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HomeMy WebLinkAbout04.23.07 EDA Packet i.'he 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 April 23, 2007 -7:00 p.m. City Council Chambers, City Hall Members 1. Call Meeting to Order 2. Pledge of Allegiance Todd key ( Chair) Paul Hardt (Vice Chair) 3. Approve Agenda 4. Citizens Comments/Presentations Yvonne Flaherty Erik Starkman 5. Consent Agenda a. Bills b. March 26, 2007 Minutes Chad Collignon Christy Jo Fogarty City Council 6. Public Hearings (None) . David McKnight City Council 7. Unfinished Business a. Consultant Options i. _ Maus Group . Proposals ii. Global Syn~rgy Group Proposal b. March Budget Details (see attached) c. Development Contracts i. Exchange Bank Building (see attached) ii. McVicker Lot (see attached) d. Riste Building Update (see attached) e. Downtown Business Group (see attached) f. Comprehensive Plan Update (see attached) City Staff Representatives Peter Herlofsky City Administrator Tina Hansmeier Economic Development Specialist 325 Oak Street Farmington, MN 55024 8. New Business a. Twin Cities Community Capital Fund (see attached) b. School & Conference (see attached) c. EDA Sign Update (see attached) d. Farmington Housing Market Update (see attached) Phone: 651.463.7111 Internet: www.ci.farmington.mn.us 9. City Staff Reports 10. Adjourn . K:\HRA-EDA\Board Agendas (2007)\042307 EDA Agenda rev1.doc . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463.7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Economic Development Authority Peter HerlO~ Market Stud~U1tant FROM: SUBJECT: DATE: April 20, 2007 Over the past week we have received a couple of documents: 1. A revised market study proposal. 2. Community Development consultant proposa1. Based on the information that has been provided to us and that is attached to this memo, I would like to recommend the following action by the EDA. 1. Approve the contract with Mr. Richard Fursman for the remaining portion of2007. 2. Direct staff to meet with Mr. Fursman and review the market study proposed by McComb and Maus to help determine what we can do ourselves and how we can coordinate with the consultant. The advantage of having Mr. Fursman available will transfer some skills to employees and allow us to have more input and involvement with the market study. We do feel that the market study will be very helpful with the comprehensive plan and accommodation ofthe individuals above will be beneficial to the City. CMullerfHerlofskyfEDAlMarket Study ! . . . Page 1 of 1 Peter Herlofsky From: richard fursman [richardfursman@gmail.com] Sent: Wednesday, April 18, 2007 3:50 PM To: Peter Herlofsky Subject: Economic/Community Development Contract Peter, I'm not sure what may have happened to my email from last week. I am developing a web page with a new email address and may have messed something up. Anyway, I have attached a proposal for community/economic development for you to review. To be more effective in meeting your objectives, I have asked Jim Norman (Norman & Associates) if he would join in this effort. Jim has enthusiastically agreed to join me in this effort if awarded by the Farmington Council and with your approval. Jim has expertise in corridor development (along Hwy 10 in Ramsey), redevelopment and economic development. I am confident his expertise and insight would be a bonus for all. He is former administrator of Ramsey Minnesota (resume attached) and is currently working on transportation corridor development projects including a relationship with Burger King. Thank you for the contact; I look forward to hearing from you soon. All the best, Richard Fursman President The Global Synergy Group 4/19/2007 Richard Fursman Global Synergy Group 1666 Village Trail E Suite 7 Maplewood, MN 55109 April 15, 2007 Peter J. Herlofsky, Jr. City Administrator City of Farmington 325 Oak Street Farmington, MN 55024 RE: Economic Development Advisor Dear Mr. Herlofsky: Thank you for contacting the Global Synergy Group for the opportunity to work with you and the City of Farmington with Community/Economic Development issues. We look forward to working with the City in the following capacity: Scope of Work: . We will provide the City of Farmington with community development advisory services that will include: o Assisting with the planning of downtown redevelopment, new subdivisions, development standards and capital improvements. o Represent or assist the City in negotiations with developers on projects. o Assist in planning and developing creative solutions regarding developments near the new high school, Pilot Know & Hwy 50, Vermillion Crossing and other locations. o Work with staff and elected officials to create a strategy for working with adjacent local governments regarding development and growth management. . Meet with staff, elected and appointed officials on community development Issues. . Provide timely written and oral reports as required by the City Administrator. \ . . . . Page 2 April 15, 2007 Peter J. Herlofsky Compensation: Global Synergy Group will be paid a monthly retainer due and payable at the beginning of each month as noted: Retainer Hourly Rate Mileage $1,300 $130 $.0485/Mile The consultant will conduct the work identified in the "Scope of Work" at a minimum of 1 0 hours each month. Any additional time and expenses required to meet the months objectives will be cleared with the City Administrator or designee and billed at the hourly rate. The travel time spent to and from Farmington will not be charged except for the Mileage. Terms: Either party may terminate this engagement upon seven days written notice. All material generated by the consultant is considered the property of the City of Farmington and will . turned over to the City once the term of the contract is complete. Liability: In no even shall Consultant's liability to the City exceed the fees paid to the Consultant under the terms of this agreement. Applicable Law: Any disputes arising under this agreement shall be resolved or determined in the accordance with Minnesota Law. Upon receipt of the retainer for the first month, Global Synergy Group is prepared to begin work. The undersigned agree to the terms of the agreement. Global Synergy Group Richard Fursman - President Date . City of Farmington Peter J. Herlofsky - City Date iSl M ;q; !I M M . 0 0 0 i:i 0 0 IC 81 0 0 0 0 0 0 N N N , 0 0 (J; Gl l- I- ~ Ol Z Z ~ III W W 0 n. ::;; ::;; n. n. 0 0 ..J ..J W W > > w w Cl Cl <..l <..l c: :ii :ii 0 0 0 a z z "C: 0 0 &l <..l <..l Gl W W Cl ~ ~ ::I CD J: J: en w <..l 5 ll: c: W en ,Q ..J a. <( "C: Z U lIJ 0 Gl (jj <..l Cl C en ii: w b " LL @ 0 W ll: ..J <( n. w II ..... ~I c::- o Z 0 .i III N ~ N E N 0 N E N gl ... ... 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Call Meeting to Order The meeting was called to order by Chairperson Arey at 7:00 p.m. Members Present: Arey, Collignon, Hardt, McKnight, Flaherty, Starkman, Fogarty Members Absent: None Also Present: Economic Development Specialist Tina Hansmeier, City Administrator Peter Herlofsky, Farmington Area Public Schools Communication Specialist Aaron Tinklenberg, Leon Orr, Colin Garvey, Jeff Thelen, Dan Mingo 2. Pledge of Allegiance 3. Approve Agenda MOTION by Hardt, second by McKnight to approve the agenda. APIF, MOTION CARRIED. 4. Citizen's Comments a.) ISD #192 Sports & Wellness Center Presentation Due to technical difficulties, this item was presented after #9 City Staff Reports/Discussion and a 5 minute recess. Member Hardt stated that he had requested to have this item added to the agenda because he feels that educational issues can be closely related to economic development. He stated that he wanted to have more information on the proposed facility. Mr. Aaron Tinklenberg from ISD #192 gave a presentation regarding the plans for the ISD #192 Sports and Wellness Center. The Members asked questions regarding what amenities are planned at the new High School and in the proposed Center. Mr. Tinklenberg will forward information regarding enrollment estimates to Staff so that they can refer that information on to the EDA Members. There were several residents in attendance that had questions for the School District Representative as well. These questions were asked during the School District's presentation. Mr. Colin Garvey asked what the estimated construction costs inflation estimates were based on. Mr. Tinklenberg stated that this information had been obtained from the architectural firm designing the building. The architectural firm is DLR Group. Mr. Dan Mingo asked ifit was previously estimated that the Sports Plex would be operating at a $300,000-$600,000 deficit for the fist two years. Mr. Tinklenberg stated that the original estimates were originally closer to $324,000 in operating costs. Mr. Leon Orr stated that the information that had been submitted to the Department of Education stated that the cost for operating a 50 yard pool is approximately $893,000 a year to operate. Mr. Jeff Thelen stated that the $325,000 loss was based on estimated revenue of EDA Minutes March 26, 2007 Page 2 . $400,000 from membership dues. He would like to know if the potential of loss of that membership money from existing area fitness clubs had been considered with respect to economic impact. Mr. Tinklenberg stated that the facilities are not being proposed to provide a membership opportunity but a membership opportunity exists. Mr. Leon Orr stated that the information submitted to the Department of Education