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HomeMy WebLinkAbout02-21-23 CITY OF Meeting Location: FARMINGTONFarmington City Hall ®® 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA February 21, 2023 5:00 PM 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENTAGENDA (a) Approve August 15, 2022, EDA Meeting Minutes (b) Approve January 17, 2023, EDA Meeting Minutes (c) Annual Organizational Matter- EDA (d) Monthly Financial Statement 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Appointment of 2023 EDA Chair and Vice Chair (b) Consider Approval of Tax Increment Financing(TI F) Plan and Establishment of TI F District No. 15- Ebert Downtown Housing (c) Consider Authorizing I nterfund Loan in Connection with TI F No. 15 (d) 2022 Year End Report- Open to Business/MCCD (e) Approval of Sponsorship Agreement with the Minnesota Real Estate Journal (MREJ) (f) Micro Grant Program Discussion (g) 2023 EDA Work Plan 9. DIRECTOR'S REPORT (a) Director's Report 10. ADJOURN CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve August 15, 2022, EDA Meeting Minutes DATE: February 21, 2023 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the August 15, 2022, EDA meeting. ACTION REQUESTED Approve the August 15, 2022, EDA minutes. ATTACHMENTS: Type Description D Exhibit Meeting Minutes CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY MINUTES REGULAR MEETING August 15, 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;Kalley Swift,Community Development Specialist Others Present: Kara Hildreth,Journalist 3. APPROVEAGENDA MOTION by Hoyt,second by Bernhjelm to approve the Agenda.APIF,MOTION CARRIED. 4. CONSENT AGENDA a) Meeting Minutes(July 18,2022 Regular Meeting) b) Monthly Financial Statement c)Appoint An Executive Director of the EDA d) Execute a Certificate of Completion&Release of Contract-5147 208thStreet W MOTION by Lien,second by Hoyt to approve the consent agenda.APIF,MOTION CARRIED. 5. DISCUSSION ITEMS a) Review of An Amended Business Subsidy Policy The Farmington City Council has established priorities,one of which is Business Growth,to help provide more amenities to residents and increase and diversify our tax base.One of the primary tools that could help accomplish this goal is a business subsidy.In addition to a business subsidy policy,the requirements and limitations established through Minnesota State Statute Sections 116J.993 through 116J.995 shall be followed.The Business Subsidy Policy will be used as a guide when reviewing an application submitted to the city for a business subsidy.The City has the right to deviate from their Business Subsidy Policy. MN Statute 116J.994,Sub.2 requires that prior to awarding a financial subsidy to a business,a set of criteria needs to be developed by the grantor.The City of Farmington's proposed amended Business Subsidy Policy establishes MN State Statute business subsidy definition and develops a set of criteria as required.The current Business Subsidy Policy was last amended on April 20,2015.City staff believes that based on the changes in our community and the economic environment that the policy should be updated to better attract businesses into our community and help retain a more diverse business economy. The amended Business Subsidy Policy will absorb the current Business Subsidy Policy,Tax Abatement Policy,and TIF Policy and dissolve it into one single policy for ease of use and understanding for business prospects,the community and city staff. Economic Development Authority Minutes Pagel of 2 Regular Meeting August 15,2022 The Economic Development Authority(EDA)began an initial conversation about an amended Business Subsidy Policy on February 22, 2022 at their Regular meeting and had a follow-up discussion on May 16,2022 at their Regular meeting.City staff utilized the direction given from the EDA to finalize the amended Business Subsidy Policy brought forward tonight for review and adoption by the City Council. 6. DIRECTOR'S REPORT City staff review the Favor Farmington bingo event happening in August,RFIs,RFPs,and upcoming ribbon cuttings. 7. ADJOURN MOTION by Porter,second by Bernhjelm to adjourn at 6:42 p.m. APIF,MOTION CARRIED. Respectfully submitted, Kalley Swift Community Development Specialist Economic Development Authority Minutes Page 2 of 2 Regular Meeting August 15,2022 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmingtonMN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve January 17, 2023, EDA Meeting Minutes DATE: February 21, 2023 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the January 17, 2023, EDA meeting. ACTION REQUESTED Approve the January 17, 2023, EDA minutes. ATTACHMENTS: Type Description D Exhibit Meeting Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting January 17, 2023 1. CALL TO ORDER The meeting was called to order by Chair Wilson at 5:00 p.m. Members Present: Wilson, Bernatz, Hoyt, Lien, Porter Members Absent: None Also Present: Deanna Kuennen, Community Development Director; Lynn Gorski, City Administrator;Julie Flaten,Assistant City Administrator/HR Director;John Powell, Public Works Director;Tony Wippler, Planning Manager; Cynthia Muller,Administrative Assistant Jason Aarsvold, Ehlers; Greg Hayes and Ebert Construction members 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Hoyt, second by Lien to approve the agenda. APIF, MOTION CARRIED. S. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Hoyt, second by Lien to approve the Consent Agenda as follows: a) Approved Appointment of Executive Director b) Accepted Monthly Financial Statement APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Ebert Downtown Apartment—TIF Term Sheet Discussion Ebert Construction has entered into a purchase agreement to purchase the property at 310 Third Street(former Dakota Motors building at the corner of Third and Elm Streets). The developer is Ten Nineteen Development LLC. They plan to construct a 4-story, 74-unit market rate apartment building with first floor parking and other amenities. It is estimated the total project costs will be nearly$20 million. To support the project the developer is seeking public financing assistance in the form of Tax Increment Financing(TIF). Staff and the developer have been working with Jason Aarsvold, Ehlers to review the application, prepare a TIF schedule and conduct a TIF analysis to determine the minimum level of public financing necessary to make the project financially EDA Minutes(Regular) January 17,2023 Page 2 feasible. This project will be going through multiple reviews and approvals with the city council, planning commission and EDA. Mr. Aarsvold has completed the analysis and presented a term sheet. He stated the project cost is $19.7 million and the TIF request is for$2 million for 26 years. The proforma analysis included project costs, expenses, determined if the financing meets the industry standard, rents at$2.11/sq. ft.,the project does show a need for assistance to achieve feasibility. The project return on investment with 26 years of TIF is higher than the standard. The TIF note would be reduced to $1,750,000. Project repayment would be within 20 years. The analysis and negotiations confirm this assistance is necessary for financial feasibility but is not over subsidizing the project. Director Kuennen added the financing has a higher level of equity. Mr. Aarsvold stated the developer is bringing 36%equity to the project. Less than 10%of public costs are being supported by assistance. Chair Wilson confirmed the public assistance is not a new line item. We are talking about taxes not collected on this project. The $1.75 million was arrived at because the analysis showed that. According to the term sheet,the key business terms for the developer are: - Execution of Development Agreement - Acquisition of Property - Preparation and Submittal of Construction Plans Key business terms for the EDA are: - Creation of a new TIF district for the project, subject to qualification as a redevelopment tax increment district - Approval of Construction Plans - Execution of Development Agreement - Determination that developer has sufficient financial means to construct minimum improvements. - Obtain all land use approvals, permits necessary to construct the project and payment of customary city fees. The construction schedule would commence approximately June 1, 2023, and be completed by December 31, 2024. Public assistance is subject to all terms and conditions of the Development Agreement,the EDA will reimburse the developer with 95%available tax increment for up to a total of approximately$1,750,000 (present value) of qualified costs related to the minimum improvements. Payments will be made through a TIF note issued on a pay-as-you-go basis over a maximum of 20 years at a rate of 6%per annum. The building to be constructed is anticipated to have an assessed value of approximately$14,800,000. The developer has made an escrow deposit of$6,000 for reasonable out-of- pocket expenses for legal and financial consultant services. There can be no EDA Minutes(Regular) January 17,2023 Page 3 transfer of property or Development Agreement to an unrelated entity without EDA consent. Developer covenants to pay property taxes and maintain customary insurance. Chair Wilson stated this is a unique housing offering and asked if council can anticipate future projects requesting TIF. Director Kuennen replied every project is analyzed on its own merits. Any project this size will have a financial assistance request. Mayor Hoyt stated this is a significant commercial investment in our community. With high density, long term the tax rate is much higher. Next steps are to proceed with establishing TIF district#15. - Requires approval of a TIF plan - Documents set forth policy obligations for the project - Identifies geographic location of the project - Provides maximum budget authority for TIF revenues and expenses - Planning document that allows for creation of TIF district - Does not identify an amount of or grant any assistance to the developer— the TIF agreement does this. The TIF plan process includes: - Notice to the county—completed 1/10/23 - TIF plan to the county and school district 1/20/23 - Public hearing notice published 2/10/23 - Public hearing held 2/21/23 o EDA approval of TIF plan as designated o Council holds public hearing, considers resolution to adopt TIF plan - A TIF agreement between the EDA and developer is approved o Specific terms and conditions, EDA will pay increment collected in the TIF district to the developer o City attorney drafts the TIF agreement Ebert Construction has no concerns with finding renters. Delano is a similar size community and apartments were filled right away. This will go to the planning commission on February 14, 2023. Director Kuennen stated we are trying to consolidate the process with planning commission approvals and TIF. If the project is not approved,TIF will not move forward. At the next work session we will talk about the total project and details. Mayor Hoyt stated this is a great long term investment in the community. Member Lien noted high density drives development for a grocery store and taxes. Member Bernatz stated her initial concern was turning commercial property into resident until hearing of the tax revenue this generates. We need to communicate this effectively. She asked if we can expect new residents or current residents moving in? Mr. Hayes stated a market rate study is available to EDA Minutes(Regular) January 17,2023 Page 4 the city and where customers will come from within a 10-mile radius. Member Porter had no reservations. The aesthetics is something we need downtown. Chair Wilson is excited about the offering. He appreciated staff for their collaboration and this will make the community look good for other development. b) 2023 EDA Budget and Work Plan/Goals Director Kuennen considers 2023 a rebuilding year. We need to think about how the visioning process translates into the budget. EDA revenues are $51,000, including the general fund $50,000 transfer; expenses are$81,000. The EDA has a fund balance of$220,000. The budget has two categories—operating expenses and program funds. There is$60,000 allocated to programs and $10,000 in expenditures incurred with other agencies. Comparing the budget to the strategic plan and what the activities are is another way to look at this. Currently we use the $60,000 for fagade and redevelopment programs. Director Kuennen suggested utilizing those funds differently this year. Marketing is the EDA's number one priority. She suggested redirecting the$60,000 to marketing which would mean being present at events, get people asking questions about Farmington and get them here. Instead of fagade and redevelopment grants, look at micro-grants citywide, build in relocation expenses and focus on entrepreneurs. Use the $60,000 to move us forward with strategic planning. The EDA also needs to consider long term and seek additional funding resources, implementation of the visioning and comp plan. The budget for programs could be a rolling approach. We would establish guidelines and help businesses where they are. We didn't use all of what was budgeted for programs in 2022. Chair Wilson liked this approach and asked what we can do with marketing dollars. Director Kuennen explained we can get involved with groups and getting us known. She is not talking about ads in magazines. There are realtor summits where we can get on the panel and talk about what's happening in our community. Create relationships. This requires a membership, we get a sponsorship opportunity with a booth and speaking opportunities. Another opportunity is an organization called Community Venture Network. They normally work with cities outside the metro but would accept Farmington. The organization brings in so many businesses a year in some level of growth and determines which ones are better suited in outer communities. Staff would identify which one would fit here and work with them. Member Porter liked allocating funds to marketing and not set parameters to just downtown. She is all in on these recommendations. Member Lien agreed with pulling dollars out of the fagade improvement program. He would like to discuss micro-grants further. Director Kuennen noted if we put half the funds into marketing and half to grants,that would go a long way. Chair Wilson noted we need more opportunities, but we are land incumbered. Director Kuennen stated we need to get the word out, but we are not prepared for ten businesses to come. We need to have conversations with land owners and learn their EDA Minutes(Regular) January 17, 2023 Page 5 timeline and determine if infrastructure is at the site. This needs to be done incrementally. We need to look at long term funding sources and what does that look like. Director Kuennen's goals for 2023 are for the EDA to build relationships with partner organizations, visiting businesses and have conversations with land owners. Look at incremental things. Mayor Hoyt stated the EDA has talked about wanting and spent money on determining needs. We can't cut and re-allocate to make things work. We need to cut and go out and get more money, like an EDA levy. To make decisions for the long term will hurt in the short term. Member Bernatz noted businesses are not going to wait for Farmington to be ready. She liked the idea of micro-grants. Chair Wilson asked if the EDA should give direction to reuse the program dollars. Director Kuennen would formulate goals and bring them back to the EDA. Member Lien was okay with the marketing side. Mayor Hoyt noted if staff comes back with a situation we need to take advantage of, we can't wait. The EDA direction was they liked this approach and look forward to seeing a work plan. Bring back a micro-grant program for discussion. Member Lien would like to see a "but for"test with the micro-grants and a good set of criteria. C) Extension Request—2022 Facade Improvement Program Mr. Edward Endres, owner of Pizza Man, 409 Third Street, was awarded a facade grant in April 2022. Staff received a request for reimbursement on December 31, 2022, but additional information is still required in order to satisfy the conditions of the grant and make payment. The work is completed. Mr. Endres requested an extension of 45 days, until February 14, 2023,to submit the required documentation. MOTION by Hoyt, second by Porter to approve the extension for the 2022 facade improvement program grant for 409 Third Street, Mr. Edward Endres. APIF, MOTION CARRIED. 8. DIRECTOR'S REPORT a) Director's Report During the next several months, staff will be focusing on the following initiatives: 1. Developing an EDA Work Plan 2. Meeting with economic development partners within the region. 3. Program review, organization and development. 4. Marketing opportunities. 5. Business visits. Administrator Gorski thanked the EDA for listening to the community development plans and trusting staff. The City Council strategic planning session was confirmed for February 6, 2023. Council already has three goals and we can focus on ideas within those goals. EDA Minutes(Regular) January 17,2023 Page 6 She will send out some pre-work containing the 2022 goals and the second half of the day will be a discussion with council and staff. 9. ADJOURN MOTION by Hoyt, second by Porter to adjourn at 6:50 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia MuCCer Cynthia Muller Administrative Assistant CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 �Vlll�lllllr ® Farmington MN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: Annual Organizational Matter- EDA DATE: February 21, 2023 INTRODUCTION/DISCUSSION Section I, SU BD. 2 of the EDA By-Laws identifies annual organizational matters that must take place at the February meeting,or the next regular meeting of the EDA.These actions include: (1)acknowledge City Council's designation of the official newspaper; (2) establish the meeting schedule for the year; (3) choose a Chairperson and a Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons disability or absence, and in case of a vacancy in the office of Chairperson, and until a successor has been appointed and qualifies to fulfill the duties of Chairperson, and; (4)staff will serve as the Secretary/Treasurer. ACTION REQUESTED The EDA is asked to approve the following: 1. Acknowledge that the Dakota County Tribune is the City Council's designation of the official newspaper. 2. Establish that the EDA will meet on the third (3rd) Monday of every month at 6:00 PM, unless that Monday is a holiday. Additional meetings will be added if required,and the time of the meeting may be adjusted to accommodate action and discussion items. The following is the 2023 EDA Meeting schedule: Month Meeting Date January Tuesday,January 17 February Tuesday, February 21 March Monday, March 20 April Monday,April 17 May Monday, May 15 June Monday,June 19 July Monday,July 17 August Monday, August 21 September Monday, September 18 October Monday, October 16 November Monday, November 20 December Monday, December 18 CITYOF 0 43o Third St., Farmington, MN 55024 FARMINGTON 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: Monthly Financial Statement DATE: February 21, 2023 INTRODUCTION/DISCUSSION Attached is the monthly Financial Statement of the EDA (01/2023).The primary expenses incurred in January include: 2023 Dakota Regional Chamber of Commerce membership dues 2023 Economic Development Association of MN membership dues 2023 Economic Development Association of M N winter conference ACTION REQUESTED Accept the monthly Financial Statement for the EDA. ATTACHMENTS: Type Description D Backup Material Financial Statement-January CITY OF FARMINGTON MONTHLY FINANCIAL REPORT January 31,2023 ECONOMIC DEVELOPMENT AGENCY COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR TO YEAR TO PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Interest(Charge) 1,600 - - 219 0.00% (6,627) Total Revenues 1,600 - - 219 0.00% (6,627) EXPENDITURES Other Services&Charges 81,510 3,218 3,218 3,551 3.95% 40,598 TOTAL EXPENDITURES 81,510 3,218 3,218 3,551 3.95% 40,598 TRANSFERS 50,000 4,167 4,167 4,167 94,367 EXCESS(DEFICIENCY) $ (29,910) $ 949 $ 949 $ 835 $ 47,142 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: Appointment of 2023 EDA Chair and Vice Chair DATE: February 21, 2023 INTRODUCTION/DISCUSSION Section 1, SU BD.2 of the EDA By-Laws identify that annually at the February meeting,the EDA must: (1) acknowledge City Council's designation of the official newspaper; (2) establish the meeting schedule for the year; L)choose a Chairperson and a Vice-Chairperson. who shall perform the duties of the Chairperson during the Chairpersons disability or absence and in case of a vacancy in the office of Chairperson, and until a successor has been appointed and qualifies to fulfill the duties of Chairperson. and; (4)staff will serve as the Secretary/Treasurer. ACTION REQUESTED Staff is seeking nominations and appointments for EDA Chair and Vice Chair, each who will serve in their respective roles until February 2024. ATTACHMENTS: Type Description D Backup Material EDA By-Laws (approved 2022) ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS Adopted February 22, 2022 These By-Laws,when adopted, are intended to deal with matters not otherwise covered by State Law, City Ordinance or elsewhere. Section I—Meetings SUBD. 1 —Regular meetings of the Economic Development Authority shall be held on the third(3rd) Monday of each month at 6:00p.m. Any regular meeting falling upon a holiday shall be held on the following Tuesday at the same time and place. All meetings, including special and adjourned meetings, shall be held in the City Hall unless otherwise designated. SUBD. 2—At the February Authority meeting or the next regular meeting of the EDA each calendar year,the Authority shall (1) acknowledge City Council's designation of the official newspaper; (2) establish the meeting schedule for the year; (3) choose a Chairperson and a Vice-Chairperson,who shall perform the duties of the Chairperson during the Chairpersons disability or absence, and in case of a vacancy in the office of Chairperson, and until a successor has been appointed and qualifies to fulfill the duties of Chairperson,and; (4) staff will serve as the Secretary/Treasurer. Section H Presiding Officer; Rules of Order SUBD. 1 —The Chairperson shall preside at all meetings of the Authority. In the absence of the Chairperson,the Vice-Chairperson shall preside. In the absence of both,the Executive Director shall call the meeting to order and shall preside until the Authority members present at the meeting choose one of their members to act temporarily as presiding officer. SUBD. 2—The presiding officer shall preserve order, enforce the rule of procedure herein prescribed, and determine all questions of procedure and order. Except as otherwise provided by statute or by these rules,the proceedings of the Authority shall be conducted in accordance with the following rules of order: A. A motion must be seconded before being considered by the Authority and the presiding officer must recognize mover, as well as the seconder. B. Any motion may be withdrawn by its mover with the consent of his/her second. But a motion,once debated, cannot be withdrawn except by a majority vote of the Authority. C. A motion will not be subject to debate until it has been stated by the presiding officer and he/she has opened it to debate. D. Each member,while speaking, shall confine himself/herself to the question at hand and avoid all personal, indecorous, or sarcastic language. 