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Home My WebLink About11.13.06 EDA Packet - with notes The Farmington EDA'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. . AGENDA ECONOMIC DEVELOPMENT AUTHORITY November 13, 2006 - 7:00 p.m. City Council Chambers, City Hall Members 1. Call Meeting to Order Todd Arey (Chair) 2. Pledge of Allegiance 3. Approve Agenda P a.u.J D tN\J \ ct- Paul Hardt (Vice Chair) 4. Citizens Comments Erik Starkman 5. Consent Agenda Pa..uJ Y V on n c.. a. Bills " b. October 23, 2006 Minutes Yvonne Flaherty Chad Collignon 6. Public Hearings (N~me) ~\ k-.) p~~ Christy Jo Fogarty City Council . David McKnight City Council 7. Unfinished Business a. Highway 50 striaVCommercial Corridor (see attached maps) b. McVicker - Heinen (proposed Addendum, attached) c. Surnmary,ofBusinesses-Closed or Relocated, 2003-2006 (see attached) d. R & L Trucking Update e. Proposed Sale of Industrial Park lot (Regan) (see attached memo) City Staff Reoresentatives Peter Herlofsky City Administrator 8. New Business a. Elm Street Reconstruction Project (ESRP) Update (see attached excerpts from Feasibility Report) b. 2006 Commercial Permit Chart (see attached) c. Commercial/Industrial Square Footage by Year; Commercial Base Fees by Year (updated charts, attached) d. Dakota County CDA Redevelopment Incentive Grant Program (see attached staff memo and the CDA's Request for Proposals Guide) e. Potential Code Improvements to [Former] Duebers Property (see attached memo) Kevin Carroll Connnunity Development Director Tina Hansmeier Economic Development Specialist 325 Oak Street Farmington, MN 55024 Phone: 651.463.7111 Internet: www.ci.farmington.mn.us 9. City Staff Reports . 10. Adjourn P aM-\ ) l)a. vi ot e ~ ~ l ~ BUS TOUR REMINDER - The bus will leave at 8AM on November 18th. Please be on time. Thanks. K:\HRA-EDA\Board Agendas (2006)\111306 EDAAgenda.doc . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING November 13, 2006 1. Call Meeting to Order The meeting was called to order by Chairperson Arey at 7:00 p.m. Members Present: Arey, Collignon, Fogarty, Hardt, McKnight, Flaherty, Starkman Members Absent: None Also Present: Economic Development Specialist Tina Hansmeier, City Administrator Peter Herlofsky, Mr. Paul Otten 2. Pledge of Allegiance 3. Approve Agenda Item 8e was moved ahead to accommodate the audience. MOTION by Hardt, second by McKnight, to approve the agenda. APIF, MOTION CARRIED. 4. Citizen's Comments None 5. Consent Agenda MOTION by Hardt, second by Flaherty, to approve the Consent Agenda as follows: a.) Bills b.) October 23,2006 Minutes APIF, MOTION CARRIED 6. Public Hearings None 7. Unfinished Business a.) Highway 50 Commercial/Industrial Corridor Revised maps were presented to the EDA Members. The maps were revised to reflect the preferences indicated by the Members at the October 23rd meeting. The information will be forwarded to the Planning Division for inclusion in the upcoming visioning sessions to be held in January and February of2007. b.) McVicker Lot - Heinen The Contract for Private Development was amended to extend the completion dates for the project per Mr. Heinen's request. MOTION by Starkman, second by Hardt to approve the Addendum. APIF, MOTION CARRIED. c.) Summary of Businesses - Closed or relocated, 2003-2006 Information was provided to the Members. There was discussion regarding the former MasterTech Plastics building and potential redevelopment of the site. EDA Minutes November 13, 2006 Page 2 . d.) R & L Trucking Update The building permit was issued for this project on November 6, 2006. e.) Proposed Sale of Industrial Park Lot (Regan) As was initially discussed at the August 8, 2006 EDA Meeting, Mr. Patrick Regan is interested in buying the last remaining ED A-owned lot in the Farmington Industrial Park. Staff is requesting that the EDA's attorney begin preparation of a Contract for Private Development with Mr. Regan. The Members were in favor of proceeding with the preparation of the Contract. 8. New Business a.) Elm Street Reconstruction Project (ESRP) Update The Feasibility Report for the Elm Street Reconstruction Project was provided to the Members. Member Flaherty requested that there be signage on Spruce Street to indicate how to access to the downtown businesses. Member Hardt indicated that he felt the aesthetic design of the streetscape is consistent with the overall plans for the Downtown Area. Member Collignon requested that staff investigate Northfield's Highway 3 reconstruction project with regard to financial assistance offered to affected businesses. Staff will look into this. . City Administrator Herlofsky indicated that there would be frequent meetings to keep downtown business owners up to date on what will be occurring during the reconstruction project. b.) 2006 Commercial Permit Chart Information was provided to the Members. Staff will provide the EDA Members with the current zoning map at the next meeting. c.) Commercial/Industrial Square Footage by Year; Commercial Base Fees by Year Updated charts were given to the Members. There was discussion regarding the new tenant in the Vinge Tile building, Streamliners, Inc. d.) Dakota County CDA Redevelopment Grant Program The Dakota County Community Development Agency has created a Redevelopment Grant Incentive Program. Upon EDA approval, staffwill apply for grant funds that will be used to finance the removal of hazardous materials from the Riste Building and for the building's subsequent demolition. Member Collignon asked if this and other incentive programs are available for developers. He feels that the City of Farmington could make this information available on their website. . Member Flaherty asked if the required matching of the funds received from the Grant (at a ratio of 2: 1) would come from ED A funds or City funds. . . . EDA Minutes November 13, 2006 Page 3 The Members approved of Staff proceeding with the application process. e.) Potential Code Improvements to Former Dueber's Property Mr. Paul Otten is requesting that the EDA authorize the use of $31 ,500 of CDBG funds to perform code improvements to the building space that was previously occupied by Dueber's. Member McKnight inquired as to what types of businesses are being considered as potential tenants for the space. Mr. Otten replied that he was considering all types of businesses for the space. The improvements would include updating the bathrooms and sprinkler system. Mr. Otten indicated that there would be significant cost to installation of the sprinkler system due to lack of adequate water supply to the building. He stated that because of the bidding requirements for projects implemented with CDBG funds, it may take him up to two months to begin construction. The space currently meets the code requirements for retail use only. Mr. Otten stated that there has been significant interest in the space and he feels that it will be leased in the near future. Staff indicated that there are specific requirements for use of CDBG funds and this project meets those requirements. The funds available were previously allocated to the Downtown Code Improvement Fund. Member Flaherty asked ifthe funds available have to be used before a specific date. Staff indicated that there was not an expiration date by which the funds must be used. Staff also indicated that the funds for this project would not draw from residential redevelopment funds. Member Flaherty also stated she would like to consider whether or not there could be any coordination with the City Hall project regarding the water supply extension to this site. The Members requested that further information is obtained pertaining to the specific requirements for use ofthese funds and the timeline for the project. Staff will provide further information and a copy ofthe CDBG application form at the November 27th EDA Meeting. 