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HomeMy WebLinkAbout07-18-22 CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA July 18, 2022 6:00 PM 1. CALL TO ORDER 2. ROLL CALL 3. APPROVE AGENDA 4. CONSENT AGENDA (a) Meeting Minutes (June 20, 2022 Regular Meeting) (b) Monthly Financial Statement S. DISCUSSION ITEMS (a) Review Redevelopment and Property Reinvestment Program Applications 6. DIRECTOR'S REPORT 7. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Meeting Minutes (June 20, 2022 Regular Meeting) DATE: July 18, 2022 INTRODUCTION/DISCUSSION Attached are the draft meeting minutes from the June 20, 2022 Regular EDA Meeting. ACTION REQUESTED Approve the June 20, 2022 Regular EDA Meeting minutes. ATTACHMENTS: Type Description D Exhibit Meeting Minutes (June 20, 2022 Regular Meeting) CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES REGULAR MEETING June 20, 2022 1. CALL TO ORDER The meeting was called to order by EDA Chair Wilson at 6:00 p.m. 2. ROLL CALL Members Present: Bernhjelm,Hoyt,Porter, Lien,Wilson Members Absent: None Staff Present: Lynn Gorski,City Administrator; Samantha DiMaggio,Community Development Director;Kalley Swift,Community Development Specialist Others Present: Kara Hildreth,Journalist 3. APPROVEAGENDA MOTION by Bernhjelm,second by Hoyt to approve the Agenda.APIF,MOTION CARRIED. 4. CONSENT AGENDA a) Meeting Minutes(May 16,2022 Regular Meeting) b) Monthly Financial Statement MOTION by Bernhjelm,second by Porter to approve the consent agenda.APIF,MOTION CARRIED. 5. DISCUSSION ITEMS a) DEED Presentation-Farmington Workforce Overview Director DiMaggio virtually welcomed Neal Young,Director of Economic Analysis at MN Department of Employment and Economic Development(DEED).Mr.Young gave a presentation on workforce for the City of Farmington which included an economic overview,where Farmington residents work,where people who work in Farmington live, our net outflow of workers,and explained which business industries would be good targets to consider attracting into Farmington because of our existing workforce. EDA Members asked Mr.Young about various factors which impact Farmington's workforce and how DEED plans to use data in the future for those who work remotely or hybrid compared to in an office setting.A second DEED presentation about labor market statistics from additional DEED employees is welcomed by the EDA for presentation at a future City Council meeting. 6. ADJOURN MOTION by Hoyt,second by Porter to adjourn at 6:52 p.m. APIF,MOTION CARRIED. Respectfully submitted, Kalley Swift Community Development Specialist Economic Development Authority Minutes Page 1 of 1 Regular Meeting June 20,2022 CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov TO: Economic Development Authority FROM: Samantha DiMaggio- EDA Executive Director SUBJECT: Monthly Financial Statement DATE: July 18, 2022 INTRODUCTION/DISCUSSION Attached is the monthly statement of the EDA. ACTION REQUESTED Acknowledge the monthly financial statement for the EDA and ask any questions you may have. ATTACHMENTS: Type Description D Exhibit Monthly Financial Statement More Robust Financial Report Business Object Account Cumulative 12 Cumulative 12 Cumulative 12 Cumulative 12 Cumulative 12 Cumulative 12 Cumulative 12 Cumulative 112 Unit Account Description Actual Budget Actual Budget Actual Budget Actual Budget 2019 2019 2020 2020 2021 2021 2022 2022 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 197,086.27_ 203,702.91 165,522.75 216,439.94 2000-HRA/ECONOMIC DEVELOPME 1010 (CASH-LGA ASSMNT RELIEF 35,000.00 35,000.00 35,000.00'. 35,000.00 2000-HRA/ECONOMIC DEVELOPME 1011 PREMIUM/DISCOUNT ON INVESTMENT -38.19 -142.41 535.95 0.00 2000-HRA/ECONOMIC DEVELOPME 1095 ACCRUED INTEREST INVESTMENTS 565.86.. 523.28 515.28 0.00 2000-HRA/ECONOMIC DEVELOPME 1305 ACCOUNTS RECEIVABLE 0.00 54,202.17 0.00' 0.00 2000-HRA/ECONOMIC DEVELOPME 1305 :ACCOUNTS RECEIVABLE MANUAL 0.00 -54,202.17 0.00 0.00. 2000-HRA/ECONOMIC DEVELOPME 1353 DUE FROM COUNTY 65,397.70' 54,202.17 0.00'. 0.00 2000-HRA/ECONOMIC DEVELOPME 1505 PREPAID EXPENSES 300.00 0.00 1,365.00 0.00 2000-HRA/ECONOMIC DEVELOPME :2010 ACCOUNTS PAYABLE MANUAL -6,237.92 -62.14 -20.16 0.00 2000-HRA/ECONOMIC DEVELOPME 3510 UNRESERVED FUND BALANCE 299,361.64 -292,073.72 -293,223.81 201,846.92 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS 6,661.47. -2,300.00 -4,390.92 -2,700.00 -3,135.90 -2,100.00 -1,144.78 -2,400.00 2000-HRA/ECONOMIC DEVELOPME 4960 GAIN/LOSS INVEST MKT VALUE -3,772.51 -2,305.52 2,885.48 0.00 2000-HRA/ECONOMIC DEVELOPME 5010 SALES OF ASSETS 0.00 0.00 0.00 0.00 -34,000.00. 0.00 0.00 0.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -50,000.00 -50,000.00 -40,000.00 -40,000.00 -40,000.00 -40,000.00 -25,000.02 -50,000.00 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB -65,397.70 -169,469.33 -162,911.00 -122,312.85 -180,474.00 0.00 -183,465.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 50,128.63 128,629.60 122,761.00- 90,881.27 129,430.00 0.00 134,160.00. 2000-HRA/ECONOMIC DEVELOPME 6152 -FICAIMEDICARE 3,643.60 9,362.38 9,392.00 6,679.37 10,030.00 0.00 10,579.00 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 3,759.73 9,647.15 9,208.00 6,816.11 9,707.00 0.00 10,638.00 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 7,865.74 20,154.17 21,550.00 14,846.30. 9,046.00 0.00 21,465.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 182.17 263.43 790.00 0.00 833.00 2000-HRA/ECONOMIC DEVELOPME 6220 EQUP SUPPLIES&PARTS-DBB 58.08 0.00 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS 85.00 80.00 0.00 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS-DBB 496.36 0.00 0.00 2000-HRA/ECONOMIC DEVELOPME !6401 PROFESSIONAL SERVICES 9,512.50 11,680.00 2,635.00 12,000.00'. 26,575.00 11,650.00 0.00 11,650.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES-DBB 29.04 0.00 0.00 2000-HRA/ECONOMIC DEVELOPME 6403 'LEGAL - 853.00 4,000.00 83.50 2,500.00' 2,287.46 2,000.00 0.00 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 8,317.00 8,317.00 8,767.00 8,767.00 9,472.00' 9,472.00 5,658.00 11,316.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES-DBB 1,800.00 2000-HRA/ECONOMIC DEVELOPME 6412 '..CELLULAR SERVICES-DBB 507.13 348.23 540.00 0.00 540.00 2000-HRA/ECONOMIC DEVELOPME 6422 (ELECTRIC - 207.93 300.00 246.10 300.00' 13.86 300.00 0.00 0.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 142.70 130.00 121.21 130.00'. 542.38 130.00 242.94 550.00 2000-HRA/ECONOMIC DEVELOPME -6450 !OUTSIDE PRINTING 0.00 500.00 0.00 500.00' 4,572.00: 500.00 0.00 500.00 2000-HRA/ECONOMIC DEVELOPME 6455 LEGAL NOTICES 0.00 0.00 91.50 0.00 2000-HRA/ECONOMIC DEVELOPME 6460 .MEMBER DUES&LICENSURE 1,820.00.. 2,500.00 795.00 2,000.00'. 1,250.00 2,000.00 1,790.00 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,526.00 0.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 2,898.45 3,000.00 1,678.71 4,000.00'. 1,637.95 3,500.00 2,284.42 3,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 175.80 1,529.71- 5,000.00 0.00 5,000.00 2000-HRA/ECONOMIC DEVELOPME 6480 MEETING EXPENSE 10.93 167.36 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 391.32 1,000.00 21.28 800.00 410.48 400.00 740.84 400.00 2000-HRA/ECONOMIC DEVELOPME :6492 :ADVERTISING 0.00 3,000.00 0.00 0.00 0.00 2,500.00 0.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIRIMAINTENANCE 0.00 0.00 12.98 0.00' 1,296.00 0.00 0.00 0.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 272.55 247.64 195.00 0.00 250.00 2000-HRA/ECONOMIC DEVELOPME 6550 DEVELOPER PAYMENTS 9,500.00 20,000.00 37,922.98 4,885.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 31,229.00.. 17,000.00 11,113.55 7,733.00'. 5,240.20 8,000.00 5,150.00 8,000.00. 2000-HRA/ECONOMIC DEVELOPME 6950 MACHINERY,EQUIPMENT&TOOLS 27,744.00 0.00 2000-HRA/ECONOMIC DEVELOPME 7140 LEGAL&FISCAL FEES 1,230.50 0.00 2000-HRA/ECONOMIC DEVELOPME 7310 OPERATING TRANSFERS 2,850.00 2,850.00 0.00 0.00' 44,366.78' 0.00 -44,366.78 0.00 Total 2000-HRAIECONOMIC DEVELOPM 0.00 1,977.00 0.00 -3,970.00 0.00'. -17,384.00 0.00 -8,684.00 0.00 1,977.00 0.00 -3,970.00' 0.00 -17,384.00 0.00 -3,684.00 0.00 1,977.00 0.00 -3,970.00 0.00'. -17,384.00' 0.00 -8,684.00 7/13/2022 10:18:59 AM Page 1 of 1 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 r ml O Farmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Review Redevelopment and Property Reinvestment Program Applications DATE: July 18, 2022 INTRODUCTION/DISCUSSION The EDA has allocated funding for the Redevelopment and Property Reinvestment Program for 2022 with the intent of helping spur investment on commercial and industrial properties to foster property improvements, redevelopment growth and increase the productive use of existing infrastructure within the city. Eligible projects focus on property,building,and code improvements which are permanent and anchored to the site. Projects utilizing this grant money must go towards a project which helps redevelop,maintain and/or expand the variety of business use on site. For 2022,the EDA has allocated up to $30,000 of its annual operating budget to fund the Redevelopment and Property Reinvestment Program. Within the program guidelines, it states that the EDA will contribute up to a maximum of 50%of eligible project costs and that grants typically will not exceed $10,000. A completed Redevelopment and Property Reinvestment Program application has been received for the following properties in the following amounts. The totality of the four applications exceeds the available 2022 funding amount,so the EDA should use the scoring system created for this program to make their decisions of approval and denial. • 306-312 Oak Street:$10,000 requested • 216 Oak Street: $10,000 requested • 705 Eighth Street: $7,500 requested • 345 Third Street:$9,240 requested 306-312 Oak Street A Redevelopment and Property Reinvestment Program application has been received for 306-312 Oak Street by property and business owner Holly Hewitt which is the location for Holly's Dance&Mentorship and Edward Jones- Financial Advisor:Jack Gresser. Business(es)at Location: Holly's Dance& Mentorship and Edward Jones- Financial Advisor:Jack Gresser Number of Employees: 10(Holly's Dance)and 2(Edward Jones) Business and Property Owner: Holly Hewitt Site of Redevelopment and Reinvestment Project:306-312 Oak Street Year Building Was Built: 1876 Current Condition of the Building: Fair Business Website: https:Hhollysdanceandmentorship.com/and https://www.edwardjones.com/us- en/fi na ncia I-adviso r/ja ck-gresser Redevelopment and Reinvestment Project(s) Utilizing Grant Dollars:Adding a sprinkler system and supports in the basement.The sprinkler system coverage will run through the entirety