HomeMy WebLinkAbout07.23.07 EDA Packet
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.
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AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
July 23, 2007 - 6:00 p.m.
City Council Chambers, City Hall
Members
1, Call Meeting to Order - working meal/light supper
Todd Arey
(Chair)
2. Pledge of Allegiance
Paul Hardt
(Vice Chair)
3. Approve Agenda
4. Citizens Comments/Presentations
Yvonne Flaherty
Erik Starkman
5. Consent Agenda (6:00 - 6:30 pm) (see attached)
a. Bills
b. June 25, 2007 Minutes
Chad Collignon
Christy Jo Fogarty
City Council
6. Public Hearings (None)
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David McKnight
City Council
7. Unfinished Business
a. Follow-up from 6/25/07 EDA Meeting (see attached)
b. McVicker Lot Update (see attached)
Peter Herlofsky
City Administrator
8. New Business (6:30 - 9:00 pm)
a. Visioning Session
h. Framework Document (attached as requested)
City Staff Representatives
Tina Hansmeier
Economic Development Specialist
9. City Staff Reports
Lisa Dargis
Administrative Assistant
10. Adjourn
325 Oak Street
Fannington, MN 55024
Phone: 651.463.7111
http://www.ci.farmin!rton.mn.us
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K:\HRA-EDA\Board Agendas (2007)\072307 EDA Agenda.doc
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
REGULAR MEETING
June 25, 2007
1.
Call Meeting to Order
The meeting was called to order by Chairperson Arey at 7 :00 p.m.
Members Present: Arey, Hardt, McKnight, Flaherty, Fogarty
Members Absent: Starkman, Collignon
Also Present: Tina Hansmeier - Economic Development Specialist, Peter
Herlofsky - City Administrator, Lisa Dargis - Administrative
Assistant, Richard Fursman, Jim Norman
2,
Pledge of Allegiance
3.
Approve Agenda
MOTION by Hardt, second by McKnight to approve the agenda. APIF, MOTION
CARRIED.
4.
Citizen's Comments
None
5.
Consent Agenda
a.) Bills
Member Fogarty asked for a breakdown of the bill from Eide Bailly, LLP. Staff
will get clarification from Finance.
b.) April 23, 2007 Minutes
Member Flaherty noted that the Minutes will need to be changed to reflect that
she was not present at the April 23, 2007 meeting.
c.) April & May Budget Details
MOTION by Hardt, second by Fogarty to approve the consent agenda with the noted
change to the Minutes. . APIF, MOTION CARRIED.
6. Public Hearings
None
7.
Unfinisbed Business
a.) Community Development Consultants
Richard Fursman from Global Synergy Group and Jim Norman from Norman and
Associates gave a presentation regarding their consulting contract with the City of
Farmington. The presentation gave information regarding the scope of work,
responsibilities and goals that the consultants would be focused on throughout
their contract with the City. The consultants would like to begin a visioning
process with the EDA to develop a vision and economic development plan. It
was decided that the July 23rd, 2007 regular meeting will begin one hour earlier
EDA Minutes
June 25, 2007
Page 2
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and the regular business will be conducted from 6:00pm-6:30pm. The remainder
of the meeting will be a focus session to begin the visioning process. The EDA
Members also reviewed the milestones that were set from the ICMA Peer Team's
report.
b.) Comprehensive Plan Update
City Planner Lee Smick gave the Members a presentation on the 2030
Comprehensive Plan Update process that has taken place to date. She reviewed
the Land Use Staging Plan that has been created and discussed the work that will
be taking place over the next year to complete the Update.
c.)
Development Contracts
i. Exchange Bank Building
Mr. Hosmer Brown, the owner of the Exchange Bank Building,
met with City staff on June 14th to discuss the default of his
development contract. Staff toured the building and received an
update from Mr. Brown. The City Building Official inspected the
building on June 18th and noted that there had been no progress
since his last inspection. Staff then sent Mr. Brown a list of the
renovation work that has not been completed so that he can
provide revised completion dates for the project. Mr. Brown has
been given a deadline of July 30, 2007 by which to submit the
requested dates.
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ii. McVicker Lot
Staff will be meeting with Mr. Joe Heinen on June 2ih to discuss
the default of his development contract.
8. New Business
a.) Comprehensive Plan Visioning
The EDA Members were given additional information to assist with the upcoming
visioning process. An example of a downtown vision and development plan was
provided, as well as information from the 2020 Comprehensive Plan as it
pertained to economic development and the City's Downtown Area.
b.) Market Study Update
The Members were provided with a timeline that was developed for the Market
Study. The timeline indicates the component tasks for the study and who will be
completing them. The customer survey is currently underway and work is
proceeding as scheduled.
c.)
Regan Site Plan
Mr. Regan has submitted a site plan for the last EDA owned lot in the Industrial
Park. Staff met with Mr. Regan and discussed any unresolved issues including
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EDA Minutes
June 25, 2007
Page 3
the 210th Street right of way agreement. The Planning Commission should be
reviewing the site plan at their July meeting. The development contract should be
completed within the next month or so.
d.) 2008 Budget Request
The Members were supplied with a copy of the proposed 2008 budget that was
submitted to the Finance Department. There were adjustments made to a few
items to accommodate potential marketing activities for next year.
e.) EDA Meeting Schedule
The schedule of regular meetings for the remainder of the year was reviewed.
Staffwill determine what date the December meeting was rescheduled to.
f.) Temporary Easements - Elm Street
MOTION by McKnight, second by Fogarty to approve the issuance oftemporary
easements for the Elm Street Reconstruction Project. APIF, MOTION
APPROVED.
9.
City Staff ReportslDiscussion
Staff distributed the tracking list of commercial and industrial contacts for the month.
There was discussion regarding the development of a program to highlight local
businesses in some way. The City of Lakeville does a monthly business spotlight. The
Members were asked to consider the idea and provide any ideas they might have at the
next meeting.
