HomeMy WebLinkAbout08.27.07 EDA Packet - with some notes
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AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
August 27, 2007 - 6:00 p.m.
City Council Chambers, City Hall
Members
1. (6:00 p.m.) Call Meeting to Order - workine: meal/lie:ht supper
Todd Arey
(Chair)
2. Pledge of Allegiance
Paul Hardt
(Vice Chair)
3. Approve Agenda
Erik Starkman
4. Citizens CommentslPresentations
a. Kraus Anderson Retail Development
Matt Alexander
Director of Real Estate Development, Kraus Anderson
Yvonne Flaherty
Chad Collignon
.
David McKnight
City Council
5. Consent Agenda (see attached)
a. Bills
b. July 23, 2007 Minutes
c. June & July Budget Details
Christy Jo Fogarty
City Council
6. Public Hearings (None)
Peter Herlofsky
City Administrator
7. Unfinished Business J~
~pdate (see attached, Lisa) p~ {1 '\
b. Regan Development Contract (see attached, Tina"
City Staff Representatives
Lisa Dargis
Administrative Assistant
8. New Business
a. Redevelopment District #2 (see attached)
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9. (6:30 p.m.) Visioning Session
a. Paul Hardt-Visioning Information
Tina Hansmeier
Economic Development Specialist
325 Oak Street
Farmington, MN 55024
10. City Staff Reports
See Economic Update, attached
Phone: 651.463.7111
http://www.ci.farmington.mn.us
11. Adjourn
. The Farmington EVA's mission is to improve the economic vitality of the city of Farmington and to enhance the overall
.. quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by
expanding the tax base through development and redevelopment.
(20071\osn07 LilA Agenda
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.
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
August 27, 2007 - 6:00 p.m.
City Council Chambers, City Hall
Members
1. (6:00 p.m.) Call Meeting to Order - workine: meal/lie:ht supper
Todd Arey
(Chair)
2. Pledge of Allegiance
Paul Hardt
(Vice Chair)
3. Approve Agenda
Erik Starkman
4. Citizens Comments/Presentations
a. Kraus Anderson Retail Development
Matt Alexander
Director of Real Estate Development, Kraus Anderson
Yvonne Flaherty
Chad Collignon
.
David McKnight
City Council
5. Consent Agenda (see attached)
a. Bills
b. July 23, 2007 Minutes
c. June & July Budget Details
Christy Jo Fogarty
City Council
6. Public Hearings (None)
Peter Herlofsky
City Administrator
7. Unfinished Business
a. Market Study Update (see attached, Lisa)
b. Regan Development Contract (see attached, Tina)
City Staff Representatives
Tina Hansmeier
Economic Development Specialist
8. New Business
a. Redevelopment District #2 (see attached)
Lisa Dargis
Administrative Assistant
9. ( 6:30 p.m.) Visioning Session
325 Oak Street
Farmington, MN 55024
10. City Staff Reports
See Economic Update, attached
Phone: 651.463.7111
htto:/ /www.ci.farmington.mn.us
11. Adjourn
.The Farmington EVA's mission is to improve the economic vitality of the city of Farmington and to enhance the overall
quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by
expanding the tax base through development and redevelopment.
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
REGULAR MEETING
July 23, 2007
1.
Call Meeting to Order
The meeting was called to order by Chairperson Arey at 7:00 p.m.
Members Present: Arey, Hardt, Flaherty, Starkman, Collignon, Fogarty
Members Absent: McKnight
Also Present: Tina Hansmeier-Economic Development Specialist, Peter
Herlofsky-City Administrator, Lisa Dargis-Administrative
Assistant, Richard Fursman-Global Synergy Group, Jim Norman-
Norman and Assoc., Ruthe Batulis-Northem Dakota County
Chamber of Commerce, Ladonna Boyd-Dakota Electric. Doug
Bonar-I.S.D. #192
2.
Pledge of Allegiance
3.
Approve Agenda
MOTION by Hardt, second by Fogarty to approve the agenda. APIF, MOTION
CARRIED.
4.
Citizen's Comments
None
5. Consent Agenda
a.) Bills
b.) June 25, 2007 Minutes
MOTION by Hardt, second by Fogarty to approve the consent agenda. APIF,
MOTION CARRIED.
6. Public Hearings
None
7. Unfinished Business
a.) Follow-up from 6/25/07 EDA Meeting
Staff provided information that had been requested at the June EDA Meeting
regarding the bills and the December 2007 meeting date. Information received.
b.)
McVicker Lot Update.
Mr. Joe Heinen, the developer for the vacant McVicker lot has requested an
extension of his current Contract for Private Development. The developer would
like to submit his construction plans by December 31, 2007. He has requested to
extend the construction commencement date from Spring 2007 to Spring 2008,
and to extend the construction completion date from Fall 2007 to Fall 2008.
EDA Minutes
July 23, 2007
Page 2
.
MOTION by Hardt, second by Starkman to extend the developer's deadline for
plan submittal to 12/31/2007. APIF, MOTION CARRIED.
8. New Business
a.) Visioning Session
The EDA Members took part in a visioning session, facilitated by Richard
Fursman and Jim Norman. The session focused on the EDA's structure and the
organization of City Staff as it pertains to the EDA. There was discussion
regarding the collective strengths that each of the Members bring to the group and
their primary objectives. Past successes that have been achieved were identified.
There will be a second visioning session at the next regular meeting on August
27,2007 at 6:00 p.m. The agenda and summary of the first session are attached.
b.) Framework Document
Copies of the Framework document were provided to the EDA Members.
9.
City Staff Reports/Discussion
The EDA Members were invited to attend the Comprehensive Plan Community Meeting
at 6:00p.m. on Thursday, July 26th at the Central Maintenance Facility.
.
10. Adjourn
MOTION by Starkman, second by Flaherty to adjourn at 8:43 p.m. APIF, MOTION
CARRIED.
Respe..ct , ubmitted,
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.
.
.
EDA Structure Meeting: July 23, 2007
EDA Member Strengths
. Commercial lending officer: Understands
world of economics
. Project Manager
. Farm Background
. Fonner City Council Member
. Live & Work in the City
. Experience on the HRA
. Public Finance Background
. Independent Contractor
. Attorney
. Public Administrator
TOP 2 PRIORITIES
1. Create Commercial & Industrial Tax
Base
2. Job Creation
3. Encourage Further ED in City
4. Maintain Current Development
5. Economic Development
6. Facilitate Business Growth
7. Put Economic Development Plan in place
8. More Downtown Businesses
9. Promote Business Growth
10. Get Blighted land back on Tax Base
11. Facilitate Redevelopment
12. Preservation
"Things we've done well"
. City Center
o "Facilitators & go-between"
o Helped assemble land
. I-Park
o Land Acquisition
o Staff fields inquiry
. Negotiate Development agreements
. City Hall
o Acquire Land
. Town Homes
o Redevelopment
o Elimination of
contaminationlblight
. Contract Compliance
. Becoming EDA
. Spruce Street Bridge
o Grant
City of Farmington EDA Visioning Session
July 23, & August 27,2007
.
Goals for Visioning Sessions:
. Define the desired role(s) of the EDA and Staff
. Identify operating/reporting structure
. Review and Prioritize Economic Development Policies and Goals
. Set timetables
Today 001
> Tomorrow
EDA Strengths
. What individual strengths/talents/specialties do EDA members bring to the
group?
. What are some (fairly recent) Economic Development success stories to date?
. What roles did everyone play in the success?
Have there been any unrealized oppo.rtunities, something that could have happened,
but... ?
EDA Organization
.
. What is the current ED structure (org chart)?
. What roles do people have?
. How are staff members being used?
. What would the ideal flow chart look like?
Economic Development Goals
. Review and renew comprehensive list of goals.
. Establish priorities
o Are their any goals that must come first?
o Are their any areas that are more important than others?
. Identify Project Management for priority goals.
.
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City of Farmington
325 oak. Street, Farmington, MN 55024
(651) 463-7111 Fax (651) 463-2591
~.ci.farmin~on.nm.u~
TO:
EDA Members
FROM:
Lisa Dargis, Administrative Assistant
SUBJECT: Market Study Update
DATE:
August 27, 2007
~ODUcrION
McComb Group has provided an update on the progress of the Market Study.
{!ISCUSSION.
Information has been received from Linda Oie at McComb GrouP regarding the work that
has been completed thus far on the Market Study. as well as the tasks that are currently in
process. As of August is. 2007. tbey have completed 16 busineSS owner interviews and
summarized the responses. processed customer spotting survey results from 6 retailers. and
compiled the competitive data for Farmington. The consultants are currently working on
the trade area analysis. They feel that the Retail Market Analysis is progressing well at this
point. The Market Study timeline is attached for reference.
t
r'
ACOON REOUESTED
This item is for informational purposes only.
