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Home My WebLink About07.28.08 EDA Packet - with notes ./ ti~ AGENDA ECONOMIC DEVELOPMENT AUTHORITY July 28, 2008 - 7:00 p.m. City Council Chambers. City Hall Members 1. Call Meeting to Order (7:00 n.m.) 2. Pledge of Allegianc.e 3. Approve Agenda Chair David Pritzlaff Vice Chair Christy Jo Fogarty Steve Wilson 4. Citizens CommentslPresentations 5. Consent Agenda (see attached) rV a. June 23, 2008 EDA Meeting Minutes . L b. May & June Bills .l,.i(1t"t(' c. June Budget Details ~~ . 6. Public Hearings (None) David McKnight Kevan Soderberg '~itv Staff Representatives Peter Herlofsky City Administrator 7. Continued Business a. Industrial Park Expansion Cost Estimates (Tina) b. 308 Elm Street Demolition (Tina) c. EDA-Owned Downtown Advertising Sign (Lisa) Tina Hansmeier Economic Development Specialist 325 Oak Street Farmington, MN 55024 8. New Business a. Business Development Grant Selection (Tina) b. Request to Encroach into EDA Owned Property - Regan (Tina) c. Farmer's Market (Lisa) d. Design Standards Workshop (Tina) 9. City Staff Reports a. Economic Update, see attached b. Downtown Idea Exchange, see attached c. Business Guide, see attached Lisa Dargis Administrative Assistant Phone: 651.463.7111 htt:p://www.ci.farmington.mn.us 10. Adjourn _lt~ .. . ~ ;~ '~~ , ~ington ED .'Jm;,s~ove t eco~c vimlity of the city of Farmington ond to enIu1na th€ overall quality oflife by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment. ,I.; , \ /": ~ i It 411 f1 C at.. 0Vl (t~ ~,r~ j\ ~ .uo ~r~ Jt=/1Ut/Y1 (1) &r . . . . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting June 23, 2008 1. Call Meeting to Order The meeting was called to order by Chairperson Pritzlaff at 7:00 p.m. Members Present: Pritzlaff, Fogarty, McKnight, Wilson, Soderberg Members Absent: None Also Present: Tina Hansmeier- Economic Development Specialist, Lisa Dargis- Administrative Assistant, Peter Herlofsky-City Administrator, Michelle Leonard, Nick and Stacey Schultz, Hosmer Brown III, Hosmer Brown IV, Jeff Thelen, Ruthe Batulis 2. Pledge of Allegiance 3. Approve Agenda MOTION by McKnight, second by Fogarty to approve the agenda. APIF, MOTION CARRIED 4. Citizen's CommentslPresentations a. EGC Strategic Plan Dakota County Regional Chamber President, Ruthe Batulis presented information regarding the Farmington Economic Growth Committee's (EGC) activities over the last five months and the draft of their Strategic Plan. Members of the EGC will also be presenting this information to the surrounding townships in order to encourage their participation and obtain their feedback. The EGC has identified their top three priorities to support economic development. The group will focus initially on the areas of industrial development, transportation and development/redevelopment of the downtown area. 5. Consent Agenda a. May 27, 2008 EDA Meeting Minutes b. May Budget Details EDA Member Wilson asked why the amount that was directed by the EDA to be spent to establish grass on the Riste site was not included in the May 27, 2008 meeting minutes. Staff stated that there was not an actual amount stated, and the EDA directed that the figure spent would be at the City Administrator's discretion. MOTION by McKnight, second by Fogarty to approve the consent agenda. VOTING FOR: Fogarty, McKnight, Wilson, Pritzlaff. ABSTAINED: Soderberg. MOTION CARRIED. 6. Public Hearings None EDA Minutes June 23, 2008 Page 2 . 7. Unfinished Business a. Downtown Update All planned improvements have been made to the McVicker Lot. Sod has been placed on the Riste lot and it was installed prior to Rambling River Days. Member Wilson asked what the cost of the sod was, and how staff plans to keep the sod alive. He stated that he viewed the lot earlier this evening and feels the sod is in poor condition. Staff stated that the cost of the sod was $4,477 and includes the recommended six inches of topsoil and two weeks of watering by the turf company. After the two week period, the Parks and Recreation Department will be watering the site. Member Pritzlaff stated that he believed that there could be roughly $1,000- $2,000 spent on seeding for the property and that sod would be at a cost of not more than $3,000. He also stated that he feels there have been issues in the past with sod dying and he is concerned about the watering after the initial two week period. He asked how water would be obtained for the site. Staff stated that the turf company and the City Parks and Recreation staff get water from the dispenser on the side of the City Hall building to fill their water trucks. Member Pritzlaff also asked what is behind the brick wall on the west side of the Larson Building because he viewed the site last week and feels that the brick fal;ade is unsafe. He feels that the green space that has been created increases the risk of someone being injured if the bricks were to break loose. City Administrator Herlofsky stated that the owners of the building have been informed about the issues with the exterior wall. Mayor Soderberg stated that the concern should be discussed with the building owner and the green space is an attractive enhancement to downtown. Member Fogarty stated that she feels that staff did what they were directed to do. She said that it was very important to her to have the improvements done prior to Rambling River Days and she is pleased that the site looked good for the event. She stated that she was not surprised by the cost due to the previously mentioned need for black dirt on the site. She feels that the Parks and Recreation Department will work to keep the sod established. Member Wilson stated that he feels that the price was too high and that he is also concerned about the safety issues that may have been increased by making the site useable and he feels that we should have addressed the exterior wall issues prior to making the sod improvements. . b. Exchange Bank Building A letter from the City Attorney Joel Jamnik was distributed prior to the start of the meeting regarding the Exchange Building status. The City Building Official has approved the final inspection for the building and has issued a Certificate of Occupancy. As of today all of the work that was required per the development contract has been completed. The warranty deed has been recorded, but because the original goal for this project was to see the building completed, not to obtain ownership of the building, the City Attorney and City Staff are recommending returning ownership of the building back to 2004 Real Estate Company. The Brown's have indicated that they will contest any action by the City to retain . ownership of the building. Member Wilson stated that he feels that this is one of the most bizarre one month scenarios in his recollection of being on the Council and the . EDA Minutes June 23, 2008 Page 3 . EDA. He stated that one month ago staffwas stating that the building was only 75% complete and now today there is a Certificate of Occupancy and the building is finished. He stated that he commends the Brown's for finishing the work and getting us to this point but his frustration is directed at staff. He feels that although the outcome is good, he has been mislead by staff and that the communication to the EDA was both sub-par and inconsistent. Mr. Hosmer Brown III stated that he was unable to hear what was being said. Member Wilson clarified that his concerns and frustrations were not with Mr. Brown or his son, but with Cit-' Staff. Member McKnight asked the Brown's what there next steps were gomg to be to market the building. Mr. Hosmer Brown IV stated that they have a lease out to a company called Buds and Bytes for the former Fan Club Athletics space. He stated that his own company, The Minneapolis Theater Garage would be leasing the upstairs space. Mayor Soderberg stated that the goal has always been to get the building done and have the building occupied. He stated that he is sorry that the methods to get the work done had to get to this point. He stated that his greater frustration is that there doesn't appear to be a lot of interest in Farmington from the Brown's. He stated that the ten years to complete the project tells him that there isn't a lot of interest and he hopes that the interest now is to get the space occupied. Member Fogarty stated that she is very frustrated with the Brown's and her initial inclination is not to return the building. She said that while she is happy that the building is done and she is not going to draw the City into a long legal battle, she has lost some trust for the Brown's. She will be very leery in trusting them to keep their word in the future. She has had to watch this project for the last five years. Member Pritzlaff stated that he is frustrated with the process that has taken place to get the building finished. He feels that the communication to the EDA has not taken place. He feels that he was betrayed because the paper quoted him in saying that "a deadline is a deadline", and he feels that those words in a sense didn't mean anything. He stated that at the last meeting he was told that the deed would be recorded and he had liability concerns regarding letting them back into the space. He stated that he spoke with Peter Wednesday and was told that there had been meetings and everything had been worked out. He stated that he is frustrated by the fact that he did not know what was taking place. City Administrator Herlofsky stated that after the June 1, 2008 deadline there was contention until the meeting that took place on June 16th with attorneys for both sides. There was continued work between the parties to attempt to resolve the issues and get the project completed by today. Everything that was to be completed was finished by this morning. Staff is happy that the issue is fmally resolved. He stated that he is pleased with the work by staff to get this accomplished. He stated that he is sorry that Council Members feel that they were not in tune to what was going on and things were not actually completed until this morning. He stated that staff will try to work better at communication. Member Pritzlaff stated that he would like to know what is going to be done to repair the wall. Mr. Brown IV stated that he has called a contractor and will be obtaining cost estimates and he will work in concert with the Building Official to get the wall repaired correctly. Member Wilson stated that he was under the impression that the EDA would be giving . EDA Minutes June 23, 2008 Page 4 . recommendations for completion of the building when the deed was recorded. He feels that the EDA was not given the opportunity to provide direction and that staff just did whatever they wanted to do. c. Industrial Development Strategy Additional information regarding cost estimates for the second phase of the industrial park expansion have been received from the consultants as requested by the EDA. Member Pritzlaff stated that he feels that the figures seem fairly open ended. City Administrator Herlofsky stated that there is no way to determine absolute numbers at this time and the figures are somewhat open ended. Member McKnight asked how the EDA will be updated on the progress and current estimates during the process. Staff stated that once initial meetings have taken place there will be better indication of how long the process will take. Member McKnight stated that the negotiation team needs to let the EDA know if the process is not going to move forward due to lack of interest on the part of property owners. Mr. Jeff Thelen asked if the City is planning on purchasing the land and maintaining ownership of the property. Staff stated that they City would like to be in the position to control the price of the land. Mr. Thelen stated that the current industrial park took about 19 years to develop. He feels that the EDA should not maintain direct land ownership of the property and develop it themselves. Mayor Soderberg reiterated that control of the land prices is the ultimate goal. . 8. New Business a. 308 Elm Street The property at 308 Elm Street is currently owned by the EDA and is used to house city vehicles while they are not in use. A few years ago a portion of the roof/ceiling fell and was temporarily replaced. The building is aging and there will no longer be a use for the building once staff moves to the New City Hall. Staff would like to obtain cost estimates to determine what the cost would be to demolish the building. Member Fogarty stated that she would not like to use sod to cover the lot if the building is demolished in the fall because the sod may not last the winter. Mayor Soderberg stated that he agreed that he would prefer not to sod the lot in the fall and we should look into seeding it instead. He asked how the demolition figure of $40,000 was obtained. Staff stated that the demolition cost for the Riste building was $36,000 not including the abatement. There has not been a formal bid obtained. Member McKnight stated that he would not support demolishing the building right now without a development plan in place. Member Wilson stated that he agrees with Member McKnight. He asked if the building has been marketed at this point. City Administrator Herlofsky stated that the building is still in use so there has not been any marketing of the property. He stated that demolishing the building may remove a step for a potential developer. Member Wilson stated that a commercial developer would be able to see past the building and the City should not be investing in tearing . down buildings. He stated that he would not support tearing down the building. Member Pritzlaff stated that he is not in favor of tearing down the building without a . EDA Minutes June 23, 2008 Page 5 . use. He also stated that if he were to tear it down without a use, he would look into making the site a parking lot rather than establishing grass. He stated that if we work in conjunction with a potential developer we may be able to share the cost of demolition. Mayor Soderberg stated that his concern with leaving the building is that there may a developer who wants to buy the building and make minimal improvements and still use it. Member Fogarty stated that she would be in favor of looking into using the space for additional parking and laying asphalt. Member Fogarty stated that staff could get more information regarding the costs involved and the cost for both establishing grass and laying asphalt on the site. Member Pritzlaff stated that he would not be in favor of demolishing the building without a use. Member Wilson stated that he does not agree with what Member Fogarty is directing and that he does not support staff doing any more work to investigate what we could do other than trying to fmd a willing buyer. Mr. Jeff Thelen stated that in 1991 he was kicked out of that building because the City needed it for parking. He stated that a lot of things have changed since that time but the need for additional downtown parking has remained consistent. He stated that the EDA should obtain bids and if in the end they do not end up tearing down the building they should at least paint it because it is the ugliest building on the whole block. He stated that the City-owned buildings should be taken care of if the other business owners are expected to fix up their buildings. MOTION by Soderberg, second by Fogarty to direct staff to obtain cost estimates for the demolition of the building and for options for use of the land including establishing grass and laying asphalt and creating parking. VOTING FOR: Fogarty, McKnight, Soderberg, Pritzlaff' VOTING AGAINST: Wilson. Mayor Soderberg left the meeting after this vote. b. ED Chapter Activity Update Staff has compiled a listing of current activities as they pertain to the Comprehensive Plan Chapter. Information received. . c. Meeting Schedule A schedule has been proposed for the EDA to meet every other month beginning in July. There was discussion previously regarding modifications to the meeting schedule in the future. Many of the projects currently under way are long term. For months during which there is no meeting, staff will provide a written report for the EDA. If it is necessary to meet during one of the months not indicated a meeting can be scheduled. Member Pritzlaff stated that on the months where there is no EDA meeting scheduled, then perhaps those months there could be ajoint meeting between the EDA and EGC. Member McKnight stated that if the EGC is ready to meet on issues it could be scheduled at that time and there would be open dates that could be used. MOTION by Wilson, second by McKnight to approve the modified meeting schedule. APIF, MOTION CARRIED. EDA Minutes June 23, 2008 Page 6 Je 9. City Staff Reports a. Economic Update Information received. b. Downtown Idea Exchange Information received. c. Harley Night - McVicker Lot The Downtown Business Association would like to use the McVicker property to host their monthly Harley Night and coordinate a beer/food tent. The appropriate licensure and insurance would be required prior to the event. Mr. Nick Schultz stated that the DBA would like to use some of the proceeds for a charitable contribution of some sort. Member Pritzlaff asked if the Riste lot might be a better location. Nick stated that Gossips would be providing the food so the site would need to be closer to that establishment. 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Fax 651.463.2591 www.ci.farmington.nm.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Industrial Park Expansion Cost Estimates DATE: July 28, 2008 INTRODUCTION Staffs first attempt to put together a budget for the industrial park expansion project is attached. DISCUSSION . A memorandum was included in the June EDA agenda packet providing cost estimates for the first two phases of the business park expansion project. These costs were provided by the Consultants and are reflected on the attached Industrial Park Implementation budget spreadsheet. Staff has begun to identify additional steps which may be necessary to move this project forward. As cost estimates are determined they will be added to the Industrial Park Implementation spreadsheet and shared with the EDA. please understand that the cost estimates provided are broad and could change significantly as progress is made. ACTION REQUESTED This item is for information only. 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E E ::J ::J' E Q) c.Z ~ ~ "E CO CO OS CO u.u. 0::::0 "E "'0 U. ::J >. >. .... .... s: Q) Q) IJ.. CO CO C C Q) C C .... .... .0 ~ > > Q) Q) ::J Q) Q) OJ OJ J: ....J 00 . . CO 0') (>'"j oq- l.O L6 l.O CO N- (;R- oq- CO 0') o C"') N I'- -i I'- C"') (rj m ..... o f- . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.fannington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: 308 Elm Street Demolition DATE: July 28, 2008 INTRODUCTION Staff was directed at the June EDA meeting to obtain demolition estimates for the building located at 308 Elm Street or the building commonly referred to as the "Old Park & Rec Garage" (see Attachment A). Also obtained were cost estimates for possible options for the use of the land after the building is demolished. . DISCUSSION Demolition estimates have been obtained from Friedges Excavating (Attachment B) and Doboszenski & Sons (Attachment C), both of which have demolished City or EDA owned buildings in the recent past. The demolition estimates are attached and indicate the scope of work along with specific exclusions based on certain assumptions at this point. The cost estimates provided include demolition of the building, disposal of building materials, grading of site and placing 6" of class 5 aggregate over the building removal area. Options are presented below for what could be done with the site directly after the building is demolished. They are: o Sod (Attachment D): $3630 - $6,534 $2,175 $29,784 - $47,896 o Seed (Attachment E): I} Asphalt for additional parking (Attachment F): . Cost estimates are attached for the options presented above. Staff believes the option of creating additional parking makes the most sense at this point. It continues to be brought to staffs attention that there isn't a sufficient amount of parking in the downtown area. With the location of this site adjacent to several of downtown's eateries; it would help alleviate some congestion until interest in developing the property is received. For some additional background regarding the state of this building, attached is a memo that was brought to the EDA in August 2006 (Attachment G). ACTION REQUESTED Authorize demolition of the EDA owned 308 Elm Street building. Respectfully submitted, -{j~1~mU~SrnCf()D Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky Jr. . . . Attachment B ~-... .,;,;,;,~- .~----,_.. ;--._---.:;;,,~., ""~ ~~". . ~ ~.-:.t.""'~ I,. '. h_' l~,-,-_-::' -.,-___ .:: v.~. .--'_.._~ '. . 0 r:r= . F~;rn ~~'-TJirnJ TI fllJ CQJ)l,=. @. ~nJ I >~~V~~~~~.J~'~~~~~ll . ,., JJ~,~-T('Jt\ , ,t,,, ...r, , . _:...~ & 3"__ . .\ I"~!~i .$tl-t~~;. '....) , ~~~~:. ~::r:-x~.", ,~ .~;o'\.""",.."'1W ~;>'i; rli'.~.... 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Attachment A . ~~~~~...-_... .......- ...... ---- 1 Existing Sign . . or conditional proposals, to request additional information from a proposer, or to expand the period for submittal of proposals. . ~ The EDA reserves the right to change its criteria in this Request for Proposals without notice. 4) Required Contents of Response and Sign Design a) A brief description of firm's qualifications and experience. b) Rendering of sign design and construction plans. c) Sight line study for proposed monument and/or pylon sign designs. d) Description of sign programming capabilities and software/hardware requirements. e) Detailed breakdown of sign cost and costs associated with installation. f) The sign design should be consistent with the existing city monuments signs (i.e. shape, color, etc.). See Attachment B. The city would also like the option to incorporate insignia for the service organizations located in our community (such as the Rotary, Eagles, American Legion, etc.) that may desire representation. g) A minimum of three (3) lines of text on the LED message center is preferred if . visibility is not impacted. 5) Selection Process The EDA will select the proposal which best meets the design requirements while considering cost and other factors. The Economic Development Authority and city staff will review all proposals. The final determination will be made by the Economic Development Authority. 6) Other Proposer understands and acknowledges that this proposal is subject to the Minnesota Governmental Data Practices Act. Proposals are private or nonpublic until they are opened by the City. Once the proposals are opened, the name of the proposer becomes public. All other data in the proposals is private or nonpublic data until the completion of the evaluation process. After the City has completed the evaluation process, all remaining data submitted by all proposers is public with the exception of trade secret data as defined and classified in Minnesota Statutes Section 13.37. Data will at all times be governed by the Minnesota Governmental Data Practices Act, Minnesota Statutes Chapter 13. Proposer agrees to maintain all data obtained from the City consistent with the requirements of the Data Practices Act. Proposer agrees to defend or indemnify the City from any claim, liability, damage or loss asserted against . the City as a result of the proposer's failure to comply with the requirements of the Data Practices Act. . City of Farmington Economic Development Authority Request for Proposals LED Message Center Sign 1) Introduction The City of Farmington Economic Development Authority (EDA) is seeking to replace an existing pylon sign in the city's downtown that has been traditionally used for local business advertising. It is the desire of the EDA to expand the use of the sign by replacing it with a monument or pylon sign that incorporates an LED message center. The preference is for a monument sign if feasible for the location. . 2) Site Information The existing pylon sign is located at the intersection of Elm and 2nd Streets in downtown Farmington. The parcel is owned by the City of Farmington and the current sign location is not in any easement or road right-of-way. Due to a recent reconstruction of Elm Street, the current location of the sign may need to be adjusted slightly west to accommodate triangle of visibility requirements when replaced by a monument sign. The current sign is illuminated and power is functioning to the site. The site is roughly 2 blocks from City Hall and staff would need to be able to program the sign remotely. See Attachment A for location map. 3) Submittal Instructions a) Any questions regarding this Request for Proposals should be directed to Lisa Dargis at (651) 463- 1620 or via email atldargis(cl?ci.farminqton.mn.us. Proposals shall be submitted no later than to: Lisa Dargis City of Farmington 325 Oak Street Farmington, MN 55024 b) Those submitting proposal do so at their own expense. The EDA will not reimburse any expense incurred by the firm submitting proposals including, but not limited to, expenses associated with preparation and submission of the response, submission of additional information requested by the city, or attendance at interviews or consultation meetings. c) The selected proposer will be responsible for obtaining and paying for all necessary permits, licenses and bonds/insurance. . d) Nothing in the proposal shall be deemed to commit the EDA to select the proposer. e) The EDA reserves the right to reject any and all proposals, in whole or in part, to waive any and all informalities, to disregard all non-conforming, non-responsive also had no similar issues with the advertising space that is sold for the yearly City . Calendar. The sign does provide an advertising option for local businesses that would be greatly improved with the addition of LED capabilities. Currently we are not charging for use of the sign because we only have five businesses interested in advertising there. We would not be able to fill the space for an entire year if we did not leave their sign panels up. In 2007 we offered advertising space for free and notified all local businesses; yet we were not able to generate interest from additional users for the current sign. While interest would most likely be greater for advertising space if the sign were replaced with an LED message center, this could also create issues that we will need to acknowledged. ACTION REQUESTED Discuss the options for future use of the advertising sign. RespectfuJly submitted, \. . .':>\--' ti~a D~iii~~~i;ii~;tt Assistant \., \\ '_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: EDA-owned Business Advertising Sign DATE: July 28, 2008 INTRODUCTION Staff would like to discuss replacement of the EDA owned advertising sign and possible issues associated with the intended use of the sign. DISCUSSION An RFP has been drafted to solicit quotes to replace the EDA-owned business advertising sign. The City Attorney has reviewed the RFP and does not have any issues with the document, but has raised concerns regarding the intended use of the sign. As has been discussed, if replaced, the sign would be converted to an LED message center style of sign. City of Farmington events and meetings as well as community events would be displayed on the sign. There would also be opportunity for permanently affixed service organization insignia on the sign and business advertising rental. The sign has historically been used for business advertising. The current sign code does not allow for this type of sign due to the fact that it qualifies as off-premise advertising and the size of the sign is over the allowable maximum. The current sign is a legal non- conforming use and if it were replaced, we would need to make modifications to the City's zoning code as it pertains to this type of sign. While this is reasonable to do, the zoning code is not the only issue to be considered. Allowing insignia for the service organizations to be placed on the sign and the sale of rental advertising space could potentially raise concerns regarding the First Amendment to the Constitution and the right to freedom of speech. While terms of use agreements do afford some level of protection, there is no way to prevent 100% of undesirable use of the sign. What this means is that a politically motivated or racially biased group could request to place ads on the sign and if we refused they could pursue the issue legally and would most likely prevail. It is important to note that the existing sign already falls into this category of sign and we have never had any issues with who has requested to advertise on the sign. We have . ~ ~ . ~ ~~ . '} ~# .... tPe .... I CJ) ,"0 .... , :, fI) ~. ' 'IG :711 ~ \. P I i 'lI [, I ,; ~ . ~ )i ". -~~"'!""-k-~:- '-"~~;'TI:"":':~:~"D' "" )111:......'. "...~, ~';..\ . .~,. .--r'-- .-~"' Z"-----' ... -'--,...,. ~ - . #~ " ... ..- #-.rJ,~' ;. :~', t' i ft.;,.., . ~. . ,. ~." ~i ';:'.. \~ ~"~ -. " "..., ~ f'iE) _ v .. ~'~...., , .(1< ~'r-r-. ..... .:~ ........~,;... . . f'1 .r" O!-'!~ ,I' n, lffl .".. ,- ')~ ::.' , 1'"" . _~_~_' ~ I ~ fi n : '1..,:1 '.' ~ ,~.. ... ~ -r III , :( , ... U :...:...--=---.-:~ :.' ~ i' . " l -") " ,~.. ~~~.l ! ~'I t, .' '~"......., ~., . '...... ' ~-,=",': ,:', . , - " ............ l~ I' ~ !J 1- ~~f ;t;lr~.'-' t-f4 .-..".- , ,. r . ~ft) .'~1 .-b . .,.. "~I" .., ~I m~ ~m--.1 m-,~ 'fJ-Q- ~" -;~~ ~I ~. ~'r- ... .,.. I ,..J'. L"'.' ~, >. __ i~~~~~:::" ':r...,.'-"" I -. .. f. .. ~j "'~':1""~-"~"...-"'.' . ~'" "I ., ~ . , '=~~,. 0: rj '. ::';1 (~ f!) rJ :... ", f' '" :.II, I F" ".~' ~t.1 'J .. ",-C' J0- 1i"r;,1 .<t'; '~I ' 1 .. ".""J . .......J "~'j .' .......1. J ~ t~-r~.;;~::r, '~"~,,,. -, ',~ ~_, '"'. ',.1 \~.:>~ ,@fil1l}L~1JU r.f ~~l .i~~ ~ -~:~~~ .-~ , : 1 ."'. ....--" ...._~ ",! ! \ . 