1 E. Whenever any member of the Authority desires to speak on any question,which affects him/her personally, he/she shall first vacate his/her chair and shall not resume his/her seat until the matter under consideration has been acted upon.He/she shall be allowed to make comments on the question as a private citizen only and while a member of the audience. F. Whenever public hearings are held,the presiding officer shall allow any member of the public,the privilege of speaking. A reasonable time shall be allowed to anyone as long as they are not repeating points already made. The presiding officer shall maintain order and may rule anyone out of order. G. At any meeting,the presiding officer will allow the public to participate as long as there is reason to believe the input is beneficial. SUBD. 3—Any member may appeal to the Authority from a ruling of the presiding officer. If the appeal is seconded,the appealing member may speak first on the reason for his/her appeal. General discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is approved by a majority of the members present. Section III—Agendas SUBD. 1 —The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Thursday preceding the meeting for publication purposes. SUBD. 2—Any member may place an item on the agenda by so instructing the Executive Director. SUBD.3—No item shall be placed on the agenda unless the item is expressed in such a way as to clearly show the subject matter involved. SUBD. 4—The agenda add-ons are subject to approval by a majority vote of the members present and further such add-on items may be discussed, but no action may be taken if any member objects. 2 Section IV—Order of Business SUBD. 1 —Each meeting of the Authority shall convene at the time and place appointed, therefore. Authority business shall be conducted in the following order: 1) Call to Order 2) Pledge of Allegiance 3) Roll Call 4) Approve Agenda 5) Consent Agenda 6) Public Hearings 7) Discussion Items 8) Director's Report 9) Adjourn SUBD. 2—The order of business may be varied by the presiding officer, except that all public hearings shall be held at the time specified in the notice of hearing. Section V—Minutes SUBD. 1 —Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her absence,his/her designee. Resolutions need not be recorded in full in the minutes if they appear in other permanent recordsof the Executive Director and can be accurately identified from the description given in the minutes. SUBD. 2—Minutes of each meeting shall be reduced to typewritten form.At the next regular Authority meeting, approval of the minutes shall be considered by the Authority. The minutes need not be read aloud,but the presiding officer shall call for any additions or corrections. If there is an objection,the Authority shall vote upon the addition or correction. If there are no additions or corrections,the minutes shall stand approved by motion. If there is an objection,the Authority shall vote upon the addition or correction and approve the minutes by motion as amended. Section VI—Quorum and Voting SUBD. 1 —At all meetings a majority of all members shall constitute a quorum for the transaction of business. SUBD. 2—The votes of members on any question pending before the EDA shall be by voice votes. Roll call vote can be requested by any member, except for the following agenda items; approval of the agenda; approval of the consent agenda; and the adjournment. The names of those voting for and against the question shall be recorded in the minutes. If any member present does not vote,the minutes shall state: "Abstain:Name". SUBD. 3 —Except as otherwise provided by statute, a majority vote of the quorum shall prevail. 3 Section VII—Executive Director The Authority may appoint and provide for annual performance review of the Executive Director. Section VIII—Suspension or Amendment of the By-Laws SUBD. 1 —These by-laws may be temporarily suspended by a unanimous vote of the members present. SUBD.2—These by-laws shall not be repealed or amended except by a majority vote of the whole Authority after notice has been given at some preceding meeting. Section IX—Effective Date SUBD. 1 -These by-laws have been adopted by the Economic Development Authority on the 22nd day of February 2022 and become effective immediately. Attest: E A E e utive Di e for EDA Chairperson Date: 2-1 - Z Date: 2- .212--7 4 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 mftftkl O Farmington MN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: Consider Approval of Tax Increment Financing(TI F) Plan and Establishment of TI F District No. 15 - Ebert Downtown Housing DATE: February 21, 2023 INTRODUCTION/DISCUSSION Starting in 2022, Staff has been in conversations with Ebert Construction/Ten Nineteen Development, LLC (Developer) regarding a multi-family housing development to help address the housing needs in the community. After evaluating multiple sites,the Developer entered into a purchase agreement for the property at 310 Third Street and has been diligently working towards the redevelopment of the property into a 74-unit market-rate apartment building.The proposed project will be a 4-story building consisting of a mixture of 1-bedroom, 1-bedroom+den, and 2-bedroom units,with first floor parking(63 stalls) and surface parking, and amenities such as a sky lounge, rooftop terrace, main lobby lounge, community room,fitness room, pet wash, and in-unit washers and dryers. The total project costs are estimated to be nearly$20 million. To support the project the Developer requested public financing assistance in the form of Tax Increment Financing(TI F), a redevelopment district.The costs of the project-including land acquisition, demolition and clean up, site improvements, utilities and construction-makes the development infeasible without tax increment assistance. Staff engaged Ehlers as the financial consultant to conduct an in-depth financial review, evaluating the project pro forma and the Developer's TI F request. I n January 2023,Jason Aarsvold from Ehlers presented the TI F analysis results the minimum level of public financing that would be required to make the project financially feasible. Based on the analysis it was identified that the project will require$1,750,000 (Present Value) over a maximum of 20 years at a rate of 6.00% per annum. To provide the necessary assistance for the project,the City of Farmington (City)and Farmington EDA (EDA) must first establish a new tax increment financing district for the project. A public hearing is scheduled for February 21, 2023 with the City Council. Prior to the public hearing,the EDA is required to consider the modifications to the Redevelopment Plan and determine whether the TI F plan for TI F No. 15 - Ebert Downtown Housing conforms to the requirements of the TI F statutes. As required by state statutes,the City of Farmington Economic Development Authority(EDA),the City of Farmington (City), staff and consultants prepared the"Modification to the Redevelopment Plan Downtown Redevelopment Project&Tax Increment Financing(TI F) Plan Establishment of Tax Increment Financing District No. 15- Ebert Downtown Housing(a redevelopment district)." Adopting the TI F Plan is a necessary step to establish the TI F district. The TI F Plan identifies the following: • Statutory Authority • District boundaries • District classification -redevelopment district • First year of district increment-2025 • Duration of district-25 years after the receipt of the first increment • Total estimated tax increment revenues for the district-$7,085,542 • Uses of funds (cost of certain eligible expenses)-$7,085,542 **this does not represent the amount of TIF for the specific project. Instead, this represents the maximum budget for all activities to be considered for TIF within the district.** • Findings for the But/For Analysis • Redevelopment District qualifications-310 Third Street Substandard Building Report. Approving the TI F plan does not grant any assistance to the developer for the project.That will be done through a separate TI F agreement that will be approved by the EDA at a future meeting date. I n addition to approving the TI F Plan,a number of other actions will be required for the project. These include: • All Planning&Zoning actions including approval of Conditional Use Permit(approved on 2/14/2023) • Vacation of Right of Way • Waiver of Plat(lot split)and lot combination • Purchase Agreement for the conveyance of city-owned land • Access and maintenance agreements • Contract for Private Development(TI F Contract) and Development Agreement Jason Aarsvold will present the TI F Plan at the EDA meeting and be available to answer any questions. ACTION REQUESTED The EDA is asked to consider and approve the attached resolution, Resolution Adopting a Modification to the Redevelopment Plan for the Downtown Redevelopment Project, Establishing Tax Increment Financing District No. 15-Ebert Downtown Housing Herein, Adopting a Tax Increment Financing Plan Therefor and Accepting Transfer of Authority from the City of Farmington. At a future EDA meeting, a Contract for Private Development(TI F Contract)will be brought forward for consideration. The TI F Contract is different than the TI F Plan.The TI F Plan establishes the maximum budgetary authority of the district.The TI F Contract will identify the specific TI F terms and conditions related to the proposed 74-unit market-rate apartment project. ATTACHMENTS: Type Description ❑ Resolution EDA Resolution -Approving TI F Plan-TI F No. 15 ❑ Backup Material TI F Plan-TI F 15 - Ebert Downtown Housing ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. ROI-23 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN REDEVELOPMENT PROJECT, ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 15 - EBERT DOWNTOWN HOUSING THEREIN,ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR AND ACCEPTING TRANSFER OF AUTHORITY FROM THE CITY OF FARMINGTON. WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Farmington (the "EDA") and the City of Farmington (the "City") that the EDA adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for the Downtown Redevelopment Project (the "Project Area") and establish Tax Increment Financing District No. 15 —Ebert Downtown Housing (the "District") and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1794, inclusive, as amended (the "Act"), all as reflected in the Plans and presented for the Board's consideration; and WHEREAS,the EDA has investigated the facts relating to the Plans and has caused the Plans to be prepared; WHEREAS, the EDA or the City has performed all actions required by law to be performed prior to the adoption of the Plans including, but not limited to, notification of Dakota County and Independent School District No. 192, approval of the Plans by the EDA on the date hereof,and the holding by the City Council of a public hearing upon published notice as required by law; WHEREAS,the Minn. Stat. 469.094 authorizes the City Council to transfer the control, authority, and operation of any project (as defined by the Tax Increment Financing Act) located within the City from the governmental agency or subdivision that established such project to the EDA; and WHEREAS, the City Council has determined to the transfer to the EDA the control, authority,and operation of the Development District,the TIF District and any future TIF Districts within the Development District; and 225066v4 WHEREAS,the EDA desires to accept the transfer of the control,authority,and operation of the Development District and the TIF District and any future TIF Districts within the Development District from the City. NOW,THEREFORE,BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10, and finds that the adoption of the proposed Plans conform in all respects to the requirements of the Act and will help fulfill a need to develop in the City, to provide housing opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. 2. The EDA further finds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole,for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private development financially feasible. 3. The boundaries of the Project Area are not being expanded. 4. The reasons and facts supporting the findings in this resolution are described in the Plans. 5. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the plans, as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the City Administrator. 6. Pursuant to Section 469.094,subdivision 2 of the Act,the EDA hereby accepts the transfer of the control, authority and operation of the District and the TIF District and any future TIF Districts within the Development District from the City(the"Projects"). 7. The EDA pledges that the EDA is obligated to perform all agreements, pledges and covenants, and undertakings heretofore entered into by the City with respect to the Projects. 8. Upon approval of the Plans by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate,draft,prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or a Development Agreement with any developer. 9. Upon approval of the Plans by the City Council,the Executive Director is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd.4a. 10. The Executive Director is authorized and directed to forward a copy of the Plan to the Dakota County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Plans, all in accordance with Minnesota Statutes 467.177. 225066v4 Approved by the Board on February 21,2023. Chair ATTEST: Deann Cuenn 1, xecutive Director, 225066A Adoption Date: February 21, 2023 City of Farmington Economic Development Authority City of Farmington, Dakota County, Minnesota MODIFICATION TO THE REDEVELOPMENT PLAN Downtown Redevelopment Project 8c TaX Increment Financing (TIF) Plan Establishment of Tax Increment Financing District No. 15 - Ebert Downtown Housing (a redevelopment district) E H L E RS0 PUBLIC FINANCE ADVISORS Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 BUILDING COMMUNITIES. IT'S WHAT WE DO. -T-ABLE OF • Modification to the Redevelopment Plan for Downtown Redevelopment Project 1 FOREWORD 1 Tax Increment Financing Plan for Tax Increment Financing District No. 15 - Ebert Downtown Housing 2 FOREWORD 2 STATUTORY AUTHORITY 2 STATEMENT OF OBJECTIVES 2 REDEVELOPMENT PLAN OVERVIEW 3 DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED 3 DISTRICT CLASSIFICATION 4 DURATION & FIRST YEAR OF DISTRICT'S TAX INCREMENT 4 ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS 5 SOURCES OF REVENUE/BONDS TO BE ISSUED 6 USES OF FUNDS 7 FISCAL DISPARITIES ELECTION 8 ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS 8 SUPPORTING DOCUMENTATION 11 DISTRICT ADMINISTRATION 11 Appendix A: Map of Downtown Redevelopment Project and the TIF District Appendix B: Estimated Cash Flow for the District Appendix C: Findings Including But/For Qualifications Appendix D: Redevelopment Qualifications for the District Appendix E: Permits Issued Modification to the Redevelopment Plan for Downtown Redevelopment Project FOREWORD The following text represents a Modification to the Redevelopment Plan for the Downtown Redevelopment Project. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Downtown Redevelopment Project. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 15 - Ebert Downtown Housing. For further information, a review of the Redevelopment Plan for the Downtown Redevelopment Project, is recommended. It is available from the Community Development Director at the City of Farmington. Other relevant information is contained in the tax increment financing plans for the tax increment financing districts located within the Downtown Redevelopment Project. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing Tax Increment Financing Plan for Tax Increment Financing District No. 15 - Ebert Downtown Housing FOREWORD The City of Farmington Economic Development Authority (the "EDA"), the City of Farmington (the "City"), staff and consultants have prepared the following information to expedite the Establishment of Tax Increment Financing District No. 15 - Ebert Downtown Housing (the "District"), a redevelopment tax increment financing district, located in Downtown Redevelopment Project. STATUTORY AUTHORITY Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.090 - 469.1082, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for Downtown Redevelopment Project. STATEMENT OF OBJECTIVES The District currently consists of one (1) parcel of land and adjacent roads and internal rights-of-way. The District is being created to facilitate redevelopment in the downtown and construction of 74 units of market rate rental housing in the City. The EDA intends to enter into an agreement with Ten Nineteen Development LLC as the developer. Development is anticipated to begin in 2023. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for Downtown Redevelopment Project. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Downtown Redevelopment Project and the District. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 2 REDEVELOPMENT PLAN OVERVIEW Pursuant to the Redevelopment Plan and authorizing state statutes, the EDA or City is authorized to undertake the following activities in the District: 1. Property to be Acquired - The City currently owns right of way adjacent to the parcel that will be included in the district. The remaining property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED The District encompasses all property and adjacent roads rights-of-way and abutting roadways identified by the parcels listed below. Parcel number Address Owner 14-77000-22-028 310 3rd Street Farmington 310 Inc. Vacated ROW Unassigned City Please also see the map in Appendix A for further information on the location of the District. The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 3 The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. The City currently owns one parcel of the property and adjacent right of way to be included in the District. DISTRICT CLASSIFICATION The EDA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1). • The District is a redevelopment district consisting of one (1) parcel and adjacent right of way. • An inventory shows that parcels consisting of more than 70% of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. • An inspection of the buildings located within the District finds that more than 50% of the buildings are structurally substandard as defined in the TIF Act. (See Appendix D). Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. DURATION & FIRST YEAR OF DISTRICT'S TAX INCREMENT Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. lb., the duration of the District will be 25 years after receipt of the first increment by the EDA or City (a total of 26 years of tax increment). The EDA or City elects to receive the first tax increment in 2025, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2050, or when the TIF Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 4 ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS Pursuant to M.S., Section 469.774, Subd. 7 and M.S., Section 469.777, Subd. 7, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2022 for taxes payable 2023. Pursuant to M.S., Section 469.777, Subds. 7 and 2, the County Auditor shall certify in each year (beginning in the payment year 2025) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the District; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2023, assuming the request for certification is made before June 30, 2023. The final rates for 2023 were not available at the time the District was established. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.774 Subd. 4 and M.S., Section 469.777, Subd. 7, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Downtown Redevelopment Project, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100% of the available increase in tax capacity be used for repayment of the obligations of the EDA or City and current expenditures, beginning in the tax year payable 2025. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 5 Project Tax Capacity Project estimated Tax Capacity upon completion 365,114 Original estimated Net Tax Capacity 9,074 Fiscal Disparities 0 Estimated Captured Tax Capacity 356,039 Pay 2023 Original Local Tax Rate 102.3220% Prelim. Estimated Annual Tax Increment $364,307 Percent Retained by the City 100% Note: Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 26. The tax capacity of the District in year one is estimated to be $46,250. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found that some building permits have been issued in the past 18 months, but none that should increase the original tax capacity. Please see Appendix E for the building permits that were issued. SOURCES OF REVENUE/BONDS TO BE ISSUED The total estimated tax increment revenues for the District are shown in the table below: Tax Increment $ 6,441,402 Interest 644,140 TOTAL $ 7,085,542 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to issue bonds (as defined in the TIF Act) or incur other indebtedness as a result of the TIF Plan. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 6 As presently proposed, the projects within the District will be financed by pay-as-you-go notes and interfund loans. Any refunding amounts will be deemed a budgeted cost without a formal modification to this TIF Plan. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The EDA or City may issue bonds secured in whole or in part with tax increments from the District in a maximum principal amount of $4,113,444. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. USES OF FUNDS Currently under consideration for the District is a proposal to facilitate redevelopment in the downtown and construction of 74 units of market rate rental housing. The EDA and City have determined that it will be necessary to provide assistance to the project for certain District costs, as described herein. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. Land/Building Acquisition $ 1,500,000 Site Improvements/Preparation 300,000 Utilities 75,000 Other Qualifying Improvements 1,594,305 Administrative Costs (up to 10%) 644,140 PROJECT COSTS TOTAL $ 4,113,445 Interest 2,972,097 PROJECT AND INTEREST COSTS TOTAL $ 7,085,542 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 7 Estimated costs associated with the District are subject to change among categories without a modification to the TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.7763, Subd. 2, no more than 25% of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Downtown Redevelopment Project, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in the TIF Plan. FISCAL DISPARITIES ELECTION Pursuant to M.S., Section 469.777, Subd. 3, the EDA or City may elect one of two methods to calculate fiscal disparities. The EDA will choose to calculate fiscal disparities by clause b (inside). ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: EstimatedImpact on Tax Base Preliminary 2022/Pay 2023 Captured Tax Total Net Capacity(CTC) Percent of CTC Entity Tax Capacity upon completionTotal Dakota County 701,251,075 356,039 0.0508% City of Farmington 29,705,793 356,039 1.1986% ISD 192 (Farmington) 50,239,583 356,039 0.7087% City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 8 Impact PercentPreliminary Pay 2023 of PoteEntity Extension ntial Total CTC Taxes Dakota County 18.7980% 18.37% 356,039 $ 66,928 City of Farmington 42.9210% 41.95% 356,039 152,816 ISD 192 (Farmington) 38.2540% 37.39% 356,039 136,199 Other 2.3490% 2.30% 356,039 8,363 102.3220% 100.00% $364,307 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the Preliminary Pay 2023 rate. The total net capacity for the entities listed above are based on Preliminary Pay 2023 figures. The District will be certified under the Final Pay 2023 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S., Section 469.775 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $6,441,402; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. There are, however, existing damage to property, theft, graffiti, and ordinance complaints calls related to the existing building that will likely be reduced with the new project. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The existing building, located at the site, which will be eliminated by the new development, has public safety concerns and is not protected with a sprinkler system. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 9 The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. The on-site improvements are being paid for through the project. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute an estimated $420,690 in sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of the issuance of any general obligation tax increment bonds payable from tax increment revenues from the District on the City's ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $2,408,176; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,183,377; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S., Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 10 SUPPORTING DOCUMENTATION Pursuant to M.S., Section 469.775, Subd. 7 (a), clause 7 this TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S., Section 469.775, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. (i) In making said determination, reliance has been placed upon (1) written representation made by the Developer to such effects, (2) review of the Developer's pro forma; and (3) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the City Council resolution approving the establishment of the District and Appendix C. (ii)A comparative analysis of estimated market value both with and without establishment of the District and the use of tax increments has been performed. Such analysis is included with the cashflow in Appendix B and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. DISTRICT ADMINISTRATION Administration of the District will be handled by the Community Development Director. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing 11 Appendix A: Map of Downtown Redevelopment Project and the TIF District City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing IV .z Southt.c, 14, 3• Hies,C .'!, ras x $tiV ` COUtSE' a a` 305 t 1 09 ri r 329 •i 1 -) c 32 IT T7 N 1 -r 34 205 � 41} � 344 49 }' I Oak St Oak S CL CL ©.. *1 l 412tt .SS_IN Y •�"� i Elm:-S � „ p Farmington ,a, yr . it Downtown Redevelopment Project TIF erD` Boundary , 11 TIF District • 15 1 Appendix B: Estimated Cash Flow for the District City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing Ebert Downtown Apartments- No Inflation City of,MN 74 Unit Market Rate Apartment Building r=*".EHLERS ASSUMPTIONS AND RATF1 DlstrictType: Redevelopment Tax Rates District Name/Number: County District : Exempt Class Rate(Exempt) 0.00% First Year Construction or Inflation on Value 2023 Commercial Industrial Preferred Class Rate(CII Pref.) Existing District-Specify No.Years Remaining First $150,000 1.50% Inflation Rate-Every Year: 3.00% Over $150,000 2.00% Interest Rate: 5.00% Commercial Industrial Class Rate(C/1) 2.00% Present Value Date: 1-Aug-24 Rental Housing Class Rate(Rental) 1.25% First Period Ending 1-Feb-25 Affordable Rental Housing Class Rate(Aff.Renta Tex Year District was Certified: Pay 2023 First $100,000 0.75% Cashflow Assumes First Tax Increment For Development: 2025 Over $100,000 0.25% Years of Tax Increment 26 Non-Homestead Residential(Non-H Res.1 Unit) Assumes Last Year of Tax Increment 2050 First $500,000 1.00% Fiscal Disparities Election[Outside(A), Inside(B),or NA] Inside(B) Over $500,000 1.25% Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rale(Hmstd.Res.) Fiscal Disparities Contribution Ratio 27.9922% Pay 2023 Prelim. First $500,000 1.00% Fiscal Disparities Metro-Wide Tax Rate 133.6670% Pay 2023 Prelim. Over $500,000 1.25% Maximum/Frozen Local Tax Rate: 102.322% Pay 2023 Prelim. Agricultural Non-Homestead 1.00% Current Local Tax Rate:(Use lesser of Current or Max.) 102.322% Pay 2023 Prelim. State-wide Tax Rate(Comm./Ind,only used for total taxes) 34.0000% Pay 2023 Prelim. Markel Value Tax Rate(Used for total taxes) 0.18720% Pay 2023 Prelim. BASE VALUE •' •N (Original Tax Capacity) Building Total Percentage Tax Year Property Current Class After Land Market Market Of Value Used Original Original Tax Original After Conversion Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Ong.Tax Cap. Areal Phase 1 14-77000-22-028 Farmington 310 Inc. 310 3rd Street 185,600 461,700 647,300 1001/, 647,300 Pay 2023 CA Pref. 12,196 Rental 8,091 1 2 Vacated ROW City Unassigned 78,626 0 78,626 100/, 78,626 Pay2023 Exempt Rental 983 264,226 461,700 725,926 725,926 12,196 9,074 Note 1. Base values are for pay 2023 based upon review of County website on 12-6-2022.Vacant ROW estiamted at 10,890 sq.ft.with a value of$7.221sq.ft.consistent with land value for 310 3rd.St. 2. Located in SD#192 and WS:Vermillion River Ebert Downtown Apartments- No Inflation City of,MN �EHLERS 74 Unit Market Rale Apartment t3ulltling PROJECT INFORMATION(Project Tax Capacity) Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes Area/Phase New Use Per Sq.Ft./Unit Per Sq.Ft./Unit Sq.Ft./Units Value Class Tax Capacity CapacitylUnit 2023 2024 2025 2026 Payable 1 Apartments 200,000 200,000 74 14,800,000 Rental 185,000 2,500 25% 75% 100% 100% 2027 1 E)I AL 14,300,000 185,000 Subtotal Residential 74 14,800,000 185,000 Subtotal CommerciallInd. 0 0 0 Note: 1.Market values are based upon comparables from the county assessor. TAX CALCULATIONS ora sCe oca oca isca tate-vm a ar et Tax Disparities Tax Property Disparities Property Value Total Taxes Per New Use Capacity Tax Capacity Ga acit Taxes Taxes Taxes Taxes Taxes Sq. t./Unit Apartments 185,000 0 185,01 189,296 0 0 27,706 217,001 21932.45 TOTAL 185,000 0 185,000 1 189,296 0 0 27,706 1 217,001 Note: 1.Taxes and tax Increment will vary significantly from year to year depending upon values,rates,state law,fiscal disparities and other factors which cannot be predicted. WHA I IS EXC LU DE D F ROM TI F? MARKET VALUE BUT FOR ANALYSIS Total Property Taxes 217,001 Current Market Value-Esl. 725,926 less State-wide Taxes 0 New Market Value-Est. 14,800,000 less Fiscal Disp.Adj. 0 Difference 14,074,074 less Market Value Taxes (27,706) Present Value of Tax Increment 3,150,413 less Base Value Taxes (9,285) Difference 10,923,661 Annual Gross TIF 180,011 Value likely to occur without Tax Increment is less than: 10,923,661 Ebert Downtown Apartments - No Inflation e4EHLERS City of, MN 74 Unit Market Rale Apartment Building TAX INCREMENT CASH FLOW Project Original Fiscal Captured Local Annual Semi-Annual State Admin. Semi-Annual Semi-Annual PERIOD %of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment OTC Capacity Ca acit Incremental Capacity Rate Increment Increment 0.36% 10% Increment Value Yrs. Year Date - - - - 02/01/25 100% 46,250 (9,074) 37,176 102.322% 38,039 19,020 (68) (1,895) 17,056 16,234 0.5 2025 08/01/25 19,020 (68) (1,895) 17,056 32,072 1 2025 02/01/26 100% 138,750 (9,074) 129,676 102.322% 132,687 66,344 (239) (6,610) 59,494 85,971 1.5 2026 08/01/26 66,344 (239) (6,610) 59,494 138,555 2 2026 02/01/27 100% 185,000 (9,074) 175,926 102.322% 180,011 90,005 (324) (8,968) 80,713 208,154 2.5 2027 08/01/27 90,005 (324) (8,968) 80,713 276,055 3 2027 02/01/28 100% 190,550 (9,074) 181,476 102.322% 185,690 92,845 (334) (9,251) 83,260 344,390 3.5 2028 08/01/28 92,845 (334) (9,251) 83,260 411,059 4 2028 02/01/29 100% 196,267 (9,074) 187,192 102.322% 191,539 95,770 (345) (9,542) 85,882 478,150 4.5 2029 08/01/29 95,770 (345) (9,542) 85,882 543,605 5 2029 02/01/30 100% 202,154 (9,074) 193,080 102.322% 197,564 96,762 (356) (9,843) 88,584 609,472 5.5 2030 08/01/30 96,782 (356) (9,843) 88,584 673,732 6 2030 02/01/31 100% 208,219 (9,074) 199,145 102.322% 203,769 101,885 (367) (10,152) 91,366 738,394 6.5 2031 08/01/31 101,885 (367) (10,152) 91,366 801,479 7 2031 02/01/32 100% 214,466 (9,074) 205,392 102.322% 210,161 105,080 (378) (10,470) 94,232 864,956 7.5 2032 08/01/32 105,080 (378) (10,470) 94,232 926,885 8 2032 02/01/33 100% 220,900 (9,074) 211,826 102.322% 216,744 108,372 (390) (10,798) 97,184 989,196 8.5 2033 08/01/33 108,372 (390) (10,798) 97,184 1,049,987 9 2033 02/01/34 100% 227,527 (9,074) 218,453 102.322% 223,525 111,763 (402) (11,136) 100,224 1,111,151 9.5 2034 08/01/34 111,763 (402) (11,136) 100,224 1,170,823 10 2034 02/01/35 100% 234,352 (9,074) 225,278 102.322% 230,509 115,255 (415) (11,484) 103,356 1,230,859 10.5 2035 08/01/35 115,255 (415) (11,484) 103,356 1,289,430 11 2035 02/01/36 100% 241,383 (9,074) 232,309 102.322% 237,703 118,852 (428) (11,842) 106,581 1,348,356 11.5 2036 08/01/36 118,852 (428) (11,842) 106,581 1,405,845 12 2036 02/01/37 100% 248,625 (9,074) 239,550 102.322% 245,113 122,556 (441) (12,212) 109,904 1,463,680 12.5 2037 08/01/37 122,556 (441) (12,212) 109,904 1,520,105 13 2037 02/01/38 100% 256,083 (9,074) 247,009 102.322% 252,745 126,372 (455) (12,592) 113,326 1,576,867 13.5 2038 08/01/38 126,372 (455) (12,592) 113,326 1,632,245 14 2038 02/01/39 100% 263,766 (9,074) 254,692 102.322% 260,606 130,303 (469) (12,983) 116,850 1,687,953 14.5 2039 08/01/39 130,303 (469) (12,983) 116,850 1,742,302 15 2039 02/01/40 100% 271,679 (9,074) 262,605 102.322% 268,702 134,351 (484) (13,387) 120,481 1,796,972 15.5 2040 08/01/40 134,351 (484) (13,387) 120,481 1,850,309 16 2040 02/01/41 100% 279,829 (9,074) 270,755 102.322% 277,042 138,521 (499) (13,802) 124,220 1,903,961 16.5 2041 08/01/41 138,521 (499) (13,802) 124,220 1,956,303 17 2041 02/01/42 100% 288,224 (9,074) 279,150 102.322% 285,632 142,816 (514) (14,230) 128,072 2,008,953 17.5 2042 08/01/42 142,816 (514) (14,230) 128,072 2,060,318 18 2042 02/01/43 100% 296,871 (9,074) 287,797 102.322% 294,479 147,240 (530) (14,671) 132,039 2,111,983 18.5 2043 08/01/43 147,240 (530) (14,671) 132,039 2,162,387 19 2043 02/01/44 100% 305,777 (9,074) 296,703 102.322% 303,592 151,796 (546) (15,125) 136,125 2,213,084 19.5 2044 08/01/44 151,796 (546) (15,125) 136,125 2,262,545 20 2044 02/01/45 100% 314,950 (9,074) 305,876 102.322% 312,978 156,489 (563) (15,593) 140,333 2,312,291 20.5 2045 08/01/45 156,489 (563) (15,593) 140,333 2,360,824 21 2045 02/01/46 100% 324,399 (9,074) 315,325 102.322% 322,646 161,323 (581) (16,074) 144,668 2,409,635 21.5 2046 08/01/46 161,323 (581) (16,074) 144,668 2,457,256 22 2046 02/01/47 100% 334,131 (9,074) 325,057 102.322% 332,604 166,302 (599) (16,570) 149,133 2,505,150 22.5 2047 08/01/47 166,302 (599) (16,570) 149,133 2,551,875 23 2047 02/01/48 100% 344,154 (9,074) 335,080 102.322% 342,861 171,430 (617) (17,081) 153,732 2,598,867 23.5 2048 08/01/48 171,430 (617) (17,081) 153,732 2,644,712 24 2048 02/01/49 100% 354,479 (9,074) 345,405 102.322% 353,425 176,713 (636) (17,608) 158,469 2,690,817 24.5 2049 08/01/49 176,713 (636) (17,608) 158,469 2,735,798 25 2049 02/01/50 100% 365,114 (9,074) 356,039 102.322% 364,307 182,153 (656) (18,150) 163,348 2,781,033 25.5 2050 08/01/50 182,153 (656) (18,150) 163,348 2,825,164 26 2050 02/01/51 Total 6,464,674 (23,273) (644,140) 5,797,261 Present Value From 08/01/2024 Present Value Rate 5.00% 3,150,413 (11,341) (313,907) 2,825,164 Appendix C: Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Tax Increment Financing District No. 15 - Ebert Downtown Housing (the "District"), as required pursuant to Minnesota Statutes (M.S.), Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 15 - Ebert Downtown Housing is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of one (1) parcel and vacant right-of-way, with plans to redevelop the area for redevelopment in the downtown and construction 74 units of market rate rental housing. Parcels consisting of 70% of the area of the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50% of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix D of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 15 - Ebert Downtown Housing permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by a substandard building and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The Developer was asked for and provided a letter and a pro forma as justification that the Developer would not have gone forward without tax increment assistance. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of building acquisition, demolition, site improvements and utilities add to the total redevelopment cost. Historically, construction costs, and site improvement costs in this area have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $14,074,074. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $3,150,413. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $10,923,661 (the amount in clause b less the amount in clause c) without tax increment assistance. J. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for Tax Increment Financing District No. 75 - Ebert Downtown Housing will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Downtown Redevelopment Project by private enterprise. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high- quality development to the City. Through the implementation of the TIF Plan, the City and EDA will increase the availability of safe and decent life-cycle housing in the City. City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing Appendix D: Redevelopment Qualifications for the District City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing hird Street 310 T SUBSTANDARD BUILDING REPORT VAN 1! } IMEMEN Report on findings of the inspection of 310 Third Street in Farmington, Minnesota to determine the qualifications as a Substandard Building for Tax Increment Financing Redevelopment District PREPARED FOR CITY OF FARMINGTON PREPARED BY wsb TABLE OF CONTENTS Executive Summary 3 =3, Purpose of the Evaluation 3 Scope of Work 3 Conclusion 3 Minnesota Statute 469.174, Subdivision 10 Requirements 4 Coverage Test 4 Conditions of Buildings Test 4 __ - - Distribution of Substandard Buildings: 6 Procedures Followed: 6 m Findings: 7 Coverage Test 7 Condition of Building Test 7 Building Inspection 7 Replacement Cost 7 Code Deficiencies 9 System Condition Deficiencies 9 Property Condition Assessment Summary Sheet 11 Building Improvement Cost Projections 12 Building Photographs 13 ' r Sao t. Purpose of the Evaluation WSB was engaged by the city of Farmington to inspect ' t d i ,i and evaluate the building located at 310 Third Street, _ Farmington, Minnesota.This inspection and report were commissioned to allow for the potential creation of a Tax Increment Financing(TIF)Redevelopment `' R District to assist with the redevelopment of the site. The completion of the report identifying the building as being substandard could potentially assist with the determination of the area as qualifying for the creating FIGURE 1 - 310 THIRD STREET, FARMINGTON, MN of the district.The completion of the report would PARCEL A - 14-77000-22-028 INCLUDING PUBLIC PARKING allow for the city to remove the building prior to the AREA TO THE WEST actual determination of the creation of the district.The purpose of WSBwork is to determine if the existing Subdivision 10, it is our professional opinion that the 's facility meets the requirements of a substandard building would qualify as a substandard building and building as defined by the TIF Redevelopment District meet the requirements for a redevelopment district.The standards. basis for this conclusion is: Scopeof Work The site has a coverage calculation of 100 percent p which is above the 70 percent requirement. The proposed area for evaluation includes a single • 100 percent of the buildings on the are substandard parcel with the building to be evaluated located on which is above the 50 percent requirement.The parcel 14-77000-22-028 including a portion of the estimated cost of replacement using$300 per public ROW and parking area to the west of the lot. square foot(LEVELSET-2022 Guide to US Building The building was inspected by the team on January 12, Commercial Construction Costs per Square) 2023,for the development of the report on the status would be$4,530,000(15,100 sf*$300) resulting of the facility.This inspection resulted in the Building in $679,500 to meet the 15%of replacement cost. Code and Condition Deficiency reports for the building As shown in Appendix C the estimated cost of the include in Appendix B.The inspection was completed as building upgrades is$1,003,125. a visual inspection to allow for the potential repurposing of the facility in the future should the facility not meet The substandard buildings are reasonably the requirements of the redevelopment district. distributed on the property. Conclusion This conclusion is based upon the visual inspection of the facility,the information provided by the staff,and After inspecting and evaluating 310 Third Street information from the county GIS system.The actual building and site and applying the current statutory costs associated with the solving of the identified criteria for a Tax Increment Financing Redevelopment deficiencies may be greater but without significant District under Minnesota Statues, Section 469.174, intrusive inspection of the building the exact cost of improvements is unknown. 310 Third Street I Farmington,Minnesota I Substandard Building Report Executive Summary 3 Minnesota Statute 469.174, Subdivision 10 Requirements The inspection of the site was completed using the Parcel Qualifications Requirements: requirements associated with the creation of a Tax Minnesota Statutes,Section 469.174,Subdivision 10(a) Increment Financing Redevelopment District.These (1)requires three tests for occupied parcels: guidelines were followed if the Economic Development Authority determined to have the site cleared prior to A. Coverage Test the identification of a project or the creation of the potential district.Using these guidelines does not imply ...'parcels consisting of 70 percent of the area of the that the city will create a TIF District for any potential district are occupied by buildings,streets, utilities, project but protects the ability to create a district paved or gravel parking lots..." should the city determine they want to create a district. The coverage required by the parcel to be considered Inspection Requirements: occupied is defined under Minnesota Statutes,Section 469.174,Subdivision 10(e),which states"For purposes The properties were inspected in accordance with of this subdivision,a parcel is not occupied by the following requirements under Minnesota Statutes, buildings,streets, utilities, paved or gravel parking lots, Section 469.174, Subdivision 10(c),which states: or other similar structures unless 15 percent of the area of the parcel contains buildings,streets, utilities, paved • Interior Inspection or gravel parking lots,or other similar structures." "The municipality may not make such a determination(that the building is substandard) B. Conditions of Buildings without an interior inspection of the property..." Test • Exterior Inspection and Other Means: Minnesota Statutes,Section 469.174,Subdivision 10(a) "An interior inspection of the property is not states"...and more than 50 percent of the buildings, not required if the municipality finds that. including outbuildings,are structurally substandard to a degree requiring substantial renovation or clearance.' (1)the municipality or authority is unable to gain access to the property after using its best 1. Structurally substandard is defined under efforts to obtain permission from the party that Minnesota Statutes,Section 469.174,Subdivision owns or controls the property;and 10(b),which states:"For purposes of this subdivision,"structurally substandard"shall mean (2)the evidence otherwise supports a containing defects in structural elements or a reasonable conclusion that the building is combination of deficiencies in essential utilities structurally substandard:' and facilities, light and ventilation,fire protection Documentation: including adequate egress, layout and condition of • interior partitions,or similar factors,which defects "Written documentation of the findings and reasons or deficiencies are of sufficient total significance to why an interior inspection was not conducted justify substantial renovation or clearance:' must be made and retained under section 469.175, subdivision 3,clause(1)." 310 Third Street I Farmington,Minnesota I Substandard Building Report Minnesota Statute 469.174,Subdivision 10 Requirements 14 a. We do not count energy code deficiencies Building Code list the Minnesota Energy Code toward the threshold required by Minnesota as"Required Enforcement"area compared to Statutes,Section 469.174, Subdivision 10(b) an additional LIST OF"Optional Enforcement" defined as"structurally substandard",do to chapters. concerns expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales vs The Senior building code Representative for City of Richfield case filed November 13,2001. the Construction Codes and Licensing Division of the Minnesota Department of Labor and 2. Buildings are not eligible to be considered Industry confirmed that the Minnesota Energy structurally substandard unless they meet certain Code is being enforced throughout the State additional criteria,as set forth in Subdivision 10(c) of Minnesota. which states: In a January 2002 report to the Minnesota "A building is not structurally substandard if it is Legislature,the Management Analysis in compliance with the building code applicable Division of the Minnesota Department to new buildings or could be modified to satisfy of Administration confirmed that the the building code at a cost of less than 15 percent construction cost of new buildings complying of the cost of constructing a new structure of with the Minnesota Energy Code is higher than the same square footage and type on the site. buildings built prior to the enactment of the The municipality may find that a building is not code. disqualified as structurally substandard under the preceding sentence on the basis of reasonably Proper TIF analysis requires a comparison available evidence,such as the size,type,and between the replacement value of a new age of the building,the average cost of plumbing, building built under current code standards electrical,or structural repairs,or other similar with the repairs that would be necessary to reliable evidence" bring the current building up to current code standards. In order for an equal comparison "Items of evidence that support such a conclusion to be made,all applicable code chapters include recent fire or police inspections,on-site should be applied to both scenarios.Since property tax appraisals or housing inspections, current construction estimating software exterior evidence of deterioration,or other similar automatically applies the construction cost of reliable evidence." complying with the Minnesota Energy Code, energy code deficiencies should be identified WSB counts energy code deficiencies toward the in the existing structures. '15 percent code threshold required by Minnesota Statutes,Section 469.174,Subdivision 10(c)for the following reasons: The Minnesota energy code is one of the ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. The index page of the 2007 Minnesota 310 Third Street I Farmington,Minnesota I Substandard Building Report Minnesota Statute 469.174,Subdivision 10 Requirements 15 C. Distribution of Our interpretation of the distribution requirement is that the substandard buildings must be reasonably Substandard Buildings: distributed throughout the proposed district as compared to the location of all buildings in the district. For example, if all the buildings in a district are located Minnesota Statutes, Section 469.174, Subdivision 10, on one half of the area of the district,with the other defines a Redevelopment District and requires,one half occupied by parking lots(meeting the 70 percent or more of the following conditions,"reasonably coverage for the district),we would evaluate the distributed throughout the district:' distribution of the substandard buildings compared 1. "Parcels consisting of 70 percent of the area of with only the half of the district where the buildings the district are occupied by buildings, utilities, are located. If all the buildings in a district are located paved or gravel parking lots,or similar structures evenly throughout the entire area of the district,the and more than 50 percent of the buildings, not substandard buildings must be distributed throughout including outbuildings,are structurally substandard the entire area of the district.We believe this is to a degree requiring substantial renovation or consistent with the opinion expressed by the State of clearance. Minnesota Court of Appeals in the Walser Auto Sales, Inc vs City of Richfield case filed November 13,2001. 