~ed~
Lisa Dargis. A~ve Assistant
.
~r
.
.
.
City of Farmington
325 Oak Street
Farmington, Minnesota
651.463.7111 . Fax 651.463.2591
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
SUBJECT:
Tina Hansmeier, Economic Development Specialist
Contract for Private Development
DATE:
August 27, 2007
INTRODUCfION
Please review the attached Contract for Private Development for the last EDA-owned Industrial
Park Lot.
DISCUSSION
If this document meets your approval staff will then send copies of the original document to Mr.
Regan for his review and execution. Upon receiving the executed contract and the earnest
money in the amount of $10,000, staff would arrange to have the EDA Chair and the Executive
Director execute and enter into this Contract.
ACfION REOUESTED
Approve Contract for Private Development and authorize execution upon receipt of Mr. Regan's
signed Contract and earnest money in the amount of $10,000.
Sincerely,
Tina Hansmeier,
Economic Development Specialist
cc:
Peter HerloJSky Jr, City ~
Andrea McDowell-Poehler, City Attorney
Joel Jamnik, City Attorney
Robin Roland, Finance Director
Lee Mann, Director of Public Works
File
CONTRACT FOR PRIVATE DEVELOPMENT
FARMINGTON, MINNESOTA
THIS AGREEMENT, made on or as ofthe _ day of ,2007, by and
between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
FARMINGTON, a public body corporate and politic under the laws ofthe State of Minnesota
(the "EDA") and POR-MKR REAL ESTATE, LLC, a ("Developer").
WITNESSETH:
WHEREAS, the EDA was created pursuant to Minnesota Statutes, Sections
469.090-.108 and was authorized to transact business and exercise its powers by a resolution of
the City Council of the City of Farmington pursuant to Section 469.093 of the Act; and
WHEREAS, as of the date ofthis Agreement there has been a proposal that the EDA
approve the sale of the real property described in Exhibit "A" attached hereto (the "Property") to
the Developer for development of at least a 12,000 square foot building that would include areas
for Bus & Truck Terminal uses in the City of Farmington (the "Project"); and
WHEREAS, the EDA believes that the Project and fulfillment generally of this
Agreement is in the best interest of the EDA and the health, safety, morals and welfare of the
residents of the City of Farmington and in accord with the public purposes and provisions ofthe
applicable state and local laws and requirements.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I.
DEFINITIONS
.
.
.
.
.
.
In this Agreement, unless a different meaning clearly appears from the context:
"Act" means Minnesota Statutes, Sections 469.090-.108, as amended.
"Agreement" means this Contract for Private Development by and between the EDA
and the Developer, as the same may be from time to time modified, amended or supplemented.
"Articles and Sections" mentioned by number only are the respective Articles and
Sections ofthis Agreement so numbered.
"City" means the City of Farmington, Minnesota.
"County" means the County of Dakota, Minnesota.
"Deed" means the limited warranty deed to be executed by the EDA conveying the
Property to the Developer.
"Developer" means POR-MKR REAL ESTATE, LLC, or any assigns that have received
prior written approval from the EDA.
"EDA" means the Economic Development Authority in and for the City of Farmington.
"Event of Default" means an action by the Developer listed in Article VII of this
Agreement.
"Minimum Improvements" means at least a 12,000 square foot building to be moved to
the Property or constructed in conformance with applicable design standards and appurtenant
improvements thereto constructed on the Property and driveways, walks and parking fixtures and
equipment by the Developer, in accordance with all applicable local, state and federal regulations
governing such facilities, and in conformance with site plans as the same have been submitted to
the EDA.
"Parties" means the Developer and the EDA.
"Party" means either the Developer or the EDA.
"Project" means the Property and the completed Minimum hnprovements thereon.
"Property" means the real property described as shown in Exhibit "A" attached hereto.
"Purchase Price" means the sum of One and 50/1 00 ($1.50) Dollars per square foot as
determined by a survey of the Property to be prepared under this Agreement, which the
Developer shall pay the City for the purchase ofthe Property, less any earnest money paid by the
Developer. The estimated purchase price is Two Hundred Twenty-five Thousand One Hundred
Eighty-eight and no/100 ($225,188.00) Dollars.
114487.07
Rev: 8/23/07
2
"State" means the State of Minnesota.
.
"Unavoidable Delays" means delays outside the control of the Party claiming its
occurrence which are the direct result of strikes, other labor troubles, unusually severe or
prolonged bad weather, Acts of God, fire or other casualty, litigation commenced by third parties
which, by injunction or other similar judicial action, directly results in delays, or acts of any
federal, state or local governmental unit (other than the City pursuant to this Agreement) which
directly result in delays. Unavoidable Delays shall not include delays in the Developer's
obtaining permits or governmental approvals necessary directly to enable construction of the
Minimum Improvements, unless such permitting or approvals process is unforeseeably delayed.
ARTICLE II.
REPRESENTATIONS AND WARRANTIES
Section 2.1. Representations and Warranties by the EDA. The EDA represents and
warrants that:
(a) The EDA is a public body corporate and politic duly organized and existing under
the laws of the State. Under the provisions of the Act and the laws of the State,
the EDA has the power to enter into this Agreement and carry out its obligations
hereunder.
(b)
(c)
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The activities of the EDA are undertaken for the purpose of creating additional
job opportunities within the City and to enhance the economic diversity ofthe
City and to provide essential products and services within the City.
.
To the best of the EDA's knowledge, no toxic or hazardous substances or wastes,
pollutants or contaminants (including, without limitation, asbestos, urea
formaldehyde, the group of organic compounds known as polychlorinated
biphenyls, petroleum products including gasoline, fuel oil, crude oil and various
constituents of such products, and any hazardous substance as defined in any
Environmental Law (collectively, "Hazardous Substances") have been generated,
treated, stored, transferred from, released or disposed of, or otherwise placed,
deposited in or located on the Property in violation of any Environmental Law,
nor has any activity been undertaken on the Property that would cause or
contribute to the Property becoming a treatment, storage or disposal facility
within the meaning of any Environmental Law. The term "Environmental Law"
shall mean any and all federal, state and local laws, statutes, codes, ordinances,
regulations, rules, policies, consent decrees, judicial orders, administrative orders
or other requirements relating to the environment or to human health or safety
associated with the environment, all as amended or modified from time to time.
To the best of ED A's knowledge, there has been no discharge, release or
threatened release of Hazardous Substances from the Property, and there are no
Hazardous Substances or conditions in or on the Property that may support a
claim or cause of action under any Environmental Law. The Property is not now,
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and to the best of the EDA's knowledge never has been, listed on any list of sites
contaminated with Hazardous Substances, nor used as landfill, dump, disposal or
storage site for Hazardous Substances. To the best ofthe EDA's knowledge, it
has maintained all records required to be kept concerning the presence, location
and quantity of asbestos containing materials, and presumed asbestos containing
materials, in the Property and will deliver the same to the Developer on or before
closing. The EDA makes no representation or warranty, either express or
implied, that the Property is suitable for the Developer's needs except as
specifically set forth in this Agreement.
(d)
To the best knowledge ofthe EDA, the EDA is not in default concerning any of
its obligations or liabilities regarding the Property.
(e)
There is no action, litigation, investigation, condemnation or proceeding of any
kind, including but not limited to condemnation, pending or, to the best
knowledge ofthe EDA, threatened against the EDA or any portion ofthe
Property.
(f)
The EDA certifies and warrants that the EDA does not know of any "Wells" on
the described Property within the meaning of Minn. Stat. ~ 1031. This
representation is intended to satisfy the requirements of that statute.
(g)
To the best knowledge of the EDA after due inquiry, no above ground or
underground tanks are located in or about the Property, or have been located
under, in or about the Property and have subsequently been removed or filled. To
the extent storage tanks exist on or under the Property, such storage tanks have
been duly registered with all appropriate regulatory and governmental bodies, and
otherwise are in compliance with applicable federal, state and local statutes,
regulations, ordinances and other regulatory requirements.
(h) That the Property abuts Middle Creek which is regulated by the Minnesota
Department of Natural Resources.
(i) Solely for purposes of satisfying the requirements of Minn. Stat. ~ 115.55, the
EDA represents that there is no "individual sewage treatment system" (within the
meaning of that statute) on or serving the Property.
The EDA will indemnify the Developer, its successors and assigns, against, and will hold the
Developer, its successors and assigns, harmless from, any expenses or damages, including
reasonable attorneys' fees, that the Developer incurs because of the breach of any of the above
representations and warranties, whether such breach is discovered before or after Closing.