10. Adjourn
MOTION by Hardt, second by Flaherty to adjourn at 8:56p.m. APIF, MOTION
CARRIED.
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~saDari .. ~.~
Administrative Assistant
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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:
Tina Hansmeier, Economic Development Specialist
SUBJECT: Follow-up from 6/25/07 EDA Meeting
DATE:
July 23, 2007
At the last EDA meeting there were a couple of items the Board wanted me to look into.
. Member Fogarty asked for a breakdown ofthe$2,281.53 bill from Eide Bailly, LLP.
The Finance Director, Robin Roland, has explained that this bill covers the EDA's
portion of the audit bill. The EDA is responsible for 15.73% or $3,630 of the
budgeted amount. The reason it may seem a bit steep is because the EDA is
technically responsible for the TIF Districts which do get audited. Please see the
attached allocation of audit costs.
. The December EDA meeting has been rescheduled for Tuesday, December 18th.
Please make a note of this on the meeting calendar that was included in the June EDA
packet.
CITY OF FARMINGTON .
ALLOCATION OF AUDIT COSTS
2007
2007 2007 1/30/2007 4/18/2007 6/28/2007 (OVER)/UNDER
FUND NAME BUDGET PERCENT BILLING BILLING BILLING BUDGET
1021 GENERAL 11,000.00 47.68% 2,622.45 6,913.74 1,463.81
2000 EDA 3,630.00 15.73% 865.41 2,281.53 483.06
2502 ARENA 1,400.00 6.07% 333.77 879.93 186.30
6110 LIQUOR 1,000.00 4.33% 238.40 628.52 133.07
6115 LIQUOR 1,000.00 4.33% 238.40 628.52 133.D7
6202 SEWER 1,700.00 7.37% 405.29 1,068.49 226.22
6302 SOLID WASTE 1,700.00 7.37% 405.29 1,068.49 226.22
6502 WATER 1,700.00 7.37% 405.29 1,068.49 226.22
23.070.00 100% 5,500.00 14,500.00 3,070.00
23,130.00 23,070.00
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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:
Tina Hansmeier, Economic Development Specialist
SUBJECf: McVicker Lot Update
DATE:
July 23, 2007
INTRODUcnON
Please see attached email from Mr. Joe Heinen regarding his intended timeline for the
development of the McVicker Lot.
DISCUSSION
Mr. Heinen has requested an extension to his current Contract for Private Development.
Due to a variety of factors, Mr. Heinen would like to develop the McVicker lot during the
2008 construction season. In seeing the number of projects that are either under way or
soon to be underway in the downtown area, staff believes that the request is valid and
should be considered with the understanding that this will be the last extension considered.
RECOMMENDATION
Allow Mr. Heinen to submit construction plans to the City by the end of the year with an
intention of starting the project as soon as road restrictions permit in 2008.
Sincerely'~
t{Jc 1'1cfjHalIS) ) li!~
Tina Hansmeier,
Economic Development Specialist
cc: file
Page 1 of 1
Tina Hansmeier
From: Joe Heinen [heinen@ghjm.com]
Sent: Wednesday, July 11,20072:51 PM
To: Tina Hansmeier
Subject: McVicker
Tina,
Per our conversation, I would envision finalizing the docs and submitting to the City by the end of the year with an
intention of starting the project as soon as road restrictions permit in 2008. Please let me know if there is
anything else you need from me. I appreciate your consideration and look forward to hearing back from you. I'm
going to be in China beginning Monday so it would be very helpful to touch base before then if there is any issue.
Thanks again, Joe
Joe Heinen
Goldner Hawn Johnson & Morrison Incorporated
3700 Wells Fargo Center
90 South Seventh Street
Minneapolis, Minnesota 55402
Direct: 612/347-0171
General: 612/338-5912
Fax: 612/338-2860
heinen@ghim.com
7/13/2007
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A
FRAMEWORK
FOR THE CREATION
OF AN
ECONOMIC DEVELOPMENT PLAN
FOR THE CITY OF FARMINGTON
Prepared By:
Kevin Carroll, Community Development Director
Tina Schwanz, Economic Development Specialist
March 20, 2006
Revised April 4, 2006
Revised April 18, 2006
Revised April 24, 2006
TABLE OF CONTENTS
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A.
B.
C.
D.
E.
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2.
3.
4.
5.
6.
7.
8.
9.
F.
G.
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I.
In trodu ctio n ...... ...... ... ......... ............ ........ ....... .......... ...... ... ..... ......... ............. .......
[VisionlBasic Principles/Core ValueslMission Statement]
Proc ed ural Issues .......... ............ ........... ............ ......... .......... ............ ....................
Geogra p hie Iss u es ........................ ............ ........... ........................ ........................
No n-Geograp hie Issu es ................................................... .......................... ..... ....
S ta tisti cal lor 0 rma tio n............... ....................... ........ ........... ........... ............. ...
Eco nomic Development Au tb 0 rity ................................................................
P artn ers hips...... ........ ... ............. ......... ........... .......... .........................................
B usin ess Retention and Expansion......................... ...................... .................
MarketinglPro motio nlBusiness Attractio n ..................................................
Economic Incentives and Related Tools .......................................................
W 0 rkf 0 ree Housing.............. ...... ..... ............................. ........... ... .......... ...........
Trans po rta ti 0 n .... ............ ......... ............... ........ ........................ ........... .............
Tee hn 0 logy..... ....................... ........... ........... ............................................. ........
C h aile n g es ........... ............ ............ ........... ........ ...... ......... ...................... ...............
o p po rtuniti es... ......... ........... ... ............ ....... ....................... ............ ........... ..........
Go als an d Po Ii ci es ........... ........... ..................... ... .............................. ............ ......
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Action Plans............. ............ ...... ................. .............. .............. ............. ........ . . . ..
