .u.~--- .__ __ _.... __._~._. ~. m_." __.._. .... __.,. .,._ .,.. ...u. .._ >..___....-. __......,. ___ .__ _..___ . ____.... '.... _ ......._____. ._......, _...-. .... __.._ _no _____._ _ .... ._n.__~_~' __._____.__ _... - __.u._<... - - - ....--.. ...-- ---.---..--...-----.. .-.,.-.. ...-- ...... .....-. ..-....".- 3 . . STRATEGIC INITIATIVE 4a: Create Prospect Response Capacity Prioritized List (top one bolded for first action stepsl: 1. Identify the CDA as the first point of contact for inquiries that come to Dakota County related to economic development; clarify interdepartmental coordination. 2. Designate the CDA as the first point of contact for economic development inquiries from local governments. Clarify processes for interdepartmental coordination. STRATEGIC INITIATIVE 4b: Enhance Image, Marketing and Branding Prioritized List (top one bolded for first action steps): -.- 1. The CDA and County communications staff will work together to evaluate web _ ____ ___________!i!~_~ ~_~!~_~lJr_!~!~~!J5?_exe~~~L~~~~o':!!i~_~~~~J~J'_!!!~~_!nf5?!_~9!!5?_r:!_c:lI?9.~L__ ________ --- ------0 Dakota County and corresponding links to other web sites. 2. Evaluate curr-erit or .planned efforts-by various6-rganizationsdt6 -brandor .Od________ -market Dakota--County or the metro-area-as-a placefor-b1:Jsiness -growth and- development. 3. Identify ways to improve the overall image and perception of Dakota County as a place to locate and grow a business. ______.. ...__ ..._.. - _._ .___________._.___ _.._______. ..._._____."..... ___ ___.. __ ._____.. ______._____._ _.__ - ,,_" .__ ,______.___..___......_....._..___........_.____. - ___. - ___.._____..._.__ ____ ...._ .___.. ._._..... .-.-..--..-.-----.-----..._.___0_-. . 4 STRATEGIC INITIATIVE 5: Provide Quality Workforce . List top two balded for first action steps): 1. Identify opportunities within TOO sites related to land acquisition and affordable housing, by the COA and/or other housing developers. Initiate a short and long-term plan for the COA's involvement within TOO sites once they are identified in comprehensive plans. 2. Obtain contact information on key employers throughout the county that may benefit the most from information on affordable housing opportunities for their employees. Develop and maintain ongoing marketing of affordable housing to employers. 3. Obtain annual support from the Dakota County Board of Commissioners to approve levy funds for the HOPE Program. Continue to evaluate its effectiveness and impact on affordable housing opportunities. 4. Evaluate the need for Housing Improvement Districts that help multi-family development obtain a financing mechanism to complete building/site improvements (similar to one that was recently done in Eagan with CDA assistance). Provide a program summary and technical assistance to cities ----n-:~.---- --: ---: --~-. ------------~;~~~~~~e-nelif fromffiTst~~-~-~f fin~~Ci n g_s~_~~~r=e~~~:m~ro~~~n-~~;sl=~~:----.--n;;- -;-- :-- --~.__-:_ .. ___ .___ ___.____._______._..___...._..__.,__. ... ..n .__..___..__.___...._ '_". "...__ .___._____._. _u.._._..__ _.".____ ______..__0__..____..__._ ..._..__ ___.. _._ ____________..._.___. __.. ___. __ ___m_._________ . 5 . STRATEGIC INITIATIVE 6: Strengthen Development-Related Research and Policy Capacity Prioritized List (top two balded for first action steps): 1. Create reports that include additional economic trends, market data, and land absorption rates or add some of this data to existing reports. Gather information on a regular basis from cities, real estate companies, county assessor, etc. 2. Develop a list of current topics and speakers for workshops to public and private audiences. Schedule workshops at least two times per year in Dakota County. 3. Review successful examples of TOO throughout the nation in order to assess ways to link transit, housing and employment. Find TOO examples, or parts of TOO, that would bring value to potential TOO sites in Dakota County. 4. Begin to document increases in market value of property adjacent to transportation projects as a way to assess economic return. Test various measures that help determine whether transportation investments will result in .....__: __.__~g_highJate~QJ ec:nQmic_LeJ\1m,_~=~~_~:__ _ _~_=:_______ -----~:~~.- . ".__,_..__ __.. _ _.__..._ ..._....______________n__ ___ _ __._ .____ ...__ ."._"___,_".__._ _________ .________ .__. ..._.__....._.. _._._._ ---.- -------.--+. ..- -.. .--....-.- -----.------ --_..- ---. -.._-- -.---------- ~-- -- ----- _.,--.- . 6 . I Workshops, Training & Networking . Tina Hansmeier, Lee Smick and Lisa Dargis attended the Economic Growth Committee Meeting · Tina attended the Business Af- ter Hours Event at Janie's Home Team Realty . Staff and City Council Members attended Dakota Electric's 18th Annual Partners in Progress Event ~~t;~ . The latest l estimates put \ Farmington's population at 21,072 The City is 14.83 square miles in size --- -- TC Davis Manor Bed and Breakfast When planning your next event consider holding it at the TC Davis Manor. With enough space for 25 participants, the Bed and Breakfast provides facilities for Team Building or Private Business Luncheons, Murder Mystery Dinners, Garden Parties and Bridal Showers. A Registered Dakota County Historic Landmark, the Manor is located at 520 Oak Street in the heart of Downtown Farmington. For more information call (651) 460-3923 or log on to www.tcdavisbedandbreakfast.com Pal:!e 2 Farmington Economic Update Catch the News.... . . Mayor Kevan Soderberg presented the State of the City address on March 19th. Watch for the presentation to be broadcast on Cable Channel 16. It will also be available on the City's website. · Watch for details on the upcoming public input session regarding the delineation of the Downtown Commercial District. . Check out the City of Farmington's website for details on the upcoming 2008 Park and Pond Cleanup Day - This event is a chance to join in and help keep the local parks looking bea utifu I! Did you [<now.. . "Vart He:n" is Swedish for "Our Home" . - -- .,...,. -.-...- ~ ~::CQfFooC~~ Vart Hem Coffee Cafe Not just a coffee shop, Vart Hem offers a full menu including soups, sandwiches, full breakfast, fruit smoothies, homemade bakery items and ice cream. Located in the Farmington City Center at 115 Elm Street, Suite C, the Cafe has been serving Farmington residents for the past four years, Having an event . in town? Vart Hem can also provide catering services for your next party or meeting. Call (651) 460-2227 for details! Page 3 . '.....,. "'''''- .. 2nd Street Parking Lot Since the reconstruction of Elm Street last summer, the portion of 2nd Street between Elm and Oak Streets has been opened to two way traffic (it was formerly a one way access), The public parking lot located on 2nd Street offers a convenient parking option for down- town shoppers. A walkway behind the building occupied by B&B Pizza and Dakota Motors provides easy access to Third Street. . I INQUIRIES Industrial Space 2 Industrial Land 1 Commercial Space 5 Commercial Land 3 I Business Contact 6 I L Information Request 9 Housing 1 . Funding 1 Misc 2 I \ trF~" I (' I) rl \r 'I I X / l~'~ L I I -~ ~ I ..~ Spri~g is Herel Lake Marion Marine, located at 5465 212th Street - Suite 4 in the Farmington Industrial Park special- izes in marine and small engine repair. The equipment that they service include all boat motors, lawn and garden equipment, chain saws, pressure washers and snow throw- ers. Their services include tune-ups, blade sharpening, rebuilding motors, and wiring problem repairs. Pick up and delivery are available. For more info call ((651) 460-2008 l' 11. .... . 1 ~ ===-- ~# "" }~~~- Treasures Past or Present Where can you find a unique collection of. \vell -EVER YTHING? Try Treasures Past or Present in Downtown Farmington. Antique lovers and collectors of all types will find something to enjoy at this local retailer. Fumiture, China. dolls, jewelry. vintage clothing. collectablcs..,it's all there, The store is located at 34] Third Street and is open Fridays and Saturdays from 2:00-8:00 p.m. Pa!:!e 4 Farmington Economic Update Business Trivia ... What local Farmington business makes products that end up in space? Aerospace Fabrication and Materials Located at 5147 208th Street in the Farmington Industrial Park Check them out on the web at www.aerospacefab.com 9t: 'ON I!WJ8d NVIJ 'UOI5uIWJ8:::l Ol\fd 38\flSOd 's'n PJePU81S lJos8Jd .~ ..... '," Iii =!jj. gj.: ~. · J .. if . ,Iit;..",: ~JfJ_'''.'I''~'' ~~~ "... ~..lil " .~.'