of the building including coverage between the dropped ceiling and the trusses above. The system will contain a main drain assembly, pressure sensing mechanism,flow sensing mechanism and a fire department connection. Both projects will add safety and structural security to the building and property. The sprinkler system will allow for additional classes,higher occupancy, more dancers in each class,more employees to accommodate for increase dancers and classes, etc.These are all upgrades and reinvestment into the site which is permanent and will remain on the property if Holly's Dance& Mentorship were to leave. I n addition to the sprinkler system and support beam projects contained within this grant application, Holly Hewitt also received approval of a conditional use permit from the Planning Commission on July 12,2022 to convert the site into a mixed use building by constructing a second story apartment,a second story addition above the existing building for additional dance instruction and event space,and a garage in the rear. Total Project Cost:$34,600 Fa4ade Improvement Grant Dollars Requested:$10,000 Score Card:33/35 216 Oak Street A Redevelopment and Property Reinvestment Program application has been received for 216 Oak Street by property and business owners Steve&Melissa Hobbs which is the location for Sweet Kneads Farmington Bakery. City staff from Administration and Community Development along with elected officials met with the property owners of the bakery throughout the redevelopment and rehabilitation of 216 Oak Street. One of the stressors the property owners faced was the cost to transform the vacant downtown storefront into additional business space. 2022 is the first year the EDA decided to put hard deadlines for grant program application windows and approval. City staff knew the importance and value this redevelopment project would bring to the downtown and that their expansion into the vacant space at 216 Oak Street was a great example of the program's purpose. City staff verified that the projects within the Redevelopment and Property Reinvestment Program application had not begun prior to the application of their grant and we gave them to go-ahead to have their projects begin despite program application review not occurring until July 2022. All projects contained within the application are complete and the bakery expansion is officially open. Business(es)at Location:Sweet Kneads Farmington Bakery Number of Employees: 15 Business and Property Owner:Steve& Melissa Hobbs Site of Redevelopment and Reinvestment Project:216 Oak Street Year Building Was Built: 1915 Current Condition of the Building: Fair Business Website: https://farmingtonbakery.net/ Redevelopment and Reinvestment Project(s) Utilizing Grant Dollars: Building remodel(interior reconfiguration,flooring,egress and ingress upgrades and fire code requirements,etc.),mechanical work, plumbing work(two bathrooms and one water closet),four SAC credits,etc.These are all upgrades and reinvestment into the site which are permanent and will remain on the property if the bakery were to leave. Total Project Cost:$100,000+ Fa§ade Improvement Grant Dollars Requested:$10,000 Score Card:32/35 705 Eighth Street A Redevelopment and Property Reinvestment Program application has been received for 705 Eighth Street by property owner Triton Properties LLC,Sajid(Sam) Haque,which is the location for tenant JG Legend Ink LLC. Business(es)at Location:JG Legend Ink LLC Number of Employees:4(Owner+3 Independent Contractors) Property Owner:Triton Properties LLC,Sajid(Sam) Haque Site of Redevelopment and Reinvestment Project:705 Eighth Street Year Building Was Built: 1982 Current Condition of the Building:Good Redevelopment and Reinvestment Project(s) Utilizing Grant Dollars:ADA wheelchair ramp with handrails and an additional door for the tattoo tenant on the north side of the building. The suite space in the rear of the building is roughly 3'above the surface parking lot with no current steps or ADA acceptable access into the suite. Adding this ADA structure to the property will increase the accessibility of clients and customers for JG Legend I nk and future tenants on-site. The additional door will be ADA compliant in width for passage with aluminum and glass materials. The wheelchair ramp will match the door with slip-resistant grooved aluminum material and a 4" ramp edge protection. These are all upgrades and reinvestment into the site which is permanent and will remain on the property if the tenant or property owner were to leave. Total Project Cost:$15,000 Facade Improvement Grant Dollars Requested:$7,500 Score Card:25/35 345 Third Street A Redevelopment and Property Reinvestment Program application has been received for 345 Third Street by property and business owner Heikkila Properties LLC, Pam Heikkila which is the location for Heikkila Studios. Business(es)at Location: Heikkila Studios Number of Employees: 1 Business and Property Owner: Heikkila Properties LLC, Pam Heikkila Site of Redevelopment and Reinvestment Project:345 Third Street Year Building Was Built: 1877 Current Condition of the Building: Fair Business Website: https://www.heikkilastudios.com/ Redevelopment and Reinvestment Project(s) Utilizing Grant Dollars: Demolition and removal of existing concrete in the alleyway to prevent erosion underneath the stucco due to water coming in.The stucco work was partially funded in 2020 with a Downtown Facade Improvement Grant through the EDA. An additional project includes the replacement of woodwork in the store front. Proposed improvements of the application which will not be considered as a part of this program are the painting of the exterior steps and new awnings on the upper level due to not qualifying as an eligible improvement within this specific program.Those improvements fall under the eligibility of our Facade Improvement Program. Concrete Work:$9,985 Woodwork: $8,495 Total Project Cost:$18,480 Facade Improvement Grant Dollars Requested:$9,240 Score Card:24/35 EDA Discussion and Application Decisions City staff has reviewed the application materials submitted for all four applications along with their scores received. The E DA is requested to do the same. 705 Eighth Street and 345 Third Street have the lowest scores of 25/35 and 24/35. When looking at their scorecards,there are two categories which city staff has identified as being the most important when making the decision of approving vs. denying each application.The first category observed is that 705 Eighth Street is able to check"yes"for the project directly relating to an increase in business productivity,revenue,capacity,or employee size and 345 Third Street is marked as"no"for that category. The second category observed is that 705 Eighth Street is able to check"no"for if they have received an EDA grant previously and 345 Third Street is marked as"yes." 345 Third Street has received both Fagade Improvement Program grants(2022,2021,and 2020)and a Redevelopment and Property Reinvestment grant (2021). Fagade Improvement Program grants issued to 345 Third Street equal$20,126.36 and Redevelopment and Property Reinvestment Grants equal$8,875 for a total of$29,001.36. City staff recommends approval of the following Redevelopment and Property Reinvestment Grant applications as submitted: • 306-312 Oak Street • 216 Oak Street • 705 Eighth Street City staff recommends the denial of the following Redevelopment and Property Reinvestment Grant application due to the breakdown of the scoring criteria received and not enough funds dedicated to the program in 2022: • 345 Third Street For each Redevelopment and Property Reinvestment Program application approved,the E DA will execute a grant agreement with the applicant. A grant agreement has been prepared for each application as a proactive measure for efficient grant execution and project timeliness. Attached,please find the general application, scorecards,and pictures/description for the redevelopment and reinvestment project(s)for 306-312 Oak Street,216 Oak Street,705 Eighth Street,and 345 Third Street. ACTION REQUESTED Review the Redevelopment and Property Reinvestment Program applications and make two motions regarding the EDA's decision. One motion shall include which application(s) are approved and the second motion shall include which application(s) are denied. ATTACHMENTS: Type Description ❑ Exhibit 306-312 Oak St Application ❑ Exhibit 306-312 Oak St Scorecard ❑ Exhibit 306-312 Oak St Proposed Projects ❑ Exhibit 306-312 Oak St Grant Agreement ❑ Exhibit 216 Oak Street Application ❑ Exhibit 216 Oak Street Scorecard ❑ Exhibit 216 Oak Street Before and After ❑ Exhibit 216 Oak Street Grant Agreement ❑ Exhibit 705 8th Street Application ❑ Exhibit 705 8th Street Scorecard ❑ Exhibit 705 8th Street Current Conditions ❑ Exhibit 705 8th Street Proposed Products ❑ Exhibit 705 8th Street Grant Agreement ❑ Exhibit 345 Third Street Application ❑ Exhibit 345 Third Street Scorecard ❑ Exhibit 345 Third Street Current Conditions ❑ Exhibit 345 Third Street Grant Agreement CITY OF 1) 43o Third St., Farmington, MN 55024 FARMINGTON o`- 651-28o-6800 /•" 00 FarmingtonMN.gov Date Submitted:__4P_/ /2022 Redevelopment and Property Reinvestment Program Grant Application SITE ADDRESS FOR PROJECT: 112 Lc 2 Applicant Information NAME: L4 YEAR ESTABLISHED AT THIS LOCATION: CHECK ALL THAT APPLY TO YOU: MINORITY C WQMAN�> VETERAN IMMIGRANT APPLIC NT'S BUSINESS NAME(IF APPLICABLE)- NUMBER OF EMPLOYEES: EMAIL: It i C4CJ 77 PHONE: 1Z S `�1S?2 ZO Property Information PROPERTY OWNER(S): Ho 4u) 4= t7alu"tz' e Laalia b<>-)) AD ITIONAL BUSINESSES AT THIS LOCATION EMPLOYEE SIZE(IF MULTI-TENANT): Q 2 YEAR BUILT: X ' � HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA GRANT? YES NO WHAT IS THE CURRENT CONDITION OF THE BUILDING/PROPERTY: Good(Suitable for continued use with normal maintenance) Satisfactory(Requires some updating and restoration to represent"good"conditions) JZFair(Requires updating and restoration-conditions may have an impact on building operations) Poor(Requires significant updating and restoration-conditions impact building operations) Unsatisfactory(Requires major restoration or demolition due to unsafe/structurally unsound conditions) Project Information PROPOSED PROJECT DESCRIPTI N L2-� /Ull 'V-woyoam i Ir-4 W.