IPa2e numbers will be listed on later versions of this draftl
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A. Introduction
The need for a single document that effectively encapsulates the City's
objectives regarding economic development has been the subject of numerous
recent discussions involving (at various times) City staff, elected officials,
appointed officials (including members of the former Housing and
Redevelopment Authority and the current Economic Development Authority),
representatives of the local business community, interested residents, and
others. It is the hope of the EDA and City staff that this "Framework for the
Development of an Economic Development Plan for the City of Farmington"
will help identify and clarify issues to be discussed at upcoming meetings
regarding this topic, and provide a useful blueprint for the construction of a
comprehensive Economic Development Plan.
B. [Vision/Basic Principles/Core Values/Mission
Statement]
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(Select appropriate caption for this Section and insert relevant information
after the completion of the planned "Economic Development Summit."]
C. Procedural Issues
At the first official meeting of the City's new Economic Development
Authority [EDA] on February 27,2006, City staff presented a proposed format
and timetable for the finalization of a comprehensive Economic Development
Plan [EDP] for the City. The staff proposal was based on the preliminary
research and analysis that had been conducted by City staff during the
preceding months.
The members of the EDA offered a number of useful comments on the staff
proposal at the February 27 EDA meeting, Some of the comments in question
were related to the perceived need for additional direction from the City
Council, and/or for the development of a better understanding of the Council's
goals, objections and overall vision for economic development.
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At a subsequent City Council "Goal Setting Session" that spanned two days .
(March 9 and 10,2006), the City Council discussed the EDA's comments and
recommendations at length, and ultimately decided to organize and conduct an
"Economic Development Summit" in late April or early May of 2006 to help
refine the Council's desires and expectations regarding economic development
in general and the EDP in particular. The City Council agenda for the meeting
on March 20, 2006 included a draft of a Request for Proposals regarding the
selection of a consultant to help plan the Summit and facilitate the discussion
that will take place at that time.
At its meeting on April 3, 2006, the City Council extended the submission
deadline (for proposals from prospective facilitators). from March 29, 2006 to
April 26, 2006, with the expectation that the Council will select a facilitator at
its meeting on May 1, 2006.
Inasmuch as the topics to be addressed at the Summit may include a timetable
for the finalization of the EDP and/or the possibility of forming an Economic
Development Task Force to assist with that task, copies of the original staff
proposals regarding those subjects have been attached hereto for reference.
D. Geographic Issues
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At the January 9, 2006 HRA meeting, it was suggested that the Economic
Development Plan referred to above should include both geographic and non-
geographic components. Non-geographic components, which are generally not
"site specific," are addressed in Section E, below.
Geographic components would be site-specific. City staff members believe that
one of the keys to effective long-term economic development planning is
making certain that the City has an adequate (or perhaps even more than
adequate) inventory of land that is available for commercial and industrial
development - that is, parcels that have appropriate Comprehensive Plan
designations, and that are appropriately zoned, and that can be provided with
City services in a cost-effective manner that is not incompatible with
contemporaneous or future residential development.
Attached to this document you will find examples of the types of geographic
information and documents that City staff members have proposed to include in
the Economic Development Plan. They include the following:
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a.
Two regional maps that identify a number of specific geographic
"study areas" within Farmington where commercial or industrial
operation currently exist and/or where future commercial/industrial
development may be appropriate.
b. A more detailed map of each individual study area, which includes
details such as parcel boundaries, the names of current owners,
street names, current zoning classifications, jurisdictional borders,
footprints of existing buildings, and the gross acreage of rural or
large lots.
c. An aerial photo of each study area, on which lot lines have been
superimposed and major streets have been identified.
d.
An Excel spreadsheet that lists relevant factual information about
every parcel located within every study area, including names of
owners, property identification [PID] numbers, gross and net
developable acreage of undeveloped parcels, the square footage of
existing commercial and industrial properties, and the current
market value of all existing (developed) commercial and industrial
properties.
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It should be re-emphasized that the attached items are only examples. They are
offered primarily to help the City Council (and others) assess the usefulness or
necessity of the information in question. A conscious decision was made to not
finalize the staff analysis of all 15 of the identified "study areas" unless or until
it is clear that the level of detail reflected in the initial examples is actually
desired by the City Council.
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City staff members believe that this type of data is essential to establishing
baseline data that will enable the City Council to accurately monitor its progress
with regard to specific economic development goals. The maps, photos and
data in question can also potentially serve as extremely useful educational or
marketing tools for companies that are considering Farmington as a possible
new business location. Finally, the information in question would essentially
provide the City with a "jump start" on the analysis of certain land use issues
that the City will need to eventually resolve in connection with the Met
Council-mandated update of the City's Comprehensive Plan (which must be
completed by September of 2008).
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Any analysis of specific geographic regions of the City should devote special
attention to the challenges and opportunities presented by Farmington's historic
downtown area, which is a critically important component of the City's valued
"hometown" or "small town" atmosphere. Special steps may need to be taken
to ensure its continued viability as a commercial core in the face of increased
competition from new "green field" retail development.
In summary, one of the goals of the Economic Development Summit referred to
above should be determining whether the final version of the Economic
Development Plan should include maps, photos and spreadsheets comparable to
the examples that have been prepared by City staff.
E. Non-Geographic Issues
1. Statistical Information
Current and accurate factual information about the City of Farmington is
frequently needed and requested by a wide variety of parties. Such
parties include City Council members, members of the City's appointed
advisory bodies, City staff, residents, owners and employees of existing
Farmington businesses, corporations and businesses that are considering
Farmington as a potential location, other governmental entities, the
media, and current or prospective City "partners" including (but not
limited to) the Chamber of Commerce, Dakota Futures, and local civic,
fraternal, charitable and non-profit organizations.
The factual and statistical information in question is, for the most part,
readily available from a variety of sources. Currently, such information
is obtained and provided on an "as needed" or "as requested" basis.
