HomeMy WebLinkAbout08.24.09 EDA Packet
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
August 24,2009 - 7:00 p.m.
City Council Chambers, City Hall
Authority Members
Terry Donnelly
1. Call Meeting to Order
2. Pledge of Allegiance
3. Approve Agenda
4. Citizens Comments/Presentations
(7:00 p.m.)
Chair, Christy Jo Fogarty
Vice-Chair, Steve Wilson
Mayor Todd Larson
Julie May
5. Consent Agenda (see attached)
a. Meeting Minutes: June 22, 2009
b. Bills: June 22, 2009 - August 23, 2009
c. Budget Details: June & July 2009
d. Industrial Park Project Expenditures Update
e. Business Development Grant Extension Requests
i. Installed Building Solutions
ii. Farmington Truck Center
City Staff Reoresentatives
Executive Director,
Peter Herlofsky
City Administrator
Tina Honsmeier
Economic Development
Specialist
6. Public Hearings (None)
7. Continued Business
a. Proposed Industrial Park Expansion Update
Cindy Muller
Executive Assistant
8. New Business
a. Proposal(s) for Purchase of 308 Elm Street (Parks Garage)
b. Exchange Bank Building Lawsuit
430 Third Street
Farmington, MN 55024
9. City Staff Reports, see attached
a. Economic Update, volume 25
b. The Bridge, Community Development Sedion
Phone: 651.280.6800
htto:/ /www.ciJarminaton.mn.us
10.Adjourn
The Farmington EDA's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life
by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through
development and redevelopment.
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
Regular Meeting
June 22, 2009
1. CALL TO ORDER
The meeting was called to order by Chair Fogarty at 7:00 p.m.
Members Present: Fogarty, Donnelly, Larson, May, Wilson
Members Absent: None
Also Present: Peter Herlofsky, City Administrator; Tina Hansmeier, Economic
Development Specialist
2. PLEDGE OF ALLEGIANCE
3. APPROVEAGENDA
MOTION by Larson, second by Wilson to approve the Agenda. APIF, MOTION
CARRIED.
4. CITIZEN COMMENTS/PRESENTATIONS
a) Vermillion River Crossings CDA Senior Apartments - Kari Gill
Farmington's population is expected to grow to just under 33,000 by 2030. The
amount of rental housing in Farmington is 12.5%. The average is 22%. The
CDA is purchasing a parcel in Vermillion River Crossings for senior apartments.
Ms. Gill described the amenities provided in their housing. The site is 2.44 acres
and will accommodate a 60-unit development. It is located at Dushane A venue
and Spruce Street. Construction will start in 2011. City Administrator Herlofsky
noted staff is hoping to start construction of Dushane Avenue in August.
5. CONSENT AGENDA
MOTION by Larson, second by May to approve the Consent Agenda as follows:
a) Meeting Minutes, May 26, 2009
b) Bills, May 15 - June 17,2009
c) Budget Details, May 2009
d) Future Industrial Park Project Expenditures
APIF, MOTION CARRIED.
6. PUBLIC HEARINGS
7. CONTINUED BUSINESS
a) Report Comparing Traditional Design and Low Impact Development (LID)
Design
This was provided for the EDA's information. Chair Fogarty stated the
Vermillion River Watershed Organization studied the Crossroads development in
Lakeville and analyzed the development as if it had been a low impact
EOA Minutes (Regular)
June 22, 2009
Page 2
development and determined whether they would lose square footage in
buildings, would there be enough parking, etc. The conclusion was there could be
low impact development and still have the same amount of square footage in
buildings and the appropriate amount of parking. It determines what items can be
brought into a development that do not increase the cost, but decrease the impact
on the environment. The study showed it did not increase the number of lots, and
there is more potential developable area, and it reduces development cost. Chair
Fogarty felt with the big blue blob north of the industrial area, she felt it was
important to know how to reduce that and have as much buildable land as
possible.
b) Farmers' Market Update
The first night will be July 9, from 3:00 -7:00 p.m. and is located at 109 Spruce
Street. There are 14 vendors registered. Products should be locally grown. The
proper insurance has been obtained.
8. NEW BUSINESS
9. CITY STAFF REPORTS
a) Economic Update, volume 23
b) Business Guide, June 2009 Update
Staff presented the above publications for the EDA's information.
Member Wilson requested having Ms. Maribeth Vanderbeck come to the July EDA
meeting to discuss the economic impact of Dew Days. City Administrator Herlofsky
suggested EDA representatives go to the CEEF wrap-up meeting for Dew Days.
10. Closed Session
a) Review Property Appraisal Data and Consider Proposal(s) for 308 Elm
Street
11. ADJOURN
MOTION by Wilson, second by Larson to adjourn at 8:37 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
:f-~~~
Cynthia Muller
Executive Assistant
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City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Lisa Dargis, Administrative Assistant
SUBJECT:
Installed Building Solutions Extension Request
DATE:
August 24, 2009
INTRODUCTION
Staff has received a request for an extension from Business Development Grant recipients, Installed
Building Solutions.
DISCUSSION
The Business Development Grant Program contains requirements for recipients of grant funding to
commence construction (or in this case purchases) of grant funded projects within 90 days of the
grant award, and complete the project within 1 year. The grant funds awarded to Installed
Building Solutions are to purchase equipment and storage racks for their new division of interior
products. As of today's date, they have not begun purchase of these items, but they are in the
planning and design phase of their project and continue to move forward. They have requested
an extension of 60 days to complete their design and begin purchasing the grant funded items.
The Business Development Grant Program does allow for one extension to be granted at the
discretion of the EDA.
ACTION REQUESTED
Grant Installed Building Solutions a 60 day extension from today's date, to commence purchases
to be applied to their grant award.
R....es..p. .e~fflJJ1Y~'..~.. bmitted,
,~/1 '< ~
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I:'~ ~- y//'
Lisa Dargis, EDFP 0
L?
INSTALLED BUILDING SOLUTIONS
OFFICE 651-4:63-9333
FAX 651-463-9339
City of Farmington
Lisa Dargis
430 Third Street
Farmington, Minnesota 55024
RE: EDA Grant Extension
To Whom it May Concern,
Installed Building Solutions, LLC., was awarded a Business Development Grant. At this time, we
are asking to be offered an extension on the time in which it needs to be used by.
Our intentions are the same as originally purposed, we intend to use the grant funds to create a
storage system, however, due to the magnitude of the project, we have been unable to complete the
project prior to the deadline.
We have received multiple estimates and are working with one parti~U1ar company in obtaining the
exact system tha,t would benefit us most.
If you would please extend our Grant Funds for an additional 60 days, it would be greatly
appreciated and would allow us to complete the project in which these funds are intended.
Please feel free to contact me if you have questions or would like me to provide any additional
information for this extension.
Your time and consideration are greatly appreciated.
Regards,
J erem LaBeau
Installed Building Solutions, LLC.
651-463-9333
517 First Street · Farmington, MN 55024
Lie. # 20322193
City of Farmington
430 Third Street
Farmington, Minnesota
651.463.7111 . Fax 651.463.2591
www.ci.farmington.mn.us
TO:
EDA Members
Arfr&~j Lf/Z7/09
FROM:
Lisa Dargis, Administrative Assistant
SUBJECT:
Installed Building Solutions - Business Development Grant Application
DATE:
April 27, 2009
INTRODUCTION
Staff has received an application from Installed Building Solutions for a Business Development
Grant for the business expansion or relocation use.
DISCUSSION
Installed Building Solutions has been located in Farmington since 2002. They currently offer
insulationl spray foam and waterproofing services, and would like to expand their company
offering to include some interior product services. The expansion would retain current positions,
and allow the company to hire as many as eight new employees. As the jobs that will be created
are typically obtainable by low to moderate income persons, staff feels that this is an appropriate
use of CDBG grant funding and meets the requirements of the grant program. The Dakota
County Community Development Agency has reviewed the application and approved the
expansion project. Installed Building Solutions is a valuable community asset and we are very
pleased that they have chosen to expand their business in Farmington. Grant funding will be used
to purchase equipment for the new division and a letter outlining the company's plans in more
------------c1eta ills aftacnea.
ACTION REQUESTED
Authorize award of a City of Farmington Business Development Grant in the amount of $10,500
to Installed Building Solutions.
. .R~Sfi!'e~&I~/submitted'
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STATEMENT OF INTENTION FOR
BUSINESS DEVELOPMENT GRANT
APRIL 2009
Since opening in 2002, Installed Building Solutions, located in downtown Farmington, has grown
to be a leader in the services of insulation, spray foam and waterproofing. Currendy offering a wide
variety of products and services to meet clients needs, employing upwards of thirty skilled laborers
and office professionals.
Installed Building Solutions is committed to providing quality services and product, along with
continued company growth even through turbulent industry times.
During this time of market and economic downturn, Installed Building Solutions has made the
decision to expand their business, to open a new division of interior solutions. The division
expansion is to include: Bath fixtures, shower doors, mirrors and closet systems. A completely
different realm of services than currendy offered. This new division will be similar to the existing,
as it will continue to offer the same expected quality, installation, and workmanship.
The new division will allow Installed Building Solutions to retain employees that are currendy
employed by the company and also add to that number. This expansion will allow for 'job creation
in both the insulation and interior solutions divisions. With the new interior solutions division, it is
expected that three new jobs will be created within the first year; and five plus in the following year.
The positions will continue to be geared towards skilled laborers, creating employment opportunity
for lower income applicants.
With funds from the Business Development Grant, Installed Building Solutions will have the funds
to get the new division off the ground and moving ahead in a quicker manner allowing for
additional company growth and expansion.
Our intentions would be to use the funds received through the Business Development Grant to
purchase the needed equipment to start the new division. Some of the items required initially are:
Cutting table and glass cutter, edge polisher, storage racks, as well as a full gamut of smaller items
that are required in order to perform the task at hand.
With the assistance of the Business Development Grant, we hope to place another division into the
category of "Industry Leader!"
We thank your for your time and consideration. Please feel free to contact us if there is any
additional information that we can provide to you.
Sincerely,
Jeremy LaBeau
Installed Building Solutions, LLC.
Owner
517 First Street
Farmington, MN 55024
Phone: 651.463.9333
Fax: 651.463.9339
jlabeau@frontiernet.net
City of Farmington
Business Development Grant
Grant Agreement
This agreement is made and entered into this ~ day of VV\~ 2009, by and between Installed Building
Solutions, LLC., a Minnesota corporation, having its princi~t 517 First Street, Farmington, Minnesota
(hereinafter referred to as "Grantee") and the Economic Development Authority in and for the City of
Farmington, a public body corporate and politic, having its principal offices at 430 Third Street, Farmington,
Minnesota (hereinafter referred to as "Grantor").
WHEREAS, the Grantor is a Subrecipient of Dakota County Community Development Agency in the County's
Community Development Block Grant ("CDBG") Program; and
WHEREAS, the Grantor has established a Business Development Grant funded by its entitlement of CDBG
funds; and
WHEREAS, the Grantee has proposed a business development project to include business expansion or relocation
assistance; and
WHEREAS, one hundred percent (100%) of the shares of grantee are held by Jeremy LaBeau and Steve Finden
("Business Owners"); and
NOW THEREFORE, in consideration ofthe Grant and the mutual covenants contained herein, the parties agree
as follows:
1. The Grantor agrees to provide a maximum of$10,500.00 (ten thousand five hundred dollars and no cents)
in CDBG funds to the Grantee for the purpose of business expansion to add a new division of interior
solutions and fixture installation to its existing company offering of products and services.
2. The Grantor will provide $10,500.00 to be used to purchase equipment for glass cutting, polishing and
other equipment required for preparation and installation of interior fixtures.
3. Grant funds will be paid on a reimbursement basis for payments required to purchase the approved
equipment.
4. The Grantee will provide the Grantor copies of all bid documents, and verification of payments for .
equipment in the form of receipts and copies of checks or payment issued.
5. The Grantee will be required to verify that 51% of permanent jobs created on a full time equivalent basis
are low to moderate income. These jobs must be documented as either being held by or available to low
to moderate income persons (per 24 CFRPart 570.208 (a)(4)).
6. The assistance will not result in the relocation of any industrial or commercial plant facility or operation
from one Labor Market Area to another. Furthermore, neither the grantee nor any subsidiaries has plans
. to relocate jobs that would results in a significant job loss. If actions as a result of this grant results in
relocation prohibited by the 24 CFR 570.210, reimbursement of the grant will be made immediately in
full.
7. The Grantee agrees to submit verification of employee income annually to the Project Coordinator for a
period of five years.
8. The Grantee agrees not to relocate outside of the City of Farmington for a period oftbree years after th
date of this grant agreement.
1
\
9. The Grantee shall defend, indemnify, and hold harmless the officers and employees of the Grantor and the
Dakota County CDA from all liability and claims for damages arising from bodily injury, death, property
damage, siclmess, disease, or loss and expense resulting from or alleged to result from Grantee's
operations under this Agreement.
10. The Grantee agrees to keep in force at all times during the term of this Agreement a comprehensive
general liability insurance policy covering any injury and/or property damage caused by any negligent act
or omission on the part of the Grantee, its agents, or employees in the performance of or with relation to
the work or services to be performed or furnished by the Grantee under the terms of this Agreement. The
Grantee further agrees to maintain worker's compensation coverage in accordance with state law.
Evidence of such insurance policies shall be provided to the Grantor prior to initiation of clearance
activities covered by this Agreement.
11. The Grantee agrees to comply with all local, state, and federal equal employment opportunity laws and
ordinances as they pertain to unlawful discrimination on account of race, color, creed, religion, national
origin, sex, marital status, status with regard to public assistance, familial status, disability or age.
12. The Grantee agrees to comply with other Federal CDBG contract provisions as detailed in Attachment A.
13. Grantee agrees that if there occurs any breach in the terms of this agreement after payment of CDBG
funds that is not cured within 30 days or such longer period as may be necessary after written notice from
the Grantor to the Grantee of such breach, the Grantor may take whatever action, including legal,
equitable or administrative action, which may appear necessary or desirable to the Grantor, to enforce
performance and observance of any obligation, agreement, or covenant of the Grantee under this
Agreement. In addition, upon said breach and the failure to cure said breach within 30 days or such
longer period as may be necessary after written notice from the Grantor to the Grantee of such breach, the
Grantor shall have the option to require the Grantee to reimburse the Grantor CDBG funds, plus any
expenses incurred by the Grantor to include, but not necessarily be limited to, administrative and legal
expenses and any investment of CDBG funds.