00' ~ .. fl ':- t.FOODO ~ ~ 0 .0 g , I ~. g ~J , f1,~ . ~~ Oak Street ~. , ~~<'.""'~ ~" ...i' ~ ....,; 4...~ ~., . . . . 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: Business Development Grant Selection DATE: July 28, 2008 INTRODUCTION Staff received one application for the Business Development Grant from a new business locating in Farmington. Buds & Bytes is-requesting $7,740 in grant funds which will be applied towards their monthly rent for a period of twelve months. The space they will be renting is 213 Oak Street. DISCUSSION The application requesting grant funds is attached. Staff and the Community Development Agency [CDA] (CDBG Administrators) have reviewed the submittal and all required information and documentation has been received. ACTION REQUESTED Direct staff to award Business Development Grant funds in the amount of $7,740 to Mr. Christopher Buckley and Ms. Vida Raine of Buds & Bytes, Inc. and enter into the appropriate agreements. Respectfully submitted, f . ~rleHtlt1$rY\~~i Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky APPLICANT INFORMATION . D~@~OW~~ . JUL 01 2008 ~ Business Development Grant Program Grant Application NAME OF APPLICANT(S) CHRISTOPHER BUCKLEY & VIDA RAINE \!\It G+d -eJ ADDRESS 4429 WESDEL ROAD = =---- CIT~ STATE, ZIP FARMINGTON. MN 55024 PHONE (651)319-1595 SOCIAL SECURITY # 473-90-8091/471-90-7486 BUSINESS lNFORMATION LEGAL NAME OF BUSINESS BUDS AND BYTES.lNC. ADDRESS 213 OAK STREET CIT~ STATE, ZIP FARMINGTON. :MN 55024 . BUSINESS PHONE 651-463-4244 FAX 651-463-4244 FEDERAL TAX ID# 26-2862840 DATE ESTABLISHED 06-24-2008 SOLE PROPRIETORSHIP CORPORATION XXXXX PARTNERSHIP CONTRACT FOR DEED N/A MORTGAGE PRlNCIPAL N/A LESSEE xxxx TERMS OF LEASE NET 3 /2 YEAR OWNERSIllP lNTEREST OF ALL PARTIES NAMED ON TITLE: N/A NAME lNTEREST NAME lNTEREST . NAME INTEREST PROPERTY INFORMATION aSTIMATED DATE OF BUILDING CONSTRUCTION ESTIMATED CURRENT TAX MARKET VALUE NUMBER OF STORIES NUMBER OF BUSINESSES NUMBER OF BUILDINGS NUMBER OF APARTMENTS HAS TIDS BUILDING BEEN mSTORICALLY REGISTERED? PROJECT INFORMATION BRIEF DESCRIPTION OF PROPOSED PROJECT: ,~";LJ':< '~';"i: w";\,( ! (~? :,) ~'" >1-. I ' ;!-.. ~; ~~' ~-;; ..0; ~ ,0.. ~>t. f,//- . .....,-\/"., . ESTIMATED PROJECT COSTS EXTERIORJFA<:::ADE N/A ESTIMATED COST INTERIOR N/A ESTIMATED COST ELECTRICAL N/A ESTIMATED COST PLUMBING N/A ESTIMATED COST MECHANICAL N/A ESTIMATED COST FIRE SUPPRESSION N/A ESTIMATED COST ~ONTHLY LEASE PAYMENT (MICROENTERPRISE APPLICANTS ONLY) ESTIMATED COST $860-$1250 TOTAL ESTIMATED COST $860-$1250 FUNDING INFORMATION TOTAL GRANT AMOUNT REQUESTED $ $7.740 . APPLICANT FUNDS $ BALANCE ADDITIONAL SOURCES OF FUNDING $ N/A NAME OF FINANCIAL INSTITUTION N/A ADDRESS N/A C~ STATE, ZIP N/A CONTACT PERSON N/A PHONE # N/A REQUIRED ATTACHMENTS I.Financial statements - Provide balance sheets and income statements for the past two years 2.Personal financial statements of all principals . 3.Current satisfactory credit report of owners/partners 4.Corporate resolution (if applicable) 5.Completed W-9 form ./ 6.Most current property tax statement 7.Letter from the county clerk/treasurer verifying that there are no outstanding judgments or tax liens against the property 8.Business Plan (for microenterprise applicants only)'./' J/We declare that the information provided on this application and the accompanying attachments is true and complete to the best of my/our knowledge. JJWe understand that any intentional misstatements will be grounds for disqualification and that the City of Farmington has the right to verify this information. JJWe agree to provide the project coordinator reasonable access to information and reasonable access to the construction project site so that they may monitor project implementation. APPLICANT(S) /,00<".....,..... ~ ;. .{/ / Ii /'ir 5 ,." '7,"7 '\ A'/ - ~'~ "l iF';? ~ ,.,' . ""~:.~:.':::::~.'_._,. ," . ~.."'_.,..l.:.'.~'~..;.,.:... ...../-' '/-' /"r;/ DATE < I.... ; ,.~.1 ,:> 1I.it. IZ~- , DATE 72..0~ DATE . . MINNESOTA DATA PRACTICES ACT -TENNESSEN WARNING In accordance with the State of Minnesota Government Data Practices Act, the City of Farmington is required to inform you of your rights as they pertain to the confidential information collected from you. Confidential data is that information which is not available to. you or the public. The personal information we collect about you is private. The information collected from you and from other agencies or individuals is used to determine the disposition of your application with the City. The dissemination and use of the data collected is limited to that necessary for the administration and management of the Business Reinvestment Loan Program. Persons or agencies with whom this information may be shared, include: 1. City of Farmington personnel administering the loan program. 2. The Dakota County Community Development Agency. 3. City Council Members, Economic Development Authority Members 4. Contracted private auditors. 5. Law enforcement personnel. 6. Those individuals or agencies to whom you give your express written permission. NOTICE PURSUANT TO MS.60A.955 . . Buds & Bytes, Inc. PROPOSED: 213 Oak Street Farmington MN 55024 . CURRENTLY: Harmony Floral & BuckleyTech 1 Shopping Center Silver Bay MN 55614 July 8, 2008 City of Farmington Business Development Grant Review Panel 325 Oak Street Farmington MN 55024 RE: Grant Application Dear Farmington Grant Review Panel: In accordance with the terms of the CDBG Business Development Grant Program, we are applying for a Micro-enterprise rental assistance grant in the amount of $7,740.00 (75% of the monthly rental payment on 213 Oak Street for a term of twelve consecutive months commencing August 15\ 2008). This grant will allow the business owners of Harmony Floral (Vida Raine) and BuckleyTech (Christopher Buckley), both low-income persons, to consolidate businesses into Buds & Bytes, Inc. and relocate their family of four to Farmington. In addition, Buds & Bytes plans to create at least 1-3 additional employment opportunities for non-skilled or low-income persons within the first year of business. The future site of Buds & Bytes, Inc. is located at 213 Oak Street within the commercially zoned B-2 district. This downtown business district zoning makes for an ideal location for Buds & Bytes, Inc. with several complementary businesses and services nearby. . The rental of 213 Oak Street will be filling a vacant space in the downtown business district and will not result in displacement of residential or business tenants. No individual members of the governing body of Farmington, its officials, employees, or agents will directly or indirectly benefit from this grant. It is our goal to expand the business within 3-5 years to build or purchase existing commercial property and remain in the Farmington Downtown District for at least the next 15 years. Attached please find the comprehensive business plan, lease agreement, and personal tax statements of owners as supporting documentation for this grant application. Sincerely, Christopher Buckley Owner, Buds & Bytes Vida Raine Owner, Buds & Bytes . . Buds & Bytes Inc. unique floral design · expert computer repair Business Plan for Leasing and Development of: Buds and Bytes Inc. 213 Oak Street Farmington, MN 55024 Prepared by: Vida Raine & Christopher Buckley 19Bell Circle Silver Bay, MN 55614 (Cell) 218-220-7884 . June 2008 . Table of Contents I.Executive Summary II. Product Information III. Management Summary IV. Company Summary V.Green Business Initiative VI. Marketing - Analysis VII. Marketing - Strategy & Implementation VIII. Pro Forma Financial Plan 9 10 2 . 3 4 5 6 8 9 . . 3 . I. Executive Summary The proposed location for Buds and Bytes, Inc. is 213 Oak Street in Farmington, MN The city of Farmington is a quickly developing community in the south metro area of Minneapolis / St. Paul with a current population of approximately 21,000. The Oak street location is prominantly situated in the heart of Farmington's historic and vibrant downtown business zone. The business will occupy a space of approximately 860 square feet on a heavily used portion of Oak Street, directly across from the Farmington Bakery and the Farmington Post Office. The site was previously occupied by the "Tiger Fan Club Store" which has relocated one block away on Oak Street, due to the need for a larger retail space. The business will provide two categories of products and services. The first category will be the design, sale, and delivery of cut flower arrangements within a 20 minute driving radius. The second category will be computer repair and training services, along with the retail sale of associated products. . Floral orders will be driven primarily by a nationwide network of wire services, Internet, and telephone based fulfillment services. While the recipients of floral products will generally be located within the greater Farmington area, this method of order gathering will provide the business with a nationwide customer base. It is expected that Buds and Bytes, Inc. will be the exclusive provider of cut flower arrangements in the Farmington area for a company with gross sales of over $913 Million yearly. In addition, sales will be increased through membership in a second wire service with over 23,000 member florists. This ensures that from the first day of business, Buds and Bytes will be filling floral orders throughout the service area. The computer repair segment of the business will require significant time to reach capacity. Very little repair work is referred by manufacturers or nationwide referral services. While the customer base exists, it will take time to reach through both marketing and the building of business relationships. As with the floral segment, there is a deficit of providers within the local market. Through careful marketing and competitive pricing, this customer base can be reached. The computer segment will also benefit from the name recognition and word of mouth generated by the immediately high volume floral segment. Farmington has displayed a rapid growth in the number of households, and therefore the customer base, over the past 38 years. In addition, the speed of population growth has been increasing, from 3.67% in the period 1970-1980 to 7.28% from 1990-2000 and 7.34% from 2000-2006. The downtown corridor will be an important retail area in support of this growth. This area is located at the "core" of Farmington, with many of the government, educational, and recreational services located nearby. The community has made the sustainability of the downtown area a priority in the comprehensive plan, making 213 Oak street an ideal location for this business. . Currently, the closest Florists in competition would be Welcome Friends Floral, also in the downtown corridor, as well as Flora Etc and Lakeville Floral, both in Lakeville. While there may be some competition 10calJy with Welcome Friends, the"walk-in" portion of the floral business is extremely small compared to that of the "delivery" portion. Current market research indicates that Farmington is severely under-serviced in the floral category. This is likely aggravated by the recent sale of Welcome Friends, and the subsequent loss of their lead designer and subsequent re-listing of the business for sale. The addition of a second florist will serve to close this gap, and allow residents previously forced to make purchases outside of Farmington to fill their floral needs within the community. At this time, Farmington is the largest city in Minnesota with only a single provider of floral services. 4 Competition in the computer repair products and services segment is primarily "Big Box" retail stores . with computer repair departments, as well as home-based repair businesses. The presence of a legitimate, "brick-and-mortar" repair shop in Farmington should serve to convert the customer base of the home-based services. The primary factors providing the consumer an advantage over the "Big Box" stores will be price and quality of service provided. Currently, competitive research indicates that a price point of 30% to 70% less than the competition will be profitable. Personable service, done on site, will also be advantageous in that customers will be more satisfied with the work performed. The turnaround time for services will be within 24 to 48 hours, as compared with a 2 to 3 week turnaround for the competition. A secondary factor in customer conversion will be distance to the store. Buds and Bytes will hold a significant advantage in this arena, as the nearest "Big Box" store is over 30 minutes away for the bulk of the downtown market area. The short-term business plan of Buds and Bytes, Inc. is to fill the market gaps, generate exposure in the community, and leverage the advantages of combining the floral and computer businesses segments as detailed in Section III. This plan will enable Buds and Bytes to generate 2-3 jobs (in addition to the 2 jobs held by the owners) in the community within the first 3 years. These jobs would be targeted towards persons holding High School level education, with the company providing trade-specific training to the employees. Workers with other time commitments, such as children, schooling, or other employment would be provided an employment option with flexible hours to fit their schedules. The mid-term goal is to generate sufficient revenue to justify building or purchasing retail space in the downtown corridor within 3 to 5 years. . II. Product Information The products and services offered by Buds & Bytes Inc. will include the following: .Computer Repair Services .Associated Computer Parts and Supplies .Business to Business Technology Consultation .Fresh Cut Flowers .Pre-Arranged Flowers .Fulfillment of local floral orders for national services . . . . 5 III. Management Summary Vida Raine - Co-Owner and Master Designer (Floral Segment) Background Vida Raine has substantial ties to the Farmington community, and has been impressed with her observations of the school district over the past 12 years, with 4 siblings having graduated from Farmington High School. Her 4 year old twin daughters are approaching Kindergarten age, and will undoubtedly be able to excel in the Farmington public school system. Education Vida left high school 1 year early with a 4.0 GPA to attend the University of Minnesota, Duluth on a 1- Year Post-Secondary Education Grant from the State of Minnesota. Vida majored in Business/Marketing, with a minor in Liberal Arts. Later, she switched her major to Graphic Design, with a minor in Business/Marketing. Work Experience Ms. Raine has worked full-time since the age of 15 and has a passion for problem solving and business acumen, in addition to her communication skills, and art/design background. Her work experience includes 7 years of Marketing and Management positions, as well as 5 years of business ownership in the floral industry. In 5 years as Marketing Director of Eagle Ridge resort in Lutsen, MN the business saw an increase in occupancy of 15% and an increase in gross revenue of 48%. This represents an average annual growth of3% in occupancy and 9.6% in Gross Revenue. During this time, Vida also decreased the overall marketing budget of Eagle Ridge by 32%. Vida also acted as the interim General Manager of Eagle Ridge Resort's operations and 32 employees while still performing duties of Marketing Director for two years. During this time, Eagle Ridge also benefited from a 9% drop in overall expenditures. Since her tenure in the job market, Vida has expanded her creative talents through freelance Graphic Design, and Web Design. Her talents were later utilized when she formed Harmony Floral & Gifts, which she has operated for the past 5 years, serving as the owner and Master Designer. Christopher Buckley - Co-Owner and Lead Engineer (Computer Department) Background Christopher Buckley was raised in a small town in northern Minnesota, and enjoys the community minded atmosphere of the Farmington area. Because of this, of the several communities examined to fmd a larger market for his computer repair business, Farmington made not only the best financial sense, but was also the community he decided he would most like to be involved in. Education Chris completed his post-secondary education at Michigan Technological University in Houghton, Michigan, where he studied Electrical Engineering, Computer Engineering, and Management. Work Experience Mr. Buckley has worked for several Fortune 500 companies, including General Motors, Honeywell, and Panasonic, as an Electrical Engineer, Systems Designer and Technical Consultant. Since exiting the job market, he has spent the last 8 years as a freelance consultant and the owner of a computer repair business. IV. Company Summary 6 . As noted in the Executive Summary, the overall business plan for Buds & Bytes, Inc. is to establish a customer base in the Fannington area, and leverage the unique nature of the business to increase revenues. At fIrst, the combination of floral design and computer repair into a single business may seem counter- intuitive. The birth of the Buds & Bytes concept, in fact, was as unique as the concept itself. Facing additional competition, a rapidly decreasing market base, and increasing rental and supply costs, the owners of Hannony Floral and BuckleyTech began sharing the same leased space. While it was known that splitting some of the fixed costs would reduce overhead for both companies, there were several unexpected benefits unique to the combination of the two businesses. Increased Labor Efficiency It was found early on that the labor requirements for the two businesses were "identically opposite" over any given time period. When looking at sales over the course of the week, the computer repair business would peak at the beginning of the week and taper offuntil Friday. The floral business, however, sees great increases in sales throughout the week, peaking on Friday, due to wedding preparation, church orders, and general events taking place on the weekends. In addition, as sales are examined on a yearly time period, computer repair needs are significantly less during the summer and near holidays, when customers are usually spending more time outdoors or with family. This coincides with floral sales trends as wedding season (summers) and holidays are the busiest times. To take advantage of these . peaks and nulls, each owner has trained the other in the basic skills needed to allow the expert in their field to work most efficiently, using the other as an assistant. Need Based Services vs. Luxury Services The computer repair business provides a unique "anchor" business to the floral design business in several ways. Customers requiring computer repair know what they need, and where to go to get it, while the floral design business is not needs based. Offering computer repair out ofthe same location exposes the computer repair clients to the floral product, keeping that luxury option fresh in their minds. The floral design business provides a unique marketing opportunity for the computer repair business as well. When a competitive advantage exists for a needs based business, exposure to the customer base, word of mouth, and marketing are invaluable. The steady and predictable floral business provided by the wire services will serve to generate quick growth through increased exposure. Demographics and Marketing Both business segments have unique marketing challenges that are alleviated by the mixing of demographics. Exposure of each segment's demographic to the other service generates sales for both segments. The computer repair demographic is predominantly male- an extremely valuable, yet difficult to reach demographic for the floral industry (outside of holidays). The demographic reached by the .. floral segment's marketing (females with disposable income) is equally valuable and difficult to reach b>W a computer repair business through traditional marketing means. . . . 7 Retail Environment The combination of the two businesses creates a retail environment that is comfortable for both sets of clients. The addition of floral product to the environment provides a calming, relaxed atmosphere for computer repair clientele. This is especially advantageous as consumers in need of computer repair are often in a traumatic state due to their urgent need for repair services. Often times computer repair shops are intimidating to the average consumer, not only with their layout, but also with the wide variety of technological products that can confuse customers. The intimidating nature of a flower shop for male clients has also been observed to be alleviated by having "gadgetry" to browse through during flower preparation. Even the presence of another man in the work area has proven to have a calming effect on male customers in the floral environment. The additional tools and workspace provided by the computer repair segment can provide for increased efficiency and orderly workflow for the floral design segment. Conclusion Currently, this concept works within a town of 2,000 people with an equal amount of competition present. The population of the town the businesses are currently located in is decreasing rapidly through both job loss and an aging demographic. This requires relocation of the businesses to maintain an acceptable growth rate. The added efficiency of a combined business suggests the ability to service a market the size of that which can be reached from the Farmington downtown business district. Future additions to the service area (Rosemount, Northfield, Lakeville, Apple Valley) will require the addition of several employees, and subsequently a larger business space, to handle demand. Through a tight control on operating costs, efficient marketing spending, and a community minded business plan, Buds & Bytes will translate its success into the larger market area serviced by the downtown Farmington retail area. As detailed in section V, our marketing plan will leverage the "quirky" nature of the business to generate an immediate word of mouth campaign, while a tightly controlled marketing budget will serve to seed new customers, as well as preserve name recognition with existing customers. In addition, our Green Business Initiative, as detailed in section IV, will serve the purpose of not only further reducing costs, but also do so in a way that is marketable (from a technological standpoint) to new commercial clients, and shows investment in not only our endeavors, but in the community as a whole. v. Green Business Initiative 8 . The Buds & Bytes Green Business Initiative is based on several of the successful cost reduction methods currently in place at Harmony Floral and BuckleyTech. Through the combination of the businesses, we have been able to put in place a plan that not only extends on current practices, but examines other environmentally conscious business practices, and implements them in a way that benefits not only the business, but also the community as a whole. Several of the key components are detailed below. Direct Recycling of Vases One successful practice already in use is the direct recycling of V ases for floral orders. Customers are allowed to return vases after the expiration of the arrangements. This creates a large stock of returned vases, from which the cost conscious consumer can choose vases from to maximize the quantity of floral product in vased arrangements. The nearly identical pricing between the vased and wrapped arrangements thus reduces the number of customers who choose wrapped arrangements. These wrapped arrangements are less environmentally friendly, as they are packaged in non-biodegradable plastic, or single-use paper packaging. Paperless Office Nearly all businesses have made attempts to provide cost-savings through technology, however, the floral industry is behind the curve in this respect. By developing in house software for point-of-sale, order fulfillment, and even delivery vehicles, we are able to reduce paper waste. With the exception of . customer requested receipts and legally required paper records and mailings, we are able to operate without a need for paper. Floral Waste Management The largest amount of waste generated historically by the companies has been floral waste. These offcuts, unacceptable product stems, and expired perishable product are all able to be disposed of as compost, rather than added to a landfill. Using an off site facility along the delivery route, this waste can be disposed of efficiently, and the resulting composted product can be recycled as a component in potting mix. Computer Repair Customer Education Great strides have been made in the technology sector to ensure environmentally friendly products. Due to recent EU regulation, all newly manufactured computer equipment is using a mercury free manufacturing process, causing less damage to the environment when it is disposed of. More important, however, is the adoption of Energy Star standards industrY-wide. While the actual repair process will result in more energy efficient computer systems, customer education with regard to minimizing the electrical energy consumed by their technology can also have a significant impact community wide. Environmentally Aware Operations The greatest advantage of the Green Initiative is the ongoing awareness of environmental impact. that will be utilized in our decision making. When this impact is included as part of the decision making process, several opportunities become apparent. The relocation has provided cost savings and reduced impact through the use of recycled paint, for example. . . . 9 VI. Marketing - Market Analysis Market research data for the downtown business district was compiled mainly from an existing report prepared by McComb Group, Ltd for the City of Farmington in October 2007. This report shows an estimated market share of only 35% in the florist category, representing a market gap approaching $1 Million. The generation of sales via wire service using population correlation estimates the capture of an additional $400,000 per year from outside the typical trade area for the downtown business district. VII. Marketing - Strategy and Implementation As mentioned previously, Vida Raine has extensive experience in the fields of Marketing and Graphic Design. This provides an added advantage to generating sales quickly in both market segments, and maintaining a brisk, yet manageable growth rate. Outlined below are some measures to accomplish these critical goals. Track Customers / Build Sales Loyalty The in-house point of sale system is designed to not only track customers, but also floral recipients, the occasions purchased for, and predict the recurrence ofthose occasions. Any computer equipment repaired is similarly tracked for repair history information, as well as preventative maintenance opportunities. The sales process will include periodic contact with past customers to ensure the next time their anniversary is approaching, or their anti-virus is expiring, we will serve not only as a reminder, but also the recipient of those purchases. Leverage Oak Street Location The Oak street location has the advantage of being centrally located, with several high traffic businesses on the 200 block. It has the disadvantage, however, of being off of the main thoroughfare for downtown business. To help introduce Buds & Bytes to the community, and fully utilize the traffic generated by adjacent businesses, free wireless Internet access will be made available throughout the 200 block of Oak St. Business signage will be consistent with the character of the historic downtown, and the retail environment inside the store will be similarly inviting. Public Relations In a close-knit community such as Farmington, it is important to have a healthy rapport with area businesses and civic organizations. Through involvement in community organizations, Buds & Bytes . will help not only maintain a rapport, but also provide an initial set of faces behind the business. As a family with small children, much of this involvement will come naturally. Traditional Advertising Typical media outlets will be utilized for a portion of the advertising budget. The Farmington Independent, as well as the Yellow Pages, provide a cost-effective form of advertising when approached with realistic goals and budgets. This marketing will be focused on the early months of the business, when increasing awareness is the primary goal. Once the marketing goal becomes increasing sales to existing customers, these methods will require re-examination for effectiveness. VIII. Pro Forma Financial Plan 1 . Initial Startup Phase The following information was compiled based on both historical data for both businesses, as well as market studies compiled for city govemments. Separate calculations based on population data correlated with service markets results in figures within a 10% tolerance. The following chart describes gross revenue throughout the initial startup period. Gross Revenue Initital Startup Period 45000 40000 35000 30000 .r:: C 25000 0 2: 20000 f!! ~ 15000 a Cl 10000 5000 0 /\ ;/\ j\ !,j \__/\ /\ I ' \ -.. I V J /-\;rv -' Roral .- Computer Combined . Oet-08 Feb-09 Jun-09 Oet-09 Feb-10 Jun-10 Aug-08 Dee-08 Apr-09 Aug-09 Dee-09 Apr-10 Aug-10 Month As can be seen in this graph, while the initial startup period is extremely vulnerable to seasonal business within the floral segment of the business. As the computer segment grows, this will serve to even out these fluctuations. Cost of goods sold is very well regulated by industry standard in both market segments. Pricing of perishable floral products is generally with a 200% margin. In the very competitive computer repair market, required parts are itemized with a very low margin, or at cost, to remain competitive in the labor market. Historically, cost of floral goods has been 33% of Gross Revenue +/- 2%, while repair parts make up only 10% of gross revenue. These constraints allow estimation of net revenue unifonnly throughout the chart above. . No. mo. . W~i!l llnO~tttun, made in duplicate this, by and between 2004 REAL ESTATE COMPANY, laws of the state of Minnesota. P,rtlco. Mn..