HomeMy WebLinkAbout03.23.15 EDA PacketAGENDA
REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING
March 23, 2015
6:30 PM
Room t70
Todd Larson, Chair; Geraldine Jolley, Vice -Chair
Douglas Bonar, Steve Wilson, Kirk Zeaman
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVE AGENDA
5. CITIZENS COMMENTS
6. CONSENT AGENDA
(a) Meeting Minutes (2/23/15 Regular Meeting)
(b) Monthly Statements
7. PUBLIC HEARINGS
8. DISCUSSION ITEMS
(a) Commercial Rehabilitation Grant Application - 400 3rd Street
(b) Business Subsidy Policy Update
9. DIRECTOR'S REPORT
(a) March Director's Report
10. ADJOURN
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 - Fax 651.280.6899
www.ci.fartnington.mn.us
TO: Economic Development Authority
FROM: Adam Kienberger, Community Development Director
SUBJECT: MeetinR Minutes (2/23/15 Regular Meeting)
DATE: March 23, 2015
INTRODUCTION/DISCUSSION
Please find attached the EDA meeting minutes from the February 23, 2015 Regular Meeting.
ATTACHMENTS:
Type Description
D Backup Material Meeting Minutes (2/23/15 Regular Meeting)
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Respectfully submitted,
Administrative Assistant
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 - Fax 651.280.6899
www.ci.fartnington.mn.us
TO: Economic Development Authority
FROM: Adam Kienberger, Community Development Director
SUBJECT: Monthly Statements
DATE: March 23, 2015
INTRODUCTION/DISCUSSION
Please find attached the monthly EDA statements. Please note that this month includes our annual Open to
Business program fee.
ACTION REQUESTED
ATTACHMENTS:
Type Description
i) Backup Material Monthly Statements
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 - Fax 651.280.6899
www.ci.farmington.mn.us
TO: Economic Development Authority
FROM: Adam Kienberger, Community Development Director
SUBJECT: Commercial Rehabilitation Grant Application - 400 3rd Street
DATE: March 23, 2015
INTRODUCTION/DISCUSSION
Staff has received a completed application from W. Paul Otten for a Commercial Rehabilitation Grant for
the building he owns at 400 3rd Street in Downtown Farmington. Staff has reviewed the application and
worked in coordination with the Building Official and the Dakota County CDA to recommend approval of a
$22,087 grant for necessary improvements to eliminate conditions detrimental to public health and safety.
DISCUSSION
Earlier this year, the EDA recommended, and the City Council authorized application for the City of
Farmington to allocate its 2015 CDBG allocation (estimated to be $42,717) to the Commercial
Rehabilitation Grant program. This program has been very successful in Farmington over the past several
years, and encourages local building/business owners to reinvest in public health and safety improvements
in Farmington. A program summary is below:
Grant funds may be available to assist local businesses and/or property owners who are making qualified
improvements to eligible commercial properties that eliminate conditions that are detrimental to public
health and safely. The following are examples of qualified improvements: correcting code violations, code
improvements, and the correction of handicap accessibility issues. The intent of the grant program is to
prevent the deterioration of commercial structures and discourage blight, encourage projects that correct
code violations and to eliminate accessibility restrictions. Requirements of the program include, but are not
limited to the following:
Applicant providing a 1: 1 dollar match
Competitive bidding
Davis -Bacon Wage Act (payment of prevailing wages to contractors)
The full 2015 program materials are attached for your information.
A cover letter from Mr. Otten outlining the project and request is attached. The grant will cover
replacement of rooftop mechanical equipment to eliminate environmental health concerns and meet
building code requirements per the Building Official. While the grant amount requested is $22,087, the
applicant is providing matching funds of $42,000 along with additional improvements to the building.
The Commercial Rehabilitation Grant Program currently has a balance of approximately $38,000. The
estimated 2015 allocation in the amount of $42,717 is anticipated to be available around July 1st, 2015.
ACTION REQUESTED
Recommend the City Council consider approval of the Commercial Rehabilitation Grant application for the
W. Paul Often — 400 3'd Street building in the amount of $22,087. Final approval will result in the City
entering into a grant agreement with W. Paul Often funding the improvements outlined above.
ATTACHMENTS:
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D Exhibit Cover Letter & Application Materials
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1 of 1 3/1 /2015 11:25 AM
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 - Fax 651.280.6899
www.ci.fartnington.mn.us
TO:
Economic Development Authority
FROM:
Adam Kienberger, Community Development Director
SUBJECT:
Business Subsidy Policy Update
DATE:
March 23, 2015
INTRODUCTION/DISCUSSION
Below is a review
of the EDA work session in November where we discussed Farmington's Business
Subsidy Policy:
A strategic priority of the City Council is to become more active in and strengthen the City's economic
development efforts. Economic development typically revolves around three main ideas: creation of jobs,
expanding the tax base, and increasing the quality of life within the community. When exploring ways to
encourage growth and bring in new businesses to a community, it is often a good idea to review the policies
in place that impact how businesses work with and perceive the community.