IN WITNESS WHEREOF, the parties hereto have hereby executed this Agreement as of the year and date written
above.
GRANTOR:
GRANTEE:
CITY OF FARMINGTON
ECONOMIC DEVELOPMENT AUTHORITY
INSTALLED BUILDING SOLUTIONS, LLC.
BY:~~?~~
\r;f.~i/
BY:~
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ITS:
ITS: M Ik ttJ, Itc, ~V\
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2
Attachment A - PROVISIONS FOR CDBG FUNDED CONTRACTS
I. SPECIAL EQUAL OPPORTUNITY PROVISIONS
A. Activities and Contracts Not Subject to Executive Order 11246. as Amended
(Applicable to Federally assisted construction contracts and related subcontracts of$10,000 and under.)
During the performance of this contract, the contractor agrees as follows:
1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color,
religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants for
employment are employed, and that employees are treated during employment, without regard to their race,
color, religion, sex, or national origin. Such action shall include, but not be limited to, the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination;
rates of payor other forms of compensation; and selection for training, including apprenticeship.
2. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices
setting forth the provisions of this non-discrimination clause. The Contractor shall state that all qualified
applicants will receive consideration for employment without regard to race, color, religion, sex, or national
origin.
3. Contractors shall incorporate the foregoing requirements in all subcontracts.
B. Executive Order 11245
(Applicable to Federally assisted contracts and related subcontracts of $ 10,000 and over.)
1. Section 202 Equal Opportunity Clause
During the performance of this contract, the contractor agrees as follows:
(A) The contractor will not discriminate against any employee or applicant for employment because of race,
color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants
are employed, and that employees are treated during employment, without regard to their race, color,
religion, sex, or national origin. Such action shall include, but not be limited to the following: employment,
upgrading, demotion, or transfer; recruitment, or recruitment advertising; layoff or termination, rates of pay
or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees
to post in conspicuous places, available to employees and applicants for employment, notices to be
provided setting forth the provisions of this non-discrimination clause.
(B) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the
contractor, state that all qualified applicants will receive consideration without regard to race, color,
religion, sex, or national origin.
(C) The contractor will send to each labor union or representative of workers with which he has a collective
bargaining agreement or other contract or understanding, a notice advising the said labor union or workers'
representatives of the contractor's commitment under this section, and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
(D) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the
rules, regulations, and relevant orders of the Secretary of Labor.
(E) The contractor will furnish all information and reports required by Executive Order 11246 of September
24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will
permit access to his books, records, and accounts by the Department and the Secretary. of Labor for
purposes of investigation to ascertain compliance with such rules, regulations, and others.
(F) In the event of the contractor's non-compliance with the non-discrimination clauses of this contract or with
any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in
whole or in part and the contractor may be declared ineligible in part and the contractor may be declared
ineligible for further Government contracts in accordance with procedures authorized in Executive Order
11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise
provided by law.
(G) The contractor will include the provisions of the sentence immediately preceding paragraph (A) and the
provisions of paragraphs (A) through (G) in every subcontract or purchase order unless exempted by rules,
regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of
1
September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase order as the Department may
direct as a means of enforcing such provisions, including sanctions for non-compliance. Provided,
however, that in the event a contractor becomes involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by the Department, the contractor may request the
United States to enter into such litigation to protect the interest of the United States.
2. Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity (Executive Order
11246).
(A) The Offer's or Bidder's attention is called to the "Equal Opportunity Clause" and the "Standard Fedeml
Equal Employment Opportunity Construction Contract Specifications" set forth herein.
(B) The goals and timetables for minority and female participation, expressed in percentage terms for the
Contractor's aggregate workforce in each trade on all construction work in the covered area, are as follows:
Goals for Women / Minority Participation
5% Ovemll
Timetables:
N/A
These goals are applicable to all the Contractor's construction work (whether or not it is Federal or
fedemlly assisted) performed in the covered area. The Contractor's compliance with the Executive Order
and the regulations in 41 CFR Part 60-4 shall be based on its implementation of the Equal Opportunity
Clause, specific affirmative action obligations required by the specifications set forth in 41- CFR 60-4.3
(a), and its efforts to meet the goals established for the geographica1 area where the contract resulting from
this solicitation is to be performed. The hours of minority and female employment and training must be
substantially uniform throughout the length of the contract, and in each trade, and the contractor shall make
a good faith effort to employ minorities and women evenly on each of its projects. The transfer of minority
or female employees or trainees from Contractor to Contractor or from project to project for the sole
purpose of meeting the Contractor's goals shall be a violation of the contract, the Executive Order and the
regulations in 41 CFR Part 60-4. Compliance with the goals will be measured against the total work hours
performed.
(C) The Contractor shall provide written notification to the Director of the Office of Federal Contract
Compliance Programs within 10 working days of the award of any construction supcontract in excess of $
10,000 at any tier for construction work under the contract resulting from this solicitation. The notification
shall list the name, address and telephone number of the subcontractor; employer identification number;
estimated dollar amount of the identification number; estimated dollar amount of the subcontract; estimated
starting and completion dates of the subcontract; and the geographical area in which the contract is to be
performed.
(D) As used in this Notice, and in the contract resulting form this solicitation, the "Covered Area" is Dakota
County, Minnesota.
3. Standard Federal Equal Employment Opportunity Construction Contract Specifications (Executive Order
11246)
(A) As used in these specifications:
(1) "Covered area" means the geographical area described in the solicitation from which this contract
resulted;
(2) "Director" means Director, Office of Federal Contract Compliance Programs, United States
Department of Labor, or any person to whom the Director delegates authority;
(3) "Employer identification number" means the Federal Social Security number used on the Employer's
Quarterly Federal Tax Return, U.S. Treasury Department Form 941.
(4) "Minority" includes:
(a) Black (all persons having origins in any ofthe Black African racial groups not of Hispanic origin);
2
(b) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American or other
Spanish Culture or origin, regardless of race);
(c) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far
East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands): and
(d) American Indian or Alaskan Native (all persons having origins in any of the original peoples of
North American and maintaining identifiable tribal affiliations through membership and
participation or community identification).
(B) Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any
construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of
these specifications and the Notice which contains the applicable goals for minority and female
participation and which is set forth in the solicitations from which this contract resulted.
(C) If the Contractor is participating (pursuant to 41 CPR 60-4.5) in a Hometown Plan approved by the U.S.
Department of Labor in the covered area either individually or through an association, its affirmative action
obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that for
those trades which have unions participating in the Plan. Contractors must be able to demonstrate their
participation in and compliance with the provisions of any such Hometown Plan. Each Contractor or
subcontractor participating in an approved Plan is individually required to comply with its obligations
under the EEO clause, and to make good faith effort to achieve each goal under the Plan in each trade in
which it has employees. The overall good faith performance by other Contractors or Subcontractors toward
a goal in an approved Plan does not excuse any covered Contractor's or Subcontractor's failure to take
good faith efforts to achieve the Plan goals and timetables.
(D) The Contractor shall implement the specific affirmative action standards provided in paragraphs (G)(1)
through (16) of these specifications. The goals set forth in the solicitation from which this contract resulted
are expressed as percentages of the total hours of employment and training of minority and female
employees the Contractor should reasonably be able to achieve in each construction trade in which it has
employees in the covered area. The Contractor is expected to make substantially uniform progress toward
its goals in each craft during the period specified.
(E) Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the
Contractor has a collective bargaining agreement, to refer either minorities or women shall excuse the
Contractor's obligations under these specifications, Executive Order 11246, nor the regulations
promulgated pursuant thereto.
(F) In order for the non-working training hours of apprentices and trainees to be counted in meeting the goals,
such apprentices and trainees must be counted in meeting the goals, such apprentices and trainees must be
employed by the Contractor during the training period, and the Contractor must have made a commitment
to employ the apprentices and trainees at the completion of their training, subject to the availability of
employment opportunities. Trainees must be trained pursuant to training programs approved by the U.S.
Department of Labor.
(G) The Contractor shall take specific affirmative actions to ensure equal employment opportunity. The
evaluation of the Contractor's compliance with these specifications shall be based upon its efforts to
achieve maximum results from its actions. The Contractor shall document these efforts fully,. and shall
implement affirmative action steps at least as extensive as the following;
(1) Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites,
and in all facilities at which the Contractor's employees are assigned to work. The Contractor shall
specifically ensure that all foremen, superintendents, and other on-site supervisory personnel are aware
of and carry out the Contractor's obligation to maintain such a working environment, with specific
attention to minority or female individuals working at such sites or in such facilities.
(2) Establish and maintain a current list of minority and female recruitment sources, provide written
notification to minority and female recruitment sources and to community organizations when the
Contractor or its unions have employment opportunities available, and maintain a record of the
organizations' responses.
(3) Maintain a current file of the names, addresses and telephone numbers of each minority and female
off-the-street applicant and minority or female referral from a union, a recruitment source or
community organization and of what action was taken with respect to each such individual. If such
individual was sent to the union hiring hall for referral and was not referred back to the Contractor by
the union or, ifreferred, not employed by the Contractor, this shall be documented in the file with the
reason therefore, along with whatever additional actions the Contractor may have taken.
3
(4) Provide immediate notification to the Director when the union or unions with which the Contractor has
a collective bargaining agreement has not referred to the Contractor a minority person or woman sent
by the Contractor, or when the Contractor has other information that the union referral process has
impeded the Contractor's efforts to meet its obligations.
(5) Develop on-the-job training opportunities and/or participate in training programs for the area which
expressly include minorities and women, including upgrading programs and apprenticeship needs,
especially those programs funded or approved by the Department of Labor. The Contractor shall
provide notice of these programs to the sources compiled under (G)(2) above.
(6) Disseminate the Contractor's EEO policy by providing notice of the policy to unions and training
programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations;
by including it in any policy manual and collective bargaining agreement; by publicizing it in the
company newspaper, annual report, etc.; by specific review of the policy with all management
personnel and with all minority and female employees at lease once a year; and by posting the
company EEO policy on bulletin boards accessible to all employees at each location where
construction work is performed.
(7) Review, at least annually, the company's EEO policy and affmnative action obligations under these
specifications with all employees having any responsibility for hiring, assignment, layoff, termination
or other employment decisions including specific review of these items with onsite supervisory
personnel such as Superintendents, General Foremen, etc., prior to the initiation of construction work
at any job site. A written record shall be made and maintained identifying the time and place of these
meetings, persons attending, subject matter discussed, and disposition of the subject matter.
(8) Disseminate the contractor's EEO policy externally be including it any advertising in the news media,
specifically including minority and female news media, and providing written notification to and
discussing the Contractor's EEO policy with other Contractors and Subcontractors with whom the
Contractor does or anticipates doing business.
(9) Direct its recruitment efforts, both oral and written, to minority, female and community organizations,
to schools with minority and female students and to minority and female recruitment and training
organizations serving the Contractor's recruitment area and employment needs. Not later than one
month prior to the date for the acceptance of applications for apprenticeship or other training by any
recruitment source, the Contractor shall send written notification to organizations such as the above,
describing the openings, screening procedures, and tests to be used in the selection process.
(lO)Encourage present minority and female employees to recruit other minority persons and women and,
where reasonable, provide after school, summer and vacation employment to minority and female
youths both on the site and in other areas of a Contractor's work force.
(11) Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR
part 60-3.
(12) Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel for
promotional opportunities and encourage these employees to seek or to prepare for, through
appropriate training, etc., such opportunities.
(13) Ensure that seniority practices, job classifications, work assignments and other personnel practices, do
not have a discriminatory effect by continually monitoring all personnel and employment related
activities to ensure that the EEO policy and the Contractor's obligations under these specifications are
being carried out.
(14)Ensure that all facilities and company activities are non-segregated except that separate or single-user
toilet and necessary changing facilities shall be provided to assure privacy between the sexes.
(15)Document and maintain a record of all solicitations of offers for subcontracts from minority and
female construction contractors and suppliers, including circulation of solicitations to minority and
female contractor associations and other business associations.
(16)Conduct a review, at least annually, of all supervisors' adherence to and performance under the
Contractor's EEO policies and affirmative action obligations.
(H) Contractors are encouraged to participate in voluntary associations which assist in fulfilling one or more of
their affirmative action obligations [(G)(I) through (16)]. The efforts of a contractor association, joint
contractor-union, contractor-community, or other similar groups of which the contractor is a member and
participant, may be asserted as fulfilling anyone or more of its obligations as enumerated above provided
that the Contractor actively participates in the group, makes every effort to assure that the group has a
positive impact on the employment of minorities and women in the industry, ensures that the concrete
4
benefits of the program are reflected in the Contractor's minority and female workforce participation,
makes a good faith effort to meet its individual goals and timetables, and can provide access to
documentation which demonstrates the effectiveness of actions taken on behalf ofthe Contractor.
(I) A single goal for minorities and a separate single goal for women have been established. The Contractor,
however, is required to provide equal employment opportunity and to take affirmative action for all
minority groups, both male and female, and all women, both minority and non-minority. Consequently, the
Contractor may be in violation of the Executive Order if a particular group is employed in a substantially
disparate manner (for example, even though the Contractor has achieved its goals for women generally, the
Contractor may be in violation of the Executive Order if a specific minority group of women is
underutilized).
(J) The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against
any person because of race, color, religion, sex, or national origin.
(K) The Contractor shall not enter into any subcontract with any person or firm debarred from Government
contracts pursuant to Executive Order 11246.
(L) The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the
Equal Opportunity Clause, including suspension, termination and cancellation of existing subcontracts as
may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing
regulations, by the Office of Federal Contract Compliance Programs. Any Contractor who fails to carry
out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as
amended.
(M) The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative
action steps, at least as extensive as those standards prescribed in paragraph (G) of these specifications, so
as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor
fails to comply with the requirements of the Executive Order, the implementing regulations, or these
specifications, the Director shall proceed in accordance with 41 CFR 60-4.8.