However, consolidating all of this information in the City's Economic
Development Plan, and periodically updating it so that it constantly
remains current and accurate, will make the Plan a much more useful
economic development tool. For example, corporate decisions about
when and where to locate or relocate a business are sometimes made very
quickly, and a community that can rapidly provide necessary statistical
data in a comprehensive yet understandable format will have a significant
competitive advantage over those communities that cannot.
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I.
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Accordingly, the Economic Development Plan should ideally include the
following type(s) of information:
a. Population
(1) Past: The EDP should indicate the total population as
determined by the U.S. Census Bureau for 1950, 1960,
1970, 1980, 1990 and 2000.
(bttp://www.census.gov/)
(2) Current: The EDP should include City staffs latest
quarterly population estimate, based upon building
permits and certificates of occupancy.
Population estimates prepared by other entities should be
provided for comparison and contrast. Examples include:
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State of Minnesota - Department of Administration -
Office of Geographic and Demographic Analysis -State
Demographic Center
(http://www.demography.state.mn.us/index.html )
Metropolitan Council - "Resources, Reports and Data"
(http://metrocouncil.org/resources/resources.htm)
(3) Future: The EDP should include population forecasts or
projections by City staff for specific years (e.g., 2010,
2020 and 2030).
Population forecasts or projections made by other entities
(State of Minnesota, Metropolitan Council, Dakota
County, etc.) should be provided for comparison and
contrast.
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See attached Appendix A for additional and/or more
current information.
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b.
Major Employers
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The EDP should identify the City's major employers, the nature
of the products or services provided by each employer, and a
current employee count for each employer. The format should
parallel that of the Community Profile that appears in the City's
current listing on the State of Minnesota's "MNPRO" site
(http://www.mnpro.com/home.aso?TargetFile=detailc.asp%3FP
K City%3D258):
Major Employers
Employer NAICS Products/Services Employee Count
Farmington Public Schools-ISD #192 6111 Elementary & Secondary Schools 540
Federal Aviation Administration 9261 Admin.ofEconomic Programs 450
Dakota Electric Assn 2211 Electric Power Generation, 220
Transmission & Dist.
Kemps 3115 Dairy Product Manufacturing 139
Valmont Lexington 3329 Other Fabricated Metal Product 126
Manufacturing
Farmington. City of 9211 Executive, Legislative, & Other 88
Gen. Govt. Support
Controlled Air 2389 Other Specialty Trade Contractors 67 .
Duo Products Inc 3252 Resin, Synth. Rubber & Art. Synth. 65
Fibers & Fil. Mfg.
Marschall Line Inc 4854 School & Employee Bus 60
Transportation
Peerless Plastics 3252 Resin, Synth. Rubber & Art. Synth. 45
Fibers & Fil. Mfg.
PIC Jnc 2389 Other Specialty Trade Contractors 37
Northern Natural Gas Co 2212 Natural Gas Distribution 16
View All Emplovers Listed
See attached Appendix B for additional and/or more
current information.
c. Employment Data
The City does not currently have a mechanism in place for
independently gathering or calculating detailed employment data,
such as the number or percentage of workers within specified
industries, businesses or occupational categories. The EDP
should therefore provide relevant and useful employment
statistics gleaned from sources including the U.S. Census Bureau,
the State of Minnesota, the Metropolitan Council, and Dakota (.
County.
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See attached Appendix C for additional and/or more current
information.
d.
Household Income
The City also does not have a mechanism in place for
independently gathering or calculating household income
information, such as the number or proportion of households that
have incomes within specified strata (e.g., the percentage of
Farmington households that have incomes between $50,000 and
$75,000). The EDP should therefore provide relevant and useful
household income data derived from sources including the U.S.
Census Bureau, the State of Minnesota, the Metropolitan
Council, and Dakota County.
See attached Appendix D for additional and/or more current
information.
e.
Education
The EDP should list and describe relevant information about
local and regional educational systems, including:
(l)the type and number of public schools located within the
City;
(2) the high school graduation rate;
(3) the percentage of high school students who pursue post-
secondary education;
(4) other local/regional educational resources, including:
ISD 192 Community Education
http://www.farmington.kI2.mn.us/communityedl)
University of Minnesota Extension Service
(http://www . extension. umn.edulindex.html)
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Dakota County Technical College (Rosemount)
(http://www.dctc.mnscu.eduJindex.htm)
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See attached Appendix E and the "Partnerships" section of this
Economic Development Plan for additional and/or more
current information.
f. Housing
The EDP should include relevant and current information about
housing options and costs in Farmington. Such information
should include:
(1) Current number of households
(2) Number and relative proportion(s) of single-family
[SF] housing units and multi-family [MF] housing
units
(3) Summary of recent-residential construction activity .
(number of SF and MF units constructed in each of
the last five years, at a minimum)
(4) Estimates or projections regarding future residential
construction activity (i.e., a review of pending or
anticipated concept plans or plats)
( 5) Average market values of SF and MF housing units
and average monthly rent for rental properties.
Sources for this information will presumably include City staff,
Dakota County, the Metropolitan Council, the State of Minnesota
and private organizations including:
Builders Association of the Twin Cities
(http://www . batconline.orglbatc/index. po)
Southern Twin Cities Association of Realtors
(http://www.stcar.com!)
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See attached Appendix F for additional and/or more current
information.
g.
Transportation and Transit
Some of the businesses that are considering Farmington as a
potential location will be interested in the amount of "drive-by"
traffic, exposure to major thoroughfares and ease of access for
customers and suppliers. The EDP should therefore include the
most current information available regarding traffic counts on
roadways such as Highway 3, CSAH 50 and Pilot Knob Road.
Information about recently completed, current, and planned
roadway improvement or expansion projects should also be
provided (e.g., Ash Street project, Spruce Street extension and
bridge project, Elm Street reconstruction, etc.)