did indicate $425,000 in membership revenues. He also stated that the figures that had been estimated for the individual tax burden to homeowners can only be relied upon for the first two years. He asked how much the tax burden would increase if the facility operated at a $500,000 deficit each year. Mr. Tinklenberg stated that he would have to obtain that information. Mr. Orr also stated that he fears that the operating deficit could affect the quality of education if the voters turn down an operating referendum at a later date. The residents in attendance had the following comments to make after the completion of the presentation: Mr. Dan Mingo, 24 Spruce Street, asked if any of the sports in the Farmington area would stop if this facility is not built. He thinks that the EDA and City Council should consider that when considering the impact to other businesses. Many other businesses will be affected by the competition for memberships. The placement of the Sports Plex increases the problem of losing shoppers to our northern neighbors. He stated that economic development is about small . businesses being successful. Member McKnight asked Mr. Mingo ifhe had any recommendations for how to keep shoppers from always going north to shop. Mr. Mingo stated that it is a really difficult task to change people's habits and nothing that has been tried so far has been very successful. Mr. Leon Orr, 19161 Echo Lane, stated that he feels that the market study should only be done at a time when it can be used immediately. He stated that he admired the fact that Mr. Tinklenberg explained what the plans for the High School included without the Sports Plex. He stated his study of the other amenities included in the school that are non-athletic, (less administrative areas that are neither academic nor athletic) shows that there is a ratio for indoor areas of 40% athletic and 60% academic. He has a concern for the two sheets of ice that are proposed for the Sports Plex based on the lack of use at the City's Schmitz-Maki Arena and he feels that the City Arena will potentially close if they lose the groups that have been using that facility to the Sports Plex. Mr. Colin Garvey, 22098 Canton Court, stated that he would like to see the EDA Members consider the facts. He stated that in 2003 there was a study done for the Spruce Street Area, Vermillion River Crossings. ill 2004 there was no additional MUSA recommended for the western side ofthe City. This information influenced the placement of the New City Hall building. He said that there is ample room in the downtown area for the proposed Sports facility and the New . High School. The proposed location for the High School and Sports Plex will . . . EDA Minutes March 26, 2007 Page 3 have a negative impact on local businesses. He stated that it is not too late for the School District to reconsider the site location for the Sports Plex. Mr. Jeff Thelen, 616 Lower Heritage Way, stated the EDA has historically used grant money and tax incentives to focus on preserving the Downtown Area. He said that the placement for the Sports Plex will take away from the Downtown Area. He thinks that there should be more collaboration between the City and the School District to build this facility in an area that would be better for everyone. He feels that perhaps the County and the Fair Grounds might want to become involved. 5. Consent Agenda a.) Bills b.) February 26, 2007 Minutes MOTION by Starkman, second by Flaherty to approve the consent agenda. APIF, MOTION CARRIED. 6. Public Hearings None 7. Unfinished Business a.) Monthly Budget Details Information received. b.) Monthly Progress Report - Exchange Bank The work on the remodeling of the Exchange Bank Building is currently behind schedule by about 5 months. Staffwill schedule a walk through for the next regular meeting. Chair Arey asked if the fence around the fire escape is tall enough. Staff will look into what the original fence height requirement was. Staffwill invite the owner's of the building to the next EDA meeting to give an update on the work status. c.) EDA's Advertising Sign Letter The EDA Members received information regarding the schedule for 2007. There will potentially be one new advertiser this year. d.) Final Draft Economic Development Strategy & Evaluation Form The EDA Members received the final Economic Development Strategy created by the ICMA Peer Team. The Members were asked to fill out and return the ICMA's evaluation form. The Members reviewed the schedule of activities that has been created for the process. 8. New Business a.) EDA Owned Advertising Sign EDA Minutes March 26, 2007 Page 4 . The Downtown Advertising Sign is no longer illuminated. City Staff has been unable to repair the sign. Staff would like to obtain an estimate for the repair of the sign. The Members felt that they would like to see the sign repaired. b.) Market Study & Consultant Fee Proposals Staffhas obtained a proposal from the Maus Group for a market study and a possible consulting agreement. City Administrator Herlofsky stated that he would like to City Staff complete as much of the work for the market study as possible. There can be modification to the amount of hours included in the consulting arrangement to reduce costs. Member Flaherty stated that she feels that some of the responsibilities that are included in the consulting agreement may be able to be performed by the City Attorney. Member McKnight asked what the market study that was done in 2003 has been used for. He is concerned that the study be utilized enough to justify the expense. He also stated that he thinks that the work flow seems to be continuing to be completed effectively by current staff. Chair Arey asked what the potential time frame would be for needing to have a market study completed. Member Hardt stated that he thinks that the information would need to be available by June at the latest. The Members agreed that they do want to have a market study done and would like staff to obtain estimates from other sources. Member Fogarty . stated that she feels that the market study should not be completed until after the vote on the Sports and Wellness Center referendum in May 2007. The Members would like to look at RFP's at the end of May. Staff will create an RPF. The schedule of activities will be adjusted to allow for the change in the market study timing. c.) Community Development Director Job Description The duties that were previously the responsibility of the Community Development Director have been distributed by the department staff. Member Starkman stated that he feels that he would not be in favor of accepting the current consulting agreement and he would like to see as much ofthe work as possible performed by City Staff. Member Hardt expressed concern regarding staff s ability to meet the goals outlined in the current Economic Development Plan timetable. Char Arey stated that he feels that we need to begin the process of filling the vacant position. Member Fogarty stated that she feels that there may need to be major changes to the position that include more emphasis on economic development. Member Flaherty and Member McKnight both stated that the EDA's role is not to recommend staffing changes and they indicated that staff is currently meeting their needs. d.) Commercial/IndustriallResidential Permit Activity Information received. . . . . EDA Minutes March 26, 2007 Page 5 e.) Comprehensive Plan Update The current schedule for the Comprehensive Plan Update Process was distributed. f.) Realtor's Forum The Members received information regarding The City of Farmington hosting a Realtor's Forum. Due to the seating capacity necessary, there is an unresolved issue regarding where the forum could potentially be located. There was discussion with Mr. Aaron Tin.klenberg from ISD #192 regarding holding the forum at the Farmington High School's Little Theater. Staff will work with Mr. Tinklenberg to potentially coordinate scheduling the event at that location. g.) Downtown Business Association Invite City Staffwas invited to a meeting of the Farmington Downtown Business Association. The Association has submitted a list of questions regarding upcoming projects that they would like to have Staff address. The meeting will be Apri13rd at 5:30pm. 9. City Staff Reports/Discussion 10. Adjourn MOTION by Hardt, second by Flaherty to adjourn at 9:04 p.m. APIF, MOTION CARRIED. Respectfull submitted, /~~--~---_--? --2.\ . .~/ G--- ____) . 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Gl .51ii]g2j'll> .a ~ :ii .!!! ~ <(E 0:::;; I- c.oONOa.n T'""LO.............1l) l.l)Q)mOM ...,."c:t''l;tLOlJ) it'" III '0 Gl c:= Cl. Cl. )( ::I W/h ~ .S: 0. N a> ci ~ .. 0. o on ~ .... <1) 0. .. I"- ..... CD ~ i, .... <1) o .. C\i ~ t 8. .. '" :z. ~ o ::E ti w 8 ~ '" "0 ~ o ~ :I: ./:. o ~ .. E 0. S! .. > ~2- .!:!O g ~ 8~ !!J"- <C .. ~g ""bj '" ~ en ID ~ .... o o .. M .. .. CJ C II ii m '0 c ::I LL .... OJ 15 I- . . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECf: McVicker Lot Contract for Private Development DATE: April 23, 2007 INTRODUCfION Mr. Heinen is approaching default of the First Amendment to Contract for Private Development regarding the McVicker parcel. DISCUSSION The Contract timeline states that Mr. Heinen shall submit a site plan for the McVicker parcel to the EDA by April 30th, commencement of construction May 30th and completion of most improvements on or before November 30,2007. RECOMMENDATION Direct staff to send written notice to Mr. Heinen indicating that he is approaching default of his contract and to schedule a meeting to resolve these issues. Respectfully Submitted, l~{(;~ Tina Hansmeier Economic Development Specialist . . . 