9. City Staff Reports/Discussion The November 2ih Special Meeting will be held in the Round Bank Community Room at 5:30 p.m. 10. Adjourn MOTION by Hardt, second by McKnight to adjourn at 8: 13 p.m. APIF, MOTION CARRIED. . . . EDA Minutes November 13, 2006 Page 4 Respectfully submitted, Lisa Dargis Administrative Support Technician The Farmington EDA'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. SUMMARY OF ECONOMIC DEVELOPMENT AUTHORITY November 13, 2006 - 7:00 p.m. City Council Chambers, City Hall . Members Todd Arey (Chair) Paul Hardt (Vice Chair) Yvonne Flaherty Erik Starkman Chad Collignon Christy Jo Fogarty City Council . David McKnight City Council City Staff Renresentatives Peter Herlofsky City Administrator Kevin Carroll Community Development Director Tina Hansmeier Economic Development Specialist 325 Oak Street Farmington, MN 55024 Phone: 651.463.7111 Internet: www.cLfarmington.mn.us . 1. Call Meeting to Order 1. Pledge of Allegiance 2. Approve Agenda 3. Citizens Comments 4. Consent Agenda a. Bills b. October 23, 2006 5. Public Hearings (None) 6. Unfinished Business a. Highway 50 Industrial/Commercial Corridor The map illustrating the EDA's input on zoning classifications along the Highway 50 corridor will be forwarded to the Planning department for consideration during the 2030 Comprehensive Plan update visioning sessions scheduled for January and February 2007. b. McVicker Lot - Heinen Addendum approved. (7-0 vote) c. Summary of Businesses-Closed or Relocated, 2003-2006 Information provided to EDA d. R & L Trucking Update Building permit issued 11/6/06. e. Proposed Sale of Industrial Park lot (Regan) EDA is in support of staff requesting the EDA's attorney to proceed with the preparation of a draft of a Contract for Private Development. 7. New Business a. Elm Street Reconstruction Project (ESRP) Update 2006 Information provided to EDA. EDA wants to make sure that appropriate signage is posted indicating the traffic route to the downtown business district. b. Commercial Permit Chart Information provided to EDA. C:\Documents and Settings\ldargis\Local SettingslTemporary Internet FilesOLKD3\I I 1306 EDA summary.doc . c. Commercial/Industrial Square Footage by Year; Commercial Base Fees by Year Information provided to EDA. d. Dakota County CDA Redevelopment Incentive Grant Program EDA is in support of having staff prepare and submit a grant application. e. Potential Code Improvements to [Former] Duebers Property The EDA has requested more information. This item will be brought back for consideration at the December EDA meeting. 8. Adjourn @ 8:13 PM . . C:\Documents and Settings\ldargis\Local Settings\Temporary Internet FilesOLKD3\111306 EDA summary.doc . . . INVOICE LIST FOR EDA MEETING NOVEMBER 13, 2006 AT 7:00 p.m. DATE I l DESCRIPTION 10/17/2006 EXCEL ENERGY-305 3RD ST 10/29/2006 MN ENERGY - 305 3RD ST 10/31/2006 CAMPBELL KNUTSON 10/31/2006 CAMPBELL KNUTSON 10/31/2006 FARMINGTON PRINTING I I $ $ $ $ $ Page 1 $ AMOUNT I 65.29 98.90 104.20 27.00 24.50 $ 319.89 I APPROV ALl Xcel Energy@ Xpy.f!sMy.r.t:NHijjp~M::::: ::::::~*~:Wi~MfflW.i.f::: :m::::::Am@!MW,tJjaf~Wa:m:m:m :::!::::::::::::~mgij!t.:F.ij#lM~!E::::::::; ...........,...................................... ......................p........................... 51 -4874008-3 1 1/1 412006 $1 .260. 1 6 Auto P ay 0 0 N at Th a nk You ! R etu rn . ~> Northern States Power Company Please Return This Portion With Your Payment P.O. BOX 9477 MPLS, MN 55484-9477 AV 01 033018 708838182 A**5DGT 1.1.1..1.1.11.....1.1.1..11..11..11.1...1.1..1'11.1.1.1...1.11 FARMINGTON CITY OF 325 OAK ST FARMINGTON MN 55024-1374 51111406n48740083n0000012601600000126016 Detach and Retain This Portion For Your Records Oct 17.2006 1 87004127 Previous Balance Total Amount of Payments Balance Forward +Current Charges Current Balance - - - - - - - - - $1,455.62 - - $1.455.62 CR - $0.00 - - $1.260.16 - $1.260.16 - - - Questions: Ca II Please Call: (800) 481-4700 Hearing Impaired: (800) 895-4949 Fax: (8001311-0050 Activity Summary Date Of Bill Number of Payments Received Statement Number or write to us at Northern States Power Company PO BOX 8 EAU'CLAIRE WI 54702-0008 amise.'SulTlma,ryi.:/ Premise NUll1ber. 303533111,; , 303977265:ii Premise Descriptor Current . ~ 000. Co t/-.;;2.::l- NEW LIQUOR STORE $1,194.87 $1,260.16 J',.. ", '., . J6~"3{- G c6 , ~ATE. '$:,., . '\; $ , 11{14/2006 () Xcel Energy. .;;t~~I'I:!~~lllll\.:::'\:,;jl!!~~~:lj~~~II~:::\ji:\\ 325 FARMINGTON MN 55024-1374 $1.260.16 Statement Date: 10/17/06 ~~~~~~~i~~:~~..._~n institution and Immediately credited. Statement # 87004127 See back of bill for more information. Page 1 of 3 Account #: 51-4874008-3 JflDSqgo \\ ~Q A WPS Resources Compan Helpful Information Customers may register inquiries or complaints by writing to P.O. Box 2176, Scottsbluff, NE 69363, or by calling Customer Service at 800-889-9508. If you smell natural gas, leave the premises immediately and call Minnesota Energy Resources at 800-889-4970. For more safety information, visit www.minnesotaeneravresources.com. or call 800-889-9508. To request a customer information booklet summarizing our service rules and regulations, emait minnesotaeneravresources@alldata.net or call 800-889-9508. Delinquent amounts in excess of $10 are subject to a late payment charge of 1.5% monthly (18% annually) or $1.00, whichever is greater. The Customer Charge covers part of the fixed costs of delivering your natural gas, regardless of your gas usage. PGA - Your bill may include an adjustment or rate change due to the cost of purchasing natural gas from suppliers. The charge will appear as PGA, for "purchased gas adjustment". PO BOX 455 ROSEMOUNT, MN 55068-0455 24 hour Customer Service call 24 hour Emergency Service call www.minnesotaenergyresources.com FGTN MUNICIPAL LIQUORS Account Number: Amount Now Due: Billing Date: Auto Bank Transfer Previous Account Balance Payments Received Previous Balance Due Fees/Adjustments Current Charges Gas Tax Total This Bill New Account Balance j 800-8S9-9508 800-889-4970 205-3'L'SA:- 4076048-0 $98.90 10/29/06 11/20/06 $15.82 15.82CR .00 .00 92.86 6.04 98.90 $98.90 $98.90 lP 12'"3:> $ See back for billing details. ... ........... _....... ......_ ..... .........._...... _._....... ..... 0.... ." _'. _..... ....... uo_.._. .._. ._. _... ._.. ...__....._.............................. ....... _..... ._...... ... .... ... -. -..- ...-............ '-._'" u.. ...- '-'" ........ ..--.... .-...... -.. _........--..-- -. .....-..... Detach and mall this portion with your payment. Bring entire bill if paying in person. Account Number 4076048-0 Automatic Bank Transfer I want to support the HeatShare program. which helps pay energy expenses for those In need. My, monthly gift will be: $ Other 0 $5 0 $10 0 $20 0000006 1'1 1'2 1 00001 10292006 2006102 UPS H" 1 PI S D ~""f'~ '._~ -= " .. . FGTN MUNICIPAL LIQUORS 325 OAK ST FARMINGTON. MN 55024-1374 1.1,1..1,1,11",1.1.111.'.1,,1111.11.1...1.1..11.1.1,1,1...1,11 . Place an 'X' in the box if D you included information on the back MINNESOTA ENERGY RESOURCES CORPORATION PO BOX 659795 SAN ANTONIO, TX 78265-9795 11,1,11.,11111,1,1111,1,1,1.1.,1...11,1.,.111.1.1.,,1,1,1.,1.1 00000407604809 00000000 000001036 ~~- Page: 2 October 31, 2006 Account # 1852G PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS 1852-024 RE: ASH STREET EASEMENTS SERVICES RENDERED TO DATE: 141.40 27.00 0.00 0.00 -141 .40 1852-030 RE: EDA/JOSEPH M. HEINEN (CONTRACT FOR PRIVATE DEVELOPMENT) SERVICES RENDERED TO DATE: 61.03 94.50 9.70 0.00-61.03 1852-032 RE: 210TH STREET EXTENSION - REGAN PROPERTY SERVICES RENDERED TO DATE: 0.00 0.00 11.90 0.00 0.00 1852-033 RE: ISO #192 (NEW SCHOOL) - PASS-THROUGH SERVICES RENDERED TO DATE: 2,250.00 112.50 0.00 0.00 -2,250.00 1852-999 RE: PROSECUTION MATTERS SERVICES RENDERED TO DATE: 5,106.95 5,848.00 75.02 0.00 -5,106.95 14,419.19 16,769.00 98.25 0.00 -14,419.19 Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. . BALANCE 4 IDS I L~03 $27.00 2000,~{D3 $104.20 L}1d:J,&4t0 $11.90 libel}; ~1Lt6 $112.50 J 0::0. (d-.j 02) $5,923.02 . $16,867.25 . City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 ;. , . , , Page: 1 October 31, 2006 Account # 1852-030G 7 RE: EDAlJOSEPH M. HEINEN (CONTRACT FOR PRIVATE DEVELOPMENT) SERVICES RENDERED TO DATE: HOURS 10105/2006 CJH Forward original Quit Claim Deed to Joseph Heinen; . forward original Contract for Private Development to Kevin Carroll. 