The current and future availability of transit will also be a topic
of interest. The EDP should provide information about:
(I) the potential expansion of MVT A bus service -- see
http://www.mvta.com/;
(2) the possible impact of the Met Council's proposed
Cedar Avenue Busway -- see
http://www .metrocounci1.org/about/facts/CedarA veBu
swayFacts.pdf;
(3) the City's desire and intention to consider potential
transit station locations in connection with the early
conceptual planning of future commercial areas
located near major (current and future) transportation
corridors.
(4) possible future uses of the existing railroad line
through Farmington (continuation or expansion of
shipping/freight uses, potential improvements such as
new sidings, rail access to future industrial areas, etc.)
(5) possible extension or construction of commuter "light
rail" in or near Farmington.
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See attached Appendix G for additional and/or more current
information.
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h. Parks and Recreation
A city's "quality of life" is important to residents and businesses
alike. For many, the best measure of a city's attractiveness in
this regard is the attention that it pays to recreational activities
and facilities. The EDP should therefore include basic factual
information of the following type:
(I) number of existing City parks;
(2) total acreage of existing City parks;
(3) projected number and total acreage of City parks at
"full build-out," per Park & Trail Master Plan
(4) number of miles of existing City trails and planned .
trails
(5) major existing City recreational facilities (pool, ice
arena, fields, etc.)
(6) status report on possibility of future Community
Center;
(7) general information about City recreational activities
(athletics, senior programs, etc.)
(8) regional parks and recreational areas (Dakota County,
Met Council, etc.)
See attached Appendix I for additional and/or more current
information.
i.
City Services
I.
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The nature and extent of municipal services vary from city to
city. For example, Farmington is one of only a few Minnesota
cities that provide municipal garbage service. The EDP should
therefore include a summary of the structure and functions of city
government in Farmington. At a minimum, the City's
departments and divisions should be listed and briefly described,
along with the City's various elected and appointed bodies.
See attached Appendix I for additional and/or more current
information.
j.
Taxes
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Residents and businesses sometimes inquire about how or where
Farmington ranks (in Dakota County, in the metro area, or in the
State of Minnesota) with regard to local taxes. Although such
rankings arguably provide an overly simplistic assessment of a
city's overall "economic health," it may nevertheless be useful to
include such information (or a source for such information) in the
EDP. An example of this variety of "ranking data" can be found
at http://www.osa.state.mn.us/Search/CitySearch.aspx .
See attached Appendix J for additional and/or more current
information.
k. Public Safety
[Insert relevant information regarding the Farmington Police
Department, the Farmington Fire Department, ALF Ambulance,
and crime statistics.]
See attached Appendix K for additional and/or more current
information.
2. Economic Development Authority
2.1 The EDA 's Powers and Tools
.
13
The Economic Development Plan should specifically identify and .
describe the EDA's statutory powers and the tools that are available to
the EDA to promote and facilitate desirable development, including (but
not limited to) the following:
a. The creation and/or administration ofTIF districts,
including policy-level recommendations related thereto.
b. The use of tax abatement in appropriate circumstances.
c. The acquisition, leasing and sale of land or facilities (e.g.,
original purchase and subsequent sale of Industrial Park
land, leasing of former downtown municipal liquor store,
etc.).
d. The negotiation and finalization of contracts and
agreements related to economic development (e.g.,
Contract for Private Development between the [former]
HRA and Aerospace Fabrication and Materials).
e.
The potential availability of an EDA levy to help fund the
EDA's operational costs; for more information, see
http://www.revisor.1eg.state.mn.us/stats/469/ 1 07 .html .
.
f. The use of the EDA's ability to issue bonds to help finance
suitable development projects.
2.2 The EDA's Relationship to the City Council (and Others)
As the appointed advisory body that has the closest connection to the
City Council (due, in part, to the presence of two City Council members
on the EDA), and in light of the statutory powers held by the EDA, the
EDA would seem to be the logical choice for conducting research,
making recommendations to the City Council regarding long-term
objectives and short-term strategies and tactics, and monitoring the City's
progress toward the completion of any action steps specified in the
Economic Development Plan. In short, the EDA can and should serve as
the City Council's operational agent with regard to economic
development matters, and as the City's chief economic development .
agency. The EDA will also have to coordinate its work with that of the .
14
.
Planning Commission, to ensure that economic development initiatives
are consistent with the City's Comprehensive Plan and zoning
regulations.
2.3 The EDA 's Responsibilities Regarding the Economic
Development Plan
The EDA shall, under the direction of the City Council, be responsible
for organizing and coordinating whatever work may be required to create
an initial draft of an Economic Development Plan that can be reviewed
and discussed by an appointed Task Force, residents and business
owners, the Planning Commission and other appointed City committees,
the City Council itself, and other interested parties. The EDA will then
use the aforementioned public input to prepare a final draft of an
Economic Development Plan for the City Council's consideration. After
the finalization of the Plan by the City Council, the EDA shall have
primary (but not exclusive) responsibility for ensuring that the Economic
Development Plan is successfully implemented.
.
3.
Partnerships
Assessment:
The City cannot "go it alone" if it wants to optimize the success of its
economic development efforts. Effective and mutually beneficial
partnerships between the private and public sectors, and between
governmental entities, will help ensure the best possible outcomes for all
concerned.
Obiectives:
.
There will be a need for ongoing public input regarding economic
development matters. Such input could be provided by City-appointed
task forces, the Economic Growth Committee proposed by the
Farmington Business Council, individual residents and business owners,
the "development community" in general, and others. The City should
take steps to ensure that it receives input from the broadest possible range
of interested and affected parties. The Economic Development Plan
15
should describe existing partnerships, and identify potential future
partners and collaboration opportunities.
e
Tools and Options:
Examples of existing existing partnerships, and potential future partners
and collaboration opportunities, include the following:
1. Dakota County Community Development Agency [CDA]
http://www.dakotacda.org/citiesandtownships.htm
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization. ]
2. Dakota Future
http://dakotafuture.avenet.net/index.asp?Type=NONE&SE
C={A92 1 6704-0BE4-498D-AA4E-CDEAB IF9F7Dl}
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization. ]
e
3. Farmington Business Council of the Northern Dakota
County Chambers of Commerce
http://www.ndcchambers.com/farmington steering commi
ttee.cfm
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization. ]
4. IndependentSchoolD~trict192
http://www.farmington.k12.mn.us/
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization.] Ie
16
. 5. Dakota County Technical College
http://www.dctc.mnscu.edulindex.htm
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization. ]
6. Economic Development Association of Minnesota
http://www.edam.org!