Consummation of this Agreement by the Developer with knowledge of any such breach by the
EDA will not constitute a waiver or release by the Developer of any claims due to such breach.
Section 2.2. Representations and Warranties by the Developer. The Developer
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represents and warrants that:
.
(a) The Developer has the capacity to enter into this Agreement and to perform its
obligations hereunder.
(b) When the Property is conveyed to the Developer, the Developer will construct,
operate and maintain the Minimum Improvements upon the Property in
accordance with the terms of this Agreement, and all local, state and federal laws
and regulations (including, but not limited to, environmental, zoning, building
code and public health laws and regulations).
(c) The Minimum Improvements will be constructed by the Developer, at its sole
expense, in such manner, and at such expense as are necessary to make the
Property usable by the Developer, including all such improvements as are
necessary to make said facility comply with all applicable federal, state and local
rules, regulations, ordinances and laws.
(d) The Developer will use reasonable efforts to construct the Minimum
Improvements in accordance with all local, state or federal energy-conservation
laws or regulations.
(e)
The Developer will use reasonable efforts to obtain, in a timely manner, all
required permits, licenses and approvals and to meet, in a timely manner, all
requirements of all applicable local, state and federal laws and regulations which
must be obtained or met before the Minimum Improvements may be lawfully
constructed. The EDA will cooperate to expedite the processing of any
application filed with the City by the Developer. The EDA does not hereby
warrant or represent that it or the City will approve an application filed by
Developer, except as expressly provided in this Agreement.
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(t) The Developer will cooperate with the EDA, and the EDA will cooperate with the
Developer with respect to any litigation commenced with respect to the Property
or the Minimum Improvements.
(g) The Developer will construct the Minimum Improvements on the Property in
accordance with the plans approved by the EDA.
(h) Neither the execution and delivery ofthis Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement is prevented, limited by or conflicts with,
or results in a breach of, the terms, conditions or provisions of any corporate
restriction or any evidences of indebtedness, agreement or instrument of whatever
nature to which the Developer is now a party or by which it is bound or
constitutes a default under any ofthe foregoing.
(i)
Whenever any Event of Default occurs and if the EDA shall employ attorneys or
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incur other expenses for the collection of payments due or to become due or for
the enforcement of performance or observance of any obligation or agreement on
the part of the Developer under this Agreement, the Developer agrees that it shall,
within ten (10) days of written demand by the EDA, pay to the EDA the
reasonable fees of such attorneys and such other expenses so incurred by the
EDA.
ARTICLE III.
CONVEYANCE OF PROPERTY
Section 3.1. Status of Property. Subject to the satisfaction of the terms and conditions
of this Agreement, the EDA will convey the Property to Developer through the execution and
delivery ofthe Deed containing a right of reversion as provided under Section 7.3 of this
Agreement.
Section 3.2. Conditions Precedent to Conveyance of Property.
(a) The EDA's obligation to convey the Property shall be subject to the satisfaction
of, or waiver by the EDA of, all ofthe following conditions precedent:
(i)
The Developer not being in default beyond applicable notice and cure
periods under the terms of this Agreement;
(ii) The Developer having secured all governmental permits and approvals,
including building permits necessary to be obtained in order to permit
construction of the Minimum Improvements; and
(iii) The Developer shall have submitted to the EDA and the EDA shall have
approved Construction Plans for the Minimum Improvements pursuant to
Article IV of this Agreement.
(b) The Developer shall be obligated to accept title to the Property subject to
satisfaction, or waiver by the Developer, of the following conditions precedent:
(i) The EDA not being in default beyond applicable notice and cure periods
under the terms of this Agreement; and
(ii) The Developer having secured the EDA's approval of the Construction
Plans and all other governmental permits and approvals, including
building permits necessary to construct the Minimum Improvements.
(iii) Approval of the environmental condition of the Property.
(iv) Approval ofthe condition of the soil for the construction ofthe Minimum
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Improvements.
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(v) Approval of the condition ofthe title of the Property.
(vi) Approval of City and County zoning requirements and restrictions
applicable to the Property.
(vii) The Developer determining that City water and sewer are available to the
Property and that the water pressure is adequate to sprinkler all Minimum
Improvements to be constructed.
(viii) The representations and warranties of the EDA contained in this
Agreement must be true now and on the Closing Date as if made on the
Closing Date.
Section 3.3. Purchase Price. The Purchase Price for the Property shall be payable by
Developer to the EDA as follows:
(a) $10,000.00 as earnest money ("Earnest Money");
(b) The balance of the Purchase Price in cash or by wire transfer at the closing.
Section 3.4. Closing.
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(a) Within ten (10) days after the satisfaction and/or waiver of all of the conditions
contained in Section 3.2 of this Agreement (and in any event no later than
Septmeber 15, 2007, the "Closing Date") provided all conditions precedent for the
EDA and Developer to close have either been met or waived, and the Developer
pays the City the Purchase Price, the EDA shall convey the Property to the
Developer through the execution and delivery ofthe Deed with the right of
reversion described in Section 3.1 above, and all other documents reasonably
required by Developer and the Title Company. The closing shall be at a location
mutually agreed upon by the parties.
(b) The Developer shall take possession of the Property upon execution and delivery
of the Deed by the EDA at closing.
(c) The Deed shall be in recordable form and shall be promptly recorded along with
this Agreement.
(d)
At closing, the Developer shall pay: all closing costs including, but not limited to,
state deed tax relating to the conveyance of the Property, all title insurance
company fees for title insurance premiums, if any, one half of closing costs, all
recording fees and conservation fees. Property taxes shall be prorated to the
closing date. Developer shall assume all pending and levied assessments.
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(e)
At the time of the conveyance of the Property by EDA to Developer, the EDA
shall deliver to Developer (if the EDA has not already done so), all other
documents reasonably required by Developer's title agent in order to complete the
transaction described herein.
Section 3.5. Title. Developer shall, at its sole cost and expense, obtain a current
commitment for the issuance of a ALTA Form B owner's policy oftitle insurance (the
"Commitment") issued by Title committing to insure that Developer will have good and
marketable title to the Property free and clear of all liens, restrictions, covenants and
encumbrances. A mortgage, monetary lien or any other lien or encumbrance against the property
shall be deemed to be a title objection. In the event any exceptions are listed in the Commitment
(except for Permitted Encumbrances), if the EDA does not immediately remove the exceptions,
the Developer shall have the right to terminate this Agreement as the Developer's sole and
exclusive remedy and in such event neither the EDA nor the Developer shall have any
obligations or liability to the other hereunder.
Section 3.6. Charges to be Paid by Developer.
(a) The Developer shall be responsible to pay, at closing, the following charges and
fees, which may be amended to reflect changes in the final plans from the assumptions identified
herein:
(i)
surface water management fees = $23.151.31
This amount is based upon the 1996 fee calculation, adjusted to 2007.
(ii) water main trunk area charges = $6266.43
This amount is based upon the 1996 fee calculation, adjusted to 2007.
(iii) water treatment plant fees = $ TBD
This fee is based upon a charge of _ Residential Equivalent Units (REUs)
at $645 per REU, under the City's 2007 fee schedule. The actual number
of REUs may be lower or higher, and the final Water Treatment Plant Fee
may be correspondingly lower or higher, based upon the construction
plans that are ultimately approved and the date of construction. Number
of REUs will be based on approved construction plans and shall be paid
along with building permit fees. No estimate provided at this time.
(iv) sanitary trunk area charges = $6.680.31
This amount is based upon 1996 fee calculation, adjusted to 2007
(v) park dedication fees = $2.823.84
This amount is based upon 1996 fee calculation, adjusted to 2007
(vi) GIS fees = $310.50
This amount is based upon 1996 fee calculation, adjusted to 2007
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(vii) Surveying/Platting fees:
$1.221. 00
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(viii) Water quality management fee =
This fee is based on a 2006 fee calculation, adjusted to 2007.
$535.00
At Developer's request, the City will assess the amounts under subsection (i) - (v) against
the Subject Property. At that time, the Developer will have the option of paying the
assessment in full or having the assessment added to the Subject Property tax bill. If the
latter option is selected, the assessments shall be spread over a ten-year period with 5%
interest on the unpaid balance from the time of the initial adoption of the assessment.
The assessment shall be deemed adopted on the date this Contract is signed by the City.
Developer waives any and all procedural and substantive objections to the assessments
under this section, including but not limited to hearing requirements and any claim that
the assessment is unlawful or exceeds the benefit to the property assessed. Developer
waives any remedies or appeal rights otherwise available pursuant to law or Minnesota
Statute ~ 429.081.