0.60 54.00 10/24/2006 AMP E-mail from Title Company re: endorsement; telephone call from Kevin C. 0.30 40.50 - - AMOUNT DUE 0.90 94.50 10105/2006 Photocopy expense. 7.00 10105/2006 Postage expense. 2.70 - TOTAL DISBURSEMENTS 9.70 TOTAL CURRENT WORK 104.20 PREVIOUS BALANCE $61.03 11/01/2006 Payment - thank you -61.03 TOTAL AMOUNT DUE $104.20 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. ~_':3I - 001-.0?J \ ,\1P CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 SUMMARY STATEMENT PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS BALANCE 1852-000 RE: GENERAL LEGAL SERVICES (RETAINER) SERVICES RENDERED TO DATE: 3,967.79 5,602.50 0.00 0.00 1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER) SERVICES RENDERED TO DATE: 0.00 598.00 0.00 0.00 1852-002 RE: PASS THROUGH LEGAL SERVICES SERVICES RENDERED TO DATE: 967.50 4,117.50 0.00 0.00 1852-003 RE: FORFEITURES (NON-RETAINER) SERVICES RENDERED TO DATE: 333.10 112.50 0.00 0.00 1852-013 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: 1,462.00 27.00 0.00 0.00 1852-018 RE: WAUSAU POND EXPANSION SERVICES RENDERED TO DATE: 54.00 0.00 0.00 0.00 1852-019 RE: ASH STREET POND PROJECT SERVICES RENDERED TO DATE: 75.42 229.50 1.63 0.00 . 8t!Iv/OY Page: 1 October 31, 2006 Account # 1852G \OCb.<J...!02:> Iq~S.OD IOIO,(d103 i~7.2"1 DO 102 i I fc.'103 6l, o~) \630,10'10.5 llttlPO.6V /060, l,L{o3 .2Jv' 00 iOiO.l.:-'4:CC> 0l0.SO /oqs dtJ'102:> lt7 ,50 -3,967.79 $5,602.50 . 41~rGf/O?J- 5:;;.9:>.. 109:; .wl{Cf3 &2,~ 0.00 $59~0~) 4; j 5 .L~\.foJ ';-t 0.)0,..: CD 'iCjOCP ,~-J..j D3 t \ Z<:7' 00 q. tI I I /:;40?::> I ( 2 I 50 -967.50 $4,117.50 t..J./l3dC''io~ ~,~~. LfCt:DO,WO..? Il ? ~'ti03 \CO I f.t? '1 -333.10 $112.50 -1,462.00 -54.00 $0.00 -75.42 Lf\06 I (j..-( () ~ . $231.13 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax I.D. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 Page: 1 October 31, 2006 Account# 1852-013G 73 RE: EDA GENERAL MATTERS (NON-RETAINER) SE,RVICES RENDERED TO DATE: 10/06/2006 AMP HOURS Telephone call from Kevin; e-mail to Kevin. AMOUNT DUE 0.20 0.20 27.00 27.00 . 27.00 TOTAL CURRENT WORK $1,462.00 PREVIOUS BALANCE -1,462.00 11/01/2006 Payment - thank you $27.00 TOTAL AMOUNT DUE . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. _.~.:,,7~:. ._ ....t-r 1" ,.,:,. ~!~';.~.'.., t. .- '.:. 'I ~ 306 Fourth Street Farmington, MN 55024 too 0 '\~. . . ting,Im;. (651) 463-8444 01 0(, . .. FAX (651) 463-7725. .i:, .~.JlI3G . _ _~.. AOCOUn.tNo,: 03~. '. .... . ~ .",'.J'Y-...... , ; ',,' Phone Number; .\:'\ ... Date Completed: Purchase Order NUl1lber: I,NVOICE # 1-19? / 0 -3/ .{)0 . f QUANTITY DESCRIPTION PRICE $ SHIPPING SUBTOTAL TAX TOTAL Please pay from this invoice. A 1.5% interest charge will be added to invoices over 30 days. (P 'inimum charge) . . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING October 23, 2006 1. Call Meeting to Order The meeting was called to order by Chairperson Arey at 7:00 p.m. Members Present: Arey, Collignon, Fogarty, Hardt, McKnight, Flaherty, Starkman Members Absent: None Also Present: Community Development Director Kevin Carroll; Economic Development Specialist Tina Hansmeier, City Administrator Peter Herlofsky, City Council Member David Pritzlaff, Michele Leonard, Nick Schultz 2. Pledge of Allegiance 3. Approve Agenda MOTION by Hardt, second by Flaherty, to approve the agenda. APIF, MOTION CARRIED. 4. Citizen's Comments None 5. Consent Agenda MOTION by Hardt, second by McKnight, to approve the Consent agenda as follows: a.) Bills b.) September 25, 2006 Minutes c.) October 9, 2006 Minutes Voted for: Hardt, Flaherty, Arey, Collignon, Fogarty, McKnight, Abstained: Starkman. MOTION CARRIED 6. Public Hearings None 7. Unfinished Business a.) Highway 50 Commercial/Industrial Corridor Three possible plans for Commercial and Industrial development along the Highway 50 corridor were presented. Staff indicated that they would like the EDA Members to consider the three plans and then give feedback as to which plan they feel Staff should focus on. Members McKnight, Fogarty, Collignon and Hardt felt that option "B" was the best choice. Members Flaherty and Starkman liked both "B" & "C". Chairperson Arey did not really prefer any of the options. Most of the Members felt that there needed to be an appropriate transition on the border with Lakeville. Member Fogarty suggested that the group may need to sit down and Master Plan this area similar to what was done with the Spruce Street EDA Minutes October 23,2006 Page 2 Corridor. Community Development Director Carroll suggested that perhaps a revised map showing other elements such as natural areas and taking the Members comments into consideration could be prepared for the next meeting. The Members were all in favor of this idea. Member Starkman stated that input from other parties, such as business owners and the EGC, will need to be incorporated into the planning process at some point. b.) Mission Statement MOTION by Fogarty, second by Starkman to adopt the following Mission Statement: "The Farmington EDA's mission is to improve the economic vitality of the City of Farmington and to enhance the overall quality oflife by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment." APIF, MOTION CARRIED c.) McVicker Lot - Heinen Mr. Heinen's architect has made some changes to the plans for the proposed building. The changes include a doorway to be added on the main level, and changes to the upper level floor plan consisting of adding a landing halfway up the stairway and adding a doorway to enter the building currently occupied by Gossips. The owners of both buildings will take responsibility for working out the details of the shared stairway. Mr. Heinen also submitted a letter that included a revised list of "deadline" dates for the project. He would like his construction to take place concurrently with the road work that is to be done on Elm Street. The Members were in favor of having the City Attorney prepare an addendum to the original contract with the revised dates granting Mr. Heinen more time. Mr. Nick Schultz asked ifhaving the building under construction at the same time as the road work would put a further burden on other downtown business. Community Development Director Carroll stated that he would discuss this issue with Mr. Heinen to determine what steps could be taken to minimize the impact to other businesses. There was also discussion about the future plans for the old Parks & Recreation building located behind Subway which is owned by the EDA. There may be potential additional storage and parking space options at that location. The Members had no problem with Mr. Heinen erecting a sign on the McVicker lot for advertising purposes. d.) JIT Powder Coating Staff wanted to let the EDA Members know that the nT expansion is now completed. There is still some construction debris on site to be addressed. Staff will continue to contact Mr. Milner about cleaning up the area. . . . . . . EDA Minutes October 23, 2006 Page 3 8. New Business a.) Summary of New Businesses Information was submitted for the Members to review. The information was compiled in response to a request by a City Council Member, but Staff felt that because the information pertained to Economic Development the EDA would also be interested. b.) Calendar of Upcoming Meetings & Events A calendar for the remainder of the year showing holidays and EDA and City Council Meetings was submitted. The Members requested that the December EDA Meeting be moved to December 19, 2006. c.) List of Interviewees The combined list of names was provided. The people on the listed will be contacted to determine if they would like to be interviewed. 