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: Riste Building Update DATE: April 23, 2007 INTRODUCTION The EDA acquired the Riste property (209 Oak Street) in 2006 with CDBG funds. The reason for acquiring the property was to demolition the dilapidated building located on the site. DISCUSSION Staff recently met with WOLD Architects to discuss the Riste Building demolition project. Currently, WOLD is in the process of drafting demolition specifications for the project. At this time, it is anticipated that a draft of specifications will be ready for review in July 2007. The City cannot enter into any contract that commits CDBG funding until after the CDA receives the federal release of funds. Although the grant year officially begins July 1, 2007, the CDA sometimes does not receive the release of funds until later in July. With this in mind, we need to plan our contract execution accordingly as the CDA will be unable to reimburse any 2007 CDBG funds to the City until a Subrecipient Agreement is signed. The CDA has indicated that Subrecipient Agreements should be distributed in late July or early August 2007. RECOMMENDATION This item is for information only at this time. Respectfully Submitted, ~ ~Jcu~n~ Tina Hansmeier Economic Development Specialist . . . 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: Downtown Business Group DATE: March 26, 2007 City staff attended the Downtown Business Group meeting that was held on Tuesday, April 3, 2007. Several questions were raised at that time. Attached is the list of questions that were posed along with the appropriate answers. This list has been delivered to the President of the Downtown Business Group. April 4, 2007 Questions/Comments from Downtown Business Meeting regarding.... . Elm Street 1. Can/will the city put the citywide flyer in the Farmington Independent at the start of construction? . The citywide flyer will be in the April 19th issue of the Farmington Independent. This issue will be mailed FREE to all Farmington & Hampton residents and PO boxes as part of the Farmington Independent & Rosemount Town Pages SUBSCRIPTION DRIVES!! . The flyer will be an insert in Thisweek News the week of April 23rd. . The flyer will be mailed citywide the week of April 30th. 2. How will the project be phased? Is it going to be bid one way or two ways? The project will not be phased per se, however, the contractor will not be allowed to work west of the tracks until after Rambling River Days. The exact location of where the project will begin will be up to the contractor who is awarded the project. The project will be bid 1 (one) way. 3. Who are the business owners that are part of the communication group? It was mentioned that maybe it should be the President and Vice-President of the Downtown Business Group. As of right now it is not firmed up. No one identified specifically; however, there has been interest from a few business owners. City staff will follow-up shortly to determine who will be a part of the communication group. . 3. Are there any incentives/penalties for the construction project to be done by a certain time? The contractor will have 120 working days to get the project completed. If the contractor exceeds 120 working days, they will be charged liquidated damages for each day above and beyond 120 days. 4. Would water to downtown businesses need to be shut off for any reason during construction? There could be times when businesses could temporarily be without water. Businesses will be notified accordingly. City Hall 1. Where will construction workers park during construction of City Hall? Workers will park in a manner that will not have a severe impact on parking availability for nearby business customers. 2. What will be done with the old City Hall building? This is still being discussed. 3. Will the City keep one lane of Spruce Street open at all times during the project to maintain access to downtown? Addressed on page 3 of the Elm Street Reconstruction Handbook - Utility connections to the New City Hall may cause Spruce Street to close periodically but only for briefperiods of time. . April 4, 2007 . McVicker Lot The telephone pole behind the Steakhouse is rotted out. Someone needs to take a look at before McVicker lot construction begins. Contact was made wI an Xcel Energy representative. It was indicated to staff that an Xcellineman will be directed to take a look at the pole in question and make an assessment of it. Miscellaneous Can the City reprogram the downtown clock with new daylight savings info? The downtown clock is maintained by the Lion's Club. Jeremy Pire is checking with them to see who reprograms it and when that will be done. Snow removal on downtown sidewalks: Snow is currently being brushed off the sidewalk ends and crosswalks. But, the brush is picked up and the vehicle drives over the snow packing it down to get to the other end of the sidewalk. Instead of picking up the brush. could the worker keep it down just to maintain a cleared walk? There were some new staff members this year who didn't understand how the Downtown snow removal was to be handled. They have been instructed to leave the brush down and this should not be a problem again next year. . Bike racks in downtown? Downtown Businesses are having problems with skateboarders/bikers running into customers. The Engineering Division is researching if there are any appropriate locations for bike racks. Once this information is available, it will be forwarded to the Downtown Business Group. Recycle bins for downtown businesses? Recycling pick up for downtown businesses is an optional service and is provided by Dick's Sanitation. Please contact Dick's Sanitation directly for pricing options (952-469-5161). If there are additional questions about this service please contact Lena Larson at 651-463-1622. Can the City open up access from Oak Street to the Second Street parking lot? This is still being discussed. . . . . 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: Lee Smick, AICP City Planner SUBJECf: Comprehensive Plan Update DATE: April 23, 2007 INTRODUCfION Staff is currently working on the land use planning and action plan portions of the 2030 Comprehensive Plan Update. DISCUSSION Staff met with the Planning Commission on March 20, 2007 and on April 9, 2007 at a joint City Council/Planning Commission meeting to discuss the proposed land use for the plan. At the meeting, it was determined that the major focal point of the 2030 Comprehensive Plan will be the addition of commercial and industrial land uses in the community. Staff is also preparing updates to the policies from the 2020 Comprehensive Plan and providing action steps to meet the updated policies in order to incorporate them into the 2030 plan. ACfION REQUESTED Information only. Respectfull ~iCk' ~CP City Planner . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Support Technician SUBJECT: Twin Cities Community Capital Fund DATE: April 23, 2007 INTRODUCTION Staff recently attended an informational meeting regarding the Twin Cities Community Capital Fund (TCCCF). DISCUSSION The Twin Cities Community Capital Fund is a nonprofit fund developed to work in conjunction with commercial lenders to meet the financing needs of borrowers. The TCCCF is similar to the MN Community Capital Fund but focuses on the seven county Twin Cities Metropolitan Area rather than greater Minnesota. Communities have the option of becoming members of the fund by making an initial deposit. In turn, the Community is then able to originate loans up to ten times the initial deposit amount. There is a maximum loan amount of $2,000,000, but no limit on the number ofloans originated. Farmington is not currently a member of the fund, but due to the contribution made by Dakota County Capital, any borrower choosing a location within Dakota County is eligible to apply for this funding. The maximum amount that Farmington borrowers would be able to apply for is $1,250,000 (ten times the amount of Dakota County Capital's deposit). Regardless of whether or not The City of Farmington ever chooses to become a member of this fund, it is important to be aware that commercial borrowers in our community can apply for this type of funding. As Staff continues to develop a Business Resources page for the City website, information on The Twin Cities Community Capital Fund will be an excellent addition. I have attached information that compares the TCCCF to traditional Small Business Administration 504 funding for your information. ACTION REQUESTED This item is for information only. R;:;~:;~ ~ Dargis, Administrative Support Technician Twin Cities Community Capital Fund . Comparison with SBA 504 Loan Program ../ Multi-tenant projects are eligible for TCCCF loans; SBA requires at least 51 % borrower occupancy for the purchase of real estate, and 66% occupancy for new construction. ../ TCCCF loans have no prepayment penalties; SBA imposes prepayment penalties during the first 10 years of the loan. ../ Both nonprofit and for-profit corporations are eligible borrowers under TCCCF; only for-profit business enterprises are eligible for SBA financing. ../ TCCCF loan maximum is $2 million for any kind of business or nonprofit financing; SBA has $1.5 million maximum, except for manufacturing