~ : . . ~! ~ I~ I ~ I I I I . VZOSS NII\I 'uoJ6UIWJe.::l JaaJJS ~eo SZ~ . uOJ6ulWJe.::110 All:) I . J: u co Q) L- ...., :J o tn tn Q) C .- tn :J OJ [1- 1~1 ...: Al -.<- ..........._'":'iI~ . o rJ t) III o D :::.g 11:1 lCi I .S " E .'-.; tt _ '..;A:.... E CO L- Cl o L- a.. ., I~ ~~ :1 ~, .~ I I . ;:~ ~:;i~. .':Jl::r1. ~ ~ --. ~ - g J' ~. 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Dl-r1" -< C DlDlr+OU ....0"0 0 ..... - 3' /1) _ r+ 5' U 0 n' 5' r+ n 10 /1)DlDlC 10 ;:+ - /1) '0""'< OJ Dl '" /1) c: --+'C:-(JI , 'TI (JI 0 -. o -'U:J _Dl:J3/1) III ' III (JI _. 3 ~ /1) (JI :J 5' /1) ~ -+. 10 (JI (JI c: r+ (JI r+or+r+r+ c:Jo~:r ~ (JI- - -+. /1) IOn~3:J '0 r+/1) c: 0':::T33 :Eg/1)O"O" ;,3~/1) Dl (JI' Dlr+", :J /1):J 0 a.noO:J U 0 ~ c: /1) , 3 ' o r+lOu (JI 3 :::T 0 ~. UC:~DlO ~:J - ~. -. ;::j: r+ -. r+ ~ -< :::T (JI -< . /1) r+ OJ-<o-+' :J 0 a.Dl"'" , /1) ~ /1) Dl 0 n c: = Dl :::T , r I (I!pj , _ _.f':.. .. ..... . . . .~ '~;'. ~t- :1 :~ ' ~~ I .~ : 1 · , :~ I ~ ' . . . , . I , , ~ ~ i I . . Revitalization Projects Regional revitalization a good strategy for small, closely aligned downtowns Smaller downtowns in a region, especially a region that has a brand or market identity, may find that they can accomplish more by working together than by working alone. Partnering in regional revitalization makes excellent sense as a way for downtowns to increase the flow of shared resources, opportunities, and ideas. A case in point is the Land- mark Towns Initiative, a coopera- tive venture between the historic Bucks County, Pennsylvania bor- oughs of Bristol (pop. 9,920), Morrisville (pop. 10,020), New Hope (pop. 2,250), and Yardley (pop. 2,500), all of which have traditional downtown business districts. Its purpose is to establish a regional approach to economic development and revitalization focused on commercial opportuni- ties and growth in tourism; to help these small towns breathe (Continued on page 2) Amenities Park and recreational amenities will complement new office, retail, residential In downtown Gilbert, AZ (pop. 109,700), development of new public parks is dovetailing with two private-sector develop- ments to create office space, restaurants, and live-work lofts that are all closely integrated with the parks and recreational amenities. Key downtown improvements under way are the redevelopment of an underused public works area as a downtown park, developing a new park, integrating a new mixed use complex, and renovation of an historic marketplace. Most creatively, the downtown currently has an historic water tower that was recently repainted as a distinct landmark, albeit one that sits on an empty plot of land. To put the land to better use, the town's redevelopment commission worked with Decision Theater at Arizona State University to deter- (Continued on page 5) Growth brings its own challenges Strong growth in Steam- boat Springs, CO (pop. 9,815), has led to higher property taxes. And that may slow future growth, according to real estate developer Jim Cook. Cook, who is involved in several mixed-use projects in the downtown, told the Steamboat Pilot that property tax increases will make it more difficult to continue revitalizing downtown because those taxes are typically passed on to commercial tenants through common area and mainte- nance charges. Although homeowners are also seeing taxes increase, the problem is exacerbated by the Colorado constitution, which places a high portion of the tax burden on commercial properties. Inside this issue How to handle taking out trash and recyclables without creat- ing eyesores? . . . . . . . . . . . . 4 The yin and ya'19 of balancing open and built space. . . . . . . . 6 Free toolkit helps downtowns review and revise regulations for smart growth. ......... 7 Create parking standards tailored to downtown's char- acteristics. . . . . . . . . . . . . . . . 8 @ 2008 Alexander Communications Group, Inc. All rights reserved. Please start/renew my one-year subscription to Downtown Idea Exchange for $227.* NAME TITLE FIRM/ORGANIZATION ADDRESS CITY ZIP STATE PHONE FAX EMAIL ~ MAIL: 712 Main Street - Suite 1876 Boonton, NJ 07005.1450 QI FAX: (973) 402-6056 if PHONE: (973) 265-2300 @ EMAIL: info@DowntownDevelopment.com . North America, $227, Elsewhere, $257 Qncludes airmail delivery). N15 Regional revitalization a good strategy for small, closely aligned downtowns - continued from page 1 renewed economic life into their business districts, and to preserve and enhance the industrial and cultural heritage they share. To pursue these opportunities, the four municipalities joined with the Delaware & Lehigh Her- itage Corridor Inc., in the spring of 2006, and produced scope of work and work plans, which would inform a strategic plan. Since September 2006, staff of the Delaware & Lehigh Nation- al Heritage Corridor and the con- sulting firm Keystone Heritage Group have worked with the four municipalities to develop this strategic plan. This effort has included town meetings and site visits within each municipality, meetings with various stakehold- ers, and regular monthly meetings of the Landmark Towns of Bucks County Steering Committee. The four downtowns were recently awarded the Common- wealth's support for funding a regional "Main Street" coordinator for five years, through the state's New Communities Program. Elements of the regional plan The strategic plan has six ele- ments, which form the framework of the envisioned regional initia- tive. These include: · Identification and agree- ment on the unifying themes of the initiative. · Establishment and agree- ment on a regional coordinating structure. · Identification of the shared regional challenges and opportunities. · An assessment of com- munity-specific challenges and opportunities. · Identification of regional support and financial resources. · The role of the regional coordinator. Unifying themes: natural, architectural, historic Of the unifying themes that bind these towns together, the two greatest are the Delaware River and the Delaware Canal, which attract hundreds of thousands of visitors each year. The common geographic, historic, and cultural heritage of the four Landmark Towns has also enabled them to identify four unique and shared characteristics on which to build a regional coor- dinated effort: · They share an abundance of unique colonial and pre-colonial historic structures. · They share features like river and canal walks, theater, superior restaurants, night life, and a variety of festivals. · The four downtowns all offer a shopping experience that's safe, accessible, relaxed, varied, and leisurely, in contrast to mall shopping. · Both the Washington Cross- ing Park and Pennsbury Manor, William Penn's first home in the New World, are along the corri- dor of the four boroughs and are historic landmarks that can be incorporated into the downtown tourism experience. 2 Downtown Idea Exchange . www.DowntownDevelopment.com March 1, 2008 . \ I 1 1 1 l 1 i I . . J . Establishing a regional coordinating structure Over the past year, the success of the former steering committee (now a board of directors) has provided a framework on which to build a more permanent manage- ment structure for the Landmark Towns initiative. As envisioned, the governing mechanism for the Regional Coor- dinators Program will be a 16- member Landmark Towns board of directors, composed of four representatives from each town, to include: a local elected official; a local appointed official; a local civic leader; and a local merchant or business property owner. A five-member executive com- mittee with one representative from each town and a designee of the Delaware & Lehigh Heritage Corridor will be established to manage the day to day operations of the Landmark Towns initiative, in cooperation with the regional coordinator. . . Meeting regional and individual challenges and opportunities A number of core challenges and opportunities present in each of the downtowns was identified and will form the basis of the work undertaken by the regional coordi- nator. These included: · Improving the ease of park- ing in closer proximity to commer- cial centers. · Improving access to and use of the river and canal for both active and passive recreation. · Developing unique products that will be marketed and sold through the Landmark Towns ini- tiative as a long-term source of funding for the regional effort. · Introducing theater, dining, March 1, 2008 and tour packages to help market and 'brand' the towns. · Pursuing initiatives designed to increase lodging accommoda- tions within the