2. The property consists of vacant, unused, underused, inappropriately used,or infrequently used rail yards,Rail storage facilities,or excessive or vacant Railroad rights-of-way. 3. Tank facilities,or property whose immediately previous use was for tank facilities...' Procedures FoIIowed WSB and its contractors inspected the facility on Based upon the inspection reports the required January 12,2023. improvements were identified and bids were summarized to determine the cost for the For the purposes of our work,we are using the Webster improvements. Dictionary definition of"building"which is"a roofed and walled structure built for permanent use.' For a structure to be considered permanent, it must be secured to a foundation. The inspection of the facility including the building and improvements on the site.Buildings are defined a roofed and walled structure built for permanent use as defined by Websters Dictionary. 310 Third Street I Farmington,Minnesota I Substandard Building Report Procedures Followed:11 6 I E d � Coverage Test #t e 1. The total square foot area of the parcel was r'r" obtained from City records, County GIS,and Site Verification. t �5 2. The total square footage of the building r pl and site improvements on the parcel(s)was obtained from City records, County GIS ` I Mapping,and site inspection. -- lh. J - 3. The percentage coverage for each parcel(s) was computed to determine if the 15 percent minimum requirement was met.The total FIGURE 2 - COVERAGE TEST PARCELS square footage of parcel(s)meeting the 15 PARCEL 14-77000-22-028 INCLUDING PUBLIC PARKING AREA - percentrequirementweredivided into the total COVERAGE OF IMPROVEMENTS - 42,253 SQUARE FEET square footage of the entire area to determine if the 70 percent requirement was met. 2. Replacement Cost The second step in evaluating a building to Finding: determine if it is substandard to a degree requiring substantial renovation or clearance is to The proposed site meets the coverage requirement test under Minnesota Statutes, Section 469.174,Subdivision determine its replacement cost.This is the cost of 10(c),which resulted in the parcels consisting of 100 constructing a new structure of the same square percent of the area being occupied by buildings, footage and type on the site. Replacement costs streets, utilities, paved or gravel parking lots,or other were researched using LEVELSET-2022 Guide similar structures(Figure 2).This exceeds the 70 to US Building Construction Costs and estimates from commercial contractors. percent area coverage requirement for the potential TIF District under Minnesota Statutes,Section 469.174, A replacement cost was calculated by first Subdivision(a)(1). establishing building use(office retail, residential, Condition of Building Test etc.), building construction type(wood concrete, masonry,etc.)and building size to obtain the 1. Building Inspection appropriate median replacement cost,which factors in the costs of construction in Farmington, The first step in the evaluation process is the Minnesota. building inspection.After than initial walk-thru,the inspectors make a judgement whether the building Replacement costs include labor, materials,and has sufficient defects or deficiencies of significance the contractors overhead and profit.Replacement to justify substantial renovation or clearance. If it costs do not include architectural fees, legal does,then the inspector documents with notes and fees,or other soft costs not directly related to photographs code and non-code deficiencies in the construction activities. Replacement cost for the building. building is tabulated in Appendix A. 310 Third Street I Farmington,Minnesota I Substandard Building Report Findings:17 The building footprint is shown below: Parcel ID: 14-77000-22-028 45 X10 A3 17 40 40 1v 30 RETL LOWC 30 (1200) 50 40 30 WAREHOUSE 10 SHPGTRINBH (1200) 30 § (9178) 2a 40 6s 4 40 30 SERV GAR 10 55 (2200) 55 44 ' h41 41 16 15 30 FAIR OFF4rE 1 15 56 Card 1 Code Description Area LhingArea BASE 451 AREA.'SHPCTR'�BH 9,178 0 ENE E'- TRY ESC 102 0 ENE E' TRY-ENC 70 0 EINE E\TRY EN C 70 0 RTP RETL LOIN-V 1,200 0 WHS WAREHOUSE 1,200 0 SRV SERV GAR 2,200 0 FOF FAIR OFC 1,080 0 The determination of the cost of replacement for the facility used the cost of office/retail space to allow for a comparable replacement of the facility. 310 Third Street I Farmington,Minnesota I Substandard Building Report Findings:18 3. Code Deficiencies 10(b),the building s defects,or deficiencies should be of sufficient total significance to justify The next step in evaluating a building is to "substantial renovation"or"clearance" Based on determine what code deficiencies exist with this definition, WSB re-evaluated that building under respect to the building. Code deficiencies are Minnesota Statutes,Section 469.174, Subdivision 10 those conditions for a building which are not in (c), to determine if the total deficiencies warranted compliance with current building codes applicable "substantial renovation or clearance"based on the to new buildings in the State of Minnesota. criteria outlined above. Minnesota Statutes, Section 469.174,Subdivision System condition deficiencies are a measure 10(c), specifically provides that a building cannot if defects or substantial deterioration in site be considered structurally substandard if its code elements,structure,exterior envelop,mechanical deficiencies are not at least 15%of the replacement and electrical components,fire protection and costs of the building.As a result, it is necessary emergency systems, interior partitions,ceilings, to determine the extent of code deficiencies floors,and doors. for the building(s)for the potential declaring of substandard for the potential TIF district. The evaluation of system condition deficiencies was made by reviewing all available information The evaluation was made by reviewing all available contained in City and County records and making information with respect to such buildings contained interior and exterior inspections of the building. in City Building Inspection records and making WSB only identified system conditions deficiencies interior and exterior inspections of the building. WSB that were visible upon our inspection of the utilizes the current Minnesota State Building Code as building or contained in City/County records.We the official code for our evaluations. The Minnesota did not consider the amount of service life used up Building Code is a series of provisional codes for a particular component unless it was an obvious written specifically for Minnesota only requirements, part of that component's deficiencies. adoption of several international codes, and amendments to the adopted international codes. After identifying the systems condition deficiencies in the building,we used our professional judgement After identifying the code deficiencies in the to determine if the list of defects or deficiencies is building, we used R.S. Means Cost Works 2015, of sufficient total significance to justify"substantial Unit and Assembly Costs to determine the cost renovation or clearance" of correcting the identified deficiencies. We were Finding: then able to compare the correction costs with the replacement cost of each building to determine if The building on Parcel 14-77000-22-028 contains the costs for correcting code deficiencies meet the code deficiencies exceeding the 15 percent of new required 15 percent threshold. construction threshold required by Minnesota Statutes, Section 469.174,Subdivision 10(c). Building Code, 4. System Condition Deficiencies Condition Deficiency and Context Analysis reports for the building can be found in Appendix B of this report. If the building meets the minimum code deficiency threshold under Minnesota Statutes, Section In our professional opinion,the building for a potential 469.174,Subdivision 10(c)then in order for such TIF redevelopment district is structurally substandard building to be structurally substandard under to a degree requiring substantial renovation or Minnesota Statutes, Section 469.174,Subdivision clearance, because of defects in structural elements or 310 Third Street I Farmington,Minnesota I Substandard Building Report Findings:19 a combination of deficiencies in essential utilities and facilities, light and ventilation,fire protection including adequate egress,layout,and condition of interior partitions,or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. This exceeds the 50 percent of the structures requirement of Minnesota Statutes, Section 469.174,Subdivision 10a(1). The following is a summary list of the items identified and the estimated cost to resolve these deficiencies: SYSTEM /ITEM STRUCTURAL $25,000 ARCHITECTURAL $150,000 FIRE PROTECTION $68,215 PLUMBING $135,000 HVAC $380,000 ELECTRICAL $225,000 TOTAL ESTIMATED COST $1,003,215 C. Distribution of Substandard Structures This report has focused on the condition of the building as it relates to requirements identified by Minnesota Statutes,Section 469.174,Subdivision 10. However, it is also important to look at the distribution of substandard buildings throughout the geographic area of the potential TIF District(Figure 3). Finding: Using the definition listed in Part 2 the parcels with substandard buildings are reasonably distributed across the site. FIGURE 3 1 AREA FOR DISTRICT OUTLINED IN RED. 310 Third Street I Farmington,Minnesota I Substandard Building Report Findings:110 AV Appendix A Property Condition Assessment Summary Sheet O E m� � c v c c m v •E « v m p a c = v . m v x w 'o y o � u � :o o y � � p m `o E « a m c o m v o v m o om _ � u v c a m a c E o v Z m' c c u a a v o m v E o w u o p0 Ul N N v V n o E N N i0 d Q` v 0 L � O T� d N O � C C � � O > O d> E E - d V Q -p O. O O .ti wN 0 tt N O p a o n v m v 0 a Q F Appendix B Building Improvement Cost Projections r 0 Construction Ip Services, Inc. Building Value with Integrity BUDGET ESTIMATE Date 1/24/2023 Job Name: 216 Em Street, Farmington, MN 55024 Contact Jim Gromberg—WSB Any work which has not been included in this document should be considered not to be included. Structural Overall interior/exterior review of the building there were not any noticeable deficiencies with the superstructure. Budget: General Maintenance$25,000 Architectural Demolition of the existing space to get to a shell/white box/shell condition with new ADA bathrooms(4) to be framed, rocked, and finished to meet ADA requirements. Budget: Demo/Drywall $150,000.00 Fire Protection Provide necessary control valves, check valves, spare head box, and drains. Provide necessary horn/strobe, flow, and tamper switches, (wired by others). Provide 4"x2-1/2"x2-1/2" brass FDC on the address side of the building or as directed by the AHJ for Fire Department Connection. Provide ALL approved drawings and calculations in accordance with NFPA and Local fire protection code requirements. Provide a 200psi hydrostatic test in the presence of the AHJ to ensure that all new piping is free from leaks.This Budget includes sales tax, and permit fees. Budget: 68,215.00 Plumbing: MEN'S RESTROOM#1: -Floor set tank type water closet on modified location -Wall-hung urinal with a manual flush valve on modified location -Wall-hung lavatory sink with a lever handle faucet -Floor drain WOMEN'S RESTROOM#1: 2-Floor set tank type water closets on modified locations 2-Wall-hung lavatory sinks and faucets on modified locations -Existing floor drain to remain CBS I 1124 Zealand Avenue North I Champlin,MN 55316 lmwagner@cbsconstruct.coml 612-289-4592 00 Construction Services, Inc. Building Value Willi Integrity -6 Gallon electric water heater with drains to restroom floor drain—add recirculation pump -High-low drinking fountain on modified location UNISEX RESTROOM#1: -Floor set tank-type water closet on the existing location UNISEX RESTROOM#2: -Wall-hung lavatory sink and faucet on the existing location -Single drinking fountain on modified location -6 Gallon electric water heater with drains to restroom floor drain—add recirculation pump GARAGE#1: -Flammable waste interceptor -Existing trench drain to remain GARAGE#2: -Flammable waste interceptor -Floor drain MISCELLANEOUS: -Cut and cap plumbing as necessary to facilitate the removal and disposal by others -Concrete take up and patch, maximum 6"thickness, dumpster by others. Plumber not responsible for under slab utilities, including electrical -All necessary walls and ceilings to be opened and patched by others -PEX-A water pipe material -PVC and cast iron drain waste and vent -Pipe insulation of hot water lines -Plans -Permit Budget:$155,000.00 HVAC HVAC Scope to upgrade the building to current building ventilation codes: 1. Reclaim and remove existing RTUs and split systems. 2. Provide and install (8) 5-ton high-efficiency RTUs with economizers and new duct distribution 3. Provide (2) restroom exhaust systems 4. Provide engineering and drawing. 5. Balance and permit. Budget:$380,000.00 CBS 11124 Zealand Avenue North I Champlin, MN 55316 mwagner@cbsconstruct.coml 612-289-4592 Construction Services, Inc. Building Value with Ir»tegrity Electrical - Demo electrical and indoor lighting - 228 f/I 2x4 led flat panel - 12-F/I exit light w/heads - 1-$4000.00 allowance in electrical switching - 1-$15,000.00 elec allowance in general electrical wiring - 3-Relocate elec panel and circuits - 8-Wire 5-ton RTU's - 1-Lift fee - 1-elec permit Budget$225,000.00 Total Budget: $1,003,215.00 Clarifications/Notes/Exclusions: 1.See ALLOWANCES where noted,ALLOWANCES are our rough estimate to complete the work based on the information provided. (None provided) 2.Pricing valid for 30 Days from Bid Date. 3.Estimated pricing based on SOW from Dan Hustad. 4.Work will begin approximately 5 days after Permit is approved. 5.All work scheduled for regular working hours,U.N.O. 6.No winter/summer conditions included,U.N.O. 7.No architectural or engineering fees are included,U.N.O. 8.No locksmith,keying,re-keying is included,U.N.O. 9.Where Bid and Plan differ,notes provided on Bid prevail. 10.No furniture relocating nor moving of building stock materials are included,U.N.O. 11.Low Voltage cabling is not included. 12.Repairs,relocation, or replacement of existing HVAC equipment is not included,U.N.O. 13.Removal of hazardous or toxic materials/chemicals is not included in this estimate 14.The budgetary estimate is based on site oberservations only Sincerely, !�,/� �/ ' .-.Z� CBS Construciton Services CBS 11124 Zealand Avenue North I Champlin,MN 55316 lmwagner@cbsconstruct.coml 612-289-4592 Appendix C Building Photographs I�i1lll�w wq , t lwr STORAGE AREA A CEILING AREA 310 Third Street I Farmington,Minnesota I Substandard Building Report Building Photographs 114 { 1 i " —�e 4K s y STORAGE AREA fix' 4tk { v GARAGE AREA 310 Third Street I Farmington,Minnesota I Substandard Building Report Building Photographs 15 k i �1q't. Ili i q BATHROOM AREA { ta- MAIN BATHROOM 310 Third Street I Farmington,Minnesota I Substandard Building Report Building Photographs 116 _ l + { MAIN BATHROOM AREA i 1t CEILING REPAIR MAIN AREA 310 Third Street I Farmington,Minnesota I Substandard Building Report Building Photographs 117 Appendix E: Permits Issued City of Farmington Economic Development Authority Tax Increment Financing District No. 15 - Ebert Downtown Housing f I PERMIT City of Farmington Permit Type: Electrical 430 Third Street crrvor Permit Number: FA048022 Farmington,MN 55024-1328 FARMINGTON *FA048022* 1 (651)280-6830 www.fai-mingtommn.gov � Date Issued: 04/06/2021 Site Address: 310 3rd St Lot: 02 Block: 22 Addition: Town of Farmington PID: 14-77000-22-028 14-77000-22-028* Use: i Description: Sub Type: Commercial Remodel I Work Type: Repair/Replace Description: Hook up compressor Commen#s• Permit was not issued-Ken spoke to contractor and advised to wait on pulling the permit. Fee Summary: Description Amount Revenue Code j Electrical Permit Fee(1) $10.50 1001.4327 Inspection-Electrical(1) $31.50 1000.2020 Processing Fee $10.00 1001.4327 Surcharge-$1.00 $1.00 1000.2420 { Total: $53.00 g3 I r i I 3 Contractor: - Applicant - Owner: St Joseph Electric Inc Dakota Motor 245 Marie Ave E 310 3rd St 1 St.Paul MN 55118 Farmington MN 55024 (952)994-6941 j PLEASE CALL 2 DAYS IN ADVANCE TO SCHEDULE INSPECTIONS 651-280-6830 or 651-280-6840 INSPECTION CARD AND APPROVED PLANS MUST BE ON SITE OR INSPECTION WILL NOT BE COMPLETED. CALL MIKE HAWKE FOR ELECTRICAL INSPECTIONS 952-997-6822, 8 AM-9:30AM M-F ]INSPECTIONS AVAILABLE MON-THURS 10 AM-2 PM j i S Applicant/Permitee: Signature Issued By: Signature i i i f i PERMIT i City of Farmington Permit Type: Building 430 Third Street cirvor= Permit Number: FA049446 Farmington,MN 55024-1328 FARMINGTON *FA049446* (651)280-6830 www.fanningtommn.gov Date Issued: 10!06/2021 i I i Site Address: 310 3rd St Lot: 02 Block: 22 Addition: Town of Farmington PID: 14-77000-22-028 *14-77000-22-028* Use.- Description: se:Description: Sub Type: Commercial Construction Type: Work Type: Reroof Description: Census Code: - Occupancy: Zoning: Square Feet: 0 t I Comments: i i Fee Summary: Description Amount Revenue Code Base Fee $704.15 1001.4305 Valuation: 45,000.00 Surcharge-$1.00 $1.00 1000.2420 i s Total: $705.15 f 1 1 I i i s i i i Contractor: Owner: - Applicant - i Farmington Enterprises LLC 2400 Blaisedell Ave S#100 Minneapolis MN 55404 (651)497-5325 s i ND PLEASE CALL 2 DAYS IN ADVANCE TO SCHEDULE INSPECTIONS 651-280-6830 or 651-280-6840 INSPECTION CARD A 1 APPROVED PLANS MUST BE ON SITE OR INSPECTION WILL NOT BE COMPLETED. CALL MIKE HAWKE FOR ELECTRICAL INSPECTIONS 952-997-6822, 8 AM-9:30AM M-F IINSPECTIONS AVAILABLE MON-THURS 10 AM-2 PM i 310 i 3 i — — S Applicant(Permitee: Signature Issued By: Signature i i CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: Consider Authorizing I nterfund Loan in Connection with TI F No. 15 DATE: February 21, 2023 INTRODUCTION/DISCUSSION There are costs that the EDA may incur as part of the establishment of a tax increment financing(TI F) district that are deemed eligible to be reimbursed from tax increments from that district.These costs must be identified in the TI F Plan in order to be reimbursed (land/building acquisition, site improvements/preparation, public utilities, other qualifying improvements)and an interfund loan must be authorized.The eligible expenses can then be reimbursed from excess increment from the district, after the other obligations of the district are satisfied. (Section 469.178, Subdivision 7 of the TI F Act). The EDA has incurred qualified costs, and it is recommended that an interfund loan be authorized in the amount of up to$120,000 with an interest rate of 5-percent annum (the"I nterfund Loan"). The EDA may at any time make a determination to forgive all or a portion of the outstanding principal amount and accrued interest on the I nterfund Loan and not use the tax increments to reimburse itself for qualifying and eligible expenses. ACTION REQUESTED Consider the attached resolution, authorizing an I nterfund Loan for certain costs in connection with TI F District No. 15. ATTACHMENTS: Type Description D Resolution EDA Resolution - I nterfund Loan TI F No 15 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. R02-23 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 15 BE IT RESOLVED By the Board of Commissioners of the Economic Development Authority of the City of Farmington(the"Authority") as follows: Section 1.Back round. 1.01. The Authority is proposing the creation of Tax Increment Financing District No. 15 -Ebert Downtown Housing (the "TIF District"), a redevelopment district, within the Downtown Redevelopment District(the "Redevelopment Project")pursuant to Minnesota Statutes, Sections 469.174 to 469.1794,as amended(the"TIF Act")and Sections 469.090 to 469.1082, as amended (the"EDA Act").In connection with establishment of the TIF District,the Authority will approve a Tax Increment Financing Plan for the TIF District(the"TIF Plan"). 1.02.The Authority may incur certain costs related to the TIF District,which costs may be financed on a temporary basis from legally available Authority or City funds. 1.03.Under Section 469.178, Subdivision 7 of the TIF Act,the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority may incur certain costs identified in the TIF Plan consisting of land/building acquisition, site improvements/preparation, public utilities, other qualifying improvements, interest and administrative costs (the "Qualified Costs"), in an aggregate amount of up to $120,000 which may be paid using Authority or City funds legally authorized for such purpose,and to reimburse such funds from tax increments from the TIF District when received. 1.05.The Authority intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2.Repayment of Interfund Loan. 2.01.The Authority hereby authorizes the advance of up to $120,000 in legally available Authority or City funds to pay the Qualified Costs, together with interest at the rate of 5%per annum(the"Interfund Loan"). Interest shall accrue on the principal amount of each advance from 225226v3 the date of such advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270C.40,and Section 549.09,both in effect for calendar year 2023. The interest rate will not fluctuate. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid annually on December 31 (the "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the City Administrator,through the date of last receipt of tax increment from the TIF District. 2.03.Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as tax increment from the TIF District received by the Authority from Dakota County in the twelve-month period before any Payment Date. Payments shall be applied first to accrued interest,and then to unpaid principal.Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on a parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04.The principal sum and all accrued interest payable under this resolution is prepayable in whole or in part at any time by the Authority without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the Authority in accordance with Section 469.178,subdivision 7 of the TIF Act,and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution.The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including without limitation the Authority and the City.Neither the State of Minnesota,nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon which may remain unpaid after the final Payment Date. 2.06.The Authority may at any time make a determination to forgive all or a portion of the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07.The Authority may from time to time amend the terms of this resolution to the extent permitted by law,including without limitation amendment to the payment schedule and the interest rate;provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. Section 3.Effective Date. This Resolution is effective as of the date of its adoption. Approved by the Board on February 21,2023. 2252260 Chair ATTEST: NDeann6uenn (�xe=cluiive Director 2252260 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: 2022 Year End Report-Open to Business/MCCD DATE: February 21, 2023 INTRODUCTION/DISCUSSION I n 2022 the EDA entered into a two-year Joint Powers Agreement to participate in the Open to Business Program.Through this agreement,the Metropolitan Consortium of Community Developers (MCCD)will provide technical assistance and access to capital to small businesses and potential entrepreneurs in Dakota County as part of the Open to Business Program.The annual cost to Farmington as part of the agreement is$5,150. Natalie Mouilso is the Business Advisory assigned to work with the Dakota County communities. During 2022 Natalie(or her designee) met with City Staff on a monthly basis to discuss business referrals, business leads, status of projects, and different trainings that Open to Business would be offering. In 2022, 16 Farmington businesses connected with Open to Business and 17 residents-representing about a 50-50 split between start up and existing businesses seeking technical assistance or capital. The attached report represents a summary of activity in 2022. Staff will continue to meet with the Open to Business representative on a monthly basis and refer businesses to their services. ACTION REQUESTED No action requested.This is for informational purposes only. ATTACHMENTS: Type Description D Backup Material 2022-Open to Business YE Report D Backup Material 2022-23 Joint Powers Agreement-Open to Business .11LIMCCD Metropolitan Consortium of Community Developers Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org,952-451-6390 Clients Served YTD Client Inquiry 17 Existing-Challenged 16 Existing-Opportunity 51 Pre-start planning 39 Start-up 47 Total 170 Business Owner Demographics YTD Low-Income Owned 58 BIPOC or Immigrant Owned 90 Woman Owned 85 Financing&Access to Capital YTD Approved (YRLY Total) $ 576,000.00* Equity (YRLY Total) $ 593,000.00 Facilitated (YRLY Total) $5,545,300.00** *Includes$30,000 in forgivable loans. **Includes$11,300 in microgrants. Program Hours TA Program HRS 1St QTR 300.50 227 2nd QTR 317.30 187 3rd QTR 218.00 182 4th QTR 257.13 200 Total 1,092.93 796 TA:Client Meetings, Providing Resources, Client Calls,Client Deliverables, Loan Packaging Program HRS:City Initiatives, Program Outreach, Public Events, City Meetings, Research, Data/Admin,General Inquiries Dakota County 4th Quarterly Report 12.31.2022 Industry Segment YTD Construction/Real Estate 8 Food 26 Health/Fitness 21 Manufacturing 6 Consulting 15 Retail 37 Service 39 Technology 5 Wholesale/Distribution 3 Other 7 Total 170 Referral Source YTD Bank Referral 14 Entrepreneur 4 Friends and Family 8 Municipality 71 MCCD Partner 16 Other 22 Web 35 Total 170 City YTD Business Resident Apple Valley 16 16 Burnsville 23 15 Eagan 25 22 Farmington 16 17 Hastings 12 9 Inver Grove Heights 10 8 Lakeville 16 14 Mendota Heights 6 5 Rosemount 15 15 South St. Paul 13 10 West St. Paul 7 5 Other Dakota Co. 2 1 Other/No Data 12 31 2 Dakota County 4th Quarterly Report 12.31.2022 Direct Financing&Access to Capital Business Type:Cooperative grocery store Business Location: Hastings Referred by:City of Hastings MCCD Financing: $50,000 Owner Equity: $135,000 Other Financing:$430,000 Overview:This longstanding community grocery co-op offers natural, mostly organic,affordable, healthy, local food and has deep relationships with local farmers and small businesses in the community. Financing was obtained for a move within the current business location to an adjacent space that is almost double the square footage. The expansion will allow the business to significantly increase their selection of products,streamline operations,gain market share, increase profitability, retain 10 existing jobs, and create 8-10 new jobs for the community. MCCD began working with the client in December 2021. The project was underwritten over the course of four months in partnership with the City of Hastings and a local Hastings bank. Business Type:Towing service Business Location: Minneapolis Owner Residence: Rosemount Referred by: Bank Partner MCCD Financing: $150,000 Owner Equity: $207,000 Other Financing:$2,700,000 Overview: MCCD was approached by one of our banking partners to provide gap financing for the purchase and improvement of the property where this towing business has operated since its inception in 2018. The business is currently the largest towing company in Minneapolis with contracts servicing public and private entities throughout the area. After a difficult 2020 as a result of COVID this business rebounded in full in 2021 and seized the opportunity to purchase the property from the owners when it became available in 2022. In addition to the purchase of the property,financing will also be utilized for significant improvements on the building and the exterior of the site. The project retains 8 employees and 15 full time contract drivers.The business is located in an underserved community. Business Type: Home Healthcare Business Location:Shakopee Owner Residence: Lakeville Referred by: Bank Partner MCCD Financing: $112,000 including a $25,000 forgivable loan Owner Equity:$89,000 Other Financing:$344,000 Overview: MCCD provided gap financing for a BIPOC-owned community and home care business that provides compassionate senior care services across the Twin Cities. The financing was in partnership with a bank and financed the purchase of residential real estate for the operation of in-home services. MCCD financing will provide additional capital to get the new line of business up and running and to assist with working capital for the first 6 months while they secure licensing. 3 Dakota County 4th Quarterly Report 12.31.2022 Business Type: Candy&Party Supply Store Business Locations: Inver Grove Heights Owner Residence: Inver Grove Heights Referred by:Community Partner MCCD Financing: $24,000 including a$5,000 forgivable loan Owner Equity:$5,000 Overview: MCCD was introduced to this family of business owners through a community partner. The family operates a full-service Mexican restaurant in Inver Grove Heights and saw an opportunity to expand when the space next door became available. The restaurant's customers have often inquired about where to find Mexican candy and party favors and were driving to St. Paul to make their purchases. The family approached MCCD for working capital to help them establish a candy store with pinatas and party supplies.The new store creates two jobs and the business is owned and operated by BIPOC, immigrant business owners. Business Type: Insurance Agency Business Location: Hastings Owner Residence: Hastings Referred by: Bank Partner MCCD Financing: $115,000 Owner Equity:$32,000 Other Financing:$140,000 Overview: MCCD partnered with a local Hastings bank to provide financing for a longstanding Hastings business owner to purchase a new building in downtown Hastings and complete necessary renovations on the building. The business owner has operated a successful insurance agency in downtown Hastings for many years and the move to purchase her own space there has been a long-term business goal. Business Type:Thai Grocery Store (approved Jan 2023) Business Locations: Burnsville&South Saint Paul Owner Residence:Woodbury Referred by: Bank Partner&City of South Saint Paul MCCD Financing:$125,000 Owner Equity:$125,000 Other Financing:$1,920,000 Overview: MCCD approved gap financing for a BIPOC-owned business expansion. The owners currently operate a Thai grocery store in Burnsville and are expanding the business to include a new wholesale and distribution business line with a second location in South Saint Paul to include extra storage for the grocery inventory as well as a deli walk up window. The project is a ground up construction of a multitenant building which will include space for two additional tenants. MCCD financing will be utilized for construction costs. "This is great!1 can't believe these services are offered by the city."-Eagan business owner 4 Dakota County 4th Quarterly Report 12.31.2022 Business Expansion Grants Business Type: Photography Business Location: Burnsville Referred by: Municipality MicroGrant:$4,000.00 Grant Application Facilitated by MCCD Overview:This low-income,women business owner learned of the Open to Business program through the City of Burnsville's newsletter and reached out in early 2022. The business was established in 2020 and after a few setbacks early on,the business needed a restart in 2022. After working with Open to Business on organization, record keeping, marketing,and networking the missing piece was working capital for supplies, inventory,and entry fees for art fairs and seasonal events. Through Open to Business,the business received a$4,050.15 microgrant for business expenses in August 2022. This influx of capital will allow the business to re-launch and set the owner up for a strong selling season. Business Type: Paralegal&Logistics Business Location: Eagan Referred by:Community partner MicroGrant:$4,800.42 Grant Application Facilitated by MCCD Overview:This BIPOC,veteran, low-income business owner was struggling to reestablish his paralegal business post-COVID. The business owner reached out to Open to Business for financing to start a new line of business: logistics and freight forwarding. Financing was not feasible, and the business owner had already exhausted his resources obtaining the certifications and training necessary to start this new business line. The microgrant will provide the capital needed to purchase equipment and technology and give him working capital for a bit of a runway/a ramp-up period. Business Type:Online Retail Business Location: Burnsville Referred by: Municipality MicroGrant:$2,500 Grant Application Facilitated by MCCD Overview:This client was a low-income woman head of household business owner. She became unemployed and started her online retail company in the fall of 2022.After working with Open to Business to find grant funding,develop a business plan, and get connected to the Legal Clinic,she still needed capital for inventory and equipment cost.Through Open to Business,the business received a $2,500 microgrant for business expenses in December 2022. "Our partnership with the Open to Business program has been extremely positive. We have partnered to provide our customers with creative financing solutions that meet their needs. In addition,the expertise that they provide with start-up,expansion and organization has benefited the business community. We are grateful for their assistance in helping us serve our customers."—VP Commercial Banking,Dakota County "I really appreciate what you guys do!" -South St.Paul business owner 5 Dakota County 4th Quarterly Report 12.31.2022 Highlights, Networking,&Outreach Funding&Policy Updates • MCCD is named an approved lender in MN DEED'S new Minnesota Loan Guarantee Program (MNLGP). MNLGP is funded through the US Department of the Treasury's State Small Business Credit Initiative. • In partnership with Minnesota's Department of Human Services, MCCD launches Minnesota's first Home and Community Based Services Workforce Development cooperatives grant program. Direct support professionals or retiring business owners who are interested in developing employee-owned cooperatives can apply for the cooperatives grant opportunity via MCCD's website. Ten grants are available to qualifying applicants and selected groups will receive up to a total of$100,000,split over two years,to help direct care workers establish their own employee-owned cooperative businesses or transition a current business to an employee-owned cooperative. More information available via MCCD &MN DHS. • In collaboration with Main Street Alliance and the Workplace Justice Lab at Rutgers University,and funding from the City of Minneapolis, MCCD rolled out the Payroll Subsidy Program,a pilot program to subsidize payroll services and provide support to implement those services for small business owners in Minneapolis. The program aims to reimagine what holistic business support and labor enforcement can look like in the region and address disparities that exist in the ability of small business owners to provide good jobs and comply with labor laws. More information available here. Staffing • MCCD added two new accounting and bookkeeping consultants to the Open to Business team in Q4. Wendy Hines has nearly 20 years of business advising experience with NDC and 40 years of bookkeeping and tax preparation experience as the owner of Beatrice David &Associates. Luis Rodriguez brings more than 10 years of accounting experience. Both consultants will assist clients with accounting-related questions and bookkeeping. MCCD is pleased to provide up to 10 free hours of bookkeeping,QuickBooks, and accounting related assistance to all clients by way of these consultants. Programming, Partnerships,&Trainings • October 7: Field Trip Fridays continued with a business tour of Lakeville. MCCD staff was joined by the City staff,the Chamber,and the CDA to meet local business owners and say hello to existing clients. • October 27: MCCD hosted the 33rd Annual Meeting where we celebrated our team,community impact, donors, policy supporters,and consortium members. The night started with spoken word by MCCD's Ray Camper, keynote speaker Representative Mohamud Noor, music by Kashimana which was followed by stories of success from our community members. • November 10: MCCD hosted a virtual Minnesota Small Business Law Q&A webinar in partnership with the University of Minnesota's Law School. Legal experts provided transaction-based legal assistance to small businesses on a variety of subject matters such as entity formation, owner distributions,commercial lease review and more.This virtual Q&A was attended by 16 business owners plus MCCD staff. • November 10: Dakota County CDA promoted Open to Business at the Cocktails and Conversations tabling event at Brackett's Crossing County Club in Lakeville. • December: MCCD developed and rolled out a digitized Client Intake Form. The form is accessible online and syncs automatically with our database. The new capabilities will streamline the intake process for clients and business advisors alike and greatly reduce data entry time for MCCD staff. 'Thank you for your thoroughness."-Rosemount business owner 6 Dakota County 4th Quarterly Report 12.31.2022 Advertising&Outreach • In Q4, banker and lender outreach occurred specifically with CorTrust Bank, Merchants Bank, and Think Bank. • In addition to banker outreach, in Q4 written or in-person presentations were made and/or networking efforts were made including the City of Lakeville business tour on Oct. 7 and regular meetings with the Workforce Development Board's Business Services/Economic Development Committee. Partnership development/ updates occurred with the University of MN Law School, Minnesota State University Mankato, Dakota County CDA,the City of Farmington,the City of South Saint Paul,the City of West Saint Paul, and the City of Eagan. • The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. New ads will be created and updated periodically so keep checking back.The library was created in Q1 2022 to help streamline how we share ads with partners and to give partners direct access to choose ads that meet their needs.Access the Ad Library here. MCCD Client Profile Meet Cassandra Manning,owner of Thread and Clover Clothing Boutique in Rosemount. Cassandra's professional background is in retail management and she was a stylist for years with Stitch Fix. This experience set the stage for her big dream of opening her own boutique in her home city of Rosemount. Cassandra's approach to her business is to provide highly personalized styling services and a perfectly curated experience for her customers. After launching her store online, Cassandra embarked on a months long journey of careful planning to open the brick and mortar location. After finding the right space and completing a short build-out,Thread and Clover opened its doors in September 2022 with five employees. M alt OVI &C ER 1 oil "The City of Rosemount has been incredibly supportive! Everyone was so easy to work with and very small business friendly. I think that Rosemount is the best city to open a new business in and I love that they offer the Open to Business service. The help you provided came at just the right time for us. I appreciate how responsive you were and how quickly you were able to meet. There's so much that I didn't know when I got started with this process and I've learned a lot in the past four months!" Thread and Clover 15094 Claret Ave W, Rosemount, MN 55068 https://threadandclovermn.com/ 7 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 JOINT POWERS AGREEMENT Open to Business Program THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of January 1, 2022, by and between the DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY(the "CDA"), a public body corporate and politic organized and existing under the laws of the State of Minnesota (the "State"), and each of the BURNSVILLE ECONOMIC DEVELOPMENT AUTHORITY, CITY OF LAKEVILLE, CITY OF MENDOTA HEIGHTS, INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY, EAGAN ECONOMIC DEVELOPMENT AUTHORITY, HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY, ROSEMOUNT PORT AUTHORITY, FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, AND WEST ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA (each individually a "Local Government Entity" and together the "Local Government Entities"), each a political subdivision of the State. RECITALS: A. In order to pursue common goals of fostering economic development,the CDA and the Local Government Entity Cities desire to engage the Metropolitan Consortium of Community Developers, a Minnesota non-profit corporation ("MCCD") to undertake the "Open To Business Program" (the"Program")within Dakota County (the"County"). B. Pursuant to the Program, MCCD will provide technical assistance and access to capital to small business and potential entrepreneurs in the County. C. The CDA and the Local Government Entities propose to jointly exercise their common economic development powers to undertake the Program. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the CDA and each of the Local Government Entities, each party does hereby represent, covenant and agree with the others as follows: Section 1. Representations. Each of the Local Government Entities and the CDA makes the following representations as to itself as the basis for the undertaking on its part herein contained: (a) It is a political subdivision of the State of Minnesota with the power to enter into this Agreement and carry out its obligations hereunder. Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 (b) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which it is now a party or by which it is bound,or constitutes an event of default under any of the foregoing. Section 2. Powers to be Exercised. The powers to be jointly exercised pursuant to this Agreement are the powers of the CDA and the Local Government Entities under Minnesota Statutes, Chapter 469, to undertake activities to promote economic development within their respective jurisdictions. Section 3. Method for Exercising Common Powers; Funds. The CDA, on its own behalf and on behalf of the Local Government Entities, will initially enter into an agreement with MCCD in substantially the form attached hereto as Exhibit A (the "Agreement") to engage MCCD to operate the Program within Dakota County. The CDA and each of the Local Government Entities will make payments to MCCD as described in Exhibit A of the Agreement. The CDA may from time to time execute and deliver documents amending, modifying or extending the Agreement as it deems necessary or convenient, provided, that no such document will adversely affect services provided to, or amounts payable by, any Local Government Entity without the prior written consent of such Local Government Entity. Section 4. Limited Liability. Neither the CDA nor the any of the Local Government Entities shall be liable for the acts or omissions of the other in connection with the activities to be undertaken pursuant to this Agreement. To the extent permitted by law, (a) the CDA hereby indemnifies the Local Government Entities for costs associated with claims made against the Local Government Entities directly relating to actions taken by the CDA, and (b) each Local Government Entity hereby indemnifies the CDA for costs associated with claims made against the CDA directly relating to actions taken by such Local Government Entity. Nothing herein shall be deemed a waiver by the indemnifying party of the limits on liability set forth in Minnesota Statutes, Chapter 466; and the indemnifying party shall not be required to pay, on behalf of the indemnified party, any amounts in excess of the limits on liability set forth in Minnesota Statutes, Section 466.04, less any amounts the indemnifying party is required to pay on behalf of itself, its officers, agents and employees for claims arising out of the same occurrence. Section 5. Conflict of Interests; Representatives Not Individually Liable. The CDA and each of the Local Government Entities, to the best of its knowledge, represents and agrees that no member, official or employee of their respective bodies shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official or employee of the CDA or any Local Government Entity shall be personally liable with respect to any default or breach by any of them or for any amount which may become due to the other parry or successor or on any obligations under the terms of this Agreement. 2 Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714GD0481189 Section 6. Term; Distribution of Property. The term of this Agreement shall expire on December 31, 2023. There is no property which will be acquired by the CDA or any Local Government Entity pursuant to the Program which would need to be distributed at the end of the term hereof. Section 7. Notices and Demands. A notice, demand or other communication under this Agreement by any party to another shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally to the person and at the addresses identified on each signature page hereto, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. [Remainder of page intentionally left blank] 3 Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 IN WITNESS WHEREOF, the CDA and the Local Government Entities have caused this Agreement to be duly executed in their respective names and behalf as of the date first above written,with actual execution on the dates set forth below. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY 3/28/2022 SZ Dated: By SFo2A 57dE724CE Aa Its Executive Director Notice Address: Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123 Attn: Lisa Alfson, Director of Community and Economic Development A- 1 Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY Dated: 1221 2,02.1 Q ` Its By _ 4�QLCWUAkUJ Its Notice Address: 7100 147th Street W. Apple Valley,MN 55124 S -6 Joint Powers Agreement PDFMade With PDF • • DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 BURNSVILLE ECONOMIC DEVELOPMENT AUTHORITY j Dated: Januaryl8,2022 By Its Inte 'n ty Manager Its Economic Development Autho ' President Notice Address: 100 Civic Center Parkway Burnsville, MN 55337 Attn: City Manager S -3 Joint Powers Agreement PDFIIMade With PDF Editor DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 EAGAN ECONOMIC DEVELOPMENT AUTHORITY Dated: 8 2Z By Its Presi ent By , Its Executive Director Notice Address: 3830 Pilot Knob Road Eagan,MN 55122 Attn: Jill Hutmacher,Director of Community Development S -2 Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY Dated: 01/18/2022 By Its C hc-iV By w-"Rk2 Its Executive Director Notice Address: 430 Third Street Farmington,MN 55024 Attn: Gamvnvnvti" Oeye,[DpM2nt- Dwe-c+o - S - 10 Joint Powers Agreement PDFMade With PDF Editor DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD0481189 HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY Dated: �"c,���nc,;y I��a � By QLUO Q . t Bruce Goblirsch Its President By _ / ' John man Its ecutive 'rector Notice Address: 101 East 4th Street Hastings, Minnesota 55033 Attn: Executive Director i 1 S - 8 Joint Powers Agreement PDF�IMade With PDF Editor DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Dated: 2-7-22 By ItsPres i�, By C16k,— Its---fxecUtj*yei Notice Address: 8150 Barbara Avenue Inver Grove Heights, MN 55077 Attn: Heather Rand S - 7 PRP I) Made With PDF • DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 CITY OF LAKEVILLE,MINNESOTA Dated: / �-— By Gee tet' Its Mayor r By Its City Clerk Notice Address: 20195 Holyoke Avenue Lakeville,MN 55044 Attn: Community and Economic Development Director S -2 Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 CITY OF MENDOTA HEIGHTS 0 ad�a v!�_ Dated: � B YA- �xat7o'�' Its By its ; Notice Address: 1101 Victoria Curve Mendota Heights,MN 55118 Attn: Community Development Director S -2 Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 ROSEMOUNT PORT AUTHORITY Dated: k-U Z�'" By Its V71A By ` Its Notice Address: 2875 145th Street Rosemount,MN 55068 Attn: S - 9 Joint Powers Agreement PDFIIMadeWith PDF Editor DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1 189 SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY Dated:—January 3.2022 By Its. –1resident By Its Exe%tive Director Notice Address: 125 Third Ave.No. South St. Paul,MN 55075 Attn: Executive Director S - 11 Joint Powers Agreement DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 WEST ST. PAUL ECONOMIC D--E--V��E--LOPMENTAUTHORITY Dated: (?'V t Its President iT By r kL � Its true Director Notice Address: 1616 Humboldt Avenue West St. Paul, MN 55118 Attn: Executive Director S - 2 Joint Powers Agreement PDFIIMade With PDF • • DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 Exhibit A Contract for Services for the Open To Business Program Joint Powers Agreement - I DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 Contract for Services for the Open To Business Program THIS AGREEMENT is dated January 18, 2022, and is between the Dakota County Community Development Agency("CDA") and Metropolitan Consortium of Community Developers, a Minnesota nonprofit corporation ("MCCD"). WHEREAS,the CDA, on behalf of itself and the 11 political subdivisions of the State of Minnesota listed on Exhibit A here to (the "Local Government Entities"),which each have powers with respect to a city with a population over 10,000 (collectively the"Municipalities"), wishes to engage MCCD to render services under the model known as "Open To Business,"an initiative providing small business technical assistance and capital to existing businesses and residents and other parties interested in opening a business within Dakota County(the"County") (the "Initiative"); and WHEREAS, MCCD has successfully provided the services required to administer and carry out the Initiative in Dakota County from 2013—2021; and WHEREAS,pursuant to CDA Resolution No. 21-6500, adopted on December 14, 2021 (the "Resolution"),the CDA is authorized to enter into this agreement with MCCD for the Initiative; and WHEREAS,pursuant to the Resolution and certain joint powers agreements to be entered into between the CDA and the Local Government Entities"the "Joint Powers Agreements"),the CDA will act as fiscal agent for the Local Government Entities in connection with this Agreement; and WHEREAS, the CDA will pay from its own funds 50%of the fee charged by MCCD for the Initiative in the Municipalities and 100%of the fee charged by MCCD for the Initiative in the small cities and townships within the County with populations less than 10,000 residents ("Small Cities and Townships"), as further described herein and in Exhibit A; and WHEREAS,pursuant to the Joint Powers Agreements,the Local Government Entities will be required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A, representing the remaining 50%of the fee charged by MCCD for the Initiative in the Municipalities. Now therefore, for good and valuable consideration,the receipt of which is hereby acknowledged,the parties agree as follows" TIME OF PERFORMANCE The term of this Agreement and the period during which MCCD will provide services hereunder will commence upon the first day of January 2022, and automatically renew January 1, 2023. This agreement will terminate on December 31, 2023, subject to earlier 1 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 termination as provided herein. MCCD will perform services necessary to carry out the Initiative as promptly as possible, and with the fullest due diligence. COMPENSATION The CDA will compensate MCCD for its services hereunder an amount equal to One Hundred Fifty Thousand Dollars ($150,000) ("Contract Amount"). The CDA will pay such amount in two equal installments,the first no earlier than March 1 st and the second no earlier than September 30th, upon receipt of invoices from MCCD. Subject to the limits above,payments will be due within 15 days of receipt of the respective invoices. The portion of the Contract Amount payable from Participation Fees will be payable by the CDA only from and to the extent such Participation Fees are paid by the respective Local Government Entities. In the event a Local Government Entity does not pay the CDA its Participation Fee in amounts and by deadline described in Exhibit A,the CDA will notify MCCD,and MCCD will immediately cease the Initiative in that Municipality. Upon such termination, the Contract Amount will be reduced by an amount equal to the Participation Fee which such Local Government Entity did not pay and the amount the CDA would have paid as a matching payment. SCOPE OF SEVICES MCCD will provide technical assistance and access to capital to existing businesses, residents and those parties interested in starting a business in any of the Municipalities, Small Cities, and Townships within Dakota County as further described on Exhibit B and Exhibit C hereto,which sets forth the Dakota Open To Business Program Scope of Services. REPORTING MCCD will submit quarterly reports to the CDA in form and substance acceptable to the CDA. Reports will provide information in the agreement for County and will include a sub-report for each Municipality and each of the Small Cities and Townships Reports will include the following information: ➢ Number of inquiries, entrepreneurs, and businesses served ➢ Hours of technical assistance provided ➢ Hours of dedicated program (including but not limited to—city initiatives,program outreach,public events, city meetings,research, client follow-up, general inquiries) ➢ Type of business/industry ➢ Annual sales revenue ➢ Number of businesses opened 2 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 ➢ Number of businesses expanded/stabilized ➢ Number and amount of financing packages ➢ Demographic information on entrepreneurs ➢ Business city and/or resident city The required reporting schedule is as follows: ISt quarter January—March, report due April 30th 2nd quarter April—June,report due July 31 st 3`d quarter July—September, report due October 31 st 4th quarter October—December,report due January 31 st In addition to the foregoing, MCCD will provide additional reports as reasonably requested by the CDA or Local Government Entities. Client confidentiality being a core component of the service model,MCCD will not typically report specific client/business information in its regular reporting, However, where permission from the client, MCCD will produce profiles of successful clients for publication dissemination and media release. PERSONNEL MCCD represents that it has, or will employ or contract for, at its own expense, all personnel required to perform the services necessary to carry out the Initiative. Such personnel will not be employees of, or have any contractual relationship with,the County,the CDA, or any of the Local Government Entities.No tenure or any other rights or benefits, including worker's compensation, unemployment insurance, medical care, sick leave, vacation pay, severance pay, or any other benefits available to County, CDA, or any of the Local Government Entities' employees shall accrue to MCCD or employees of MCCD performing services under this Agreement.MCCD is an independent contractor. All of the services required to carry out the Initiative will be performed by MCCD and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. Natalie Mouislo shall be the dedicated MCCD Initiative advisor for the County, CDA, and Local Government Entities for the duration of this Agreement. If there are material' changes to Ms. Mouilso's position with MCCD during the time of this Agreement,the CDA will be informed by MCCD immediately. 1 Material is defined as any event or events that would prohibit Ms.Mouislo from being the full-time Initiative Advisor for Dakota County. 3 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 USE OF CDA OFFICE SPACE The CDA will make available a cubicle space for MCCD personnel at the CDA office building for use by MCCD in carrying out the Initiative. MCCD personnel will have access to the CDA meeting rooms, wireless internet services, copy machines, and printers. MCCD personnel shall comply with all CDA office rules and policies regarding the use of CDA office space, equipment, and internet access. If the CDA, in its sole direction, determines that MCCD personnel has failed to comply with CDA office rules and policies, MCCD personnel will be required to vacate the CDA office and the CDA will cease to provide MCCD office space to carry out the Initiative. INTEREST OF MEMBERS OF THE CDA AND OTHERS No officer, member, or employee of the CDA and no member of its governing body, and no other public official or governing body of any locality in which the Initiative is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Initiative,will participate in the decision relating to this Agreement which affects he/she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement. ASSIGNABILITY MCCD will not assign any interest in this Agreement and will not transfer any interest in the same without the prior written approval of the CDA. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal laws, statutes, and applicable regulations of the State of Minnesota and the ordinances of the Local Government Entities. INSURANCE General Terms. In order to protect itself and to protect the CDA under the indemnity provisions set forth above Contractor shall, at Contractor's expense, procure and maintain a policy of Professional Liability(PL) insurance covering the term of this Contract. Such policy of PL insurance shall apply to the extent of, but not as a limitation upon or in satisfaction of,the indemnity provisions herein. All retentions and deductibles under such policies of insurance shall be paid by Contractor. Each such policy of insurance shall contain a clause providing that such policy shall not be cancelled by the issuing insurance company without at least 30 days' written notice to the CDA of intent to cancel. Certificates. Prior to or concurrent with execution of this Contract, Contractor shall file certificates of such policies of insurance with the CDA. Failure to Provide Proof of Insurance. The CDA may withhold payments or immediately terminate this Contract for failure of Contractor to furnish proof of insurance coverage or to comply with the insurance requirements as stated above. INDEMINFICATION MCCD agrees to defend, indemnify, and hold harmless the County,the CDA,the Local Government Entities, and each of their respective officials, agents,volunteers and 4 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 employees from any liability, claims, causes of action,judgements, damages, losses, costs, or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of MCCD, its subcontractors, anyone directly or indirectly employed by MCCD or any if its subcontractors, and/or anyone for whose acts and/or omissions MCCD may be liable in the performance of the services required by this Agreement, and against all loss by reason of failure of MCCD to perform any obligation under this Agreement. NOTICES A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail,portage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD is addressed or delivered personally to: Tyler Hilsabeck Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis, MN 55407 (b) In the case of the CDA is addressed or delivered personally to: Lisa Alfson, Director of Community and Economic Development Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123 Or at such other address with respect to any party as that party may designate in writing and forward to the other as provided in this Section. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. NON-DISCRIMATION In connection with its activities under this Agreement,MCCD will not violate any Federal or State laws against discrimination. DEFAULT AND CANCELLATION Failure of the MCCD to perform any of its obligations under this Agreement to the satisfaction of the CDA will constitute in a default hereunder. If a default occurs, MCCD will have 60 days to cure any and all defaults and come into compliance with this Agreement. MCCD will immediately notify the CDA of any default. MCCD and the CDA will develop agreed upon milestones that must be met within the 60-day period to avoid cancellation of this Agreement. 5 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 The primary default would be the loss of Ms. Mouilso as the dedicated MCCD Initiative advisor. If Ms. Mouilso is no longer the dedicated MCCD Initiative advisor,MCCD will be expected to meet the following milestones within the 60-day period— L MCCD will inform the CDA within 48 hours of Ms. Mouilso's employment departure notice. 2. The name and contact information of the interim MCCD Initiative advisor for Dakota County will be shared with CDA and Local Government Entities within three business days of Ms. Mouilso's departure notice. 3. MCCD will continue to actively work with Dakota County clients on a full-time basis in the event of a default and respond to client communication in a timely manner as defined elsewhere in this Agreement. 4. MCCD will continue to track and input client data to ensure the quarterly report is accurate when generated (see REPORTING section,page 2, for details). 5. MCCD staff, including the interim MCCD Initiative advisor,will meet with CDA staff weekly (at a minimum)to provide updates on clients, Initiative work in Dakota County, etc. Local Government Entities will be invited to these meetings. 6. MCCD will continue to actively market the MCCD Initiative in the same capacity as prior to the default. 7. Hiring a new dedicated MCCD Initiative advisor for Dakota County is not expected within 60 days of the default;however, steps to securing a new, qualified, full-time MCCD Initiative advisor will occur within the 60 days. Steps taken to secure a new advisor will be regularly communicated to CDA. If a default is not remedied in 60 days, and/or the agreed upon milestones are not met within the 60 days,the CDA may cancel this Agreement in its entirety by five additional days' written notice to MCCD. MINNESOTA LAWS GOVERN 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. The appropriate venue and jurisdiction for any litigation will be those courts located within the County. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid, illegal or unenforceable,the remaining provisions will not be affected. 6 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By: Tony Schertler, Executive Director Date: 1/19/2022 MCCD 0-Heip W. Gl..... ,.,.4, By: Printed Name: Elena Gaarder Printed Title: Chief Executive Officer Date:1/19/2022 7 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 Exhibit A 2022 & 2023 Local Government Entity Annual Participation Fee Schedule Municipality Local Government Total CDA Local Government Entity Fee Share of Entity Participation Fee Fee Lakeville City of Lakeville $18,900 $9,450 $9,450 Eagan Eagan Economic Development $18,900 $9,450 Authority $9,450 Burnsville Burnsville Economic $18,650 $9,325 $9,325 Development Authority Apple Valley Apple Valley Economic $16,200 $8,100 Development Authority $8,100 Inver Grove Inver Grove Heights Economic Heights Development Authority $13,000 $6,500 $6,500 Rosemount Rosemount Port Authority $10,400 $5,200 $5,200 Farmington Farmington Economic $10,300 $5,150 $5,150 Development Authority Hastings Economic Hastings Development and $10,300 $5,150 $5,150 Redevelopment Authority South St.Paul South St.Paul Economic $10,100 $5,050 $5,050 Development Authority West St. Paul West St. Paul Economic $10,100 $5,050 $5,050 Development Authority Mendota City of Mendota Heights $5,600 $2,800 $2,800 Heights Small Cities n/a $7,550 $7,550 $0 and Townships Total $150,000 $78,775 $71,225 8 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 Exhibit B Dakota Open To Business Program Scope of Services Open To Business ("OTB") Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Municipalities' and Small Cities' and Townships' businesses,residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota County. MCCD will dedicate one full time staff person based in Dakota County to provide the Technical Assistance Services ("Dakota OTB Staff"). In addition, MCCD will make available the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open to Business Program. Technical assistance includes, but is not limited to,the following: ➢ Business plan development ➢ Feasibility analysis ➢ Marketing ➢ Cash flow and other financial projection development ➢ Operational analysis ➢ City and State licensing and regulatory assistance ➢ Loan packaging, and other assistance in obtaining financing ➢ Help in obtaining competent legal advice MCCD Dakota OTB Staff will be available to meet clients at the CDA office building,various Municipality city halls or at the client's place of business. During the COVID-19 pandemic, MCCD Dakota OTB staff will only meeting clients in-person if the MCCD Dakota OTB staff are comfortable; otherwise, client meetings will be held virtually and/or on the phone. Open To Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD's Emerging Small Business Loan Program(see Exhibit C Small Business Loan Program Guidelines below). MCCD also provides it's financing in partnership with other community lenders, banks or Local Government Entities interested in making capital available to residents and/or businesses in their community. 9 DocuSign Envelope ID:22A7AFE3-A4E2-4385-9423-714CD04B1189 EXHIBIT C Small Business Loan Program Guidelines Loan Amounts: • Up to $25,000 for start-up businesses • Larger financing packages for established businesses • Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: • Borrowers must be a"for-profit" business. • Business must be complimentary to existing business community. • Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds: • Loan proceeds can be used for working capital, inventory, building and equipment and general business operations. Interest Rates: • Loan interest rate is dependent on use,term and other factors, not to exceed 7%. Loan Term Length: • Loan repayment terms will generally range from three to five years, but may be substantially longer for major asset financing such as commercial property. Fees and Charges: • Borrowers are responsible for paying all customary legal and other loan closing costs. 10 CITY OF O 430 Third St.,Farmington,MN 55024 FA R M I N GTO N © 651-280-6800 . ® Farmington M N.gov TO: Economic Development Authority FROM: Deanna Kuennen,Community Development Director SUBJECT: Approval of Sponsorship Agreement with the Minnesota Real Estate Journal(MREJ) DATE: February 21,2023 INTRODUCTION/DISCUSSION At the January EDA meeting,Staff requested reallocating funds within the existing budget to provide funding for marketing initiatives.Business Growth is a strategic priority of the City Council,however no specific dollars were earmarked in the 2023 EDA budget to market the community for economic development purposes.The EDA was supportive of this proposal-which would reallocate the$60,000 identified for Developer Payments budget line item for a combination of marketing and a new business micro grant program. OL,MTA.LIIVE 12 OBJECT ACCOUNT BUDGET COMPANY ACCOUNT SUBSID-Y DESCRIPTION 2023 _ 02000 11RA/EDONOMC DEVEIOPNENT . INTEREST G 00 -ECONOMIC DEVELOPMENT �_. _ }rrINTERESNO,TRASFERS T9 _ 1OD000 02000 HRAECONOMIC DEVELOPMENT £'_s _ OPERAT NU TRANSFERS 500000011vwMltnnMrin/rtkn CMn.rM FunO Told OM1I InlOml 3t GOO 00� 0M. S.-i...a Ch.r9.. _ 02000-HRNECO OMIC DEVELOPMENT c1 _ PROFE990NALSER:ICE9 -00 02000-HRMECONOMICDEVELOPMENT b-1C3 LEGAL '00000 02000 HRAJECONOMCDEVELOPMENT 6120 _ INSURANCE 55000 02000 HRA/ECO UMC DEVELOPMENT 5{50 Ol1TSIDE PRINTING 25000 I ._ 020W-HRAIECONOMIC DEVELOPMENT 5455 LEGAL NOTI ES 100.00 022000-HRAECO O IC DE✓E OPMENT _ 80 TR 1BERDUES 6 LICENSURE _ 2500.00 ED"(5300).