(b) The Developer shall be responsible to pay, prior to obtaining a building permit
for the Minimum hnprovements, all charges and fees identified herein, and other charges and
assessments as may be imposed, such as (but not limited to) the following:
(i)
Water and Sewer Connection Charges = $7.105.00
For sewer, this fee includes Metro Sewer Availability Charges and City
Sewer Availability Charge and connection permit. Sewer charges are
based upon 3 SAC units and J CSAC units. The actual number of SAC
and CSAC units may be lower or higher, and the final sewer charges may
be correspondingly lower or higher, based upon the constructions plans
that are ultimately approved. SAC charges will be charged based on the
current rates. CSAC and connection permit amounts are based upon a
1996 fee calculation, adjusted to 2007.
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For water, this fee includes a WAC and connection permit charge. The
WAC charge is based on a 1" water connection. The final WAC will be
lower or higher if the construction plans that are ultimately approved
reflect a smaller or larger water connection. The WAC and connection
permit amounts are based upon a 1996 fee calculation, adjusted to 2007.
(ii)
Water meter fee =
$490
(iii) building permit fees.
Any of the above fees that are calculated at 2007 rates, shall be calculated at the current
city rates, in the event a building permit is not issued before December 31. 2007.
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Section 3.7. Other Charges. In addition to the utility charges and other charges and
fees referred to in this Agreement, other fees due the City are building permit fees such as for
signs, electrical, and plumbing.
ARTICLE IV.
CONSTRUCTION OF MINIMUM IMPROVEMENTS
Section 4.1. Construction of Minimum Improvements. The Developer agrees that it
will construct the Minimum hnprovements on the Property in accordance with construction plans
approved by the EDA, (the "Construction Plans") and will operate and maintain, preserve and
keep the Minimum hnprovements or cause the Minimum hnprovements to be maintained,
preserved and kept with the appurtenances and every part and parcel thereof in good repair and
condition.
Section. 4.2. Construction Plans.
(a)
On or before August 15.2007, the Developer shall submit to the EDA a site plan
for the Property ("Site Plan") and the Construction Plans for the Minimum
Improvements. The Construction Plans shall provide for the construction ofthe
Minimum hnprovements and shall be in conformity with this Agreement, the Site
Plan, and all applicable state and local laws and regulations. The EDA and/or the
City Engineer shall approve the Construction Plans in writing if, in the reasonable
discretion of the EDA and/or City Engineer: (i) the Construction Plans conform to
the terms and conditions of this Agreement; (ii) the Construction Plans conform to
all applicable federal, state and local law, ordinances, rules and regulations; (iii)
the Construction Plans are adequate to provide for the construction ofthe subject
Minimum hnprovements; and (iv) no Event of Default has occurred and is
continuing hereunder. No approval by the EDA and/or City Engineer under this
Section 4.2 shall relieve the Developer of the obligation to comply with the terms
of this Agreement, applicable federal, state and local laws, ordinances, rules and
regulations, or to construct the Minimum hnprovements. No approval by the
EDA and/or City Engineer shall constitute a waiver of an Event of Default. The
EDA and/or City Engineer shall review the Construction Plans within thirty (30)
days after submission of a complete set of Construction Plans and either approve
the same or provide Developer with a list of specific required changes to be made
to the Construction Plans. Upon making the specific changes to the Construction
Plans as required by the EDA and/or City Engineer, the Developer shall submit
the Construction Plans with the required changes to the City Engineer for his
approval and if Developer made the required changes, the Construction Plans
shall be approved.
(b)
If the Developer desires to make any material change in any Construction Plans
after their approval by the EDA and/or City Engineer, the Developer shall submit
the proposed change to the City Engineer for his approval. If the Construction
Plans, as modified by the proposed change, conform to the requirements of this
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Section 4.2 of this Agreement with respect to such previously approved
Construction Plans, the EDA and/or City Engineer shall approve the proposed
change and notify the Developer in writing of its approval.
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Section 4.3. Construction of Minimum Improvements. The Developer shall
commence construction ofthe Minimum Improvements on or before October 1. 2007. Subject to
Unavoidable Delays, the Developer shall substantially complete construction of the Minimum
Improvements, except for landscaping, exterior matters such as paving, and minor "punch list
items", on or before June 30. 2008.
Section 4.4. Construction Requirements. In constructing the Minimum Improvements,
the Developer shall comply with all federal, state and local laws and regulations, including the
following requirements:
a. Erosion Control and Fees. After the site is rough graded, but before any utility
construction is commenced or building permits are issued, an erosion control plan shall
be implemented by the Developer and inspected and approved by the City. The City may
impose additional erosion control requirements if it is determined that the methods
implemented are insufficient to properly control erosion. All areas disturbed by the
excavation and back-filling operations shall be re-seeded forthwith after the completion
of the work in that area. All seeded areas shall be fertilized, mulched and disc anchored
as necessary for seed retention. The parties recognize that time is of the essence in
controlling erosion. If the Developer does not comply with the erosion control plan and .
schedule, or supplementary instructions received from the City, or in an emergency
determined at the sole discretion of the City, the City may take such action as it deems
appropriate to control erosion immediately, without notice to the Developer. The City
will endeavor to notify the Developer in advance of any proposed action, but failure of
the City to do so will not affect the Developer's and the City's rights or obligations
hereunder. If the Developer does not reimburse the City for any costs of the City
incurred for such work within thirty (30) days, the City may upon any available security
to pay such costs. No building permits will be issued unless the development is in full
compliance with the erosion control requirements. The Developer is responsible for
Erosion Control inspection fees at the current rate(s). The Developer is also responsible
for a Water Quality Management Fee based upon the number of acres acquired by the
Developer. This fee is due and payable at the time of closing or at such other time as
may be mutually agreed upon by the parties hereto.
b. License. The Developer hereby grants the City, its agents, employees, officers and
contractors, a license to enter the Property to perform all necessary work and/or
inspections deemed appropriate by the City during the installation of public
improvements by the City. The license shall expire after the public improvements
installed pursuant to this Agreement have been installed by the City. During its use of
the license herein granted, the City shall not unreasonably interfere with Developer's use
and enjoyment of the Property or the construction of the Minimum Improvements.
Further, the City shall indemnify the Developer against all losses, claims, and causes of .
action resulting from the City's use of this license, or the City's presence on the Property.
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.
c. Clean UP. The Developer shall weekly, or more often if required by the City Engineer,
clear from the public streets and property any soil, earth or debris resulting from
construction work by the Developer or its agents or assigns. All debris, including brush,
vegetation, trees and demolition materials, shall be disposed of off site. Burning of trees
and structures shall be prohibited, except for fire training only. The City has a contract
for street cleaning services. The City will have the right to clean the streets as outlined in
current City policy. The Developer shall promptly reimburse the City for street cleaning
costs.
d. Enforcement: Liens. The Developer shall reimburse the City for costs incurred in the
enforcement ofthis Contract, including engineering and attorney's fees. In the event that
the City receives claims from labor, materialmen, or others that have performed work
required by this Contract, that the sums due them have not been paid, and the laborers,
materialmen, or others are seeking payment from the City, the Developer hereby
authorizes the City to commence an Interpleader action pursuant to Rule 22, Minnesota
Rules of Civil Procedure for the District Courts, to draw upon any available security in an
amount up to 125% of the claim(s) and deposit the funds in compliance with the Rule,
and upon such deposit, the Developer shall release, discharge, and dismiss the City from
any further proceedings as it pertains to the funds deposited with the District Court,
except that the Court shall retain jurisdiction to determine attorneys' fees pursuant to this
Contract.
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e. Bills. The Developer shall pay in full all bills submitted to it by the City within thirty (30)
days after receipt. If the bills are not paid on time, the City may halt all site development
work until the bills are paid in full. Bills not paid within thirty (30) days shall accrue
interest at the rate of eight percent (8%) per annum. If the bills are not paid within sixty
(60) days, the City has the right to draw from the Developer's security to pay the bills.
Section 4.5. Failure to Accept Title to Property or to Construct. In the event all
conditions precedent herewith are met or waived and the Developer fails to accept title to the
Property pursuant to Article III or construction of the Minimum Improvements is not completed
as provided in Section 4.3 ofthis Agreement (subject to the provisions of Article VII hereof), the
Developer shall be liable to the EDA for the amount of the EDA's actual expenses related to this
Agreement as liquidated damages.
Section 4.6. Security. As security for the obligations created in this Section and in
Section 3.2 and elsewhere herein, the Developer shall deliver to the EDA at closing, an
irrevocable Letter of Credit, in the form attached hereto as Exhibit "C", from a bank or other
security satisfactory to the EDA (cash escrow) in the amount of$151.690.00. The amount ofthe
security was calculated as follows:
.