(N) The Contractor shall designate a responsible official to monitor all employment related activity to ensure
that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may
be required by the Government and to keep records. Records shall at least include for each employee the
name, address, telephone numbers, construction trade, union affiliation if any, employee identification
number assigned, social security number, race, sex, status (e.g., mechanic, apprentice trainee, helper, or
laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations
at which the work was performed. Records shall be maintained in an easily understandable and retrievable
form; however, to the degree that existing records satisfy this requirement, contractors shall not be required
to maintain separate records.
(0) Nothing herein provided shall be constructed as a limitation upon the application of other laws which
establish different standards of compliance or upon the application of requirements for the hiring of local or
other area residents (e.g., those under the Public Works Employment Act of 1977 and the Community
Development Block Grant Program).
4. Segregated Facilities
The Contractor or Subcontractor will not maintain any facility which is provided for their employees in a
segregated manner or permit their employees to perform their services at any location under their control where
segregated facilities are maintained except that separate or single user toilet and necessary changing facilities
shall be provided to assure privacy between the sexes.
C. Section 503 Handicapped - Affirmative Action for Handicapped Workers
(Applicable to Federally assisted contracts and related subcontracts if$2,500 or over.)
1. The Contractor will not discriminate against any employee or applicant for employment because of physical or
mental handicap in regard to any position for which the employee or applicant for employment is qualified.
The Contractor agrees to take affIrmative action to employ, advance in employment and otherwise treat
qualified handicapped individuals without discrimination based upon their physical or mental handicap in all
employment practices such as the following: employment, upgrading, demotion or transfer, recruitment,
advertising, layoff or termination, rates of payor other forms of compensation, and selection for training,
including apprenticeship.
2. The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor
issued pursuant to the Act.
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3. In the event of the Contractor's noncompliance with the requirements of this clause, actions for noncompliance
may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of Labor issued
pursuant to the Act.
4. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment,
notices in a form to be prescribed by the Director, provided by or through the contracting officer. Such notices
shall state the Contractor's obligation under the law to take affirmative action to employ and advance in
employment qualified handicapped employees and applicants for employment, and the rights of applicants and
employees.
5. The Contractor shall notify each labor union or representative of workers with which it has a collective
bargaining agreement or other contract understanding, that the Contractor is bound by the terms of Section 503
of the Rehabilitation Act of 1973, and is committed to take affirmative action to employ and advance in
employment physically and mentally handicapped individuals.
6. The Contractor will include the provisions of this clause in every subcontract or purchase order of $ 2,500 or
more unless exempted by rules, regulations, or orders of the Secretary issued pursuant to Section 503 of the Act,
so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action
with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance
Programs may direct to enforce such provisions, including action for non-compliance.
D. Section 402 Veterans of the Vietnam Era
(Applicable to Federally assisted contracts and related subcontracts of$IO,OOO or over.)
I. Affirmative Action for Disabled for Disabled Veterans and Veterans of the Vietnam Era
(A) The Contractor will not discriminate against any employee or applicant for employment because he or she
is a disabled veteran or veteran of the Vietnam Era in regard to any position for which the employee or
applicant for employment is qualified. The Contractor agrees to take affirmative action to employ, advance
in employment and otherwise treat qualified disabled veterans and veterans of the Vietnam Era without
discrimination based upon their disability or veteran status in all employment practices such as the
following: employment upgrading, demotion or transfer, recruitment, advertising, layoff or termination,
rates of payor other forms of compensation, and selection for training, including apprenticeship.
(B) The Contractor agrees that all suitable employment openings of the Contractor which exist at the time of
the execution of this contract and those which occur during the performance of this contract, including
those not generated by this contract and including those occurring at an establishment of the Contractor
other than the one wherein the contract is being performed but excluding those of independently operated
corporate affiliates, shall be listed at an appropriate local office of the State employment service system
wherein the opening occurs. The Contractor further agrees to provide such reports to such local office
regarding employment openings and hires as may be required. State and local government agencies
holding Federal contracts of $10,000 or more shall also list all their suitable openings with the appropriate
office ofthe State employment service, but are not required to provide those reports set forth in paragraphs
(D) and (E).
(C) Listing of employment openings with the employment service system pursuant to this clause shall be made
at least concurrently with the use of any other recruitment source or effort and shall involve the normal
obligations which attach to the placing of a bona fide job order, including the acceptance of referrals for
veterans and non-veterans. This listing of employment openings does not require the hiring of any
particular job applicant or from any particular group of job applicants, and nothing herein is intended to
relieve the Contractor from any requirements in Executive Orders or regulations regarding non-
discrimination in employment.
(D) The reports required by paragraph (B) of this clause shall include, but not be limited to, periodic reports
which shall be filed at lease quarterly with the appropriate local office or, where the Contractor has more
than on hiring location in a State, with the central office of the State employment service. Such reports
shall indicate for each hiring location (1) the number of individuals hired during the reporting period, (2)
the number of non-disabled veterans ofthe Vietnam era hired, (3) the number of disabled veterans of the
Vietnam era hired, and (4) the total number of disabled veterans hired. The reports should include covered
veterans hired for on-the-job training under 38 U.S.C. 1787. The Contractor shall submit a report within 30
days after the end of each reporting period wherein any performance is made on this contract identifying
data for each hiring location. The Contractor shall maintain at each hiring location copies of the reports
submitted until the expiration of one year after final payment under the contract, during which these reports
6
and related documentation shall be made available, upon request, for examination by any authorized
representatives of the contracting officer or of the Secretary of Labor. Documentation would include
personnel records respecting job openings, recruitment and placement.
(E) Whenever the Contractor becomes contractually bound to the listing provisions of this clause, it shall
advise the employment service system in each State where it has establishments of the name and location of
each hiring location in the State. As long as the Contractor is contractually bound to these provisions and
has so advised the State system, there is no need to advise the State system when it is no longer bound by
this contract clause.
(F) This clause does' not apply to the listing of employment openings which occur and are filled outside the 50
states, the District of Columbia, Puerto Rico, Guam and the Virgin Islands.
(G) The provision of paragraphs (B), (C), (D), and (E) of this clause do not apply to openings which the
Contractor proposes to fill from _ within his own organization or to fill pursuant to a customary and
traditional employer-union hiring arrangement. This exclusion does not apply to a particular opening once
an employer decides to consider applicants outside of his own organization or employer-union arrangement
for that opening.
(H) As used in this clause:
(1) "All suitable employment openings" includes, but is not limited to openings which occur in the
following job categories: Production and non-production; plan and office; laborers and mechanics;
supervisory and non~supervisory; technical; and executive administrative, and professional openings
that are compensated on a salary basis of less than $ 25,000 per year. This term includes full time
employment, temporary employment of more than 3 days duration, and part-time employment. It does
not include openings which the contractor proposes to fill from within his own organization or to fill
pursuant to a customary and traditional employer-union hiring arrangement or openings in an
educational institution which are restricted to students of that institution. Under the most compelling
circumstances an employment opening may not be suitable for listing, including such situations where
the needs of the Government cannot reasonably be otherwise supplied, where listing would be contrary
to national security, or where the requirement of listing would otherwise not be in the best interest of
the Government.
(2) "Appropriate office of the State employment service system" means the local office of the Federal-
State national system of public employment offices with assigned responsibility for serving the areas
where the employment opening is to be filled, including the District of Columbia, Guam, Puerto Rico,
and the Virgin Islands.
(3) "Openings which the Contractor proposes to fill from within his own organization" means employment
openings for which no consideration will be given to persons outside the Contractor's organization
(including any affiliates, subsidiaries, and the parent companies) and includes any openings which the
Contractor proposes to fill from regularly established "recall" lists.
(4) "Openings which the Contractor proposes to fill pursuant to a customary and traditional employer-
union hiring arrangemenf' means employment openings which the Contractor proposes to fill from
union halls, which is part of the customary and traditional hiring relationship which exists between the
Contractor and representatives of his employees.
(I) The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor
issued pursuant to the act.
(J) In the event of the Contractor's non-compliance with the requirements of this clause, actions for non-
compliance may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of
Labor issued pursuant to the act.
(K) The Contractor agrees to post in conspicuous places, available to employees and applicants for
employment, notices in a form to be prescribed by the Director, provided by or through the contracting
officer. Such notice shall state the Contractor's obligation under the law to take affIrmative action to
employ and advance in employment qualified disabled veterans and veterans of the Vietnam era, and the
rights of applicants and employees.
(L) The Contractor will notify each labor union or representative of workers with which it has a collective
bargaining agreement or other contract understanding, that the contractor is bound by the terms of the
Vietnam Era Veterans Readjustment Assistance Act, and is committed to take affirmative action to employ
and advance in employment qualified disabled veterans and veterans of the Vietnam Era.
(M) The Contractor will include the provisions of this clause in every subcontract or purchase order of $ 10,000
or more unless exempted by rules, regulation, or orders ofthe Secretary issued pursuant to the Act, so that
7
such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action
with respect to any subcontract or purchase order as the Director of the Office of Federal Contract
Compliance Programs may direct to enforce such provisions, including action for noncompliance.
E. Section 109 of the Housing and Community Development Act of 1974.
No person in the United States shall on the grounds of race, color, national origin, or sex be excluded from
participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in
whole or in part with funds made available under this title.
F. "Section 3" Compliance in the Provision of Training. Emplovment and Business Opportunities
1. The work to be performed under this contract is on a project assisted under a program providing direct Federal
financial assistance from the Department of Housing and Urban Development and is subject to the requirements
of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3
requires that to the greatest extent feasible opportunities for training and employment be given lower income
residents of the project area and contracts for work in connection with the project be awarded to business
concerns which are located in, or owned in substantial part by persons residing in the area of the project.
2. The parties to this contract will comply with the provisions of said Section 3 and the regulations issued pursuant
thereto by the Secretary of Housing and Urban Development set forth in 24 CFR, Part 135 and all applicable
rules and orders of the Department issued there under prior to the execution of this contract. The parties to this
contract certify and agree that they are under no contractual or other disability which would prevent them from
complying with these requirements.
3. The Contractor will send to each labor organization or representative of workers with which he has a collective
bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization of
workers representative of his commitments under this Section 3 clause and shall post copies of the notice in
conspicuous places available to employees and applicants for employment or training.
4. The Contractor will include this Section 3 clause in every subcontract for work in connection with the project
and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action
pursuant to the subcontract upon a finding that the subcontractor is in a violation of regulations issued by the
Secretary of Housing and Urban Development, 24 CFR Part 135. The Contractor will not subcontract with any
subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under
24 CFR Part 135 and will not let any subcontract unless the subcontractor has fIrst provided it with a
preliminary statement of ability to comply with the requirements of these regulations.
5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable
rules and orders of the Department issued hereunder prior to the execution of the contract, shall be a condition
of the Federal financial assistance provided to the project, binding upon the applicant or recipient for such
assistance, its successors and assigns. Failure to fulfill these requirements shall subject the applicant or
recipient, its contractors and subcontractors, its successors and assigns to those sanctions specified by the grant
or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are
specified by 24 CFR Part 135.
II. CERTIFICATION OF COMPLIANCE WITH AIR AND WATER ACTS
(Applicable to Federally assisted construction contracts and related subcontracts exceeding $100,000)
A. During the performance ofthis contract, the Contractor and all subcontractors shall comply with the requirements of
the Clean Air Act, as amended, 42 USC 1251 et seq., and the regulations of the Environmental Protection Agency
with respect thereto, at 40 CFR Part 15, as amended.
B. In addition to the foregoing requirements, all non-exempt contractors and subcontractors shall furnish to the owner,
the following:
1. A stipulation by the Contractor or subcontractors, that any facility to be utilized in the performance of any non-
exempt contract or subcontract, is not listed on the list of Violating Facilities issued by the Environmental
Protection Agency (EP A) pursuant to 40 CFR 15.20.
2. Agreement by the Contractor to comply with all the requirements of Section 114 of the Clean Air Act, as
amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended, (33 USC
1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements
specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder.
8
3. A stipulation that as a condition for the award of the contract, prompt notice will be given of any notification
received from the Director, Office of Federal Activities, EPA, indicating that a facility utilized, or to be utilized
for the contract, is under consideration to be listed on the EPA List of Violating Facilities.
4. Agreement by the Contractor that he will include, or cause to be included, the criteria and requirements in
paragraph (1) through (4) ofthis section in every non-exempt subcontract and requiring that the Contractor will
take such action as the Government may direct as a means of enforcing such provisions.
m. CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS
The undersigned certifies to the best ofhis or her knowledge and belief, that:
A. No Federally appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person
for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer
or employee of Congress in connection with the awarding of any Federal Contract, the making of any Federal grant,
the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
B. If any funds other than Federally appropriated funds have been paid or will be paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant,
loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form
to Report Lobbying," in accordance with its instructions.
C. The undersigned shall require that the language of this certification be included in the award documents for all sub-
awards at all tiers (including subcontract, sub-grant, and contracts under grants, loans, and cooperative agreements)
and that all sub-recipients shall certify and disclose accordingly.
D. This certification is a material representation of fact upon which reliance was placed when this transaction was made
or entered into. Submission of this certification is a pre-requisite for making or entering into this transaction
imposed by Section 1332, Title 31, U.S. Code. Any person who fails to file the required certification shall be
subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
9
'~
City of Farmington
Business Development Grant
City of Farmington
Business Development Grant
The City of Farmington has received funding from the Dakota County Community
Development Agency (CDA) in the form of Community Development Block Grant
(CDBG) funds. These funds will aid the City in supporting local businesses by
assisting with financing for business development and growth. The Dakota County
CDA distributes the funds on behalf of the U.S. Department of Housing and Urban
Development (HUD). Projects that receive CDBG funds are subject to HUD
requirements.
The following policies and procedures have been developed for projects undertaken
with CDBG dollars in the City of Farmington. These policies are subject to change as
recommended by the Dakota County Community Development Agency and/or the
U.S. Department of Housing and Urban Development.
1. Program Overview
Program Purpose
To provide financial assistance to business owners who have projects that meet the
criteria for the national objective of benefiting low and moderate income (L/M)
persons.
Types of Assistance
CDBG funded grant.
Grant Terms & Requirements
No more than one grant may be issued per property or per Applicant during the
funding year which runs from July 1st until June 30th.
a) Amount - Amounts are limited to funding availability. No grant may exceed
50% of proposed total development costs for construction related projects.