\..u.,DI.'la Co.. b!'ll)tlUPOlll, ~'!..:1 day o[ 2008. ~ a corporation organized under the hereinafter designated and referred to as lessor. and BUDS & BYTES, INC., a corporation organized under the laws of the State of Minnesota. hereinafter designated and referred to as tenant. WITNESSETH: THAT said lessor in consideration 01 the rents and covenants hereinafter mentioned, to be paid ad performed by said tenant. does hereby demise. lease and let unto the said tenant, and the said tenant does hereby hire ad take from the said lessor. the 'following described premises situate in the City of.. fi'lrmington County of ' DCl,kg,t.<:l .state or ..Minne sota to-wit: 213 Oak Street, Farmington, Minnesota, and more particularly described on Exhibit A attached hereto. The restrooms and hallways shall be used as common areas of building as provided herein. the D=c~rion Premitt;L To HAVE AND To HOLD the above premises just as they are. without any liability or obligation on the part of said Te=.' lessor of making any alterations. improvements or repairs of any kind on or about said premises or the building or build, ings of which they are a part. or the equipment. fixtures, plumbing, appliances, or machinery in. upon or serving same. ~r the streets. alleys. areas. area-ways or passages adjoining or appurtenant thereto. for the term of two (2) years .. from and alltr the ,1st.,. ....day of...~J.\g);\$,t...~,Q.o.,~".... .. t<)-.......... to the.......3.),,&.t............ day of ..J.).;\lY,.....~O 1 0. _~ ... both dates inclusive. for the following purposes and for no other purposes. to-wit: Sale of flowers and sale and repair of computers and other equipment used in connection therewith. And the said tenant agrees to and with said lessor to pay the lessor as rent for the above mentioned premises th sum of ..~Ji.Q...P~,~...,r:r:t(;:mJJ)...,.:~,!?<:lp.~ ...I~!1:t:.,...,JQ.:r....tl:1l?.!l\Q.J;1.tl:1s...,.,DollM"5- -( ~ 7.7",,7"'"" -.,. -.,. 7 -tit- fOOl"tlhr- ~~b~~ of August 2008 through July 2010 per month. Rent is payable in advance on the 1st day of each and every month during the full term of this Lease at office of 20D4 Real Estate Company, c/o H.A. Brown, 3922 W_ 50th St., Edina, MN 55410, suite 201. Lessee shall not take possession of premises until it has changed all utilities into its name except water services and has given its address for billing to each utility. Lease term shall begin with date of possesion when Lesee shall become l~able for utility expense bu t b a~E'l...r..~I1,:t.i:i~....s.J:a..~.~...I1,<?~.~M~~f"",gg~"'ggHA. ~~8t.?;t;;l.1*..J~~~1e~ ~~?ili~ ~erT n:u",h- -f;lr-<H'lft -6;;rt.Jg 4he..f<ll1-t~r-fll-Gi -!oRis- ~e; -ilHfle- -emee4. '" "'.. .......,..,.......'.... .....' ........ .,.... ....,..'..,.... Nt.tO"c of OeeupulC1. . ..... R",c ....h................................ --.----------- Ter..ir.t to Muowo ."d Surn:nder i'rembe. in Good Ord,r. The said tenant also covenants and agrees with the lessor SignL as, follow,S: That the tenant will keep at his own expense said demIsed ,premises and the ,equipment, plumbing, drains, fixturts, appliances a.nd mac.htnHY in, upon, serving or appurtenant to said demised premises, in gDod repair and in good sanilary condition during said term, and that he will replace at his own expense promIJtly any and all glass broken in or abou.t nid premises with glass of the: same QualitYi CondltloD that he wdl make no alterations in or additions to said of premists, \~,dlhout first obtaining the lessor's v.,rritlen con. Prc:misu. sent, Jnd that he will not use or permit anything upon said premises Lhat will increase the rJtc of insurance thereon or anything that mal' be dangerous to life or limb, a.nd that he will not in any manner deface: or injure s.aid demised prem- ises, or OI"Y ,part thereof, or overload the floors, or do or Rr:lea.sc permit anythmg to be done upon said premises or in the of passa.geways, allc)'s, an~as. aHa-ways, sidewalks or streets 1.,.;SIIIO.. adjacent thereto, that will amount to or create J. nuisance' and that he will not use said premises or permit the sam~ or any part thereof to be used for lodging or sleeping pcr- poses, or for any purpose contrar}' to the laws, ordinanccs or regulations or lhe" United St:J.tcs vf America or the St:J.l:: of..........!1.t.,n.,P..~.E?.9.,t,Cj,.....".......".................... or (he City of ...... .. .E'.arming.to.J]........,.....................or of any ,ule' or rcgubllollS of the Cit)' oL....... .,..... ~.~+.~qJ.D.-.9,:!:;..9n.. ......,..-, or of ;H\Y boards or offir:crs (Ii said city: :llld tne tenant agrees It~~'S. to rcl,HIl said premises peJcc:ably and promptly to the lessor :'!.t Ihe e.nd vf the term of this lease, or 011 an)' previous termi- nation thereof, in as good condition as the same are-now in or m:!.y hereaiter ue put in, 1055 b,' fire and ordinary wear eX. ce:pted, And the tenant further covenants and agrecs to kcep the sidewalks bordt'ring: on said demised premises (where the: leascd space hNders upon a sidevn,lk or passageway) and tnl:: roof or said demised premist.:s at all times free from ice and snow and other obslructions, and to neither waste nor misuse WOller, e1euricity. gas, steam, or any other utilities or agencies '.vhich Jrc or may be furnish::,J by the lesso., and B~I1'kruptcr. to promptly P:JY :1.11 rales, costs and charges for tn~ sam~, ~xcepl as to suC'h of the S:lnH:, if any, as the lessor has speciflcall)-' ~grecd herein to) iurnish iret oi c.harge., let u:d Snow, V\ilitiu. Lessee shall not crect or permit to be erected on ~.itd premis~s, any signs ~n the exterior of the prtnlists or built:. rn~3 Without the wntten consent of lessor endorsed ha,:\.i'l nor place or p~rt1ljt to be l?laced in any portion of an)' 1)( the demIsed pn::mlses any weight or wdghts in excess rJi th reasonable or safe carrying cap3city of the slruct~rt:, , The tenant acknowledges the receipt of the demised prna. !s'es and the s.amc to be in good ar.d sanitary condit;un, 3f,j In g~od n:palr, and the taking possession of Ihe dtmi:;~c prc~lse:s by the It:nant shall be conclusive c\'itjwcc thaI \I.r demIsed p~emises. and the cQuipmcnl, plumbing, cral!":s. It~. tures, ~ppilancts a~d machinery lherein, were at the tlIf1(; ...~ so takrng POS5t,S~lon there?f in good, clean, s:l.niury :i:l'i tenantable conditIOn, and 10 all respects satishclOrv :i!.,~ .acceptable to the tenant, and in the condition in which lht"', ?"trt repre.se.nted to the. le.nant to be and agreed to ke {Holt In by the lessor; a~d the t,enant hereby releases the ]l;"H'~ !;om any :'lnd all. c1aJnl! ar~slDg from any defect in the (,:0,,"'::- tlon, of sal~ demIsed premls.tS, or the equipment, ilxl~rtS .:.,r apph~nces In or, ~CrvHlg saId premises, and lhe buiJJing- ,...r bUIldmgs of WhlCll lhey are a [Jut, and tbo: succi:!!, a::t"',.l areas, area-ways, passages or sidewalks adi".)ining ';..r appurtenant then:t.J, Th~ tenant agfl~C! that he will nOl sublet the dCjr.:5'=\~ prcmlscs,. or any part ,thereof, and will not assign this :-:i:.". or any ,"lcrest thcr~ln, nor permit such lease to Lc('JI:,'~ transferrc? by opc:rallon of law o,r othenvisc. anrJ that c;u ;,.' or acts WIll be don~ or suficrc:d whereby the s:im~ m~i \:~ '.': bc~ome sublet or a.ssigned in wh'Jlc or in pan, ~nle.~s t:.: wnt~en c~nsent of the lessor endorsed thereon shall be fl~'" obtalOed In each and every case: of underletting or a.ss:gn. ment, as they shall from time to time occur or be d~s;rt':.! and that nothing what~\'er shall be held to lot a yn:',ti ',: or supersede the necessity of such endorsement. Any assignment, sale in bankruptcy or insol',',;nn ,)i T: I' les~cc may. at the option of the lessor, be CO!:wjl.:rt:-: .~l. assignment within the meaning c...r {his lea:>t' t1nd :.&5 :! !Jr,'a,: o{ the c.oven3.nts. hereof. . Lease - Page 1 ax~a~L LUL LLaULLLLLaS dLLsLny LL~U LaSSUL breaGh of this Lease . The tenant further agrees that Ithe lessor shall not be lIable for any damage, either to person or persons or prop. trty or the lo.s of property sustained by the tenant, or by a.ny other person or persons due 10 the demised premises or the building. of which the demised premise. are a part, or the equipment, fixtures, appliances or machinery in or upon the same. or the hal1s, passage!, areas, area-ways and side.. walks or streets adjoining or appurtenant to the same being ?r becoming OU~ of repair or defective, or due to the happen- mg of any aCCident, or due to any act or neglect of the tenant, or any tenant or occupant of said building, or of any o!her person, persons or corporations, or by the bursting of plpes, or by the use or mIsuse of any instrumentality or agency in o.r connected with the demised premises or the building of which it is a part, or occasioned by any nuisance Bond made or suffered thereon or therein. ~c~t It is further agreed between the lessor ar.d tt:n;j:~: ". lease is made upon the c.ondjtion that if the h:r"l.{;I si:I' neglect or (ail to keep. observe and perform all)' WI !l,~. (._,.' nants and agreements contained in this lease, wi1ldl :;:~ be kept, obse.rved or performed by the tenant, 01" If Ih:",:;~;, hold interest of the tenant shall be taken on t.\l:CU!t.n ' other process of law, or if the tenant shall petjlii~n :;; ~,,: be declared bankrupt or insolvent according to Jaw, ,')r :i ~:.,. tenant shaH vacate said premises or abandon the sa:11'! d"Jf:~': ~~ht ~~seso~er:ayofi~~:dl:~e51; ~~e~t ~~~ ~fm:n:he~~aftei;J. ~~.~{'~,\ ':,. RHIltr)'. out further notice: or demand, enter into and ':l';."~: premises, or any part thereof, in the name o{ {he '.n ,..',; take absolute possession of the same fully il.r.{~ ;':',~...' without such re-entry working a forfeiture oi Iht.: l"i:;,:.': be paid and the covenants to be performed by the: Ie:,:;",: : the full term of this lease, and may at the lessM's t!rC:~v, The tenant further covenants and agrees at its own expense lease or sublei said premises, or any part thereof. t:n So ';c to obscn'e and keep all regulations and requirements of the terms and conditions and for such rellls and fer SUcil ljJ:;t :., F ' t the lessQr may elect. and after crediting the rent a':~~J;,L city of.......".9.-,l;;m.*.D..g....Q.!1......"......................."......or other pub- Subl",!n.. coilected by the lessor from such ..Ielting on ,I',t (,,r,,. ' lie authorities in force at the time of the taking possession by stipulated to be paid under this lease by the: h;r,;n:l ir ,':' the tenant of the demised premises or which may thtreafter tim~ to time, collect from the tenant any balance r:::Jl;;'lf,,!.. be madt regarding the condition a.nd conduct of said de- due from time to time on the rem reserved under this !.;.. " rniscd premises, any part thc:reof, and the: sidewalks adjacent charging to the tenant such reasonable expenses 3S th~ :n:,.< thereto: including aU building, nre, sa~itary, police: or other may expend in putting the premises in tenanlable (t);;dl{U'. regulations. Or the lessor may at his election and upon written nOI;(': '. 'ta.l::iUi The. tenant further agrees that if the demised premises, or TermilatioD the tenant declare this lease forfdted and VOid, aod t. ~ for any part thereof, or any part of the improvements of which ~N th~reupan. re-enter and take full and absolute f'OS~'.~'J': PobUctl'De. they form a part, shall be taken for any street or other pub- '{Ddt:~ said p~emlses as the owner thereof, and free from .,rq j.., lic use, or shall during the continuance of this lease be deH B;D rup C1. or chum of the tenant, or ~ny person or perSCHlS ,I.. ': . stroyed by the action of the public authorities, then this through ~r under ~he tenant, and such eJec\lon and !' c:.... S........ cr...d lltr llO'UJ dCLUiHd shall~termlUate.dnn--t:enant-hrrt'1fie'fihoned shall be and constitute an absolute bar to ~: , shalL e entJ. tIed to receive navment of thf'> right to enter by the tenant upon the payment of all ,rr"",, De.li1::ruction It is further agreed between the lessor and the tenant tfiaT To * ages of rent and costs after a dispossession under D.n\ ~ \,; , rtrre. if during the te.rm of this lease the demised premises or the or prpcess for breach of any of the covenants cl- this "le:OH 1 impro\'ements thereon shall be injured or destroyed by fire and the commencement by the lessor or any attion to Her:, ..,::' Of the elements, or through any other cause. so as to render possession of said premises aforesaid shaH be deemed a ~i,li~" the demised premises unfit for occupancy, or makes it impos~ tient notice of election of said lessor to treat this Ifi:h .,: sible to conduct the business or the tenant thereon, or to such void and terminated, without the written notice aho"t ~"rC' .n extent that they cannot be rep.ired with re..on.ble dili- fied, unles. the lessor shall in writing before beginnln, ~ ., . genee within thirty (30) days (rom the happening of such proceeding, notify the tenant that after obtaining such . '~':': injury, then the lessor may terminate this Jease and the term session the lessor will continue to look to the tenant ir../!!-;; herein demised from the date of such damage or destruction, performance: of this tease and will submit the premE;o:~ . '. and the tenant shall immediately surrender the demised the tenant's account, in the manner as abovt: pro\'jded. - premises a.nd all interest therein 10 the .Iessor, and the ten- ant shall pay rent only to the: time of such surrender; and in case of any such destruction or injury the les.sor may re.enter and repossess the demised premises discharged of this leasc, and may dispossess all partin then in pos'session ther~oi. But if the demised premises can be restored within sLxty days (60) days from the happening of the iUjUT)' thereto, and the: lessor within fifteen (15) days from tbe occurrence of such injury e.lects in writing to so repair or restore said premises within sixty (60) da)'s [rem the happening of the injury thereto, then this lease shall not end or terminate on 4.CCQunt of such injury by fire or otherwise, but the rent shall not run or accrue aftfr the injury a.nd during the: process of repairs, and up to the time when the repairs shall be completed, except only tbat the tenant shall cl.uTing such time i?ay a pro rata portion of such rent apportioned to the portIon of the de- mised premises which are in condition for occupancy or which may be actuatIy occupied during such rcpairit;g period, If, howeverj the demised premise! shall be so slightly in- bl jured by an)' cause aforesaid, as: not. to be Tendcre.d unfit (or occupa.ncy, then the les,sor shall repaIr the same: WIth reason- able promptness, and 10 that .c~$e the. rent sh.a.1l not cease or be abated during such repalrmg penod. All l!Dprovem~nts or betterments placed by the tenant on the demised premises shall, howevcr, in any e"ent, be repaired and replaced by the tfnant a.t his own expense and not at the expense of [he lessor. The lessor agrees and covenants that the tena~l, on paying Q-nJ the rent and performing the covenants afor~sa,d, slnd,l and ~Ol~L may peaceably and quietly h01ve, ho!d and enJoy .the s.'lld d~- mised premises for the term aroresald, except as In thiS lease otherwise provided. **(continued on Lease-Page 3) L4blllt]' ,f Lcuor ",d Tt:lJ.tlt. llibiU.,. of I.e..". ",d Tcn.tIlL The tenant as.ume. all liability and obligation on account of all damage. on account of the matters and things above referred to, and agrees to save the Jessor ha.rmless thereon and thtrefrom, .nd to indemnify the lessor on account there- of. This provision shall apply especially, but not exclusively, to damage caused by water. snow, rain, hail, backing up of water mains or sewers, frost, steam, sewage, illuminating gas, sewer gas, or odors, electricity and electric current, and by the bursting, stoppage or leaking of pipes or radiators, plumbing, sinks and fixtures in or about the demised prem- ises or tht building of which lht demised prtmises are 'a part. In case of such damage the lessor may at his option repair such damage, and if such damage has occurred in the demised premises or on account of the defects in the demised premises against which the tenant has agreed to make repairs, the tenant shall thereupon reimburse the lessor for the costs of repairing such damage, and jf the tenant (ails to perform a.ny of the Covenants or agreements he.rein pro~ vided to be kept or performed by the tenant, the lessor may perform the same and charge the tenant with the expense of such performance, and the tenant agrees promptly on demand to repay to the lessor the cost of such performance by the lessor. Nod" to 0= Pn:mifCa. The tenant further covenants and agrees that the service 01 notice by any officer of the City 01.......f..~.f.m.tDg,t9.!.!...... ................,...........................upon eithtr party to this lease 10 clean said premises, or to do any other act in connection therewithl shaH be conclusive evidence as between the parties hereto of the breach by the tenant of the covenant with respect to the non.performance of which by the tenant such notice ha. been served. Any notice from the Jessor to the tenant, relating to the demised premises or the occupancy thereof, shall be deemed duly served if left .t the demised premises addressed to the tenant. Ttm.nl Lo Comply ,,"m City Rerub.riocs. ~ ~o:I .VId Fire. S SJ:.'eCLLLC The le.sor agrets that if the prtmise. hereby le."d ,h,:: at the time hereinbefore stipulated for the beginning o! I ~~~ term of this lease, be in the possession and occupancy o! .ii~lY person not lawfully entitled to said possession and o.tcup~nr ~ the lessor shall use: due diligence to obtain possession trH:tt~ of for the lessee, but it is expressly understo;d and a~rt';' ~ that the lessor, using due diligence as aforesaid Sh31! nojl ", any way be liable for any failure \0 obtain the poss':::::.;,,-.n t the premises for the lessee and th~t this Icase .shal! r,.:t .:>\. affected in any way by any such fa.llure to obtilln r)l..I~''''~~ except that the rentals hereunder shall be abated unl" 1-' ~ session shalt be secured by the lessor (or the le.H.N:" <i~F~ \~:'. ten notice to tha.t effect given by the lessor to tht' lcs,!.tc . It is understood and agreed with resf,ect to ull alttr:lli-s-r~ and repairs, improvements or al:erations to s~!d d~:::L::'..: premisesJ or any part thereof. whIch shall only tie '\'d!!l. :: ':: written consent of the lessor, that tenant shall and ......J. : each instance save said lessor and said premis.es i.ort\t'r harmless and free from all costs, d;a.mages, loss and lli1b:l::, of every kind and character which may be claimed, aSSt'r":< or charged, including liability to adj.ctnl owners based u;.;:, the acts of negligence of said tenants or their agcms, (: ~ I' tractors or employees, or upon the negligence oi iHI)' 0:' 0;' person or persons in or about said premises or upon the. j I.. ure of any or either of them to observe and c:ompl:.' Wl{~l .: requirement of the Jawor with the regulations of t,h: iil.:tb_ r ties in the said city of ....f.Ci:r::f.!\tl1,gt:.9n and will preserve and hold .the lessor and said premises !-:.t:, ever free and clear from hens for labor and rnalrnal l:Jr. nished. A ll<l-t..e-l<......~rel:'S-that--it.....,..;.Il-Ir.-.- .....".....,.. ..:"'.. -b-c:ft>~mg- 'It'fl1-st:C'ft -r~!"5~tf:t1f'HlreFR~-.jt:. ..;}..;.(~u:~_ -f'Om;,h'- th-e- +t~o-r-...,.jH1-e. -4'loO'fl'El-tn-:H\-fifi'l.~\-:i-A~ W~~\o.l.l~W'_ -"~*~~4~~~~n~-~~~~~4~-~~~rl~ffl~~- -~-~~~~~~-~~~~~~-~~~~~~~~~f~m~- -~~~~4~~~~~~~~MM~ . Ii. the taxc: paid by the lessor urJon the prOlltrty w . leased premises are a p~rl. shall in an)' during erm of this lease be incrc:as( . ......) annually, then C' annual rental ur said pr(rnist:~, fl.,r . II " e" addition to the amount heTl'il~bcfort: nH~;.' .. , iFr.CfUl.n, LEASE - Page 2 *(conti~uation from previous . 11 is furtner agreed between the parties to this lease: Lessor is not obligated to make any improvements, changes or additions to the premises whatsoever and plans for any changes or additions to be made by Lessee must be submitted first to Lessor in writing for approval before com- mencement. If a sewer access charge is required because of tenant's instal- lation of new water and sewer facilities. Its payment will be negotiated 'L between the parties based on increase in use. ' ~ b ( i C- If [ At signing of this lease Lessor acknowledges receiving $1500 ~m~~e'~eposit -- to be applied to any damage to premises during the lease term, Any unused portion shall be refunded at the end of the lease term. lthtblof The Jessor shall at aU times have the right to enter upon E,l)trt. said premises to inspect their condition,. and at his election to make reasonable and necessary repairs thereon f(lT the- protection and preservation thereof, but nothing nere!!, ~hJII be construed to require the lessor to make such npaHs, :!rld the lessor shall not be liable to the tenant, or any othtf 1;l:r- san or persons, for failure or delay in making said rcpu.irs. or for damage or injury to person or properly causel.! In C'T by the making of such repa.irs, or the: doing of su,,:h work. The lessor shall have the right doring tht: last 30 days (;j tht term of this lease to place and. maintain on the ch:mi!.t.j premises and in the windows thereof the usual IHHlCe "j "To Let" or uTo Rent." and to show said premises to prr.:. spective tenants. Rein 2nd Each of the coven3nts, proyi~ions, terms and agrccmtnt; Olbers. of this lease "'shall inure to the: bencht of and shall be cbligo.. tory upon the resptctive heirs, executors, administrators. suc- cessors and assigns of the lessor and tenant respectively. ......"...........!.~9..,,~~,T.l,i:.i:lL..i:l9~,T.l.c;.Y.L. ,. acting as agent. only! assumes no obligation Wh31S0l:\'tr 1:1 respect 10 any representation, Wilrranty or covenant hertl" contained, and shalt not in any event b~ held liable to l!:'s.sor or (0 lessee for the fulfillm,nl or non-fulfillment of any of :1", terms or conditions of this lease or for any action or .,r(,lct:ed- ings that may be taken by ~ither 2gainst the C>tht:r. There 3fe no under.5landing.1 SIr agreements ol.llside rh!{ It~i5. lease. except tne AuOenoum ano Ex J.DJ. t A attached and incorporated herein. I N TESTIMONY \VHEREOF the lessor and tenant have hereunto set their hands <lnd seals the day and year first wrinen We. the tenant. hereby acknowledge that <It the lime 01 making and delivery of (his lease and mortgage lien. the Les;t.r delivered to us a full, true and complete cop)' of same. Signed. sealed. and delivered in presence of: 2004 REAL ESTATE CO. Lesse.el upon leaving the premise.s hereby leased, shall .:at his own expense remove all ashes, dirt, rubbish and refuse. and upon lessee's failure 50 to do, lessor may immediately without further notice to lessee do the same a.t lessee's ex- pense, which the lessee shall immediately pay upon receipt of a bill for same from lessor. X(loce of VilCUC1. Rh:bllof LU$c! to T~rmiD:ue, The tenant further agrees 10 give the lessor written notice Ihirt). PO) days before the expiration of this lease of his intention' to vacate at the end of this lease .-eH:le-rwHrc-{.h-E- ~~~~~~~~~~~~wM~mm~~~~~n~4~~ ~M~~ffi~~~~~~~H~~~~~k~~w*~~~ 1-o~40-l-<""''''h- II.-J.o.w~l'r4l><-~.. -<J".e;;-",* ...k04-1<> 9'tI-co-~i1'K."e:-lh1!""'J.t.~e-~ the tenant remains in said prem. ises 6fter the expiration of the term of this lease, such re- maining in possession shall not, exctpt at the option of the lessor, extend the term of this lease, and the tenant shall promptl)' vacate said premises; and if for any reason the ten~ ant does not promptly vacate the premises at th, end of the term, the tenant agrees to pay the lessor, for such time as elapses between the end of the term of this lease and 1he time when the ten2.nt :lctually vacates the premises, a pro rata rental equal to one Olnd onc-halI (1~) times the rent provided 10 be paid during the term 01 the lease, . Tne ten2.nt agft:ts th;Lt no assent, ex.pre.ss or im?lied, by the It.5!ior to an}' breach of any of tht tenant's covenanls or :lgreements shall be deemed or laken lo be a wJi\"er of any succeeding bre.<:.ch of such covenant. As to Lessor. Christopher William BuckleyA~ to Tenant. as of Lessee. and Vida Raine as of Lessee STATE OF COUNTY OF ,M.INNE.S01'.1\p HENNEl'IN . '... }'" . On Ihis 00)' of .2QO S}{%,P..." b'fm "". 0 No"{(o~~I~rwil;:: a1igvf~0 fIJ?\(;{dlU}/ly oPt'afto .,,, .....,.,H.o.sm.eJ;..pA......BIo,wn,..IV,................. to'mr ptrsonaily kno'W7$, who, bein.g b) me duly sworn. did .fOY tr..ol the)' art IIu ViuMPrfS1dml and Surclary of the Corporall'on- M1TItd in the fortg01'ng ins/rumtnl, cmd--thr::1~Jre7C"Gl-tr5im "'tcrmitJimin;mrnr- i1*~t't-~et-&J-StHJ-HPftH'&lWm;orld that said ins/rument WaJ ;ignld and ,,0110 i. behalf of ;ojd co'porotion b)' outhority of its Boord Hosmer A. Brown III Df Dir.e.ctoJ;=s. ond said ....,HoSmer....A,.Bro~n...I.v acknowledgrd said nutrun1tnl 10 be the fra ad and dced oJ sa~d c.orpo. folion. 2004 REAL ESTATE COMPANY By.... ,.......,.....,...., Its President [SBL] and, [SE^L] Its --LESSOR-- Buri1/"&{')3YTgEI~~=~~~'" ..C~:tfJ~~' " .. /~, " By,\1t<<6~~' ....... .. ... and by OWl\l12lZ-S Ifs COUNTY OF STATE OF.. [SE.'L) [SF.'L] [SE^L] as to Lessee \ (H. 0" this do:, of '9 before tMt', Q. within aH-d for said County, ptr,sonol1y apptort.d -. tD "'; knDlm 10 be Ihe pmon i;;i;ib;;J'i. "nd whD ,rlCul,d In' fortgoing inJtru7iunt, and acknowledged that }U fri'Cll:cd Iht scant OJ Ira a.d and dad. Notary-publiC:;" HennepTriCO;' MN My.commiss.ion. .expir.e.s,;... LEASE - Page 3 . Assignment For value received, the undersigned I Tenant. hereby sells, assigns, transfers, and sets over unto all h u. right, title and interest to the within lease ancj premises therein described; It being understood, however, that this transfer in no way releases said tenant from h ,..liability for the performance of all the terms, covenants and payment of rental under said lease. For value received,_ under the terms of the within Jease and agrees to perform all therein stipulated, pursuant to the above agreement. hereby assumes all the obligations of the terms. covenants and conditions and pay the rent as The within landlord hereby consents to the above assignment. Dated this........................ ........,day of , ...., A. D. 19..... . M tJ :>- :,0 II t;Q x " :l " "0 ;:; 0 ~. J ~ 5' c 0", a " I 0 '" en ::> i ~ i Z I trJ II ..." (fJ o-l: ;<j 0 0 CFJ ~ l==1 . I.. l7J ~';r.- :;; .... (,.fJ 'D [rJ . Sheet1 Expenses By Major Category - Budget and Spending to Date Date Range 05/01/08 to 08/04/08 pepartment Category Budgeted Spent To Date Facility Lease Payments $2,500.00 $2,340.00 Net 3 Add $400.00 Decorating $1,000.00 $1,232.30 Furniture $1,750.00 $455.67 Fixtures $5,000.00 $2,132.29 Computer C/O Tools $2,500.00 $2,870.05 Inventory $8,000.00 $4,979.91 Hardware $2,500.00 $1,804.78 Floral C/O Tools $2,500.00 $2,090.00 Inventory $3,000.00 $1,183.59 Hardware $0.00 $0.00 Computer Gen Tools $400.00 $27.30 Inventory $1,000.00 $508.19 Hardware $0.00 $0.00 . Floral Gen Tools $1,000.00 $847.10 Inventory $1,500.00 $0.00 Hardware $0.00 $0.00 Misc Logistics $5,000.00 $3,288.68 Software $4,000.00 $1,500.00 Office Supply $500.00 $178.32 Marketing $2,000.00 $398.73 Gov / Permit $250.00 $180.00 Community Involvement Business Associations $500.00 $50.00 Downtown Wi-Fi $1,200.00 $957.44 Community Outreach $500.00 $242.54 Totals $47,000.00 $27,266.89 . Page 1 . 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: Request to Encroach into EDA owned Outlot with an Access Drive DATE: July 28, 2008 INTRODUCTION . On July 10, 2007 the Planning Commission approved a Conditional Use Permit [CUP] and site plan that was submitted by Patrick Regan for the property legally described as Lot 3, Block 1, Farmington Industrial Park 208th Street Addition. Mr. Regan has now requested an amendment to his approved CUP and site plan in order to move the location of the property's access drive. DISCUSSION As shown on the attached site plan (Exhibit A) the access drive that was approved as part of the CUP and site plan extends south through the "handle" portion of the Mr. Regan's property and connects with 208th Street. In addition, the Engineering Department has reviewed and approved construction plans that depict the location of the access drive in the location previously mentioned. It should be noted that the approved access drive on this property would be a temporary drive that would be required to be removed if and when Eastview Avenue is extended southerly from the Middle Creek East subdivision, along the eastern border of Mr. Regan's property. . Mr. Regan has since discussed with staff an option of locating the majority of the access drive off his property and onto the property located directly east of his which is owned by Bernard Murphy and the City of Farmington Economic Development Authority [EDA]. Mr. Regan's proposal (Exhibit B) is to upgrade an existing gravel drive which currently provides access to a residential trailer that is owned by Mr. Murphy to a 24 foot wide paved drive. This existing gravel drive is located in a portion of an EDA owned Outlot (Outlot C Farmington Industrial Park 2nd Addition). As shown on Exhibit B, Outlot C is a 16.5 foot wide corridor that was preserved for a future trail extension (Please see attached memo from Randy Distad, Parks and Recreation Director) from the Middle Creek subdivision south to CSAH 50. The gravel driveway that currently exists was allowed to remain as it was a pre-existing condition prior to plat approval with minimal traffic use. This information is being brought before you because the EDA is the owner of the Outlot where Mr. Regan is requesting to improve his driveway. Staffs position would be to deny the request as it would set a precedent that could open up the potential for anyone . to request to improve any City and/or EDA owned properties. ACTION REQUESTED Staff would like the EDA to provide direction to the Planning Commision on this item as the owner of a potentially impacted property. The CUP Amendment will be going to the August 12th Planning Commission meeting Respectfully submitted, !