loans that may qualify for up to a $4 million loan. ../ TCCCF loans have no eligibility restrictions based on business size, revenues or profits; SBA borrowers are ineligible if they have a net worth over $7 million, and . annual net profits of more than $2.5 million for the 2 years preceding their loan application. ../ TCCCF loans offer more flexibility in terms of the percentage of the total project financing participation between the bank and TCCCF; under the SBA 504 program, the bank is required to finance 50% of the total project costs. ../ TCCCF can provide up to 90% financing on special use buildings. Under the SBA program, the financing fonnula for a start-up business in a special use building is 50% bank I 30% SBA I 20% equity. If either a start-up business or a special use building, then financing split is 50% bank / 35% SBA / 15% equity ../ All projects costs are eligible uses of TCCCF loan funds; SBA 504 loans camlot be used to finance working capital or inventory. ../ Project eligibility is not limited by meeting job creation criteria under TCCCF; SBA borrowers must demonstrate that at least one job is created for each $50,000 in loan amount. ../ Interest rates on TCCCF loans can be negotiated and reduced if the originating member wants to offer below market / subsidized financing as an economic development incentive for certain kinds of businesses and/or in targeted development . areas; SBA rates are fixed based upon monthly national debenture sales and are non- negotiable. . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Support Technician SUBJECf: School and Conference DATE: April 23, 2007 INTRODUCTION Staff will be attending the Upper Midwest Basic Economic Development Course offered by University of Minnesota Center for Economic Development. DISCUSSION The course focuses on a variety of economic development topics including: Business Retention and Expansion, Strategic Planning, Marketing and Economic Development Finance. The curriculum is accredited by the International Economic Development Council and fulfills one of the prerequisites for obtaining Economic Developer Certification. Attached is further information regarding the topics to be covered. The course will be held in Duluth on July 16-20,2007. The cost of the course for the two attendees including registration, mileage, lodging and meals is $1855. ACfION REQUESTED Approve attendance for Tina Hansmeier and Lisa Dargis at the Upper Midwest Economic Development Course on July 16-20, 2007. Respectf9). Submitted, /"1 ., " } . ~ Lisa Dargis, Adminis~~iv~UPPort Technician Upper Midwest Basic Economic Development Course Duluth, MN July 16-20, 2007 Mileage ($.485 per mile) $155.20 Approx. 160 mi. one way Course Registration ($600 each) $1,200.00 Lodging & Meals (Estimated based on $81 per night discounted room rate) $500.00 $1,855.20 . . . 'University of Minnesota Duluth Center for Economic Development offers the Basic Economic Develop... Page 10f2 , University of Minnesota Duluth e:- '1 l.:~ "C';,;: j.,' ,~;::.~J, "':'i.)",'" _. .., ,~. ....t ........... " I.~_I... '..;1............ J..;.~ :1 )I':i1TJ:)~1:!.:L(i"{T Consulting Programs Small Business Development Center (SBDC) 21st Century Arrowhead Initiative NRRI Business Group Student to Business Initiative Business Incubator Client Success Stories Workshops & Events ~siness & omputer orkshops Joel Labovitz Entreprenuerial Success Awards Upper Midwest Basic Economic Development Course Register Online Resources &. Services Locations Newsletter Focus Group Facilities Room Rentals Resource library Website Planning . registration I search I about CED I contact us I locations Upper Midwest Basic Economic Development Course July 16-20, 2007 . Join Us in Duluth July 16 - 20, 2007! Join us in Duluth during the peak summer tourism season . for a truly unique economic development educational program: The Basic Economic Development Course I N I Ht?'<:\ I !P;>o..\1 f('O\;n\HC [11VnOl".\iNT (BEDC) 1~(~1. NC! l. View the 2006 Daily Agenda The Upper Midwest Economic Development Course is a comprehensive educational experience on the theory and practice of economic development fundamentals and is accredited by the International Economic Development Council (IEDC). It fulfills one of the prerequisites for those who wish to take the Certified Economic Developer (CEcD) Examiniation. Join some of the nation's most knowledgeable and respected finance and economic development leaders, network with colleagues, and enjoy all Duluth has to offer! The Basic Economic Development Course is designed for persons in positions related to economic development, including : . Economic Development Professionals . Public officials or staff engaged in economic development . Members of local development organizations The Basic Economic Development Course covers : . Business Retention and Expansion . Strategic Planning . Marketing/Attraction . Economic Development Finance . Small Business and Entrepreneurship Development . Community/Neighborhood Development . Real Estate Development and Reuse . Workforce Development . Managing Economic Development Organizations Schedule for 2006 Course: View the Daily Agenda http://www.umdced.com/bedc/index.html 4/18/2007 University of Minnesota Duluth Center for Economic Development offers the Basic Economic Develop... Page 2 of~ , For more information email bedc@umdced.com Cost for the course: $600 per participant. . Register to Attend the 2007 Upper Midwest BEDC Scholarships available: Croonquist Scholarship from Minnesota Business Finance Corporation Economic Developm~nt Association of Minnesota (EDAM) 1000 Westgate Drive, Ste. 252 St. Paul, MN 55114 Telephone 651-290-6296 Fax 651-290-2266 Hotel Accommodations: Call the Holiday Inn at 218-722-1202 or 800-477-7089. Tell them that you are part of the UMD Center for Economic Development Course to receive the special rate. @ 2007 Center for Economic Development University of Minnesota Privacy Statement The University of Minnesota is an equal opportunity educator and employer. Last modified on 04/17/07 09:41 AM 218-726-7298 I Toll free: 888-387.4 ced@umdced.com I Fax: 218-72 11 East Superior Street, Sui 0 Duluth, MN 55802 . htto://www.umdced.comlbedc/index.html 4/18/2007 . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Support Technician SUBJECf: EDA Sign Update DATE: April 23, 2007 INTRODUCfION Staff has arranged repair of the Downtown Sign. A local business owner would like to buy the City of Farmington's Liquor Store sign panel. DISCUSSION The estimate for repair of the downtown sign is approximately $290 (there was also roughly $125 in diagnostic charges). An electrician contracted through Arrow Sign will be coming the week of April 23rd to complete the repairs. Two local business owners are attempting to obtain used sign panels so that they may begin to utilize the Downtown Sign advertising space. Another local business, Hometown, is willing to sell their panel. Per Finance Director Robin Roland, the sign panel for the Municipal Liquor Store is no longer being used and may be sold as well. Per Ms. Roland's request, staff is seeking the EDA's authorization to sell the panel because it was originally purchased with EDA funds. The panel will be sold for an amount equal to that of the Hometown's price to ensure equal treatment of both interested parties. ACTION REQUESTED Authorize sale of the EDA owned sign panel for $100. . - "- ~~~::dm~~Upport Techuician Proposal No. Bill To City of Farmington Address 325 Oak Street 4226 . 13735 Aberdeen Street NE Ham Lake. MN 55304 Phone (763) 755-8873 Fax 1763) 755-1473 Toll Free (800) 621-9231 Farmington. MN 55024 Contact Lisa Dargiss Phone 651-463-1813 Fax 651-463-1611 Job Location City of Farmington Address 2nd and Elm 04120/07 8ecrrical diagnosis 1.Shr @ $82.SOfhr. ProviCle electrical repair to repair Sign. $123.75 $290.00 REVISED . Respectfully submitted All malerial i6 guaranteed 10 be at. l!;pecified. and Ih.. above 10 be in ac.c:ordance wilh ,he drawing andlor epeeifice~on$ ~\II:1>"'ill.e(J. All wOik. is 10 ue compJeI9d in a professional manner. ell)' permilri, Stamped EnginMred Drawings required by Ihe City and final eleclrical conn~C1ion~ 3re NOr jl1Cludca in the price Of IhiS I)r()l)OSal. NOTE: Tnis l>f0P05" ""1 be wlflld...WII If n~1 accepted w;lflil1 3(1 dlJ'f$. Worlc witlfIO/ btJrjn until down pilyment of 75" is Il!ceived. CiIy sppro"'Sl 01 pemlil Imp ...title~ Ilceeptane~ sre ~e~/J. Ally #~~ (Q (~ ,60vt SI>fCJfI"fjons iII~oMng ."Ira cosl:ii will bor 8lCecur.d only upon wnlllffl ord9ni. allCl wl/l beco/l'le an e.lfs cll"'9l: jll _ilion 10 Ill.. Dtoo... prop<>>al /0 bo paid by /Ir<l purcho....r. In th.. .....,.n' 0/.. ~.."h..1 Gon.....". by the purc:n..=Cl', AITDW ""3Jgn~ wrn Oc enlll/oalO dtlG"'dr~' (....~ ir.. coul! (>mr.""ct;nrJ. All "rJ"'..",enl.s ~.... ~n6nrJMIl uf>"II ""tit..., .r.J;irl.n/:< or d.1"y,' wIoir;h "... wond l>.... COA'",I. P,,(C/I~6('r /6 Ie C8rry I,/? lom8oo and oJl>cr ru:cc==''Y i/lstlllJllce tI/IOn tile .00>1&. wo/l(. WOIf<III11' c~l11lltIlsation and pu/)/jc liability insrJr.lncll aT'8 r;af7ied by A/'ItIW DeSigns lor Ihe abov& wot/1. "M 081snee is aIle upon irrsla/l ana Of /Jelivery Ol~, ~ IlIlIlCIle(1 dct;/JIfIOi7I foI' AntlIor "'Il/'J'lllty, Fin" ~ymonl due upon inst..llfuion. Acceptance of Proposal The above ptiO!l$, specifications, and Ci)ndi!iOI'l$ are salisfactory and <lite heteby accepled. You are authorized to do the work as specified. Paymenl will be made as outlined above. . Customer Signature Date Th~"k': Fnr IpH-inn lie' O!:JIVI!