A common question that arises during early discussions with potential business prospects is the availability
of financial assistance. While not always crucial to securing a deal, having a current business assistance
policy in place demonstrates that the community knows what its priorities are and how it will handle
requests for assistance.
Farmington's current Business Subsidy Policy dates back to 2002. Farmington does not have a specific TIF
or Tax Abatement policy. After a bit of research it would appear that the EDA discussed updating its
Business Subsidy Policy in the form of a Business Incentive Grant Program back in May of 2013. That idea
was ultimately shelved in order to focus on a Marketing Plan which is currently in the implementation
stage.
Several resources were used during our discussion of the business subsidy policy:
• Farmington's current business subsidy policy (2002) — attached
• A memo from our city attorney from 2009 providing general background on business subsidies
• Minnesota State Statutes I I 6J.993-116J.994 governing business subsidies in Minnesota
• A summary of the differences between TIF and Tax Abatement (City of Northfield's website)
. Lakeville's current business subsidy policy (2011) — revised and attached
• Lakeville's TIF policy (2013)
• Northfield's Tax Abatement policy (2013)
At the conclusion of the November EDA work session it was noted that the dialogue should continue with
using a version of the Lakeville business subsidy policy as a basis for a revised Farmington policy. A
revised version is attached for our discussion.
ACTION REQUESTED
Staff suggests that the EDA discuss the attached revised business subsidy policy draft document and
recommend one of two actions:
1. Forward the attached document to the City Attorney for review and comment and then advance it to
City Council.
2. Recommend additional changes or continued discussion on this topic.
ATTACHMENTS:
B-ISFIESS SIBSIDTPOLICT
DRAFT - 2015
1.0 PURPOSE
1.01 This Policy is adopted for purposes of the Business Subsidies Act (the "Act"), Minnesota
Statues, Sections 1161993 through 116J.995. Terms used in this Policy are intended to
have the same meanings as if used in the Act, and this Policy shall apply only with
respect to "subsidies" as defined by the Act if and to the extend required thereby.
2.01 The City of Farmington and the Farmington Economic Development Authority maintain
several policy documents which speak to the general goals and objectives for the
provision of public assistance for private development or redevelopment activities. These
documents include, but are not limited to the current Strategic Plan for Economic
Development and the Comprehensive Land Use Plan.
2.02 The City of Farmington has determined that in order for any project to be considered for
financial assistance, a finding is needed that determines that, "but for" the City's
assistance, this project will not occur or will not occur within a reasonable amount of
time. The City will also need to demonstrate a return on its investment based on one or
more of the public benefit categories listed in this Policy.
2.03 Because projects vary greatly in structure and public benefit derived, each project will be
considered on its own merits. Consideration will be given to projects providing public
benefits in one or more of the following categories.•
a. The creation of new jobs/increase in total payroll. In the case of new job creation,
new jobs must pay an average wage equal to the minimum wage level for
business assistance programs administered by the Minnesota Department of
Employment and Economic Development for cities located in the seven county
metropolitan area in place at the time of an application by any business seeking a
subsidy. Preference will be given to higher paying jobs that also provide benefits
such as health care coverage.
b. Projects that provide value in the forms of needed transportation and other utility
infrastructure improvements including regional infrastructure in the community
that would be completed in conjunction with the project.
C. Redevelopment projects that result in the stabilization of business districts or
neighborhoods by elimination of blighting conditions.
d. Projects that enhance or increase the economic diversity of the community by
attracting businesses or industries not currently located in the City. New job wage
requirements will apply to any new jobs created.
Projects that result in the development of affordable senior or workforce housing.
f. Quality of Life based on business/projects. Those business/entities that provide a
desirable good or service and address an unmet demand in the community will be
considered. New job wage requirements will apply to any new jobs created.
9- Retention of existing jobs. To be considered under this category, it must be
demonstrated — to the satisfaction of the City - that the loss of jobs is specific and
can be demonstrated.
2.04 If a particular project does not involve the creation of jobs, but is nonetheless found to
meet another public purpose of the City it may be considered without any specific job
wage goals, as permitted by Minnesota Statutes. This public purpose has to be something
other than an increase to the City's tax base. Other measurable, specific and tangible
goals must be established. Examples of tangible goals may include redevelopment or
clean-up of a contaminated site or increased tourism.
2.05 Each project shall not only be evaluated against the Business Subsidy Policy but also
against other applicable City of Farmington or Economic Development Authority
policies, including the Comprehensive Land Use Plan, current Strategic Plan for
Economic Development. The level of assistance to be provided for any project is at the
discretion of City of Farmington.