Landmark towns. · Pursuing initiatives to utilize regional transit access to two of the downtowns, to incorporate a sched- uled shuttle transit system between the four towns to transport both workers and visitors along the Landmark Towns corridor. · Maintaining, preserving, and restoring attractive and inviting gateways that help set the tone for the visitor experience. · Inaugurating a comprehensive and coordinated highway and pedestrian signage program on access roads, along the Landmark towns route, the canal, and streets of the Landmark towns. Community-specific chal- lenges and opportunities were also identified. While these will not immediately be the responsibility of the regional coordinator, eventu- ally doing so will substantially strengthen the regional effort as well as the individual downtowns. Downtowns will gain much by planning and working together "I think the more the communi- ties have in common, the better suited they are to working togeth- er," says Elissa Marsden Thome, vice president, Heritage Program, Delaware & Lehigh National Her- itage Corridor. One of the key benefits of regional downtown revival efforts is the increased visibility it brings with developers and business entrepre- neurs as well as leverage to bring public-sector partners to the table. "Not only have we brought them to the table, but they have signed and passed an intergovernmental agree- ment stating that they will work together toward our revitalization plan, and they're contributing finan- cially to the project," she says. John Burke, borough manager of New Hope, believes working together in regional programs like this is the shape of things to come for smaller downtowns. "It's inter- esting, New Hope attempted to establish a Main Street manage- ment program back in 2000 or 200 1, and the business community attacked the idea and it was not pursued because of very active opposition. There's been absolutely no opposition in the community to the regional program," he remarks. He expects better coordination through this program with the New Hope business community and chamber of commerce, "and that we'll be able to work with them to better improve and revitalize the business district." "Our borough governments don't have in-house the resources and expertise to do all these down- town revitalization tasks that are essential. So participating in this program gives us those resources," says Jane Burger, council member of Morrisville. At this point in time, it would be hard to come up with the local match needed to fund a downtown Morrisville Main Street or Elm Street program, she says. But "working with those other munici- palities breaks down our isolation so we can work on common needs together. It's defmitely a win-win situation for all of us." Contact: Elissa Marsden Thome, Delaware & Lehigh National Heritage Corridor, elissa@delawareandlehigh. org; John Burke, Borough of New Hope, newhopeborough@comcast.net; Jane Burger, Borough of Morrisville, jab- burg@voicenet.com. . Downtown Idea Exchange . www.DowntownDevelopment.com 3 Businesses must contribute to collection costs For helpful suggestions, Down- town Idea Exchange turned to an expert on this issue, Blair Pollock, solid waste planner, Orange Coun- ty Solid Waste Management De- partment in North Carolina. As of January 1, any business in that state that sells alcoholic beverages for on-premises consumption must have a recycling program. "Our county provides recy- cling services to many of the bars and restaurants throughout the county, including downtown, and the service is currently at a very low direct cost to them ($37/year), . the majority of costs being covered by the broader recycling fee. That is one problem that the bar and restaurant owners often don't want to face up to, that there is a cost to recycle that in most cases they must bear," he says. But there is an upside in that more recycling means less trash. "The corollary solution to that is the more that is recycled, the less waste there is. Therefore, theoreti- cally it should cost the town less to collect waste and the businesses should negotiate for those lower costs to partly cover their costs of recycling," he says. Clean and Safe How to handle taking out trash and recyclables without creating eyesores? Recently, a small college town of 13,000 people contacted us for ideas about how to alleviate trash collection woes on their down- town's main street. College Avenue, the town's main business and entertainment district, is a two-lane road lined with parallel and horizontal park- ing. The businesses along it are primarily retail, restaurants, and bars. The sidewalks in front of these stores are lined with trees, brick pavers, planters, and decora- tive lights. Overall, College Avenue is an attractive street. But, it is limited in that there is little or no rear access to any of the businesses. Currently trash carts are rolled out in front of stores on pick up days. limited back street access creates challenges The town has several issues stemming from what we'll call its root problem in the trash area, lim- ited back alley access: · Some businesses have as many as 10 carts that need to be emptied more frequently than usual. · Many of the businesses are restaurants and bars with recy- clable trash. Typically they find it too hard to recycle because they have no place to put the recy- clables, and end up just combining it all in one cart. · The aesthetic issue of having trash carts outside storefronts is problematic. · The town sees the need for trash to be picked up more fre- quently, but finds it logistically difficult to do that. . . 4 Downtown Idea Exchange . www.DowntownDevelopment.com March 1, 2008 . Consider having businesses share collection sites Logistical approaches that down- towns should also consider include having smaller restaurants and bars share a container site with their neighbors or use a collective site. In downtown Chapel Hill, NC (pop. 48,720), and Carrboro, NC (pop. 16,780), "Some sites serve five or six businesses. A few are on our curbside recycling programs. Collective sites have, of course, a 'blame' problem. When things go wrong, everyone says 'It's the other guy,' or 'It's the derelicts who go back there and who suck the dregs from each bottle and leave them outside the carts when they're done drinking,' or 'It's those pesky stu- dents walking by and messing it up on their way home.''' . Each downtown must find its best answer "A variety of solutions present themselves. There is no one solu- tion for all sites or all problems," Pollock says. For example, Athens, GA (pop. 100,300), picks up multi- ple times a day downtown. Raleigh, NC (pop. 276,100), uses a city- owned rear packer truck and com- mingles all recyclables and goes directly to a sorting facility where they may pay to dump or just get very little revenue. In contrast to Raleigh, Orange County Solid Waste Management Department picks up once or twice per week and is able to sell its source-separated material and have much less contamination. I . D Web Extras ~ Visit www.Downtown- Development.com to see a letter that the Orange County Solid Waste Management Department uses to reinforce its service relationships with recycling program participants. "But it's far more labor-inten- sive and we give a lot of intensive feedback to the site users when there are problems," he says. "Our drivers (some are bilingual) are trained to provide feedback directly to restaurant staff and to their supervisors when there are problems. Then our education and outreach staff goes to work identifying the problem and responding. "I'd recommend one recycling hauler for a single downtown area, either under contract, franchise, or the public entity itself, in order to minimize traffic, maximize site knowledge and customer friendli- ness, and develop relationships with the businesses." Contact: Blair Pollock, Orange County Solid Waste Management Department, (919) 968-2800, ext. 161, bpollock@co. orange.nc.us. . Park and recreational amenities will complement new office, retail, residential - continued from page 1 mine how to create a community park and gathering place under- neath the water tower. Virtual reality renderings help settle community park plans The Decision Theater team con- structed renderings of concepts for the water tower park in 3D virtual reality, based on guidance from the redevelopment commission. "Basically, they digitized the downtown area," says Greg Tuque, Gilbert's director of development ser- vices and staff liaison to the redevel- opment