>> vnlll Z d 9l8998lll9 'ON/ZO:Ol 'lS/SO:Ol LOOZ OZ V (I~:I) N81S MOH~~ WOH:l . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Support Technician SUBJECT: Farmington Housing Market Update DATE: April 23, 2007 INTRODUCfION Please see the attached information regarding residential housing market activity for The City of Farmington. DISCUSSION The Southern Twin Cities Association of REAL TO RS@ has provided statistical information tracking conditions in the local housing market. Information has also been provided for the entire Twin Cities Metro Region for comparison. This month's report is in a new format and provides graphical representations of the activity in 2006 and 2007. ACfION REQUESTED This item is for information only. R..e. ",~~SUb:itted, -R~..~ Lisa Dargis, Admi~rative Support Technician .. SOUTHERN TWIN CITIES ~~ CtJ ASSOCIATION OF REALTORS~ . Farmington Housing Market Update March 2007 Greetings, Welcome to the third installment of a new monthly newsletter from the Government Affairs Department of the Southern Twin Cities Association of REAL TORS@. You've been chosen to receive this letter because of your important role in local government in Farmington. Here, you'll find up-to-date housing information for Farmington, provided at our pleasure, with the intent of giving you a clearer picture of the current conditions in the local housing market. This information should be helpful and relevant to your discussions about housing, growth and transportation. This month's edition features a new and improved format. On the following pages you will find new data, trends and charts that should provide you with a more thorough understanding of the Farmington real estate market. We invite and appreciate your input on this new format and initiative. +++++++++++++ Through the first quarter of 2007, buyer activity in the Twin Cities market as a whole continued to decline relative to previous years. First quarter home sales in Farmington were behind last year by 18.9 percent, with 90 closed sales in 2007 . compared to 111 in 2006. In March, there were 35 compared to 62 for March 2006. It's a similar story in the entire Twin Cities region, with closed sales down 14.9 percent year to date and 22.7 percent down comparing March of this year to March of 2006. Analysts will point to any number of phenomena to explain the continued buyer cool-down-tighter lending standards following the subprime mortgage fallout, longer buyer house-hunting adventures due to all the inventory, the continued effect of an extraordinarily frigid climate this spring. But the simple reality is that this corrective market pause is going to take some time to work through. We're not far removed from several consecutive years of unmitigated market expansion. First quarter new listings in Farmington were behind last year by 4.6 percent, posting 335 units as compared to 351 units the year previous. First quarter new listings in the entire region were down 1.2 percent as builders and sellers adapt to a changing market by restricting their output. At the end of March, Farmington saw 247 single-family detached units available on the market, with 80 townhouse or condominium units on the market as well. Inventory should grow as spring and summer activity heats up the market. Year to date, homes in Farmington have taken an average of 157 days to reach purchase agreement, while homes in the entire Twin Cities market have taken 148 days to do the same. Farmington had an average first quarter sales price of $236,174, behind last year by 0.5 percent. The Twin Cities metropolitan area as a whole saw an average sales price of $271,797 for the first quarter, which is statistically even with the first quarter of 2006. MAAR expects price growth for the entire region to be near 1 percent in 2007. The Percent of Original List Price Received at Sale was behind last year in Farmington, going from 97.1% in the . first quarter of 2006 to 95.6% in 2007. . . . Homes in the Twin Cities region have not been this affordable in two years. Smart consumers will look to take action in this market. Twin Cities Region March Year to Date ~ Percent Percent 13-County Metropolitan Area I 2006 2007 Change 2006 2007 Change New Listings 10,265 10,821 -5.1 27,503 21,846 -1.2 Closed Sales I 3,056 3,952 -22.7 7,883 9,258 -14.9 Average Sales Price I $271,368 $267,765 1.3 $271,797 $272,040 -0.1 I Percent of Original List Price Received at Sale I 95.6% 97.8% -2.2 NA NA NA Average Days on Market Until Sale I NA 148 NA NA 146 NA Total Current Inventory I 26,182 29,285 11.9 I Single-Family Detached Inventory _-.-L 17,237 19,776 14.7 More detailed information follows on the Farmington real estate market within this document. Thanks, Angelique McDonald Government Affairs Director Southern Twin Cities Association of REAL TORS@ 651.452.6611 amcdonald@stcar.com To unsubscribe to this newsletter, please respond to amcdonald@stcar.com and place the word "REMOVER in the subject line. [more] Local Market Updates A free research tool from the Southern Twin Cities Association of REALTORS@) _ SOUTHERN TWIN CITIES. ~~ [fj ASSOCIATION OF REALTORSs New_:a~=~~~~~-_._-+-;;o;-~~7-~-:::r ;:~; ~~~1 Closed Sales I 62 35 -43.5% 111 90 -18.9% Average Sales Price I $254,587 $227,055 -10.8% \ $237,346 $236,174 -0.5% Percent of Original List Price Received at Sale* 97.9% 97.3% -0.5% I 97.1% 95.6% -1.5% . I Average Days on Market Until Sale** NA 151 NA 11_ NA. 157 N A . I Total Current Inventory*** NA 327 NA -- -- -- I ~ingle-Family Detached Inventory NA 247 NA --=_____--=-____~J *Does not account for list prices from any previOus listing contracts **Clty market time figures were first avaUable in August 2006, aa:ounts for previOus liSting contracts ***City inventory figures were first tracked in December 2006 Activity-Most Recent Month Activity-Year to Date 125 351 1:1 New Listings 335 112 1:1 New Listings l:Iel 2006 2007 2006 2007 . Average Sales Price $254,587 Ratio of Sales Price to Original List Price 1:12006 1:12007 $237,346 $236,174 97.9% 97.3% 1:12006 1:12007 97.1% 95.6"10 March Year to Date March Year to Date 151 157 Current Inventory 247 Average Days on Market Until Sale 80 March Year to Date Single-Family Detached Townhouse-Condo Some of the figures referenced in this report are for only one month worth of activity. As such, they can sometimes look extreme due . to the small sample size involved. For broader historical market information, please feel free to contact us. @ 2007 SOuthern Twin Gties Assodation of REAL TOR5@ based upon data reported to the Regional Multiple Usting SelVice, Inc. Brought to you by the unique data. sharing traditions of the REALTOR@ community. . . . Page 1 of 1 Tina Hansmeier From: Peter Herlofsky Sent: Tuesday, April 17, 2007 12:22 PM To: Tina Hansmeier Subject: FW: Study Please discuss with me. Peter J. Herlofsky, Jr. City Administrator City of Farmington, Minnesota 325 Oak Street Farmington, MN 55024 Phone: 651 463 1801 E-mail: pherlofsky@ci.farmington.mn.us From: Bruce Maus [mailto:bmaus@mausgroup.net] Sent: Tuesday, April!7, 2007 10:44 AM To: Peter Herlofsky Cc: 'James B. McComb' Subject: Study Peter Attached please find a revised agreement reflecting the project divided into 3 parts. I think it is self explanatory . You can select each individual component at the price noted or if they are combined in one study as first proposed there is some economy in meeting time. We are still working on the additional task referred to in my cover letter and hope to send that to you soon. Please call Jim or I if you have questions. See you at 7 PM on 4-23-07 at City Hall. Bruce Maus Group Bruce Maus Site Selection and Project Management Maus Group 1345 Corporate Center Curve Eagan, MN 55121 tel: (651) 379-5118 fax: (651) 686-6113 mobile: (651) 214-9833 bmaus@mausgroup.net www.mausgroup.net Add me to your address book... Want a signature like this? 4/17/2007 Future Demand for Real Estate Development . Farmington, Minnesota April 16, 2007 In response to your request, we have prepared separate work programs and budgets to conduct market analysis to identify future demand for retail, office, industrial space, and residential development in Farmington. Separating these market research tasks into individual proposals results in an increase in overall cost due to duplicate meetings, design consulting, and study area evaluation. The proposed costs are shown below. Retail OfficelIndustrial Residential Total $ 33,700 31,300 16,700 $ 81,700 This compares to a cost of $74,500 in the previous proposal. If two market analyses are chosen, costs can be reduced from those shown above by combining some meetings and work tasks. QUALIFICATIONS AND EXPERIENCE Maus Group, LLC is a real estate consulting firm specializing in project management, . community development, site selection and financing. Bruce Maus has had extensive experience over the past 30 years working in community and economic development. . Bruce Maus began his career working in city government with responsibilities in community and economic development. From there he moved to the Port Authority in St. Paul and was responsible for financing over $100 million in new projects in the early 1980's. Between 1984 and 1992, he was the General Manager for VenStar, a commercial real estate development company with properties in four cities in Minnesota. Over the past 14 years, Mr. Maus has advised companies in developing over 6 million square feet