-), t AJ-wd SZ � APA, A I F } 1 TOTAL PROPOSED PROJECT COST:$� FUNDING INFORMATION: This program funds up to a maximum amount of 50%of eligible project costs(minimum 1:1 funding match).Grants typically will not exceed$10,000. REQUESTED GRANT AMOUNT: $ I U , (30 Short Answer If applicable to your project,please outline how the project provides the potential to create or retain jobs as well as increase business productivity,revenue,capacity and/or efficiency. _ l V -) i 'Q a�— Application Requirements Photo(s) of current areas to be redeveloped and reinvested in. ✓ Rendering and/or plan drawings showing proposed project. _ ' A minimum of two contractor bids and/or proposals with a breakdown of itemized costs. 1/ Proof of insurance on the building and/or property to be improved. Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to assess your eligibility for financial assistance.The City will not be able to process your application without this Information.The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the Information that you are providing to the City is public or private.If financial assistance is provided for the project,the information submitted with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. i/We have read the above statement and I/we agree to supply the information to the City with full knowledge of the matters contained in this notice. 1/We certify that all statements on this application are true and correct to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification. I/We have read the Redevelopment and Property Reinvestment Program Guidelines and will abide by the rules and regulations set forth in that document. 1/We understand that if approved I/we will enter into a grant agreement which further outlines my responsibilities for the project. I/We authorize City staff or other authorized representative of the City the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. 1/We authorize program representatives the right to access the property for the purpose of taking photographs before and after the redevelopment and reinvestment project to record progress of the project 1/We understand that I/we are responsible for obtaining appropriate permits if needed.I/we understand that all aspects of project management will be my responsibility. 1/We understand that in the case of improvements that do not require a city-issued building permit,the applicant must submit the name and state license number of the contractor completing the work prior to the project occurring and agree to an inspection of the work by a city building official. . 1/We further understand that l/we will make the final selection of the improvements to be made with the grant funds and that the contract for improvements will be solely between me and the contractor(s).The City will not be liable for the inadequate performance of the contractor(s). Applica 71signature Property Owner Signature (If tenant is the applicant) IZ OaK Stree t- Office Use Only-Please leave blank Scoring System 1 2 3 4 5 Rationale Older buildings typically need reinvestment or <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years redevelopment to reach full business capacity Age of Building or capabilities. This criteria aims to support (Built Since 1992) (Built 1991-1962) (Built 1961-1932) (Built 1931-1902) (Built Before 1902) business in older buildings in the community as well as business retention efforts. Statisically,smaller businesses have less cash 5 or Fewer buffer than larger businesses.This criteria Business Size 51+Employees 26-50 Employees 11-25 Employees 1 6-10 Employees Employees aims to stablize the ability for all businesses to complete reinvestment or redevelopment projects. Total Cost of the The higher the ratio of private investment vs. Project <$10,000 $10,001-$20,000 $20,001-$30,000 $30,001-$50,000FPoor 1+ public grant dollar investment,the higher the scoringwill be. Current Conditions Good:Suitable for Satisfactory:Requires : Buildings and properties which need of the Building continued use with some restoration to versel redevelopment or reinvestment projects to represent"good" ing and achieve full business potential will receive and/or Property normal maintenance. condition. rations higher scoring. in some capacity. Minority,Women, Statisically,M/W/V/I businesses have less cash Veteran and/or No M/W/V/1 Ownership is buffer than other businesses.This criteria aims Immigrant Ownership M/W/V/l to stabilize the ability for all businesses to Ownership complete pro'ects. Does the Project Directly Relate To Redevelopment and reinvestment grants are An Increase t intended to help a business or property owner Business No - - Yes increase business productivity,revenue, Productivity, capacity or employee size.if the project is able to accomplish that objecitve,the scoring will Revenue,Capacity reflect that or Employee Size? Have You Received Redevelopment and reinvestment grants intend to be accessible to all businesses. an EDA Grant Yes - - No Preference will be given to those businesses Previously? who have not previously received EDA grants. 33 /35 Points r w. r� e•k SM..J� � merit Y �'•� _ — Ap 10,701p— s i f z y Ji.. :yj+ 1 v , i a Piz• ,.t w. -�. yr , a .T .,l;�y,,f l •1�� �. .•cn_ c :. v, tiro� s7''•�4°i�QK�.�•Qi�j'�1'���.�tiSY`'(���'^C'��.��`L i - F 1 l i _ City of Farmington EDA Redevelopment and Property Reinvestment Program Grant Agreement This Redevelopment and Property Reinvestment Grant Agreement(hereinafter referred to as "Agreement")is made and entered into this day of July,2022 by and between Holly Hewitt, Holly's Dance&Mentorship at 306-312 Oak Street,Farmington,Minnesota (hereinafter referred to as"Grantee") and the City of Farmington Economic Development Authority(EDA),a public body corporate and politic,having its principal offices at 430 Third Street,Farmington,Minnesota (hereinafter referred to as"Grantor"). WHEREAS,the Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the EDA as grants. WHEREAS,the Grantor has established a Redevelopment and Property Reinvestment Program (hereinafter referred to as "Program")to help spur investment on commercial and industrial properties which foster property improvements,redevelopment growth,and increase the productive use of existing infrastructure within the city;and WHEREAS,the Grantee has applied for Redevelopment and Property Reinvestment Program funds for eligible redevelopment and reinvestment improvements at their property located at 306-312 Oak Street with the tax pin 147700020066 (hereinafter referred to as"Property");and WHEREAS,the Grantor has reviewed the Grantee's application and determined that the proposed redevelopment and reinvestment improvement project meets the requirements of the Program; and WHEREAS,the Grantee desires to participate in the Program,on the terms and conditions set forth below. NOW,THEREFORE,in consideration of the agreements hereinafter contained,the parties agree as follows: A-Property Improvements: 1. The Grantee agrees and acknowledges that the approved redevelopment and reinvestment improvements (hereinafter referred to as"Improvements")which will be reimbursed are for the project(s)outlined in the Grantee's original application,and are as follows: a. Sprinkler System b. Support Beams in the Basement 2. If the Grantee wishes to revise the Improvements receiving grant funding through the Program,the Grantee must submit the revised plans to city staff to be reviewed by the EDA. a. The EDA will review the revised plans at the next earliest Regular EDA Meeting. 3. The Grantee agrees to apply for and receive all necessary permits and approvals from the city and from any other governing authority with jurisdiction over the Property related to the construction of the Improvements prior to work beginning. 1 4. The Grantee agrees to complete the Improvements in accordance with all applicable laws, rules and regulation,including but not limited to,Farmington City Code,MN Building Code, Fire Code,etc. 5. The Grantee shall select the means,method,and manner of performing the Agreement requirements and Improvements. B-Improvement Timeline: 1. The Agreement will be terminated 120 days from the date of the Agreement on page 1 if construction work has not yet begun. 2. The Improvements shall be completed in a timely manner and all grant funds must be distributed by or before June 30,2023. a. The Agreement may be extended once,with the length of the extension to be determined on a case-by-case basis.If an extension is necessary,a written extension request shall be made to the Executive Director of the EDA. C-Payment of Program Funds 1. Grant funds will be paid on a reimbursement basis only after all Improvements have been completed according to the authorized scope of work and have been accepted by the Grantor.The cost of complete construction of the Improvements,including out-of-pocket costs for required permitting and approvals,shall be defined as the"Improvement Costs." 2. The Grantee shall be responsible for making the initial payments to all contractors and others involved in the construction and permitting of the Improvements. 3. Upon final completion of the Improvements,the Grantee shall make a request for reimbursement of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000).The request for reimbursement shall include: a. Proof of final inspection for the Improvements (if applicable). b. After photos of the property reflecting the Improvements made. c. A dated copy of the final itemized invoice(s) that comprised the Improvement Costs or a sworn construction statement. d. Dated proof of payment of said invoice(s)that comprised the Improvement Costs. e. Such other documentation as the EDA staff may require in its reasonable discretion to verify the amount of and payment of the Improvement Costs by the Grantee. f. The EDA will have ten(10) business days following the submittal of a complete request for reimbursement to submit in writing explanation of the EDA's reason for denial of repayment or to process the issuance of the check to the Grantee in the amount of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000). 4. The Grantee agrees to use the proceeds of the grant reimbursement solely for the Improvements. 2 D-Liability and Indemnification 1. Neither the city nor the EDA shall in any event be liable to the Grantee,nor to any of its agents,employees,contractors,guests or invitees,for damages arising from bodily injury, death,property damage,sickness,disease,or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. 2. The Grantee shall indemnify,save,defend and hold harmless the city and the EDA from any claims,liability,causes of action,damages,losses,and costs including attorney fees resulting directly or indirectly from any act or use of Program funds including the defect or claimed defect of any of the Improvements or any such manner arising from this Agreement. 