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization. ]
7. Dakota-Scott Workforce Investment Board
http://www.mnwfc.org/dakotalwib/
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
. organization. ]
8. Metropolitan Interfaith Coalition for Affordable Housing
http:www.micah.org
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization. ]
9. Minnesota Department of Employment and Economic
Development (DEED)
http://www.deed.state.mn.us/
[Briefly explain what this organization does and how the
City and EDA works, or could/should work, with the
organization. ]
.
The EDP should also address potential partnerships with institutions of
higher education. There may be a Minnesota college or university that
would consider opening a new campus in Farmington, in part because
Dakota County may currently be "under-represented" with regard to
17
four-year higher education facilities. The presence of a college campus .
in Farmington could raise the City's public profile, assist with the City's
marketing efforts, and help provide trained employees for the City's
current and future businesses.
Action Plan:
4. Business Retention and Expansion
Assessment:
As the City continues to devote increasing attention to attracting new
businesses, it is important that existing local businesses not be forgotten.
Many of them will have special issues that need to be addressed, such as
functionally obsolete buildings or equipment, physical limitations on
expansion, increased competition, ownership/management transitions,
financing challenges, etc. Some businesses will ask for assistance or
advice in such circumstances, and some will not. Businesses that don't .
seek help sometimes decide to close or move when that outcome might
have been avoided if the City had been made aware of their difficulties.
Obiectives:
The Economic Development Plan should identify and list strategies that
could be used to help retain existing businesses and assist them with
desired or required expansions. One example of such a strategy would
involve the initiation (by the City) of a "visitation schedule" whereby all
local businesses are contacted by a City staff member and/or by other
interested parties (e.g., Chamber of Commerce representatives) at defined
intervals. The goal is, of course, would be to pro actively identify and
resolve issues and concerns before a crisis arose that might cause the
business to close or to move to another city. Inasmuch as this type of
"outreach" program is especially labor-intensive, and becomes
increasingly time-consuming as the local business economy continues to
grow, the Economic Development Plan should realistically address the
amount of staff time that can and should be devoted to these types of
contacts and investigations.
I.
18
.
Tools and Options:
The City staff members who serve as the primary resources or "points of
contact" with regard to retention/expansion issues will typically be the
Economic Development Specialist, the Community Development
Director (who also serves as the Executive Director of the EDA) and the
City Administrator. Other City staff members who may be called upon
to provide specific types of advice include the City Engineer, the Finance
Director, the City Planner and the Building Official.
See also, "Grow Minnesota," at:
http://www.ndcchambers.com/grow minnesota.cfm
Action Plan:
5. Marketing/Promotion/Business Attraction
Assessment:
.
The Economic Development Plan should address the extent to which the
City desires or intends to actively market or promote itself as a good
location for new business "start-ups," relocations, renovations and
expansions. The amount of money and staff time that the City decides to
devote to such promotional activity will presumably be based upon a
careful cost/benefit analysis.
Obiectives:
To the extent possible, the City should try to avoid expending significant
tax dollars or large amounts of staff time to get promotional materials
prepared and delivered to businesses that are ( a) already considering
Farmington as a potential location or (b) unlikely to consider Farmington
as a potential business site in the reasonably foreseeable future. A more
personalized or "targeted" approach would presumably be more efficient,
more cost-effective and more successful than bulk mailings and cold
calling.
.
19
The City's marketing and promotional materials should also be provided .
to the City's existing businesses. They need to be aware of the factual
data contained therein (population estimates, commercial and industrial
building permit activity, etc.). Timely, accurate and favorable
information about the City's business climate may assist the City in
retaining current businesses, and could make them more inclined to
expand their operations locally and thereby reinvest in the community.
Guidance from residents and from elected officials regarding priorities
for business attraction would also be very helpful, and would be
consistent with the "targeted" approach suggested above. The City plans
to conduct a professional survey of its residents in the near future.
Ideally, some questions regarding economic development could be
included in the survey. In addition, it is anticipated that the analysis of
"Geographic Issues" (Section D of the Economic Development Plan) will
include opportunities for public input regarding the most desirable
businesses for specific areas or regions (e.g., historic downtown,
Highway 3 corridor, Industrial Park, etc.).
Tools and Options:
.
If or when the City begins to consider devoting more of its financial and
human resources to marketing and promotional activities, the following
elements could be considered:
a. The use of a marketing, advertising or public relations
consultant to identify options, estimate costs and make
recommendations._AtteIition should be devoted to
(among other things) identifying or describing
Farmington's current and/or potential future "niche" in
the regional commercial/industrial business environment.
b. The creation of a full-time City staff position specializing
in media relations and publicity, such as the City of
Rosemount's "Communications Coordinator" or ISD
192's "Communication Specialist."
c.
The utilization of one or more of the following marketing
or promotional tools:
.
20
.
(1) a video or DVD
(2) full-color brochures
(3) press releases or media advisories
(4) readily available "fact sheets"
(5) Powerpoint presentations
(6) portable display boards
(7) ads in print media (magazines, etc.)
(8) ads on cable TV stations
(9) City web site
(10) City newsletter
(11) regular column in local newspaper( s)
(12) direct mail solicitations
Action Plan:
6. Economic Incentives and Related Tools
.
Assessment:
Businesses compete with one another, and cities compete to get them
(and/or keep them). Such competitions are sometimes (but not always)
won by the city that can offer the most attractive "package" to a
prospective new business, or to an existing local business that is
considering a relocation.