of new development in 10 states. In addition, Mr. Maus has served as a consultant to cities regarding the development of industrial parks and downtown redevelopment. McComb Group, Ltd. is a full-service retail and real estate consulting firm specializing in market research and financial feasibility. The firm has extensive experience in the retail industry and has conducted market research for retail stores and shopping centers of all types including regional malls, community centers and specialty centers. McComb Group, Ltd. has a team that is qualified to conduct the research described in this proposal. McComb Group's professional staff associated with this engagement includes the following: . James B. McComb, President, founded the predecessor of McComb Group in 1974 . following six years as a member of the corporate staff with Dayton Hudson Corporation. . His experiences at Dayton Hudson and daily association with merchants and shopping center developers provided the impetus for McComb Group's approach to shopping center and retail market research and financial feasibility, which includes strong elements of design and merchandise sensitivities. The firm's approach to shopping center research and marketing has undergone continuous development and refinement over the past 20 years. . William A. Gorton, Executive Associate, has over 25 years experience developing supermarkets and retail shopping centers, representing supermarket chains as well as prominent independent supermarket owners. Mr. Gorton provides advice and assistance related to real estate development, leasing and contract negotiations, business acquisitions, project management, sales forecasting, site evaluation and market analysis, financing, capital planning, financial forecasting, business planning, strategy development, business development and the marketing of programs and services. Mr. Gorton has provided these services while employed Fairway Foods, Inc., subsidiary of Holiday Stationstores, Inc.; Kohl's Food Stores, Inc., subsidiary of the Great Atlantic & Pacific Tea Company; SuperValu, Inc.; Loblaw's, Inc.; and Stearns Bank N.A. St. Cloud, MN. He received a JD from William Mitchell College of Law and is a member of the Minnesota State Bar Association. . . Fred Katter, Executive Associate, has 30 years of real estate development experience including single family, multi-family and senior housing residential including for-rent and for-sale, office, industrial, and retail stores and shopping centers. He is experienced with site selection and acquisition, architectural selection and design supervision, general contractor selection and contract negotiations with subcontractors, construction supervision, environmental remediation, and construction, mortgage and equity financing. During his career, Mr. Katter has developed the following: . 4,077 housing units in Minnesota and Illinois . 600 apartment unit in Minnesota . Conversion of 434 rental apartments to condominiums . 360,000 square feet of industrial space in Minnesota and Florida . 300,000 square feet of commercial/office space in Minnesota . 725 hotel rooms in Minnesota and Iowa . As a consultant, directed work outs for developments with over 2,789 units in California, Arizona, Colorado, Oklahoma, New Mexico, Texas, Florida, New York, Michigan, Indiana, Illinois, Minnesota and Michigan. . Served as Owner's Representative for developments of 534,000 square feet of supermarket space and 179 units of condominiums. . . Linda Oie, Associate, conducts market research, demographic and consumer analysis for client engagements. Ms. Oie manages the firm's geographic information systems (GIS) and demographic databases using a variety of computer platforms and proprietary software. April 16, 2007 Page 2 Prior to joining McComb Group, Ltd., Ms. Oie was employed as Marketplace . Information Manager at SuperValu, Inc. Her responsibilities included conducting strategic consumer-based analysis of existing and prospective supermarkets, profiling SuperValu customers, and delineating trade areas for existing and proposed stores. . Susan Nache, Consultant, performs market research, demographic analysis, and consumer research tasks. Ms. Nache conducts consumer research analysis and cross- tabulation on McComb Group's survey processing software; and is familiar with software programs used by McComb Group, Ltd. for financial feasibility and statistical analysis. Mr. McComb will be responsible for managing and directing the overall research program and will participate directly in findings and conclusions. Individual work tasks will be assigned to personnel within the firm based on qualifications and experience. REPORT PURPOSE This proposal was prepared with the understanding that the results of our work will be used by the client to update the comprehensive plan and may be used for that purpose. Our report will be prepared for that purpose and will be subject to the following qualifications: . Our analysis will not ascertain the legal and regulatory requirements applicable to this project, including zoning, other state and local government regulations, permits and licenses. No effort will be made to determine the possible effect on the proposed project of present or future federal, state or local legislation, or any environmental or ecological . matters. . Our report and analysis will be based on estimates, assumptions and other information developed from research of the market, knowledge of the industry and discussions with the client. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur; therefore, actual results achieved will vary from the analysis. . Our analysis will not evaluate management's effectiveness or be responsible for future marketing efforts and other management actions upon which actual results are dependent. . Our report will be intended solely for the purpose described above and should not be used for any other purpose without our prior written permission. Permission for other use of the report will be granted only upon meeting company standards for the proposed use. These qualifications will be included in our final report. If the report is used for purposes other than specified above, we reserve the right to review the materials for proper use of our work. . April 16,2007 Page 3 . . . RETAIL MARKET ANALYSIS Farmington is in the process of updating its comprehensive plan and desires a market driven analysis of future demand for retail, food service and services development potential through 2030. The objectives ofthis work program are summarized below. . Identify existing and potential retail areas in Farmington, delineate trade areas and estimate future trade area population and households for 2010,2015,2020,2025 and 2030. . Identify Farmington's strengths and weaknesses from a retailers' perspective. . Identify shopping areas that are competitive with Farmington retail areas and those that are likely to evolve in the future. . Prepare a market driven estimate of residential development in Farmington retail trade areas from 2007 to 2030. . Estimate demand for retail, food service, service and office servIce uses In Farmington for 2010,2015,2020,2025 and 2030. . Identify potential for new retail areas in Farmington. . Identify the type of shopping environments that the projected retail, service and office service uses are likely to desire. . Identify the types of shopping areas and retail stores that are supportable In Farmington and the likely development timing based on market demand. The work program described below is designed to fulfill these objectives and identify demand for retail, food services, and services in Farmington. WORK PROGRAM The work program outlined below is designed to fulfill the above objectives. Retail market analysis will include estimating future residential growth potential. Work tasks are summarized below: . Study Area Evaluation Existing retail areas in Farmington will be evaluated to determine their suitability for future development. Factors to be evaluated include, but are not limited to: location, ingress and egress, access, visibility, current and future traffic counts, and relationship to adj acent uses. Potential locations for new retail locations will be identified. The budget assumes that city staff will identify retail buildings and tenant mix In Farmington, their square footage, and year built. April 16,2007 Page 4 . Residential Growth Trends Comprehensive plans for adjacent communities will be evaluated to determine residential and commercial development potential. Past growth trends in the south growth corridor will be evaluated to determine residential growth trends in Farmington and surrounding communities. This analysis will be used to prepare market driven estimates of household growth in Farmington's trade areas for 2010,2015,2020,2025 and 2030. . . Competitive Shopping Areas Shopping areas competitive with Farmington commercial areas will be identified and evaluated to determine competitive impacts on future retail development. Principal competitors will be identified and evaluated for tenant mix, retail GLA, and anchor stores. Future developments and redevelopments in the study area will be identified to the extent possible. The budget assumes that city staff will identify retail tenants in competitive retail areas in Lakeville, Hampton, Cannon Falls, and Randolph. . Business Interviews Owners and managers of businesses in Farmington will be interviewed to obtain their observations