9. City Staff Reports/Discussion The new McDonald's is now open. Several of the Members attended the opening. 10. Adjourn MOTION by Hardt, second by Flaherty to adjourn at 8:35 p.m. APIF, MOTION CARRIED. 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Ie ~ f- I-- z.~ :s I-- !:: .&..8 ....c:: ro CIl U !::~ ~ '00 o CIl ~ ~ Ql ro U ~ ~ bO -g Q)!:: Ol ~'2 D<( ~ 0 N t . . . FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT FARMINGTON, MINNESOTA THIS FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT, made on or as of the _day of ,2006, 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 JOSEPH M. HEINEN (the "Developer"). WITNESSETH: WHEREAS, the EDA and the Developer have entered into a Contract for Private Development dated July 24. 2006 (the "Contract") for the sale and development of the ,property described in Exhibit "A" (the "Property"); WHEREAS, the Developer has requested that the EDA extend certain timelines under the Agreement as a result of certain delays experienced by the Developer and the timing of the City's Elm Street Reconstruction Project which may impact the Property; NOW, THEREFORE, in consideration ofthe premises and the mutual obligations ofthe parties hereto, the EDA and Developer amend the Contract as follows: 1. AMENDMENT TO SECTION 3.4(a). Section 3.4(a) ofthe Contract is hereby amended to read as follows: (a) Within ten (10) days after the satisfaction and/or waiver of all ofthe conditions contained in Section 3.2 of this Agreement, and in any event no later than May 24,2007 ("Closing Date") provided all conditions precedent for the EDA and Developer to close have either been met or waived, and the Developer pays the EDA the Purchase Price, the EDA shall convey the Property 128324 -' to the Developer through the execution and delivery ofthe Deed with a restrictive covenant . prohibiting sale of any portion of the Property separate and apart from any other portion of the Property and all other documents reasonably required by Developer and the Title Company. This closing shall be at a location designated by the EDA. 2. AMENDMENT TO SECTION 4.2(a). Section 4.2(a) is hereby amended to read as follows: (a) On or before April 30, 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 Improvements 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 ofthis 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 Improvements; (iv) the Construction Plans do not provide for expenditures in excess of the funds which will be available to the Developer for the construction ofthe Minimum Improvements; and (v) no Event of Default has occurred and is continuing. 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 Improvements. 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 of 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. . 3. AMENDMENT TO SECTION 4.3. Section 4.3 is hereby amended to read as follows Section 4.3. Construction of Minimum Improvements. The Developer shall commence construction of the Minimum Improvements on or before May 30, 2007. Subject to Unavoidable Delays, the Developer shall substantially complete construction of the Minimum Improvements, except for landscaping; exterior matters such as final lift of asphalt, striping, etc.; and minor "punch list items", on or before November 30,2007. 4. MISCELLANEOUS. Except as specifically provided herein, the Contract remains unchanged and in full force and effect. Capitalized terms not otherwise defined herein shall have . 2 . the meanings ascribed to them in the Contract. 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: Kevin Carroll Its Executive Director . JOSEPH M. HEINEN STATE OF MINNESOTA ) )ss. ) COUNTY OF DAKOTA The foregoing instrument was acknowledged before me this _ day of , 2006, by and Kevin Carroll, 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 . 3 STATEOFMINNESOTA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 2006, by Joseph M. Heinen. DRAFTED BY: Andrea McDowell Poehler CAMPBELL KNUTSON, P.A. 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 Telephone: (651) 452-5000 Notary Public 4 \ . . . . . . EXHIBIT" A" LEGAL DESCRIPTION OF THE PROPERTY Parcell: That part of Lots 5 and 6, Block 23, ToP.hmt6fiffin~S,(ordWTi~~~1j)ak}JCl<(Z-- ~.>>^'~"l>>% County, Minnesota distant 20 feet North of the Southwest corner of said Lot 6; thence East 110 feet; thence South 30 feet; thence West 110 feet; thence North 30 feet to the point of beginning. PID # 14-77000-061-23 AND Parcel 2: All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at the Northwest corner of said Lot 7; thence South, along the West line of said Lot 7, 30 feet; thence East 110 feet; thence North 30 feet; thence West 110 feet to the point of beginning; together with that part of the vacated alley adjacent thereto described as follows: Beginning at the Northwest corner of said Lot 7; thence East 110 feet; thence North 10 feet; thence West 110 feet; thence South 10 feet to the point of beginning. PIN # 14-77000-086-23 . . . BUSINESSES THAT HAVE CLOSED OR RELOCATED BUSINESS NAME YEAR BACKGROUND INFORMATION APRILLE SHOWER'S TEA ROOM 2005 Relocated to Stillwater; in part due to landlord - tenant issues. ASHER CHIROPRACTIC 2004 Death of business owner. BASS FLEXIBLE PACKAGING Relocated to Lakeville; needed more space but could not find 2006 land or a building of the right size and/or at an acceptable price. BLAHA'S COLLISION CENTER Owner retired from auto business and sold building to HRA for 2004 future City Hall site. BP GAS STATION CHiS!hwav 3) 2006 Closed, reason unknown. Former Tom Thumb site. BUDGET MART (Pilot Knob Road) 2005 Building demolished; land sold for new Kwik Trip. Reportedly went out of business. Current location of "Cabins to Country Club;" property was annexed from Castle Rock CANNON LOG HOMES 2006 Township in 2005 Parent corporation closed Farmington location due to residential DUEBERS and commercial growth; corporation prefers to be in smaller, less 2006 competitive markets. GREAT PERFORMANCES VIDEO & TANNING (Pilot Knob Road) 2005 Building demolished; land sold for new Kwik Trip. HEART 'N HOME Uwners retired from gin snop/craft bUSiness. Current site or 2004 Heikkila Studios. LADIES WORKOUT EXPRESS Owner went bankrupt. Landlord believes that factors included 2006 limited buisness hours and low quality exercise equipment. LISA MARIE'S BOUTIQUE 2006 Closed, reportedly due to health of proprietor. MASTERTECH PLASTICS 2006 Owner is in process of selling building. MILLIE'S ANTIQUES Owner of business and building removed inventory to create 2006 space for prospective new tenant. NEXTEL PHONE (Pilot Knob Road) Corporate decision to close, based on business volume. Current 2004 site of Cahill Salon. Landlord believes that local market was saturated (3 framing OAK STREET GALLERY shops in close proximity at the time). Current location of Memory 2005 Creek (scrap book store). Business sold to competitor who had existing location in PRECISION VALVE Minneapolis; new owner then consolidated operations in 2004 Minnneapolis. REACH FOR THE STARS SALON 2005 Closed, reason unknown; current location of DBS Hair Design. THOROUGHBRED CARPETS Consolidated Farmington inventory with company's main location 2006 in Savage. WHY USA REALTY/ TRI-STATE Closed or relocated, reportedly due, in part, to difficulty meeting MORTGAGE 2005 financial terms of lease. Current site of Fan Club Athletics. WIDE OPEN THROTTLE Landlord reportedly did not renew tenant's lease. Current site of 2005 ISO 192's classrooms. . . . 