There is a maximum grant amount of$15,000 for business expansion and
relocation use. Microenterprise rental assistance is based on the tenant's lease
terms and will not exceed 75% of the monthly rental payment up to twelve (12)
consecutive months. Costs for common area maintenance and real estate taxes
are not eligible for grant funding.
Program Objectives
a) To retain local jobs within the City by encouraging existing businesses to
relocate or expand within the City of Farmington. Retained jobs are positions
that would be eliminated ifnot for this program assistance. Applicant will be
required to provide documentation of the retained positions.
b) To create additional job opportunities within the City.
c) To support entrepreneurial growth within the City.
01/27/2009
1
Note:
HUD requires that at least 51 % of jobs created and/or retained on a full-
time equivalent basis are either held by or are considered to be available
to low and moderate income persons.
Eligible Recipients
a) The property must be located within a commercially or industrially zoned
district or a district that has a commercial or industrial component. This would
include the following zoning districts: 1-1, IP, B-1, B-2, B-3, B-4, SSC,
Business/ Commercial Flex, Mixed Use and R- T.
b) All individuals having an ownership interest in such structure or an interest as
purchaser in a contract for deed must join in the application and sign the grant
agreement with the Economic Development Authority, including the contract
holder.
c) Leaseholders are eligible to make application for Program funds. The
Farmington Economic Development Authority, on a case-by-case basis, will
review such applications to determine their eligibility for funding, based on the
length of the lease on the property and length of time the business has operated
in Farmington. The property owner must join in the application and comply
with Program requirements.
d) Projects that would result in permanent displacement of either residential or
business tenants will not be financed with CDBG program funds. Any
temporary displacement of tenants resulting from project activities shall be the
responsibility of the property owner. Tenants shall be fully informed of the
project plans, and the expected impact on them, and shall receive a Notice of
N ondisplacement or Displacement, as appropriate, prior to the start of
rehabilitation. Property owners will be required to provide relocation
assistance to tenants as required under the Uniform Relocation and Real
Property Acquisition Policies Act of 1970.
e) No member of the governing body of the locality, or official, employee, or
agent of the local government who exercises policy, decision-making function
or responsibilities, including members of the Economic Development
Authority, Planning Commission and Farmington City Council, in connection
with the planning and implementation of the Business Development Grant
Program shall directly or indirectly benefit from this program. This prohibition
shall continue for one (1) year after an individual's relationship with the local
government ends. Any potential conflicts of interest under Minnesota Statues
412.311 and 471.87-471.89 or Federal Regulations 24 CFR, Part 570, Uniform
Administration Requirements, shall be evaluated on the basis of a legal opinion
to be requested from the Farmington City Attorney.
f) Ineligible project costs include but are not limited to interior remodeling
improvements, furniture, financing fees, business or operating costs (excluding
rental cost assistance for microenterprise applicants), equipment (unless
01/27/2009
2
considered part of a business expansion and the additional equipment results in
additional product or service offerings by the company), removable fixtures and
building acquisition costs. Costs incurred prior to the application date are not
eligible for program funding.
g) Eligible projects must comply with Federal Anti-Pirating Regulations. Any
assisted business relocating to the City of Farmington must not relocate more
than twenty-five jobs from any other labor market area or 0.01 % of jobs in the
Labor Market Area, unless forced to relocate by an action under the Uniform
Relocation Act. Farmington is part of the Minneapolis-St. Paul Metropolitan
Statistical Area Labor Market Area. I
h) An eligible business must have service or manufacturing operations that do not
engage predominantly in retail sale of goods to end users. Retail sales are
defined as sales not for resale, but for use and consumption by the purchaser.
2. Program Definitions
CnBG Administrator
The CDBG Administrator shall be the Dakota County Community Development
Agency (CDA), 1228 Town Centre Drive, Eagan, MN 55123, Phone (651) 675-4400.
CDA staff shall work with the Project Coordinator in administration of all aspects of
the Program.
Applicant
Any person determined to be an eligible recipient seeking to obtain assistance under
the terms of this Program. If the applicant is a leaseholder, the property owner must
also be a co-applicant.
Building Official
The Building Official for the program shall be a City of Farmington employee and
shall provide plan review and technical expertise relating to inspections, construction
quality, code compliance and scope of work to be accomplished.
Project Coordinator
The Project Coordinator for the Program shall be an employee of the City of
Farmington and shall provide assistance and management relating to improvement
activities. The Project Coordinator is responsible for program marketing, application
intake, scheduling of inspections, preparation of contracts and grant documents, and
processing of payment requests. The Project Coordinator serves as the contact person
for rehabilitation from application to project close-out and shall be available during
regular business hours.
01/27/2009
3
Target Area
Locations throughout the City of Farmington that are in commercial and industrial
zoning districts or districts with a commercial or industrial component, including: 1-1,
IP, B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use, and R-T.
Eligible Uses of Funding: Applicants may apply for grant funding for one of the
following uses only.
a) Business Expansion Assistance. One time grant funding for an existing
Farmington business that is expanding their current facility, relocating to, or
constructing a facility elsewhere within the city limits. Relocation outside of
the City of Farmington within three years of receipt of grant funding, or sale of
equipment purchased with grant funding within three years will trigger
repayment of grant funding in full. The Applicant would have to meet the
criteria for the national objective of benefiting low to moderate income persons
as defined by the Federal Department of Housing and Urban Development
through job creation. Please refer to Job Creation Requirements and Wage
and Income Reporting under Section 3, Special Conditions (page 5) for further
requirements.
b) Microenterprise assistance. Rental assistance for a period of one year to an
owner of a micro enterprise business or a person choosing to develop a
microenterprise business that will occupy a currently vacant commercial or
industrial space within the city limits. The business must meet the criteria of
micro enterprise defined as a business havingfive or fewer employees, one or more of
whom owns the business. The Applicant must submit a comprehensive business
plan and the business must not relocate outside of the City of Farmington for a
period of three years after receiving assistance or repayment of grant funding in
full will be required. Please refer to Job Creation Requirements and Wage
and Income Reporting under Section 3, Special Conditions (page 5) for further
requirements.
c) Redevelopment Assistance. Redevelopment of ED A owned property. The
redevelopment would have to meet the criteria for the national objective of.
benefiting low to moderate income persons as defined by the U.S. Department
of Housing and Urban Development. A mixed-use project that includes
commercial and residential will need to meet the national objective related to
both job creation and low/moderate income housing. There may be additional
site specific requirements. For further details please contact a City of
Farmington Economic Development staff member. Please refer to Job
Creation Requirements and Wage and Income Reporting under Section 3,
Special Conditions (page 5) for further requirements.
3. Special Conditions
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4
Contractors: All project work undertaken through this program must be completed
by bona fide contractors who are licensed (as applicable) and provide proof of
msurance.
Historic Properties
The City of Farmington is a Certified Local Government under the Historic
Preservation Act. Each project submitted for review will follow the procedures
outlined in the handbook for Historic Preservation in Farmington. Eligible "historic
properties" are those which have been designated or determined eligible for
designation as Farmington Heritage Landmarks; within or immediately adjacent to
the boundaries of a historic district; or listed on the National Register of Historic
Places. The City will work in conjunction with the State Historic Preservation Office
to implement Federal preservation guidelines as they relate to eligibility and
certification of work. If the building or the unit was originally built prior to 1950, the
property will be evaluated for historical significance by the Historic Preservation
Commission (HPC) using the eligibility criteria in the Farmington City Code. If it has
been determined that the property is eligible for Farmington Heritage Landmark
Designation, a review of the proposed rehabilitation work is necessary, and the work
must be in conformance with the Secretary of the Interior's Standards for
Rehabilitation and Guidelines for Rehabilitating Historic Buildings. Once work is
approved by the Historic Preservation Commission and applicable preservation
standards have been met, a Certificate of Appropriateness will be issued by the HPC.
Microenterprise Applicants: Application materials must include a business plan for
the proposed or existing microenterprise. The business plan must include an
Executive Summary, Company Summary, Product Information, Market Analysis,
Strategy and Implementation, Management Summary and Financial Plan.
Job Creation Requirements and Wage and Income Reporting: Applicants must
meet the CDBG national objective of benefiting low to moderate income persons, the
Applicant will be required to verify that 51 % of permanent jobs created or retained on
a full time equivalent basis are low to moderate income. These jobs must be
documented as either being held by or available to low to moderate income persons
(per 24 CFR Part 570.208 (a)(4)). Verification must be submitted annually to the
Project Coordinator for a period offive years. For micro enterprise assistance, the low
to moderate income benefit may also be met if the person who owns the
micro enterprise is oflow to moderate income. For redevelopment of ED A owned
property with affordable housing units these requirements are not applicable; see
Affordable Housing Requirements and Reporting (page 6).
Davis-Bacon Wage Rates: All contracts in excess of$2,000 require compliance with
the Federal Labor Standards Provisions of the Davis-Bacon Act. Contractors are to
pay their employees the prevailing wage rate as determined by the U.S. Department of
Labor. Appropriate wage information must be included in the bid selections and
contract documents. The Project Coordinator must approve all payrolls prior to the
release of funds.
01/27/2009
5
Fair Housing & Equal Opportunity
The City of Farmington and the Project Coordinator will work affirmatively to ensure
that all persons, regardless of race, color, creed, national origin, sex, religion, marital
status, age, handicap, familial status or reliance on public assistance will be treated
fairly and equally for purposes of participation in the Program. Access to program
information and materials will not be denied to any person for any reason. The City
will encourage the participation of women and minority-owned businesses and local
businesses and suppliers who meet Section 3 Criteria.
Lead Based Paint
The program will conform to the requirements of the Residential Lead Based Paint
Hazard Reduction Act of 1992 for any assisted property that contains residential
dwelling units. All program Applicants must provide notification of the hazards of
lead based paint to impacted tenants. The Building Official shall inspect for defective
paint surfaces at the time the property is being inspected for code compliance. All
defective surfaces will be corrected in accordance with the regulations in 24 CFR Part
35 and Minnesota statutes and safe work practices. Additionally, contracts work will
include language explicitly prohibiting the use oflead based paint.
Data Privacy
All information provided by Applicants under the Business Development Grant
Program shall be maintained in accordance with the Minnesota Data Practices Act
and the City's Subrecipient Agreement with the Dakota County Community
Development Agency.
Affordable Housing Requirements and Reporting: Applicants redeveloping EDA
owned property with affordable housing must meet the CDBG national objective of
benefiting low to moderate income persons. The Applicant will be required to verify
that the rents are set at affordable levels and that 51 % of the units are occupied by low
or moderate income households.
4. Procedures
Application Intake
Applications are accepted on a continual basis and will be reviewed based upon the
balance of CDBG funding available. Applications will be considered for participation
in the program based upon the following guidelines as applicable:
a) Whether the Applicant has clear title to the property to be
improved/ constructed. Prior to project approval, the following will be
ascertained:
i. Title verification;
ii. All real estate taxes and any City fees or charges are current;
iii. All individuals having an ownership interest, including contract holders,
have agreed in writing to join in the application;
01/27/2009
6
b) Verification oflease information and zoning compliance.
c) Review of business plan.
d) The extent to which the project meets the program objectives;
e) The degree of the project's overall impact on the surrounding area.
Ifnecessary, applications competing for limited funds may be selected based upon
these criteria. Projects that are not financially feasible within the constraints of
available funding will be eliminated from consideration.
Property Inspections
Upon determination that an Applicant requesting assistance is eligible based on the
program guidelines, the Building Official shall conduct an inspection of the property
to determine the corrective actions necessary for the property to conform to City of
Farmington building code standards.
Scope ofW ork
The Scope of Work will have two (2) components:
a) Upon completion of the initial inspection, the Building Official shall prepare a
report indicating the work necessary to bring the property into compliance with
Farmington building codes inclusive of the Minnesota Energy Efficiency
Standards. This report, and any improvements deemed necessary by the
Project Coordinator for the project to satisfy the intent of the Program, shall be
included as a part of the Scope of Work.
b) The Applicant shall provide a report or elevation drawing indicating any
planned exterior improvements. This report will be reviewed by the City of
Farmington and the Historic Preservation Commission if applicable (see
Historic Properties, page 4).
Project Approval
The final application will be reviewed by the Project Coordinator and the Economic
Development Authority. Projects approved for Program funding will be based on the
scope of work proposed and the ability of the Applicant to complete the project with
CDBG funds and private funds. The Dakota County Community Development
Agency will determine final approval. Verification of commitment of private funds
will be required before final approval of the project.
Competitive Bidding
A minimum of three (3) competitive bids must be solicited and two (2) competitive
bids must be obtained for each improvement project the Applicant proposes for
Program funding. Applicants may use any contractor they choose, as long as the
contractor meets the requirements listed below.
All contractors must provide a Certificate of Insurance Coverage. Contractors must
also certify that they will comply with the requirements of the Davis-Bacon Act.
These rates will be provided to the Applicant as a part of the contractor's instructions.
01/27/2009
7
~'
Awarding Contracts
The contract will be between the Applicant and the contractor. The contract will be
awarded to the lowest bid unless one (1) of the following circumstances occur:
a) The bid is determined to be unrealistically low and the contractor agrees to
withdraw the bid;
b) The contractor has failed to follow the procedures as outlined in the
instructions to the bidders;
c) The Applicant does not want the low-bid contractor to perform the work and
agrees to pay the difference between the lowest bid and the preferred
contractor's bid.
d) There appears to be collusion between two (2) or more contractors, in which
case, all bids in the questionable trade category will be thrown out and different
contractors will be solicited for bids; or
e) The contractor fails to bid according to the specifications, and it proves
impossible to compare that contractor's bid with the other bids received.
Approval by the Economic Development Authority
Once the Applicant has accepted a bides) determining the cost of the entire project, the
project coordinator will prepare the information for presentation to the Economic
Development Authority. Upon EDA approval, a Grant Agreement will be signed by
the Applicant and a designated City official. This Agreement will outline the terms
and conditions of the project, including the City's role and the Applicant's
responsibilities, and any corrective actions to be taken in the event of a dispute.