~!l 174-tu~VcZ) I L~ Tina Hansmeier, Economic Development Specialist Cc: Peter Herlofsky Jr., City Administrator Joel Jamnik, City Attorney Lee Mann, Consultant Bruce Maus, Consultant . . T any Wippler &::~ patric~~~~a~"i~~re~an~"~;~~~ai~~~~~i~~~~'=~~"~~~--~~~~~-.~~~~~-~~' Sent: Monday, July 21,20086:21 PM To: Lee Smick; Dave Sanocki; Kevin Schorzman; Peter Herlofsky; Tony Wippler; Grant Jacobson; Rich Hocking; Nathan Denny Subject: POR-MKR Real Estate/Bernard Murphy Shared Driveway Dear Lee, et al: As requested by Peter Herlofsky last week when we met on site of our new 208th Street Industrial Park property, I am writing to make a formal request to have the City Planning Commission and City Council act to allow us to relocate our driveway on this site to a location which has been agreed to by me and Mr. Murphy via Temporary Easement Agreement. This is a change from the site plan originally approved for my property, but is a change we publicly discussed and anticipated at the time of site plan approval in late 2007. The reason for this revision is to establish one shared, upgraded, and paved driveway in essentially the same location as is now used by Mr. Murphy along the the border of our two properties. His current gravel driveway is located over the City outlot within which we have recently installed utilities to serve our site. These utilities were increased in size at our expense and under the direction of City Engineering Staff so that they would be able to serve future development in the area. Mr. Murphy and I have since come to an agreement on a shared, paved, 24 foot wide driveway along our property lines and over the 16.5 foot wide City outlot. This outlot was acquired by the City from Mr. Murphy a few years ago as part of the DR Horton development to the North of our properties. This outlot and .ed driveway design are both in line with what is anticipated to be the future extension of Eastview Avenue to the south ss Middle Creek and to it's eventual connection with 208th Street. Since the final road easements are not yet in place, Mr. Murphy and I have agreed to a Temporary Easement, which allows the City to retain all it's current and future rights to the outlot. In the future, along with any extension of EastviewAvenue south to 208th Street, my driveway as currently designed and approved, would be rendered unnecessary and superfluous. We always planned for a direct driveway entrance off of an extended Eastview Avenue once it is constructed. These are some assumptions which caused us to trade land on 210th Street and Hwy 3 with the City for this Industrial Park lot. We understand the risk we took since the necessary road easements for Eastview Ave were not in place when we closed on that trade. Nor was there ample opportunity or reason to make an agreement with Mr. Murphy at that time. We have since gone to great time and expense and have had many cordial, productive meetings with Mr. Murphy which have resulted in our agreement. Our agreement basically improves his driveway and the neighborhood at my expense. It eliminates an existing gravel driveway in the area. In the interim, we have agreed with City Staff and Mr. Murphy to share the gravel driveway, which we have already improved significantly, until the City can take formal action on this request for a site plan revision. Our new building and parking lots are nearing final completion. We think they'll look just great. We have met personally with our neighbors at the Daycare to discuss our landscape plans and screening of our parking lots. Our tree plantings far exceed what was originally required and approved. I'm most happy to report to you that since we received approval for this project, which was largely speculative at the Ie, Marschall Line, Inc. has expanded to the point re we will now fully occupy this property in August. We have secured another school bus contract for an adjacent School Istrict which will result in 100 new jobs being brought into the Farmington Industrial Park. We would now ask that the City simply agree to this minor site plan revision, which will allow us to save on the unneeded expense of building a long blacktop driveway across our 7/23/2008 property which not only restricts the maximum the use of our site, but will also be useless upon the future extension of Eastview Avenue. We will also provide copies of engineer's drawings and the Temporary Easement Agreement to the City for consideration prie your meetings in August. Thank you for your consideration. Pat Regan POR-MKR Real Estate, LLC . . 7/23/2008 - Planning Commission Minutes July 10, 2007 Page 4 g) Conditional Use Permit ~md Site Plan to allow a Truck Terminal in the IP zoning district Applicant: POR-MKR Real Estate, LLC 101 East 10th Street, Suite 300 Hastings, MN 55033 - Mr. Patrick Regan is requesting a site plan review for the last remaining industrial park lot. .The lot locati.on is Lot 3, Block 1 of the Farmington Industrial Park 20Sth Street Addition. The applicant is proposing dismantling a 12,600 square foot building that is currently on the former Marshall Bus Line property east of Trunk Highway 3. The building would be: relocated to this property. There would be no requirement for a special exemption permit because the building would be moved in pieces. The building would be located on the rear portion of the lot with an entrance coming from 20Sth Street. There will be 12 parking stalls and areas for outside storage of busses. There are plans for additional buildings on the lot in the future. The second phase of the plan would have to go through a site plan review prior to construction. There is a 100 foot wide gas line easement that runs through the property. The landscaping plan meets all requirements for the IP zone. Part of the property is heavily wooded and is in a wetland area that 'MIl not be developed. The lot coverage maximums are being met. Engineering is reviewing the grading plan. There will need to be a conditional use permit for the use as a bus/truck terminal. The following contingencies would need to be met: 1. Approval of the grading and utility plan by the Engineering Division. 2. Applicant must obtain an encroachment agreement from the gas company to construct a parking area within their easement. Commissioner Larson asked if this use is allowed in the Industrial Park with regard to doing maintenance to the vehicles. Staff stated that the use is allowed in this Addition ofthe Industrial Park. Commissioner Barker asked if there would be fencing requirements for the outside storage area. Staffwill check on that requirement. Chair Rotty asked Mr. Regan to describe how the building that is being moved will fit with the design standards for the Industrial Park. Mr. Regan stated that part of the reason that he is moving the building is to accommodate the completion of 210th Street. The building will be raised by two feet so that the doors are higher and the metal siding will be covered with new material that meets the design standards. There will be screening with trees and possibly berms. Chair Rotty asked if there are any concerns for the safety of people using the daycare facility that is near this property. Mr. Regan stated that the 100 foot wide gas easement provides a safety buffer to the adj acent properties. He stated that the work done to the busses will take place inside of the building. ~ MOTION by Larson, second by Oswald to close the public hearing. APIF, MOTION CARRIE]). MOTION by Oswald, second by Larson to approve the site plan and conditional use permit. APIF, MOTION CARRIED. 4. Discussion . . . [;xr\~ ~lt- c City of Farmington .. 32,5 Qak Street .... Farmin~tQn. Minnesota 6~1.463.j1 U · Fax 651.463,4591 www.ci.f~rmington.mn.l.l$ TO: Farmington EDA Members FROM: Randy Distad, Parks and Recreation Director RE: Comments on Allowing Driveway to be Constructed on EDA Owned Outlot in the Farmington Industrial Park DATE: July 24, 2008 INTRODUCTION/ACTION REQUESTED: POR-MKR (the Developer) has requested that he be allowed to construct a driveway on an existing EDA owned out lot in order to provide a driveway access to a parcel that he owns in the Farmington Industrial Park. It would be the recommendation of the Parks and Recreation Director to not approve the Developer's request. DISCUSSION: While I understand that the Developer would like to create a new access driveway to his property from what was approved in the Site Plan that was approved by the Planning Commission, I feel that it would be setting a bad precedent for allowing someone other than the City to construct anything on City or EDA owned property. I feel that it is important for the out lot to be preserved for a future trail connection. The trail master plan identifies this outlot, which actually stretches all the way to CSAH 50, to be an important connection from the Middle Creek East subdivision to CSAH 50. If the Developer was not able to access their property, then I may have been more receptive to allowing the construction to occur on the EDA owned out lot. However, because there is an approved Site Plan that allows him to construct a temporary driveway on his own property, I feel that the EDA should not approve the Developer's request. If at some point Eastview Avenue is constructed in the future, this would allow the Developer to create a new access driveway from his property to Eastview Avenue. ~e lly SU~1l1~ ~O i)~ andy D~ Parks and Recreation Director cc: Park and Recreation Advisory Commission Members . . . 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: Farmer's Market DATE: July 28, 2008 INTRODUCTION Staff would like to move forward with steps to begin establishing a farmer's market. DISCUSSION Staff has been compiling information for necessary steps to establish a local farmer's market. There is a significant amount of planning that needs to take place ahead of time and we feel that it would be appropriate to obtain resident feedback regarding their interest, preference for products and preferred day of the week/time for the market to be open. We will create a survey to be located on the City of Farmington's web site and notice of the survey will be sent out in the utility bills for the next three months. The utility billing is sent out in geographically delineated sections so it will take three months to mail the notice to all households. Simultaneously we will be soliciting possible vendors for the market. The cost to mail the notices out in the utility bills will be approximately $105 and there is no fee for the survey, as it is covered in our yearly contract with Survey Monkey. Information is attached regarding the steps involved in establishing a local market and a copy of the notice to be mailed. ACTION REQUESTED Authorize staff to move forward with establishing a farmer's market if resident feedback is positive. R?J~brgitted, r;:-d=_~i~--> 'S: Lisa Dargis, Adminisb:ative Assistant . The ideal time line is to start a year prior to oDenina your market. Plan. Plan. Plan Any market must have customers and suppliers. The first step is to ascertain if the two ingredients exist. I. Is there a demand in the area of the proposed market for high quality, farm fresh Produce? A search for suppliers and custom should be conducted. II. Are there suppliers willing to market in the community? 1 Local food supplies can't be generated overnight. It may surprise one to know that successful farmers plan their marketing before they plan production. A farmer, supplier of locally produced food, needs a one year start up time to produce for a given market. Therefore, the timetable for finding suppliers should come one year before the market opens. 2 Are the selling regulations and conditions such that a supplier can afford and will be willing to market at the proposed location? Consult with the targeted suppliers to get their input and involvement. III. If the answers to I and 11-1&2, above are positive, then proceed with planning the market! SUGGESTED TIME TABLE FOR ESTABLISHING A FARMERS' MARKET . Assume that you want to start a Farmers' Market the summer of 2009. 2008 Spring 2008 Spring: Join the Minnesota Farmer Market Asso. WWW.mfma.org Determine if there is adequate supply and demand for your proposed market. 2008 Summer: Form a Committee to Organize the Market. 2008 Summer: Locate a sponsoring organization. May be a business, church, Lions club etc.. 2008 Summer: Determine location and propose days, hours, etc. Secure all Permits, insurance and work out all legal related issues. 2008 Summer: Develop a job description and locate a competent Market Manager (Coordinator). 2008 Fall: Locate interested farmers and craft vendors available for your market. Secure at least two high quality larger volume vendors to set the tone of the market. Have them on each end of the market. Smaller vendors to fill in the middle stalls. Do not have more then 10% crafts. . . 2008 Fall & Winter Involving the Sponsor, Organizing Committee, Vendors and Community representative (Mayor, city manager etc.) - plan the market. Join the Minnesota Farmers Asso. WWW.mfma.org 1. Establish opening dates, days, time. 2. Establish a budget and vendors fees. 3. Consider start up fund raiser if needed. 4. Establish a product mix and vendor volume agreed by the vendors. 5. Develop an extensive advertising campaign, radio ads, newspaper ads, siqnaqe, prior to opening the first year. 6. Develop your bylaws. 2009 Spring: Have a meeting of all involved to check ideas and activate your plan 2009 Spring: When the market opens all will be ready and the market will stand much better odds of success. . (As you work through this outline other item/issueslconcems may arise and should be incorporated into your work plan) Above all attend the Fall and Spring 2008 MFMA workshops sponsored by the Minnesota Farmers Market Asso. Resources you might find helpful: Links: "Farmer Market Manual" Minnesota Farmers Marker Asso. WWW.mfma.ora. Central Reaional Sustainable Development Partnership www.reaionaIDartnershiDs.umn.edu "Starting a farmers' market the right way" Article by Andy King Posted by the Rodale Institute. htlp:/Iwww.newfarm.oralfeatures/2006/2006/frmmrktlkina.shtmI . Market Manager resource center from the West Virginia University Extension Center. Features many useful links to get a market started including finding funding sources, creating market policies and bylaws. http://www.wvu.edu/-aaexten/farmman2lmanaaeres.htm General overview on starting a farmers' market from the Southland Farmers' Market Association in CA, includes estimated start-up costs.:. www.cafarmersmarkets.oro/aboutsfmalhow2start.shtml . Publications Minnesota Farmers Market Manual: Your best resource for starting a farmer market manual in print. www.mfma.org "How to Organize and Run a Successful Farmers' Market" by Julia Freedgood, $3. Based on actual Farmer' Market experience and literature from a number of outside sources. Available through the Federation of Massachusetts Farmers' Markets. (781) 893-8222. "Starting and Strengthening Farmers' Markets in Pennsylvania" available through the Center for Rural Pennsylvania Penn State Cooperative Extension. (717) 787-9555. Things to think about: Pricing Canopies Tables Meetings Parking Start date/close date Market hours Location Location Location Notes: . Remember this is a Farmers Market not a flee market. Dallas Flynn 218.841.6380 drusadal@hotmai1.com WWW.1ocalharvest.com . . . . We need your input... The Economic Development Division has created a survey to assess resident interest in establishing a local farmer's market. The survey is available on the City of Farmington web site at: www.ci.farmington.mn.us We need your input... The Economic Development Division has created a survey to assess resident interest in establishing a local farmer's market. The survey is available on the City of Farmington web site at: www.ci.farmington.mn.us We need your input... The Economic Development Division has created a survey to assess resident interest in establishing a local farmer's market. The survey is available on the City of Farmington web site at: www.ci.farmington.mn.us . . . 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: Downtown Commercial District Design Standards Workshop DATE: July 28, 2008 INTRODUCTION Staff would like to set up a workshop with the EDA, Planning Commission and Heritage Preservation Commission to discuss design standards for the Downtown Commercial District [DCD] that was delineated earlier this year. DISCUSSION An example of design standards for the DCD district was brought before the EDA for informational purposes in May 2008. In June the HPC met to discuss the provided example and recommended forwarding them to the Planning Commission for comments. The Planning Commission reviewed the attached at its meeting on July 8 and recommended setting a workshop with the various Boards to discuss more specific architectural design requirements. Would any of the following dates work for the majority of the EDA members? Monday, August 25th Tuesday August 26th - Prior to the HPC meeting Monday September 22nd - Prior to the EDA meeting Tuesday, October 14th - Prior to the Planning Commission meeting ACTION REQUESTED Recommend a date to set a workshop with the Planning Commission and Heritage Preservation Commission to discuss details of the Downtown Commercial District design standards. Resp~ctfully submitted, . '~;/ll\(L'7"Lf{L r~.yy-'(',j- e.r- 'r c..-;1. Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky Architectural Standards for Downtown Farmington - Discussion Draft Prepared by Robert C. Vogel, Preservation Planning Consultant May 27, 2008 . The architectural standards would apply to all construction within the "downtown district" (as delineated by the City Council -- the boundaries of the district would not necessarily be coextensive with those of any future heritage landmark or preservation overlay district). The primary community development objective is to revitalize the city's traditional central business district by maintaining and enhancing the positive historical, aesthetic, and economic character of the downtown area; secondarily, the standards provide a basis for integrating heritage preservation concepts with policies, procedures, and strategies for economic development. The standards are neither technical nor prescriptive; they are intended to provide guidance to property owners, developers, architects, contractors, and others who are responsible for the design, construction, renovation, repair, and maintenance of buildings, sites, structures, and areas within the district. The standards supplement the city's building, zoning, and heritage preservation codes and in no way reduce the requirements established by these or any other codes. The downtown built environment has been extensively studied, particularly with . respect to its historic buildings. Several properties within the district boundaries have been designated or determined eligible for designation as Farmington Heritage Landmarks. These landmark properties will serve as focal points for economic revitalization. Although they lack individual distinction as heritage preservation resources because of exterior remodelings and alterations, many of the other older buildings still convey a strong visual "sense of place" and contribute to the historic character of the downtown neighborhood. Several of the "remuddled" building facades are also potential candidates for rehabilitation and restoration of their original architectural character. The standards envision an architecturally diverse downtown environment with a mix of preserved historic structures and well designed contemporary buildings. The objectives of the design standards are to: o Encourage integrated site planning to create a cohesive, sustainable built environment · Define & enhance public spaces as "outdoor rooms" o Maintain and reinforce "small town" & "Main Street" architectural traditions · Control vehicular access and parking to encourage an active pedestrian environment 11) Make service facilities unobtrusive · Respect the character of historic buildings 6 Mitigate massing & bulk of new construction . 1 . . Unify & articulate building facades . Place a strong visual emphasis on streetscapes . Demarcate building entrances . Encourage high-quality design & construction . Emphasize human-scale design . Require new construction to be compatible with existing buildings . Respect the residential neighborhoods on the edge of downtown ED Create appealing streetscapes . Eliminate "left-over" (non-functional) spaces . Encourage replacement or remodeling of undesirable or architecturally incompatible buildings .. Adaptively reuse older buildings that contribute to the district's sense of time & place I>> Encourage the development of pocket parks, gardens, plazas, and courtyards for public use o Establish well-defined transitions between the downtown and adjacent neighborhoods Standards for New Commercial Buildinqs . 1) The size, scale, massing, setback, and facade materials of new construction will complement the architectural character of historic buildings. 2) New construction shall be oriented to front on and relate to the street so that the intersection of the facade and the sidewalk will be a place of intense interaction; corner buildings shall be designed with two street facades and a main entrance on both elevations. 3) Buildings on Third and Oak streets will maintain a consistent setback at the front property line; new commercial development west of the railroad tracks and on the edges of the downtown district may be "pulled back" from the sidewalk to promote visibility and to increate comfortable, functional, and aesthetically pleasing outdoor spaces. 4) The maximum height of new construction shall be two stories, except on corner lots where three-story buildings may be appropriate. 5) The ground or street level of a building shall be visually distinguished from the upper level(s). . 6) In new construction, 70% or more of the total surface area of exterior walls exposed to public view shall consist of a mixture of two or more of the predominant downtown finish materials (clay brick, stucco, natural stone, ornamental concrete, or extruded metal storefront framing); except for portions of exterior walls not visible from the public viewshed, exterior 2 walls shall not be covered with metal panels, EIFS (exterior insulation & . finish system), vinyl siding, faux half-timbering, logs, shakes, shingles, exposed aggregate, or poured-in-place concrete; pre-assembled clay brick panels, artificial stucco, decorative pre-cast units resembling stone, and other modern materials that convincingly match the appearance of historic materials may be appropriate. 7) Transparent glass will comprise a minimum of 50% (but shall not exceed 75%) of the total wall area of the first floor elevation on the primary facade; transparent glass or facade openings shall comprise a minimum of 20% (but shall not exceed 50%) of the total wall area on the upper floor elevation of any street facade; upper-story windows will be vertically proportioned and have the visual appearance of traditional double-hung sash; blank, windowless walls will be avoided wherever possible. 8) New commercial buildings shall solidify the relationship between old and new buildings and support a human-scaled, street-oriented downtown environment; infill construction on side streets will designed with architectural features evocative of pre-World War" prototypes. 9) Large, monolithic "big box" type buildings will not be allowed; the massing and bulk of new buildings will be mitigated by varied massing and proper articulation of street facades; large commercial buildings will be designed . to appear as multiple storefronts. 10)Standardized corporate or "trademark" commercial building types will be discouraged. 11) Imitation of historical styles will be discouraged in new construction and renovation of existing buildings; references to historic architectural styles and periods will be interpreted in a contemporary manner; new and renovated buildings will reinforce and not compete with heritage landmark properties. 12) Required off-street parking shall be provided by spaces at the rear or sides of a building, provided with architecturally compatible security lighting, and screened with landscape buffers or low walls; underground and structured parking will be encouraged and new parking structures will be compatible with (but not indistinguishable from) adjacent buildings in terms of height, scale, massing, and materials. . 3 . J.~'t\. 7~ ~\ '<3 ~ I ---_ ,,. ... \~. $ \0,," \ .:, ." ~ /. '< " 'It ...'" '~.~~".\'" Workshops, Training & Networking · Tina Hansmeier attended the Chamber Business After Hours Event at Gossips Bar & Grill . Lisa Dargis attended the NDC Economic Development Finance Professional Course ED202 · Tina and Lisa toured the new Farmington High School · Tina participated in the ICMA's Real Life Strategies to Create a Sustainable Community Audio Conference Fartnington Econotnic Update Economic Development Staff Report July 28, 2008 Volume 12 Bugaloo's Ice Cream Shoppe 'Ii' - /. lIQ.... '. ~~: ~ l .,~.: '- ii! - Ii:~..' ,.~, '",~ ~ - .:;l". ,: 'Ii.' 1....,,_ .. eO --......._ _ .... .I . 21.. _ . ....,'" . ~): -..... ....,.,.-....... ~ 1 r~... ---:_ - 111'''-- --'.c::Ii!l;lii' f~l~'"";iiiiiiFlrr.::=:"-~-r""""'-" '"1 ~~"'4 ..,.....~~,:-~~~.. :........v, ~'th \ -., . 'i. -~~!"'t..71"~I' '.....:~ ~~.~. - .. .------ . -..... ~'" . , , .. '-.. -.~ . lAf!!!ll~ :.... Ji!--;-~,;"'-'-""..J2 ',' "; .. n .-. ~ filii. _ "P" _..._~ --. .......~ ~'... -- --- 'J - ......._-~- Looking for somewhere to cool off 1 ~.';.<."~" a, iii. .-:-:- this summer? How about treating I ~..' I'.' P "<il' - . .'-::.: "~I yourself to a visit to Bugaloos in - , ~" I')~'.""':' Downtown Farmington? You'll find "'J =-:=: ~ ~:._. enough flavors of ice cream to I e;' j satisfy any taste. They also offer a . lunch menu and carry a wide selec- tion of candies and gift items. Bugaloos is located at: 342 Third Street (651) 460-3085 FarmiBDslNESdS I, 6\ r'r',,:" ,-- ~f:1i-.~ , a' ~ Q)r~- ~o .~ ..~ ~ . b . i200B a: _ You may have noticed Bugaloos Ice Cream Truck at local events Business Guide Economic Development Staff have recently created the Farmington Business Guide. The publication lists the retail, service and dining establishments in Farmington. Look for your copy to arrive soon. Please review the listings and contact a staff member with any updates or changes to information, or if you would like to receive additional copies. Staff contact information is listed in the blue box to the left. Pa~e 2 Farmington Economic Update Prairie Centre Progress Land Company recently received a Preservation Award from the City of Farmington's Historic Preservation Commission for their preservation of the Historic Loftus House, which is now known as Prairie Centre. The turn-of-the century farmhouse is located at 18556 Pilot Knob Road just south of Super America Gas Station. The Centre is currently home to the four businesses featured on pages 2 and 3 of this month's issue. - FARMERS' David Story 651-463-9692 www.farmersagent.com/dstory . .lJA ;:_._~~~~'": 1;1(."'." ,,\'<," ., r2I ) \., .. i" ..{r ~ r~' 'N' I ",1 /. ." ,r~ ".. . I .. -.,.' I ~f I~l \ ^'~ ;( tq . ~!~~. ~ ~.! t ~ M " Sherring Hands Massage Sharing her gift to change people through touch is the basis of Sherry JaclA's business. Trained in Swedish-based ma!P!ge and practicing in Farmington for over seven years, she offers traditional massage services, hot stone therapy, raindrop therapy, and pres- sure point massage. Sherry hopes to be offering Belivei Facial Massage and Waxing services which uses all natural products by this fall. Each session is created based on individual needs and lasts anywhere from 30 to 90 minutes. Sherring Hands is open by appointment only. (651) 463-7916 or (651) 263-1349 , ~ j ~ Farmers Insurance David Story Agency David Story has been a Farmer's Insurance agent for over twenty-one years and has been practicing in Farmington for the last six. He offers insurance produc.r Auto, Home, Life, Business and much more. He is also a Registered Represen e with Farmer's Financial Solutions, LLC and is a Loan Officer with Five Star Financial Services which has enabled him to assist his clients with their lending needs for the last eight years. Contact David for more information about how his agency can help you. (651) 463-9692 or (612) 990-0044 www.farmersagent.comjdstory Page 3 . Light of the World Church . . Integrity Chiropractic Light of the World Church began worship services in late 2007 at North Trail Elementary School (they are currently worshipping at the Farmington High School for the summer months). The church is self described as a place where they are serious about having fun and where all are welcome. Pastor Deb Stehlin leads services for the roughly 200 member church community. For more information re- garding worship times, or for information about their mission and programs please see their website at www.lotwl.com or call the office (located in Prairie Centre) at (651) 463- 7001 Dr. Mike Fink of Integrity Chiropractic moved his practice into Prairie Centre in the fall of 2005. Integrity Chiroprac- tic treats conditions ranging from sports and auto accident injuries to pregnancy related back pain. They also offer exercise and nutritional counsel- ing. Dr. Fink has recently added cus- tomized nutritional planning with the use of the Biomeridian Nutritional Scan. For more information regarding their services please see their web site at www.integritychiro.net or give them a call at (651) 428-2247 Page 4 I Trinity Care Center . Trinity Care Center started as a 24 bed nursing home in 1965. In 2008 they completed their most recent expansion and currently have a total of 65 beds. This most recent expansion area is not your traditional nursing home. Complete with an indoor park and plaza area, the new wing offers residents a unique envi- ronment that has been dubbed "Cottages on Main". Offering front porches and predomi- nately single occupant rooms, the new area is an inviting alternative to more traditional nurs- ing home designs. For more information about the Center visit their web site at www.sfhs.org or contact them at (651) 463-7818. Located at 3410 213th 51. West. . I ~@5 I . Trinity Terrace Also part of the Trinity Campus in Farmington is Trinity Terrace. Offering 1 and 2 bedroom apartments, the facility offers independent living with services. Residents can take advantage of the many amenities offered for free or choose additional services that are offered for a fee. You can stop in and tour a model to see their beautiful, modern environ- ment. There are currently units available for lease. Contact Marsha for more information. f I"'"' . De!!.!!!"