commission. "They took that and worked with our design so we could walk through it as if we were walking through the park itself." This enabled a collaborative discussion of how the park would best benefit the community and be an asset to neigh- boring businesses and residences, and sold the redevelopment commis- sion and other boards on moving forward with the project. "You could go into their 270- degree theater, put on 3D goggles, and it really gives you a good hands- on feel," he says. "We even did a night setting where we could look at lighting and see how it would look at night as you walked through vari- ous parts of the park." The resulting plan for the community park is attractive to surrounding businesses and suitable for public events. The park is slated to open in October, and will feature a small amphithe- ater for performances. The Decision Theater park visioning was so successful that the town will use a similar process to determine what to do with other March 1, 2008 Downtown Idea Exchange . www.DowntownDevelopment.com 5 vacant areas in the same vicinity, and evaluate various scenarios of building heights and uses, and impacts on parking and shade patterns. Office users will feed street life, restaurants, and retail Planned for an intersection about a block and half away from the park, Gilbert's redevelopment commission recently approved a design for Heritage Marketplace, a mixed-use project proposed on land that the town owned and sold with a development agreement in response to an RFP. Heritage Marketplace is envi- sioned as a 60,000- to 90,000-sq.-ft. complex that would be anchored at the corner by a three-story signature building containing office space, retail, and restaurants, and a two- story building featuring specialty retail, restaurants, and offices. "A major component of that [complex] is going to be office, because we really think: the next step downtown is to have employment to feed the restaurants for lunch, retail, and all those things:' says Tilque. According to the development agreement, Heritage Marketplace must contain at least two 2,000-sq.- ft. restaurants. Three additional buildings will contain live-work lofts. Most of the complex's spaces will be built in shell form, leaving tenants to finish them. This devel- opment will also contain a 350- space parking garage being built by the city. Upwards of 250 spaces will be reserved for tenants during weekday business hours, but open to all on weekends. Linear park to link marketplace with water tower park Along the path of a covered canal, the town is developing a linear park that will back up to Heritage 6 Marketplace and incorporate water fountains and areas for sitting and relaxing along its path. "The idea is that there can be some [physical] connection from that park through Heritage Marketplace, and then over to the water tower, because we want to keep recreational amenities a big focus downtown," Tuque says. If Heritage Marketplace is built and leased according to plan, one of its buildings will contain a patio opening up to the linear park. Both this linear park and the water tower park should be completed by year's end. "It's not just a pathway; it's a very nice open space," Tilque says. Another renovation preserves downtown heritage amenity Another key mixed-use project underway is the renovation of Lib- erty Market, a marketplace built in 1935. Renovation of this facility is being led by the owner of a wildly successful barbecue restaurant downtown, who is seeking to pro- tect his investment in the 10-year- old restaurant by preserving the heritage of the immediate vicinity. The updated and renovated market will for the first time fea- ture a restaurant open for three meals per day, and cafe seating along the sidewalk. . Invest time in planning to do amenities right "A lot of good things down- town will coalesce by October or November of this year," Tilque says, referring to the two parks and the renovated Liberty Market's reopening. The new Heritage Mar- ketplace should be several months into construction by then as well. To build momentum through the development of new amenities like parks, downtowns must "do some real solid planning to look for what's going to happen in the future," he says. "Plan for the area. Don't just put in a park and design later. Design the park around the uses that are going to be down there. Use forward thinking to project what the market's going to be down there, as far as residential, retail, and so on. We've taken our time with these projects to do them right." Contact: Greg TIlque, Town of Gilbert, gregt@ci.gilbert.az.us. . . ~ j . Downtown Idea Exchange . www.DowntownDevelopment.com March 1, 2008 . Planning Free toolkit helps downtowns review and revise regulations for smart growth . The Smart Growth Implemen- tation Toolkit, available free for download at www.smartgrowth- toolkit.net, is designed to encour- age development that creates safer, healthier, more livable districts. The Toolkit helps community leaders review and revise their land use policies, zoning and development codes and project design standards. It includes step- by-step "audits" of policies and codes, as well as a scorecard for evaluating proposed development projects. Downtowns can use these tools to evaluate what zoning, codes, and land use policies actually say about things like: the width of streets, building setbacks, how buildings are supposed to address the streets, the speed design of streets, and the locations of schools. In working with communities trying to implement smart growth, "what we realized is that a lot of communities come up with, either from charettes or shared communi- ty vision processes, very beautiful visions of what they want their downtown to be, if they're diligent enough about it and get it in to their policies or general statements in their land use plan. "But what we found is, there's usually a disconnect between the very general statements of land use policy, where they say they want smart growth and a walkable com- munity, and the nuts and bolts of their regulatory framework," says Benjamin de la Pena, associate director, Smart Growth Leadership Institute (SGLI), a project of Smart Growth America. . "This is a set of tools that basi- cally helps communities look at their regulatory frameworks, to see how it meets up or aligns behind their smart growth principals." Two audits and a project scorecard are key tools A Quick Diagnostic tool is provided, but the nitty-gritty smart growth implementation tools are a 43-page Policy Audit and a 54- page Code and Zoning Audit. "These are wonky tools. It's not something you can do in just a weekend," de la Pena says. "But you can use the tools to really take a fme-tooth comb to what your regulations say." Another implementation tool is the 57-page Project Scorecard, which provides a way for commu- nities to rate proposed projects and rank them against smart growth principles. "With the Project Scorecard, downtowns can look at projects that are being proposed for down- town, to see whether these projects wi111ead to more walkable and more livable districts, with more housing and transportation op- tions," he says. Another tool is the 30-page Strategy Builder, which helps downtowns understand how to move their process forward and build buy-in. "The Strategy Builder asks you to look at the issues your downtown is facing, how they relate and what you've done to relate them to smart growth. It looks at who's leading the charge, and where are you missing pieces," he says. Taking the first steps to overhauling outdated plans The toolkit's techniques include very practical approaches that will reverse current unsustainable devel- opment practices. "Getting there from where we are today can look like an over- whelming task because it asks com- munity leaders to level the playing field and to overhaul outdated plans," says Tamar Shapiro, execu- tive director of SGLI. "The good news is there is a large unmet mar- ket demand for smart growth and communities can leverage that demand by simply removing some of the barriers to more walkable, mixed-use development" Make good development the rule, not exception "What's happened in many com- munities is that the good projects that come through are exceptional exceptions," de la Pena says. "The community moves forward, but does so by getting projects done through exemptions or variances or working around what is already in their code. "What these tools will do, if towns using them will audit their regulatory framework and find