Obiectives:
For most cities, the dilemma lies in trying to balance (a) potentially
costly financial incentives and (b) the constant pressure to keep city
expenditures (and taxes) as low as possible. To assist with that
challenging task, the Economic Development Plan should include a
summary and description of the most common types of economic
development tools and incentives that are potentially available to assist
businesses. To the extent possible, the Plan should indicate which tools
the City of Farmington is prepared to consider using, and the
circumstances under which doing so would be considered appropriate.
.
21
Tools and Options: .
Examples of the types of tools that the EDP could identify and describe
include the following:
a. Tax Increment Financing [TIF]
(http://www.house.1eg.state.mn.us/hrd/issinfo/sstif.htm)
b. Property Tax Abatement
(http://www.house.1eg.state.mn.us/hrd/issinfo/ssptabt.htm)
c. Industrial Revenue Bonds
d. Zoning Bonuses, Variances and Exemptions
e. Land Acquisition (by HRA or EDA, for example)
f. HUD Grants and Loans .
g. Community Development Block Grants [CDBG]
Dakota County Community Development Agency [CDA]
(http://www.dakotacda.org/cities and townships.htm#comm)
h. Metropolitan Council Loans and Grants
Livable Communities Demonstration Account [LCDA]
http://www.metrocounci1.orglservices/livcomm.htm
Tax Base Revitalization Account [TBRA]
http://www.metrocounci1.orglservices/livcomm.htm
1. U.S. Small Business Administration
(http://www.sba.govD
J. Minnesota Department of Employment and Economic .
Development [DEED]
22
.
(http://www.deed.state.mn.us/Community/assistance/financial)
Minnesota Investment Fund
(http://www.deed.state.mn.uslbizdev/lnv F d1)
Small Business Development Loan Fund
(http://www.deed.state.mn.uslbizdev /SBDLnI)
k. Pollution Clean-Up Programs
Minnesota Pollution Control Agency [MPCA]
(http://www.pca.state.mn.us/cleanup/index.html )
1. Programs Offered by Utility Companies
Xcel Energy, Dakota Electric, Aquila, etc.
Action Plan:
.
7 . Workforce Housing
Assessment:
Housing is a critical component of effective economic development. The
price, type and location of a community's housing should match the
existing and desired workforce to the greatest extent possible in order to
provide an adequate supply of local workers for business and industry.
This is becoming more and more challenging, especially with respect to
low to moderate-income level service and retail sector jobs, given ever-
escalating land values and construction costs.
Various regional and state agencies periodically analyze workforce
housing issues. See, for example, the analysis by the Dakota County
CDA that can be found www.dakotacda.org/pdf/WorkHsgReport.pdf.
Obiectives:
.
23
The Economic Development Plan should include information about the .
current status of workforce housing in Farmington and the steps that the
City has taken (and will take) to help ensure that affordable housing is
available for the workers who will be needed for and by the businesses
and industries that the City desires and intends to attract.
Tools and Options:
A potential resource for the City in this regard is the Metropolitan
Interfaith Coalition for Affordable Housing (see www.micah.org).
Action Plan:
8. Transportation
Assessment:
Efficient transportation is an important component of successful .
economic development. Customers, employees and suppliers need to be
able to get to their business destinations as quickly and as easily as
possible.
Obiectives:
The Economic Development Plan should address existing transportations
systems and any necessary or desired improvements. Specific
information should be provided regarding the plans (state, county and
city) for and projected timing of projects or improvements related to the
following roadways, at a minimum:
a. Trunk Highway 3 corridor through Farmington, including
information on access management studies that could result in the
closing of existing intersections, the opening of new accesses or
the signalization of certain intersections.
b.
Elm Street reconstruction project.
\.
24
.
1.
J.
. k.
1.
.
c.
Extension of Pilot Knob Road from CSAH 50 to 220th Street.
d. Extension of Spruce Street from Denmark Avenue to the extension
of Pilot Knob Road (see "c" above).
e. Paving/improvement of 220th Street between Denmark Avenue and
the extension of Pilot Knob Road.
f. 208th Street between the Industrial Park and Pilot Knob Road.
g. 208th Street between the Industrial Park and Akin Road.
h. 208th Street between the Farmington Middle Schools and Trunk
Highway 3.
208th Street between Pilot Knob Road and Flagstaff Avenue.
208th Street between Flagstaff Avenue and Cedar Avenue in
Lakeville.
195th Street between Mystic Meadows and Trunk Highway 3.
Diamond Path Road between Mystic Meadows (Phase I) and Akin
Road.
m. 195th Street between Flagstaff Avenue and Cedar Avenue.
n. Potential improvements to Flagstaff Avenue.
The transportation portion of the EDP should also address: the likelihood
and potential timing of an extension of the Minnesota Valley Transit
Authority's [MVTA's] service in to Farmington; the possible beneficial
impact of the planned Met Council Cedar Avenue Busway; the need to
set aside land for at least one future transit station in Farmington; the
current and potential future shipping/freight uses of the existing railroad
line that passes through Farmington; and the possible expansion or
construction of commuter "light rail" in or near Farmington.
25
Tools and Options:
.
Action Plan:
9. Technology
Assessment:
The Economic Development Plan should address any technology issues
that could potentially provide the City of Farmington with a competitive
advantage in its economic development efforts. The topic that has
justifiably received the greatest amount of attention lately is the concept
of providing "fiber to the home" [FTTH], or in this context, fiber to
businesses and industries ["FTTP," or "fiber to the premises"]. It has
been said that "there may be no single thing more important in a
community's efforts to achieve economic well-being than to grasp the
role that telecommunications plays in creating meaningful jobs and
enhanced education." The capability of providing ultra-high speed, "next ..
generation" broadband connectivity is becoming a hallmark of a
progressive or even visionary community. .