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: ED A-Owned Lot in Industrial Park (Regan Proposal) DATE: November 13,2006 At the EDA meeting on August 28, 2006, the EDA members discussed the possibility of selling the last remaining ED A-owned lot in the Farmington Industrial Park to Mr. Patrick Regan. The EDA members indicated general support for the proposed transaction, contingent upon (a) the negotiation of an acceptable price and (b) Mr. Regan's willingness to agree to certain conditions or provisions. With regard to (a) above, Mr. Regan has advised the City Attorney that the staff proposal regarding a sale price ($1.50 per square foot, or $225,188) is acceptable. With regard to (b) above, Mr. Regan had previously indicated that the following conditions were acceptable to him: 1. The use of any building that he moves onto the site or constructs on the site, and the use of the land itself, would be consistent with the existing zoning. His still intends to use the property for bus garage storage and/or other activities related to the nearby Marschall Lines operations. Any building moved onto the site or constructed on the site would comply with the applicable design standards. Mr. Regan plans to construct a foundation and some short masonry walls, place the existing building's framework on top of these new walls (in part, to elevate the ceiling and door heights to create more interior space), and then replace the existing exterior wall surfaces with materials allowed under the design standards (Hardiplank, presumably). The requirements of the City Code and/or the design standards regarding landscaping and screening would be followed. Mr. Regan has indicated an intention to place a fence (or a combination offencing and vegetative screening) along the south side of the property. Mr. Regan would pay the same type(s) of City developmentfees (surface water managementfees, etc.) that have been paid by other recent Industrial Park developers (Karrmann, Aerospace, Vinge). . Mr. Regan would agree that by a specified date acceptable to the ED A, he would improve the property by moving a building onto it or by constructing a building on it, subject to the building requirements identified above. 2. 3. 4. 5. Unless otherwise directed by the ED A, City staff will request that the EDA's attorney proceed with preparation of a draft of a Contract for Private Development, which the EDA can review at its meeting in December. cc: Mr. Patrick Regan . . Feasibility Report for Elm Street (CSAH 50) Reconstruction Farmington, Minnesota November 2006 File No. 141-06266 . 16-5 . ~11. Bonestroo ,.. JIUII. Rosene ., .. O'Anderlif< & - 1 \J" ~ssociates .. Engineers & Architects .. 2335 West Highway36 - S't. Palil,MN S5lB Office; 651-/B6-4600 ~ Fax: 651-636-1311 . www.b9nestroo.corh .{. November 1,2006. Honorable.1v1ayor W;1d.Gity COUncil , . City ofFariningtb.li.," c.... . . 3,25 Oak.$ti~~t: '. :.-:-::. . ........., ,.. ',F~~Qn,..MN:~S5.024'::, '. .' . ., .' ..... Re:. ." ..".. . '. .' - EIril.Stre.et R6co~cti()ii.' " . . '. . '.. our Rij~No:~~l,:-~~6,~:>'-. . . _,,, ," . . '. ~ -:".' . . . . . Ji ' . . . . _. _, . . . . ~, ,;' .,rie_~'lvh1yo~ml(l.~~Cil::.,..:._..-..." >'..;',: '. c." _ ~'.;. '_': '-" _...::....,..".. .": .. . . . ,. .En~los~ . (or YD.iJr ~view is. t:hci:~e_aSibiliiy Report for !he 'Elfu stieet ReconStnicuc)Jl p~ject. . The. , '. - .......:......:...:~~s.;~~~~~~~e~,p;:~~,ct~:~~tio~~............. .' . ., " ." . This r~pol( 4~scribes ~e inipipveriieritS;.~epesS~ to'iqlprdve $e .toidS,.samtary ~ewer; water.. ,-:'. ....;.~~d~~~thin~~~~This~~$~;::~=~~..."\.(. . . f': ~cp.ed,u1e'a,n4.cost.es~esfor.the.J?rQPo~e4:1mP!Qvel1lep,ts~e presel1t~~t1?-~report.-.':.. .. .'.- .....:- . . .., '., :'. ..-' :W~i~~ritdt~ ;pl~~~;to. in~~f~~.the)'ci~'tQ~cit ~d.~Jri~-~tcuSs.th~>~ont~h~S ~; tl1e~~k'd . · '. '.,'., '.,>.'.'~f~y'~tibl~~~r.~dnve.Q1~Ai-~~~.:,;:,::-:,'~".:..'_~:_,,-;..;>~:,:.. :'~.:. r.:.... . :..:. . .':.",:;--.' . ..:>. '.' ',';. _.' ... .: . ," . . . ...:.,; '.RespeCifuUy'subritte~.', . '. '., -. . '.~.'.: . '. ". ': '.' . -. '. '''-. . . ,. . : BONESTROO,JI08ENl!1,ANnERLIK&.ASsbciAtEs;INC. ". ..tJA<.....:... .:...:Y2....-<:,..--~~;t< :. ....... .~ . . , . ':' : .'., . - f' - I . .. . '. . ',.".- -. .."..: .., -', .... . . " > ,'... ,~ " . ,< '"',' . . . .;. . \ " . .,....., - . ", ," i. ,-,,' . . . . , .' . ];:iilq}.f.eters,))~R.i: . Project Maria~er . " '., .< . , : " -. -'.-.', ,,' " . ,r,'" ':','1.. .... : .,.... ~. . -: ' . ~ . I h~n?by. c~rtify that this Report' ~~ p~pafed l?y me. or und~f . . ' . my ~irect.. Sllpervi~ion and that 'L~. a duly Register~.- . Profess;onal' Engineer. under', the, Jaws of. . the · . state... of . M8!nOsom. {!){'J2~ . : . Erik G. Peters, P .E:. . .. . . . . . Date: November]. 2006 . . Reg. No.:' 42403 I. . . 16-:-6 "'" St: paiJl; St. CI~Qd. Rochester. MN.-. MilWa!Jkee,\~11i Chicago, J.t : . ~'. .' . ., ..' . . -", . . . .," ... Affirmatlve.Ac~IOn/EqUal OpportunIty Employer andEmpioy~e Own,ed ,.. . Table of Contents Page No. Letter of Transmittal 1 Table of Contents 2 Introduction 3 Discussion 3 Cost Estimates 8 Project Financing 9 Conclusions and Recommendations 10 Figures Figure 1 - Location Plan . Figure 2 - Street Improvements Figure 3 - Streetscape Plan Figure 4 - Streetscape Perspective View Figure 5 - Utility Improvements Appendix Quantity, Cost & Funding Allocation Estimate . Elm Street Reconstruction 216-7 Introduction i. The City Council has requested this report to determine the feasibility of improving the streets and utilities in the Elm Street area. Figure 1 depicts the general project location. The proposed improvements include: I) Reconstruction of City and County streets to current engineering standards 2) Replacement of aged clay sanitary sewer that is generally in poor condition. 3) Replacement of aged and undersized water main. 4) Construction of storm drainage system to convey the drainage off the streets and into pipe for the protection of the road and improved performance/safety in winter conditions. 5) Streetscape improvements in the Downtown Business Area Discussion Background Elm Street (CSAH 50) is in a deteriorated condition and every year requires extensive patching. The sanitary sewer improvements are necessary in order to bring the sewer system up to City and I. :MN Department of Health standards and reduce inflow and infiltration into the Met Council's interceptor system. The storm water improvements are necessary to remove drainage off the City's roads and provide capacity for the entire drainage area. The water main improvements are necessary to bring the water system up to City standards for supply, fire flow and hydrant spacmg. Street Innprovennents In general, the proposed street improvements will reconstruct the streets to their existing widths. The County is taking the lead in the design of general street improvements. Changes to the street layout design are listed below: 1. Sidewalk will be added along the south side of Elm Street between 6th Streets and 8th Streets (see Figure 2). The existing sidewalks will be replaced. Once the project is complete, sidewalk will run the full length of Elm Street on both sides of the road. 2. The connection of 8th Street frontage road to Elm Street will be eliminated to promote traffic safety and improve traffic flow. 3. A center two way left turn lane will be provided along the entire project length. 4. The existing street lights will be replaced and more will be added to conform to the City's (. current design standards. 