. Landscaping $ 9,922.00
. Bituminous Parking and Drive Area $47,430.00
. Utilities $64.000.00
TOT AL PROJECT SECURITIES (with 25% Mult.) $151,690.00
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This breakdown is for historical reference; it is not a restriction on the use of the .
security. The bank shall be subject to the approval of the EDA Attorney. The security shall
be for a term ending November 31. 2008. Individual security instruments may be for shorter
terms provided they are replaced at least thirty (30) days prior to their expiration. The EDA
may draw down the security, without notice, for any violation of the terms of this
Agreement or if the security is allowed to lapse prior to the end of the required term. If the
required improvements are not completed at least thirty (30) days prior to the expiration of
the security, the EDA may also draw it down. If the security is drawn down, the proceeds
shall be used to cure the default. Upon receipt of proof satisfactory to the EDA that work
has been completed and financial obligations to the EDA have been satisfied, with EDA
approval the security may be reduced from time to time by eighty percent (80%) of the
financial obligations that have been satisfied. Twenty percent (20%) of the security shall be
retained until all improvements have been completed and all financial obligations to the
EDA satisfied.
At Developer's option, the project security required above may be partially satisfied by
Developer providing written directions to the City of Farmington to transfer funds otherwise
owed to Developer by the City for 210th Street Right of Way to the City of Farmington
EDA to be held as a cash escrow security under this Section. The EDA may draw down on
either the LOC or cash escrow at its discretion for any default. Amounts released by the
EDA from the total project securities upon completion of improvements and satisfaction of .
obligations to the EDA may be apportioned at Developer's direction between the LOC or
cash escrow.
As further security for the aforesaid obligations, the Developer shall arrange to have the
EDA and City named as an additional insureds on any payment or performance bond(s) that the
Developer obtains from its construction contractor(s). As further security for the aforesaid
obligations, the Developer shall ensure that the terms of its construction financing and/or title
insurance include a provision requiring EDA and City approval prior to the payment or
disbursement of any funds for construction-related expenses. The City may draw on such
security under those circumstances expressly provided for in this Agreement
ARTICLE V.
REAL PROPERTY TAXES
Section 5.1. Developer's Obligations. The Developer shall pay all real property taxes
payable with respect to the Property after closing.
Section 5.2. Review Waiver. The Developer agrees that prior to the year 2008:
(a)
It will not seek administrative review or judicial review of the applicability of any
tax statute relating to the taxation of real property contained on the Property
determined by any tax official to be applicable to the project or the Developer or
raise the inapplicability of any such tax statute as a defense in any proceedings,
13
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including delinquent tax proceedings;
(b)
It will not seek administrative review or judicial review ofthe constitutionality of
any tax statute relating to the taxation of real property contained on the Property
determined by any tax official to be applicable to the project or the Developer or
raise the unconstitutionality of any such tax statute as a defense in any
proceedings.
ARTICLE VI.
BUSINESS SUBSIDY
Intentionally Left Blank.
ARTICLE VII
Events of Default
Section 7.1. Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean, whenever it is used in this
Agreement (unless the context otherwise provides), anyone or more of the following events, if
any of the following occurs and continues for thirty (30) days after demand to cure is delivered
to the Developer by the EDA, or if such Event of Default cannot reasonably be cured within such
thirty (30) day period, if Developer fails to provide to the EDA reasonably adequate assurances
that Developer will continue to perform in compliance with this Agreement:
(a) Failure by the Developer to pay when due any payments required to be paid under
this Agreement or to pay when due ad valorem taxes on the Property.
(b) Failure by the Developer to commence, diligently pursue and complete
construction of the Minimum Improvements, or portions thereof, pursuant to the
terms, conditions and limitations ofthis Agreement.
(c) Failure by Developer to observe or perform any other covenant, condition,
obligation or agreement on its part to be observed or performed hereunder.
(d)
The Developer does any of the following: (i) files any petition in bankruptcy or
for any reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under United States Bankruptcy Laws or any similar
federal or state laws; or (ii) make an assignment for the benefit of its creditors; or
(iii) admit, in writing, its inability to pay its debts generally as they become due;
or (iv) be adjudicated, bankrupt or insolvent.
(e)
If any warranty or representation by the Developer in this Agreement is untrue in
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any material respect.
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Section 7.2. EDA's Remedies on Default. Whenever any Event of Default by
Developer referred to in Section 7.1 of this Agreement occurs, the EDA may take anyone or
more of the following actions:
(a) Suspend its performance under the Agreement until it receives assurances from
the Developer, reasonably deemed adequate by the EDA, that the Developer will
cure its default and continue its performance under the Agreement.
(b) Terminate this Agreement;
(c) In the event of default by the Developer with respect to the Developer's
obligation to complete the Minimum Improvements, the EDA may, at its option,
perform the work and the Developer shall promptly reimburse the EDA for
reasonable expenses incurred by the EDA, provided the Developer has been given
notice of the default and the opportunity to cure as set forth above. This
Agreement is a license for the EDA to act under the circumstances herein set
forth, and it shall not be necessary for the EDA to seek a court order for
permission to enter the Property under such circumstances.
(d)
Take whatever action, including legal, equitable or administrative action, which
may appear necessary or desirable to the EDA to collect any payments due or
damages arising under this Agreement or to enforce performance and observance
of any obligation, agreement, or covenant of the Developer under this Agreement.
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Section 7.3. Revesting Title in EDA Upon Happening of Event of Default
Subsequent to Conveyance to Developer. In the Event that subsequent to the execution and
delivery of the Deed the Developer shall fail to complete construction of the Minimum
Improvements in conformity with this Agreement and such failure shall not be cured within
thirty (30) days after written notice to do so, or within a reasonable amount of time thereafter if
Developer is diligently proceeding with the construction of the Minimum Improvements, then
the EDA shall have the right to immediately re-enter and take possession of the Property and to
terminate (and revest in the EDA) the estate conveyed by the Deed to the Developer, it being the
intent of this provision, together with other provisions of the Agreement, that the conveyance of
the Property to the Developer shall be made upon, and that the Deed shall contain a condition
subsequent to the effect that in the event of any default on the part of the Developer and failure
on the part of the Developer to remedy, end, or abrogate such default within the period and in the
manner stated in such subdivisions, the EDA at its option may declare a termination in favor the
EDA of the title, and all of the rights and interests in and to the Property conveyed to the
Developer, and that such title and all rights and interests of the Developer, and any assigns or
successors in interest to and in the Property, shall revert to the EDA.
Section 7.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to
the EDA is intended to be exclusive of any other available remedy or remedies, but each and .
every such remedy shall be cumulative and shall be in addition to every other remedy given
114487.07
Rev:8/23/07
15
.
.
.
. under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.
Section 7.5. Attorneys' Fees. Whenever any Event of Default occurs and either the
EDA or the Developer shall employ attorneys or incur expenses for the collection of payments
due or to become due or for the enforcement of performance or observance of any obligation or
agreement under this Agreement, the defaulting party agrees that it shall, within ten (10) days of
written demand by the other party pay the reasonable fees of such attorneys and such other
expenses so incurred by the non-defaulting party; provided, that such non-defaulting party
prevails in is claim for enforcement of this Agreement.
ARTICLE VIII.
ADDITIONAL PROVISIONS
Section 8.1. Certificate of Completion. Promptly after substantial completion of the
Minimum Improvements in accordance with those provisions of this Agreement, the EDA will
furnish Developer with a certificate of completion substantially in the form shown at Exhibit "B"
(the "Certificate of Completion"). Such certification by the EDA shall be a conclusive
determination of satisfaction and termination of the agreements and covenants in this Agreement
with respect to the obligations of Developer, and its successors and assigns, to construct the
Minimum Improvements, and shall operate to forever waive the EDA's interest in the Property,
including the right of reverter.
If the EDA shall refuse or fail to provide any certification in accordance with the provisions of
this Section 8.1, the EDA shall, upon demand, provide Developer with a written statement,
indicating in adequate detail in what respect Developer has failed to complete the Minimum
Improvements in accordance with the provision of this Agreement, or is othelWise in default, and
what measures or acts will be necessary, in the opinion of the EDA, for Developer to take or
perform in order to obtain such certification. Upon Developer's completion of the items so
described by the EDA, the EDA shall deliver a fully executed Certificate of Completion to
Developer.
Section 8.2. Restrictions on Use. The Developer agrees for itself and its successors and
assigns and every successor in interest to the Property, or any part thereof, that the Developer
and such successors and assigns shall devote the Property to, and only to, and in accordance
with, the uses specified in the City Code.