on retail trends, competitive pressures, where their customers live, strengths and weaknesses, and other information pertinent to the study. . . Customer Survey Retail businesses in downtown Farmington will be asked to participate in a survey of their customers to determine where they live and work, and why they shop at that business. As contemplated, employees of each store will conduct the survey as customers pay for their goods or services. The budget assumes 35 to 40 business participants. Each merchant participant will be provided with survey results for their business. This information will be used to help identify the primary trade area for the downtown Farmington commercial area and the amount of inflow patronage. The budget assumes that city staff will arrange for distribution of survey forms and instructions, and collection of completed survey instruments. . Developer/Broker Interviews Developers and brokers interested in retail locations in Farmington will be interviewed to determine their development plans and their ideas of the type of businesses or development that is suitable for the area. . Trade Areas The primary trade areas for downtown and other Farmington retail areas will be delineated based on arterial road patters, drive times, and McComb Group experience. The economy of the trade area will be analyzed to identify and quantify those factors that . April 16, 2007 Page 5 . . . generate support for retail and service establishments. Factors to be evaluated include, but are not limited to: population, households, building permits, and household income. Trade area household growth trends will be evaluated to determine residential growth potential for target years of 2010, 2015, 2020, 2025 and 2030. Retail and service purchasing power of trade area households will be estimated. . Retail Development Potential Future retail development potential for Farmington retail areas will be estimated taking into consideration competitive impacts, trade area demographics, and trade area purchasing power and estimated market share. Future retail and service sales potential for Farmington will be estimated by business type based on purchasing power, competitive shopping centers, and current retail trends. Estimates of retail, service and office service space supportable by sales potential will be prepared for target years of201O, 2015, 2020, 2025 and 2030. The type of shopping center environments suitable for the potential uses will be identified, as well as suitable locations. . Development Strategy The estimated future demand for retail uses in Farmington will be compared with the available supply of developable land and its location. Developable sites will be evaluated for retail use. Development areas will be prioritized as to their suitability for retail development. The objective of this task is to compare estimated future absorption with land available for retail development and estimate likely land absorption for the potential uses. . Design Consulting Consultant will be available to meet with City staff to review development potential as it relates to specific areas in Farmington and discuss how and where to accommodate future growth potential. The budget provides for four hours of meeting time for Jim McComb. The results of our work will be documented in a final report designed to meet client needs. The report will contain appropriate graphics and explanations of our principal findings, conclusions and recommendations. MEETINGS Four meetings, excluding design consulting, are planned during the course of the evaluation and include the following: . Start-Up Meeting will be held at the beginning of the engagement to finalize research objectives and obtain client-provided information. . Client Meeting to discuss preliminary results of market research tasks. . Report Meeting to discuss results of work tasks and findings. This meeting will cover all aspects of the research program. April 16, 2007 Page 6 . City Council Meeting to report results of findings and recommendations. This meeting will cover all aspects ofthe research program. . The budget provides for four client meetings as described above. Additional meetings will be billed at our normal hourly rates plus expenses. BUDGET The budget for the retail market analysis and work products described in this proposal is shown below. Professional Services Study Area Evaluation Residential Growth Trends Competitive Shopping Areas Business Interviews Customer Slli-vey Developer/Broker Interviews Trade Areas Retail Development Potential Development Strategy Design Consulting Report Preparation Meetings Total Professional Services Bud2et $ 2,200 4,300 3,200 1,700 3,500 1,600 3,300 6,500 1,600 1,100 800 3.900 $ 33,700 . Expenses (Estimated) Mileage Demographics Computer Report Production Reproduction Miscellaneous Total Expenses $ 300 900 150 1,000 250 200 $ 2.800 TOTAL BUDGET $ 36,500 The professional fees for the services outlined in this proposal total $33,700 and will be performed at a price not-to-exceed that amount. Expenses, estimated at $2,800, are to be reimbursed based on actual cost. The budget is based on the amount of time required to perform the work tasks and our normal hourly billing rates of $260 for principals, $190 for executive associates, $140 for senior associates, $100 for associates, and $75-$100 for consultants. Company policy requires a retainer of approximately one-half the estimated budget for the project or $18,000. The retainer will be applied to the final invoice as a credit for billing of . April 16, 2007 Page 7 . professional services and expenses. Invoices for professional services and expenses will be rendered at mid-month and month-end as our work progresses. Standard billing terms are net ten days. A finance charge of 1.5 percent will be charged on all unpaid balances outstanding more than 30 days. ACCEPTANCE PROCEDURES To indicate acceptance of the proposal, please sign a copy of the proposal and return it to us together with your check for the retainer as authorization to proceed with this engagement. We appreciate the opportunity to submit this proposal and look forward to hearing from you soon. If you have any questions concerning the proposal, please call me at (612) 339-7000. Accepted By: Bruce A. Maus Maus Group, LLC Peter J. Herlofsky, Jr. City Administrator . Date: . April 16, 2007 Page 8 OFFICE AND INDUSTRIAL MARKET ANALYSIS . Farmington is in the process of updating its comprehensive plan and desires a market driven analysis of future demand for office and industrial development potential through 2030. The objectives of this work program are summarized below. . Identify existing and future areas where office and/or industrial development would be appropriate. . Identify office and industrial locations that are competitive with Farmington and those that are likely to evolve in the future. . Determine Farmington's historic absorption of office and industrial space in the south office/industrial submarket. . Identify Farmington's strengths and weaknesses from the perspective of a commercial office and/or industrial developer or tenant. . Identify appropriate locations for office and/or industrial development in Farmington. . Determine the long-term demand and space absorption for office/industrial development in Farmington for target years of2010, 2015, 2020, 2025 and 2030. . Determine the long-term demand and absorption rate for Farmington's current office/industrial land supply. . Participate in meetings with city staff and other consultants working on the comprehensive plan to communicate results of residential, retail and office/industrial market demand. . The work program described below is designed to fulfill these objectives and identify demand for office/industrial space development for future years. WORK PROGRAM The work program outlined below is designed to fulfill the above objectives. Specific work tasks are described below. . Study Area Evaluation Existing and potential business park and industrial locations in Farmington will be evaluated to determine their suitability for development. Factors to be evaluated include, but are not limited to: location, ingress and egress, access, visibility, current and future traffic counts, and relationship to adjacent uses. The budget assumes that city staff will identify office and industrial buildings in Farmington, their square footage, and year built. . April 16, 2007 Page 9 . . DeveloperlBroker Interviews Developers and brokers interested in office/industrial locations in Farmington will be interviewed to determine their development plans and their ideas of the type of businesses or development that is suitable for the area. . Office/Industrial Demand Market analysis will be conducted to determine the historic absorption of office, office warehouse, office showroom, industrial and single tenant uses in the south metro area. The portion of that absorption that has been captured in Farmington will be quantified. Estimated future absorption for office, office warehouse, office showroom, industrial, and single tenant space will be estimated for the southwest submarket and Farmington. Future absorption will be analyzed by type of product and location criteria, and compared with potential development areas within Farmington. . . Development Strategy The estimated future demand for office/industrial uses in Farmington will be compared with the available supply of developable land and its location. Developable