the political will to move, will make smart growth, toward walkable, liv- able, and energy-saving downtowns, become the as-of-right development. What this does is it makes smart growth for downtowns the default, and as competitive as building on greenfields." The U.S. Environmental Pro- tection Agency funded the develop- ment of the tools through a four-year grant, which allowed SGLI to test the tools in the field while providing technical assistance to communities. Contact: Benjamin de la Pena, Smart Growth Leadership Institute, (202) 207- 3355, ext. 26, bdelapena@sgli.org. www.sgli.org. . March 1, 2008 Downtown Idea Exchange . www.DowntownDevelopment.com 7 Idea . .Hxchange Town looks to past in creating future Leaders in Alton, NH (pop. 4,500), decided to remake their downtown by celebrating the past. The railroad played an important role in the growth of the town, and efforts have centered around the creation of the Alton B & M Rail- road Park, which entails refurbish- ing old railroad buildings and a caboose. Early on in the project, voters approved $5,000 of seed money. Part of that money was used for a public roundtable dis- cussion and architect's plans, with remaining funds being applied to grant applications and expenses for a brochure about the project. The brochure, which was sent to all Alton property owners and distrib- uted in the town newspaper, helped bring in several donations for the project. Failed business incubator to return to retail space In 2006, the Nucleus Retail Incubator replaced a vacated Osco Drug store in downtown Cedar Rapids, IA (pop. 120,800). Unfor- tunately, several factors led to the business incubator's failure. For starters, many downtown cus- tomers were simply unaware of the new businesses, and many shop- pers felt the chain link fence sepa- rating the shops detracted from the experience. In addition, the non- profit board managing the incuba- tor was dissolved last summer. Among the reasons cited were the loss of an executive director and the need for a federal grant. New plans call for turning the incubator back into a drug and variety store; Downtown Drugs, one of the. cur- rent tenants, plans to expand its operations. Tax increase not part of revitalization plans New city manager Jim Palenick has outlined an extensive downtown redevelopment proposal for Gastonia, NC (pop. 66,280). The plans include a new down- town parking deck, and hotel and conference center. It's the latest plan to revitalize the city center, but there's something different this time around - it includes a detailed budget with no plans for tax increases to pay for the efforts. Palenick is looking to recruit a national chain for the hotel and convention center because he wants a business that has the fman- ciaI resources to succeed. "It's been very hard on the local guy who has just enough capital to . make it to his first crisis, then go out of business," he told the Char- lotte Observer. "Then people say, 'Look, you can't do it downtown, it can't be done.'" Don't let administrative costs overwhelm the budget The Greenville, Oll (pop. 13,295), downtown association's annual report lists several accom- plishments for 2007, such as implementing an Adopt A Box pro- gram to encourage beautification and expanding use of the "Experi- ence Downtown Temptation" slo- gan. The report also breaks down the organization's finances for the year. Administration accounted for . nearly half (46 percent) of the expenses, or $31,371 out of the total $68,008. With administrative costs taking such a large slice of the pie, keeping those costs under control is key to achieving more downtown. . . 8 Downtown Idea Exchange . www.DowntownDevelopment.com March 1, 2008 . Technology Greener technology can improve downtown's bottom line and safety ;. A program of the Toronto Association of Business Improve- ment Areas known as greenTbiz provides energy efficiency, con- servation and environmental assistance to the 62 business improvement areas (BIAs) in Toronto and to their individual business and property owners. It's a timely program that can serve as a model for downtowns everywhere. "What we did in Toronto is we took a program that is already existing, the facade improvement program, where the municipality will give up to 50 percent for the improvement of an individual property frontage, and we said, 'Let's green the facade. While they're cutting into the windows and walls, let's see what they can do,'" says Brian Owen, program advisor for greenTbiz. The idea was that, in addition to restoring the appearance of downtown, its facade improve- ment program could be used to incentivize retrofitting an older (Continued on page 3) Walking & Recreation How can downtown make its streets safe, attractive and accessible for all? (. Are your downtown's streets underserving important users such as pedestrians and bicyclists? The Complete Streets approach seeks to make downtown streets accessible, safe, and pleasant for all users - pedestrians, bicyclists, motorists, and transit riders of all ages and abilities. "Complete Streets policies are about changing the transportation design process so that all of the users of the right of way are consid- ered, and are part of the planning from the get-go. It's about making routine the inclusion of everybody who's using the road in the plan- ning process, so that [inclusive street design] doesn't have to be a great big deal;' says Barbara McCann, coordinator of the Nation- al Complete Streets Coalition. "The advantage of changing transportation procedures in this way is that, as the people who are (Continued on page 5) Intervention teams address bad behavior The U.K. county of Surrey created Surrey Together teams, which work with young people to stop antisocial behavior before it gets out of control. The teams address youths' concerns and offer them advice about ways to spend their time. Traveling in distinc- tive yellow-and-blue vans bearing the Surrey Together logo, the teams provide visible reassurance and advice to all members of the community. The vans have plasma- screen lVs to show kids safety and crime awareness videos. And downtown businesses are encouraged to reduce under- age sales of alcohol, spray paints, and other age-restrict- ed products. Inside this issue Perspectives: Downtown is already green if it's keeping old buildings in good use. . . 2 Downtown fully outfits itself with LED street lights. ..... 4 Pedestrian flags help get walkers safely across. ..... 5 Two city and two state paths . to Complete Streets . . . . . . . 6 . Revive one side first. ...... 7 @ 2008 Alexander Communications Group, Inc. All rights reserved. Please start/renew my one-year subscription to Downtown Idea Exchange for $227.* NAME TITLE FIRM/ORGANIZATION ADDRESS CITY STATE ZIP PHONE FAX EMAIL N15 ,.g!) MAIL: 712 Main Street - Suite 187B Boonton, NJ 07005-1450 L;;I FAX: (973) 402-6056 . PHONE: (973) 265-2300 @ EMAIL: info@l)owntownOevelopmenlc;om . North America. $227, Elsewhere. $257 (includes airmail delivery). Perspectives Green buildings or sustainable development? By Donovan D. Rypkema With increasing public aware- ness and concern for such environ- mental issues as global warming and fossil fuel depletion, there is a worldwide push for sustainable development. In the United States that effort is primarily manifested in the so-called green building movement. Towns and cities of every size are rushing to adopt green building standards and LEED (Leadership in Energy and Environmental Design) certifica- tion requirements for new build- ings and the rehabilitation of existing buildings. Downtown managers, building owners, and advocates are strug- gling to learn what green buildings are, how to get LEED certified, and the role of downtown in an effective overall strategy. So perhaps it makes sense to step back and understand what sustainable development means, and how downtowns are already making a significant contribution to it, even if there isn't a single green building in town. Sustainable development is defmed as: The ability to meet our own needs without prejudicing the ability of future generations to meet their own needs. Certainly those needs include clean air, clean water and polar ice caps still in place. But they also include jobs, human interaction, culture, and a quality of place to live and work. Those are the things that downtown advocates are working daily to provide the peo- ple of their communities. . While the EPA, the Green Building Council, and environ- mental activists have the myopic view that sustainable