!.! ~".1!'C~:';j~',,";;;::;;;;;~ .'. ;~_->c--:;:-- .-- ~~- -~:-.., ---~~ f!!I ~; '." ....~. . www.sfhs.org Mark Phillips After four years in the insurance business, Mark Phillips has made the transition to practicing as an independent insurance agent. With over 75 companies to choose from, Mark can compare products to find you the best rates for auto, business, worker's compensation, general liability, employee practice or any other commercial or residential insurance need. He is conveniently located in the same building as Janie's Home- Team REALTORS@ in Downtown Farmington. Dolliff Insurance 331 Third Street (952) 593-7415 or (651) 587-2888 mphillips@dolliff.com Page 6 ~ =:---= . 7 Stylists and a Barber... In business for over 20 years, Farmington Barber & Beauty offers complete salon services including hair cuts, perms, custom colors featuring Aveda color line, waxing and manicures. They have recently added esthetician services including facials and other skin care procedures. Owner Doug Klemenhagen was recently appointed to the Minnesota Board of Barbers and Cosmetologist Examiners. Pay them a visit and check out their complete line of Aveda Products. Farmington Barber & Beauty is located at: 324 Third Street (651) 463-4700 www.farmingtonbarbers.com Dakota County Technical College Small Business Resources There is a resource available to small business own- ers in our area that you may not have been aware of. The Small Business Development Center (SBDC) at Dakota County Technical College's Institute for Busi- ness Innovation & Entrepreneurship in Apple Valley offers programs and resources designed to help your business succeed. From free individual business counseling to customized training, the SBDC can help. The Institute also offers space for entrepre- neurs as part of the Strive Business Growth Center. There is a wealth of information available on their web site or you can call them directly at : (651) 423-8600. www.dctc4business.com -' ~~~Jt ~ ~ ~ j ~ ~ . ~ 1J.~;J~~~.I=r!-IJ;,J:,:, ~/ RUSIN ESS. ;~RNovX'TI~~~:;'''~ Si ENifREP.REN EURSHIP j , Page 7 - I . . Spruce Street Construction has begun on the reconstruction of Spruce Street between Second and Fourth Streets in downtown Farmington. The project is anticipated to be completed by late September or early October of this year. There is still access to the businesses located on Third and Fourth Street including the Dakota County Library. For information on detour routes and how to access these locations please see the City of Farmington's road construction link at: www.cLfarmington.mn.us i ~ I ~ ~ F City Hall The New Farmington City Hall is nearing completion. It is anticipated that city staff will be operating in the new facility as of Monday, August 25th. The City Hall Offices will be closed on Friday, August 22nd for the move to take place. The future use of current facility has not . yet been determined. The City Council will be exploring options and receiving input at a workshop to be held on Monday, August 11th at 6:30 p.m. Construction Update .; .:.J:- ~:~ :~. -=-. Highway 3 Highway 3 has now been closed for construction of the roundabout at the inter- section of TH 3 and 190th Street. The road will remain closed until September 30th. Access is still open to the businesses located in Tamarack Ridge Retail Center. Detour information is available on the City of Farmington web site at : www.cLfarmington.mn.us ..~' ~ l' , o!J '; c', ffi' ~~~f ~I .~ .....,,2 ~ -:---. Pae:e 8 Farmington Economic Update Twin Ponds - Front Elevation You may have noticed construction taking place on the east side of Highway 3 near the Mini Smart conve- nience store. The CDA has begun grading for their Twin Ponds development. The first phase of development will consist of 25 rental town homes. Watch for more information and details in next month's issue of the Economic Update. _ ~ 98 'oN l!WJed NlI\I 'UOlOU!WJe:::l Ol'v'd 38'v'.lSOd 's'n pJepuelS jJoseJd ~<,\.,.;;;;.:~ S>!' . ~.., ~ J -- ~o\ lit \ l~ .~" i?) \~ ~j ~JVH~~~/ ,------y j j ~ J ~ I ~ pelsenbet:j e:::>!I\.Jes sseJpp\f vZOSS NW 'UOJ6U!WJe:J- l JaaJJS >tea SZ~ uOJ6u!wJe:J 10 ~!::> I . Essential Information For Downtown Revitalization Vol. 55, No. 13 . July 1, 2008 Clean & Safe Programs promoting safety and partnerships downtown are working . At a time when more people than ever are coming to downtown Boise, ID (pop. 185,800), to enjoy the active night life, crime is actu- ally decreasing. It's the result of concerted efforts between down- town, the city, and the police department. Even more impressive is that crime hasn't simply been displaced to the surrounding neigh- borhoods, it's decreasing through- out the core and adjacent areas. Before a slew of effective actions were organized, crime had posed an emerging threat to down- town's safety and quality of life. Beginning in early 2005, the Down- town Boise Association (DBA), Boise Police, and the Office of Mayor David Bieter began focusing on creative solutions to recurring issues that citizens were starting to notice in the downtown core area, namely more congested sidewalks, pockets of extreme traffic conges- tion, and a perceived increase in violent crime. In 2006, the Mayor's office for- malized the problem-solving with (Continued on page 2) Business Recruitment & Retention Revitalization begins with research and helping current businesses to improve . Unlike a redevelopment project, which replaces or rehabilitates old buildings in the hope of luring new occupants, often with no real plan for how the new buildings will be used or how to attract occupants that will be successful, a revitalization plan restores viability to a business district through employing strategies that energize economic activity. The focus, then, is not on buildings but on business recruitment, business retention, and destination marketing. Such a revitalization plan is currently in the works for Orange, NJ (pop. 32,870), where the down- town revitalization consultant, JGSC Group LLC, has been con- tracted to complete a plan to revi- talize downtown's three main business corridors. "We are seeking a comprehen- sive approach to stimulate business growth in our shopping districts," says Marty Mayes, City of Orange (Continued on page 4) Three key elements for "Mommy Niche" Mothers make up a large segment of the consumer mar- ket, and making downtown attractive to them is key to tap- ping this customer base. Among the key factors in strengthening the "Mommy Niche": · Enhance convenience. This includes easy-to-cross streets, public restrooms, and a stroller-friendly environment. · Broaden activities. Family-friendly restaurants and learning centers such as dance or karate studios allow for quality time together. · Network. Cultivate rela- tionships with local mothers. Hold focus groups with them or arrange discussion groups between downtown business operators and local moms. Source: DANTH Inc., www.danth.com Inside this issue Bar owners play key role in public-private partnerships improving safety. . . . . . . . . . . . 3 Carrots and sticks to herd the cats: Incentives and code enforcement. . . . . . . . . . . . . . . . 5 New walking and biking trails will enhance old downtown. .. 6 Bringing a Silicon Alley to your downtown. ...... . . . . . . . . . . 7 @ 2008 Alexander Communications Group, Inc. All rights reserved. ISSN 0012-5822 Downtown @ Idea Exchange A publication of the Downtown Research & Development Center 712 Main Street - Suite 187B Boonton, NJ 07005-1450 Phone: (973) 265-2300 . Fax: (973) 402-6056 Email: info@DowntownDeve1opment.com Web site: www.DowntownDevelopment.com Editor Paul Felt, ext. 119 pfe It@DowntownDevewpment.com Customer Service Mary Pagliaroli, ext. 101 mpag liaroli@DowntownDevelopment.com Reprints and Permissions Mary Dalessandro, ext. 103 mdalessandro@DowntownDevelopment.com Publisher Margaret DeWitt, ext. 106 msdewitt@DowlltownDevelopment.com Downtown Idea Exchange@ is publisbed twice monthly by the Downtown Research & Development Center. The Center provides news, infonnation and data for success- ful downtown revitalization through its newsletters, books, reports, and website. ~) Alexander Communications Group " @ 2008 Alexander Communications Group. llU:. All rights reserved. No pan of this pub- /icatian may be reproduced, stored in a retrieval system.. or transmined in any form or by any means. electronic, mechanical. photocopying or otherwise, withour the prior wrinen pennission of Alexander Communications Group. 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 ~ MAIL: 712 Main Street - Suite 1878 800nton, NJ 07005-1450 be FAX: (973) 402-6056 W PHONE: (973) 265-2300 @ EMAIL: info@DowntownDevelopment.com . North America, $227. Elsewhere. $257 (includes airmail delivery). Programs promoting safety and partnerships downtown are working - continued from page 1 the creation of the Mayor's Down- town Safety Task Force, whose members include representatives of the Boise Police Department, DBA, city attorney's office, city clerk, the county highway district, Capital City Development Corporation, and the Alcohol Beverage Control divi- sion of the Idaho State Police. "This has been a total coopera- tive effort," says Michael Masterson, police chief. "We have to include several major strategies when we talk about what's been successful. Without one, the others may not have worked nearly as welL" Regular safety meetings to share concerns, ideas First, for the past three and half years, downtown bar and restaurant owners have met regularly with Boise Police and Boise City attor- neys through the DBA, and the Mayor's Downtown Safety Task Force, to air concerns and discuss ideas and solutions. This open, con- tinuous dialogue has built relation- ships and promoted open, honest discussion on issues where all have a common goal - a healthy and vibrant downtown. "We brought people to the table to start talking about trends they were seeing, things that we could improve, and talking through what it means to the businesses," says Karen Sander, executive director of the Downtown Boise Association. Most of the series of meetings over the last few years had to do with how the business owners could do some things differently, she says. The meetings also provided a forum to establish a relationship between city hall, the police, and . the business owners. "That relation- ship is incredibly important," she says. "In the past, when there was not a relationship, it was more of a confrontational situation versus, 'Let's work together so that we can resolve something.''' Out of those conversations, downtown saw a good effort by its bar owners to step up their efforts to do ID checking. Voluntarily, many of them also began participat- ing in alcohol server training for new hires. Since 2005, ongoing training to educate bar and restau- rant employees on the responsible service of alcohol has been provided through nationally certified trainers through a state grant with the assis- tance of Boise Police and the Alco- hol Beverage Control division of the Idaho State Police. This training is something that the DBA seeks to make mandatory. . Narrow sidewalks, bar entrances, street vendors didn't mix Downtown also looked at where crowds gathered after hours. "We've got a historic district where a lot of our bars are, and very nar- row sidewalks," Sander says. "We realized that that was a situation where fights would be possible." Or rather probable, due to the presence of street food vendors making the sidewalks in front of the bars even more crowded. "You had this overcrowding on the sidewalks that was just creating conflict. People couldn't tell who was in line for the hot dog vendor and who was in line for the bar," she says. Mixed with alcohol, the confusion often led to physical altercations causing property dam- . 2 Downtown Idea Exchange . www.DowntownDevelopment.com July 1, 2008 . . . age to neighboring businesses. "We had a couple of windows that kept on getting broken out because there was a hot dog vendor right next to a big plate glass window. Every time there was a fight, somebody would end up in the middle of the store window." So in early 2007, the city relo- cated street food vendors to across the street from bars, to locations that didn't have a bar entrance in close proximity. That eased side- walk congestion, and the potential for fights and assaults. "Initially, the hot dog vendors really, really fought going across the street. We just didn't have a choice. '" We've seen a huge decrease in the number of fights, and the most positive thing is the crime rate has gone down." Regular safety meetings to share concerns, ideas "Bring everybody to the table, talk, and collaborate. You're not in it by yourself. It has to be a collab- oration," Sander advises other downtowns addressing similar Bar owners can also play key role in public-private partnerships "The downtown bars and restaurants have been more than willing to work together with City Hall and the Boise Police Department to keep downtown safe," says Karen Sander, executive director of the Downtown Boise Association. In addition to those mentioned in the accompanying article, the following problem-solving initiatives were used with good suc- cess in downtown Boise. · Increased street lighting: The DBA, through a Boise City Neighborhood Block Grant, installed 12 vintage-looking streetlights in a historic area where poor lighting had been a factor in chronic problems. That's enhanced the nighttime safety of downtown visitors walking to and from their cars. In addition, some downtown business owners voluntarily installed additional lighting in the alleys behind their establish- ments. The additional lights have been credited with decreasing fights, assaults and urinating in public. · Voluntary elimination of "all you can drink" spe- cials by downtown bar owners: "All you can drink" specials were cited as one cause of excessive drunk- enness that contributed to problems. Especially late at night, those specials were "adding fuel to the fire" of downtown rowdiness and unruly behavior, Sander says. All bar owners voluntarily did away with this type of promotion, which wasn't a good business model for them to begin with and was clearly causing problems associated with over-service. The city is now looking at other city's ordinances to come up with an ordinance of its own that would legally pro- hibit or restrict such dangerous gimmicks. · Voluntary elimination of "after hours" venues by downtown bars and restaurants: The bar and restau- rant owners' elimination of closings that were as late as 4 a.m. has helped decrease problems caused by lingering patrons who had been drinking heavily. July 1, 2008 · Passage of new taxi ordinance: In early 2007, the city enacted a new ordinance that has calmed traffic congestion around a key intersection by des- ignating a nearby taxi zone for pick-ups and drop- offs. The taxi zone is one block over, in a bus lane not used at night. Before the ordinance, taxis would circle endlessly, and sometimes provoke road rage when they would stop for passengers and block the flow of traffic. The city continues to work with taxi- cab and business owners to identify other safe, con- venient taxi zones. · Additional leisure night police patrols: A dedi- cated directive police patrol works with downtown bars and restaurants on Friday, Saturday, and other busy nights. In June 2007, downtown patrols added bikes to the foot and vehicle patrols. The bike patrols allow officers quicker response to parking lots and alleys, and faster mobility through congested areas. "There's always a [police] presence. The visual [deterrent] is really important," Sander says. · Safety updates to the sidewalk cafe ordi- nance: In early 2007, the City modified the sidewalk cafe ordinance that allows cafes to stay open until 2 a.m., but now eliminates service of alcohol in glass bottles after midnight. Outside tables also need to be bussed promptly. This has decreased litter and injuries caused by glass bottles on the streets. · Educate incoming college students about responsible drinking: The owner of one nightclub worked with Boise State University and the police to produce a public service video for the university's first-year students, based less than a mile from downtown. "So the new students, as part of their introduction into the community, get to learn a little bit about downtown as well as responsible drinking." Downtown Idea Exchange . www.DowntownDevelopment.com 3 safety issues. "You have to get the bar owners and the police at the same table. They have to work through this together." How hard that will be to do all depends on the city and its history. "In our area, we certainly felt it was 'us against them.' Bars were considered the bad guys because they were serving alcohol, and we had to get beyond that," she says. "Change is always difficult, but as we started talking through it, we had some bar owners that had huge success, especially with server training. When you're in the busi- ness of selling alcohol, your liabili- ty is incredibly huge. And they just realized that protecting their own businesses is in their best interest. With things like over-service and not checking IDs, the fines are just not worth it. So for them, it's more of a benefit than not. Taking care of business is utmost for them so they can stay in business." Contact: Karen Sander, Downtown Boise Association, (208) 472-5250, ksander@downtownboise.org, www. downtownboise.org. . . Revitalization begins with research and helping current businesses to improve - continued from page 1 director of planning and economic development. "We want to im- prove upon the steps we have taken to date and go to the next level. Our streetscaping improve- ments, Urban Enterprise Zone and Main Street designations, and other business incentives all need to be combined with a professional analysis that will concretely move us toward our goals." Trends have turned more favorable for downtowns For the last 50 years or more, downtown Orange has struggled to be competitive in an ever-changing retailing environment, observes Mark Lohbauer, a general partner of the JGSC Group, who is over- seeing its revitalization plan for Orange. "But the good news is that their fortunes are looking up now. Because more and more, people are becoming interested in not only shopping in a downtown setting, but also thinking about living and working in a downtown setting. They're getting to a point where it's becoming increasingly difficult to try to commute long distances to a job, because of the high cost of gas, the traffic congestion, and the nuisance that's involved with that," he says. "The same thing with regard to suburban living. When you're living out in the suburbs, you've got to drive everywhere, for everything that you do. As a result, downtowns like Orange are seeing that there's a renewed interest that people have to shop, eat, work, and live there. What we're doing is trying to help the City of Orange capitalize on that renewed interest, and put them- selves in the best possible posi- tion to capitalize on it." First, support the businesses already downtown Retention has everything to do with doing things to support the businesses that are already in downtown. For example, the busi- nesses in each of downtown Orange's commercial corridors have always gone their own way in marketing themselves. "We should try to treat each corridor as a manageable area, instead of a collection of individual stores or restaurants that are islands unto themselves, which is the way they've normally been viewed," Lohbauer says. "We should try to say, 'We are Main Street, and this is what we have to offer.''' Promoting the main corridors of downtown as diverse shopping and dining destinations unto them- selves, he says, will help retain the businesses already there. This will include, for example, coming up with collective advertising and marketing programs that will cap- . ture some of the people that are routinely in the area on holidays. Identify, provide technical assistance to at-risk retailers JGSC is currently meeting with merchants in downtown and examining their businesses and properties, in order to make rec- ommendations as to whether or not they are presenting the best possi- ble appearance that they can to make shoppers interested. For example: · Could the store's sign age be more effective? · Could its window displays be more effective? · Could its product offerings be more relevant and in step with the times? Another excellent retention practice is helping businesses to . develop customer databases. Some businesses could already do that, 4 Downtown Idea Exchange . www.DowntownDevelopment.com July 1, 2008 . which presents cross-marketing opportunities. "If we can develop that information with local mer- chants right in Orange, we can share that information with the other merchants," Lohbauer says. "We try to share the bounty of those customers. Because if we know there's a customer we can draw from 10 miles, it's so much easier to try to get them to come another hundred feet to another store." . Take stock of retailers and spaces in the mix In business recruitment, "you want to make sure that the retailers that you're recruiting are, number one, retailers that you need. They're in categories that would be sustain- able and important to have in your marketplace, and that's something that you can only do after a lot of analysis," Lohbauer says. That means identifying what kinds of businesses downtown has as well as all the vacancies it has, including the size and particular building features of each available space that could accommodate a new kind of retailer. . Examine and survey downtown's trade area Then it's time to examine downtown's trade area for its buy- ing power. "What are the kinds of retail categories that this market- place could support, based upon the demand that's been identified by the people who live there, their ability to spend, what level of dis- posable income they might have, and factors like the percentage of families with small children?" JGSC will be doing this research for Orange, including a survey of the city's residents and shoppers to find out: · What residents and shoppers like about downtown's three commercial corridors, and what they don't like? · What stores are their favorites? · Which stores they don't like? · Which stores they wish were located on the main street that are not there now? "We'll go through a pretty extensive survey that will ask for those preferences, and we'll overlay what people tell us they would like against what the data about their purchasing habits tell us they actu- ally support. We'll get what some- times appear to be contradictory comments in a survey response until we're able to analyze what they mean." Surveys will be dis- tributed in stores for mail-in responses and conducted online. After downtown Orange has been successful at making its existing stores better and recruiting an optimum mix of new kinds of stores and restaurants, it will then be well-positioned to do destina- tion marketing and implement a very comprehensive plan for con- tinuing to improve itself as a place to be and do business. Contact: Mark Lohbauer, lGSC Group, (856) 661-0008, mlohbauer@ jgscgroup.com. . Carrots and sticks to herd the cats Incentives are typically necessary to encourage businesses to upgrade the outer appearance of their stores. "Typically, incentives are the ~ing to do in order to make it easier for merchants to do what you woulctiike them to do," says Mark Lohbauer, a general partner of JGSC Group. "Unless you also have the threat of a stick lurking behind, you're never going to capture everyone with the carrot of an incentive," he adds. "Because there are some folks who just don't care, who will sit back and watch everyone else do the hard thing and layout the expen- diture, figuring, 'Ultimately I'll profit by what they're doing, and I don't even have to invest anything. I'll just enjoy the extra customers that are coming in because the other guys are doing things.' "That's not fair, and in any program that we recommend, we always do it on a carrot-stick basis. We say, 'Offer whatever carrots you can to try to make it easier for the merchants to come along and do what you would like them to do. But in the end, know that after you've given them plenty of opportunities to take advantage of the carrots, they have to know that the city will use a stick to enforce to the maximum extent it can against those merchants or property owners who are neglecting their businesses or properties. Because it's only fair to the ones who work hard." The best stick, which every municipality has at its disposal, is code enforcement. "And in order to be able to use code enforcement as a stick for stores, you have to have a zoning ordinance in place that's very specific about what you allow and what you don't," he says. "That specifies even what business uses you will permit, so that you don't wind up with undesirable business uses that may drag down your abili- ty to have a really vital, effective business corridor." July 1, 2008 Downtown Idea Exchange . www.DowntownDevelopment.com 5 Walking and Recreation Coming soon: Walking and biking trails through downtown's historic district A combination walking and bike trail will be constructed by the city next spring in historic downtown Natchez, MS (pop. 18,460). After nearly two years of grant-writing and fundraising, the first phase of the Natchez Trails Project is now fully funded with a budget of $2.9 million. The goal of the project is to create a healthy, informative, and enjoyable way to experience the heart of this historic riverside downtown. The project will consist of two distinct trails totaling 5.6 miles in length: the River Front trail and the Historic Downtown trail. Both trails will originate and conclude at the landmark Natchez Gazebo in downtown's Bluff Park overlook- ing the Mississippi River. The two main trails will consist of multiple routes that traverse sections of the central business district, riverfront, and surrounding historic districts, and emphasize points of environ- mental and historic interest along each route. The River Front Trail will consist of three separate routes that highlight the topography of the bluffs. Relaxation areas, kiosks, and shaded benches will be fur- nished for the entire length of the 1 I=:J 1 Web Extras I=~-\'.JD To get a sense of this pro- ject's own history, read the many let- ters supporting it back in September 2005 by visiting www.Downtown- Development.com and clicking on Web Extras. 