3. This section shall survive the termination,expiration or cancellation of this Agreement. E-Written Notice 1. When written notice is required or permitted due to the Improvements,Agreement and/or Program,it shall be addressed hereunder to the follow addresses. Written Notice to the Grantor: Written Notice to the Grantee: Farmington EDA Holly's Dance&Mentorship Attn: Executive Director Attn: Holly Hewitt 430 Third Street 306 Oak Street Farmington,MN SS024 Farmington,MN SS024 F-Agreement 1. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreement(s)between the parties regarding the subject matter contained herein.There are no verbal agreements that change this Agreement. 2. The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the EDA. 3. Any alterations,variations,modifications,amendments or waivers of the provisions of the Agreement shall only be valid when they have been reduced to writing and signed by the authorized representatives of the parties. G-Cancellation 1. Prior to the disbursement of funds,this Agreement may be cancelled by the EDA or Grantee at any time,with or without cause,upon thirty(30) days written notice to the other party. 2. If the Grantee fails to perform any of the provisions of this Agreement including providing false,misleading or incomplete information in documents submitted to the City,fails to use grant funds exclusively for the Improvement Costs,or otherwise breaches or fails to comply with any of the terms of this Agreement,it shall be in default. 3. The EDA may act to protect its interest,including requiring the return of all or part of the funds already disbursed. a. If all or part of the funds are required to be repaid back to the EDA,it shall constitute default and the Grantee has thirty(30) days from the date of written 3 notice to pay the EDA.In the event of untimely repayment by the Grantee of the demand following a declaration of default by the EDA,the EDA may thereafter assign this Agreement to the City for the City to assess the unpaid amounts upon the Property and certify the same to the county auditor for collection in like manner as property taxes upon the Property.The Grantee expressly waives any right granted by statute or otherwise to object or appeal the assignment and assessment upon the Property. H-Records:Availability.Access and Audit Clause 1. Pursuant to Minn.Stat.§16C.05,subd. 5,the Grantee agrees that the EDA,City,the State Auditor or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary,shall have access to and the right to examine,audit,excerpt and transcribe any books,documents,papers,records,etc. which are pertinent to the accounting practices and procedures of the Grantee which specifically involve the transactions relating to this Agreement.The Grantee agrees to maintain these records for a minimum of six years from the date of Agreement fulfillment or termination of this Agreement as outlined by Minn.Stat.§16C.05,subd.5. I-Force Majeure 1. The parties shall be excused from performance under the Agreement while and to the extent that either of them are unable to perform for any cause beyond its reasonable control.Such causes shall include,but not be restricted to,fire,storm,flood,earthquake, explosion,war,total or partial failure of transportation or delivery of materials and supplies,interruption of utilities and any act of government or military authority.In the event either party is rendered unable wholly or in part by force majeure to carry out its obligations under this Agreement then the party affected by force majeure shall give written notice with explanation to the other party immediately. J-Conflict of Interest 1. No elected official, officer,or employee of the City or EDA shall during his or her tenure or employment and for one year thereafter,have any interest,direct or indirect,in this Agreement or the proceeds thereof. K-Minnesota Laws Govern 1. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. 4 IN WITNESS WHEREOF,the parties hereto have hereby executed this agreement as of the year and date above on page 1. GRANTOR: GRANTEE: CITY OF FARMINGTON EDA HOLLY HEWITT 430 THIRD STREET 306-312 OAK STREET FARMINGTON,MN 55024 FARMINGTON,MN 55024 BY: BY: Steve Wilson,Chair Holly Hewitt,Property Owner DATE: DATE: BY: Samantha DiMaggio,Executive Director DATE: 5 o T})ird St . Foirrunc�ton, MN 5,024 FARMINGTON ,``�••nr��� C:r�=i�indt:�nMN �iov Date Submitted: 3 / 18 /2022 Redevelopment and Property Reinvestment Program Grant Application SITE ADDRESS FOR PROJECT: 216 Oak Street,Farmington MN 55024 Applicant Information NAME: Melissa Hobbs YEAR ESTABLISHED AT THIS LOCATION: 2018 CHECK ALL THAT APPLY TO YOU: MINORITY :W:OMAN VETERAN IMMIGRANT APPLICANT'S BUSINESS NAME (IF APPLICABLE): Sweet Kneads Farmington Bakery NUMBER OF EMPLOYEES: 15 EMAIL: fariningtonbakery@gmaii.com PHONE: 651-463-2242 Property Information PROPERTY OWNER(S): Steve Hobbs ADDITIONAL BUSINESSES AT THIS LOCATION&EMPLOYEE SIZE (IF MULTI-TENANT): YEAR BUILT: 1915 HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA GRANT? YES ONO WHAT IS THE CURRENT CONDITION OF THE BUILDING/PROPERTY: Good (Suitable for continued use with normal maintenance) Satisfactory(Requires some updating and restoration to represent"good"conditions) x Fair(Requires updating and restoration-conditions may have an impact on building operations) Poor(Requires significant updating and restoration- conditions impact building operations) Unsatisfactory(Requires major restoration or demolition due to unsafe/structurally unsound conditions) Project Information PROPOSED PROJECT DESCRIPTION We are remodeling the 216 building to expand our bakery. We are doing new ceilings walls doors floors. TOTAL PROPOSED PROJECT COST:$ 100,000 FUNDING INFORMATION: This program funds up to a maximum amount of 50% of eligible project costs (minimum 1:1 funding match). Grants typically will not exceed$10,000. REQUESTED GRANT AMOUNT:$ 10,000 C NA1 W Q Can am-) Short Answer If applicable to your project,please outline how the project provides the potential to create or retain jobs as well as increase business productivity, revenue,capacity and/or efficiency. Opening a larger building will get us more room to sell products,more room for customers to move around and shop and we want to expand our product lines to make more revenue and grow the business Application Requirements x Photos) of current areas to be redeveloped and reinvested in. x Rendering and/or plan drawings showing proposed project x A minimum of two contractor bids and/or proposals with a breakdown of itemized costs. x Proof of insurance on the building and/or property to be improved. Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to assess your eligibility for financial assistance.The City will not be able to process your application without this information.The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the Information that you are providing to the City is public or private.If financial assistance is provided for the project,the information submitted with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I/We have read the above statement and I/we agree to supply the information to the City with full knowledge of the matters contained in this notice. I/We certify that all statements on this application are true and correct to the best of my/our knowledge. ]/We understand that any intentional misstatements will be grounds for disqualification. I/We have read the Redevelopment and Property Reinvestment Program Guidelines and will abide by the rules and regulations set forth in that document. I/We understand that if approved I/we will enter into a grant agreement which further outlines my responsibilities for the project I/We authorize City staff or other authorized representative of the City the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. I/We authorize program representatives the right to access the property for the purpose of taking photographs before and after the redevelopment and reinvestment project to record progress of the project I/We understand that I/we are responsible for obtaining appropriate permits if needed.I/we understand that all aspects of project management will be my responsibility. 1/We understand that in the case of improvements that do not require a city-issued building permit,the applicant must submit the name and state license number of the contractor completing the work prior to the project occurring and agree to an inspection of the work by a city building official. I/We further understand that I/we will make the final selection of the improvements to be made with the grant funds and that the contract for improvements will be solely between me and the contractor(s).The ity W1 not be liable for the inadequate performance of the contractor(s). µ r4 Applicant Signature Property Owner Signature (If tenant is the applicant) 21 0 aK � �� Office Use Only-Please leave blank Scoring System 1 2 3 4 5 Rationale Older buildings typically need reinvestment or <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years redevelopment to reach full business capacity Age of Building or capabilities. This criteria aims to support (Built Since 1992) (Built 1991-1962) (Built 1961-1932) ((Built 1931-1902) (Built Before 1902) business in older buildings in the community as well as business retention efforts. Statisically,smaller businesses have less cash 5 or Fewer buffer than larger businesses.This criteria Business Size 51+Employees 26-50 Employees 11-25 Employees 6-10 Employees aims to stablize the ability for all businesses to Employees complete reinvestment or redevelopment projects. Total Cost of the The higher the ratio of private investment vs. Project <$10,000 $10,001420,000 $20,001430,000 $30,001-$50,000 $50,001+ public grant dollar investment,the higher the scoring will be. Fair.Poor.or Current Conditions Good:Suitable for Satisfactory:Requires Unsatisfactory: Buildings and properties which need of the Building continued use with some restoration to onditions adversely redevelopment or reinvestment projects to represent"good" mpact building and achieve full business potential will receive and/or Property normal maintenance. condition. usiness operations higher scoring. in some caDacitv. Minority,Women, Statisically,M/W/V/I businesses have less cash Veteran and/or No M/W/V/I Ownership is buffer than other businesses.This criteria aims Immigrant Ownership M/W/V/I to stabilize the ability for all businesses to Ownership complete projects. Does the Project Directly Relate To Redevelopment and reinvestment grants are An Increase In intended to help a business or property owner increase business productivity,revenue, Business No - - Yes Productivity, capacity or employee size.If the project is able Revenue,Capacity to accomplish that objecitve,the scoring will or Employee Size? reflect that. Have You Received Redevelopment and reinvestment grants an EDA Grant Yes - - - No intend to be accessible to all businesses. Preference will be given to those businesses Previously? who have not previously received EDA grants. 