Notice to Proceed
A pre construction conference will be held with the Program Coordinator, the Building
Official, the Applicant and contractors and subcontractors to ensure awareness and
compliance with Davis-Bacon requirements and any other requirements necessary to
begin the project. A notice to proceed will be issued after the preconstruction
conference. The contractor will normally have one (1) year in which to complete the
awarded contract. If construction work does not begin within 90 days of the award of
contract the Grant Agreement is null and void; however, the Applicant may apply for
one extension if necessary. The length of the extension will be determined on a case-
by-case basis.
Change Orders
All change orders to the current contract require the approval of the Project
Coordinator as well as the signatures of the Applicant and contractor.
Acceptance ofW ork
Interim inspections may be scheduled with the Building Official to monitor work in
progress. Final inspection shall be required to ensure that the work has been
completed in a satisfactory manner. In the event of a dispute between the Applicant
and contractor concerning the completion of work, the Project Coordinator shall work
with both parties to try to negotiate a satisfactory solution. Disputes that cannot be
01/27/2009
8
resolved by negotiation, and that result in legal action by either party to the contract,
shall be resolved in accordance with applicable State law. CDBG funds shall not be
released to either the Applicant or contractor until such dispute has been settled.
Hold Harmless
The Applicant and the contractor shall indemnify and hold harmless the City of
Farmington and the Dakota County CDA and their respective officers, employees,
and officials from any damages or liability arising from, or occurring as a result of, the
activities funded through this Program.
CDBG Payment
All CDBG funds will be disbursed by the Dakota County CDA upon authorization by
the Applicant and the City of Farmington. Payments will be made only after all
project work has been completed according to the authorized scope of work, and has
been accepted by the Applicant. Funds will be released once all improvements are
complete to the satisfaction of the City Building Official and once title ownership,
Davis-Bacon wage payments and other requirements are satisfied with the CDA and
the City. The Building Official and City staffwill inspect the final project, and a
Certificate of Occupancy (CO) or a Temporary Certificate of Occupancy (TCO) will
be issued by the Building Inspections Division. The CO or TCO as well as lien
waivers are required before the CDA releases funds.
Payment may be made directly to the contractor or in reimbursement to the Applicant,
upon presentation of paid receipts for approved work.
The following must be presented to the Project Coordinator in order to process
payment:
a) Billing Statement/Paid Receipt
b) Sworn Contractor's Statement
c) Completion Certificate
d) Weekly Payroll Reports
e) Lien Waiver
Private Financing
Applicants are responsible for all costs incurred as a result of not accepting the lowest
bid, and costs above and beyond the availability of CDBG funds as outlined in the
Program.
Applicants shall contact a lending institution of their choice to arrange financing for
their portion of the project. Applicants should request a letter of credit or other
suitable documentation from the lending institution to prove that private funds have
been committed. This letter is to be submitted with the completed application. If an
Applicant is not using a lending institution, other evidence of committed funds must
be presented at the time of application.
01/27/2009
9
. '
Escrow
The Applicant may be requested to establish an escrow account or other private
account for deposit of the private funds that will be used to complete the improvement
project. The CDBG funds shall be reserved on the Applicant's behalf by the Dakota
County CDA, but shall be drawn from the U.s. Treasury only when actually needed
for disbursement to contractors or vendors, or in reimbursement to the Owner.
Appeals Process
Appeals concerning eligibility for the Business Development Grant Program or the
proposed improvements shall be made in writing and addressed to the Project
Coordinator. The Coordinator will contact the Applicant and attempt to rectify any
concerns. A written response will be made within fifteen (15) days.
01/27/2009
10
,.- /..\
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City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Lisa Dargis, Administrative Assistant
SUBJECT:
Farmington Truck Center Extension Request
DATE:
August 24,2009
INTRODUCTION
Staff has received a request for an extension from Business Development Grant recipients,
Farmington Truck Center.
DISCUSSION
The Business Development Grant Program contains requirements for recipients of grant funding to
commence construction (or in this case purchases) of grant funded projects within 90 days of the
grant award, and complete the project within 1 year. The grant funds awarded to Farmington
Truck Center are to purchase equipment to expand their product offerings to include automotive
services and repair. As of today's date, they have not begun purchase of these items, but they are
in the planning phase of their project and continue to move forward. They have requested an
extension of 90 days to complete their research and process matching funding to begin purchasing
the grant funded items. The Business Development Grant Program does allow for one extension to
be granted at the discretion of the EDA.
ACTION REQUESTED
Grant Farmington Truck Center a 90 day extension from today's date, to commence purchases to
be applied to their grant award.
-----
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22098 Canton Court
Farmington. MN 55024
651-463-4825 office
651-463-4860 fax
Farmington Truck Center Inc
August 18,2009
Ci~f Farmington
Lisa Dargis
430 Third street
Farmington, MN 55024
651-28Q.6839 Fax
RE:: Business Development Grant extension
Ms. Dargis,
Farmington Truck Canter Inc is requesting an extension of 90 days to utilize the above
mentioned grant; due to economic conditions we ara stili processing the 50 percent match that is a
requirement for this grant.
Thank you
Colin Garvey
~cI< Center Ino.
..
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t LL 'ON
NOI1Jn~lNOJ ^3^~VO
~dlE:l 600~ '8l 'onv
City of Farmington
430 Third Street
Farmington, Minnesota
651.463.7111 . Fax 651.463.2591
www.ci.farmington.mn.us
FROM:
Lisa Dargis, Administrative Assistant
Anp1bVGd /
n 3/Z3 cA
TO:
EDA Members
SUBJECT:
Farmington Truck Center, Business Development Grant Application
DATE:
March 23, 200Q
INTRODUCTION
Staff has received an application from Farmington Truck Center, Inc. for a Business
Development Grant for business expansion.
DISCUSSION
Farmington Truck Center, Inc., located at 22098 Canton Court, provides full service repair
for heavy duty trucks and also provides MNDOT inspections for trucks and/or trailers. They
plan to expand their business offerings to include service and repair work for cars and light
duty trucks. The expansion will include the addition of testing, diagnostic and repair
equipment specific to th~ new services to be offered.
They will be hiring at least 2 additional staff members, and indicate that the new positions
they will be creating will qualify for the low/mod income benefit as is defined by the CDBG
and Business Development Grant Program guidelines. The proposed project costs for the
expansion are listed in detail on the attached letter (see Exhibit A).
All of the required financial information has been submitted, and the Dakota County
Community Development Agency (CDA) has reviewed the application. Although they feel that
the diversification of services is a good project, the CDA staff has raised concerns over the
financial status of the company, they are summarized as follows:
"If the program policy does not delineate what financial factors would make someone
ineligible, then I think it's up to you as the local program administrators to decide
whether or not to award the funding. Those decisions are based on financial factors,
but they also relate to a good understanding of the business history, the owner's
character, etc. A decision to approve is always better if you've stated both the positive
and negative points (to the EDA). JJ
Due to the private nature of financial data, Finance Director Roland has prepared a general
summary of the financial information submitted for your review (see Exhibit B). If you desire
to review the documentation submitted, please contact me to set up a time to come in and
review the paperwork.
Farmington Truck Center has been a very valuable asset to the Farmington business
community since 1997. We are pleased that they are considering the proposed expansion of
their business within our city. For more information about their current services, please visit
their website at www.farmingtontruckcenter.com.
ACTION REQUESTED
Authorize award of a City of Farmington Business Development Grant in the amount of
$15,000 to Farmington Truck Center, Inc.
Respe.G~'u. IJy submitted,
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pt::::.-~--- . -~...
Lisa Dargis,-Administra ive Assistant
f~x'hl bi.t- 4-
22098 Canton Court
Farmington, MN 55024
651-463-4825 office
651-463-4850 fax
March 10th 2009
City of Fannington
430 Third Street
Farmington, MN 55024
651-280-68230
651-280-6899 F
RE: Business Development Grant
To Whom It May Concern:
Attached is the documentation requested in the Business Development Grant application. In addition
below is an outline of use of the Grant monies. Fannington Truck Center believes with the help of this grant that
in addition to being able to work on Cars and light Trucks we should be able to provide two additional position
within the company.
Equipment needed to expand the business services to accommodate cars, light duty trucks and heavy duty
trucks
2009 Scan tool software:
Product
Laptop Workstation Computer
Detroit Diesel PC Software
Allison PC Software
MackIVolvo PC Software
Cummins PC Software
Caterpillar PC Software
Brake Link Tractor/trailer ABS
Wireless Vehicle Link
Additional Adapters
PLC Converter Kit
Graphing Application Cards
MODis Elite Kit
Drill Press
Tire Balancer
Transmission jack & Fuel Adapter
Cost
1552.00
2661.73
1899.71
2000.00
2000.00
668.00
1124.00
1597.00
959.00
514.00
2834.00
7695.00
1800.00
6900.00
2000.00
Total
36,204.44
City of Farmington
Business Development Grant
Grant Agreement
.,411 .1
This agreement is made and entered into this 2:J'daY of flpr: l , 2009, by and between Farmington Truck
Center, Inc., a Minnesota corporation, having its principal offices at 22098 Canton Court, Farmington, Minnesota
(hereinafter referred to as "Grantee") and the Economic Development Authority in and for the City of
Farmington, a public body corporate and politic, having its principal offices at 430 Third Street, Farmington,
Minnesota (hereinafter referred to as "Grantor").
WHEREAS, the Grantor is a Subrecipient of Dakota County Community Development Agency in the County's
Community Development Block Grant ("CDBG") Program; and
WHEREAS, the Grantor has established a Business Development Grant funded by its entitlement of CDBG
funds; and
WHEREAS, the Grantee has proposed a business development project to include business expansion or relocation
assistance; and
WHEREAS, one hundred percent (100%) of the shares of grantee are held by Colin Garvey ("Business Owner");
and
NOW THEREFORE, in consideration ofthe Grant and the mutual covenants contained herein, the parties agree
as follows:
1. The Grantor agrees to provide a maximum of$15,000.00 (fifteen thousand dollars and no cents) in CDBG
funds to the Grantee for the purpose of business expansion to add automotive diagnosis and repair to its
existing company offering of products and services.
2. The Grantor will provide $15,000.00 to be used to purchase equipment for automotive diagnostics and
repair.
3. Grant funds will be paid on a reimbursement basis for payments required to purchase the approved
equipment.
4. The Grantee will provide the Grantor copies of all bid documents, and verification of payments for
equipment in the form of receipts and copies of checks or payment issued.
5. The Grantee will be required to verify that 51 % of pennanent jobs created on a full time equivalent basis
are low to moderate income. These jobs must be documented as either being held by or available to low
to moderate income persons (per 24 CFRPart 570.208 (a)(4)).
6. The assistance will not result in the relocation of any industrial or commercial plant facility or operation
from one Labor Market Area to another. Furthermore, neither the grantee nor any subsidiaries has plans
to relocate jobs that would results in a significant job loss. If actions as a result of this grant results in
relocation prohibited by the 24 CFR 570.210, reimbursement of the grant will be made immediately in
full.
7. The Grantee agrees to submit verification of employee income annually to the Project Coordinator for a
period of five years.
8. The Grantee agrees not to relocate outside of the City of Farmington for a period ofthree years after the
date of this grant agreement.
1
9. The Grantee shall defend, indemnify, and hold harmless the officers and employees of the Grantor and f
Dakota County CDA from all liability and claims for damages arising from bodily injury, death, proper
damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee's
operations under this Agreement.
10. The Grantee agrees to keep in force at all times during the term of this Agreement a comprehensive
general liability insurance policy covering any injury and/or property damage caused by any negligent act
or omission on the part of the Grantee, its agents, or employees in the performance of or with relation to
the work or services to be performed or furnished by the Grantee under the terms of this Agreement. The
Grantee further agrees to maintain worker's compensation coverage in accordance with state law.
Evidence of such insurance policies shall be provided to the Grantor prior to initiation of clearance
activities covered by this Agreement.
11. The Grantee agrees to comply with all local, state, and federal equal employment opportunity laws and
ordinances as they pertain to unlawful discrimination on account of race, color, creed, religion, national
origin, sex, marital status, status with regard to public assistance, familial status, disability or age.
12. The Grantee agrees to comply with other Federal CDBG contract provisions as detailed in Attachment A.
13. Grantee agrees that if there occurs any breach in the terms of this agreement after payment of CDBG
funds that is not cured within 30 days or such longer period as may be necessary after written notice from
the Grantor to the Grantee of such breach, the Grantor may take whatever action, including legal,
equitable or administrative action, which may appear necessary or desirable to the Grantor, to enforce
performance and observance of any obligation, agreement, or covenant of the Grantee under this
Agreement. In addition, upon said breach and the failure to cure said breach within 30 days or such
longer period as may be necessary after written notice from the Grantor to the Grantee of such breach, the
Grantor shall have the option to require the Grantee to reimburse the Grantor CDBG funds, plus ann
expenses incurred by the Grantor to include, but not necessarily be limited to, administrative and leg
expenses and any investment of CDBG funds.
IN WITNESS WHEREOF, the parties hereto have hereby executed this Agreement as of the year and date written
above.
GRANTOR:
GRANTEE:
CITY OF FARMINGTON
ECONONUCDEVELOPMENTAUTHORITY
FARMINGTON TRUCK CENTER, INC.
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2
Attachment A - PROVISIONS FOR CDBG FUNDED CONTRACTS
I. SPECIAL EQUAL OPPORTUNITY PROVISIONS
A. Activities and Contracts Not Subiect to Executive Order 11246. as Amended
(Applicable to Federally assisted construction contracts and related subcontracts of $10,000 and under.)
During the performance of this contract, the contractor agrees as follows:
1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color,
religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants for
employment are employed, and that employees are treated during employment, without regard to their race,
color, religion, sex, or national origin. Such action shall include, but not be limited to, the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination;
rates of payor other forms of compensation; and selection for training, including apprenticeship.
2. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices
setting forth the provisions of this non-discrimination clause. The Contractor shall state that all qualified
applicants will receive consideration for employment without regard to race, color, religion, sex, or national
origin.
3. Contractors shall incorporate the foregoing requirements in all subcontracts.
B. Executive Order 11245
(Applicable to Federally assisted contracts and related subcontracts of$10,000 and over.)
1. Section 202 Equal Opportunity Clause
During the performance of this contract, the contractor agrees as follows:
(A) The contractor will not discriminate against any employee or applicant for employment because of race,
color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants
are employed, and that employees are treated during employment, without regard to their race, color,
religion, sex, or national origin. Such action shall include, but not be limited to the following: employment,
upgrading, demotion, or transfer; recruitment, or recruitment advertising; layoff or termination, rates of pay
or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees
to post in conspicuous places, available to employees and applicants for employment, notices to be
provided setting forth the provisions of this non-discrimination clause.