6 walkway, plus designated lighted areas for safety and security will be provided. The lower and upper routes will provide restroom facili- ties as well. Museum of the Streets high- lights downtown's rich past The Historic Downtown Trail will comprise two distinct routes. Color-coded directional arrows on the sidewalks will mark them. An additional feature of the downtown trails is a Museum of Streets that will be made up of informational kiosks containing before and after photographs of period streetscape scenes along each trail. This Museum of Streets concept will show a glimpse of the past viewed by vintage, turn of the century photographs as compared to the present as seen from the user's vantage point. The trails will utilize existing sidewalks and lighting where pos- sible, and modifications will be made to existing sidewalks where changes are required. For exam- ple, existing sidewalks along the bluff will be widened to a width of 10 feet to accommodate bicy- clists. Trails where existing side- walk is not presently available will be constructed of a combina- tion of concrete, asphalt and/or crushed limestone, accented by landscaping. Where new lighting is required, it will consist of period- style lighting designed to match that of the historic downtown. Each trail will also furnish informational brochures to inform walkers of items of interest along the route, the Museum of Streets, and the particular route they are on. The brochures will be placed at the downtown visitor center, convention center, and other area locations. . Many benefits cited for new trails The city and county expect this project will help enhance the area's quality of life by providing a means to access the Mississippi River frontage, which was recently reclaimed by the U.S. Army Corps of Engineers. Additionally, other areas of the river trail will be usable once again since these areas are currently highly vegetated. The historic downtown trails will also present the opportunity to explore Natchez's rich heritage and history as never presented before. The creation and daily use of these trails will help main- tain the area and preserve the his- torically significant areas along each trail. . Funding comes from many sources The primary source of funding is a $2 million grant from the state department of transportation. Government support also came from the state legislature, which provided $275,000, Congress, which earmarked $218,000, and the National Park Service, which gave a $25,000 Lower Mississippi Delta Initiative Grant. There was also $380,000 raised locally to help pay for matches for some of the grant monies. Contact: David Gardner, PE, Superinten- dent, Natchez Water Works/City Engineer, City of NatchezITrails Project Leader; Natchez/Adams County Conununity Alliance, dgardner@natchez.ms.us. . . Downtown Idea Exchange . www.DowntownDevelopment.com July 1, 2008 . Technology Bringing a Silicon Alley to your downtown through assets, incentives e As downtowns tend to have cul- tural assets galore and often college or university assets too, they are prime places for technology compa- nies to locate and recruit the type of gifted, sociable, college-educated, and creative-thinking employees they need. That said, incentives can be effective in tipping the scales toward downtown for start-up entre- preneurs deciding where to locate. For example, the vision of the Harrisonburg Downtown Technolo- gy Zone (HDTZ) is to grow jobs and strengthen the economy of Har- risonburg, VA (pop. 40,470), by clustering information technology (IT) companies in the central busi- ness district and giving them the support they need to succeed. The initial phase of the HDTZ focuses on the integration of IT businesses within existing build- ings. The idea is that the zone's members will collaborate, connect, and attract other IT firms from out- side Harrisonburg to relocate to the downtown, in the process attracting other kinds of support businesses, shops, and attractions. Led by the city's economic development department, the Har- risonburg Downtown Technology Zone's management team established a networking environment to facili- tate members collaborating on pro- jects and technology development. In addition, the management team orga- nizes and hosts regular business assistance seminars and workshops for its members. The management team also connects its members with other support organizations, universi- ties, and technology companies from whom they could benefit. . Meanwhile, partners and spon- sors of the program gain greater exposure in the information tech- nology market sector, while enjoy- ing access to an entrepreneurial community, and the downtown ben- efits from a stronger economy and broad attention through the success of companies located there. "A big part of our community's economic engine is James Madison University, and they're located about a mile from our downtown. What we found is that there are a lot of graduates that would love to stay here in this part of Virginia, and we wanted to go about creating an environment to entice them to stay, start their own businesses, and create a real technology cluster in the downtown," says Brian Shull, economic development director, City of Harrisonburg. Incentives make downtown a logical choice So to help foster that, the city created the Harrisonburg Down- town Technology Zone, spanning the mixed-use downtown core, where the following incentives are available: · A reduction in sales taxes on equipment to get up and running for one year. · A three-year exemption on the business, professional, and occupational license tax, meaning a three-year break on the gross receipts tax. · For businesses building their own facility, an exemption on the water and sewer connection fee. There's also a property tax break for businesses moving into a struc- ture of at least 25 years of age that's being rehabilitated, renovat- ed, or replaced. · The city also helps HDTZ ten- ants secure tax credits through fed- eral and state assistance programs. As a mixed-use zone, the downtown core lends itself nicely to the technology sector's small professional offices and people liv- ing downtown where they're work- ing, Shull says. The Downtown Technology Zone was adopted in 2005, and 13 small technology firms today call downtown Harrisonburg home. Quite a few of those are start-ups formed by recent graduates. There's also one very big firm based down- town that was formed by James Madison University professors, Rosetta Stone Language Learning Software, which is approaching 500 employees. The HDTZ has made downtown a much more vibrant environment, active around the clock. "We're finding that a lot of the technology workers really like to live in or close to downtown. So more restaurants are popping up, and more residential units are being developed, which helps strengthen our revitalization efforts downtown," he says. What advice does Shull offer other downtowns contemplating a technology zone? Spend time talk- ing to the local graduates and learning what would really entice them and be meaningful incentives to make them want to stay. "Make sure you go out and see what it really is that will make them come. Don't try to guess what they want. Find out for sure what they really need." Contact: Brian Shull, City of Harrison- burg/Downtown Technology Zone, (540) 432-7736, brians@ci.harrisonburg. va. us, www.hdtz.org. . July 1, 2008 Downtown Idea Exchange . www.DowntownDevelopment.com 7 Eminent domain discour- ages business growth In recent years, eminent domain has become an increasing- ly popular (and controversial) development tool. Any downtown considering this approach should keep in mind the following from Clarksville Online, a virtual "pub- lic square" to share opinions and information about Clarksville, TN (pop 103,500). A columnist iden- tified these problems associated with the threat of eminent domain: · It discourages other redevel- opment because entrepreneurs are reluctant to invest in a business that may be subject to eminent domain. · It drives away established businesses. Successful entrepre- neurs often decide to move to new locations to ensure their business- es' long-term survival. · It deters new residents from renting or buying downtown prop- erties. Fewer residents means fewer customers. Regulating parking is a balancing act The owner of a glass shop in Kearny, NB (pop. 27,430), recently requested that three parking spaces in front of his business be convert- ed into a loading zone. He said customers have no easy access to the store and often have to carry large pieces of glass as far as sev- eral blocks because of lack of parking spaces. However, the downtown improvement board expressed concern that approving 8 such a request for one business would lead other business owners to ask for the same treatment. Other options included enforcing parking regulations in the area and sending a reminder letter to busi- nesses about parking behaviors. Downtown workers get free transportation It's an old strategy, but one that's taking on increased signifi- cance with today's high gas prices. The city of Chico, CA (pop. 59,950), provides downtown business owners and employees with free passes for all city and county buses. The faculty, staff, and students at California State University's Chico campus also receive free bus access. Employ- ees can get the passes at the . city municipal building by provid- ing a recent paycheck stub and identification. Students just need to show their student LD. to the bus driver. Town-gown program to pay off in engaged students The University of Auckland's $220-million Owen G. Glenn Building, the new home of the uni- versity's business school, is the result of the former vice-chancel- lor's seven-year-old "Knowledge Wave" project, which focuses on town-gown relationships. Just as important to downtown as the new building is the business school's enlarged focus, which aims to inspire students' entrepreneurial spirit and help them connect with the surrounding businesses. . . Noise pollution as bad as street litter More and more, leaf blowers are being used to clean trash and dirt from sidewalks and streets. But be sure to consider how downtowners might feel about it. A resident of downtown Mansfield, MA (pop. 23,100), recently wrote to the local paper to complain about the noise from clean- up crews using the equipment. "I could not believe what I saw - or I should say - heard tonight," he wrote. "Two City employees wearing lawn blowers on their backs walking idly down North Main Street at 12:30 a.m. blowing dust and dirt off our sidewalks." He noted, "If your objective is to make downtown Mansfield a ghost town - continue irritating your community residents like this and we too will leave." He added that a forewarning such as an announce- ment in the paper or flyers posted downtown might have made the noise more bearable. To combat such ill-will, some towns are banning the use of leaf blowers during certain times of the year. In Mamaroneck, NY (pop. 18,750), for instance, the equipment is prohibited from June 1 to September 30. . Downtown Idea Exchange. www.DowntownDevelopment.com July 1, 2008 . Essential Information For Downtown Revitalization Vol. 55, No. 14. July 15, 2008 Residential Development Residential growth is a delicate albeit critical balancing act e Residential development is central to the plans of downtowns from coast to coast, as municipali- ties are figuring out how to best welcome more of it into the mix. Doing that well in a downtown is never simple. Residential development is rife with complex planning and policy considerations concerning afford- ability, design, parking require- ments, quality of life issues, and balancing mixed incomes as well as mixed uses against brute market forces. r I t I In downtown Missoula, MT (pop. 57,050), one of the shapes of things to come is a new luxury apartment building called the Uptown Flats. It features granite countertops, an elevator, hardwood floors, gated parking, a security entrance, a private fitness room, private balconies, and an Owner's Lounge and Deck. Studios start at $154,900, and one-bedrooms at $163,900. To people from much larger population centers, that probably (Continued on page 3) Walking & Recreation Walking trails enhance downtown pedestrian, cycling activity ~ The City of Peterborough, Ontario (pop. 74,900), placed fifth in a bid for the title of "Best Walk- ing City in Canada 2008". The Canadian Federation of Podiatric Medicine hosted the contest that was open to all cities in Canada. The evaluation criteria included length of trails, area of parks, num- . ber of people who walk to work, air quality, points of interest, rate of personal crimes, and pedestrian injury rates. Key factors in Peterborough's impressive showing were its length of walking trails, number of points of interest and scenery, and low personal crime rate. Trails criss-cross downtown The city has 22 miles of fonnal, multi-use trails, mostly along aban- doned railway lines, and another 15 miles of informal yet well-trodden paths through nature areas and (Continued on page 5) Three keys to promoting biking As budget-conscious dri- vers continue to deal with high gas prices, many downtowns are seeing increasing numbers of bicyclists. There are several ways to make downtown more bike friendly. Here are three strategies successful in Europe. · Create shortcuts allowing cyclists to make right-hand turns before intersections and exempt cyclists from red lights at T-intersections. This increas- es cyclist speed and safety. · Mark bike lanes with bright colors at intersections. · Establish "bicycle streets," narrow roads where bikes have priority over cars. Source: "Making Cycling Irresistible, " John Pucher and Ralph Buehler, Trans- port Reviews Inside this issue Perspectives: Every five years, a fresh start. . . . . . . . . . . . . . .2 Transit is key to attracting downtown residents. . . . . . . . 4 Where the walking trails meet the main street.. . . . . . . . . . . . 6 Increasing parking, improving access move downtown forward. . . . . . . . . . . . . . . . . . . 6 Courts allow use of city funds for church improvements. . . . 8 @ 2008 Alexander Communications Group, Inc. All rights reserved. , ISSN 0012-5822 Downtown @ Idea Exchange A publication of the Downtown Research & Development Center 712 Main Street - Suite 187B Boonton, NJ 07005-1450 Phone: (973) 265-2300 . Fax: (973) 402-6056 Email: info@DowntownDevelopment.com Website: www.DowntownDevelopment.com Editor Paul Felt, ext. 119 pfelt@DowlltownDevelopment.com Customer Service Mary Pagliaroli, ext. 101 mpag I iaro/i@DowlltowIIDevelopment.com Reprints and Permissions Mary Dalessalldro, ext. 103 mdalessalldro@DowntowIIDevelopment.com Publisher Margaret DeWitt, eXI. 106 msdewitt@DowlltowIIDevelopment.com Downtown Idea ExclulIlge@ is published twice monthly by the Downtown Research & Development Center. The Center provides news, infonnation and data for success- ful downtown revitalization through its newsletters, books, reports, and website. ~ ~ Alexander Communications Group .J@ 2008 Alexander Communications Group. 1m:. All rights reser;ed. No pal1 of this pub- lication may be reproduced, stored in a retrieval system, or transmilled in allY fon" or by any means, electronic, mechanical, photocopyillg or otherwise, wirhout rhe prior wrillen pennission of Alexander Communications Gmup. . .' 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 ~ MAIL: 712 Main Street - Suite 187B Boonton, NJ 07005-1450 6b FAX: (973) 402-6056 ~ PHONE: (973) 265-2300 @ EMAIL: info@DowntownDevelopment.com . North America. $227, Elsewhere. $257 (includes airmail delivery). \ Perspectives Every five years, a fresh start By Lawrence O. Houstoun Jr. The number of Business Improvement Districts (BIDs) in North America with initial annual assessment budgets of less than $250,000 is probably 500 or more. Many of these small BIDs, if not most, were formed less than 10 years ago and thus have either undergone a statutory renewal process, are soon to do so again, or will be doing so for the first time. Some BID leaders believe that renewal will be easily achieved, mainly by dusting off the old ordi- nance and resubmitting it for local government approval, sometimes with a hope that the assessment rate can be increased. Many don't bother to test the waters with the local government, the assessees, their tenants, or the consumers, and are surprised as well as dis- pleased when the path to re- approval proves rough. Compared with the multi- million-dollar BIDs, why do local people bother with such seeming- ly small amounts of revenue? First, $200,000 times five years equals a lot of economic influence in a small district without another reliable, sustaining, non-categori- cal source of revenue. While most could usefully apply more funds, in context the possibilities are considerable. BIDs generally finance the first district marketing program ever. Many correctly see BID funding as an essential precondition for planning and applying capital grants. It is all but impossible to find a grant source for continuing district management. . The greatest hazard associated with the keep-our-heads-down approach is that it misses a price- less opportunity to learn of unsus- pected potential opposition to renewal, not to mention missing fresh ideas regarding programs, budgets, service area, cost sharing, and BID management and gover- nance that can come from those who are paying the bills. Where does renewal opposition typically emerge? Opponents most often are those from the less valu- able properties (who pay the least) and from properties at the edge of service areas. Despite their small value, they will receive consider- able attention from the governing body. Rarely do opponents com- plain about the annual charges; it is not exceptional for the bottom fifth of property values to pay fifty cents or less a day. More likely complaints come from those who feel left out of the process, those who claim they don't know about board meetings, don't know board members, or have seen little of the BID director. Sometimes they claim that others get greater service benefits. Recently, two opponents com- plained about what they saw as conflicts of interest where board members received contracts for BID work (and as it turned out the bylaws did not prohibit conflicts or the appearance thereof). If there is some form of security pro- gram, some will charge that the municipality should pay for these charges. The last place BID propo- nents want these questions raised is in the BID hearing before the municipal council. . . 2 Downtown Idea Exchange . www.DowntownDeveJopment.com July 15, 2008 I . How can this be avoided? Begin by assuming that selling a renewed BID will not be a slam- dunk. Surveying the constituents - including those who do not use the district's shops and services - is important, although sometimes costly. Ask: What do you like about the existing BID? What would you want in a new one? Just two community meetings can enable participants to get BID perspectives not otherwise avail- able, and BID planners to learn more about the downtown district's needs and opportunities than they could otherwise learn. The reauthorization process should be led by a steering com- mittee with broad representation of local commercial interests. The BID decision process needs to be well publicized; even the appear- ance of a secret process can derail approval. Municipal officials may not care much about how the board spends its money, but they are all experts on and concerned about democratic process. Why take a fresh look at all the important elements? First, a considerable amount of change has doubtless occurred in the past five years. It is not exceptional for a new, small BID to have had three or four directors in five years. Board members change. Owners and operators change. Economic conditions are prob- ably altered. Some BIDs began as desperate measures to save the dis- trict; today, they may be better focused on opportunities rather than problems. Perhaps it is time to change emphasis; allocating half the budget to sweeping sidewalks may not have produced the essen- tial new businesses, not so much, say, as financial incentives for store upgrades are likely to. . , . July 15, 2008 Was the first budget prepared to overcome the cost of inflation? Does the standing ordinance penal- ize adequately assessment default- ers? Do the by-laws adequately guard against political manipula- tion? Do they assure that the board and staff members are oriented to for-profit enterprises, or have they produced a not-for-profit or a gov- ernment philosophy or orientation? Would the BID function better under another state BID law? One state statute requires that an assessee vote every year, but there are other statutory options. For example, Pennsylvania and New Jersey BID laws offer a choice between government-run and not- for-profit-run BIDs. Should the state law be amended? But the best reason to start fresh is to strengthen the BID con- stituency. As with the original BID, the more stakeholders who feel they have shaped the BID, the more peo- ple who will help sell it, hence community meetings and surveys. Another good reason was given by a former Downtown Denver Partnership BID director. Reauthorization, he said, "keeps us on our toes." Lawrence O. Houstoun. ir. is the author of Business Improvement Districts. Con- tact him at lhoustounjr@verizon.net. . Residential growth is a delicate albeit critical balancing act - continued from page 1 sounds quite reasonable. However, consider that 10 years ago, the medi- an home price in Missoula was less than the cost of an Uptown Flats stu- dio, only $119,900. What's more, 78 percent of Missoula residents could not afford that median house today, at $206,600. Over the eight years from 1998 to 2006, average family incomes rose 34 percent, but median home prices rose 72 percent. To address the city's increasing affordability gap, which will be a key factor in downtown's residen- tial development, Missoula Mayor John Engen earlier this year led a community discussion of the chal- lenges presented by housing prices. About 125 people attended. Fol- lowing the presentation of a video on the issues, the mayor talked about his new Housing Initiative, in which he poses four questions the city is now working to answer: · Who needs affordable hous- ing in Missoula? · Where is housing appropriate? · What should housing look like? · How do we as a community help pay for affordable housing? The goal of the initiative is to share information, inquire about solutions, explore ideas, identify what's missing and cooperate on working toward answers. Growth plan and public support downtown housing Meanwhile, the city is engaged in several initiatives that will affect and shape downtown housing. First, Missoula is about nine months into developing an Urban Fringe Devel- opment Area (UFDA) Project, in response to the city's concerns about how the region has been sprawling. "While the title of this project is Urban Fringe, it's really dealing Downtown Idea Exchange . www.DowntownDevelopment.com 3 , with the entire community, and iden- tifying, if growth is going to occur, where should it go, and why should it go there?" says Roger Millar, director, Missoula City-County Office of Planning and Grants. "We're coming together on a preferred future [growth pattern], which shows quite a bit of residen- tial in the downtown," he says. "There's land available, and it's an area that doesn't have many neigh- bors worried about infill. That study, and the public's reaction to it, has led us to believe that there's a demand in the community for housing downtown. " Formulating goals city policy can help meet In a second important step, the city's downtown business improve- ment district has teamed with the downtown business community to hire a consulting firm and do the first Greater Downtown Master Plan. The consultants are about halfway through their study, and have recommended about 2,500 units of housing as a goal for the downtown. "The third thing we have going on is the reform of our zoning reg- ulations, to encourage more hous- ing in urban situations. Right now, it's relatively easy to build on a greenfield in the fringe, and rela- tively difficult to build in the city. If the community wants to see housing in the downtown, and if the plan calls for housing in the Ir~1 Web Extras 1- -{'uP Visit www.Downtown- Development.com and click Web Extras to see related documents from the City of Missoula Afford- able Housing Program and the Baton Rouge City-Parish Planning Commission. Transit-oriented development is key to residential growth . Residential development strategies need to consider not only how to make it easier for developers to build downtown, but most importantly, how to make it easier and more attractive for people to live there. In Broken Arrow, OK (pop. 74,860), the city's new downtown devel- opment plan requires that new structures of two stories or higher on downtown's main street be mixed-use. A strongly residential downtown is far off in the future, however, believes coucilman Craig Thurmond. What would create strong market demand for housing in downtown is enhanced transit service. In particular, a downtown stop on a proposed light rail system linking to Tulsa would anchor transit-oriented develop- ment in downtown Broken Arrow. downtown, then the regulations should make it easy to build hous- ing in the downtown," he says. For example, if housing plans call for over 16 dwelling units per acre, the city currently requires an onerous and expensive conditional use permitting process. The city is considering whether some situations could pro- vide for a higher density of resi- dential development by right? The city is also looking at how it could work with developers for offsite parking, where various projects can pool parking resources. "We're also looking at design. What can we do to ensure that we get good design on these pro- jects?" he says. Two policies that won't have to be reformed are den- sity limits and parking require- ments for housing in downtown Missoula, as there are none. Benefits of more residents Currently, downtown Missoula has low-end projects and pricey lofts, but little in between. Long term, Millar expects that the in- creasing residential development and settling of downtown by mixed-income users will be a good thing. Downtown residential, he says: · Supports downtown business. · Reduces traffic coming into downtown to work. · Gives 24-hour character and safety to the community, with eyes on the street and active street spaces. Among the residential develop- ment success stories that Missoula can look to is downtown Baton Rouge, LA (pop. 227,800), which has grown by about 300 residents over the last 10 years, and now has about 2,400 residential units. Davis Rhorer, executive director of the Baton Rouge Downtown Develop- ment District, hopes to implement new strategies that will help double or triple the number of downtown area residents. "What we've seen is the resi- dential conversion of second and third floors along the historic arts and entertainment district area," he says. However, downtown is run- ning out of such spaces to convert, and demand is the highest in the state for more office space, he adds. The city looks to address these challenges in an update it is com- missioning of the lO-year old Plan Baton Rouge. "I'm getting ready to interview . . ~ 4 Downtown Idea Exchange . www.DowntownDevelopment.com July 15, 2008 I . the four consultant finalists for it. A big component of that, probably 40 percent of the plan proposal, is going to be the economic strategy I've got to put in place to get major residential down here. Because that's where we want to center our focus now," Rhorer says. ''I'm very pleased with the progress we've made, but I want to see that 24-hour life to be stronger down here. Having people living here just affects the market posi- tively in so many ways, to get additional types of retail and sup- port services," like the Shaw Cen- ter for the Arts, which opened three years ago. "It's emerging as a cool and interesting place to live." Contact: Roger Millar, Missoula Office of Planning and Grants, nnillar@co. missoula.mt.us; Davis Rhorer, Baton Rouge Downtown Development District, ddd@brgov.com. . Walking trails enhance downtown pedestrian, cycling activity - continued from page 1 . parks. What's more, "because the Peterborough trail system is so well connected for getting from A to B in some parts of the city, it is viable to use for transportation as well as recreation," remarks Susan Sauve, transportation demand management planner with the city's Utility Ser- vices Department. "Most of our trails do link quite closely to the downtown, partly because that's where our railway hubs were, and some still are," she says. "So we've been able to do some rail to trail initiatives, like one big one that runs north- south and another that runs east- west. Both of those trails bisect the downtown. That really helps build a trail system that works for people who are trying to get places, not just for recreation." In fact, six percent of Peterbor- ough residents walk to work. In a 2005 transit survey people indicat- ed that trails were the number one thing that would encourage them to drive less. "One of the reasons we have so many people walking is because 38 percent of our population still works downtown. You can buy almost everything you need in our downtown, and a lot of people live within walking distance of the ntown." Service groups, donors, city all contribute Surprisingly, the first trail was only done in 1995. To develop such an extensive trail system so quickly, it's vital to have partners. "Almost all our trails have been built by our local service clubs," Sauve says. Additionally, two local philanthropists donated funds for trail construction to the tune of about $750,000. With support from city coun- cil, the city has responded by pro- viding the necessary support infrastructure such as road cross- ings and bridges. A major river runs north-south through the city, and there are three bridges that are just for pedestrians and cyclists. "So it's more convenient. There are more options for people to get across the river by walking and bik- ing than by car," Sauve says. "That's helpful too, and of course it makes it scenic, and our downtown is right beside that area." A mile-long stretch of trail along the tourist-oriented area between the river and downtown is also lit at night. Also supportive of downtown's walking infrastructure, the city upgraded its sidewalk policy, so that sidewalks are now required on both sides of all streets. And to keep the opportunity for active transportation available year round, the city plows its trails and side- walks. That minimizes icy walking conditions and makes for trails that are completely clear as soon as it's wann in the spring. Promotion is also central to walking success The city also works on getting people out on the trails, through a coalition it formed with a local health agency and a not-for-profit environmental organization. "We put our promotional budgets togeth- er to do a Peterborough Walks cam- paign," which yielded online trail maps and distribution of an Out- door Adventure Guide. Peterborough also promotes a month-long commuter challenge, called the Shifting Gears Trans- portation Challenge. This spring, the event's fifth year, over 50 workplaces competed to have the most employees walk, cycle, car- pool, and take transit to work. Downtowns typically host that sort of commuter challenge for a week. "Ours is a month-long, because we're trying to establish a new behavior, and we figure it takes longer than a week." Open up traffic-free paths to downtown How can trails benefit other downtowns? "I think that a lot of Downtown Idea Exchange . www.DowntownDevetopment.com 5 people prefer to access the down- town walking