3 1 6 - 8 Elm Street Reconstruction . Streetscape Improvements . . Transition from Residential to Urban Character The proposed streetscape transitions from simpler treatments at each end of the project to more complex urban treatments in the business area. The residential area (side streets, Elm Street west of 1st & Elm Street east of 4th Street) will have the same boulevards as today with the existing 4' sidewalk replaced with a 5' wide sidewalk, decorative lights added and the existing boulevard trees. Between 1st & 2nd Streets 6' sidewalks will be incorporated as the prelude to the urban treatments at the grand entrance to the core downtown between 2nd & 4th Streets (see Figure 3). The urban treatments include parking buffers, benches, trash receptacles, decorative lights, banner poles and landscaping etc. Celebrate the Entrance to the City A primary obj ective of the streetscape treatment proposed. for the intersection of Elm Street and 3rd Street is to celebrate the entrance to the downtown. This is accomplished by continuing the same palette of materials and streetscape elements along Elm Street as were utilized along 3rd street. Banner poles are proposed on both sides of Elm Street near the 3rd Street intersection to provide a visual cue to motorists that they are entering a special place. Parking Lot Buffers Another primary objective is to minimize the negative impression created by the parking lots fronting the Elm Street gateway corridor. The treatment of these buffers varies with the site specific conditions. Where space allows, trees with a perennial groundcover are proposed, such as along Dakota Motor Co. and Kwik Trip. Where space is limited, stone, steel or precast concrete bollards are proposed, such as along the Subway store (see Figure 4). Preserve Existing Trees The plan also proposes to maintain the existing trees along Elm Street wherever possible. The two existing Honeylocust trees in front of the Subway store are elevated above the walk. We are proposing to introduce a decorative curb or seat wall around the trees to protect the rooting zone and to define an inviting seating area. All the trees within the corridor could benefit from being professionally pruned. Elm Street Reconstruction 416-9 Sanitary Sewer (. The proposed sanitary sewer improvements are shown on Figure 5. The sanitary sewer improvements will accomplish the following goals: 1. Reduce the amount of groundwater inflow into the sewer system due to removal and replacement of leaking, broken and cracked pipes. 2. Flow conditions in the pipe will improve with the pipe replacement by eliminating pipe sags and. improving flow velocity. 3. Property owners will be able to improve their private sewer services (if desired) due to the greater sewer depths of the new system. The greater depth will improve flow through the service system and allow for re-plumbing of basements to allow sewer services to be installed below basement floors. 4. Trunk sanitary sewer improvements will be made to 5th Street to provide the necessary sewer capacity per the City's Comprehensive Sanitary Sewer Plan (CSSP) and provide greater depth to allow for similar future sewer improvements as discussed above for service areas south of Elm Street. Water Main I. The proposed water main improvements are shown on Figure 5. The existing lateral water main in the project area varies from 4-inch to 6-inch pipe of varying material, mostly cast iron pipe (CIP) or asbestos cement pipe (ACP). The existing system is very brittle and will need to be replaced since it will be undermined with the sanitary sewer construction. The water main improvements will accomplish the following goals: 1. Replace the lateral water main with larger pipe meeting City standards (8-inch ductile iron pipe (DIP)). 2. Hydrant spacing will be reduced to meet City standards and better facilitate their use by the fire department. 3. Removal of existing asbestos cement pipe where found on the project site. 4. Replacing a section of 12" CIP trunk water main along 8th Street that is 35 years old with DIP in conjunction with installing a large trunk storm pipe parallel to this water main. 5. Add water main down 4th Street south of Elm Street to provide a more direct water source for businesses and homes along 4th Street. (. 1 6 -1 0 Elm Street Reconstruction 5 . Storm Drainage Improvements . . The proposed storm drainage improvements will, for the most part, be new additions to the project as very little storm pipe and catch basins within the neighborhood exists. The proposed storm sewer improvements are shown on Figure 5. It is anticipated that the storm drainage improvements will accomplish the following goals: 1. Reduce the amount of drainage conveyed by/on City and County streets. 2. Increase the lifespan of the new road surfaces. 3. Improve safety for pedestrian and vehicular traffic, particularly during snow melt freeze/thaw conditions. 4. Reduce the sediment delivered directly to the Vermillion River through the installation of sump catch basins. These sump basins will need to be regularly cleaned out to maintain their effectiveness. 5. Reduce the amount of overland street flow to Elm Street and TH 3 during storm events. Drainage west of the railroad will be routed to the existing 66-inch storm pipe that runs along the tracks and drains to the Vermillion River. Drainage between the railroad and 5th Street will be directed to the 60-inch trunk storm sewer along 4th Street. The 4th Street trunk storm sewer will be extended south from Main Street as part of a planned improvement in the City's 1997 Surface Water Management Plan (SWMP). Drainage between 5th Street and TH 3 will be directed to a 48-inch trunk storm sewer that will be extended up to Elm Street along 8th Street from TH 3 & Main Street. Runoff entering the TH 3 drainage system is routed by pipe to the Prairie Waterway and a regional pond adjacent to the former Wausau property. This regional pond was expanded with the Main Street Area - Phase 2 project (constructed in 2004) to provide flood control and water quality protection for drainage from TH 3. Elm Street Reconstruction 1'6-11 Easements and Permits . 1. A permit from the MN Department of Health will be required for water mam construction. 2. A MN Pollution Control Agency (MPCA) permit may be required for replacing the existing sanitary sewer pipes. 3. An NPDES construction permit from the MPCA will be required for the project. 4. A Minnesota Department of Natural Resources (MDNR) permit for water appropriation associated with dewatering necessary to install utilities will be required. 5. A permit for Canadian Pacific Railway will be required for construction within and under their right of way. 6. The Minnesota Department of Transportation (MnDOT) will require a permit(s) for construction work within their right of way along TH 3 & 8th Street. 7. Because there are seven (7) known pollution sites on record with the MPCA in the vicinity of this project, a special NPDES/State Disposal System (SDS) permit and monitoring for potential groundwater pollutants will be necessary, similar to the Main Street and Ash Street projects. Should pollutant levels rise above permitted levels, then a;;. special, mobile treatment system will need to be brought onto the project site. 8. No easements needs are anticipated at this time. It is City practice to not obtain temporary easements where work is required outside the City and County owned right of way to replace existing utilities and services directly benefiting the affected property owner. I. \ 7 1 6 - J 2 Elm Street Reconstruction . Cost Estimates . . The project costs are presented below. An itemized quantity, cost and funding allocation estimate is provided in the appendix. The cost estimate is based on estimated 2007 construction costs. The cost estimate for the street improvements was developed by the County. County engineering, legal and administration costs for the roadway improvements are borne by the County and not included in the project costs below. The cost estimate for the local streets, utilities and streetscape improvements includes 10% for contingencies and 27% for engineering, legal and administration. Estimated Project Costs Elm Street (CSAH 50) Improvements Total Estimated Project Costs ~!:l 50 (Elm Streett Roadway Improvel1)ents - --- - $1,960,000 CSAH 50 (Elm Street) prainaQe Improvements $1,014,000 S_SAH 50 (Elm Street) Streetsca2e Improvement~~_~___________~____ $41bQQQ ~I RoadJmprovements ------------- $575,000 ~ani!ary Sewer Im~rovements ----- $1,144,000 Water Main Improvements $804,000 Storm Water ImprC?vements $165,000 - - Total Cost $6,074,000 The estimated project cost does not include costs for