HomeMy WebLinkAbout07.17.23 EDA Minutes City of Farmington
Economic Development Authority
Regular Meeting Minutes
Monday, July 17, 2023
The Farmington Economic Development Authority met in regular session on Monday,
July 17, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota.
1. CALL TO ORDER
Chair Wilson called the meeting to order at 4:30 p.m.
2. PLEDGE OF ALLEGIANCE
Chair Wilson lead everyone in the Pledge of Allegiance.
3. ROLL CALL
Members Present: Chair Steve Wilson
Commissioners Holly Bernatz, Joshua Hoyt,
Nick Lien, and Katie Porter
Members Absent: None
Also Present: Lynn Gorski, City Administrator
Julie Flaten, Asst City Administrator/HR Director
Deanna Kuennen, Community Development Director/EDA
Executive Director
Stephanie Aman, Economic Development Coordinator
John Powell, Public Works Director
Shirley Buecksler, City Clerk
Kara Hildreth, Editor— Dakota County Tribune
4. APPROVE AGENDA
Motion was made by Commissioner Bernatz and seconded by Commissioner Lien to
approve the agenda, as presented.
Motion carried: 5 ayes / 0 nays.
5. CITIZEN COMMENTS
No one addressed the Commission to speak.
6. CONSENT AGENDA
6.1 Economic Development Authority Meeting Minutes of June 26, 2023
6.2 Monthly Financial Statement
Motion was made by Commissioner Hoyt and seconded by Commissioner Bernatz
to approve the Consent Agenda, as amended.
Motion carried: 5 ayes / 0 nays.
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July 17, 2023
Page 2 of 4
7. PUBLIC HEARINGS
There were no public hearings.
8. DISCUSSION ITEMS
8.1 Approve Collateral Assignment and Subordination of Contract and TIF Note for
Private Development
Staff provided context for the item, stating that on June 8, 2023, the EDA entered
into a Contract for Private Development with Ten Nineteen Development LLC
pertaining to the construction of a 74-unit multifamily apartment project located
at 310 3rd Street. Since then, Ten Nineteen Development LLC has assigned its
interested in the Contract for Private Development to Ten Nineteen — Farmington
LLC, the redeveloper has secured a construction loan, and now the lender is
requiring as a condition of the loan, that the redeveloper assign its rights under
the Contract for Private Development to the lender, and that certain rights of the
EDA under the Contract for Private Development be subordinated to the
mortgage. Legal counsel has reviewed the Collateral Assignment and
Subordination of Contract for financing the project and prepared a resolution for
consideration. The collateral assignment and subordination requests are
common. All the necessary language has been incorporated into the documents
to protect the EDA and the EDA's interests.
Motion was made by Commissioner Porter and seconded by Commissioner Hoyt
to adopt EDA Resolution No. R06-23 Approving Collateral Assignment and
Subordination of Contract and TIF Note for Private Development.
Motion carried: 5 ayes / 0 nays.
8.2 Approval of Micro Grant for Heikkila Studios — R05-23
Heikkila Studios has applied for $2,500 in matching grant funding from the EDA
Micro Grant program. The EDA considered this application in June and decided
to continue the topic to the July meeting, directing Staff to clarify and gather more
information.
Staff completed the requested work from the EDA including having the Building
Official review the proposed plans and confirm that they would meet the
guidelines needed for cement work and replacement. The Public Works Director
also clarified what permitting would need to be obtained (an obstruction
right-of-way permit); this information was communicated to the Applicant. Staff
received a statement from the Applicant that demonstrates how the business
believes they would benefit from this requested matching grant funding.
Additionally, Staff sought clarification from legal counsel regarding the EDA's
concern for the adjacent buildings if the project work uncovers unseen issues.
Staff is satisfied, based on legal counsel interpretation, that the Micro Grant
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July 17, 2023
Page 3 of 4
agreement that all applicants sign prior to disbursement of funds protects the
EDA. The EDA would be held harmless to any future claims from any business
receiving these EDA program funds for any additional work above and beyond
the scope of the proposed project.
Motion was made by Commissioner Hoyt and seconded by Commissioner Porter
to adopt EDA Resolution No. R05-23 Approving Micro Grant Funding to Heikkila
Studios for Certain Business Improvements.
Motion carried; 5 ayes / 0 nays.
8.3 Recommending a 2024 Property Tax Levy for the Farmington Economic
Development Authority (EDA)
At the June EDA Meeting, the EDA reviewed a preliminary 2024 work plan,
associated budget, and EDA levy request. The EDA agreed to move forward with
establishing an EDA levy. Staff explained that the first step in that process is to
pass a resolution requesting that the City Council implement a levy in the
proposed 2024 budget.
Staff explained that based on the EDA's direction, Staff worked with legal counsel
to begin the EDA levy process. Minnesota State Statutes regulate the maximum
amount that can be levied (0.01813% of the City's taxable market value) and the
process to request that the City Council consider including the request as part of
the City's overall budget and levy limit. Staff identified that this is a multi-step
process, which includes:
1. The EDA pass a resolution recommending that a specific amount be included
as part of the 2024 tax levy, for EDA purposes. This can be no more than
0.01813% of the City's taxable market value.
2. The City Council is asked to consider a resolution stating the proposed levy
and notice for a public hearing.
3. A public hearing is noticed.
4. The City Council holds a public hearing two to four weeks after the public
hearing is first noticed.
5. The City Council decides whether to take no action or adopt a resolution
authorizing the proposed levy.
6. If authorized, the City adopts and certifies a proposed levy on or before
September 30, and adopts and certifies a final levy on or before December
20.
The resolution for consideration specifically recommends a 2024 tax levy of
$150,000 for EDA purposes. Staff suggested that this amount would significantly
enhance the economic development efforts, while still being well below the
maximum levy allowable ($524,687 based on the 2023 taxable market value).
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July 17, 2023
Page 4 of 4
Motion was made by Commissioner Lien and seconded by Commissioner
Bernatz to adopt EDA Resolution No. R07-23 Requesting 2024 Economic
Development Authority Levy.
Motion carried: 5 ayes / 0 nays.
9. DIRECTOR'S REPORT
9.1 Director's Report
Staff explained that a summary of current activity is included in the Director's
Report. Discussion ensued with the EDA asking about what the most impactful
activity has been. The EDA also commented that they appreciate the "meet them
where they're at" approach and they believe Staff has a well thought out
approach to the work.
10.ADJOURNMENT
Motion was made by Commissioner Lien and seconded by Commissioner Hoyt to
adjourn the meeting at 4:59 p.m.
Motion carried: 5 ayes / 0 nays.
R ectfully submitted,
Shirley uecksler
City Clerk