and biking because of parking issues. If the downtown is going to compete with the malls that have excessive free parking, making downtowns fun and enjoy- able to walk and bike to is impor- tant," Sauve says. "And because the trails link right into the downtown, even peo- ple who aren't even comfortable being around a lot of traffic can get right into our downtown, where the sidewalks are nice and wide and intersections are pedes- trian- friendly." Items on the to-do list to im- prove Peterborough's trail system include trail signage and improv- ing links where gaps exist. When planning trails, keep density and connections to activity centers front of mind, Sauve advises. "Most people will walk 15 minutes to go do something, but a lot more than that is too far for people." The city never expected peo- Where the walking trails meet the main street . How can municipalities plan walking and cycling trails for maxi- mum benefit to downtown? "Of course, having pedestrian routes inter- sect in the middle of a downtown is perfect," comments Peter Bruce of Pedestrian Studies. "Most downtowns have the challenge of connecting a pathway or trail to the main street. There are certain distances where it's not worth trying very hard. But within a couple blocks, anywhere from 1,200 feet or so up to 2,000 feet, you'll get people that might take a recreational walk into town from the trail, and then perhaps start spending money, if they find something they like and it's presented well." For a town fortunate enough to be able to locate an intersection of walking or cycling trails with the main street, it's important to provide amenities there that will capture a person's attention. For example, provide a tree-shaded bench for a people-watching break, a drinking fountain, a directory of stores, a gazebo, etc. "Something to get them to stop there, stand, look around, and understand what the opportuni- ties are for shopping and dining in a convenient way," Bruce says. "Pedestrian-scale amenities are important for that good feeling." Contact: Peter Bruce, Pedestrian Studies, pbruceceo@aol.com, www.pedestrianstudies.com. pIe to donate the kind of money that has come in to its trail system, she adds. "If you don't have the money within your municipality, don't be afraid to see who around you might have it that would be interested in trails." Contact: Susan Sauve, City of Peterbor- ough, ssauve@peterborough.ca., www. peterborough.ca. . . Revitalization Projects Increasing parking, improving access move downtown forward The Olathe, KS (pop. 114,700), county seat was once the center of community activity, providing a variety of trades, professional ser- vices, and retail businesses. Gov- ernmental offices, including those of the city, county, post office, library and related services, are offered downtown. But through the years other services left downtown or relocated to newer areas of the city. So while downtown remains a place of activity from 9 a.m. to 5 p.m. weekdays, there is little 6 activity during evenings and weekends. In 2002, Olathe residents iden- tified downtown revitalization as a priority through a long-term strate- gic planning process - a process that embraced a sizable cross sec- tion of the community. In 2003, the City of Olathe adopted the Envi- sion Olathe Downtown Plan. The City of Olathe and com- munity partners are backing the plan to rejuvenate downtown as a mix of government and profession- al services, support businesses, niche retail, housing, and cultural and entertainment venues. The Envision Olathe Downtown Plan is the guiding framework, and com- munity partners are providing important support. Olathe moved ahead with the plan's recommendations to first improve downtown's reinvestment economic climate. Two significant capital improvements achieved through partnerships have marked- ly improved downtown. Expanding existing garage It was no surprise that Olathe'- 2003 downtown plan recogni- Downtown Idea EXChange . www.DowntownDevelopment.com . . the need for parking supply solu- tions to support existing downtown parking demand as well as future parking needs. The need for more parking, especially short-term parking, was discussed and studied for decades. It was the downtown plan, though, that kick-started an impor- tant partnership to provide more parking. Four hundred additional parking spaces were produced as a result of the partnership between the City of Olathe and Johnson County government. Initially, the partnership shared the cost of a feasibility study, which led to their sharing the costs for an $8-million structure. The project added six stories to an existing downtown parking garage located on a prime downtown comer. Opened early this year, the parking garage successfully incor- porates the architectural elements of other downtown buildings. The appearance of the original garage is substantially improved with a new facade that minimizes the appearance that the garage was expanded. Improving impeded access With that success in hand, downtown Olathe moved on to a more complex engineering and capital improvement challenge. ai "@ o Ii; ~ o o -; o o .c a. In partnership with the county, downtown Olathe added six stories and 400 spaces to an existing 'ng garage. The City of Olathe raised the rails over four downtown crossings, easing traffic congestion. The photo at right shows a new railroad bridge. Railroad track crossings on approaching downtown roadways produced ongoing delays for motorists. Each day, the crossings were blocked by trains an average 3.3 hours, delaying travel for more than 7,000 vehicles, and costing motorists about 500 hours of time waiting for trains. Since 2000, citi- zen input stressed the importance of relieving traffic congestion, espe- cially from train-related delays. In 2006, the City of Olathe began a $41.2 million construction project to raise the rails over four street-track crossings, two of which were among the busiest in the State of Kansas. By early 2008, trains traveled on both sets of tracks over the roadways. This improvement keeps open the doors to downtown's main gateway, the downtown corri- dor and to downtown itself. Government partners and the cooperation of the BNSF Railway made the monumental project come together, with approximately $19.5 million of the project costs coming from the Kansas Department of Transportation, Federal Highway Administration, and through the Mid-America Regional Council, which locally allocates Federal Air Quality funds. "1J ". " R ~ Ii ^ ~ o CD ~' The BNSF Railway assumes maintenance and future improve- ments of the project. Railway partnership continues for quiet zone Olathe continues working with BNSF Railway to find more solu- tions to reduce the impact of train traffic in the downtown area. With approximately 80 freight trains traveling through downtown on the west tracks, the area experiences about five hours of train whistles each day. Creating a rail crossing quiet zone for the tracks on the down- town core's west edge was identi- fied as the best solution for 11 crossmgs. A quiet zone is a new federal program that involves working with the railroad to significantly improve safety at designated crossings, eliminating the need to sound train horns. As the Olathe Downtown Plan enters its third phase, the impor- tance of community partners can- not be overstated when it comes to bringing more life to downtown, a city official says. Contact: Emily Kllkal, senior planner, City of Olathe, (913) 971-8969, ekllkal@olatheks.org. . Downtown Idea Exchange. www.DowntownDevelopment.com 7 Parking workshops promote idea exchange One of the biggest difficulties with solving parking problems is that everyone has a different per- spective on what those problems are and how best to solve them. You can overcome this challenge by holding a public workshop on parking like those in Middletown, CT (pop. 43, I 70). Sponsored by the Middletown Downtown Busi- ness District, the workshops give downtowners an opportunity to express their feelings and ideas on parking, rather than expecting a handful of downtown leaders to accurately infer how everyone feels about the topic and solutions. What can your downtown brag about? Tired of complaints about downtown Quincy, IL (pop. 40,370), a contributor to the BlogQuincy! website listed dozens of great things about the downtown. Among them: · Watching the sunset from Quincy's new riverfront park. · Browsing through the shops. "To see a great example of invest- ment in our downtown," he says, "be sure to visit Ceilia's completely renovated building." · Attending events in the State Room. "This classy little place is yet another example of readapting Quin- cy's old buildings for new use." · Going to a doctor's appoint- ment. "This isn't always a high- light, but it's development downtown nonetheless." The lesson is clear: While there may be significant improvements 8 and development downtown, peo- ple's perceptions won't change unless leaders publicize these achievements. Limit the link between bars and crime Establishing a downtown enter- tainment district can be a good way to begin revitalizing downtown, but according to a University of Florida study, creating districts with high concentrations of bars and night- clubs can lead to a rise in crime. The increase in crime can even limit other development, as people may be reluctant to shop in the area. Recommended strategies for downtowns looking to develop an entertainment district while mini- mizing crime: limit liquor licenses, set up zoning that favors businesses serving food in addition to alcohol, and encourage activities that attract . a wider range of age groups, such as family entertainment. Increasing security also helps. Website spotlights state's downtowns The Wyoming Economic Atlas, a website of the Department of Agricultural & Applied Economics at the University of Wyoming, has a special section focusing on the state's downtowns. Still a work in progress, the site currently offers a virtual tour in which visitors can click on various points on the map to see pictures of Wyoming's many downtowns. This type of tool promises great potential for pro- moting economic development, and it may be worth seeing if a similar resource is available in your state. The downtown section is located at http://agecon.uwyo.edu/econdev/ downtownwyOI.htm. . . City funds for church improvements OK A federal court last year upheld Detroit's use of city money to fund structural improvement at three churches as part of a 2003 facade improvement plan that provided reimbursements for upgrades. The court ruled that city funds can be used for church renovations - pro- vided the project has a civic purpose such as downtown beautification and does not promote religion. The decision covers normal building and parking lot repairs and upgrades. However, "the reimbursements for the improvement or repair of the signs [displaying the church's name] and stained-glass windows displaying religious images and messages crosses the line because these projects so clearly benefit the religious mission of the churches," the judge wrote in his ruling. This was an important case because prior to 2000, the use of gov- ernment funds for any religious organization was generally prohibited. But the Supreme Court case Mitchell v. Helms opened the way for the government to give funds to religious organizations. The Detroit case was the first major ruling based on that precedent. Downtown Idea Exchange . www.DowntownDevetopment.com Attornelds Burville Law Office, PA 429 Third Street 651-460-3751 Otten Seymour Law Offices 311 Oak Street 651-463-1151 Auto/Truck - Repair/SaLes Block's Auto Service 805 Third Street 651-463-3024 Dakota Motors 212 Elm Street 651-460-6655 Farmington Truck Center 22098 Canton Court 651-460-6229 K & K Auto Ranch 1024 Eighth Street Lorenz Towing 22068 Canton Court 651-460-6464 651-463-1101 M.R. Auto Repair 321 Elm Street 651-460-2101 Parkway Collision & Northwest Auto Sales 3344 W. 220th Street 651-463-1919 Pederson Auto Shop 101 Third Street 651-463-2111 Rambling River Repair 20 Fourth Street 651-460-6111 Starr Automotive 3360 220th Street 651-463-2281 Banking Anchor Bank 324 Oak Street 651-463-1531 Anchor Bank 18400 Pilot Knob Road 651-463- 2010 Premier Bank 316 Oak Street 651-463-4440 Roundbank 3380 Vermillion River Trail 651-463-8300 Wells Federal Bank 115 Elm Street, Suite I 651-463-4883 Entertainment Farmington Billiards 933 Eighth Street Farmington Lanes 27 Fifth Street 651-463-2636 651-463-1811 Financial/Business Services Anchor Investment Management 324 Oak Street 651-615-4683 Barbara J. Ackerman, PA Tax & Acctg. 5437 212th Street W. 651-460-6106 Edward Jones Investments 405 Third Street Expert T Billing, Inc. 311 Oak Street Farm Bureau Financial 115 Elm Street H & R Block 20700 Chippendale Ave W. Midwest Staffing Group, Inc 18400 Pilot Knob Road Northern Concepts 821 Third Street Quality Credit 420 Elm Street TEAM Personnel Services, Inc 5465 212th Street W., Suite 2 Xpress Business Solutions 314 Oak Street 651-460-8229 651-463-3861 651-460-4300 651-460-2250 651-460-4498 651-460-4426 651-460-8800 651-460-4344 651-460-4089 Fitness America's Fitness Center 109 Elm Street 651-463-8555 Anytime Fitness 20700 Chippendale Avenue 651-344-9999 Brenda's School of Dance 945 Eighth Street 651-460-6188 Curves for Women of Farmington 925 Eighth Street 651-463-2403 Snap Fitness 18450 Pilot Knob Road, Suite E 651-460- 2220 USA Tae Kwon Do 328 Third Street 651-581-9431 Gas 6- Convenience Farmington Amcon 957 Eighth Street 651-463-1333 Kwik Trip 217 Elm Street 651-460-2082 Kwik Trip 18290 Pilot Knob Road 651-463-8902 MiniSmart: Convenience Store & U-Haul Rental 22280 Chippendale Avenue 651-460-6199 Oasis Market/Marathon Gas Station 705 Eighth Street 651-463-1705 SuperAmerica 18520 Pilot Knob Road 651-460-3353 Government Offices/Facilities Central Maintenance Facility 19500 Municipal Drive 651-463-1640 City Hall 430 Third Street 651-463-1111 Dakota County Library 508 Third Street 651-463-0250 Police Station 19500 Municipal Drive Non-Emergency 651-463-3333 Rambling River Center 431 Third Street 651-463-4828 medicaL Care Allina Medical Clinic 3500 213th Street W. Fairview Clinic 19685 Pilot Knob Road FamilyHealth Medical Clinic 4645 Knutsen Drive Family Vision Clinic 19645 Pilot Knob Road, Suite 106 Farmington Clinic 417 Third Street Journey Couseling 821 Third Street River Valley Home Care, Inc. 916 Eighth Street Other Services Action Driving 933 Eighth Street Expressive Embroidery 305 Oak Street Farmington Independent 312 Oak Street Farmington Mini Storage 22020 Canton Circle 651-463-1181 651-463-511 651-460-2300 651-463-2020 651-460-4555 651-460-8085 651-460-4201 651-460-6669 651-460-3336 651-460-6606 651-463-4151 Farmington Printing, Inc. 306 Fourth Street 651-463-8444 Heikkila Studios 349 Third Street 651-460-8359 Janie's HomeTeam REALTORS 331 Third Street 651-463-8326 Lake Marion Marine & Small Engine Repair 5465 212th Street W. 651-460-2008 Performance Travel 315 Pine Street 651-463- 2404 Sherring Hands Massage 18598 Elk River Trail #203 651-463-1349 TAT24U & Piercings2 Inc 821 Third Street 651-460-8282 White Funeral Home 901 Third Street 651-463-1314 Pet Care Akin Hills Pet Hospital 18400 Pilot Knob Road, Suite C 651-460-8985 Farmington Veterinary Clinic & Pet Hospital 645 Eighth Street 651-463-8985 Pampered Pet Spa 18450 Pilot Knob Road 651-463-9311 Shopping/Retail Carquest 210 Oak Street 651-460-8334 CVS Pharmacy 19605 Pilot Knob Road 651-463-1380 Decache Style 320 Third Street Econo Foods 115 Elm Street 651-463-3404 Fan Club Athletics 306 Oak Street 651-460-8485 f ~ ~ ~ ~ I ~-LJ ! . ',-' "k::-tL1L I - i --; L\-i>$Jl'l'.' 0-~ ! · \R-(S's:J-,,~ :~, b I ! PI' '-:j7T' <I(.>c:-i, I i~~:l I ~ I J , r _ " "I """ I ~-~-t-__--__L____--_- : iH=:-_.n:n~lI;~.. n ----.. _ n_ I. :\ . CITY..Qf~~~~!>.kON--- i I L-J.. rCm-OnARMm" \~~\: -Itm~ ,',! ;'~::J : -\''T ,-1~ /". (~) I r\;>.. " '---r-.. rr ! Vi} L-'--'I~d' I ~) i "'-- ~~\(~, ,~ _ i '--.J ~:, ~ \' ,T .~ _ I i -q --;TC\B >j _: ~/.~ I +.",,,..... I fJJ[~ _ ~I_'.---,=- ... ~\ I ! ~ t2Q:&!, ~ "1~"~' '\\1 Ir- l i I ~ Ijrl'" \ ,- i---.J--" ~ c.-j " ",,,\\ ! r ': : (1""5- I -==l: j ~"J I I:::L-~ ' ! J! _ f.lil'''''''' L r-T.:. -- :-:-:J--J ! 61 I T I ,j hTt~ ! :-,1 r- """iiW II l.r f--,-"i'i , ,"h ! '.11 I ~ Y L..LJ [ '----it I I I-I,:ll~~:_, l-+-ctl j'_n_______ ! '....0 - I , , -Jo;ia.\llII~ _Q-1 , -+-,..1'''Ilil!lOIl€l".......~._ ~ "'--' - _ , __ ~H-i--I" r-i-:-bj Ln_. ' -- - 1111.-0::_ ! ! I - I " JRr.,Jbj' J i I. ['-- j -, ~-1-...L\ ..- IO!! ~i t.Lt-~ ',! ~= , ! ----- m,,,,o:;t "i..:, _.J J I n_n_n I ~ , -1 I ~ . ARMINGTON --~---- ! .._ . :. I _ .i9JYY}EL--_-Tm,-- i I ,_~nJ .~ I, I r"':-, "",,",",OWN . . '_. E i ,___ _J' CAS<LE ROCK 1 ___J --- TOWN"'ll' I i5 I~ I;: :g l[il ,~ j= :~ !~ : i ~ T i ! \ ! __-L. . IMiles . . . , 150 SOUTH FIFTH STREET SUITE 2300 MINNEAPOLIS, MINNESOTA 55402 612-335-1500 MAIN 612-335-1657 FAX LEONARD STREET AND DEINARD S. STEVEN PRINCE 612-335-1882 DIRECT STEVE. PRINCE@LEONARD.COM July 25,2008 Thomas Scott Campbell Knutson, P A 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 VIA E-MAIL (tscott(@.ck-law.com)&U.S.MAIL Re: City o]'Farmington Economic Development Authority - 2004 Real Estate Company Dear Tom: On June 16th we met at the Farmington City Hall, and the City requested that our client complete certain work at the Exchange Bank Building in return for the re-deeding of the building to 2004 Real Estate Company and return of our client's $80,000. On June 20th I wrote you to confirm the work was completed. Since then Farmington has acknowledged the completed work by issuing a certificate of occupancy, but has, despite repeated requests, failed to provide the required Certificate of Completion under the Parties' Agreement, failed to record the promised deed, and failed to return our client's $80,000. You and I last spoke on Wednesday, July 16th regarding the City of Farmington's proposed settlement agreement with our client 2004 Real Estate Company. As we discussed, our client is uninterested in executing a release unless additional consideration is provided by the City. I understand from our discussion that the City is unwilling to pay any attorney fees incurred by our client in response to the unlawful behavior of City officials. Accordingly, and as already requested, please provide a Certificate of Completion consistent with the parties' agreement, arrange for the City and/or EDA to record a deed confirming title in the Exchange Bank Building in our client, and return the $80,000.00 (with interest at 3% from June 20,2008). This demand is consistent with the City's offer at our June 16,2008 meeting. LAS4sao2~R,llS IN MINNEAPOLIS. MANKATO . ST. CLOUD' WASHINGTON, D.C. A Professional Association WWW.LEONARD.COM . . . Thomas Scott July 25,2008 Page 2 Our client has now waited over a month for return of title and money that we believe is unlawfully held by the City. I hope that the City will honor its attorney and manager's earlier proposal so that litigation will not be necessary. If you have any questions or concerns, please don't hesitate to call. Please be sure that all communications regarding this matter are directed to me. Very truly yours, LEONARD, STREET AND DEINARD B:rOJia;j$ S. Steven Prince SSP/egl .., . . . Economic Development Activity Report June 20 - July 25 Meetings/Events.. . Staff attended the DCR Sponsored Business after Hours event at Gossips. Staff attended a tour of the new High School Staff participated in a site visit with a DEED Representative and industrial site selector. Stafl lIstened to an ICMA AudlOconference on Sustamable Commumtles: Successful Leadership Strategies. Staff attended the NDC EDFP Course ED202 Inquiries... Staff was contacted by Cerron regarding a specific user interested in the Vinge Tile & Stone building. Use was not permitted per the Zoning Ordinance. Staff provided other space availability options. Staffwas contacted by Kent Levi Jacobsen who wanted to know ifthere were any networking groups in Farmington. He recently brought his Vending Management business (Levi Vending Managment, LLC) to Farmington and currently operates it out of his home office. Staff informed him of the EGC, Rotary Club and DCR Chamber plus Chamber After Hours Staff was contacted by a Commercial Real Estate Broker interested in a specific downtown property that is for sale and/or lease. Spoke with him about available space opportunities that may fit his needs client's needs and emailed him the Available Space spreadsheet. Staff was contacted by the owner of the Farmington Steakhouse regarding the need for a brief use of the McVicker lot for a bucket truck to access his building to replace rooftop units. Staff was contacted by a property owner looking for information regarding the future use of his property if it were sold. The property is zoned residential however a commercial use currently is in operation on the site. Staff was contacted by an individual who wanted to know if there was a seasonal campground located in Farmington. Provided her with information for the Lebanon Hills campground in Apple Valley. Staffwas contacted by a long-time resident of Farmington who wanted information on what the City is working on with regard to Economic Development. She wanted to know what types of incentives are offered to attract new businesses to the City. Staff provided her with the information she requested. Staff was contacted by an individual interested in the Farmington Business Park. Staff provided him with the Plan, PUD Agreement and zoning definitions. Miscellaneous.. . Tina Hansmeier ~rom: ~ent: To: Cc: Subject: Tina Hansmeier Wednesday, July 16, 2008 11 :30 AM 'Gene Goddard' Peter Herlofsky; Lisa Dargis; Tony Wippler; Lee Smick Follow-up to Site Visit - Data Center itl 350 IP SITE MAPS1.pdf (2 MB) Gene, 'itl FiberLines.pdf (5 MB) It was a pleasure meeting with you and Frank on Monday afternoon and thank you for considering Farmington as a potential site for the Mega Data Center. There were several questions brought up during our time together that lId like to address in this email. To begin, the presented site, illush"ated on "Map A" and located generally north of CSAH 50 and west of Pilot Knob Road/County Road 31, consists of approximately 300 acres. The acreage figures indicated on the map excludes any right-of- way acreage and therefore does not accurately reflect the total number of acres for this area. As youlll see on the attached "Map B", I've illush"ated the full acreage for each site located within the outlined area, which now encompasses more property than was indicated on the maps provided yesterday. The acreage figures for this outlined area total approximately 374 acres. Please keep in .mind that approximately 22 acres of the total figure presented are currently zoned for commercial uses (located at the NW intersection of Pilot Knob Road and CSAH 50). With regard to the site, the Huber and Wurdeman properties were mined from approximately 1994 to 2003. To the best of our knowledge both properties have been reclaimed to there original condition (i.e., elevation and topography). And, we have noticed that the Huber property has some storage of vehicles, h"actor tires and petroleum products on the west side of the property that will need to be cleaned out/ up with any development. The Wurdeman property has a home located on it that has been identified as a possible eligible historic property. We see this as an opportunity for some type of information or conference center possibility. lIve attached an aerial picture (attached "Map C') to give you an idea of what the house looks like. Since you were interested in obtaining a map identifying the owners of parcels beyond the site we were looking at, I've attached "Map D'I titled Possible Locntioll of Future Industrinl Arens which identifies the owners of property located generally in the southwest corner of Farmington. Attaclunent "B" identifies more properties located north of the 300 acre site presented Monday. I apologize in advance for the handwritten map, but I was having difficulty with our map software today, and wanted to provide you with a response to the questions as soon as I could. LAKEVILLE SITE As I understand it, you viewed a site consisting of approximately 200 acres located in the southeast .orner of Lakeville on Monday. Frank was curious if Farmington would consider rezoning the griculturally zoned property to indush"ial to add to the 200 acre site in Lakeville. I don't believe that this is a very good option largely due to the amount of laO-year Floodplain that runs through this area. Please take a look at attached "Map P which is the 2030 Comprehensive Plan map that will go 1 to the City Council for approval later this fall as part of the should be approved with the full 2030 Comprehensive Plan Update. With a rough calculation, it looks like there may be roughly 110 acres (south of CSAH 50) that may be developable. However, these acres would not be contiguous. If this is something Frank would like to explore further we could discuss more details at that time. It . wouldn't be out of the question but a bit challenging to say the least. PHONE EXCHANGE/FIBER The phone exchange for the Farmington area (including the site of the Farmington High School) is 651-463 or 651-460. However, if the customer chooses to go with a provider other than Frontier the phone exchange would be different from what is listed above. On a side note, Frontier also provides internet capabilities. I am working on gathering some maps to reflect where fiber is currently located tlu.oughout town. Once I have received maps from the School Dish.ict and Frontier I will send them your way. Attached to this email is a map identifying the locations of the City's fiber lines. If you have any other questions please feel free to contact me at anytime. Thank you and have a great day! Tina Hansmeier Economic Development Specialist City of Farmington 651-463-1821 . . 2 . . . ,/ ...--" -~ '--"~" ~ ( ~ ,---- "k[~ = g /L .7 x ~ a 2!. ::- Co c: ~ iii' :l> n "'~ u>'" "-I'" .CO "-I'" "'~ '" le. o .... :!! a ,..---.- ":: S ~ >- -:. r~ r-- / ,;-~______J ( I ~ i.. ..:.., (?-- '.-,: . I....., \_ .-----~;:;- I \--, .....-. r? '-:~'j-~'~ ,'"" ~j ::: _/7_' v" ,= ~~:-=-==-J~7-<~ ( ,- - ~~-) ~ -~7 ~ ..~~~~I~ ,---- Print Preview ~~ B c' Page 1 of1 . . Disclaimer. Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search, appraisal, survey. or for zoning verification. M"p~c"l<:1 1 inch = 895 feet ~1~o 12 @tuff!. 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City of Farmington Farmington Fiber Optic Lines 0.5 I 1 Miles Page 10f3 Tina Hansmeier .om: Kent Levi Jacobsen I Global Vending Management [kent.levi@thelvm.com] Sent: Monday, June 30, 2008 10:56 AM To: Tina Hansmeier Subject: RE: test Tina, I just wanted to take a moment and Thank You. I spoke with Jeff Thelen, and then met him at the chamber's business after-hours last Thursday at Gossips downtown. He is a very nice person and seems to have a wealth of information. He had talked about the meetings at Anchor Bank, and it definitely seems quite intriguing for me to find out more about it. I'd love to come and check out the next one to listen to what goes on. Ruthe was also an amazing lady, and helped me out in various things. Thank You again in advance! Warmest Regards, KENT LEVI JACOBSEN PRIN CIP AL Levi Vending Management, LLC .t: 651.319.52961 Main: 866.847.26161 Fax: 888.213.7701 il: kent.levi@thelvm.com www.TheLVM.com "The key to unlock Your Future. 'rrM MY PROFESSIONAL NETWORK I Mll..LIONAIRE MIND INfENSIVE I MANNARELIEF Galatians 6:9 "Do not get tired of doing good, for at the proper time, you will reap a harvest, if you do not give up. " NOTICE - This email and any files transmitted are intended solely for the use of the addressees and may contain privileged, confidential and/or copyrighted material. If you have received this email in error, please notify the sender immediately by reply email and delete this email from your computer and destroy any copies. DISCLAIMERS - Views and opinions expressed in this email are not necessarily the views and opinions of The Levi Vending Co., LLC or its employees. Absent an existing written, mutually executed agreement to the contrary, nothing in this email creates a contract or other binding obligation. t!1 Please consider the environment before printing this e-mail From: Tina Hansmeier [mailto:thansmeier@ciJarmington.mn.us] Sent: Tuesday, June 24,2008 12:41 PM To: Kent Levi Jacobsen I Global Vending Management Subject: RE: test Kent, Thank you for the email below, likewise, it was nice chatting with you. It is exciting to hear that you are .py to be back in Farmington and we are glad to have you. I will be checking out your website shortly t I wanted to mention that there will NOT be an Economic Growth Committee meeting this Thursday. I just received a Chamber update indicating that the meeting has been cancelled for 6/26/08. 7/1/2008 Page 2 of3 Regarding the information below: The Chamber President is actually Ruthe. Otherwise, you have the rest correct. . Tina Hansmeier Economic Development Specialist City of Farmington 651-463-1821 From: Kent Levi Jacobsen I Global Vending Management [mailto:kent.levi@thelvm.com] Sent: Tuesday, June 24, 2008 12:22 PM To: Tina Hansmeier Subject: test Importance: High Tina, It was great talking with you! I am very excited to be back. Being born & raised here, and my family still living here, I have a lot of fond memories that I'm happy to be able to bring my company back here from South Carolina, and now start a solid foundation. Also, if you do have any opportunities for me, please let me know. Please take 2 minutes to look at my website so that you may understand what my vending management company is capable of. www.TheLVM.com I think I'd really enjoy being able to help the City of Farmington in its efforts to strategically expand in the next 3 years. There is never any cost to you ever for our services, and I can significantly increase the revenue of your facilities & recreational locations. Being that I'm just starting off all over again, I'm quite passionate about getting this off & running! . I hope this information below is correct: Anchor bank 3:30pm 4th Thursday Rudy pres of chamber 651.452.9872 Jeff Thelen (owner of Thelen Cabinet Company) 651.463.3442 Tina Hansmeier Thank You again in advance! Warmest Regards, KENT LEVI JACOBSEN PRIN CIP AL Levi Vending Management, LLC Direct: 651.319.52961 Main: 866.847.26161 Fax: 888.213.7701 Email: kent.levi@thelvm.com wwwTheLVM.com "The key to unlock Your Future. 