Ob;ectives:
The EDP should identify steps that can and should be followed to explore
an expansion of the City's broadband capabilities. Communities that
have already ventured down this path have typically utilized a process
that includes the following steps:
a. Assess local demand and existing services.
b. Determine market and service objectives.
c. Discuss service and infrastructure needs with local and
potential providers.
d.
Reconcile existing demand and availability with what the
City wants to achieve.
.
26
.
Tools and Options:
For more information, go to http://www.fiberfirstminnesota.org/ .
Action Plan:
F. Challenges
An open, candid and wide-ranging discussion of economic development issues
will inevitably lead to some subjects that are more controversial than others.
Everyone should be prepared to face such issues head-on and, whenever
possible, work toward consensus positions that balance competing interests.
Examples of some of the more challenging topics that are likely to be
encountered include the following:
.
.
a.
Nature and level of City involvement in private development.
Should the private sector and the real estate market dictate or drive
the development that occurs (or does not occur), or is it appropriate
for the City to take a more active role?
b. Zoning changes and Comprehensive Plan amendments. If the City
wants to effectively guide certain types of development toward (or
away from) specific areas, that goal can be accomplished by
frequently reviewing the City's Zoning Map and Comprehensive
Plan and making appropriate modifications from time to time.
However, such actions frequently affect (or are at least believed to
affect) the rights and options of property owners.
c.
Termination of Agricultural Preserve status. The City has the
statutory right to initiate the termination of Ag Preserve status for
undeveloped farmland. Even after doing so, the property in
question could not be developed or assessed for nearby
infrastructure improvements for a num.ber of years. There is an
inherent tension between (a) the Comprehensive Plan's
commitment to preserving working farms, and (b) the limitations
placed upon commercial and industrial expansion by the presence
of large tracts of land that cannot be developed within the
27
foreseeable future and that cannot be assessed to help finance the .
infrastructure improvements that are needed to "open up" nearby
properties for commercial development.
d. "Jnfill" and redevelopment projects in the historic downtown area.
Existing businesses maybe concerned about adverse impacts upon
their operations (increased competition, construction activity,
temporary reductions in accessibility due to traffic complications,
etc.). Existing residents who live adjacent to or near the downtown
core area may be concerned about commercial "intrusions" into
established residential neighborhoods.
e. Construction of relatively high density residential developments
near relatively low density neighborhoods. This is an aspect of the
workforce housing issue discussed above.
f.
Use or non-use of the City's and/or the EDA's power of eminent
domain. The City Council and City staffhave a strong and clear
preference for negotiated, mutually acceptable agreements when
the acquisition of property is desired or required, but the City
Council members may have to make decisions about the
circumstances under which they will or will not use the full range
of options that are available to the City.
.
G. Opportunities
The aforementioned challenges are balanced by an equally wide range of
interesting and positive opportunities, both within the City and in the region.
They include, but are not limited to, the following:
a.
Pace and Direction of Growth. The population base that is located
to the north and northwest of Farmington (e.g., Apple Valley,
Burnsville, etc.) is steadily moving to the south and southeast as
available undeveloped land is consumed. In more fully developed
communities, the demand for land is high but the supply is low.
The resulting impact on land costs is causing businesses and
developers to devote an increasing amount of attention to
communities like Farmington, where the demand is not yet as high,
.
28
.
the supply of land is more plentiful, and land values are still
relatively affordable.
b.
Level of Interest in "Fiber to the Premises." There seems to be a
high level of local political support for this potentially beneficial
type of technology initiative. See Section "D(9)" above.
c.
Rosemount Air Cargo Facility. Farmington's neighbor to the
north, Rosemount, could potentially have a 500 to 1000-acre air
cargo facility in a few years. Consideration should be given to
how Farmington could capitalize on its proximity to this facility.
Foreign trade options, local packaging and shipping operations,
and other possibilities may exist then that do not exist now.
For more information, see:
.
"Rosemount selected to host air cargo facility."
Thisweek, February 17, 2006.
bttp://www.tbisweek-
online.com/2006/Februarv/17rmaircanw.html
"Rosemount eyes future after landing air cargo hub designation."
Minnesota Real Estate Journal, March I, 2006.
bttp://www.mrei.com/storv.cfm?Market=MN&StorvID=13983
H. Goals, Policies and Desired Outcomes
One of the objectives of the upcoming Economic Development Summit should
be to establish or specify the goals and related City policies upon which the
details of the Economic Development Plan will be based. Goals should be broad
and somewhat general in nature. The research conducted by City staff to date
suggests that the economic development plans (or similar documents) that have
been adopted by other cities have typically included goals such as these:
a. Diversify the tax base.
b. Create a broad range of employment opportunities.
.
c.
Provide necessary goods and services for local residents.
29
d.
Ensure the highest "quality of life" possible.
e. Promote a positive image of the city in general, and its business
environment in particular.
I. Action Plans
Having a set of adopted goals is of little value unless the steps needed to
accomplish those goals are identified, initiated and successfully pursued. City
staff members are prepared to promptly craft proposed Work Plans or Action
Plans as soon as the City Council and EDA members have had an opportunity
to discuss and agree upon a collective vision for Farmington's future economic
development. We recommend that an interim work program be adopted for the
remainder of 2006, and that a new (proposed) work plan for 2007 be presented
to the EDA and the City Council sometime during the period when the City
Council is considering and discussing its budget for 2007. Many of the
economic development initiatives that the City Council may want to pursue will
be dependent upon the personnel and budgetary resources that are available in
any gIven year.
[Include in this section a summary of the individual action plans from the
preceding sections of the Economic Development Plan.]
30
.
.
:.
.
[Attach following Appendices:]
Appendix A - Population Statistics
Appendix B - Major Employers
Appendix C - Employment Statistics
Appendix D - Household Income Data
Appendix E - Education Information
Appendix F - Housing Statistics
.
Appendix G - Transportation and Transit Information
Appendix H - Parks & Recreation Information
Appendix I - City Services
Appendix J - Taxes
Appendix K - Public Safety
.
31
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