3 2 /35 Points 216 Oak Street: Before 77 a.:. A W i AMMMW- �_ v _� ' ' � T Man AM AV 1 r� Ilk Am F . ;s M �t� q s s.s4, +r. 30 , E City of Farmington EDA Redevelopment and Property Reinvestment Program Grant Agreement This Redevelopment and Property Reinvestment Grant Agreement(hereinafter referred to as "Agreement") is made and entered into this day of July,2022 by and between Steve&Melissa Hobbs,Sweet Kneads Farmington Bakery at 216 Oak Street, Farmington, Minnesota (hereinafter referred to as"Grantee")and the City of Farmington Economic Development Authority(EDA),a public body corporate and politic,having its principal offices at 430 Third Street,Farmington, Minnesota (hereinafter referred to as"Grantor"). WHEREAS,the Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the EDA as grants. WHEREAS,the Grantor has established a Redevelopment and Property Reinvestment Program (hereinafter referred to as "Program") to help spur investment on commercial and industrial properties which foster property improvements,redevelopment growth,and increase the productive use of existing infrastructure within the city;and WHEREAS,the Grantee has applied for Redevelopment and Property Reinvestment Program funds for eligible redevelopment and reinvestment improvements at their property located at 216 Oak Street with the tax pin 147700019022 (hereinafter referred to as"Property"); and WHEREAS,the Grantor has reviewed the Grantee's application and determined that the redevelopment and reinvestment improvement projects meet the requirements of the Program; and WHEREAS,the Grantee desires to participate in the Program,on the terms and conditions set forth below. NOW,THEREFORE,in consideration of the agreements hereinafter contained,the parties agree as follows: A-Property Improvements: 1. The Grantee agrees and acknowledges that the approved redevelopment and reinvestment improvements (hereinafter referred to as"Improvements")which are qualified for reimbursement are for the project(s) outlined in the Grantee's original application and already completed.No additional projects can be added to this grant agreement.The eligible projects have received all required building permits,received the appropriate inspections and are as follows: a. Building remodel b. Mechanical work c. Plumbing work d. SAC credits 2. The Grantee agrees that all Improvements were done in accordance with all applicable laws, rules and regulation,including but not limited to,Farmington City Code,MN Building Code, Fire Code,etc. 1 B-Grant Timeline: 1. The Agreement will be terminated within 120 days from the date of the Agreement on page 1 if proof of Redevelopment and Property Reinvestment Program ineligibility or disqualification is found. 2. All grant funds must be distributed with 120 days from the date of the Agreement on page 1. C-Payment of Program Funds 1. Grant funds will be paid on a reimbursement basis only after all Improvements have been completed according to the authorized scope of work and have been accepted by the Grantor.The cost of complete construction of the Improvements,including out-of-pocket costs for required permitting and approvals,shall be defined as the"Improvement Costs." 2. The Grantee shall be responsible for making the initial payments to all contractors and others involved in the construction and permitting of the Improvements. 3. Upon final completion of the Improvements,the Grantee shall make a request for reimbursement of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000).The request for reimbursement shall include: a. Proof of final inspection for the Improvements (if applicable). b. After photos of the property reflecting the Improvements made. c. A dated copy of the final itemized invoice(s)that comprised the Improvement Costs or a sworn construction statement. d. Dated proof of payment of said invoice(s) that comprised the Improvement Costs. e. Such other documentation as the EDA staff may require in its reasonable discretion to verify the amount of and payment of the Improvement Costs by the Grantee. f. The EDA will have ten(10)business days following the submittal of a complete request for reimbursement to submit in writing explanation of the EDA's reason for denial of repayment or to process the issuance of the check to the Grantee in the amount of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000). 4. The Grantee agrees to use the proceeds of the grant reimbursement solely for the Improvements. D-Liability and Indemnification 1. Neither the city nor the EDA shall in any event be liable to the Grantee,nor to any of its agents,employees,contractors,guests or invitees,for damages arising from bodily injury, death,property damage,sickness,disease,or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. 2. The Grantee shall indemnify,save,defend and hold harmless the city and the EDA from any claims,liability,causes of action,damages,losses,and costs including attorney fees resulting directly or indirectly from any act or use of Program funds including the defect or claimed defect of any of the Improvements or any such manner arising from this Agreement. 2 3. This section shall survive the termination,expiration or cancellation of this Agreement. E-Written Notice 1. When written notice is required or permitted due to the Improvements,Agreement and/or Program,it shall be addressed hereunder to the follow addresses. Written Notice to the Grantor: Written Notice to the Grantee: Farmington EDA Steve&Melissa Hobbs Attn: Executive Director 19416 Caravel Ct 430 Third Street Farmington,MN 55024 Farmington,MN 55024 F-Agreement 1. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreement(s)between the parties regarding the subject matter contained herein.There are no verbal agreements that change this Agreement. 2. The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the EDA. 3. Any alterations,variations,modifications,amendments or waivers of the provisions of the Agreement shall only be valid when they have been reduced to writing and signed by the authorized representatives of the parties. G-Cancellation 1. Prior to the disbursement of funds,this Agreement may be cancelled by the EDA or Grantee at any time,with or without cause,upon thirty(3 0) days written notice to the other party. 2. If the Grantee fails to perform any of the provisions of this Agreement including providing false,misleading or incomplete information in documents submitted to the City,fails to use grant funds exclusively for the Improvement Costs,or otherwise breaches or fails to comply with any of the terms of this Agreement,it shall be in default. 3. The EDA may act to protect its interest,including requiring the return of all or part of the funds already disbursed. a. If all or part of the funds are required to be repaid back to the EDA,it shall constitute default and the Grantee has thirty(30) days from the date of written notice to pay the EDA.In the event of untimely repayment by the Grantee of the demand following a declaration of default by the EDA,the EDA may thereafter assign this Agreement to the City for the City to assess the unpaid amounts upon the Property and certify the same to the county auditor for collection in like manner as property taxes upon the Property.The Grantee expressly waives any right granted by statute or otherwise to object or appeal the assignment and assessment upon the Property. 3 H-Records:Availability.Access and Audit Clause 1. Pursuant to Minn.Stat.§16C.05,subd. 5,the Grantee agrees that the EDA,City,the State Auditor or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary,shall have access to and the right to examine,audit,excerpt and transcribe any books,documents,papers,records,etc. which are pertinent to the accounting practices and procedures of the Grantee which specifically involve the transactions relating to this Agreement.The Grantee agrees to maintain these records for a minimum of six years from the date of Agreement fulfillment or termination of this Agreement as outlined by Minn.Stat.§16C.05,subd.S. I-Force Majeure 1. The parties shall be excused from performance under the Agreement while and to the extent that either of them are unable to perform for any cause beyond its reasonable control.Such causes shall include,but not be restricted to,fire,storm,flood,earthquake, explosion,war,total or partial failure of transportation or delivery of materials and supplies,interruption of utilities and any act of government or military authority.In the event either party is rendered unable wholly or in part by force majeure to carry out its obligations under this Agreement then the party affected by force majeure shall give written notice with explanation to the other party immediately. I-Conflict of Interest 1. No elected official,officer,or employee of the City or EDA shall during his or her tenure or employment and for one year thereafter,have any interest,direct or indirect,in this Agreement or the proceeds thereof. K-Minnesota Laws Govern 1. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. 