development and green buildings are one and the same, they are not. The broader understanding of sustainable development recognizes three components - environmental responsibility, economic respon- sibility, and social/cultural responsibility. Of particular concern for downtown proponents is the nexus among those three responsibilities. For a community to be viable there needs to be a link between environ- mental responsibility and economic responsibility; for a community to be livable there needs to be a link between environmental responsibil- ity and social responsibility; and for a community to be equitable there needs to be a link between economic responsibility and social responsibility. One way of describing the job of a downtown organization is to make the center of the city the place that allows the community to be viable, livable, and equitable. Downtown is already the pri- mary contributor to sustainable development in nearly every com- munity. First from an environmen- tal perspective is embodied energy. Embodied energy is the total expenditure of energy involved in the creation of the building and its constituent materials. Green building advocates obsess about the annual energy use of buildings, but the energy embod- ied in the buildings currently stand- ing in downtown is fifteen to thirty . . 2 Downtown Idea Exchange . www.DowntownDevelopment.com March 15, 2008 I r I. , I t . . times the annual energy usage. If you have a building that lasts 100 years, you could use 25 percent more energy every year and still have less lifetime energy use than a building that lasts 40 years. And a whole lot of buildings being built today won't last even 40 years. Most downtown advocates today understand the importance of retaining their historic building stock. Razing historic buildings results in a triple hit on scarce resources. First, it means throwing away thousands of dollars of embodied energy. Second, we are replacing it with materials vastly more consumptive of energy in their manufacture. Third, recurring embodied energy savings increase dramatically as a building's life stretches over 50 years. You're a fool or a fraud if you say you are an environmentally conscious builder and yet are throwing away historic buildings, and their components. We all diligently recycle our Coke cans. It's a pain in the neck, but we do it because we are told that it is good for the environment. But tear down one small two-story commercial building downtown - 25 feet wide and 120 feet deep- and you wipe out the entire envi- ronmental benefit from the last 1,344,000 aluminum cans that were recycled. Good downtowns of every size are multifunctional places where people work, shop, live, and play. That interconnection of activities not only represents environmental responsibility - fewer miles dri- ven by fewer cars - but also both economic and social responsibility. No "green building" does that. It is on the streets and side- walks of downtown that citizens meet to interact, to celebrate, to mourn and to protest. That is exer- cising the cultural responsibility of sustainable development. No "green building" does that. Certainly we need to worry about climate change and alterna- tive energy sources. We need to exercise environmental responsibili- ty. But just like going to the dentist is not all there is to health care, nei- ther are green buildings all there is to sustainable development. Every week that downtowns are active, vibrant, and prosperous they contribute a thousand fold more to sustainable development than all the green buildings in North America. Donovan Rypkema is princi- pal of PlaceEconomics, a Wash- ington, DC-based economic development consulting firm. Contact him at DRypkema@ PlaceEconomics.com. . Greener technology can improve down- town's bottom line, safety - continued from page 1 building with Energy Star win- dows and doors, LED lighting and window displays, LED signage, and insulation. "If you're going to renovate anyway, let's help you fmd the best products possible while you're doing it, that'll make not only the front of the building look good, but make it more energy efficient. The municipality has adopted those as includable expenses. If it has anything to do with the facade, it's an allowable expense," he says. Thinking green saves another kind of green The greenTbiz tagline, "think- ing green & saving green," re- minds downtown areas and their individual businesses that they are doing themselves good by making energy-saving investments. "We not only believe that it makes environmental sense, it makes economic sense," Owen says. "You can talk to people about energy efficiency and conservation all you want, but you also have to show them how to overcome the costs, or show them the business case. That's what greenTbiz is suc- cessful at, because we know we're working amongst business people. "We're not coming to them as Birkenstock-wearing, granola-eat- ing, tree-hugging activists, telling them 'You should, you should, you should.' Rather, 'Here's what you can do. Here's how you can do it. And here's how it's going to better your bottom line and ease your cash flow. At the same time, you can go home tonight and sleep bet- ter because you've done something good for the environment.''' Many appreciate greening measures Other advantages of imple- menting energy-efficient technolo- gies downtown are in creating a more comfortable environment for downtown users, and enhancing their perception of downtown. Those benefits can translate to the bottom line, especially among green-thinking shoppers. For example, the Bloor West Village BIA in Toronto drew a lot of visitors to see its LED holiday lighting displays, powered by solar panels affixed to streetlight poles. GreenTbiz has also had an exchange program since 2004, March 15, 2008 Downtown Idea Exchange . www.DowntownDevelopment.com 3 the philosophy of what a BIA or BID should do, and that is pro- mote and beautify," he says. where people are invited to come to the BIAs, bring their old incan- descent holiday lights, and get a brand-new set of LED holiday lights through a partnership with Toronto Hydro. In the case of pedestrian light- ing, the white light emitted by LED bulbs makes the area look cleaner, safer, and more beautiful, Owen says. As a result, BIAs that have con- verted their lighting to LED technolo- LED technology shines in a Toronto BIA, gy have seen increased pedestrian traffic flow. "LED lighting is very compli- mentary to safety and security, as well as perceptions in a downtown. . .. All of these efforts tie back to Smaller downtown looks to retrofit ped lamps Smaller downtowns that are taking pioneering steps to convert their pedestrian lighting to LED techno- logy include Ann Arbor, MI (pop. 114,000, see box, be- low), and WeIland, Ontario (pop. 50,330). Based on its suc- cess in retrofitting or removing about 47 street lamps with 150- watt, high-pressure sodium bulbs along a segment of roadway and replacing them with LED lights, WeIland is looking at incorporat- ing LED lighting in pedestrian street lamp retrofits, as part of a downtown infrastructure improve- ment program now under way. "We're redesigning our down- town with bulb-out streetscaping to create a more pedestrian-friendly area, and we have submitted a grant application through the Province of Ontario, and have included converting our existing decorative streetlights to LED, sim- ilar to the Ann Arbor project," says David Ferguson, the manager of Traffic & Parking Operations for the city. "We'll find out hopefully by March 31 whether or not we get the funding for it, and if so, we'll begin probably immediately." For pedestrian street lamps, Owen estimates the difference in illumination time increases from 22,000 hours to between 50,000 and 100,000 hours. In the long run, . . . 4 Downtown Idea Exchange . www.DowntownDevelopment.com March 15, 2008 , -----.