'rrM MY PROFESSIONAL NETWORK I MILLIONAIRE MIND INTENSIVE I MANNA RELIEF Galatians 6:9 "Do not get tired of doing good, for at tlte proper time, you will reap a Itarvest, if you do not give up. " . 7/1/2008 Tina Hansmeier ~rom: "Sent: To: Cc: Subject: Tina Hansmeier Wednesday, July 16, 2008 10:27 AM 'Steven Warner' Lisa Dargis; Tony Wippler; Lee Smick Aerial Image of Allina Site-900 Main Street-Farmington !1l Allina - former.jpg (887 KB) Steve, Attached is an aerial image of the soon to be former Allina Medical Building site (900 Main Street). Using the aqua/blue line I've illustrated to you where the right-of-way area will be once the property is platted. Currently it is a metes and bounds parcel that would need to be platted before development could occur. The attachement identifies the right-of-way and remaining acreage as Dakota County property records indicate. Please see below for those details. Property Record Details Many commonly asked questions about assessment information may be answered at Understandinq Taxes & Values. Note: Click data field headings for further information on each value. . Data Updated 7/11/2008. PROPERTY ID NUMBER: 14-03200-012-25 FEE OWNER: JTL PROPERTIES LLC 3153 LAKESHORE BLVD MINNETONKA MN 55391 PROPERTY ADDRESS: 900 MAl N ST FARMINGTON MN 55024 . 2008 ESTIMATED MARKET VALUE (PAYABLE 2009) LAND: $297,000 BUILDING: $1,220,400 TOTAL: $1,517,400 2008 TAXABLE/UMITED MARKET VALUE (PAYABLE 2009) LAND: $297,000 BUILDING: $1,220,400 TOTAL: $1,517,400 1 2007 ESTIMATED MARKET VALUE (PAYABLE 2008) TOTAL: $1,512,100 2007 TAXABLE/LlMITED MARKET VALUE (PAYABLE 2008) TOTAL: $1,512,100 PAYABLE 2008 TAXES NET TAX: $50,433.00 SPECIAL ASSESSMENTS: $0.00 TOTAL TAX & SA: $50,433.00 LAST QUALIFIED SALE: DATE: 12/91 AMOUNT: $100,000 LOT SIZE RIW ACREAGE: 0.68 . TOTAL ACREAGE: 2.39 YEAR BUILT: 1991 SCHOOL DISTRICT: 192 WATERSHED DISTRICT: VERMILLION RIVER PAYABLE 2009 HOMESTEAD STATUS: NON HOMESTEAD PAYABLE 2009 ASMT USAGE: COMMERCIAL - PREFERRED . 2008 BUILDING CHARACTERISTICS (PAYABLE 2009): n PLAT NAME: SECTION 32 TWN 114 RANGE 19 PT OF SW 1/4 OF NW 1/4 BEG NW CORNER S 301.12 FT E 190 FT S 21 FT E 145.28 FT N 322.04 FT TO N LINE W 335.19 FT TO BEG EX PTS FOR STH #3 & CR #72 TAX DESCRIPTION: 32 114 19 TYPE OFC,MD/DTL YEAR BUILT 1991 ARCH/STYLE FOUNDATION sa FT NOT APPL FINISHED sa FT 10844 BEDROOMS 0 BATHS 10 FRAME C-CONCRETE GARAGE sa FT 0 OTHER GARAGE MISC BLDG Tina Hansmeier Economic Development Specialist City of Farmington 651-463-1821 . 2 l' .r ;:r ,,' [J ;, I' - III l lf~'o^~j .. '- . . . City of Farmington 325 Oak Street Farmington, Minnesota 65I.463.7III . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: 308 Elm Street Demolition DATE: July 28, 2008 INTRODUCTION Staff was directed at the June EDA meeting to obtain demolition estimates for the building located at 308 Elm Street or the building commonly referred to as the "Old Park & Rec Garage" (see Attachment A). Also obtained were cost estimates for possible options for the use of the land after the building is demolished. DISCUSSION Demolition estimates have been obtained from Friedges Excavating (Attachment B) and Doboszenski & Sons (Attachment C), both of which have demolished City or EDA owned buildings in the recent past. The demolition estimates are attached and indicate the scope of work along with specific exclusions based on certain assumptions at this point. The cost estimates provided include demolition of the building, disposal of building materials, grading of site and placing 6" of class 5 aggregate over the building removal area. Options are presented below for what could be done with the site directly after the building is demolished. They are: . Sod (Attachment D): $3630 - $6,534 . Seed (Attachment E): $2,175 . Asphalt for additional parking (Attachment F): $29,784 - $47,896 Cost estimates are attached for the options presented above. Staff believes the option of creating additional parking makes the most sense at this point. It continues to be brought to staffs attention that there isn't a sufficient amount of parking in the downtown area. With the location of this site adjacent to several of downtown's eateries; it would help alleviate some congestion until interest in developing the property is received. . . . For some additional background regarding the state of this building, attached is a memo that was brought to the EDA in August 2006 (Attachment G). ACTION REQUESTED Authorize demolition of the EDA owned 308 Elm Street building. Respectfully submitted, {0~ ~;t(cU1SmC~(jU Tina Hansmeier, Economic Development Specialist cc: Peter HerIofsky Jr. A /} ~ Quotation from----nnu--- FRIEDGES EXCAVATING, INC. Excavating - Utilities - Landscaping Contractors 21980 KENRICK AVE LAKEVILLE, MN 55044 Johnny Hardyman Office (952) 469-2776 Fax (952) 469-2463 J ohnny@Friedgeslnc.com July 19,2008 Project: Demolition of City Garage, Located North of City Hall Hwy 50 Farmington, Minnesota Architect: Plan Set: Owner: City of Farmington To: City of Farmington Tina Hansmeier 325 Oak Street Fannington, MN 55024 Phone: 651-463-1821 Fax: 651-463-1611 . *** $ 19,686.00 *** Demolition Quote for Building: Nineteen Thousand Six Hundred Eighty Six Dollars. Scope of Work: Remove & properly dispose of the following items according to MPCA & City of Farmington Standards: MPCA permit, construction entrance, silt fence, signage, safety fence as needed during demolition. Abandon water/sewer/storm services. Demolish and remove building, foundation walls, footings, slab, concrete aprons. Import, place & compact suitable subsoil for all footing & foundation wall trenches. Furnish & place 6" of recycled class 5 aggregate on old bldg. pad area. Notes: Friedges will use Atomic Recycling, which operates the largest construction waste recycling facility in the state, 63% of all the construction waste will be recycled. To furnish & place 6" of topsoil, seed & mulch is the same price as recycle class 5 aggregate. All salvage rights belong to Friedges. Exclusions: Testing/fees/escrows/bond, as built surveys, soil correction, shoring or bracing, removal/relocate/replacement of any public utilities, ACM/ Environmental survey/inspection/reports or abatement of asbestos/Iead aaintlmold/contaminated soil or hazardous materials, SWPPP permit, private locates, fencing after project completion, ~rb & sidewalk removal or replacement, asphalt & asphalt sawing. Thank you, JJuuuJ .JlwuUptum B (/ . DOBOSZENSKI & SONS, INC. 9520 County Road 19 LORETTO, MN 55357 TELEPHONE 763-478-6945 FAX 763-478-3186 EMAIL TRANSMISSION DATE: July 24th, 2008 TO: Ms. Tina Hansmeier # OF PAGES INCLUDING TIDS SHEET: ! COMPANY: City of Farmineton FAX #: 651-463-1611 PHONE #: 651-463-1821 PROPOSAL PROJECT: BuUdin!! Demolition @ 308 Elm Street in Farmineton. MN SPECIFIC INCLUSIONS: 1. Demolish and haul away existing building, slab and foundation. 2. Grade site level. . SPECIFIC EXCLUSIONS: 1. Soil testing or contaminated soil. 2. Layout or licensed surveyor. 3. Permits or fees. Winter conditions. 4. Well sealing or capping. Septic or waste tank pumping or removal. 5. Survey, removal or disposal of hazardous or regulated materials. 6. Erosion control. Restoration beyond that listed above. 7. Topsoil import, seed & mulch, or turf establishment. BASE BID: $14,400.00 ALTERNATES: 1. Lights, ballasts, thermostats, appliances, & etc. removal and disposal. ADD: $1,500.00 2. Cut off water & sewer within the property lines. ADD: $700.00 3. Furnish & install 6" of recycled Class 5 over the building removal area. ADD: $2,000.00 . Please feel free to contaet me for clarification or with any qnestions. Thank yont~or / calling us regarding this pricing and we wish you the best of luck on this projec~ \ D Respectfully Submitted, ~ \ l6 I l.Q b 0 ~E7~~~ Tom Bermel Estimator/Project Manager c 07/17/2008 09:32 5514508194 BRAUN TURF PAGE 01 D . BRAUN TURF FARMS 2950 232"d STREET EAST " , " HAMPTON, MINNESOTA 55031 PliO 'E: 651-463-2302 FAX: 651- 460-8194 July : . , . , . ! ; I:: ! .' City r Farmington Attn: 'na Hansmeier \ (1 cA u tM.D I, ~O 0\ + SD(\ \ ()~\ \ lL~\O() I QUOT . FOR PROJECT: F . ITION ~ sui \ ~ t-op ~o I I '? \ (j (L rrt-Xlt I JtNO S~l ~"\ f\X ~/L. J . 968 sq.yds. sod \ }-J\9Ql)"~ l"'ENT -m pQ.'LPf)2\\/ ith 2" topsoil and no watering $3.75 per sq.yd. j: :S/~i:;>.::>D ith 2" topsoil and two weeks watering ** $5.25 per sq.yd:3', ': !U6 L- ith 4" topsoil and no watering $5.25 per sq.ydfb S, o~ 2-- i'. ith 4" topsoil and two weeks watering ** $6.75 per sq.yd. '];, lo,C) 3L( i.:, ! . . , , , . ] : ! . i. i' ** Ci to provide water at no charge ~_.~----_.-----..._._-_._-- . 7671 Co. Phof\<l # Fa~ # Fa~ # I' 2). Valley Creek Express Blower™ Service Local 651-458-0778 .' Free 877-77-MULCH ~ 651-458-0822 www.valleycreekmulch.com MN -5209 G A Division of Valley Creek Express, Inc. 8362 Tamarack Village Suite 119-443 Woodbury MN 55125 Work Estimate All figures are estimates. Actual totals may vary due to the actual amount of product used. PRICES ARE VALID 60 days from estimate date. Contact Person: Phone: Email: Client: Address for Billin Cit , State, Zi Office Phone: Fax: Email: Hose length needed: /}r,(; Truck #: Descri tion of Service: f t Location of Service: ~~ CL~ S, PI4(!rn,/V[) -r() N Directions: ltW'11J;;t.- <;U~. t' ,"'d' "'11 c;,,,~ en Qi\p~t\~~k ~(... hI El~. 2CO Sf E" '" '4.- t- v 0.&... timate: includes roduct Product Iication and c1ean-u Estimated Quanitity i"f~ <;100 ~ ~.t- II Estimated Schedule Date: Invoices & Payments: 1/2 down, balance due upon completion unless otherwise noted. Jobs are scheduled upon receipt of down payment & signed estimate. Trip Charge: A $500 trip charge will be assessed if we arrive at your site on your scheduled day and the site is not prepared for install. Cancellations to your scheduled day must be made at least 24 hours in advance. Price per )!a16:ic?yar'-d' Total Application Price ~6' ~b. · 1'; 4- 11 ~ 7.)'<:3:. Start Time: Visa or MasterCard Card #: Expiration Date: Card Holder Name: Address: City, State, Zip: Amount to be applied: Signature: CVV#: I hereby accept all terms in the stated contract and the work estimate as an acting agent for the above stated client .enucontact Person Signature: Valle Creek Ex ress Slower™ Service: Cell Phone: C::I:Z ~{)(1- J. 7'/).... E-mail: Date: Date: 1/??/c f 'ibJ1tJel, . f!j}-JJ'( C:- TERMINATION OF CONTRACT Valley Creek Express Blower™ Service may, at its sole option and without prior notice, terminate this contract for non- payment over 30 days of invoice date. In all other cases, this contract shall continue in full force and effect until the scheduled effective contract termination date set forth and/or the end of the listed location item listing, whichever comes first, unless either party gives thirty (30) days written notice by certified or registered mail with return receipt requested of its intention to terminate. Receipt of a termination notice by either party shall automatically terminate this contract at .h end of the notice period, unless both parties agree in writing to reinstate the contract prior to the effective date termination. For the purpose of the service of notice of termination for the services listed in this contract, pursuant to the paragraph above, servIce must be made to Valley Creek Express Blower™ Service 8362 Tamarack Village Suite 119-443, Woodbury, MN 55 I 25. For the purpose of the service of notice of termination to the client, pursuant to the paragraph above, service will be made to client contact person listed. DEF AUL TOR DELAY OF GOODS OR SERVICES Valley Creek Express Blower™ Service shall not be liable for delays or defaults in furnishing goods or services hereunder, if such delays or defaults on the part of Valley Creek Express Blower™ Service are due to: a. Acts of God or of a public enemy; b. Acts of the United States or any state or political subdivision thereof; . c. Fires, severe weather, floods, earthquakes, natural disasters, explosions, or other catastrophe; d. Embargos, epidemics or quarantine restrictions; e. Shortage of goods, labor strikes, slowdowns, differences with workmen or labor stoppages of any kind; f. Delays of supplier or delay of transportation for any reason; g. Causes beyond the control of Valley Creek Express Blower™ Service in furnishing items or services including but not limited to breakdown or failure of machinery or equipment. Acceptance of delivery or goods or services shall constitute a waiver and release of Valley Creek Express Blower™ Service by Client of any claim for damages, setoff, discount or other liability on account of delay. INSURANCE Valley Creek Express Blower™ Service represents that it maintains and shall continue to maintain insurance covering its liabilIty under thIs contract for loss or damage to persons or property from any acts or omissions and arising directly from the provision of service hereunder, subject to the limitations of this contract. Valley Creek Express Blower™ Service certIfies that it has Worker's Compensation insurance. INDEMNITY The Client shall indemnifY and hold harmless Valley Creek Express Blower™ Service and any of its directors, officers, shareholders, employees and agents from and against any action or threatened action, suit or proceedings arising out o. as a result of, the indemnifYing part's performance under this contract and against any and all claims, expenses, losse damages (including reasonable attorney's fees), arising out of the clients willful negligence or willful acts of omission. LEGAL EXPENSES In the event Valley Creek Express Blower™ Service commences a lawsuit for the recovery of payments due pursuant to the contract or any other amount due under the provisions of this contract, due to liability, loss, damage, cost, or expense (including reasonable attorney's fees) by reason of any act or omission of client or because of default in the clients performance of any other term or provision of this contract, the client shall pay Valley Creek Express Blower™ Service reasonable attorney fees and costs and disbursements associated there with. ADDITIONAL NOTES -This contract supersedes any and all other agreements, either oral or in writing between the parties with respect to the matter stated herein and this contract contains all of the agreements between the parties with respect thereto. This contract may be amended or modified only in writing and shall be effective only after signed by both parties. -The failure of either party to this contract to insist upon the performance of any of the terms and conditions of this contract, or the waiver of any breach of any of the terms and conditions of this contract, shall not be construed as thereafter waiving any such terms and conditions, but these shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. - If any provision of this contract is held to be invalid or unenforceable for any reason whatsoever, the remaining provisions shall remain valid and unimpaired and shall continue in full force and effect. -All work orders and communication must come from the client contact person listed on this contract for the above listed site. Other persons, other than the client contact person, handling any portIOn of said contract must be authorized in writing by the client contact person to Valley Creek Express Blower™ Service. - Work shall include all labor, supervision, tools, vehicles, supplies and other services that are necessary to maintain the above contracted services. - Vehicles and equipment will be operated safely and procedures employed shall be according to accepted industry standards. -Work performance shall comply with the Federal Occupational Safety and Health Act. APPLICA TIONS - Valley Creek Express B1ower™ Service is not responsible for application problems due to the weather or weather conditions or acts of God. -In applications of mulch or compost, Valley Creek Express Blower™ Service is not responsible for negligence on the part of client and/or client's customer. . In applications of compost seeding, Valley Creek Express Blower™ Service is not responsible for negligence on the part of client and/or client's customer. ThIS would include, but not be exclusive of: lack of watering and/or excessive watering of seeded areas, walking on or mowing seeded areas prior to seed establishment. . . . G 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: Kevin Carroll SUBJECT: Park & Rec Building - Status Report DATE: August 24, 2006 The EDA is the owner of a building located behind Subway and the former downtown liquor store. It is commonly referred to as the "Park & Rec building" or the "old Parks building." It is a two-story brick and concrete block structure that in recent years has been used primarily for the overnight and weekend parking of City vehicles (Engineering, Building Inspections and Park & Rec) and for the storage of City files and records. A few weeks ago, some sheetrock and insulation fell from the ceiling and landed on one of the parked vehicles during the night (no significant damage to the vehicle resulted). The sheetrock had apparently become damaged and weakened due to a roof leak, which was caused by some missing and/or damaged shingles. City staff cleaned up the material that had fallen, and determined that the building could once again be safely used for vehicle parking. The roof appears to be leaking in only one location, and now that the sheetrock directly under that leak is gone, any water that comes through the roof simply falls to the concrete floor below and either runs to a floor drain or seeps through cracks in the concrete. This situation is tolerable during warm weather, but will have to be resolved before winter. The present condition of the building raises both short-term and long-term issues. Short-term issues: City staff members believe that steps should be taken to ensure that the building can be used through the upcoming winter. Parking City vehicles inside during the winter makes them easier to start and eliminates the need to clean off ice and snow every morning. Keeping the vehicles out of the municipal parking lot also makes it easier to plow the lot after a snowfall. In the past, snowplow drivers had to plow around the City vehicles, and then return later to plow again after the vehicles had been moved. Staff members are in the process of obtaining quotes or estimates for the cost of repairing or replacing shingles in the area of the existing leak, and in any other areas that appear likely to leak during the winter. There is no plan to reshingle the entire roof; the objective is simply to protect the interior from the elements at the lowest possible cost. Quotes are also being obtained for replacing the sheetrock that is missing from the ceiling, which is apparently a building code (fire safety) requirement. It is anticipated that the price quotes will be available for the EDA members to review at their meeting in September. Lon2-term issues: Although the building is handy for parking and storage, its age and condition suggest that it will continue to need repair work from time to time. It may have exceeded its useful life, and the EDA may not want to continue to expend funds on it after the upcoming winter. City staff members are in the process of obtaining quotes or estimates for the potential demolition of the building in the spring or summer of2007. That information should also be available for the EDA's review in September. In the meantime, staffwill also examine alternate uses of the site (additional parking for nearby businesses, for example). Staff will also explore options for dealing with the 60-80 boxes of City records that are currently being stored in the building, such as scanning them to create electronic records. RECOMMENDED ACTION: None at this time. Informational or discussion item only. & . ~ . ~.. " .;!tl' ~~'(: "V:'>~ .to,_ ,t' .~ ~ ~;!' 1ii 'G). ... ...... .tJ) ~ ~f... Ir' ~~ +# :/ ~w"'.~ . '\. ~. r - i..: .'r:' . , .It , ~ [, lo. ( r~ ,~ ~~f .~ ~ -- ...~'I =- ..~I - ~~ ~~ rrt.m--l m)" tu:.~ -~ ~~~ . ':' =~~... r.::1 ~~-.. ~. '" a !I Oak Street ~ IjJ cPCDDO c. .- CJ r' - Q' Cl o c , I'.l ~ 'r'-. .~' 1 \, 'fJ ,- . ~. " -...... . not . . l/o.:s.:s: ~:J~ .)......./'..,':..r' i -.' .- .~ ..:LD .:;~C..~:1'!, Project &1).4- P'Vl<>-14, t, i'f' Project No Page Client I Prepared by f)z' f(. Date Calculations for Reviewed by Date ~~;{ ';f;r' .~'"T''''I :,"~ . -. . '--r- ~ !.'<:.,,..,, -' . 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Y!?_~--- I r.<- '~""'-/ ....:=-::.:::::._" H_H ..J.' .::........-- -"- /V. t -.,: i .....L..../..C:::'...... ; (..~=.f..~. ..H..___.._HH~_..~.H_______H..__._......_. ____....__.._._~~__.__......_..._..__._.H.H._~__~_H. c 5)Q [,1"$5 $'- -".,-,."- ...;;';';;0;:;';:';;'; e .............._ ... ......__....__..... :.._ 5 .'-:-g~i~-;~~~.. 6' ': ;;,__li~_:~!:~~CLYd::.....,.---.--~!~t:~=~...."-..;:;..-,; :~~~: '.: ~:....::t..,~o,::.~c:......_I~~d t~,. - .:~::.::~.:.!.~~..:~..::l..:..: ...._ _ _.~~_ ........ ..~f...~:..t~.::-:..~1}<r ....H _5_?>.:::2_:::~::- .:.:..~11'..... :C.(I_ ._s.,;.....:~-.I.'-,>....,./.i~...""...:'1:'~~ ...,.,..._........."'..,.~.-."'.,..~"""'.....,.~.""- .""- ..-.. '.- .~L.~:.._..~I;'. .....:~i~:,.. ....._ . T5.-c~;' :_.-..J.?;..~:1.0::~:~..:...: .t..... ..- .. ..~. .~_ .1.:2.. j~.r~ _.._~':.. (. t:~~F?9?...).... ~ ~~:.:.. .L..c=~_. ;-:,:..:~ ,,- ;?....t.) ,(.,Z j70: .~l~~..~~~~: =~_='.= .H~l~~~H__=_MM___HH..M2_:_ti..'f~ i ~~r-:..I.. _~.~~.._M_~~-::-,~7_"7~-.;:..:_;:;:;:.-:;:_-..:O:"~..- _..___.____J?~:.'_:..r:...j.$:,..;Jl(J.t, ....__{E..',:,.~::,...,J._.._!~__..J~e::_:~...?...._j~::,:!.~:::!!_',;i..___J.L~__..---..-------. G v (~:!{-<L ...5.'_~J:,-,:~/,!;:,~<,..: ,:;:.('. ,I' ~:"-l.{.. .!'.~.~i~!!.~i;~-) . \ ," I S....\:.d(S''''\ ._.I>!:.L.l....:::::... .3...... .... ..__....L ............ ._..l;..? .:~ _.~i-.~. f::.:.'~ -f,i',:c:' ~.~ ~ .., .~ __y..~. .' . , ~ ~ ',-': .!'....-"" / .~--c ~..-.. #-,/ ;;~ ',- (', . <<'-,~6' .f.1~. '2173 ,~;-< ...?:.q=~.~.C..:~ . .~-::""~"~~ ''''..."".;:.~,;::.:.:.';~,.i::~.::..:;_ _....._H.... / ';{ t:;; :~ . ! :5/, :.J ,0/'.'- -, , i; r:.-- i"; _-:- . .- .~., ,~.....~ CV';) .~~ ...._..M....___~..M.._._....___.___~.._....~........._....__~_.._...._H____.._~_H .HM_____.. .._...__.._~._____.___.. ....._H. /-\.\,. r *'" ......-,;,..:,......C""r:.. " -." . ,~ /.~ ",- ,- ~2-::;-.?:l:~"" ,.'~ .. v~. ~ .~.. . ...:.(..! ~.#,,:.- ,::., ,.:- '.~. . . 1'. ,- {.. :) :(~ c:: ,-;... ~ ~,~~.)- .-...r .""-' :i .~_::.~- " .- .. ";H-/~ ..._.. . . . . \... ,~ .......M......~....__..__..____.__. _ H___H__._____ .___ ._...__._.____nH_ .---.-----. c. G City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farminlrton.mn.us t- TO: EDA Members FROM: Kevin Carroll SUBJECT: Park & Rec Building - Status Report DATE: August 24,2006 The EDA is the owner of a building located behind Subway and the fonner downtown liquor store. It is commonly referred to as the "Park & Rec building" orthe "old Parks bUIlding." It is a two-story brick and concrete block structure that in recent years has been used primarily for the overnight and weekend parking of City vehicles (Engineering, Building Inspections and Park & Rec) and for the storage of City files and records. A few weeks ago, some sheetrock and insulation fell from the ceiling and landed on one of the parked vehicles during the night (no significant damage to the vehicle resulted). The sheetrock had apparently become damaged and weakened due to a roof leak, which was caused by some missing and/or damaged shingles. City staff cleaned up the material that had fallen, and determined that the building could once . again be safely used for vehicle parking. The roof appears to be leaking in only one location, and now that the sheetrock directly under that leak is gone, any water that comes through the roof simply falls to the concrete floor below and either runs to a floor drain or seeps through cracks in the concrete. This situation is tolerable during warm weather, but will have to be resolved before winter. The present condition of the building raises both short-term and long-term issues. Short-term issues: City staff members believe that steps should be taken to ensure that the building can be used through the upcoming winter. Parking City vehicles inside during the winter makes them easier to start and eliminates the need to clean off ice and snow every morning. Keeping the vehicles out of the municipal parking lot also makes it easier to plow the lot after a snowfall. In the past, snowplow drivers had to plow around the City vehicles, and then return later to plow again after the vehicles had been moved. Staff members are in the process of obtaining quotes or estimates for the cost of repairing or replacing shingles in the area of the existing leak, and in any other areas that appear likely to leak during the winter. There is no plan to reshingle the entire roof; the objective is simply to protect the interior from the elements at the lowest possible cost. Quotes are also being obtained for replacing the sheetrock that is missing from the ceiling, which is apparently a building code (fire safety) requirement. It is anticipated that the price quotes will be available for the EDA members to review at their meeting in September. LOll2-term issues: Although the building is handy for parking and storage, its age and condition suggest that it will continue to need repair work from time to time. It may have exceeded its useful life, and the EDA may not want to continue to expend funds on it after the upcoming winter. City staff members are in the process of obtaining quotes or estimates for the potential demolition of the building in the spring or summer of2007. That information should also be available for the EDA's review in . September. In the meantime, staff will also examine alternate uses of the site (additional parking for nearby businesses, for example). Staffwill also explore options for dealing with the 60-80 boxes of City records that are currently being stored in the building, such as scanning them to create electronic records. RECOMMENDED ACTION: None at this time. Informational or discussion item only. ! Valley Creek Express Blower™ Service ecaI651-458-0778 . II Free 877-77-MULCH Fax 651-458-0822 www.valleycreekmulch.com ~ .~ MN -5209 t:::' A Division of Valley Creek Express, Inc. 8362 Tamarack Village Suite 119-443 Woodbury MN 55125 Work Estimate All figures are estimates. Actual totals may vary due to the actual amount of product used. PRICES ARE VALID 60 days from estimate date. Contact Person: .-- HM\.~7;Y\Fi K I j~!k Phone: (.-;,t; i - U~} - I f2.. i Email: Client: O.Ift,i ~"' j:::jJIl!...iMIt.:.6nlv ., r- Address for Billing: 7J 26 l HJ,k 'Sf' City, State, Zip: f:Af-m INl:ifDA1 ';;;"- 2 II . ",(I . Office Phone: I Fax: it-;;' - Lflt, ~ - 1ft, If Email: Hose length needed: /}rJ~: Truck #: Description of Service: (\'n\ c';:.{- <:;;.:::tC\ o,~ -.\- ~.~ (t" 4f' 9>100 ~x1 \ Location of Service: _~g ai',\ 5-, tiJi!/}ll A, tlTf! (oJ Directions: ~h.v';,{ J)";l.; S-"Jt'\. y'4~~ t11 ~I.(t~' Cf'\ (~.Lflpo~\{b.k ~~ :'1 E!.,.\. ~OS-l-~ ~ '~I-.i- v 'vi. !,.d 0{ i ,,-.c. d,;-"'V1(~ :,.h'Ulo I Estimate: includes product, deliverv. application and clean-up Product Estimated Quanitity Price per $1[Jiczyar.d' Total Application Price s.~. ()b . ('lit <:;'00 sa' ~'i- l) Estimated Schedule Date: Invoices 11 Payments: 1/2 down, balance due upon completion unless otherwise noted. Jobs are scheduled upon receipt of down payment & signed estimate. Trip Charge: A $500 trip charge will be assessed if we arrive at your site on your scheduled day and tile site is not prepared for install. Cancellations to your scheduled day must be made at least 24 hours in advance. . '1'-'+ "~~'\of' 11 !J./I,s-i:.:!:. Start Time: Visa or MasterCard Card #: Expiration Date: Card Holder Name: Address: City, State, Zip: Amount to be applied: Signature: CVV#: . I hereby accept all terms in the stated contract and the wor!{ estimate as an acting agent for the above stated client 'Iient/Contact Person Signature: Date: Valley Creek Express Blower™ Service: Cell Phone: {;(1. ~t;(1- J.7t.f-~ Date: 1/~?'(~ f' . E-mail: t.l:/t71(i:~!i1.(it~e.~i:IJ..I1-ticJ( . eiJ-1J1 I / p Parking Lot Estimate (Rough Estimate) *Price does not include cost associated with the demolition of existing building . Pave Entire Lot Unit Unit Price Quantity Total Saw Cut Bituminous LF $ 5.00 265 $ 1,325.00 Bituminous Removal SY $ 5.00 462 $ 2,310.00 Class 5 (8" Section) TON $ 25.00 458 $ 11,450.00 Bituminous Base TON $ 80.00 120 $ 9,600.00 Bituminous Wear Course TON $ 80.00 120 $ 9,600.00 Total $ 34,285.00 Contigency (10%) I $ 3,428.50 Total Construction Cost I $ 37,713.50 27% Engineering and Administration $ 10,182.65 Total Cost I $47,896.15 Pave Only Where Building Has Been Demolished ( 1'-/ (0~)' !:;-- \ ::\ (\...) Unit Unit Price Quantity Total Saw Cut Bituminous LF $ 5.00 180 $ 900.00 Bituminous Removal SY $ 5.00 98 $ 490.00 Class 5 (10" Section) TON $ 25.00 298 $ 7,450.00 Bituminous Base TON $ 80.00 78 $ 6,240.00 Bituminous Wear Course TON $ 80.00 78 $ 6,240.00 total $ 21,320.00 . Contigency (10%) I $ 2,132.00 Total Construction Cost I $ 23,452.00 27% Engineering and Administration $ 6,332.04 Total Cost I $ 29,784.04 .*, 1>~cs ,No j- -r I I _/I C It) (( f' . (AI^" I'"h- .f\:lh.J /} C),r- et/r 1.,,';' I I ; :j v'nl'/" .