4 IN WITNESS WHEREOF,the parties hereto have hereby executed this agreement as of the year and date above on page 1. GRANTOR: GRANTEE: CITY OF FARMINGTON EDA STEVE&MELISSA HOBBS 430 THIRD STREET 19416 CARAVEL CT FARMINGTON,MN 55024 FARMINGTON,MN 55024 BY: BY: Steve Wilson,Chair Steve Hobbs,Property Owner DATE: DATE: BY: BY: Samantha DiMaggio,Executive Director Melissa Hobbs,Property Owner DATE: DATE: 5 CITY OF O Q 430 Third St., Farmington, MN 55024 FARMINGTON 0 651-28o-6800 WO ►�" ® FarmingtonMN.gov Date Submitted:L_J2_/2022 Redevelopment and Property Reinvestment Program Grant Application SITE ADDRESS FOR PROJECT: 705 8th Street Farmington MN 55024 Applicant Information NAME: Sajid(Sam)Haque YEAR ESTABLISHED AT THIS LOCATION: 2010 CHECK ALL THAT APPLY TO YOU: X MINORITY WOMAN VETERAN IMMIGRANT APPLICANT'S BUSINESS NAME (IF APPLICABLE): Triton Properties LLC NUMBER OF EMPLOYEES:4 EMAIL: sahaquemn@gmaii.com PHONE: 612-845-6912 Property Information PROPERTY OWNER(S): Sajid(Sam)Haque ADDITIONAL BUSINESSES AT THIS LOCATION&EMPLOYEE SIZE (IF MULTI-TENANT): YEAR BUILT: HAS THE PROPERTY PREVIOUSLY RECEIVED AN EDA GRANT? YES X NO WHAT IS THE CURRENT CONDITION OF THE BUILDING/PROPERTY: X Good(Suitable for continued use with normal maintenance) Satisfactory(Requires some updating and restoration to represent"good"conditions) Fair(Requires updating and restoration-conditions may have an impact on building operations) Poor(Requires significant updating and restoration-conditions impact building operations) Unsatisfactory(Requires major restoration or demolition due to unsafe/structurally unsound conditions) Project Information PROPOSED PROJECT DESCRIPTION ADA Ramp and door for the Tattoo parlor tenant.ADA Ramp$5000 Door$5000 Installation$5000 TOTAL PROPOSED PROJECT COST:$ 15000 FUNDING INFORMATION: This program funds up to a maximum amount of 50%of eligible project costs (minimum 1:1 funding match).Grants typically will not exceed$10,000. REQUESTED GRANT AMOUNT: $7500 Short Answer If applicable to your project,please outline how the project provides the potential to create or retain jobs as well as increase business productivity,revenue,capacity and/or efficiency. Application Requirements Photos) of current areas to be redeveloped and reinvested in. Rendering and/or plan drawings showing proposed project. A minimum of two contractor bids and/or proposals with a breakdown of itemized costs. Proof of insurance on the building and/or property to be improved. Notes to the Applicant(s) The information that you supply in your application to the City of Farmington/Farmington EDA("City")will be used to assess your eligibility for financial assistance.The City will not be able to process your application without this information.The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the information that you are providing to the City Is public or private.If financial assistance is provided for the project,the information submitted with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I/We have read the above statement and I/we agree to supply the information to the City with full knowledge of the matters contained in this notice. I/We certify that all statements on this application are true and correct to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification. 1/We have read the Redevelopment and Property Reinvestment Program Guidelines and will abide by the rules and regulations set forth in that document. I/We understand that if approved 1/we will enter into a grant agreement which further outlines my responsibilities for the project. I/We authorize City staff or other authorized representative of the City the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. I/We authorize program representatives the right to access the property for the purpose of taking photographs before and after the redevelopment and reinvestment project to record progress of the project I/We understand that I/we are responsible for obtaining appropriate permits if needed.[/we understand that all aspects of project management will be my responsibility. I/We understand that in the case of improvements that do not require a city-issued building permit,the applicant must submit the name and state license number of the contractor completing the work prior to the project occurring and agree to an inspection of the work by a city building official. I/We further understand that I/we will make the final selection of the improvements to be made with the grant funds and that the contract for improvements will be solely between me and the contra or(s).The City will not be liable for the inadeqTmance of the contractor(s). Ap c 4t g r ture P er r Signature (If t antis a applicant) 1 .K OS , tv-ee� Office Use Only-Please leave blank Scoring System 1 2 3 4 5 Rationale Older buildings typically need reinvestment or <30 Years 31-60 Years 61-90 Years 91-120 Years 121+Years redevelopment to reach full business capacity Age of Building or capabilities. This criteria aims to support (Built Since 1992) (Built 1991-1962) (Built 1961-1932) (Built 1931-1902) (Built Before 1902) business in older buildings in the community as well as business retention efforts. Statisically,smaller businesses have less cash 5 or Fewer buffer than larger businesses.This criteria Business Size 51+Employees 26-50 Employees 11-25 Employees 6-10 Employees Employees aims to stablize the ability for all businesses to complete reinvestment or redevelopment projects. The higher the ratio of private investment vs. Total Cost of the Project <$10,000 $10,001-$20,000 $20,001430,000 $30,001450,000 $50,001+ public grant dollar investment,the higher the scoring will be. Fair.Poor.or Current Conditions Go :Suitable for Satisfactory:Requires Unsatisfactory: Buildings and properties which need of the Building continued use with some restoration to Conditions adversely redevelopment or reinvestment projects to represent"good" impact building and achieve full business potential will receive and/or Property normal maintenance. condition. business operations higher scoring. in some capacity. Minority,Women, Statisically,M/W/V/1 businesses have less cash Veteran and/or No M/W/V/I Ownership is buffer than other businesses.This criteria aims Immigrant Ownership M/W/V/l to stabilize the ability for all businesses to Ownership complete projects. Does the Project Directly Relate To Redevelopment and reinvestment grants are An Increase t intended to help a business or property owner increase business productivity,revenue, Business No - - Yes capacity or employee size.If the project is able Productivity, Revenue,Capacity to accomplish that objecitve,the scoring will or Employee Size? reflect that. Have You Received Redevelopment and reinvestment grants intend to be accessible to all businesses. an EDA Grant Yes - No Previously? Preference will be given to those businesses who have not previously received EDA grants. 25/35 Points �i Current north facing fagade. Door • Ramp Proposed location of ADA ramp and door on the north facing facade. Additional Photos Outlining Current Conditions �l MG Mill Northeast corner of the building—3' rise for rear suite (white vinyl siding portion of the building). � I i s I � I, l i I `tiNti�� Current access condition for rear suite tenant. No stairs or ramp. i y i r jj • Zf Current access condition for rear suite tenant. No stairs or ramp. 3 lX it r I ✓. �r t City of Farmington EDA Redevelopment and Property Reinvestment Program Grant Agreement This Redevelopment and Property Reinvestment Grant Agreement(hereinafter referred to as "Agreement")is made and entered into this day of July,2022 by and between Triton Properties LLC,Sajid Haque,property owner of 705 Eighth Street, Farmington,Minnesota (hereinafter referred to as"Grantee")and the City of Farmington Economic Development Authority (EDA),a public body corporate and politic,having its principal offices at 430 Third Street, Farmington,Minnesota(hereinafter referred to as "Grantor"). WHEREAS,the Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the EDA as grants. WHEREAS,the Grantor has established a Redevelopment and Property Reinvestment Program (hereinafter referred to as "Program") to help spur investment on commercial and industrial properties which foster property improvements,redevelopment growth,and increase the productive use of existing infrastructure within the city; and WHEREAS,the Grantee has applied for Redevelopment and Property Reinvestment Program funds for eligible redevelopment and reinvestment improvements at their property located at 705 Eighth Street with the tax pin 140320055011 (hereinafter referred to as"Property );and WHEREAS,the Grantor has reviewed the Grantee's application and determined that the proposed redevelopment and reinvestment improvement project meets the requirements of the Program; and WHEREAS,the Grantee desires to participate in the Program,on the terms and conditions set forth below. NOW,THEREFORE,in consideration of the agreements hereinafter contained,the parties agree as follows: A-Property Improvements: 1. The Grantee agrees and acknowledges that the approved redevelopment and reinvestment improvements (hereinafter referred to as"Improvements")which will be reimbursed are for the project(s) outlined in the Grantee's original application,and are as follows: a. ADA Ramp b. ADA Door 2. If the Grantee wishes to revise the Improvements receiving grant funding through the Program,the Grantee must submit the revised plans to city staff to be reviewed by the EDA. a. The EDA will review the revised plans at the next earliest Regular EDA Meeting. 3. The Grantee agrees to apply for and receive all necessary permits and approvals from the city and from any other governing authority with jurisdiction over the Property related to the construction of the Improvements prior to work beginning. 1 4. The Grantee agrees to complete the Improvements in accordance with all applicable laws, rules and regulation,including but not limited to,Farmington City Code,MN Building Code, Fire Code,etc. S. The Grantee shall select the means,method,and manner of performing the Agreement requirements and Improvements. B-Improvement Timeline: 1. The Agreement will be terminated 120 days from the date of the Agreement on page 1 if construction work has not yet begun. 2. The Improvements shall be completed in a timely manner and all grant funds must be distributed by or before June 30,2023. a. The Agreement maybe extended once,with the length of the extension to be determined on a case-by-case basis.If an extension is necessary,a written extension request shall be made to the Executive Director of the EDA. C-Payment of Program Funds 1. Grant funds will be paid on a reimbursement basis only after all Improvements have been completed according to the authorized scope of work and have been accepted by the Grantor.The cost of complete construction of the Improvements,including out-of-pocket costs for required permitting and approvals,shall be defined as the"Improvement Costs." 2. The Grantee shall be responsible for making the initial payments to all contractors and others involved in the construction and permitting of the Improvements. 3. Upon final completion of the Improvements,the Grantee shall make a request for reimbursement of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000).The request for reimbursement shall include: a. Proof of final inspection for the Improvements (if applicable). b. After photos of the property reflecting the Improvements made. c. A dated copy of the final itemized invoice(s)that comprised the Improvement Costs or a sworn construction statement. d. Dated proof of payment of said invoice(s)that comprised the Improvement Costs. e. Such other documentation as the EDA staff may require in its reasonable discretion to verify the amount of and payment of the Improvement Costs by the Grantee. f. The EDA will have ten (10)business days following the submittal of a complete request for reimbursement to submit in writing explanation of the EDA's reason for denial of repayment or to process the issuance of the check to the Grantee in the amount of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000). 