2.06 Because it is not possible to anticipate every type of project which may in its context and
time present desirable community building or preservation goals and objectives, the
governing body must retain the right in its discretion to approve projects and subsidies
which may vary from the principles and criteria of this Policy. The burden will be on the
applicant to demonstrate, to the satisfaction of the City of Farmington, that the public
benefit justifies the requested subsidy.
2.07 In all cases of business subsidy, where the subsidy is equal to or greater than the
threshold prescribed in Minnesota Statutes, a subsidy agreement will be entered into
between the City and the recipient. This agreement will delineate the subsidy structure
and amount, as well as the expected public benefit. The agreement will include
provisions for repayment and other resolution options if the expected public benefit is not
achieved. Upon completion of the project, the actual costs of the elements of the project
eligible for the business subsidy will be verified. All business subsidies will be subject to
the criteria outlined in Minnesota Statutes, Section 116J.933 through Section 1161955
except those subsidies as exempted by same.
CITY OF FARMINGTON,
MINNESOTA
Business Subsidy Policy
SECTION 1. PURPOSE OF POLICY. The purpose of this Business Subsidy Policy
(the "Policy") is to establish criteria by which the City of Farmington, Minnesota (the "City")
may grant a business subsidy to a business (a "Business Subsidy"), as defined in Minnesota
Statutes, Section 116J.993, subdivision 3. This policy sets forth the criteria to be considered by
the City in awarding a Business Subsidy in compliance with Minnesota Statutes, Sections
116J.993 to 116J.995 (the "Act"). The City may deviate from this Policy only by documenting
in writing the reason for deviation and attaching a copy of such documentation to its annual
report to the Department of Trade and Economic Development, as provided in the Act.
SECTION 2. PUBLIC PURPOSES. A Business Subsidy granted hereunder must meet
one or more of the following public purposes::
A. To redevelop blighted or under-utilized areas of the City.
B. To provide for or promote housing for persons and families of low and moderate
incomes within the City.
C. To provide for mixed -income housing developments within the City.
D. To promote neighborhood stabilization and revitalization by the removal of blight
and the upgrading in existing housing stock in residential areas of the City.
E. To create additional job opportunities within the City.
F. To retain local jobs in the City, where job loss is specific and demonstrable.
G. To enhance the economic diversity of the City and to provide essential products
and services within the City.
A Business Subsidy shall not be granted hereunder merely because it is found that the
granting of the Business Subsidy will result in an increase in the tax base of the City.
SECTION 3. MANDATORY MINIMUM CRITERIA. Any project for which a
Business Subsidy is granted by the City shall meet the following mandatory minimum criteria:
A. Where the public puipose of a project is the creation of additional jobs in the City,
the project receiving business assistance must create a minimum of 1 new full-
time equivalent [FTE] job in the community, with a minimum wage of at least
125% of the prevailing federal minimum wage.
B. Where the public purpose of a project is the retention of existing jobs in the City,
the party requesting the Business Subsidy shall provide evidence that the loss of
jobs in the City is imminent in the absence of the granting of the Business
Subsidy.
C. Any party requesting a Business Subsidy must be able to demonstrate successful
general development capability, as well as specific capability in the type and size
of development proposed.
D. All project proposals shall, in the opinion of the City Council, optimize the
private development potential of a site.
E. The project must meet the "but foe' test, meaning that but for the Business
Subsidy requested, it would not be financially feasible for the project to proceed
in the manner as proposed.
F. The project must not generate significant environmental concerns in the opinion
of local, state or federal governmental units.
G. The project must be in accordance with the comprehensive plan, zoning,
redevelopment plans, and policies of the City.
SECTION 4. AWARD OF BUSINESS SUBSIDY. A project meeting the above criteria will
not automatically be approved for a Business Subsidy. Meeting such criteria creates no
contractual rights on the part of any party seeking a Business Subsidy. A Business Subsidy shall
be provided within applicable state and local legal requirements. In granting a:Business Subsidy,
the City shall enter into an agreement with the recipient that provides the information, wage and
job goals, commitment to provide necessary reporting data, recourse for failure to meet such
goals, and other covenants, as required by the Act.
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 - Fax 651.280.6899
www.ci.fannington.mn.us
Economic Development Authority
Adam Kienberger, Community Development Director
March Director's Report
March 23, 2015
INTRODUCTION/DISCUSSION
State of the City
State of the City was on March 18th at City Hall. Approximately 30 people were in attendance to hear the Mayor
highlight many topics including the City's financial stability, Strategic Plan, and an abundance of partnerships. A
copy of the slides from the Mayor's presentation is attached.
Council Strategic Plan Update
The City Council and staff met on Friday, March 6th to discuss and update the City Council's Strategic Plan.