Section 8.3. Equal Employment Opportunity. The Developer, for itself and its
successors and assigns, agrees that during the construction of the Minimum Improvements
provided for in this Agreement it will comply with all applicable federal, state and local equal
employment and nondiscrimination laws and regulations.
Section 8.4. Conflicts of Interest. No member of the governing body or other official
of the EDA shall have any financial interest, direct or indirect, in this Agreement, the Project or
114487.07
Rev: 8/23/07
16
any contract, agreement or other transaction contemplated to occur or be undertaken thereunder
or with respect thereto, nor shall any such member of the governing body or other official
participate in any decision relating to the Agreement which affects his personal interest or the
interest of any corporation, partnership or association in which he is, directly or indirectly,
interested. No member, official or employee of the EDA shall be personally liable to the
Developer or any successors in interest, in the event of any default or breach by the EDA or for
any amount which may become due to the Developer or successor or on any obligations under
the terms of the Agreement.
.
Section 8.5. Waiver and Release by Developer. The Developer hereby waives,
releases and forever discharges the EDA from any claim for costs incurred in preliminary plans,
specifications, site testing improvements, professional fees or legal fees in connection with the
Project.
Section 8.6. Titles of Articles and Sections. Any titles of the several parts, Articles and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 8.7. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under the Agreement by either party to the
other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested or delivered personally; and
(a)
In the case of the Developer, is addressed or delivered personally to:
.
POR-MKR REAL ESTATE, LLC
101 East 10th Street
Suite 300
Hastings, MN 55033
Telephone: 651-437-9421
Facsimile: 651-437-9197
with a copy to:
Richard Hocking
10657 165th St. W.
Lakeville, MN 55044
.
114487.07
Rev: 8/23/07
17
.
.
.
(b)
In the case of the EDA, is addressed or delivered personally to:
Economic Development Authority in
and for the City of Farmington
City of Farmington
325 Oak Street
Farmington, MN 55024
with a copy to:
Economic Development Authority Attorney
Andrea McDowell Poehler
CAMPBELL KNUTSON
Professional Association
1380 Corporate Center Curve, Suite #317
Eagan, Minnesota 55121
Telephone: (651) 452-5000
(c) Either Party may, upon written notice to the other Party, change the address to
which such notices and demands are made.
Section 8.8. Disclaimer of Relationship. The Developer acknowledges that nothing
contained in this Agreement nor any act by the EDA or the Developer shall be deemed or
construed by the Developer or any third person to create any relationship of third-party
beneficiary, principal and agent, limited or general partner or joint venture between the EDA and
the Developer.
Section 8.9. Covenants Running with the Land. The terms and provisions of this
Agreement shall be deemed to be covenants running with the Property and shall be binding upon
any successors or assigns of the Developer and any future owners or encumbrancers of the
Property.
Section 8.10. Counterparts. This Agreement is executed In any number of
counterparts, each of which shall constitute one and the same instrument.
Section 8.11. Law Governing. This Agreement will be governed and construed in
accordance with the laws of Minnesota.
Section 8.12. Facsimile Signature. The parties hereto acknowledge and agree that in
order to expedite the signing of this Agreement and the processing, and review and compliance
with the terms hereof, the parties may utilize facsimile equipment to transmit and convey
signatures hereto and such other information as may be necessary. With respect to any such
transmission bearing a signature for any party hereto and on which the receiver is or may be
reasonably expected to rely, than if such a facsimile transmission is corroborated by regular
facsimile printout showing the telephone number from which transmitted together with a date
and time of transmission, it shall be binding on the sending party and may be relied upon by the
114487.07
Rev: 8/23/07
18
party receiving the same. The sending party hereby acknowledges such reliance and waives any
defenses to the use of such documents or signatures.
Section 8.13. Approvals and Consents. Wherever the EDA's approval or consent is
required by this Agreement, such approval or consent shall not be unreasonably withheld,
conditioned or delayed, unless otherwise expressly set forth herein.
114487.07
Rev: 8/23/07
19
.
.
.
.
.
.
IN WITNESS WHEREOF, the EDA has caused this Agreement to be duly executed in
its name and behalf, and the Developer has caused this Agreement to be duly executed in its
name and behalf, on or as of the date first above written.
Economic Development Authority in
and for the City of Farmington
By:
Its President
By:
Its Executive Director
Developer:
POR-MKR REAL ESTATE, LLC
By:
ST ATE OF MINNESOTA)
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day of , 2007,
by and , the President and Executive Director, respectively, of the
Economic Development Authority in and for the City of Farmington, Minnesota, a public body
corporate and politic under the laws of the State of Minnesota, on behalf of the public body
corporate and politic.
Notary Public
STATE OF MINNESOTA )
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this
2007, by , the
day of
of POR-MRK REAL
114487.07
Rev: 8/23/07
20
ESTATE, LLC, a
DRAFTED BY:
CAMPBELL KNUTSON, P.A.
1380 Corporate Center Curve, Suite #317
Eagan, Minnesota 55121
Telephone: (651) 452-5000
114487.07
Rev:8/23/07
corporation, on its behalf.
.
Notary Public
.
.
21
.
EXHIBIT" A"
LEGAL DESCRIPTION OF THE PROPERTY
Lot 3, Block 1, Farmington Industrial Park 20gth Street Addition, according to the
recorded plat thereof, Dakota County, Minnesota.
.
.
EXHIBIT "B"
.
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that POR-MRK REAL ESTATE, LLC ("Developer") has
fully complied with its obligations to construct the Minimum Improvements under that document
titled Contract for Private Redevelopment dated ,2007, by and between
the Economic Development Authority in and for the City of Farmington (the "EDA") and
Developer, and that Developer is released and forever discharged form its obligations under the
Agreement with respect to the obligations of Developer, and its successors and assigns, to construct
the Minimum Improvements, and the EDA waives any right, title or interest it may have in the
Property, including a right of reverter. The Dakota County Recorder's Office is hereby authorized
to accept for recording the filing of this instrument, to be a conclusive determination ofthe
satisfaction and termination ofthe covenants and conditions of the Contract for Private
Redevelopment described above.
IN WITNESS WHEREOF, the EDA has caused this Certificate to be duly executed in its
name and behalf on or as ofthe date first above-written.
Economic Development Authority in
and for the City of Farmington
By:
.
Its President
By:
Its Executive Director
STATEOFMINNESOTA )
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _ day of ,2007, by
and , the President and Executive Director, respectively, of the
Economic Development Authority in and for the City of Farmington, Minnesota, a public body
corporate and politic under the laws of the State of Minnesota, on behalf of the public body
corporate and politic.
Notary Public
.
.
.
.
EXHIBIT "C"
IRREVOCABLE LETTER OF CREDIT
No.
Date:
TO: Economic Development Authority in
and for the City of Farmington
325 Oak Street
Farmington, MN 55024
Dear Sir or Madam:
We hereby issue, for the account of
Irrevocable Letter of Credit in the amount of $
draft drawn on sight on the undersigned bank.
. and in your favor, our
, available to you by your
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. , dated
20_, of (Name of Bank) ";
b) Be signed by the Chair and Executive Director of the Economic Development Authority in
and for the City of Farmington ("Farmington EDA").
c) Be presented for payment at (Address of Bank)
This Letter of Credit shall automatically renew for successive one-year terms from the date
indicated above unless, at least forty-five (45) days prior to the next annual renewal date, the Bank
delivers written notice to the Farmington EDA Executive Director that it intends to modify the terms
of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid,
and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date
addressed as follows: Farmington EDA Executive Director, 325 Oak Street, Farmington, MN 55024,
and is actually received by the Farmington EDA Executive Director at least thirty (30) days prior to
the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be
modified, amended, amplified, or limited by reference to any document, instrument, or agreement,
whether or not referred to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one
draw may be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs
and Practice for Documentary Credits, International Chamber of Commerce Publication No. 400.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be
duly honored upon presentation.
[name]
Its: [identify official
[NAME OF BANK]
By:
.
.
.
.
.
.
TO:
City of Farmington
325 Oak Street
Farmington, Minnesota
651.463.7111 . Fax 651.463.2591
www.ci.farmington.mn.
FROM:
Robin Roland, Finance Director \,,-,./
SUBJECT:
City Center TIP District developer payments
DATE:
August 22, 2007
DISCUSSION
Mr. Tom Wartman (developer of the City Center project) has requested that the EDA (City)
fulfill the TIP reimbursement outlined in section 6.3 of the original "Contract for Private Sale"
agreement he took over from George Daniels and Elm Park Limited in 1997. Mr. Wartman
believes that he should have been receiving $5,203.26 annually as stated:
In the event Developer shall construct additional improvements on the project property in
excess of the minimum improvements described herein as additional commercial building
or buildings on the Project Property, developer shall be entitled to fifty percent of the
additional real estate tax increment generated thereby for the remainder of the term of
this agreement (20 years maximum). Said payments shall be derived only from the
additional taxes received from the additional improvements to the project property and
shall be payable from tax increment received by the HRA from the County within forty-
five (45) days of the receipt thereofby the HRA.