(B) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the
contractor, state that all qualified applicants will receive consideration without regard to race, color,
religion, sex, or national origin.
(C) The contractor will send to each labor union or representative of workers with which he has a collective
bargaining agreement or other contract or understanding, a notice advising the said labor union or workers'
representatives of the contractor's commitment under this section, and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
(D) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the
rules, regulations, and relevant orders of the Secretary of Labor.
(E) The contractor will furnish all information and reports required by Executive Order 11246 of September
24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will
permit access to his books, records, and accounts by the Department and the Secretary of Labor for
purposes of investigation to ascertain compliance with such rules, regulations, and others.
(F) In the event of the contractor's non-compliance with the non-discrimination clauses of this contract or with
any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in
whole or in part and the contractor may be declared ineligible in part and the contractor may be declared
ineligible for further Government contracts ii1 accordance with procedures authorized in Executive Order
11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise
provided by law.
(G) The contractor will include the provisions of the sentence immediately preceding paragraph (A) and the
provisions of paragraphs (A) through (G) in every subcontract or purchase order unless exempted by rules,
regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of
1
September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase order as the Department may
direct as a means of enforcing such provisions, including sanctions for non-compliance. Provided,
however, that in the event a contractor becomes involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by the Department, the contractor may request the
United States to enter into such litigation to protect the interest of the United States.
2. Notice of Requirement for Affinnative Action to Ensure Equal Employment Opportunity (Executive Order
11246).
(A) The Offer's or Bidder's attention is called to the "Equal Opportunity Clause" and the "Standard Federal
Equal Employment Opportunity Construction Contract Specifications" set forth herein.
(B) The goals and timetables for minority and female participation, expressed in percentage terms for the
Contractor's aggregate workforce in each trade on all construction work in the covered area, are as follows:
Goals for Women / Minority Participation
5% Overall
Timetables:
N/A
These goals are applicable to all the Contractor's construction work (whether or not it is Federal or
federally assisted) performed in the covered area. The Contractor's compliance with the Executive Order
and the regulations in 41 CFR Part 60-4 shall be based on its implementation of the Equal Opportunity
Clause, specific affirmative action obligations required by the specifications set forth in 41- CFR 60-4.3
(a), and its efforts to meet the goals established for the geographical area where the contract resulting from
this solicitation is to be performed. The hours of minority and female employment and training must be
substantially uniform throughout the length of the contract, and in each trade, and the contractor shall make
a good faith effort to employ minorities and women evenly on each of its projects. The transfer of minority
or female employees ,or trainees from Contractor to Contractor or from project to project for the sole
purpose of meeting the Contractor's goals shall be a violation of the contract, the Executive Order and the
regulations in 41 CFR Part 60-4. Compliance with the goals will be measured against the total work hours
performed.
(C) The Contractor shall provide written notification to the Director of the Office of Federal Contract
Compliance Programs within 10 working days of the award of any construction subcontract in excess of$
10,000 at any tier for construction work under the contract resulting from this solicitation. The notification
shall list the name, address and telephone number of the subcontractor; employer identification number;
estimated dollar amount of the identification number; estimated dollar amount of the subcontract; estimated
starting and completion dates of the subcontract; and the geographical area in which the contract is to be
performed.
(D) As used in this Notice, and in the contract resulting form this solicitation, the "Covered Area" is Dakota
County, Minnesota.
3. Standard Federal Equal Employment Opportunity Construction Contract Specifications (Executive Order
11246)
(A) As used in these specifications:
(1) "Covered area" means the geographical area described in the solicitation from which this contract
resulted;
(2) "Director" means Director, Office of Federal Contract Compliance Programs, United States
Department of Labor, or any person to whom the Director delegates authority;
(3) "Employer identification number" means the Federal Social Security number used on the Employer's
Quarterly Federal Tax Return, U.S. Treasury Department Form 941.
(4) "Minority" includes:
(a) Black (all persons having origins in any of the Black African racial groups not of Hispanic origin);
2
(b) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American or other
Spanish Culture or origin, regardless of race);
(c) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far
East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands): and
(d) American Indian or Alaskan Native (all persons having origins in any of the original peoples of
North American and maintaining identifiable tribal affiliations through membership and
participation or community identification).
(B) Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any
construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of
these specifications and the Notice which contains the applicable goals for minority and female
participation and which is set forth in the solicitations from which this contract resulted.
(C) If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a Hometown Plan approved by the U.S.
Department of Labor in the covered area either individually or through an association, its affirmative action
obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that for
those trades which have unions participating in the Plan. Contractors must be able to demonstrate their
participation in and compliance with the provisions of any such Hometown Plan. Each Contractor or
subcontractor participating in an approved Plan is individually required to comply with its obligations
under the EEO clause, and to make good faith effort to achieve each goal under the Plan in each trade in
which it has employees. The overall good faith performance by other Contractors or Subcontractors toward
a goal in an approved Plan does not excuse any covered Contractor's or Subcontractor's failure to take
good faith efforts to achieve the Plan goals and timetables.
(D) The Contractor shall implement the specific affirmative action standards provided in paragraphs (0)(1)
through (16) of these specifications. The goals set forth in the solicitation from which this contract resulted
are expressed as percentages of the total hours of employment and training of minority and female
employees the Contractor should reasonably be able to achieve in each construction trade in which it has
. employees in the covered area. The Contractor is expected to make substantially uniform progress toward
its goals in each craft during the period specified.
(E) Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the
Contractor has a collective bargaining agreement, to refer either minorities or women shall excuse the
Contractor's obligations under these specifications, Executive Order 11246, nor the regulations
promulgated pursuant thereto.
(F) In order for the non-working training hours of apprentices and trainees to be counted in meeting the goals,
such apprentices and trainees must be counted in meeting the goals, such apprentices and trainees must be
employed by the Contractor during the training period, and the Contractor must have made a commitment
to employ the apprentices and trainees at the completion of their training, subject to the availability of
employment opportunities. Trainees must be trained pursuant to training programs approved by the U.S.
Department of Labor.
(0) The Contractor shall take specific affirmative actions to ensure equal employment opportunity. The
evaluation of the Contractor's compliance with these specifications shall be based upon its efforts to
achieve maximum results from its actions. The Contractor shall document these efforts fully, and shall
implement affirmative action steps at least as extensive as the following;
(1) Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites,
and in all facilities at which the Contractor's employees are assigned to work. The Contractor shall
specifically ensure that all foremen, superintendents, and other on-site supervisory personnel are aware
of and carry out the Contractor's obligation to maintain such a working environment, with specific
attention to minority or female individuals working at such sites or in such facilities.
(2) Establish and maintain a current list of minority and female recruitment sources, provide written
notification to minority and female recruitment sources and to community organizations when the
Contractor or its unions have employment opportunities available, and maintain a record of the
organizations' responses.
(3) Maintain a current file of the names, addresses and telephone numbers of each minority and female
off-the-street applicant and minority or female referral from a union, a recruitment source or
community organization and of what action was taken with respect to each such individual. If such
individual was sent to the union hiring hall for referral and was not referred back to the Contractor by
the union or, ifreferred, not employed by the Contractor, this shall be documented in the file with the
reason therefore, along with whatever additional actions the Contractor may have taken.
3
(4) Provide immediate notification to the Director when the union or unions with which the Contractor has
a collective bargaining agreement has not referred to the Contractor a minority person or woman sent
by the Contractor, or when the Contractor has other information that the union referral process has
impeded the Contractor's efforts to meet its obligations.
(5) Develop on-the-job training opportunities and/or participate in training programs for the area which
expressly include minorities and women, including upgrading programs and apprenticeship needs,
especially those programs funded or approved by the Department of Labor. The Contractor shall
provide notice of these programs to the sources compiled under (G)(2) above.
(6) Disseminate the Contractor's EED policy by providing notice of the policy to unions and training
programs and requesting their cooperation in assisting the Contractor in meeting its EED obligations;
by including it in any policy manual and collective bargaining agreement; by publicizing it in the
company newspaper, annual report, etc.; by specific review of the policy with all management
personnel and with all minority and female employees at lease once a year; and by posting the
company EED policy on bulletin boards accessible to all employees at each location where
construction work is performed.
(7) Review, at least annually, the company's EED policy and affirmative action obligations under these
specifications with all employees having any responsibility for hiring, assignment, layoff, termination
or other employment decisions including specific review of these items with onsite supervisory
personnel such as Superintendents, General Foremen, etc., prior to the initiation of construction work
at any job site. A written record shall be made and maintained identifying the time and place of these
meetings, persons attending, subject matter discussed, and disposition of the subject matter.
(8) Disseminate the contractor's EED policy externally be including it any advertising in the news media,
specifically including minority and female news media, and providing written notification to and
discussing the Contractor's EED policy with other Contractors and Subcontractors with whom the
Contractor does or anticipates doing business.
(9) Direct its recrui1ment efforts, both oral and written, to minority, female and community organizations,
to schools with minority and female students and to minority and female recrui1ment and training
organizations serving the Contractor's recrui1ment area and employment needs. Not later than one
month prior to the date for the acceptance of applications for apprenticeship or other training by any
recrui1ment source, the Contractor shall send written notification to organizations such as the above,
describing the openings, screening procedures, and tests to be used in the selection process.
(IO)Encourage present minority and female employees to recruit other minority persons and women and,
where reasonable, provide after school, summer and vacation employment to minority and female
youths both on the site and in other areas ofa Contractor's work force.
(1 1) Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR
part 60-3.
(12)Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel for
promotional opportunities and encourage these employees to seek or to prepare for, through
appropriate training, etc., such opportunities.
(13)Ensure that s.eniority practices, job classifications, work assignments and other personnel practices, do
not have a discriminatory effect by continually monitoring all personnel and employment related
activities to ensure that the EED policy and the Contractor's obligations under these specifications are
being carried out.
(14)Ensure that all facilities and company activities are non-segregated except that separate or single-user
toilet and necessary changing facilities shall be provided to assure privacy between the sexes.
(15)Document and maintain a record of all solicitations of offers for subcontracts from minority and
female construction contractors and suppliers, including circulation of solicitations to minority and
female contractor associations and other business associations.
(16)Conduct a review, at least annually, of all supervisors' adherence to and performance under the
Contractor's EED policies and affirmative action obligations.
(II) Contractors are encouraged to participate in voluntary associations which assist in fulfilling one or more of
their affirmative action obligations [(G)(l) through (16)]. The efforts of a contractor association, joint
contractor-union, contractor-community, or other similar groups of which the contractor is a member and
participant, may be asserted as fulfilling anyone or more of its obligations as enumerated above provided
that the Contractor actively participates in the group, makes every effort to assure that the group has a
positive impact on the employment of minorities and women in the industry, ensures that the concrete
4
benefits of the program are reflected in the Contractor's minority and female workforce participation,
makes a good faith effort to meet its individual goals and timetables, and can provide access to
documentation which demonstrates the effectiveness of actions taken on behalf of the Contractor.
(I) A single goal for minorities and a separate single goal for women have been established. The Contractor,
however, is required to provide equal employment opportunity and to take affirmative action for all
minority groups, both male and female, and all women, both minority and non-minority. Consequently, the
Contractor may be in violation of the Executive Order if a particular group is employed in a substantially
disparate manner (for example, even though the Contractor has achieved its goals for women generally, the
Contractor may be in violation of the Executive Order if a specific minority group of women is
underutilized).
(1) The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against
any person because of race, color, religion, sex, or national origin.
(K) The Con~ctor shall not enter into any subcontract with any person or :firm debarred from Government
contracts pursuant to Executive Order 11246.
(L) The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the
Equal Opportunity Clause, including suspension, termination and cancellation of existing subcontracts as
may .be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing
regulations, by the Office of Federal Contract Compliance Programs. Any Contractor who fails to carry
out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as
amended.
(M) The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative
action steps, at least as extensive as those standards prescribed in paragraph (G) of these specifications, so
as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor
fails to comply with the requirements of the Executive Order, the implementing regulations, or these
specifications, the Director shall proceed in accordance with 41 CFR 60-4.8.
(N) The Contractor shall designate a responsible official to monitor all employment related activity to ensure
that the company EEO policy is being carried out, to submit reports relating to the proVisions hereof as may
be required by the Government and to keep records. Records shall at least include for each employee the
name, address, telephone numbers, construction trade, union affiliation if any, employee identification
number assigned, social security number, race, sex, status (e.g., mechanic, apprentice trainee, helper, or
laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations
at which the work was performed. Records shall be maintained in an easily understandable and retrievable
form; however, to the degree that existing records satisfy this requirement, contractors shall not be required
to maintain separate records.
(0) Nothing herein provided shall be constructed as a limitation upon the application of other laws which
establish different standards of compliance or upon the application of requirements for the hiring oflocal or
other area residents (e.g., those under the Public Works Employment Act of 1977 and the Community
Development Block Grant Program).
4. Segregated Facilities
The Contractor or Subcontractor will not maintain any facility which is provided for their employees in a
segregated manner or permit their employees to perform their services at any location under their control where
segregated facilities are maintained except that separate or single user toilet and necessary changing facilities
shall be provided to assure privacy between the sexes.
C. Section 503 Handica-p1?ed - Affirmative Action for Handica1?ped Workers
(Applicable to Federally assisted contracts and related subcontracts if $2,500 or over.)
1. The Contractor will not discriminate against any employee or applicant for employment because of physical or
mental handicap in regard to any position for which the employee or applicant for employment is qualified.
The Contractor agrees to take affirmative action to employ, advance in employment and otherwise treat
qualified handicapped individuals without discrimination based upon their physical or mental handicap in all
employment practices such as the following: employment, upgrading, demotion or transfer, recruitment,
advertising, layoff or termination, rates of payor other forms of compensation, and selection for training,
including apprenticeship.
2. The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor
issued pursuant to the Act.
5
3. In the event of the Contractor's noncompliance with the requirements of this clause, actions for noncompliance
may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of Labor issued
pursuant to the Act.
4. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment,
notices in a form to be prescribed by the Director, provided by or through the contracting officer. Such notices
shall state the Contractor's obligation under the law to take affirmative action to employ and advance in
employment qualified handicapped employees and applicants for employment, and the rights of applicants and
employees.
5. The Contractor shall notify each labor union or representative of workers with which it has a collective
bargaining agreement or other contract understanding, that the Contractor is bound by the terms of Section 503
of the Rehabilitation Act of 1973, and is committed to take affirmative action to employ and advance in
employment physically and mentally handicapped individuals.
6. The Contractor will include the provisions of this clause in every subcontract or purchase order of $ 2,500 or
more unless exempted by rules, regulations, or orders of the Secretary issued pursuant to Section 503 of the Act,
so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action
with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance
Programs may direct to enforce such provisions, including action for non-compliance.
D. Section 402 Veterans of the Vietnam Era
(Applicable to Federally assisted contracts and related subcontracts of$IO,OOO or over.)
1. Affirmative Action for Disabled for Disabled Veterans and Veterans of the Vietnam Era
(A) The Contractor will not discriminate against any employee or applicant for employment because he or she
is a disabled veteran or veteran of the Vietnam. Era in regard to any position for which the employee or
applicant for employment is qualified. The Contractor agrees to take affirmative action to employ, advance
in employment and otherwise treat qualified disabled veterans and veterans of the Vietnam Era without
discrimination based upon their disability or veteran status in all employment practices such as the
following: employment upgrading, demotion or transfer, recruitment, advertising, layoff or termination,
rates of pay or other forms of compensation, and selection for training, including apprenticeship.
(B) The Contractor agrees that all suitable employment openings of the Contractor which exist at the time of
the execution of this contract and those which occur during the performance of this contract, including
those not generated by this contract and including those occurring at an establishment of the Contractor
other than the one wherein the contract is being performed but excluding those of independently operated
corporate affiliates, shall be listed at an appropriate local office of the State employment service system
wherein the opening occurs. The Contractor further agrees to provide such reports to such local office
regarding .~mployment openings and hires as may be required. State and local government agencies
holding Federal contracts of $10,000 or more shall also list all their suitable openings with the appropriate
office of the State employment service, but are not required to provide those reports set forth in paragraphs
(D) and (E).
(C) Listing of employment openings with the employment service system pursuant to this clause shall be made
at least concurrently with the use of any other recruitment source or effort and shall involve the normal
obligations which attach to the placing of a bona fide job order, including the acceptance of referrals for
veterans and non-veterans. This listing of employment openings does not require the hiring of any
particular job applicant or from any particular group of job applicants, and nothing herein is intended to
relieve the Contractor from any requirements in Executive Orders or regulations regarding non-
discrimination in employment.
(D) The reports required by paragraph (B) of this clause shall include, but not be limited to, periodic reports
which shall be filed at lease quarterly with the appropriate local office or, where the Contractor has more
than on hiring location in a State, with the central office of the State employment service. Such reports
shall indicate for each hiring location (1) the number of individuals hired during the reporting period, (2)
the number of non-disabled veterans of the Vietnam era hired, (3) the number of disabled veterans of the
Vietnam era hired, and (4) the total number of disabled veterans hired. The reports should include covered
veterans hired for on-the-job training under 38 U.S.C. 1787. The Contractor shall submit a report within 30
days after the end of each reporting period wherein any performance is made on this contract identifYing
data for each hiring location. The Contractor shall maintain at each hiring location copies of the reports
submitted until the expiration of one year after final payment under the contract, during which these reports
6
and related documentation shall be made available, upon request, for examination by any authorized
representatives of the contracting officer or of the Secretary of Labor. Documentation would include
personnel records respecting job openings, recruitment and placement
(E) Whenever the Contractor becomes contractually bound to the listing provisions of this clause, it shall
advise the employment service system in each State where it has establishments of the name and location of
each hiring location in the State. As long as the Contractor is contractually bound to these provisions and
has so advised the State system, there is no need to advise the State system when it is no longer bound by
this contract clause.
(F) This clause does not apply to the listing of employment openings which occur and are filled outside the 50
states, the District of Columbia, Puerto Rico, Guam. and the Virgin Islands.
(G) The provision of paragraphs (B), (C), (D), and (E) of this clause do not apply to openings which the
Contractor proposes to fill from within his own organization or to fill pursuant to a customary and
traditional employer-union hiring arrangement. This exclusion does not apply to a particular opening once
an employer decides to consider applicants outside ofhis own organization or employer-union arrangement
for that opening.
(H) As used in this clause:
(1) "All suitable employment openings" includes, but is not limited to openings which occur in the
following job categories: Production and non-production; plan and office; laborers and mechanics;
supervisory and non-supervisory; technical; and executive administrative, and professional openings
that are compensated on a salary basis of less than $ 25,000 per year. This term includes full time
employment, temporary employment of more than 3 days duration, and part-time employment. It does
not include openings which the contractor proposes to fill from within his own organization or to fill
pursuant to a customary and traditional employer-union hiring arrangement or openings in an
educational institution which are restricted to students of that institution. Under the most compelling
circumstances an employment opening may not be suitable for listing, including such situations where
the needs of the Government cannot reasonably be otherwise supplied, where listing would be contrary
to national security, or where the requirement of listing would otherwise not be in the best interest of
the Govemmem. .
(2) "Appropriate office of the State employment service system" means the local office of the Federal-
State national system of public employment offices with assigned responsibility for serving the areas
where the employment opening is to be filled, including the District of Columbia, Guam, Puerto Rico,
and the Virgin Islands.
(3) "Openings which the Contractor proposes to fill from within his own organization" means employment
openings for which no consideration will be given to persons outside the Contractor's organization
(including any affiliates, subsidiaries, and the parent companies) and includes any openings which the
Contractor proposes to fill from regularly established "recall" lists.
(4) "Openings which the Contractor proposes to fill pursuant to a customary and traditional employer-
union hiring arrangemenf' means employment openings which the Contractor proposes to fill from
union haIls, which is part of the customary and traditional hiring relationship which exists between the
Contractor and representatives of his employees.
(i) The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor
issued pursuant to the act.
(J) In the event of the Contractor's non-compliance with the requirements of this clause, actions for non-
compliance may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of
Labor issued pursuant to the act.
(K) The Contractor agrees to post in conspicuous places, available to employees and applicants for
employment, notices in a form to be prescribed by the Director, provided by or through the contracting
officer. Such notice shall state the Contractor's obligation under the law to take affirmative action to
employ and advance in employment qualified disabled veterans and veterans of the Vietnam era, and the
rights of applicants and employees.
(L) The Contractor will notify each labor union or representative of workers with which it has a collective
bargaining agreement or other contract understanding, that the contractor is bound by the terms of the
Vietnam Era Veterans Readjustment Assistance Act, and is committed to take affirmative action to employ
and advance in employment qualified disabled veterans and veterans of the Vietnam Era.
(M) The Contractor will include the provisions of this clause in every subcontract or purchase order of$ 10,000
or more unless exempted by rules, regulation, or orders of the Secretary issued pursuant to the Act, so that
7
such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action
with respect to any subcontract or purchase order as the Director of the Office of Federal Contract
Compliance Programs may direct to enforce such provisions, including action for noncompliance.
E. Section 109 of the Housing and Community Development Act of 1974.
No person in the United States shall on the grounds of race, color, national origin, or sex be excluded from
participation in, be denied the benefits ot: or be subjected to discrimination under any program or activity funded in
whole or in part with funds made available under this title.
F. "Section 3" Compliance in the Provision of Training. Emplovment and Business Opportunities
1. The work to be performed under this contract is on a project assisted under a program providing direct Federal
financial assistance from the Department of Housing and Urban Development and is subject to the requirements
of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3
requires that to the greatest extent feasible opportunities for training and employment be given lower income
residents of the project area and contracts for work in connection with the project be awarded to business
concerns which are located in, or owned in substantial part by persons residing in the area of the project.
2. The parties to this contract will comply with the provisions of said Section 3 and the regulations issued pursuant
thereto by the Secretary of Housing and Urban Development set forth in 24 CFR, Part 135 and all applicable
rules and orders of the Department issued there under prior to the execution of this contract. The parties to this
contract certify and agree that they are under no contractual or other disability which would prevent them from
complying with these requirements.
3. The Contractor will send to each labor organization or representative of workers with which he has a collective
bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization of
workers representative of his commitments under this Section 3 clause and shall post copies of the notice in
conspicuous places available to employees and applicants for employment or training.
4. The Contractor will include this Section 3 clause in every subcontract for work in connection with the project
and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action
pursuant to the subcontract upon a finding that the subcontractor is in a violation of regulations issued by the
Secretary of Housing and Urban Development, 24 CFR Part 135. The Contractor will not subcontract with any
subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under
24 CFR Part 135 and will not let any subcontract unless the subcontractor has first provided it with a
preliminary statement of ability to comply with the requirements of these regulations.
5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable
rules and orders of the Department issued hereunder prior to the execution of the contract, shall be a condition
of the Federal financial assistance provided to the project, binding upon the applicant or recipient for such
assistance, its successors and assigns. Failure to fulfill these requirements shall subject the applicant or
recipient, its contractors and subcontractors, its successors and assigns to those sanctions specified by the grant
or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are
specified by 24 CFR Part 135.
n. CERTIFICATION OF COMPLIANCE WIm AIR AND WATER ACTS
(Applicable to Federally assisted construction contracts and related subcontracts exceeding $100,000)
A. During the performance of this contract, the Contractor and all subcontractors shall comply with the requir~ments of
the Clean Air Act, as amended, 42 USC 1251 et seq., and the regulations of the Environmental Protection Agency
with respect thereto, at 40 CFR Part 15, as amended.
B. In addition to the foregoing requirements, all non-exempt contractors and subcontractors shall furnish to the owner,
the following:
1. A stipulation by the Contractor or subcontractors, that any facility to be utilized in the performance of any non-
exempt contract or subcontract, is not listed on the list of Violating Facilities issued by the Environmental
Protection Agency (EPA}pursuantto 40 CFR 15.20.
2. A~ement by the Contractor to comply with all the requirements of Section 114 of the Clean Air Act, as
amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended, (33 USC
1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements
specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder.
8
3. A stipulation that as a condition for the award of the contract, prompt notice will be given of any notification
received from the Director, Office of Federal Activities, EPA, indicating that a facility utilized, or to be utilized
for the contract, is Under consideration to be listed on the EP A List of Violating Facilities.
4. Agreement by the Contractor that he will include, or cause to be included, the criteria and requirements in
paragraph (1) through (4) of this section in every non-exempt subcontract and requiring that the Contractor will
take such action as the Government may direct as a means of enforcing such provisions.
m. CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS
The undersigned certifies to the best of his or her knowledge and belief, that:
A. No Federally appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person
for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer
or employee of Congress in connection with the awarding of any Federal Contract, the making of any Federal grant,
the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
B. If any funds other than Federally appropriated funds have been paid or will be paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant,
loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form
to Report Lobbying," in accordance with its instructions.
c. The undersigned shall require that the language of this certification be included in the award documents for all sub-
awards at all tiers (including subcontract, sub-grant, and contracts under grants, loans, and cooperative agreements)
and that all sub-recipients shall certifY and disclose accordingly.
D. This certification is a material representation of fact upon which reliance was placed when this transaction was made
or entered into. Submission of this certification is a pre-requisite for making or entering into this transaction
imposed by Section 1332, Title 31, U.S. Code. Any person who fails to file the required certification shall be
subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
9
~'''''
City of Farmington
Business Development Grant
City of Farmington
Business Development Grant
The City of Farmington has received funding from the Dakota County Community
Development Agency (CDA) in the form of Community Development Block Grant
(CDBG) funds. These funds will aid the City in supporting local businesses by
assisting with financing for business development and growth. The Dakota County
CDA distributes the funds on behalf of the U.S. Department of Housing and Urban
Development (HUD). Projects that receive CDBG funds are subject to HUD
requirements.
The following policies and procedures have been developed for projects undertaken
with CDBG dollars in the City of Farmington. These policies are subject to change as
recommended by the Dakota County Community Development Agency and/or the
U.S. Department of Housing and Urban Development.
1. Program Overview
Program Purpose
To provide financial assistance to business owners who have projects that meet the
criteria for the national objective of benefiting low and moderate income (L/M)
persons.
Types of Assistance
CDBG funded grant.
Grant Terms & Requirements
No more than one grant may be issued per property or per Applicant during the
funding year which runs from July 1st until June 30th.
a) Amount - Amounts are limited to funding availability. No grant may exceed
50% of proposed total development costs for construction related projects.
There is a maximum grant amount of$15,000 for business expansion and
relocation use. Microenterprise rental assistance is based on the tenant's lease
terms and will not exceed 75% of the monthly rental payment up to twelve (12)
consecutive months. Costs for common area maintenance and real estate taxes
are not eligible for grant funding.
Program Objectives
a) To retain local jobs within the City by encouraging existing businesses to
relocate or expand within the City of Farmington. Retainedjobs are positions
that would be eliminated ifnot for this program assistance. Applicant will be
required to provide documentation of the retained positions.
b) To create additional job opportunities within the City.
c) To support entrepreneurial growth within the City.
01/27/2009
1
Note:
HUD requires that at least 51 % of jobs created and/or retained on a full-
time equivalent basis are either held by or are considered to be available
to low and moderate income persons.