sites will be evaluated for office/industrial use. Development areas will be prioritized as to their suitability for office/industrial development. Alternative office/industrial development absorption estimates will be prepared for development locations that are suitable for both uses. The objective of this task is to compare estimated future absorption with land available for each type of development and estimate likely land absorption for the potential uses. . Design Consulting Consultant will be available to meet with city staff to review development potential as it relates to specific areas in Farmington and discuss how and where to accommodate future growth potential. The budget provides for eight hours of meeting time for Bruce Maus and Jim McComb. The results of our work will be documented in a final report designed to meet client needs. The report will contain appropriate graphics and explanations of our principal findings, conclusions and recommendations. MEETINGS Four meetings, excluding design consulting, are planned during the course of the evaluation and include the following: . . Start-Up Meeting will be held at the beginning of the engagement to finalize research objectives and obtain client-provided information. . Client Meeting to discuss preliminary results of market research tasks. . Report Meeting to discuss results of work tasks and findings. This meeting will cover all aspects ofthe research program. April 16, 2007 Page 10 . City Council Meeting to report results of findings and recommendations. This meeting . will cover all aspects of the research program. The budget provides for four client meetings as described above. Additional meetings will be billed at our normal hourly rates plus expenses. BUDGET The budget for the office/industrial market analysis and work products described in this proposal is shown below. Professional Services Study Area Evaluation Developer/Broker Interviews Office/Industrial Demand Development Strategy Design Consulting Report Preparation Meetings Total Professional Services Bude:et $ 2,600 2,100 15,300 2,500 2,100 2,000 4,700 $ 31,300 Expenses (Estimated) Mileage Demographics and CoStar Computer Report Production Reproduction Miscellaneous Total Expenses $ 300 1,200 150 1,000 250 200 . $ 3.100 TOTAL BUDGET $ 34,400 The professional fees for the services outlined in this proposal total $31,300 and will be performed at a price not-to-exceed that amount. Expenses, estimated at $3,100, are to be reimbursed based on actual cost. The budget is based on the amount of time required to perform the work tasks and our normal hourly billing rates of $260 for principals, $190 for executive associates, $140 for senior associates, $100 for associates, and $75-$100 for consultants. Company policy requires a retainer of approximately one-half the estimated budget for the project or $17,000. The retainer will be applied to the final invoice as a credit for billing of professional services and expenses. Invoices for professional services and expenses will be rendered at mid-month and month-end as our work progresses. Standard billing terms are net ten days. A finance charge of 1.5 percent will be charged on all unpaid balances outstanding more than 30 days. . April 16, 2007 Page 11 ~ ACCEPTANCE PROCEDURES To indicate acceptance of the proposal, please sign a copy of the proposal and return it to us together with your check for the retainer as authorization to proceed with this engagement. We appreciate the opportunity to submit this proposal and look forward to hearing from you soon. If you have any questions concerning the proposal, please call me at (612) 339-7000. Accepted By: Peter J. Herlofsky, Jr. City Administrator Bruce A. Maus Maus Group, LLC Date: ~ ~ April 16,2007 Page 12 RESIDENTIAL MARKET ANALYSIS . Farmington is in the process of updating its comprehensive plan and desires a market driven analysis of future demand for residential development. The objectives of this engagement are summarized below. . Evaluate historic residential growth trends in Farmington and surrounding communities. . Determine the share of housing that Farmington has captured in the south metropolitan growth corridor. . Prepare a market driven estimate of residential development in Farmington from 2007 to 2030. . Identify the types and mix of housing suitable for development in Farmington. The work program described below is designed to fulfill these objectives and identify demand for residential development for future years. WORK PROGRAM The work program outlined below is designed to fulfill the above objectives. Specific work tasks are described below. . Residential Evaluation Existing and future residential areas in Farmington will be evaluated to determine their suitability for development. Factors to be evaluated include, but are not limited to: location, access, visibility, urban services availability, relationship to adjacent uses, and terrain. . . Residential Growth Trends Past growth trends for single family and multi-family housing in the south growth corridor will be evaluated to determine residential growth trends in Farmington and surrounding communities. This analysis will be used to prepare market driven estimates of Farmington's household growth for 2010,2015,2020,2025 and 2030. . Residential Market Demand Utilizing market driven demand estimates for housing in Farmington described above, market demand for housing types suitable for Farmington will be identified. Housing types to be considered include single family and multi-family. The multi-family analysis will address, but not limited to: detached townhomes, townhouses, row housing, garden apartments, and other types of housing in rental and for sale products. . Development Strategy . April 16,2007 Page 13 . . . The estimated future demand for single family and multi-family housing in Farmington will be compared with the available supply of developable land and its location. Developable sites will be evaluated for residential use. Development areas will be prioritized as to their suitability for residential development. The objective of this task is to compare estimated future absorption with land available for residential development and estimate likely land absorption. . Design Consulting Consultant will be available to meet with City staff to review development potential as it relates to specific areas in Farmington and discuss how and where to accommodate future growth potential. The budget provides for four hours of meeting time for Jim McComb. The results of our work will be documented in a final report designed to meet client needs. The report will contain appropriate graphics and explanations of our principal findings, conclusions and recommendations. MEETINGS Four meetings, excluding design consulting, are planned during the course of the evaluation and include the following: . Start-Up Meeting will be held at the beginning of the engagement to finalize research objectives and obtain client-provided information. . Client Meeting to discuss preliminary results of market research tasks. . Report Meeting to discuss results of work tasks and findings. This meeting will cover all aspects ofthe research program. . City Council Meeting to report results of findings and recommendations. This meeting will cover all aspects of the research program. The budget provides for four client meetings as described above. Additional meetings will be billed at our normal hourly rates plus expenses. BUDGET The budget for the residential market research and work products described in this proposal is shown below. Professional Services Residential Evaluation Residential Growth Trends Residential Market Demand Development Strategy Design Consulting Report Preparation Meetings Total Professional Services Budt!et $ 2,700 4,100 2,700 1,500 1,100 800 3.800 $ 16,700 April 16, 2007 Page 14 Expenses (Estimated) Mileage Demographics Computer Report Production Reproduction Miscellaneous Total Expenses TOTAL BUDGET . $ 200 300 100 750 200 100 $ 1.650 $ 18,350 The professional fees for the services outlined in this proposal total $16,700 and will be performed at a price not-to-exceed that amount. Expenses, estimated at $1,650, are to be reimbursed based on actual cost. The budget is based on the amount of time required to perform the work tasks and our normal hourly billing rates of $260 for principals, $190 for executive associates, $140 for senior associates, $100 for associates, and $75-$100 for consultants. Company policy requires a retainer of approximately one-half the estimated budget for the project or $9,000. The retainer will be applied to the final invoice as a credit for billing of professional services and expenses. Invoices for professional services and expenses will be rendered at mid-month and month-end as our work progresses. Standard billing terms are net ten days. A finance charge of 1.5 percent will be charged OIL/all . unpaid balances outstanding more than 30 days. ACCEPTANCE PROCEDURES To indicate acceptance of the proposal, please sign a copy of the proposal and return it to us together with your check for the retainer as authorization to proceed with this engagement. We appreciate the opportunity to submit this proposal and look forward to hearing from you soon. If you have any questions concerning the proposal, please call me at (612) 339-7000. Accepted By: Peter J. Herlofsky, Jr. City Administrator Bruce A. Maus Maus Group, LLC Date: . April 16, 2007 Page 15