4. The Grantee agrees to use the proceeds of the grant reimbursement solely for the Improvements. 2 D-Liability and Indemnification 1. Neither the city nor the EDA shall in any event be liable to the Grantee,nor to any of its agents,employees,contractors,guests or invitees,for damages arising from bodily injury, death,property damage,sickness,disease,or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. 2. The Grantee shall indemnify,save,defend and hold harmless the city and the EDA from any claims,liability,causes of action,damages,losses,and costs including attorney fees resulting directly or indirectly from any act or use of Program funds including the defect or claimed defect of any of the Improvements or any such manner arising from this Agreement. 3. This section shall survive the termination,expiration or cancellation of this Agreement. E-Written Notice 1. When written notice is required or permitted due to the Improvements,Agreement and/or Program,it shall be addressed hereunder to the follow addresses. Written Notice to the Grantor: Written Notice to the Grantee: Farmington EDA Triton Properties LLC Attn: Executive Director Attn:Sajid Haque 430 Third Street 3900 25th Avenue South Farmington,MN 55024 Minneapolis,MN 55406 F-Agreement 1. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreement(s)between the parties regarding the subject matter contained herein.There are no verbal agreements that change this Agreement. 2. The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the EDA. 3. Any alterations,variations,modifications,amendments or waivers of the provisions of the Agreement shall only be valid when they have been reduced to writing and signed by the authorized representatives of the parties. G-Cancellation 1. Prior to the disbursement of funds,this Agreement may be cancelled by the EDA or Grantee at any time,with or without cause,upon thirty(3 0) days written notice to the other party. 2. If the Grantee fails to perform any of the provisions of this Agreement including providing false,misleading or incomplete information in documents submitted to the City,fails to use grant funds exclusively for the Improvement Costs,or otherwise breaches or fails to comply with any of the terms of this Agreement,it shall be in default. 3. The EDA may act to protect its interest,including requiring the return of all or part of the funds already disbursed. a. If all or part of the funds are required to be repaid back to the EDA,it shall constitute default and the Grantee has thirty(30) days from the date of written 3 notice to pay the EDA.In the event of untimely repayment by the Grantee of the demand following a declaration of default by the EDA,the EDA may thereafter assign this Agreement to the City for the City to assess the unpaid amounts upon the Property and certify the same to the county auditor for collection in like manner as property taxes upon the Property.The Grantee expressly waives any right granted by statute or otherwise to object or appeal the assignment and assessment upon the Property. H-Records:Availability.Access and Audit Clause 1. Pursuant to Minn.Stat.§16C.05,subd. 5,the Grantee agrees that the EDA,City,the State Auditor or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary,shall have access to and the right to examine,audit,excerpt and transcribe any books,documents,papers,records,etc. which are pertinent to the accounting practices and procedures of the Grantee which specifically involve the transactions relating to this Agreement.The Grantee agrees to maintain these records for a minimum of six years from the date of Agreement fulfillment or termination of this Agreement as outlined by Minn.Stat.§16C.05,subd.5. 1-Force Majeure 1. The parties shall be excused from performance under the Agreement while and to the extent that either of them are unable to perform for any cause beyond its reasonable control.Such causes shall include,but not be restricted to,fire,storm,flood,earthquake, explosion,war,total or partial failure of transportation or delivery of materials and supplies,interruption of utilities and any act of government or military authority.In the event either party is rendered unable wholly or in part by force majeure to carry out its obligations under this Agreement then the party affected by force majeure shall give written notice with explanation to the other party immediately. J-Conflict of Interest 1. No elected official,officer,or employee of the City or EDA shall during his or her tenure or employment and for one year thereafter,have any interest,direct or indirect,in this Agreement or the proceeds thereof. K-Minnesota Laws Govern 1. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. 4 IN WITNESS WHEREOF,the parties hereto have hereby executed this agreement as of the year and date above on page 1. GRANTOR: GRANTEE: CITY OF FARMINGTON EDA TRITON PROPERTIES LLC 430 THIRD STREET 3900 25TH AVE S FARMINGTON,MN 55024 MINNEAPOLIS,MN 55406 BY: BY: Steve Wilson,Chair Sajid Haque,Property Owner DATE: DATE: BY: Samantha DiMaggio,Executive Director DATE: 5 CITY OF 43o Third St..Farmington,MN 55024 FARMINGTON o 651-280-6800 FarmingtonMN.gov Date Submitted:__/__J,2022 Redevelopment and Property Reinvestment Program Grant Application SITE ADDRESS FOR PROJECT:34'Third Street Applicant Information NAME:Pam HeikMa YEAR ESTABLISHED AT THIS LOCATION:2003 CHECK ALL THAT APPLY TO YOU: MINORITY " WOMAN VETERAN IMMIGRANT APPLICANT'S BUSINESS NAME(IF APPLICABLE): HelkklfaS fts NUMBER OF EMPLOYEES: EMAIL:tieiiacfashx6w*mw.00m PHONE•mit-468-�4oe_ Property Information PROPERTY OWNER(S):f%,m HeiWa ADDITIONAL BUSINESSES AT THIS LOCATION&EMPLOYEE SIZE(IF MULTI-TENANT): YEAR BUILT: 1877 HAS THE PROPERTY PREVIOUSI,'YzRECEIVED AN EDA GRANT? x YiES NO s, WHAT IS THE CURRENT CpNDiT[ ) QF THE AUILDING/PPIYOPiJit `Y, v Good(Suitable for continuetltuse With normal maintenance ' Satisfactory(Requires Borne u�t►g and restoll�tt ti$ p%reseni fig "cbiidl�ol�i) f' Fad; ulres up8atl�cra6on='conditq k oPe P cant slating and resfpra U »iur restoratton:ol tl Project Information PROPOSED PROJECT DESCRIPTION • Demolition and removal of existing comets in e,ll"Y.;if Ws is not done soon,the moslon underneath{due to • n error stelm Replacementof (test mYont. ( Vi*YY, s Now awniRge onahe uppeFttnrel TOTAL PROPOSED PROJECT COST:$_=T FUNDING INFORMATION: This program funds up to a maximum amount of 50%of eligible project costs(minimum 1:1 funding match).Grants typically will not exceed$10,000, REQUESTED GRANT AMOUNT:$ I 060 Short Answer If applicable to your project,please outline how the project provides the potential.to create or retain jobs as well as Increase business productivity,revenuej gpac[ty and/or ei4ciency Reoedny,exhofiitent amounts of money have been invested Into aria hisbrk,;.F frnirrglon(stldrrrark.:>f ssentlaNy it k new putt and the lower awning hes been replaced,are just a few thirgs.thet have been irate that shout out beewitr` Appllcad"Requirements x Photo($)of current areas o be redeveloped and reinvested In. X Reritieriitg And plait ' �B$sttow proposed project: X A mii%m M ds'G�d' r propo Slsvlt� b i ProofolY a on the j;"andJ� prup ►tb beitXt`roa/c r info' tt• Vl{ I/We have read the above statement and I/we agree to supply the Informs .. mow. matters contained in"noticg.. I/We certify that all statements on this application aretrue and correct to b I/We � ,intentional will,/W y � �„ groundsfor,disuiallftcation. I/We have read the Redevelopment and Pi aperEyteinvestment Program aielipes and wjli abide bytl�e regulations set forth In that document g I/We understand that If approved[/we will enter Into a gtant.agfeement which further m ties s the project. I/We authorize City staff or other authorized replhsentative of the City the right to f.k'pect theproperty beta ip any time from the date of application upon giving notice m the owner nrid to occupaft I/We authorize,progmm representatives the right to access the property for`:the pur*e.of taking,*Vbkp'lis and after the redevelopment and reinvestment project torecord progres of the project " a i*0 iderstand that I we are / responsible for obtaining appropriate pertrift ;if needed I/we undgretaad that w of project management will be my responsibility. Weunderstand that in'the case of improvements that do not nacre a cityjugd ing,pernij;the, submit the name and state tieeaaeumbe i>f the contractor coiaplcting the`tock prior to the project to an inspection of the work by a city butlUng ofAciaL 1/ Ye frtber understand that l/we Will makee final seiecE[On ofte i»fipi¢vemeltts to hem that xbecontractfor>�prctpept,� �3U ytbtp►een meand the�ntra�bvt`j�s�.the � `'tia�le� , inadequate performance of Mracout[s).: sg tom" ti .)4! 5 Two-01 (-t v--fe Office Use Only-Please leave blank Scoring System 1 2 3 4 S Rationale Older buildings typically need reinvestment or <30 Years 31-60 Years 61-90 Years 91-120 Years121+Years redevelopment to reach full business capacity Age of Building or capabilities. This criteria aims to support (Built Since 1992) (Built 1991-1962) (Built 1961-1932) (Built 1931-1902) (Built Before 1902) business in older buildings in the community as well as business retention efforts. Statisically,smaller businesses have less cash IE or Fewer buffer than larger businesses.This criteria mp Business Size 51+Employees 26-50 Employees 11-25 Employees 6-10 Employees aims to stablize the ability for all businesses to loyees complete reinvestment or redevelopment projects. Total Cost of the The higher the ratio of private investment vs. Project <$10,000 $10,001-$20,000 $20,001430,000 $30,001-$50,000 $50,001+ public grant dollar investment,the higher the scoring will be. Fair Poor or Current Conditions Good:Suitable for Satisfactory:Requires nsatisfacto : Buildings and properties which need of the Building continued use with some restoration to onditions adversel redevelopment or reinvestment projects to and/or Property normal maintenance. represent"good" mpact building and achieve full business potential will receive condition. business operations higher scoring. som Minority,Women, Statisically,M/W/V/I businesses have less cash Veteran and/or No M/W/V/1 Ownership is buffer than other businesses.This criteria aims Immigrant Ownership M/W/V/1 to stabilize the ability for all businesses to Ownership complete pro'ects. Does the Project Directly Relate t Redevelopment and reinvestment grants are An Increase In intended to help a business or property owner Business No - Yes increase business productivity,revenue, Productivity, capacity or employee size.If the project is able Revenue,Capacity to accomplish that objecitve,the scoring will or Employee Size? reflect that. Redevelopment and reinvestment grants Have You Received an EDA Grant =Yesintend to be accessible to all businesses. an EDA Grant - - No Previously? Preference will be given to those businesses who have not previously received EDA grants. /35 Points Proposed Upgrades to Farmington's Historic Downtown Fletcher Building rr _, Painting of Stairs New Cement f 6 New Awnings New Detailed Woodwork I t 345 Third Street: Current Conditions of Eligible Projects t r 1 � 1 nom• �_G�-�'`� '-X '.'