easement or right-of-way acquisition or groundwater pollution mitigation. Should dewatering activities encounter groundwater pollution of sufficient concentration warranting treatment prior to discharge, additional costs will occur (potentially $100,000+/- but unknown) and there will possibly be several weeks ofproject delays. Elm Street Reconstruction ~6-13 Project Financing (. Elm Street (CSAH 50) is a former State Highway turned over to the County by the Minnesota Dept of Transportation (MnDOT). As part of the ownership transfer, the road (street) improvements will be largely funded by State turnback construction funds. Storm sewer improvements on Elm Street and trunk storm sewer improvements to convey drainage away from Elm Street will also be partially eligible for turnback funding. The City will be largely responsible for the funding of sanitary sewer, water main and storm sewer improvements on the local side streets as well as the local roads themselves. Streetscape, lighting and other aesthetic improvements will also be funded largely by the City. The County will participate in the costs for aesthetic improvements up to 1.5% of the Elm Street construction costs only. The City's funding policy for project costs includes the following provisions: 1. The City pays for all trunk improvements out of their trunk utility funds 2. Assessment of benefits to surrounding property owners subject to Minnesota Statute 429 3. Bonding for the remaining funding portion paid for out of the general tax levy, utility funds and/or Municipal State Aid Funds. Regarding assessments, Statute 429 stipulates that the City cannot assess a property more than the benefit the property receives from the improvements. Therefore, it is the City's policy that a .. benefit appraisal be obtained to determine the benefit to the properties in the project area. If the benefit appraisal for the properties in the project area indicates that the benefit to the properties is less than the calculated assessment amounts, the City's policy is to reduce assessments to match the benefit. On the table below is summarized the proposed cost allocation based on the cost estimate presented in the preceding section. Funding Source Estimated Fundine: Amount Minnesota Turnback Fund - Roadway $1,940,000 Minnesota Turnback Fund - Drainage $583,000 Dakota County (State Aid) - Roadway $11,000 Dakota County Streetscape Cost Share $29,000 City of Farmington (State Aid) - Roadway $9,000 City of Farmington - (levy, assessments, utility $3,502,000 funds) Total Funding $6,074,000 (e 9 1 6 -1 4 Elm Street Reconstruction . Conclusions and Recommendations . . The proposed improvements in this report are feasible and cost-effective as they relate to general engineering principles and construction procedures. The feasibility of this project as a whole is subject to the fmancial review. The proposed improvements are necessary to improve public infrastructure to City and County standards. Based on information contained in this report, it is recommended that: 1. This report be adopted as the guide for the reconstruction of the streets and described utilities; 2. The City and County conduct a legal and fiscal review of the proposed project; 3. The Elm Street area be reconstructed as outlined in this report; 4. The following tentative schedule be implemented for the project: Elm Street (CSAH 50) Reconstruction Proposed Project Schedule: The project is proposed to be constructed in 2007. \ /J _.\\ "'S(I"V ~ November 6, 2006 November, 2006 December 4, 2006 January, 2007 March 2, 2007 March 28, 2007 Ma , 2007 November, 2007 Jul , 2008 Due to the size and complexity of the project, it is expected that multiple construction crews will be working along the project length throughout the construction period. In order to fInish the project as quickly as possible and allow some contingency for poor weather and unexpected project delays, it is recommended that the Elm Street be shut down to through traffic for most of the construction period in 2007. This will inconvenience many businesses. To minimize the inconvenience, traffic crossing Elm Street will need to be maintained. 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Q) Vl Ul Q)~-g ::l ro ::l C"OUl ~ Q) .!:Q Q)t5- ..... ~ g go_ U ::l .....Ul'O ~Q)"O .~ 0) Q) e ro .~ Q....cE ~~.o .- ::l ::l O(f)(f) co o -- CO o -- ...... ...... "0 Q) Ul .:; Q) 0::: . . . 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: Dakota County CDA Redevelopment Incentive Grant Program DATE: November 13,2006 Earlier this year, the Board of Commissioners of the Dakota County Community Redevelopment Agency [CDA] approved funding for the creation ofa "Redevelopment Incentive Grant Program." A copy of the CDA's Requestfor Proposals Guide has been attached for reference. Unless otherwise directed by the CDA, City staff members intend to prepare an application for a grant that would be used to finance the cost of (a) removing hazardous materials from the Riste Building, and (b) demolishing the building. No other source of funding for those activities currently exists. The objective is to clear the site in order to make it more attractive to prospective developers by reducing their "up-front" costs and liabilities. The application deadline is December 1, 2006. The completed application package must include a City Council resolution in support of the grant application. Sufficient time remains to get this topic on the agenda for the next City Council meeting on November 20. . CD~ Dakota County Community Development Agency . . . . . . . . . . . . . . . . . . . . . . Redevelopment Incentive Grant Program Request for Proposals Guide and Application Program Information: The Redevelopment Incentive Grant program was created and funded by the Dakota County Community Development Agency (CDA) as a pilot program during its fiscal year ending June 30, 2007. The program will have two primary purposes that will each enable Dakota County to improve the tax base and quality oflife In our area: . 1. Assist cities with redevelopment goals. Blighted and under-utilized areas do not maximize their potential value in terms of either economic or livability of our area. Also, they often require additional service costs. The responsibility for creating redevelopment activities rests primarily on the shoulders of cities. Although Dakota County cities haven proactive in promoting redevelopment they lack sufficient resources to enable this to fully occur. 2. Promote the development of affordable workforce and supportive housing. While the need for affordable housing continues to grow, the opportunities for development rehabilitation are rare due to the availability of properly zoned land and the cost of land. Funding Available: There is $1,000,000 available for grants provided under the Redevelopment Incentive Grant program during this funding round. Funding for the program will be reevaluated by the CDA Board of Commissioners in June 2007. The CDA will reserve ten percent (10%) of $100,000 for Redevelopment Planning Grants. The maximum Redevelopment Planning Grant will be $15,000. The remaining funds will be used for Redevelopment Incentive Grants. The maximum Redevelopment Incentive Grant will be $250,000. Eligible Applicants: Eligible applicants for this program are cities in Dakota County. Only one application per city, for each grant type, will be accepted. . Application Instructions: It is the applicant's responsibility to be aware of the submission requirements needed to prepare a complete application in accordance with this guide. The application consists of the Redevelopment Incentive Grant program application form including all requested attachments. This application form is also available on the Dakota County website: www.dakotacda.org. 1 The applicant shall submit an executed original application and two (2) photocopies of the application. The application must be received no later than 4:00 p.m. on