-IP(57W).001.r 02000 HRAECONOMIC OEVELO ENT Jp MI EACIEREIMBURSEMENT 9 BURS NCE 350000 C2000-HRA,ECONOMCOEVEL O NT C5 MLEAOE EI B 9MAINT 100000 C OGC HRAECONOM1tIC DE:E LO MENT _ 505 EOl11PMEIJT REPAIR MAINTENANCE 150D OO S.urCNlnk(51200), 133001.Calartla'ly(51001 C2GGC-HRAECONOMIC DEVELOPMENT 46550 DEVELOPER PAYMENTS 5000000 fVC.WMWRodovef 0m.n1PrO0r FUNDS TO BE USED FOR MARKETING INITIA S AND MICRO GRANT 02000-HRA'ECONOMC DEVELOPMENT —C PROGRAMMINOEWENSE 1CGCC CC 0~W BuMrl.m(253001-tlllY 1.lal OM"r Services d Char cs81 510 W Tdr✓02000- CDEVFIOP.ENi 2A910AOI Amalnr o/kuuV Dalerks rN.dO After the EDA meeting,Staff reached out to the Minnesota Real Estate Journal(MREJ)regarding a 2023 partnership.MREJ is part of REjournaIs,the largest producer of commercial real estate content across the Midwest and Texas,operating in 16 states.M REJ focuses on events,print,and digital content-for the commercial real estate-related businesses.Partnering with MREJ provides a venue to share the Farmington brand,have access to the Minnesota commercial brokerage community who are representing projects and clients,and educate the target audience on Farmington opportunities.Based on these conversations-Staff is recommending that the EDA approve a 2023 sponsorship agreement with the Minnesota Real Estate Journal(MREJ)in the amount of$7500.The sponsorship agreement would include the following: • Ads—M REJ Team will work with Farmington to develop rotating advertisement suite to be included in the print publications. • Banner Ads on the M REJ website from time to time • Editorial Opportunities—no limit on the number of articles that can be sent in to be included in online and print publications • Booth at events Farmington is a sponsor(4 summits/conferences plus 1 networking event). • List of Attendees from events Farmington is a sponsor. • Speaking Opportunities • Free Passes to events • Events to include for speaking and or a booth would be WIRE,Land Development Industrial Development,Data Center,annual cornhole tournament. The retail value of sponsoring the events alone is well over$10,000,and the booth/speaking opportunity would be on March 15,2023-at the Land Development Conference. Attached is a current list of MREJ based events(dates and topics subject to change),the REjournals"REConnecting in 2023"media kit,and the 2023 Sponsorship Agreement. ACTION REQUESTED Approve Sponsorship agreement with the Minnesota Real Estate Journal and authorize the Executive Director to execute contract. ATTACHMENTS: Type Description D Backup Material 2023 MREJ Calendar of Events n Rarkiin hAntprial RFInllrnal Mprlin Kit o Backup Material 2023 Farmington-MREJ Sponsorship Agreement Minn.,sota REjournal , Since 1985 2023 January 12th 18th Annual Apartment Summit January 25th 15th Annual Construction Summit February 23rd 3'd Annual Indoor Cornhole Winter Classic March 1st 17th Annual Capital Markets Summit March 15th 191h Annual Land Development Summit April 12th 6th Annual Women in Real Estate Summit April 20th MREJ Awards Gala April 26th 1St Annual Data Center and Cannabis Real Estate Summit June 8th 11th Annual Mid-Year Commercial Real Estate Forecast May 5th 19th Annual Medical Properties Summit ' May24th 1"Annual Southeast Suburban Summit June 1st 111h Annual Mid-Year Apartment Summit June 15th 17th Annual Property Management Summit June 19th 22nd Annual MREJ Golf Classic#! @Rush Creek Golf Club July 20 3rd Annual Outdoor Cornhole Summer Classic-Lord Fletchers August 21St 22nd Annual MREJ Golf Classic#2 @ Rush Creek Golf Club September 8th 2"d Annual Northwest Suburban Development Summit September 22nd 111h Annual Multi Family Finance Summit October 4th 101h Annual Downtown Development Summit October 11th 17th Annual Senior Housing October 25 191h Annual 1031& Net Lease Summit November 3rd 25th Annual Industrial Real Estate Summit November 10th 11th Annual Energy Summit December 1st 19th Annual Office Summit December 6th 4th Annual Holiday Party December 13th 9th Annual Affordable Housing Summit Month TBD—3`d Annual Rochester Forecast Summit r • � � :s Yds � _ _ . i rte` �a � I T{ � J '4. connecting Midwest Minnesota Illinois Texas Chicago Industrial Northeast Ohio REnews REjournal REjournal REDnews Cl journal Properties z LU REJournals, W Since 1985 ' Midwest ABOUT US I!, .,0 Enews 85 . REjournals is the largest producer of commercial real estate content across the Midwest and Texas. We provide commercial real estate news, information, and networking that is both timely and local in 16 states. If you want to grow your commercial real estate-related business, we provide the products you need. Take advantage of our events, print publications and digital strategies to make the most of your marketing in 2023. Texas REDnews EVENTS Clicks, opens, views, and any other metric can't replace the ultimate Key Performance Indicator: Handshakes. It's time to get out and network again. Make 2023 the year you reconnect in-person with customers, dealmakers, and prospects. Sponsoring and speaking at our events – held throughout the �, Minnesota Midwest and Texas – remains the best way to build your brand, share market to journal. information, and build new industry connections. Make this the year you commit to increasing the number of handshakes. Your company needs a voice, REjournals events play this role. PRINT REjournals produces seven print publications across the Midwest and Texas. —, Illinois Want to get your marketing message to a targeted group of dealmakers and RE journal. decisionmakers? Our print publications give you the tools. Our audience spread Since 7985 ' across all sectors of the commercial real estate business look forward to our in-depth journalism. We provide the analysis that our readers rely on to stay ahead of trends and monitor their local market's real estate activity. Our print publications help people make decisions, and because of that,they are read thoroughly. Your marketing strategy needs a voice, REjournals print publications play this role. , Chicago Industrial CIP journal. DIGITAL 0 Properties Our digital presence is the fastest-growing segment of our business. We have expanded our delivery methods with a website that publishes new content daily, email newsletters that provide targeted CRE news to tens of thousands of subscribers and social media posts that highlight the biggest stories of the day. Our goal?We strive to reach our audience wherever they are. Your message 1 Northeast Ohio needs a voice, REjournals digital plays this role. Properties Page 2 1 —1946 ' Ard t-t..I Consbu ton I Real Estate z LU EVENTS w -• for 150+ Events LL 16 States PICS 42 To 29.8% 27.1% Represent Tenants Represent Capital & Landlords 25.5% Making Development or Deals 21.2% Decisions Making Property Decisions Page 3 2023 Topics Apartment Industrial Z a Building Operations Net Lease Capital Markets Office J Q Construction Repositioning o Data Centers Retail &Restaurant Development Supply Chain, Distribution & Logistics Forecast Women in Real Estate Hotel & Hospitality ...Plus More! With over 15 topics covered and 150+ events hosted nationally, REjournals has an event for you! See what events are coming to a city near you! Speaking and sponsorship opportunities are available — contact your sales rep today • • C• - • 0 0 in . _ . 0 vents Z f , a s t J t: { r + 40 a � , t �v - wit- A � � t IP. y ag'rs �1 iw AWARDS _ , l Eve Sociavents Z ' • a . fir` I Mr-Irl, p _ �HNWIP10NSHIP JURNaME NT* 014s ow rr CNAM�t1tP CNA`MP\�ONS'HIP ■ i I- r ! >r f BAN/ aKIDGEWXTE[R IlANK R lour ® �'" '� WHO M � � n BEArVOP ,,CONSTRUCTION 7. v • J Q F R � mamaarseuvr • . • • ,a°osWoi i Sg i1 ((fie w 1 mer'fl s e_ rket r lettings a erup jY Retail Continues to Be The Product of Choice for Investors FRr1A.In11�oyNe.LRRA Men nwry.Reebie nlbrw6Uaw Reinrvghm daminlM --- -=—� --' --,� . tha mNd.m.Mr nctw l>RRt,�nromm�t Sln lnNw,tm utl eMq MfullGnn. '•�"'°•�'�� -��--- - � D 36,629 22,548 17,756 REDnews Midwest Illinois Real Estate News Real Estate Journal PrAF. bl,eire SOW-ban ledenrerq kuCtmf•Iwir,nlnenUl go"., Rn,a nustemo �. �'i The Badger State has earned a spot next to hicago and Northwest Indiana as the re 'ods most highly regarded.But why? �I'= L _ 4 h the Mo in Avon N �6 ntir.,tivlrxe5 tomrt lfi.l nl•ir le teCh,ac.Cwnnwtlates pi dq,,.UH a1,rx HQ 71513 79021 89410 Minnesota Chicago Northeast Ohio Real Estate News Industrial Properties Properties W Midwest W REnews Since 1985 ' 2023 Editorial Calendar Editorial Contributions to Midwest Real Estate News Magazine Email our editor, Dan Rafter, at drafter@rejournals.com with industry news and trends; new hires or promotions; sales and leases, and upcoming events.In addition to appearing in print,news will also appear at www.rejournals.com and will be distributed via broadcast email every Tuesday and Thursday.For byline article submission and direction please contact the editor prior to writing the article.All articles must be exclusive to MREN.All art and photography attachments should be 300 dpi pdf orjpg files(see advertising specifications). Editorial attachments are preferred as Word documents. Please do not embed photos in copy. Deadline for bylined articles: 2nd Friday of the month for consideration in following month's edition. For editorial direction,please contact: Dan Rafter,editor,p 630.444.0477,drafter@rejournals.com SPECIALADUE � CLOSE/ METRO • FOCUS FEB/MAR DUE Milwaukee,Chicago, Minnesota, Missouri Construction, 2/17 Cincinnati Multifamily Finance APR/MAY Indianapolis, Kentucky, Nebraska, Industrial Review, 4/14 Columbus,Des Moines Tennessee Multifamily,Net Lease Omaha, Iowa, Kansas, Retail,CRE Finance, JUN/JUL Milwaukee/Madison, Michigan Affordable Housing 6/16 Western Michigan Multifamily Finance, AUG/SEPT Kansas City,Chicago, Ohio,Wisconsin Construction Overview, Detroit,Cleveland Economic Development, 8/18 Business Perks Healtchare Best of the Best Nashville, Louisville, Women in OCT/NOV St.Louis Indiana, Illinois Development+Finance, Commercial 10/13 Multi-Family,Industrial Real Estate Omaha,Kansas City, Construction,Finance, DEC/JAN Minneapolis/St.Paul Michigan,Indiana Year in Review Hall of Fame 12/11 Page 8 Midwest • Z newsw 2023 Print Advertising Z WIDTH X HEIGHT 6X(Net Rates) w Full Page $4,335 $3,520 $3,245 93/4"x 13" Half Page $2,845 $2,305 $1,960 93/4"X 65/Sn Third Page 7%4"x 65/8" $2,000 $1,635 $1,350 ■ I I Quarter Page 43/a"x 65/a" $1,635 $1,355 $1,225 3 Cover Page $4,560 $3,730 $3,470 Directory $325 $325 $325 Listing AD SUBMISSION GUIDELINES : ACCEPTABLE MATERIALS Print-optimized/high-resolution PDF or JPG.Files must be 300 dpi. FOR ADVERTISING INFORMATION AND RATES/DISCOUNTS/PACKAGES, CONTACT: Marianne Grierson Mark Menzies Frank Biondo Ernest Abood Susan Mickey Vice President of Sales SVP,Publisher Vice President of Sales Vice President&MW Conf Classifieds Manager 312.644.7168 708.622.0074 248.670.2691 Series Sales Director 773.575.9030 mgrierson@rejournals.com menzies@rejournals.com fbiondodrejournals.com 312.644.7119 smickey@rejournals.com eaboodC@rejournals.com Page 9 V) F- • z W w �ilgiil!I OHIO! DIRECTORY" DIRECTORIESISSUE MIDWEST Architecture/Design-Build Firms February/March Asset/Property Management Firms 2/17 Developers Multifamily Finance Brokerage Firms April/May Law Firms/RE Attorneys 4/14 Project/Construction Management Firms Asset/Property Management Firms June/July Construction Cos./General Contractors 6/16 Finance Firms Architecture/Design-Build Firms Brokerage Firms August/September Developers 8/18 Economic Development Corporations Law Firms/RE Attorneys MREN WIRE 10/13 Asset/Property Management Firms October/November Construction Cos./General Contractors 10/13 Multifamily Finance Firms December/January Annual Resource Guide 12/11 All Catagories Run Directory Listing Details _ Each issue will feature directories that include a company logo, company contact info, key contacts, 35-word services provided, rMfAlkfer', R71)ell,Moe's ton C OMPANY Washington StrrSuite 9rn� The 35-word description. 2 NpGropBroadbent 7 � COST: $325 per Listing e: ammyo .cnm ntammy BRegional Property Manager Company esded:Learokerage-Acquisition- Ucyclopment on TO PLACE YOUR DIRECTORY LISTING, CONTACT: anleaBrr aisa ful srrvke real estate company in business since 197]1 Leasing) Susan Mieke ragnagemeuisitions.Development and Tenant Re ireseniAllcm nl retali confers y ghoe Midwe Classifieds Manager le actions/ :La-Z-Boy,The RoomPlace.Kohls,At liome,PeisMart,Ashley Furnilum-, Bill Center, Art 8 Education,The District Tan,Oltia,Depot,Office Max, 773.575.9030 atell,Moe's west brill,Noodles and Company. smickey@rejournals.com Page 10 V) Illinois w journal w _ . ......... 2023 Editorial Calendar Editorial Contributions to IREJ Email our Senior Staff Writer,Mia Goulart,at mia.goulart@rejour- Editorial attachments are preferred as Word documents. nals.com with industry news and trends; new hires or promotions; Please do not embed photos in copy.Deadline for bylined sales and leases and upcoming events.In addition to appearing in articles:2nd Friday of the month for consideration in following print,news will also appear at www.rejournals.com and will be month's edition. distributed via broadcast email every Wednesday and Friday.For byline article submission and direction please contact the editor For editorial direction,please contact: prior to writing the article.All articles must be exclusive to IREJ.All Mia Goulart,Senior Staff Writer art and photography attachments should be 300 dpi pdf orjpg mia.goulart@rejournals.com files(see advertising specifications). The Illinois Real Estate Journal is a community Company Profile:An in-depth look at Development Showcase:The Illinois Real Weekly E-Newsletter:Every Wednesday newspaper forthe local commercial real commercial real estate firms making an Estate Journal gets the story behind marquee and Friday,the Illinois Real Estate Journal estate industry.Each issue of IREJ covers impact in Illinois.Whether it is corporate developments and examines what makes sends its weekly eBlastto approximately the hottest topics and trends pertaining to a giants,successful private firms or new them a success. 15,000 subscribers.The eBlast is filled with specific commercial real estate sector. ventures,we highlight firms wrth a unique Q&A:The editor of the Illinois Real Estate the latest breaking news,industry profiles and story to tell. Journal often sits down with a highly company announcements. The geographic focus gives an in-depth Professional Profile:A look at a successful successful professional with a unique story Directories:Each issue will feature look at major markets throughout Illinois, commercial real estate professional, to tell. directories that include:company logo, highlighting the important stories and trends highlighting the reasons for the person's News Briefs:Our Briefs sections highlight company contact info,key contacts,35-word in each area. success. the deals and dealmakers that make the services provided,35-word company CRE Future Leaders:Once a week we profile commercial real estate industry such a vibrant description.Low cost advertising,maximum a young professional who has had early business. exposure. success and who is projected to be a leader in the real estate industry. � I . . CLOSE/ ISSUE EDITORIAL . February Multifamily,CRE Finance,Construction Trends, Northeast Indiana 2/10 April Downtown Office,Industrial,Business Parks,Southeast Wisconsin 4n June Finance,Healthcare&Medical Office,Retail,O'Hare Market Area 6/8 August Property Management,Multifamily&Affordable Housing,Construction Trends 8/11 October Retail,Downtown,Suburban Office,1-80 10/13 December Industrial,Senior Housing,Finance,Year in Review 12/8 Page 11 Illinois 0 _. z • w > w Advertisingi 2023 Print Rates WIDTH X HEIGHT 6X(Net Rates) Full Page $3,125 $2,630 $2,500 10"x 13" Half Page 10"x 7" $1,930 $1,640 $1,540 - Quarter Page $1,285 $1,090 $1,030 . I 4'/a"x 7" Directory $325 $325 $325 Listing Women in Real $350 Estate Profiles AD SUBMISSION GUIDELINES : ACCEPTABLE MATERIALS Print-optimized/high-resolution PDF orJPG.Files must be 300 dpi. FOR ADVERTISING INFORMATION AND RATES/DISCOUNTS/PACKAGES, CONTACT: Marianne Grierson Mark Menzies Frank Biondo Ernest Abood Susan Mickey Vice President of Sales SVP,Publisher Vice President of Sales Vice President&MW Conf Classifieds Manager 312.644.7168 708.622.0074 248.670.2691 Series Sales Director 773.575.9030 mgrierson@rejournals.com menzies@rejournals.com fbiondoarejournals.com 312.644.7119 smickey@rejournals.com eabood@rejournals.com Page 12 CIllinois !�Ejournal 2023 News 11161 Directories. ID Architecture/Design-Build Firms Brokerage Firms February Construction Companies/General Contractors 2/10 Law Firms/RE Attorneys Multifamily Finance Asset/Property Management Firms Contractors April Developers 4n Economic Development Corporations IREJ WIRE 5/24 Architecture/Design-Build Firms June Brokerage Firms 6/8 Construction Companies Finance Firms Asset/Property Management Firms August Contractors 8/11 Developers Law Firms/RE Attorneys Brokerage Firms October Construction Companies 10/13 Multifamily Finance Firms Economic Development Companies December Annual Resource Guide 12/8 All Catagories Run Directory Listing Details _ Each issue will feature directories that include a company logo, company contact info, key contacts, 35-word services provided, CRESSY COMMERCIAL REAL ESTATE 4W Edison Lakes Pkwy..Suite 35u CRESS Y 35-word description. Misnawak,.IfJg65g5 COST: $325er Listing R574.i7i.4o6o " p g website:cressy.com Key Contact:Brad Meier,Vice President Services Provided:Brokerage Services,Property Management,Financial Management 8 Reporting, TO PLACE YOUR DIRECTORY LISTING, CONTACT: fdauuenance B Mechanical Services,Development.Architvctural Services,Design Services,Project Management.Construction Services. Susan Mickey Company Pmhle:Cressy Commercial Real Estate'%skilled,experienced staff speciakm in the Classifieds Manager construction and professional management of office.retail.Industrial.muhl-housIng communities and aswiations.our experts design and construct Improvement projects:and devetop and implement 773.575.9030 customized management and maintenance strategies that integrate proactive,cost-efficient property management and tenant/resident retention. smickey@rejournals.com wAgan Page 13 U) Minnesota W REEjournal W 2023 Editorial Calendar Editorial Contributions to MNREJ Email our editor,Dan Rafter,at drafter@rejournals.com with Editorial attachments are preferred as Word documents. industry news and trends; new hires or promotions;sales and Please do not embed photos in copy.Deadline for bylined leases and upcoming events.In addition to appearing in print, articles:2nd Friday of the month for consideration in following news will also appear at www.rejournals.com and will be month's edition. distributed via broadcast email every Monday.For byline article submission and direction please contact the editor prior to writing For editorial direction,please contact: the article.All articles must be exclusive to MNREJ.All art and Dan Rafter, photography attachments should be 300 dpi pdf orjpg files(see p 630.444.0477 advertising specifications). drafter@rejournals.com The Minnesota Real Estate Journal is Company Profile:An in-depth look at com- Development Showcase:The Minnesota Weekly E-Newsletter.Every Monday, a community newspaper for the local mercial real estate firms making an impact Real Estate Journal gets the story behind the Minnesota Real Estate Journal sends commercial real estate industry.Each issue of in Minnesota.Whether it is corporate giants, marquee developments and examines what its weekly eBlastto approximately 11,500 MNREJ covers the hottest topics and trends successful private firms or new ventures,we makes them a success. subscribers.The eBlast is filled with the pertaining to a specific commercial real estate highlight firms with a unique story to tell. Q&A:The editor ofthe Minnesota Real latest breaking news,industry profiles and sector. Professional Profile:A look at a successful Estate Journal often sits down with a highly company announcements. commercial real estate professional,high- successful professional with a unique story Directories:Each issue will feature directo- The geographic focus gives an in-depth look lighting the reasons for the person's success. to tell. ries that include:company logo,company at major markets throughout Minnesota, CRE Future Leaders:Once a week we profile News Briefs:Our Briefs sections highlight contact info,key contacts,35-word services highlighting the important stories and trends a young professional who has had early the deals and dealmakers that make the provided,35-word company description.Low in each area. success and who is projected to be a leader commercial real estate industry such a vibrant cost advertising,maximum exposure. in the real estate industry. business. DIRECTORY ISSUE EDITORIAL FEATURE COPY DUE February Multifamily,Commercial Real Estate Finance and Construction Trends 2/17 April Industrial Development,Healthcare and Medical Office Updates 4/8 June Retail and Property Management 6/16 August Multifamily,Affordable Housing and Office 8/18 October Industrial Development and Construction Update 10/13 December Year in Review 12/15 Page 14 MinnesoM to F- ■ w w Print2023 Advertising Rates WIDTH X HEIGHT Full Page $2,250 $1,650 $1,100 10"x 13" Half Page $1,500 $1,050 $750 . 10"x 7" Quarter Page $995 $695 $450 . 