`'�: , 1 i + City of Farmington EDA Redevelopment and Property Reinvestment Program Grant Agreement This Redevelopment and Property Reinvestment Grant Agreement(hereinafter referred to as "Agreement") is made and entered into this day of July,2022 by and between Heikkila Properties,LLC,Pam Heikkila at 345 Third Street,Farmington,Minnesota (hereinafter referred to as "Grantee") and the City of Farmington Economic Development Authority(EDA),a public body corporate and politic,having its principal offices at 430 Third Street,Farmington,Minnesota (hereinafter referred to as "Grantor"). WHEREAS,the Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the EDA as grants. WHEREAS,the Grantor has established a Redevelopment and Property Reinvestment Program (hereinafter referred to as "Program") to help spur investment on commercial and industrial properties which foster property improvements,redevelopment growth,and increase the productive use of existing infrastructure within the city; and WHEREAS,the Grantee has applied for Redevelopment and Property Reinvestment Program funds for eligible redevelopment and reinvestment improvements at their property located at 345 Third Street with the tax pin 147700023081 (hereinafter referred to as"Property");and WHEREAS,the Grantor has reviewed the Grantee's application and determined that the proposed redevelopment and reinvestment improvement project meets the requirements of the Program; and WHEREAS,the Grantee desires to participate in the Program,on the terms and conditions set forth below. NOW,THEREFORE,in consideration of the agreements hereinafter contained,the parties agree as follows: A-Property Improvements: 1. The Grantee agrees and acknowledges that the approved redevelopment and reinvestment improvements (hereinafter referred to as"Improvements")which will be reimbursed are for the project(s) outlined in the Grantee's original application,eligible for the program,and are as follows: a. Concrete work b. Woodwork 2. If the Grantee wishes to revise the Improvements receiving grant funding through the Program,the Grantee must submit the revised plans to city staff to be reviewed by the EDA. a. The EDA will review the revised plans at the next earliest Regular EDA Meeting. 3. The Grantee agrees to apply for and receive all necessary permits and approvals from the city and from any other governing authority with jurisdiction over the Property related to the construction of the Improvements prior to work beginning. 1 4. The Grantee agrees to complete the Improvements in accordance with all applicable laws, rules and regulation,including but not limited to,Farmington City Code,MN Building Code, Fire Code,etc. 5. The Grantee shall select the means,method,and manner of performing the Agreement requirements and Improvements. B-Improvement Timeline: 1. The Agreement will be terminated 120 days from the date of the Agreement on page 1 if construction work has not yet begun. 2. The Improvements shall be completed in a timely manner and all grant funds must be distributed by or before June 30,2023. a. The Agreement may be extended once,with the length of the extension to be determined on a case-by-case basis.If an extension is necessary,a written extension request shall be made to the Executive Director of the EDA. C-Payment of Program Funds 1. Grant funds will be paid on a reimbursement basis only after all Improvements have been completed according to the authorized scope of work and have been accepted by the Grantor.The cost of complete construction of the Improvements,including out-of-pocket costs for required permitting and approvals,shall be defined as the"Improvement Costs." 2. The Grantee shall be responsible for making the initial payments to all contractors and others involved in the construction and permitting of the Improvements. 3. Upon final completion of the Improvements,the Grantee shall make a request for reimbursement of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000).The request for reimbursement shall include: a. Proof of final inspection for the Improvements (if applicable). b. After photos of the property reflecting the Improvements made. c. A dated copy of the final itemized invoice(s)that comprised the Improvement Costs or a sworn construction statement. d. Dated proof of payment of said invoice(s)that comprised the Improvement Costs. e. Such other documentation as the EDA staff may require in its reasonable discretion to verify the amount of and payment of the Improvement Costs by the Grantee. f. The EDA will have ten(10)business days following the submittal of a complete request for reimbursement to submit in writing explanation of the EDA's reason for denial of repayment or to process the issuance of the check to the Grantee in the amount of one-half(1/2) of the actual Improvement Costs incurred by the Grantee, but in no event shall the reimbursement exceed Ten Thousand Dollars ($10,000). 4. The Grantee agrees to use the proceeds of the grant reimbursement solely for the Improvements. 2 D-Liability and Indemnification 1. Neither the city nor the EDA shall in any event be liable to the Grantee,nor to any of its agents,employees,contractors,guests or invitees,for damages arising from bodily injury, death,property damage,sickness,disease,or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. 2. The Grantee shall indemnify,save,defend and hold harmless the city and the EDA from any claims,liability,causes of action,damages,losses,and costs including attorney fees resulting directly or indirectly from any act or use of Program funds including the defect or claimed defect of any of the Improvements or any such manner arising from this Agreement. 3. This section shall survive the termination,expiration or cancellation of this Agreement. E-Written Notice 1. When written notice is required or permitted due to the Improvements,Agreement and/or Program,it shall be addressed hereunder to the follow addresses. Written Notice to the Grantor: Written Notice to the Grantee: Farmington EDA Heikkila Properties,LLC Attn: Executive Director Attn: Pam Heikkila 430 Third Street 345 Third Street Farmington,MN 55024 Farmington,MN 55024 F-Agreement 1. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreement(s)between the parties regarding the subject matter contained herein.There are no verbal agreements that change this Agreement. 2. The Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of the EDA. 3. Any alterations,variations,modifications,amendments or waivers of the provisions of the Agreement shall only be valid when they have been reduced to writing and signed by the authorized representatives of the parties. G-Cancellation 1. Prior to the disbursement of funds,this Agreement may be cancelled by the EDA or Grantee at any time,with or without cause,upon thirty(30) days written notice to the other party. 2. If the Grantee fails to perform any of the provisions of this Agreement including providing false,misleading or incomplete information in documents submitted to the City,fails to use grant funds exclusively for the Improvement Costs,or otherwise breaches or fails to comply with any of the terms of this Agreement,it shall be in default. 3. The EDA may act to protect its interest,including requiring the return of all or part of the funds already disbursed. a. If all or part of the funds are required to be repaid back to the EDA,it shall constitute default and the Grantee has thirty(30) days from the date of written 3 notice to pay the EDA.In the event of untimely repayment by the Grantee of the demand following a declaration of default by the EDA,the EDA may thereafter assign this Agreement to the City for the City to assess the unpaid amounts upon the Property and certify the same to the county auditor for collection in like manner as property taxes upon the Property.The Grantee expressly waives any right granted by statute or otherwise to object or appeal the assignment and assessment upon the Property. H-Records:Availability.Access and Audit Clause 1. Pursuant to Minn.Stat.§16C.05,subd.5,the Grantee agrees that the EDA,City,the State Auditor or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary,shall have access to and the right to examine,audit,excerpt and transcribe any books,documents,papers,records,etc. which are pertinent to the accounting practices and procedures of the Grantee which specifically involve the transactions relating to this Agreement.The Grantee agrees to maintain these records for a minimum of six years from the date of Agreement fulfillment or termination of this Agreement as outlined by Minn.Stat.§16C.05,subd.S. I-Force Majeure 1. The parties shall be excused from performance under the Agreement while and to the extent that either of them are unable to perform for any cause beyond its reasonable control.Such causes shall include,but not be restricted to,fire,storm,flood,earthquake, explosion,war,total or partial failure of transportation or delivery of materials and supplies,interruption of utilities and any act of government or military authority.In the event either party is rendered unable wholly or in part by force majeure to carry out its obligations under this Agreement then the party affected by force majeure shall give written notice with explanation to the other party immediately. I-Conflict of Interest 1. No elected official,officer,or employee of the City or EDA shall during his or her tenure or employment and for one year thereafter,have any interest,direct or indirect,in this Agreement or the proceeds thereof. K-Minnesota Laws Govern 1. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. 4 IN WITNESS WHEREOF,the parties hereto have hereby executed this agreement as of the year and date above on page 1. GRANTOR: GRANTEE: CITY OF FARMINGTON EDA HEIKKILA PROPERTIES,LCC 430 THIRD STREET 345 THIRD STREET FARMINGTON,MN 55024 FARMINGTON,MN 55024 BY: BY: Steve Wilson,Chair Pam Heikkila,Property Owner DATE: DATE: BY: Samantha DiMaggio,Executive Director DATE: 5