The $5,203.26 was determined by Jerry Hendricks in January of 1997 based on increased square
footage (over the 39,574 sq. ft. minimum improvements) and taxes per square foot. (See exhibit
A)
The $5,203.26 was paid to Mr. Daniels in 1996 prior to the sale of the property to Mr. Wartman.
Mr. Wartman believed he should have received this amount each year from 1997 through 2006
(or $52,032.60 total for all 10 years).
However, there was also an agreement with this project which identified a minimum amount of
taxes which were to be paid on the properties in the TIP district. If the minimum threshold of
$94,978 were not met, the developer was to pay the City the difference between taxes paid and
that amount. In 1998 and 2000, the City received payments from the developer to make up the
difference. In 2002 however, the City should have collected $8,721.94 under this agreement and
did not.
Consequently, I would propose that a payment be made to Mr. Wartman, in his capacity as
developer of the City Center project in the amount of $46,555.07 ($52,032.60 - $8,721.94 plus
interest at the average rate of3% for the last 10 years). Payment of$5,203.26 for 2007 would be
made at the same time but without interest applied to that portion. The funds would come from
the TIP project fund for the City Center district.
I would also note that this reimbursement is only for the improvements made to the property .
prior to 1999. Obviously, significant improvement in this TIP district occurred with construction
of the Pelicci Hardware Building and the multi-tenant building which houses the Farmington
Liquor Store. However, State Statute limits TIP reimbursement for costs incurred to those costs
incurred up to five years after the TIP certification date, in this case August 16, 1994. The Statute
takes precedence over the TIP agreement.
ACTION REQUIRED
Approve payment to City Center LLC (Tom Wartman) of $51,758.33 ($46,555.07 plus
$5,203.26) to bring the City Center TIP district reimbursement current to 2007 under the original
agreement.
;&]2i~
, Robin Roland
Finance Director
.
.
E:y,. h I bAt- .(\- .
To:
Robin Roland
City Finance Director
.
From: Gerald A. Henricks
HRA Executive Director
Subject: City Center TIF Payment
Date: January 31,1997
Attached for review are copies of sections of the City Center Contract for Private Sale
Agreement. The Second Addendum to the Agreement, Section 6.3, Contingent Tax
Increment To Be Received By Developer In the Event of Additional Improvements,
requires that the HRA provide 50% of the additional real estate tax increment generated
over and above the Minimum Improvements identified in the Amended and Restated
Contract For Private Sale Agreement, Section 1.1, Definition. These payments were to
start in 1996, however, no disbursement of increments were provided to the Developers
in 1996 from tax increments.
.
The following is the breakdown for disbursement for tax increments for the City Center
project:
Minimum Improvements
Actual improvements to the site,
1. More 4 Grocery Store 31,082 s.f.
2. Mr. Movies 3,224 s.f.
3. Pellicci Hardware 5,400 s.f.
4. Chiropractors 1,200 s.f.
5. Travel Connection 1,200 s.f.
6. Great Clips 1,200 s.f.
7. Island Tan 1.200 s.f.
Total actual improvements
Square feet in excess of Minimum Improvements
39,574 square feet(s.f.)
44.506 square feet(s.f.)
4,932 square feet
Taxes generated on the site are as follows for 1996,
1996 taxes $93,905.52
taxes per square foot $93,905.52 divided by 44,506 square feet = $2.11/s.f.
taxes per square foot $2.11 divided by 2 = $1.055 per square foot
additional improvements 4,932 X $1.055 = $5,203.26
The City Center Developers should receive annually for 20 years, if no further
improvements are added to the project, TIF disbursement of $5,203.26.
.
Would you please provide a check to the City Center Developers a check in the amount
of$5,203.26 for the 1996 TIP disbursement.
Mailing address:
.
% George Daniels
Elm Park Limited, Inc.
8100 Wayzata Blvd.
Wayzata, Mn. 55426
If there are any questions, please feel free to contact me.
~4~;LJ
Gerald A. Henricks
HRA Executive Director
.
.
.
.
.
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:
Visioning Ideas
DATE:
August 27, 2007
INTRODUCfION
Please see attached information provided by Paul Hardt.
DISCUSSION
In addition to the attached information Paul Hardt will be presenting ideas for a vision
of Farmington at Monday's meeting.
ACI'ION REQUESTED
Information only.
Sincerely,
~
(
~
Tina Hansmeier,
Economic Development Specialist
.
A VISION OF FARMINGTON
EDA Members and Friends of the EDA:
I thought I would stimulate some discussion about a vision for our community with some
random thoughts about what might or could be done to develop business in Farmington.
These are all strictly hypothetical thoughts. Where specific Farmington businesses are
mentioned, the ideas presented are strictly hypothetical, and won't necessarily be a
"campaign" or a "crusade" on my part to change these businesses.
As you know, from our discussions, I have found the example ofNaperville, IL, to be
very helpful in giving me a vision of what we could do in Farmington. However, there
must be 50 Napervilles in the US, so we shouldn't slavishly follow their examples. It just
helps to have a community that has "been there" and can show us the way.
You can use the links in the document to take you to interesting, instructive, and
stimulating websites. Once again, these are not offered as dictates for how we should do
things-just "thought starters."
I hope these ideas stimulate some of your thinking. ".
.
Historic Downtown http://www.naperville.il.us/photogallerv.aspx
Establish district boundaries
Concentrate on restoration of buildings, open space
Make Historic Downtown-City Centre a destination for Events (planned by
Convention and Visitors Bureau)
Formal and aggressive plan for River Walk
http://www.napervilleriverwalk.comlPicture%20Gallery/picturegallery.htm
Through City Centre, along Vermillion to Dexterity Dental
Riverside dining-buy Dexterity Dental property and develop as dining
location
A way to keep diverse areas (Vermillion Crossing, Downtown, City
Centre) integrated
.
.
Gateway North and Gateway South http://www.gatewaybusinesspark.com
Office complexes, with parking, restaurants
Highway 3-North end of Farmington, South end
Replace present Farmington Mall
Gateway West Industrial Park and Office buildings
http://www.towbes.com/commerciaVcastillian/
Highway 50-West entrance to Farmington
Central Open Space of Farmington
County Golf Course http://www.southemhillsgolfcourse.com/
18 Holes
Clubhouse and Community Center
. Four Year College Campus http://www.noctr1.edu/
http://www .hnu.edu/
Employment
Performing Arts Center
Athletic Facilities
Purchase Locally
Active Events Calendar--http://www.naperville.i1.us/calendar.aspx
Frequent Events, which draw people to downtown area
Coordinated with Dakota County Fair Grounds activities
Structure of Economic Development Planning
Formal
.
Present structure-Council, Planning Commission, EDA
.
Well-financed EDA efforts-tax increment financing, grants;
Incentives to bring developers in to build office buildings
(Gateway Developments)
Conscious effort to keep far-flung areas coordinated and synergizing
Quasi-govemmental-http://www.naoer.orgl
Partnership of ED A with Economic Growth Committee
Partnership recruits businesses; Formal structure judges appropriateness
Convention and Visitors Bureau
Get CEEF involved, as well as all other local groups
"Greater Farmington"
.
Fully annex Empire Township
Strong, joint planning process with Castle Rock, Eureka Townships
Active cooperation with Dakota County Fair Grounds
http://www.hasbrouck-heights.comlblvd/index.shtml
When event is held there, Farmington businesses know and offer
discounts, other attractions to "Come Downtown" after visiting Dakota
City.
.
.
.
.
City of Farmington
325 Oak Street, Farmington, MN 55024
(651) 463-7111 Fax (651) 463-2591
www.ci.farmington.nm.us
TO:
EDA Members
FROM:
Lisa Dargis, Administrative Assistant
SUBJECT: Farmington Economic Update Newsletter
DATE:
August 27, 2007
INTRODUCfION
Staff has created a newsletter focused on economic development activities and information.
DISCUSSION
In an effort to provide information relating to local business and economic development
staff activities in a more useable and interesting format, staff has created a newsletter. The
initial intent is to publish the newsletter on a monthly basis and distribute it to the
recipients of the EDA agenda packets. There has been some discussion regarding the
possible posting of the newsletter on the City's website. Due to the fact that some of the
information in the newsletter has the potential to be considered sensitive; there would be a
need to modify the more public version when necessary. Please review the attached
newsletter and provide any feedback you may have regarding content or distribution.