-- - - - I r this will save on power, relamping, How can downtown make its streets bulbs, and most importantly labor safe, attractive, and accessible for all? . costs. - continued from page 1 Kirkland's city council. After Energy providers are ideal interested in downtown revitaliza- approaching the council with an partners in green programs tion are doing their jobs, they are ordinance idea, the Cascade Bicy- The greenTbiz program is more likely to have either (a) a de Club worked with the city's replicable, Owen stresses, and streetscape that's already working Transportation Commission on its could be done elsewhere through for all the different users, or (b) language. The ordinance passed seminars, literature, or in a hands- have department of transportation unanimously. on format. Local electric and utili- allies who are on board with creat- Passage of a Complete Streets ty companies are ideal partners, ing the type of vibrant, multi-modal ordinance "tends to happen most and he recommends working with streetscapes they're interested in." often in communities where there's them. already somewhat of a commitment For example, greenTbiz is Ordinance codifies commitment to accommodating non-motorized funded by the Toronto Atmospher- to alternative transportation transportation. In a sense, the pas- ic Fund and the Ontario Power The outdoors sports and recre- sage of the ordinance itself is more ~ Authority, Ministry of Energy, and ation-oriented Pacific Northwest or less a codification of existing Ministry of the Environment. "We has led the way in this movement. practices," says Patrick McGrath, worked with a number of utilities In Oregon, home of athletic shoe organizer, Cascade Bicycle Club. in the U.S. that have seen the pro- manufacturer Nike, a 1971 law "What having that in law does I gram. We're just in the discussion requiring sidewalks and bike paths is it avoids a pattern that has hap- stage with Con Ed and PG&E. on most of the state's roads is con- pened across the country. That is They're very excited about it." sidered the first major move That's because energy conser- toward Complete Streets. And "U . :7 vation programs are usually rolled sa. recently in Kirkland, WA (pop. ~ 0 out at a consumer or industrial 45,050), the Cascade Bicycle g; CD level, he says. Working with c: Club worked with the city coun- a groups providing technical assis- S cil to advance a Complete tance to downtowns would give Streets municipal ordinance, the energy companies a feasible the first in Washington State. way to conduct such programs Through its advocacy work with small and medium-sized and surveys, the bike club found businesses. willing partners for seeding Downtown Santa Barbara, CA shows what Contact: Brian Owen, greenTbiz, (905) Complete Streets policy on Complete Streets look like. 528-5089, Brian@greentbiz.org, www.greentbiz.org; David Ferguson, Traffic & Parking Operations, Corpora- tion of the City of Wetland, (905) 735- 1700, ext. 2202, david.ferguson@ wetland.ca, www.wetland.ca. . . o Web Extras ~ Visit www.Downtown- Development.com and click Web Extras to download Ann Arbor's LED Streetlight Program summary and a white paper on LED tech- nology applications prepared by greenTbiz. March 15, 2008 Downtown Idea Exchange. www.DowntownDevelopment.com 5 \ where you have project managers who basically rule out pedestrian or bicycle accommodations in early stages of a project, based on the need to satisfy their models, which show the need for ever-more capacity. An ordinance like Kirk- land's "still enables communities to forego those kinds of accommo- dations should they choose to. But it elevates that decision to a senior level," such as a public works director or a director of transporta- tion, to make the best call for the given situation. Various outs keep law from being onerous If municipalities that have a Complete Streets ordinance ever neglect the needs of pedestrians, bicyclists, and transit users, "it gives advocates a recourse to chal- lenge that practice - to say, 'This is a law and what you need to be doing. If you're not going to do it, then at least you need to explain why,'" McGrath says. Kirkland's ordinance is open- ended in the sense that it does not prescribe specific treatments. It's left up to the city to decide how to accommodate people. "It's not like, 'All streets must have bicycle lanes,' because there are plenty that don't really need it. We viewed the ordinance as something that wasn't really that onerous," says David Godfrey, transportation engi- neer, City of Kirkland. Making accommodations for Complete Streets is not required in the following situations: D Web Extras ~ To view Kirkland's Com- plete Streets ordinance, visit www.DowntownDevelopment.com and click on Documents Plus. 6 · Where their establishment would be contrary to public safety. · Where the costs would be excessively disproportionate. · Where there's no identified need. · Where their establishment would violate comprehensive plan policy. · Documented exceptions granted by the public works director. "For our community, that wasn't very hard to swallow. Our council was pre-disposed to do something like this, and I think we all felt that this is in keeping with what we want to do, what we should do, and what we're already doing," says Godfrey. "In the past, we referred to a , I j e l . , I J non-motorized transportation plan. It shows priority-one and priority-two routes. People would say, 'If it's not a priority-one street, we don't need to worry about bicycle lanes,' for example. But the spirit of this is, 'We should think about them every- where. That's more the approach we're taking now as we're work- ing on an update to that plan." Fewer cars, more people on foot is good for downtown "It's extremely cost-effective to build in accommodations for cyclists, walkers, and everybody else at the time of construction, and that's the real power of Com- plete Streets," McGrath says. "Instead of disruptively retro- fitting streets, you can build in (e Downtown Idea Exchange . www.DowntownDevelopment.com March 15, 2008 , I . a bike lane, or build in a good sidewalk for pennies on the dollar at the time of construction, and make it comfortable and conve- nient for people to get around that way. "Por downtowns specifically, you'll see more foot traffic, more security through eyes on the street, increased retail sales, and a more attractive area. All this happens when you get people out there using the streets instead of just buzzing through it in a sealed com- partment." "Downtown associations should see Complete Streets policies as an important ingredient of making their entire downtown structure, and the roads leading to downtown, work for everybody," McCann says. "That is going to help meet the economic revitalization and other goals that they've set for themselves." Contact: David Godfrey, City of Kirk- land, (425) 587-3865, dgodfrey@ci. kirkland. wa. us, www.ci.kirkland.wa.us; Patrick McGrath, Cascade Bicycle Club, (206) 957-0689, p.mcgrath@cas- cadebicycleclub.org, www.cascade.org, National Complete Streets Coalition, info@completestreets.org, www. completestreets.org. . Revitalization Projects Downtown must revive one side first ~ . Rock Springs, WY (pop. 18,710), has a burgeoning popula- tion of workers and their families that are moving in wherever they can because of the booming oil and gas industry and good wages. But downtown is rundown, and needs to revitalize to capture leisure time and dollars from this growing market. "You have a growing population of people who are making fairly decent money, and really no place for them to spend it other than a mall or a big box store. So we decided that the downtown needed to be developed even more for the people who live there than for any visitors that might come - know- ing full well that if we did that, it would serve both," says John Kelsh, a senior partner with consulting firm Destination Development. One of the challenges faced by downtown Rock Springs is that the Union Pacific Railroad goes right through it. This inspired a brand for the downtown known as Union Square, but also complicates revi- talization. The tracks present a psy- chological as well as physical barrier to people on foot. "Trains are going through there ~ , . . all the time, and it splits the down- town. In fact there was some ques- tion as to how we are going to handle this, because we've got two sides to the downtown," Kelsh says. "Our response was, 'You work towards. improving both of them, but you have to start with one side,' because the critical mass has to be developed within a pedestrian set- ting. You want a cheek-to-jowl series of shops, restaurants, and things that you're trying to develop, in order to develop the critical mass that will attract the residents and later visitors to come downtown." To develop Union Square as a gathering place or "third place" for the remotely located town, Destina- tion Development advised the city to soften the appearance of the downtown streetscape, and re-engi- neer its vehicular traffic for better circulation around business areas. "Then the most important part is to create the right mix of shops," Kelsh