Ongoing priorities include:
- Organizational Efficiencies
- Vermillion River Crossings Progress
- Citizen Survey Results
- Financial Planning for the Future
Specific actions will be discussed at an upcoming Council work session and a formal plan will be adopted at a future
regular meeting.
Broadband Update
The Mayor/Managers group met recently to discuss next steps in the county -wide broadband initiative. Direction was
given to proceed with defining parameters of a joint powers agreement between Dakota County and each of the cities
within Dakota County on fiber deployment and management. Articles from the Star Tribune and Sun This Week
highlighting this topic are attached.
Building Permit Report
As of the beginning of this week, a total of 8 permits have been issued for new residential construction (all single-
family). During 2014, the City issued a total of 87 single-family building permits.
Miscellaneous Articles
The Star Tribune recently featured a very positive article on the Open to Business program. This program continues
to be a valuable resource in Farmington to those looking to start or expand a business. Also included are the latest
unemployment statistics from the State of Minnesota, and an article from a City of Shakopee publication discussing
business attraction and economic development.
ACTION REQUESTED
None, this report is intended to be a monthly update on various development and industry related topics.
F-A Ik f-IT41 I I Ti I =1 Z k
Type Description
D Backup Material Supplemental Articles
D Backup Material SCC 2015
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i business adviser Laurie Crow for assistance.
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March 19,, 2015 1
DEED Media <MNDEED
Thursday� March 19, 20-A
Adam Kienberger
February 2015 Employrr
"
Sectors that lost jobs e manufacturing (d
services (down 300) and *Information (down
Two sectors lost jobs in the past 12 months:
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Construction
Trade,
Information
Financial Activities
Prof,, Bus, Services
and -Health
Leisure a • Hospita
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City of Farmington Mission Statement
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Population:
22,051
Median Age
33.1
Housing Units
7,448
Roane Ownership Rate
8 �'l
Bach. [degree/nigher
32.1%
Median Household income
$86,300
2014 City Council Election
Thank you to Christy Jo Fogarty for her years o
service
19
2015 City Council Strategic Plan
Continued focus on:
* Organizational Efficiencies
* Vermillion River Crossings Progress
* Citizen Survey Results
* Financial Planning for the Future
0
i
0
Financial Imp2$ eme
' Cityadopted i sollo budget :a,<a1k tctual
revenues exceeded budgeted revenues and actual
expenditutes were less than budgeted
Genera Fu «: s«
the City »«. able :# further «ret a2ts f<nd
balance tacome within strikingdistance of the SUte
udito . minimum funding ,y<®
9
3/19/2015<
Community Development
Fired a Community Development director
* Proactive ordinance amendments for new and
emerging types of businesses
Downtown Redevelopment Guide initiative
a. r
0
Building Permits
* Farmington's estimated population at the end of
2014 was ; up from 22,154 at the end of 2013.
In 2014 we had 87 new single family residential
building r its with a value of $220,644 per
unit. In 2013 we had 123 single family building;
permits with a value of $198,645 per unit..
City staff performed 3,858 inspections on
properties in Farmington in 2014 compared to 4,338
in2013.
CommercialExpansion
Valmoht building expansion
20,60• s
Dakotat6untyLumb&expansion
Newwatohouse
Conserving Resources. Improving Life;
U
MEM
Commercial Expansion
Farmington Library remodel
Housed d in City Hall during construction
RI
Welcome New Businesses
In 2014 and 2015 we welcomed a number of new
business to our community including:
Cross it Calypso
Farmington Tobacc
Farmington Gymnastics Center
Contracting
Amhara Salo
Papa Murphy's Pizza
Cedar South Auto Sales
9*
MEM
Welcome New Businesses
In 2014 and 2015 we welcomed a number of new
business to our community including:
Taco Andal
Craw Interrupted remodel
Edward Jones remodel
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5
NEM
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HEM
Fire Department
First fall -time Fire Chief'
[ember of fire calls in 2014 = 241
. % increase from 2013
50�
300
250 0
22523 227 235 241
200 1? 14
150
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2002 2004 2006 2008 2010 2012 2014 2016
Partnerships
Dakota Carty dakdta
county ,Fw ok,
ISd 19
Dakota County Regional Chamber
Farmington Business Association
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Neighboring Township
Cate Rack;
:. Empire AREA PUBUC SCHOOLS
Eureka:
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The City communicates
nicates
with residents in many
ways
Newsletter`
Community Calendar
Website
acebo k
Twitter
Nixie
Local Newspapers
Cable TV 180
IR
€rty Calendar
Farmer's Market
Dew mays
FBA events
Car show/Block Party
Dazzle Day
Faster Carnival
Dakota County Fair
Community Survey
implemented
developownt plans being implemented
a 4 , i e •