AcrION REQUESTED
This item is for information only.
R e. s,?-~~tfu..~./ SUbm.. .i.tt..ed. '
/~/
.Y"'. /.' . ~ '.. /.:"_._--~.._..
;(__1 .....e_ ./~-_
. LIsa Dargis'Adnu~eASsistant
Workshops, Training &
Networking
. Lisa Dargis attended the Indus-
trial Real Estate & Economic
Development Conference
. Tina Hansmeier has been at-
tending the weekly Elm Street
Construction Update Meetings
and the monthly Downtown
Business Association meetings.
. Tina Hansmeier went to the City
of Burnsville's August Economic
Growth Committee meeting.
r---- 1
Communications
. Staff met with Matt Alexander
from Kraus Anderson regard-
ing a potential "Big Box" re-
I tailer
. . Allina Medical Clinic met with
staff regarding relocating
within Farmington and ex-
panding their operations
. Discussions were held with
Anna's Bananas Daycare
regarding relocation
. Staff met with a local church
to discuss rental options and
land availability
Inquiries
Commercial Space 5
Commercial Land 5
Industrial Space 0
Industrial Land
Retail Space 2
Retail Land 0
Funding 1
Misc. 1
- - ----,
Farmington Economic Update
Economic Development Staff Report
L.
Charleswood Marketplace Update
With the construction of the
CVS Pharmacy now well under-
way, there has been significant
interest in potential tenants in
the other two buildings to be
located in the Charleswood
Marketplace Development on
195th St. and Pilot Knob Road.
According to representatives
from the leasing agency, Fair-
view Clinics will be occupying
the 1st floor of the medical
office building. The strip center
will have a dental clinic, an eye
clinic and a coffee & bakery
shop. Look for further updates
as the remaining spaces are
leased...
Lillian's Designer Handbags Comes to
Downtown
A new business is coming to
downtown Farmington. At least,
this business is new to us. With
8 locations in Minnesota and
Wisconsin, Lillian's is establish-
ing a name for themselves.
Founded just two years ago in
Buffalo, Minnesota, the trendy
accessory shop offers a unique
shopping experience to patrons
of all ages. To quote their web-
site, "Lillian's prides itself on
it's malnstreet mania when
looking into a site selection to
grow their company. They focus
on a downtown tradition of re-
tail charm and Midwest style of
hospitality..." To learn more
about this exciting new addition
to Downtown Farmington
please visit their website at
www.lilliansshoppe.com.
Lillian's will be located at:
344 Third Street (the Exchange
Bank Building).
Their grand opening will be
September 13-16.
They will be open the second
weekend of each month.
Hours of Operation
Thursday 10-8
Friday 10-5
Saturday 10-5
Sunday 11-4
Vacant Space within
Farmington Marketplace
leasedl
Jon Einess, the developer for
the Farmington Marketplace
has indicated that the vacant
space within the building that
currently contains the Farming-
ton Liquor Store and Dominos
Pizza has now been leased.
The space was formerly occu-
pied by Snap Fitness, who relo-
cated to a larger space in an
adjacent building. Watch for
details......
Broadband Solutions Is
Moving
After a year in the former
downtown liquor store build-
ing, Broadband solutions is
moving to the JDS Profes-
sional Building at 821 3rd
Street. This new space will
better suit their needs by
offering them loading bays
and a larger maintenance
area.
Edina Realty looking to
Relocate
Staff is attempting to meet
with business representa-
tives to offer assistance in
their search for a new loca-
tion in Farmington.
.
.
EDA Structure Meeting: July 23, 2007
EDA Member Strengths
. Commercial lending officer: Understands
world of economics
. Project Manager
. Farm Background
. Former City Council Member
. Live & Work in the City
. Experience on the HRA
. Public Finance Background
. Independent Contractor
. Attorney
. Public Administrator
TOP 2 PRIORITIES
I. Create Commercial & Industrial Tax
Base
2. Job Creation
3. Encourage Further ED in City
4. Maintain Current Development
5. Economic Development
6. Facilitate Business Growth
7. Put Economic Development Plan in place
8. More Downtown Businesses
9. Promote Business Growth
10. Get Blighted land back on Tax Base
11. Facilitate Redevelopment
12. Preservation
"Things we've done well"
. City Center
o "Facilitators & go-between"
o Helped assemble land
. I-Park
o Land Acquisition
o Staff fields inquiry
. Negotiate Development agreements
. City Hall
o Acquire Land
. Town Homes
o Redevelopment
o Elimination of
contamination/blight
. Contract Compliance
. Becoming EDA
. Spruce Street Bridge
o Grant
.
.
EDA Structure Meeting: July 23, 2007
EDA Member Strengths
. Commercial lending officer: Understands
world of economics
. Project Manager
. Farm Background
. Former City Council Member
. Live & Work in the City
. Experience on the HRA
. Public Finance Background
. Independent Contractor
. Attorney
. Public Administrator
TOP 2 PRIORITIES
1. Create Commercial & Industrial Tax
Base
2. Job Creation
3. Encourage Further ED in City
4. Maintain Current Development
5. Economic Development
6. Facilitate Business Growth
7. Put Economic Development Plan in place
8. More Downtown Businesses
9. Promote Business Growth
10. Get Blighted land back on Tax Base
11. Facilitate Redevelopment
12. Preservation
"Things we've done well"
. City Center
o "Facilitators & go-between"
o Helped assemble land
. I-Park
o Land Acquisition
o Staff fields inquiry
. Negotiate Development agreements
. City Hall
o Acquire Land
. Town Homes
o Redevelopment
o Elimination of
contamination/blight
. Contract Compliance
. Becoming EDA
. Spruce Street Bridge
o Grant
.
August 27, 2007
It is 2018 and everything you realistically could want for Farmington is
now here. What is it? What does it look like?
.
~ Northfield is a Farmington Bedroom community
~ There is a $500,000 balance in the Public Private
Development Corporation
~ There is office and retail development up and down Highway 50
~ Township Annexation is Complete
~ The school boundary matches the City
~ There is a destination down-town with specialty retail
~ There is a hospitality/convention center with two hotels
~ There are higher paying jobs
~ Green Corridor Remains
~ Big Box Stores giving more options
~ VRC Completed - Life Style Center
~ More Head-of-Household Jobs
~ Areas linked with trails and walkways
~ In-fill development has occurred down town
~ Events are coordinated between organizations
~ There is a community center
~ The river is used as an asset
~ Economic development is focused on all areas
~ There are mass transit options
~ There are college classes offered and a 2 or 4 year college
~ Golf Course
~ There is a designated Industrial Park
~ Highway 3 is developed
~ Farmington mall is redeveloped into offices
~ More mixed housing
~ The development process at City Hall is fast-tracked
~ History is reflected in new development
~ Some roads now pass over the rails
~ Residents are working in town
~ There are offices located at Highway 3 & 50
.
Economic Development
Vision of
Farmington
.
.
.
VISION
ST A TEMENT(S)
Farmington is a vibrant community comprised of an
integrated network of commercial, industrial, educational
and hospitality opportunities surrounded by natural
esthetics.
Farmington is a community that combines abundant natural
resources with an established down - town and a sense of
community. The City offers a wide variety of
commercial/industrial opportunities with a strong
employment base and housing options. Residents enjoy a
high quality of life with a strong transportation system,
diverse services and unique shopping opportunities.
Farmington is a vibrant, diverse, growing, economically
sustained community. .
Farmington is a vibrant, high quality of life that combines
abundant natural resources and sense of community with an
established Down Town. The City offers a diverse, growing,
economically sustained community with excellent schools,
quality jobs, unique shopping, and housing options.
.
.
.
City of Farmington
325 Oak Street, Farmington, MN 55024
(651) 463-7111 Fax (651) 463-2591
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Lisa Dargis, Administrative Assistant
SUBJECT: Farmington Economic Update Newsletter
DATE:
August 27, 2007
INTRODUCTION
Staff has created a newsletter focused on economic development activities and information.
DISCUSSION
In an effort to provide information relating to local business and economic development
staff activities in a more useable and interesting format, staff has created a newsletter. The
initial intent is to publish the newsletter on a monthly basis and distribute it to the
recipients of the EDA agenda packets. There has been some discussion regarding the
possible posting of the newsletter on the City's website. Due to the fact that some of the
information in the newsletter has the potential to be considered sensitive; there would be a
need to modify the more public version when necessary. Please review the attached
newsletter and provide any feedback you may have regarding content or distribution.
ACTION REQUESTED
This item is for information only.
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