Friday, December I, 2006 at the Dakota County CDA office, Attn: Melissa Carnicelli, Project Manager, 1228 Town Centre Drive, Eagan, Minnesota 55123. . Applications determined by the CDA to be incomplete or not legible will not be accepted and will be returned to the applicant. No applications, attachments or documentation will be accepted after the application due date unless requested by the CDA. Applications will not be accepted by facsimile. The CDA retains the right to reject in whole or in part any application for any reason. Contact Melissa Carnicelli, (651) 675-4467 or mcarnicelli@dakotacda.state.mn.us, if you require assistance with submitting your application. REDEVELOPMENT PLANNING GRANTS The Redevelopment Planning Grant funding would be restricted to activities directly related to a redevelopment project (e.g., market analysis, concept development, site design, zoning studies, engineering studies, and environmental studies). The application must meet the following threshold criteria to be scored: . Application must be approved by the respective city council. . There must be a minimum leverage rate of 1 to 1 ($1 of other funds for every $1 of Redevelopment Planning Grant). . The city must be supportive of affordable housing and the CDA's mission (as provided in the sample resolution). . Use the Redevelopment Planning Grant Application. REDEVELOPMENT INCENTIVE GRANTS Eligible projects include redevelopment which will improve the economic use and value ofthe property and will serve a public purpose. The end use may be residential, commercial, retail, industrial, or other uses that the city supports. Use the Redevelopment Incentive Grant Application. Eligible Activities: The Redevelopment Incentive Grants would be restricted to the following activities that are commonly associated with redevelopment: 1. Property acquisition 2. Relocation payments to occupants of property acquired with program funds 3. Clearance and demolition expenses related to site assemblage for redevelopment and consistent with the redevelopment plan 4. Clean up of pollution or other contaminates on the impacted site . 11 . . . 5. Historic preservation (rehabilitation of properties with national or local significance in order to preserve that significance) 6. Necessary public improvements including but not limited to parking structures, sewer and water, sidewalks, street reconstruction, and ponding 7. Streetscape within the redevelopment area 8. Corrections to soil conditions that require extraordinary expense to remediate Ineligible Costs: The Redevelopment Grants cannot be used toward the following activities in a redevelopment project: 1. Construction and associated soft costs related to the project to be built on the redeveloped site 2. Costs not included in the application 3. Residential rehabilitation or house moving 4. Administration Threshold Criteria: The application must meet the following threshold criteria to be scored. 1. Application must be approved by the respective city council. 2. There must be a minimum leverage rate of 2 to 1 ($2 of other funds for every $1 of Redevelopment Grant). 3. The city must have completed a redevelopment plan for the impacted area. 4. The city must be supportive of affordable housing and the CDA's mission (as provided in the sample resolution). Competitive Criteria: If the application meets all threshold criteria, the application will then be reviewed and ranked on the following competitive criteria. 1. Leverage. Applications should include a variety of other funding sources committed to the project. Other funding sources could include CDBG, TIP, DEED, Metropolitan Council, or other public and private resources. [20 Maximum Points] 2. Readiness to Proceed. The applicant should be ready to proceed with the identified project upon funding award. [20 Maximum Points] 3. Housing Affordability. Applications should consider the inclusion of affordable housing in their redevelopment plans. Preference will be given to projects that include family, workforce and/or supportive housing units. "Affordable" is defined as: (a) rental- available to households atlbelow 50% of the area median income; (b) owner - available to households atlbelow 80% of the area median income. [20 Maximum Points] 4. Economic Benefit. The project should have a defined impact on the local economy. This impact is measurable through growth in property taxes and new and/or retained head-of-householdjobs. [15 Maximum Points] 111 5. Environmental Improvement. Projects that will clean-up, prevent and protect . from environmental hazards will be encouraged. Applicants should work with state agencies and professional consultants to select optimum remedy and create sustainable redevelopment. [15 Maximum Points] 6. Smart Growth Concepts. Projects should consider the need for public transit, walkable neighborhoods, green space, and mixed land uses that build a strong sense of community. [10 Maximum Points] Other Requirements: All acquisition costs must be supported by a third party professional appraisal. All redevelopment activities must comply with the Uniform Relocation Act. This includes but is not restricted to notice requirements for voluntary and involuntary sales, relocation payments, and relocation assistance. Selection: Applications will be reviewed by CDA staff. Applications must be complete and received at the CDA by the due date. Applications meeting the threshold criteria and scoring highly on the competitive criteria will be submitted to the CDA Board of Commissioners for approval at their January meeting. After selection and approval by the CDA Board of Commissioners, the CDA will issue a letter of commitment. Grant Agreement: CDA staffwill work with the city and enter into a Grant Agreement. This agreement will detail the terms and conditions of the grant and allow for the release . of funds to the city. The grant agreement will require funds to be spent within 18 months of the date of the agreement. Waivers and extensions to any provision in the agreement requested by the grantee will be considered on a case by case basis depending on the merits ofthe request. . IV . . . 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: Potential Code Improvements to [Former] Duebers Property DATE: November 8, 2006 Mr. Paul Otten is the owner of the space formerly occupied by Duebers in downtown Farmington. He has advised City staff that he is interested in leasing the space to a business, or to a group of businesses, that will bring more "foot traffic" to the downtown area. Some of the potential new uses of the space could not be accommodated without certain Building Code improvements, including (but not limited to) the installation of a sprinkler system and/or the construction of new handicapped-accessible bathrooms. Mr. Otten has asked whether any financial assistance might be available for such improvements. It is possible that at least some of the improvements might satisfy the requirements of the Community Development Block Grant program. If so, unused CDBG funds from prior years could potentially be used for some of the costs in question, and/or funds from the next fiscal year's allocation of CDBG funds could be devoted to the remodeling project. There are a lot of "strings" attached to the use of CDBG funds --- proof of compliance with Davis- Bacon Act wage guidelines, specific bidding requirements and procedures, mandatory environmental reviews, etc. Mr. Otten and I will be meeting with Dakota County CDA staff on Wednesday, November 8 to get more information about such requirements, so that Mr. Otten can make an informed decision regarding whether they would be acceptable to him. Ifso, City staffwill present the EDA with additional background material (projected costs, etc.) at a future meeting. In the meantime, EDA members are encouraged to offer their initial thoughts and comments regarding the proposed uses(s) ofCDBG funds referred to above.