4'/a"x 7" Directory $325 $325 $325 Listing Cover Package Includes Logo on Cover $3,950 $3,250 $2,500 &Full Page Ad AD SUBMISSION GUIDELINES : ACCEPTABLE MATERIALS Print-optimized/high-resolution PDF or JPG.Files must be 300 dpi. FOR ADVERTISING INFORMATION AND RATES/DISCOUNTS/PACKAGES, CONTACT: Jeff Johnson Jay Kodytek CEO Senior Vice President 952.855.0815 952.405.7781 jeff.johnson@rejournals.com jay.kodytek@rejournals.com Page 15 Minnesota FEjournal w > W 2023 News T F-- Directories of MINNESOTAISSUE • ' •• Y DUE Brokerge Firms RE Law Firms February Construction Companies 2/17 Finance&Investment Firms Asset/Property Management Firms April Developers 4/8 p Architects/Design-Build Firms Economic Development Corporations RE Law Firms June Construction Companies 6/16 Multifamily Finance Firms Brokerage Firms Developers August Asset/Property Management Firms 8/18 Economic Development Corps Environmental/Engineering/Green Brokerage Firms October Finance&Investment Firms 10/13 Architects/Design-Build Firms Economic Development Companies Multifamily Finance Firms December ProjecUConstruction Management Firms 12/15 Asset/Property Management Firms RE Law Firms MREJ WIRE 12/15 Directory Listing Details Sample: Each issue will feature directories that include a company logo, company contact info, key contacts, 35-word services provided, CUSHMANawAKMELD/THELUNDCDMMW 450 Regency Parkwng Suite?00 35-word description. Cmaha.NL68m CUSHMAN& LVND COST• per 325 Listing P:4o2.1g1.88ttIf:402,1932402 111111 1h WAKEFIELD g Website•.lundco.com Key Contacts:Jason fisher,CEO,ICshenplundco.com: TO PLACE YOUR DIRECTORY LISTING, CONTACT: Tanya Shapiro.President.tarrya.nnovativeandco.com Services Provided:Our staff of innovative and creative professionals offer a wide range of real estale services Including brokerage,commercial and multi-lamily property management,real estate Susan Mickey consulting,investment acquislllon,and project and development services. Classifieds Manager Company Profile.Cushman B Wakefield/The Lund Company markets and manages over eiEht million square feet of commercial properties valued at over Si billion.Also,Included In our management 773.575.9030 portfolio are more than i6,0oo apartment units. smickey@rejournals.com � Page 16 �7 Chicago Industrial W ClPjournal, Properties 2023 Editorial Calendar Editorial Contributions to CIP Email our Senior Staff Writer, Mia Goulart,at mia.goulart@rejour- Editorial attachments are preferred as Word documents. nals.com with industry news and trends; new hires or promotions; Please do not embed photos in copy.Deadline for bylined sales and leases and upcoming events.In addition to appearing in articles:2nd Friday of the month for consideration in following print,news will also appear at www.rejournals.com and will be month's edition. distributed via broadcast email every Tuesday and Friday.For byline article submission and direction please contact the editor For editorial direction, please contact: prior to writing the article.All articles must be exclusive to CIP.All Mia Goulart art and photography attachments should be 300 dpi pdf orjpg mia.goulart@rejournals.com files(see advertising specifications). CLOSE/711EDIT • • D T DUE January 2023 Forecast 1/13 Investment&Finance March Development&Construction 3/10 Data Centers&Technology Class B&C May REITs 5/12 Cold Storage Industrial Mid-year Review July Property Management 7/14 Special Supplement:6th Annual BTS,Spec Build,Business Parks Guide September Distribution Centers 9/15 Construction Updates November Year In Review 11/10 Page 17 v, ­71 Chicago Industrial CIPJournal W Properties W 2023 Print Advertising Ra tes Full Page $3,000 $2,750 $2,500 10"x 13" Half Page - 10"x 7" $1,900 $1,700 $1,450 Quarter Page 4/B x 7 $1,050 $975 $950 S Directory $325 $325 $325 Listing AD SUBMISSION GUIDELINES : ACCEPTABLE MATERIALS Print-optimized/high-resolution PDF or JPG.Files must be 300 dpi. FOR ADVERTISING INFORMATION AND RATES/DISCOUNTS/PACKAGES, CONTACT: Marianne Grierson Mark Menzies Frank Biondo Ernest Abood Susan Mickey Vice President of Sales SVP,Publisher Vice President of Sales Vice President&MW Conf Classifieds Manager 312.644.7168 708.622.0074 248.670.2691 Series Sales Director 773.575.9030 mgrierson@rejournals.com menzies@rejournals.com fbiondo4rejournals.com 312.644.7119 smickey@rejournals.com eabood@rejournals.com Page 18 Chicago Industrial Cn CI z PJournal w DirectoriesProperties 2023 News [DIRECTORY INDUSTRIALISSUE DIRECTORIES COPY• UE Asset/Property Management Firms Contactors January Developers 1/13 Roofing Companies Economic Development Companies Industrial Brokers March Construction Companies 3/10 Finance Firms Law Firms/RE Attorneys Asset/Property Management Firms Contractors May Developers 5/12 Economic Development Corporations Architecture/Design-Build Firms Industrial Brokers July Construction Companies 7/14 Finance Firms Roofing Companies Asset/Property Management Firms September Contractors 9/15 Developers Law Firms/RE Attorneys November Annual Resource Guide 11/10 All Catagories Run Directory Listing Details Sample: Each issue will feature directories that include a company logo, company contact info, key contacts, 35-word services provided, THE BROMBENTCOMPANY rt/E.Washington Street.Saitc Trna The 35-word description. pdr'n2�29N4Gao4 Broad 3 7 3 900 COST: $325 per Listing Website:Broadbe.mCompany.cotn Key Contact:Tammy Brooks,Regional property Manager Company 5•tylces Proylded:Leasing•Brokerage-Acgais#tion- 0eyclopment-Management-tenant Representation TO PLACE YOUR DIRECTORY LISTING, CONTACT: Company profile:Broadbent isa hill sersice real estate company in business since 19711 Leasingi Susan Mickey Brokerage.Management,Acqulsitlons.Development and tenant Representailonot retailcenters itt/eaghOO the Mldwest. Classifieds Manager Notablarm nsactions/plants:la-7-Boy.The RonmPlace,KoMs,A1#tome,PetsMart,Ashley fumiture, Uncle Btll's Pet Cerner,United Ari g Education,The District Tap,Office Depot.Office Max, 773.575.9030 McAlister"Dell,Moe's Southwest Grill,Noodles and Company. smickey@rejournaIs.com f� Page 19 Y) -1 Texas W REDnews W 2023 Editorial Calendar Editorial Contributions to REDnews Email our Senior Staff Writer,Mia Goulart,at mia.goulart@rejour- Editorial attachments are preferred as Word documents. nals.com with industry news and trends;new hires or promotions; Please do not embed photos in copy.Deadline for bylined sales and leases and upcoming events.In addition to appearing in articles:2nd Friday of the month for consideration in following print,news will also appear on rednews.com and will be distrib- month's edition. uted via broadcast.For byline article submission and direction please contact Mia Goulart prior to writing the article.All articles For editorial direction,please contact: must be exclusive to REDnews.All art and photography attach- Mia Goulart,Senior Staff Writer ments should be 300 dpi pdf or jpg files(see advertising specifi- mia.goulart@rejournals.com cations). REDnews is a statewide news magazine for Company Profile:An in-depth look at com- Development Showcase:REDnews gets the Weekly E-Newsletter:Every Monday,RED- the Texas commercial real estate industry. mercial real estate firms making an impact story behind marquee developments and news sends its weekly eBlastto approximately Each issue of REDnews covers the hottest in Illinois.Whether it is corporate giants, examines what makes them a success. 30,000 subscribers.The eBlast is filled with topics and trends pertaining to a specific successful private firms or new ventures,we Q&A:The editor of REDnews often sits down the latest breaking news,industry profiles and commercial real estate sector. highlight firms with a unique story to tell. with a highly successful professional with a company announcements. Professional Profile:A look at a successful unique story to tell. Directories:Each issue will feature directo- The geographic focus gives an in-depth commercial real estate professional,high- News Briefs:Our Briefs sections highlight ries that include:company logo,company look at major markets throughout Texas, lighting the reasons forthe person's success. the deals and dealmakers that make the contact info,key contacts,35-word services highlighting the important stories and trends CRE Future Leaders:We profile a young commercial real estate industry such a vibrant provided,35-word company description.Low in each area. professional who has had early success and business. cost advertising,maximum exposure. who is projected to be a leader in the real estate industry. . D EDITORIALISSUE January/February Texas CRE Icons and 2023 CRE Forecast 1/13 March/April Office Markets,Property Management and Industrial 3/10 May/June Texas Retail Update 4/21 July/August North Texas CRE Focus/South Texas CRE Focus&Construction Trends 7/14 September/October Multifamily Update and Economic Development 9/15 November/December Texas Women in Commercial Real Estate&Retail Trends 11/10 Page 20 Texas z ■ LU DIMENSIONS2023 Print Advertising Rates SIZE DIMENSIONS Full Page 9.25"x 11"w/bleed $1,950 Half Page 8.5"x 5" $1,350 Quarter Page 4.25"x 5" $850 PREMIUM PAGES Back Cover $2,950 Premium Pages(pages 3, 5,7) $2,350 Front Cover-All Cities $9,000 Front Cover-Individual Cities $3,500 ea. Inside Front Cover $1,995 Inside Back Cover $1,195 2-Page Spread $3,500 Pre-Printed Insert $7,500 AD SUBMISSION GUIDELINES : ACCEPTABLE MATERIALS Print-optimized/high-resolution PDF or JPG.Files must be 300 dpi. 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Classifieds Manager Comparryprofile:Cushman 6Wakefield/The Lund Companymarkets and manages over eightmillion square feet of commercial properties valued at over ft billion.Also,included in our management 773.575.9030 portioib are more Than*oc o apartment units, smickey@rejournals.com I Page 22 Northeast Ohio W L operties Architecture I Construction I Real Estate 2023 Editorial Calendar Editorial Contributions to Northeast Ohio Properties Magazine Established in 1946, Northeast Ohio Properties Magazine is a monthly publication dedicated to realty, construction and architecture in Northeast Ohio. Decision-makers turn to Properties each month for industry news, profiles of top companies and development projects, and topical special sections, cov- ering everything from landscaping and roofing to legal issues and green building. 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FOR ADVERTISING INFORMATION AND RATES/DISCOUNTS/PACKAGES, CONTACT: Larry Overbey Matt Lehnert Media Consultant Media Consultant 216.251.6649 216.251.6753 loverbey@propertiesmag.com mlehnert@propertiesmag.com' iiiiiiiim Page 24 � ,overage Monthly Website' Statistics : Ar4 LD AverageSessions Page Viewers ns 143 ,172 114,756 Per Month � Per Month � Average Users Impressions Banner Ad Receives / 94,441' 127,908 Per Month ! i �-� Per Month Z w RE, journals w Since1985 ,. .. r Sterling Bay Illinois 269339 19511 C , Suzet McKinney DtPH.MPH- Impressions Congratulations to the Sterling Bay team for being named"Developer of the Year"by REjournals.So much hard work goes on behind the scenes and I'm thrilled to see the entire team getting the recognition they • deserve: • , OrO289456 - — -,cr. .- ..s•e Impressions Zeller left, Congratulations to our Management Teams in TexasMinneapolis for being awarded Property Management Company of the Year at the 2022 MREJ Awards for the third consecutive year!This is a well deserved award. 139737 19015 Also,a huge thank you to REjournals for allowing us all to gather again and celebrate the achievements of the Impressions CRE industry.it was a great event!*awards CONGRATULATIONS *propertymanagement*minneapolisrealestate +commercialrealestate*cre*zeller ��,�.o.sn•wrs�n.amwi�..•�r r.�•.r�. ::_-,.•...��.-.;'.a e: Zeller INC— Brian Ashby•3,d F Total: Most • Transaction Honored to receive REDnewi Most Significant Lease Transaction award this year for our Kirby Ice House- Woodlands deal:With great clients,comes great 689532 1 1 Kirby • responsibility.so we couldn't be happier to land KIH on such an irreplaceable piece of real estate!This is going to top KIH's Memorial location as the LONGEST BAR IN ImpressionsTX!Congrats to all of the finalist on their amazing accomplishments this year! BIG thanks to Russ Morgan and Philip Morgan for 5920 • i being so great to work with and creating such s game changer of a concept for our home town to enjoy! Could not have done this without my great friends and En team Kyle Golding.Sydney Dixon and Thomas P. • • • _ments CBRE Nguyen!Also could not have gotten it done see�:re Page 26 V) Z Z �d } journals. + nfi 2023 Digital Advertising Rates: Website www.rejournals.com F r {R`'_ oumalss 1111 11T FVFN TS SECT.P SEAS ESTATE AWARDS SUBSCRIBE PUBLICATIONS (� OHIO t ILLINOIS 1:.•r.:!;• -+;, ...., .. ::. r:-..:. ,pl� BOX BANNER 25i fi+ice U• • ME 'A ht1 • - - • Colliers pros:Momentum still Nation's top MOB markets strong in Cleveland's commercial include Texas and the Midwcst, real estate market and they just keep growing DAN RAFTER I SEPTEMBER 21.2022 SEPTEMBER 21.2022 r� blee m most major cities across the Midwest. Medio]office buildings(Mt)%)have proven to be a T, Cleveland's cmnBLercial ml estate market is ehtivilsg. resilient asset class through the pandemic—and yet, Demand is waling lot industrial space and dtey'm ind-1 supply across the U.S. multi6mily units.Rerailen arc opening new locations --- READ MORE . here.Healthcare providers continue to open new locatinns 3"em the Cleveland area.And even the THE AUTHORITY ON Dace FBI is showing snme positive signs_ READ MORE ...._ ................ .... Creating Value ILIINDIR 1 r:.t011.:M iNc.�ttf*Aa hThe Badger State has earned a spot next to That Endures. Chicago and Northwest Indiana as the region's most highly regarded. But why? WIDTH Horizontal Banner 728 x 90 $1,500 $1,250 $1,000 Box Banner $1,200 $1,000 $900 300 x 250 Page 27 N H Z W DIGITAL Advertising Rates: Newsletter —I lillnois ^1 Midwest �Minnesota 1 Chicago Industrial RN-Journal RREjournal. CI P journal. 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Page 28 z a c� Texas REDnews. 0 2023 Digital Advertising Rates: Website www.rednews.com Rear ES{d10 Okectory I Reachln9 50,000 CAE Brokers.InvCslors,and DevpUperS �$UE:SCRI9E Feriow Uc f y Ifl L' D -ws ROTATING TOP HORIZONTAL BANNER 728 pixels width x 90 pixels height Home News Etlitcrial Upcoming Events Awards Properties CRE Marketing Services Networking REDNews Calendar Atwut Us Ct }F tttt� a ��. -M� � H LEASED E`o 2,178 SE AT 21 MERlT '" ��� �F Y CRE NEWS NETWORKING �T ROTATING BOX BANNER Deals b Announcements,News,News b Market Reports,USI Texas CRE News,US/Texas Market Reports 300 pixels width x 250 pixels height WIDTH x HEIGHT 1X(Net Rates) 3-4X(Net Rates) 5X+(Net Rates) Horizontal . • x •, $1,000 ••• 200 Box Banner $800 $700 $600 •• x 250 Page 29 Advertising Rates: W DIGITAL E-Newsletter Newsletter ROTATING TOP HORIZONTAL BANNER -, Texas REDnews Dimensions: `j 728 pixels (w) x 90 pixels (h) - Desktop YOUR $775 per e-newsletter INCREASE FREQUENCY @ MORE SAVINGS DFW to Hit Positive Net Absorption _ 3-4x Horizontal Banner $700 per e-newsletter LLLiirc r r t frhehortestmarkets in 5x+ Horizontal Banner $600 per e-newsletter ail ureas o CRE.Right nnw. numbers arr nairrtin9 tc tuaLcl third.Thal' Cor(my o CBRE's DRVQ2 6 c•r Re lr r lktitas'numbersare n•endiny�r `n�tenrJit_cierlu:caued._ BOX BANNER Phaidon International Relocates to The Centrum Dimensions: "Cushman&Wakefiield 300 pixels (w) x 250 pixels (h) ! announced today has arranged a new 26,687 $525 per e-newsletter SFq,fice lease in the Oak Lawn area on beha{fof global talent pat-titer INCREASE FREQUENCY @ MORE SAVINGS Phaidan huernntional." 3-4x Box Banner $475 per e-newsletter 5x+ Box Banner $400 per e-newsletter YOUR YOUR SUBMISSION GUIDELINES • For E-Newsletters, creative must be submitted as a AD HERE AD JPEG or PNG format with a resolution of 96 DPI (pixels/dots per inch)at actual size(see above for banner dimensions).We will NOT accept PDF files or Microsoft Word documents. 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Email Blast Package of 4: $880 Email Blast Package of 6: $1,150 Email Blast Package of 10: $1,500 12941 Gulf Freeway H-1-,,77034 :Tarantino CUSTOM, SPONSORED 1,295 SF Available for Lease *CONTENT • 22.706 NRA Cross A 01fico BuIE:ng • Sponsored Content will position you and your firm as leaders in the industry • Your article will be featured on our website and E-Newsletters i Texas • Your headline will link to your full story REDnews — and will be read by REDnews subscribers 1✓Di FMh ' Your article's subject may include: • New hire profiles September 2022lligio1 MassConstruction Wraps on Austin's 3o8-unit Citadel at ---E • Employee/Executive Profile Tech Ridge o..a. ,.a IS Expert on a topic S"P C;Z • Highlights on a recent deal or development f f Interested? Here's how this works: 1. Send us your 250 to 750-word At III V1 10PAIIIII OPP0117M MY article and photo(s) CITIL".C�*CHOU 2. We'll review and send you a proof REDnews Webinu Series 3. Once approved, we'll schedule for publication *Contact us for Pricing Minnesota FEjournal Illinois ��Midwest �,Chicago Industrial ffE journal REnews CI P journal Properties Page 31 AM ■ REconnecting I in "I Midwest "'II Minnesota Illinois RE news RE journal. IREjournal, Since 1985 ' ' Since 1985 ' Ammmmm ' Texas Chicago Industrial �� Northeast Ohio [RLEDnews, [CSIPjournal. Properties I I Properties Since 1946 ' Architecture Construction Real Estate aI Sponsorship joum Agreement Sponsor Name: City of Farmington Attn: Deanna Kuennen Address: 430 Third Street City/State/Zip: Farmington, MN 55024 Phone: (507)333-0376 Email: dkuennen@farmingtommn.gov This contract represents an agreement between Sponsor and Real Estate Publishing Corporation. ("REPC"), to sponsor the conference. Sponsor will pay REPC the amount stated below in exchange for the following promotional, public relations and marketing, including the following: CONFERENCE Land Development Sponsorship Details Total S06 Corporate Sponsorship $7,500.00 City of Farmington - 2023 Marketing Plan - Ads — MREJ Team will work with Farmington Team to develop rotating ad suite to be included in the publication. Banner Ads on the MREJ website from time to time Editorial Opportunities — You can send as many articles or PR and I will get it in Booth at events Farmington is a sponsor. List of Attendees from events Farmington is a sponsor. Speaking Opportunities Free Passes to events Events to include for speaking and or a booth would be WIRE, Land, Industrial, Data Center, cornhole. Grand Total: $7,500.00 Due to rising costs and our vendors requiring payment in advance,we are now requiring all sponsors pay in advance for all services.Therefore,any event sponsorships must be paid prior to the event date.We value you as a business partner and hope you understand this is necessary to continue to provide you with the services we are known for. To reserve this sponsorship, please return an authorized copy of this agreement via email to: Jay Kodytek, kaitlyn.lacroix(u)reiournals.com .Thank you! Signature: Print Name: Date: Remittance Address: Real Estate Publishing Corporation,7767 Elm Creek Boulevard,Suite 210, Maple Grove, MN 55369 Payment is due upon executing this contract. In the event of cancellation, REPC reserves the right to pursue the cost of damages of the sponsorship in full.Contract is subject to additional terms and conditions relating to logo use, photography and event promotion;which can be found at resummits.com. IMinnesota Midwest �,Chigo Industrial Illino RE journal REDnews. I RE news [E!PJo-uma1 JREEiou�'mal CITY OF 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 ® Farmington MN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: Micro Grant Program Discussion DATE: February 21, 2023 INTRODUCTION/DISCUSSION At the January meeting,the EDA discussed pausing the existing redevelopment and facade grant programs and replacing the programs in 2023 with a micro grant program.The intended purpose of a micro grant program would be to support and encourage business development(a strategic priority of the City Council), by fueling the entrepreneurial and small business energy that exists in the community with a small incentive program that would meet businesses where they are at. A micro grant program would provide support to grow and expand small businesses located in Farmington. The proposed micro grant program would: • Purpose- Provide support to grow and expand the small business community in Farmington. • Criteria- Business must be located within the City of Farmington city limits and • Been operational for at least 12 months • Be able to articulate/demonstrate a specific project and need for funding • Provide written estimates for products/services outlined in the application • Have a written business plan • Demonstrate working with (or have worked with) a business coaching agency such as MDDC/Open to Business, SBA, or Small Business Development Centers prior to requesting micro grant. • Grant Amount-up to$2500. Grant application accepting on a rolling basis. A business may apply more than once but can only have one grant at a time and the maximum amount to be received by a single business is $5000. • A 50-percent cash match is required. • A personal guarantee will be required to ensure that funds are spent as outlined in the application. • Total Available Funding- Round 1:$25,000 • Ineligible Business- Nonprofits,gambling organizations, lending or investment, land and property held for sale. • Ineligible Projects- Management fees, financing costs, franchise fees, debt consolidation. • Example of Eligible Projects-Signage, point-of-sale system,website upgrades, social media consultation, building improvements/repairs (with property owner consent), etc. • Timeline-All projects must be completed within 12 months of receiving the grant. • Review-Applications will be reviewed based on how well the applicant defines their intended project goals, anticipated outcomes, need for funding, and impact of micro-grant.The EDA will make all final grant awards. ACTION REQUESTED The EDA is asked to discuss the proposed micro grant program criteria. Based on direction of the EDA, the program guidelines will be amended,finalized, and brought back to the EDA at an upcoming meeting for approval-including additional details on the review and evaluation process. Once approved- guidelines and applications will be made available to all eligible businesses, and an information campaign will follow to ensure that the Farmington entrepreneurial and small business community is aware of this small business support program. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 I�� O Farmington MN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: 2023 EDA Work Plan DATE: February 21, 2023 INTRODUCTION/DISCUSSION Having a specific EDA Work Plan will ensure that time and financial resources are directed towards economic development initiatives that align with the goals of the EDA. Staff has identified the following work plan categories and tasks for discussion.The intent is that these categories are broad but identify key priorities and allow for fluidity within each category to respond to opportunities and pivot if/when necessary,without losing sight of the core economic development vision. DRAFT Work Plan Business . Develop/Implement a Business Retention and Expansion(BRE) Growth Program to ensure meeting existing business needs today and into future. • Build out an economic development"tool kit'that includes programs to encourage business growth and investment. Available • Build inventory of available commerciaVindustrial land and Land buildings. • Identify underutilized parcels and identify additional. development/redevelopment land including"catalyst"sites. • Work with property owners to increase shovel-ready properties and/or where properties are within the shovel- ready spectrum, • Revisit annexation agreements. Marketing • Identify and pursue marking and networking initiatives that will provide a venue to promote Farmington. • Actively participate in MMP,targeted industry visits.FAM Tours. and talent attraction events. Partnerships . Foster relationships with economic development and workforce organizations to include: o Dakota County Regional Chamber of Commerce and Chamber Foundation o MN Department of Employment and Economic Development o Greater MSP o DCTC o Utility providers • Identify other organizations that can help move Farmington forward. ')agoing • Be available as a resource to local businesses. Operations . Develop and implement procedures to enhance and streamline the development review and project implementation process. • Use the city's website as a resource and tool-ensuring that relevant and updated information is readily available. • Respond to business/prospect/site selector inquiries and RFI's in a timely and thorough manner. • Seek out funding/grant opportunities to leverage limited funding. ACTION REQUESTED The EDA is asked to discuss the draft work plan. Based on input from the EDA, the work plan will be modified and brought back for additional discussion. Ultimately,the work plan will become the foundation for budget request/preparation and be referred to when pursing various initiatives and opportunities. 0 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 000000-1— Farmington MN.gov TO: Economic Development Authority FROM: Deanna Kuennen, Community Development Director SUBJECT: Director's Report DATE: February 21, 2023 INTRODUCTION/DISCUSSION The following highlights recent economic development activity: Projects • Ebert Apartments-TIF Prospects • Project LOOP-25 acres,FDI • Project Tulip-6o-loo acres,biopharma • Project Wendy-15-3o acres,biotechnology manufacturing Business • VidtS Meetings • The Brookshire Company- potential to explore site selection, economic development partnership,introduction to growth- based businesses. • Cobblestone Hotels-interested in hotel development, community-investment based model • Dakota County City/County Community Development Group- collaborating on a SE Metro Development Summit, May 24th. • Open to Business/MDDC- review current business activity and discussed additional ways to enhance collaboration. • Dakota Etectric- project review to enhance future responses, • CDA Staff-review CDBG process and future use of funds to include"capacity building." Other • Economic Development Coordinator- position closes 2/17/23. • Vision Plan and Comprehensive Plan Amendment-RFP closes 2/17/23. ACTION REQUESTED No action is requested. This information is provided for informational purposes. Staff is available to provide additional detail and answer any questions.