says. Services and conve- nience retail, he says, "need to be gathered together, or put up on the second stories, so that you free up enough of the [lIst-floor retail in order to allow the development of that critical mass of destination retail," in cool bars, restaurants, and shops. Meanwhile, Rock Springs is also seeking to build a citywide brand to attract BMX and off-road motorcycle racers, given its indoor and outdoor venues for these sports. No doubt, the new Union Square will also be attractive for bike racers and their families while they're in town for competitions. "The rule is, visitors do not want to go hanging out where the locals aren't hanging out," Kelsh says. "Besides, in the winter, while there are going to be some indoor sports, it's going to falloff a bit, and so you really need to have these shops propped up and supported by the locals year round to make it work." Lying in wait for revival across the tracks, ''there are some 'good bones' as well- an old hotel that could be refurbished in an historical manner, and some good shops." Contact: John Kelsh, Destination Devel- opment Inc., (206) 236-2305, jkelsh@ destinationdevelopment.com, www.desti- nationdevelopment.com. . D Web Extras ~ To view the 152-page action plan that Destination Devel- opment drafted for Rock Springs, visit www.DowntownDevelopment. com and click on Web Extras. March :15, 2008 Downtown Idea Exchange . www.DowntownDevelopment.com 7 Idea . nxchange Historic tour proves key source of customers How does a small town bring in enough foot traffic to support downtown businesses? Medora, ND (pop. 100), does it with the award-winning Footsteps Into Medora's Past program, which introduces visitors to Medora's her- itage through a free walking tour of the downtown area. The tour fea- tures short vignettes presented by 'Time Traveler' actors in period costume, a children's tour of an historic home, and a professional theater production, "Recollection of Murder and Mayhem in Medo- ra," which tells of a famous 1885 murder trial. Approximately 1,600 people a year take the tour. The tour is supported through grants from the North Dakota Humanities Council and the North Dakota Council on the Arts, annual funding from the Medora Heritage Commission, and Medora busi- nesses, which contribute between $1,200-$1,500 annually. Are pet rocks the next big fund-raiser? Big Goose Creek is one of the natural features that makes Sheri- dan, WY (pop. 15,800), special. The Downtown Sheridan Associa- tion (DSA) has been working to bring the creek and the streams that flow through Kendrick Park back to their natural state with boulders, natural vegetation, and pools for fish. In August, the DSA held its first fund-raiser for the project at the Flying H Polo Ranch. The polo match had 17 sponsors, and helped to raise $15,400 for the stream 8 project. The DSA is also raising money by selling small boulders for $50 or large boulders for $100. What are your goals? The Downtown Holyoke Busi- ness Association in Holyoke, MA (pop. 39,840), clearly outlines its mission and 23 steps it will take to meet that goal on its website. Nearly all of the action steps are applicable to any downtown. For example: · Identify and create a database of all downtown businesses using city business registration records, state incorporation records, tele- phone directories, and door-to-door canvassmg. · Work with area real estate agents to provide low-cost supple- mental online advertising for downtown properties for sale. · Launch an anti-littering cam- paign, "Don't Trash Holyoke," to be promoted by the mascot "Spike." . Solicit cosponsors to print T-shirts that feature Spike's caricature and say, "I'm with Spike," in both Eng- lish and Spanish. · Work with city officials to identify, photograph, describe, and ultimately sell and rehab the exten- sive inventory of abandoned and distressed downtown property. Downtown gets new signs Businesses in downtown Goli- ad, TX (pop. 1,980), began hanging new signs last year courtesy of the Goliad Heritage & Cultural Associ- ation. The 501(c)3 organization provided all the funding for the new signs to mark the entrances of busi- nesses in the downtown historic district of Goliad. The 48"x16", double-faced, hanging signs are made of 3/4" MDO sign board with vinyl lettering matching the font most used by the business. All signs are coated with UV absorber for color protection. . ~ ~ .l (. Downtown Idea Exchange . www.DowntownDevelopment.com March 15, 2008 . . . 2-8-3: CRITERIA ADOPTED: # Page 1 of 1 2-8-3: CRITERIA ADOPTED: This section has been affected by a recently passed ordinance, ORDINANCE NO. 008-578: Economic Development Authority.GQto new ordinance. The following criteria are hereby adopted: (A)Members; Officers: The authority shall consist of seven (7) members who shall choose from among themselves a chair, vice chair and a secretary. (B) Designated Seats: Two (2) seats shall be held by sitting members of the city council. The remaining seats shall be filled by citizens appointed by the mayor and approved by the city council. (C)Qualifications: Members shall be citizens of the United States and residents of the city. (D)Terms Of Office: The initial appointments of the members will be for one, two (2), three (3), four (4) and five (5) years respectively, and two (2) members will be appointed for six (6) year terms. Subsequent appointments to the five (5) seats filled by citizens will be for six (6) year terms. The term of the council members shall be concurrent with the council members' city council terms and shall expire at the same time as the members' council term of office. (E)Compensation: The authority shall establish the compensation to be paid members and the reimbursement for personal expenses within the limits prescribed in MSA 469.011. (F)Oath Of Office: Prior to assuming the duties to which first appointed, each member shall take an oath of office. (Ord. 005-541, 8-15-2005) http://66.113.195.234/MN/Farmington/05008000000003000.htm 3/24/2008 . . . ORDINANCE NO. 008-578: Economic Development Authority .. Page 1 of2 ORDINANCE NO. 008-578 Economic Development Authority Disclaimer: This is provided for informational purposes only. The formatting of this ordinance may vary from the official hard copy. In the case of any discrepancy between this ordinance and the official hard copy, the official hard copy will prevail. An Ordinance amending the membership of the Economic Development Authority THE CITY COUNCil OF THE CITY OF FARMINGTON HEREBY ORDAINS AS FOllOWS: SECTION I: Title 2, Chapter 8, Section 3 - Economic Development Authority - shall be amended by adding (underlined) and deleting (struel( ) as follows: 2-8-3: CRITERI.^, ,^.DOPTED GOVERNANCE PROVISIONS: The following eritcria provisions regarding governance of the authority are hereby adopted: (A) Members; Officers: The authority shall consist of five (5) Councilmembers who shall choose from among themselves a chair, vice chair and a !3CeFctary other officers as required bylaw. (B) Designated Seats: Twa (2) Five (5) seats shall be held by sitting members of the city council. (C) Qualifications: Members shall be citizens of the United States and residents of the city. (D) Terms Of Office: Tho iFlitial 819lgeiRtmoRt!3 of lAC momlaoFB '/Jill 60 fer eRe (1), m'a (2), tArco (2), feur (4) BAeI RVO (6) yoam fC!3J;}oetivoly, ami RoVO meFfl60m will 60 Bl9l9oiRtcel fer !3ix (8) yoar teFFFl3. The term of the Council members shall be concurrent with the Councilmembers' City Council terms and shall expire at the same time as the members' Council term of office. (E) Compensation: The authority shall establish the compensation to be paid members and the reimbursement for personal expenses within the limits prescribed in MSA 469.011. (F) Oath Of Office: Prior to assuming the duties to which first appointed, each member shall take an oath of office. (Ord. 099-438, 10-18-1999) SECTION II: After adoption, signing and attestation, this ordinance shall be published one time in the official publication of the City and shall be in effect on and after the day following such publication. CITY OF FARMINGTON Kevan A. Soderberg,Mayor http://66.l13.195.234/MN/Farmington/17000000000000578.htm 3/24/2008 ORDINANCE NO. 008-578: Economic Development Authority . . Attest: Peter J. Herlofsky, Jr., City Administrator . . SEAL Approved as to form the _19_ day of _February City Attorney Published in the Farmington Independent the _ day of http://66.113.195.234/MN/Farmington/17000000000000578.htm ,2008. Page 2 of2 ,2008. 3/24/2008