Eligible Recipients
a) The property must be located within a commercially or industrially zoned
district or a district that has a commercial or industrial component. This would
include the following zoning districts: I-I, IP, B-1, B-2, B-3, B-4, SSC,
Business/Commercial Flex, Mixed Use and R-T.
b) All individuals having an ownership interest in such structure or an interest as
purchaser in a contract for deed must join in the application and sign the grant
agreement with the Economic Development Authority, including the contract
holder.
c) Leaseholders are eligible to make application for Program funds. The
Farmington Economic Development Authority, on a case-by-case basis, will
review such applications to determine their eligibility for funding, based on the
length of the lease on the property and length of time the business has operated
in Farmington. The property owner must join in the application and comply
with Program requirements.
d) Projects that would result in permanent displacement of either residential or
. business tenants will not be financed with CDBG program funds. Any
temporary displacement of tenants resulting from project activities shall be the
responsibility of the property owner. Tenants shall be fully informed of the
project plans, and the expected impact on them, and shall receive a Notice of
N ondisplacement or Displacement, as appropriate, prior to the start of
rehabilitation. Property owners will be required to provide relocation
assistance to tenants as required under the Uniform Relocation and Real
Property Acquisition Policies Act of 1970.
e) No member of the governing body of the locality, or official, employee, or
agent of the local government who exercises policy, decision-making function
or responsibilities, including members of the Economic Development
Authority, Planning Commission and Farmington City Council, in connection
with the planning and implementation of the Business Development Grant
Program shall directly or indirectly benefit from this program. This prohibition
shall continue for one (1) year after an individual's relationship with the local
government ends. Any potential conflicts of interest under Minnesota Statues
412.311 and 471.87-471.89 or Federal Regulations 24 CFR, Part 570, Uniform
Administration Requirements, shall be evaluated on the basis of a legal opinion
to be requested from the Farmington City Attorney.
f) Ineligible project costs include but are not limited to interior remodeling
improvements, furniture, financing fees, business or operating costs (excluding
rental cost assistance for micro enterprise applicants), equipment (unless
01/27/2009
2
considered part of a business expansion and the additional equipment results in
additional product or service offerings by the company), removable fixtures and
building acquisition costs. Costs incurred prior to the application date are not
eligible for program funding.
g) Eligible projects must comply with Federal Anti-Pirating Regulations. Any
assisted business relocatihg to the City of Farmington must not relocate more
than twenty-five jobs from any other labor market area or 0.01 % of jobs in the
Labor Market Area, unless forced to relocate by an action under the Uniform
Relocation Act. Farmington is part of the Minneapolis-St. Paul Metropolitan
Statistical Area Labor Market Area.
h) An eligible business must have service or manufacturing operations that do not
engage predominantly in retail sale of goods to end users. Retail sales are
defined as sales not for resale, but for use and consumption by the purchaser.
2. Program Definitions
CDBG Administrator
The CDBG Administrator shall be the Dakota County Community Development
Agency (CDA), 1228 Town Centre Drive, Eagan, MN 55123, Phone (651) 675-4400.
CDA staff shall work with the Project Coordinator in administration of all aspects of
the Program.
Applicant
Any person determined to be an eligible recipient seeking to obtain assistance under
the terms of this Program. If the applicant is a leaseholder, the property owner must
also be a co-applicant.
Building Official
The Building Official for the program shall be a City of Farmington employee and
shall provide plan review and technical expertise relating to inspections, construction
quality, code compliance and scope of work to be accomplished.
Project Coordinator
The Project Coordinator for the Program shall be an employee of the City of
Farmington and shall provide assistance and management relating to improvement
activities. The Project Coordinator is responsible for program marketing, application
intake, scheduling of inspections, preparation of contracts and grant documents, and
processing of payment requests. The Project Coordinator serves as the contact person
for rehabilitation from application to project close-out and shall be available during
regular business hours.
01/27/2009
3
Target Area
Locations throughout the City of Farmington that are in commercial and industrial
zoning districts or districts with a commercial or industrial component, including: 1-1,
IF, B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use, and R-T.
Eligible Uses of Funding: Applicants may apply for grant funding for one of the
following uses only.
a) Business Expansion Assistance. One time grant funding for an existing
Farmington business that is expanding their current facility, relocating to, or
constructing a facility elsewhere within the city limits. Relocation outside of
the City of Farmington within three years of receipt of grant funding, or sale of
equipment purchased with grant funding within three years will trigger
repayment of grant funding in full. The Applicant would have to meet the
criteria for the national objective of benefiting low to moderate income persons
as defined by the Federal Department of Rousing and Urban Development
through job creation. Please refer to Job Creation Requirements and Wage
. and Income Reporting under Section 3, Special Conditions (page 5) for further
requirements.
b) Microenterprise assistance. Rental assistance for a period of one year to an
owner of a micro enterprise business or a person choosing to develop a
micro enterprise business that will occupy a currently vacant commercial or
industrial space within the city limits. The business must meet the criteria of
microenterprise defined as a business havingfive or fewer employees, one or more of
whom owns the business. The Applicant must submit a comprehensive business
plan and the business must not relocate outside of the City of Farmington for a
period of three years after receiving assistance or repayment of grant funding in
full will be required. Please refer to Job Creation Requirements and Wage
and Income Reporting under Section 3, Special Conditions (page 5) for further
requirements.
c) Redevelopment Assistance. Redevelopment of ED A owned property. The
redevelopment would have to meet the criteria for the national objective of
benefiting low to moderate income persons as defined by the U.S. Department
of Rousing and Urban Development. A mixed-use project that includes
commercial and residential will need to meet the national objective related to
both job creation and low/moderate income housing. There may be additional
site specific requirements. For further details please contact a City of
Farmington Economic Development staff member. Please refer to Job
Creation Requirements and Wage and Income Reporting under Section 3,
Special Conditions (page 5) for further requirements.
3. Special Conditions
01/27/2009
4
Contractors: All project work undertaken through this program must be completed
by bona fide contractors who are licensed (as applicable) and provide proof of
msurance.
Historic Properties
The City of Farmington is a Certified Local Government under the Historic
Preservation Act. Each project submitted for review will follow the procedures
outlined in the handbook for Historic Preservation in Farmington. Eligible "historic
properties" are those which have been designated or determined eligible for
designation as Farmington Heritage Landmarks; within or immediately adjacent to
the boundaries of a historic district; or listed on the National Register of Historic
Places. The City will work in conjunction with the State Historic Preservation Office
to implement Federal preservation guidelines as they relate to eligibility and
certification of work. If the building or the unit was originally built prior to 1950, the
property will be evaluated for historical significance by the Historic Preservation
Commission (HPC) using the eligibility criteria in the Farmington City Code. If it has
been determined that the property is eligible for Farmington Heritage Landmark
Designation, a review of the proposed rehabilitation work is necessary, and the work
must be in conformance with the Secretary of the Interior's Standards for
Rehabilitation and Guidelines for Rehabilitating Historic Buildings. Once work is
approved by the Historic Preservation Commission and applicable preservation
standards have been met, a Certificate of Appropriateness will be issued by the HPC.
Microenterprise Applicants: Application materials must include a business plan for
the proposed or existing micro enterprise. The business plan must include an
Executive Summary, Company Summary, Product Information, Market Analysis,
Strategy and Implementation, Management Summary and Financial Plan.
Job Creation Requirements and Wage and Income Reporting: Applicants must
meet the CDBG national objective of benefiting low to moderate income persons, the
Applicant will be required to verify that 51 % of permanent jobs created or retained on
a full time equivalent basis are low to moderate income. These jobs must be
documented as either being held by or available to low to moderate income persons
(per 24 CFR Part 570.208 (a)(4)). Verification must be submitted annually to the
Project Coordinator for a period offive years. For micro enterprise assistance, the low
to moderate income benefit may also be met if the person who owns the
micro enterprise is of low to moderate income. For redevelopment of ED A owned
property with affordable housing units these requirements are not applicable; see
Affordable Housing Requirements and Reporting (page 6).
Davis-Bacon Wage Rates: All contracts in excess of$2,000 require compliance with
the Federal Labor Standards Provisions of the Davis-Bacon Act. Contractors are to
pay their employees the prevailing wage rate as determined by the U.S. Department of
Labor. Appropriate wage information must be included in the bid selections and
contract documents. The Project Coordinator must approve all payrolls prior to the
release of funds.
01/27/2009
5
Fair Housing & Equal Opportunity
The City of Farmington and the Project Coordinator will work affirmatively to ensure
that all persons, regardless of race, color, creed, national origin, sex, religion, marital
status, age, handicap, familial status or reliance on public assistance will be treated
fairly and equally for purposes of participation in the Program. Access to program
information and materials will not be denied to any person for any reason. The City
will encourage the participation of women and minority-owned businesses and local
businesses and suppliers who meet Section 3 Criteria.
Lead Based Paint
The program will conform to the requirements of the Residential Lead Based Paint
Hazard Reduction Act of 1992 for any assisted property that contains residential
dwelling units. All program Applicants must provide notification of the hazards of
lead based paint to impacted tenants. The Building Official shall inspect for defective
paint surfaces at the time the property is being inspected for code compliance. All
defective surfaces will be corrected in accordance with the regulations in 24 CFR Part
35 and Minnesota statutes and safe work practices. Additionally, contracts work will
include language explicitly prohibiting the use oflead based paint.
Data Privacy
All information provided by Applicants under the Business Development Grant
Program shall be maintained in accordance with the Minnesota Data Practices Act
and the City's Subrecipient Agreement with the Dakota County Community
Development Agency.
Affordable Housing Requirements and Reporting: Applicants redeveloping EDA
owned property with affordable housing must meet the CDBG national objective of
benefiting low to moderate income persons. The Applicant will be required to verify
that the rents are set at affordable levels and that 51 % of the units are occupied by low
or moderate income households.
4. Procedures
Application Intake
Applications are accepted on a continual basis and will be reviewed based upon the
balance of CDBG funding available. Applications will be considered for participation
in the program based upon the following guidelines as applicable:
a) Whether the Applicant has clear title to the property to be
improved/ constructed. Prior to project approval, the following will be
ascertained:
i. Title verification;
ii. All real estate taxes and any City fees or charges are current;
iii. All individuals having an ownership interest, including contract holders,
have agreed in writing to join in the application;
01/27/2009
6
b) Verification of lease information and zoning compliance.
c) Review of business plan.
d) The extent to which the project meets the program objectives;
e) The degree of the project's overall impact on the surrounding area.
Ifnecessary, applications competing for limited funds may be selected based upon
these criteria. Projects that are not financially feasible within the constraints of
available funding will be eliminated from consideration.
Property Inspections
Upon determination that an Applicant requesting assistance is eligible based on the
program guidelines, the Building Official shall conduct an inspection of the property
to determine the corrective actions necessary for the property to conform to City of
Farmington building code standards.
Scope ofW ork
The Scope of Work will have two (2) components:
a) Upon completion of the initial inspection, the Building Official shall prepare a
report indicating the work necessary to bring the property into compliance with
Farmington building codes inclusive of the Minnesota Energy Efficiency
Standards. This report, and any improvements deemed necessary by the
Project Coordinator for the project to satisfy the intent of the Program, shall be
included as a part of the Scope of Work.
b) The Applicant shall provide a report or elevation drawing indicating any
planned exterior improvements. This report will be reviewed by the City of
Farmington and the Historic Preservation Commission if applicable (see
Historic Properties, page 4).
Project Approval
The final application will be reviewed by the Project Coordinator and the Economic
Development Authority. Projects approved for Program funding will be based on the
scope of work proposed and the ability of the Applicant to complete the project with
CDBG funds and private funds. The Dakota County Community Development
Agency will determine final approval. Verification of commitment of private funds
will be required before final approval of the project.
Competitive Bidding
A minimum of three (3) competitive bids must be solicited and two (2) competitive
bids must be obtained for each improvement project the Applicant proposes for
Program funding. Applicants may use any contractor they choose, as long as the
contractor meets the requirements listed below.
All contractors must provide a Certificate of Insurance Coverage. Contractors must
also certify that they will comply with the requirements of the Davis-Bacon Act.
These rates will be provided to the Applicant as a part of the contractor's instructions.
01/27/2009
7
Awarding Contracts
The contract will be between the Applicant and the contractor. The contract will be
awarded to the lowest bid unless one (1) of the following circumstances occur:
a) The bid is determined to be unrealistically low and the contractor agrees to
withdraw the bid;
b) The contractor has failed to follow the procedures as outlined in the
instructions to the bidders;
c) The Applicant does not want the low-bid contractor to perform the work and
agrees to pay the difference between the lowest bid and the preferred
contractor's bid.
d) There appears to be collusion between two (2) or more contractors, in which
case, all bids in the questionable trade category will be thrown out and different
contractors will be solicited for bids; or
e) The contractor fails to bid according to the specifications, and it proves
impossible to compare that contractor's bid with the other bids received.
Approval by the Economic Development Authority
Once the Applicant has accepted a bides) determining the cost of the entire project, the
project coordinator will prepare the information for presentation to the Economic
Development Authority. Upon EDA approval, a Grant Agreement will be signed by
the Applicant and a designated City official. This Agreement will outline the terms
and conditions of the project, including the City's role and the Applicant's
responsibilities, and any corrective actions to be taken in the event of a dispute.
Notice to Proceed
A pre construction conference will be held with the Program Coordinator, the Building
Official, the Applicant and contractors and subcontractors to ensure awareness and
compliance with Davis-Bacon requirements and any other requirements necessary to
begin the project. A notice to proceed will be issued after the preconstruction
conference. The contractor will normally have one (1) year in which to complete the
awarded contract. If construction work does not begin within 90 days of the award of
contract the Grant Agreement is null and void; however, the Applicant may apply for
one extension if necessary. The length of the extension will be determined on a case-
by-case basis.
Change Orders
All change orders to the current contract require the approval of the Project
Coordinator as well as the signatures of the Applicant and contractor.
Acceptance ofW ork
Interim inspections may be scheduled with the Building Official to monitor work in
progress. Final inspection shall be required to ensure that the work has been
completed in a satisfactory manner. In the event of a dispute between the Applicant
and contractor concerning the completion of work, the Project Coordinator shall work
with both parties to try to negotiate a satisfactory solution. Disputes that cannot be
01/27/2009
8
resolved by negotiation, and that result in legal action by either party to the contract,
shall be resolved in accordance with applicable State law. CDBG funds shall not be
released to either the Applicant or contractor until such dispute has been settled.
Hold Harmless
The Applicant and the contractor shall indemnify and hold harmless the City of
Farmington and the Dakota County CDA and their respective officers, employees,
and officials from any damages or liability arising from, or occurring as a result of, the
activities funded through this Program.
CDBG Payment
All CDBG funds will be disbursed by the Dakota County CDA upon authorization by
the Applicant and the City of Farmington. Payments will be made only after all
project work has been completed according to the authorized scope of work, and has
been accepted by the Applicant. Funds will be released once all improvements are
complete to the satisfaction of the City Building Official and once title ownership,
Davis-Bacon wage payments and other requirements are satisfied with the CDA and
the City. The Building Official and City staffwill inspect the final project, and a
Certificate of Occupancy (CO) or a Temporary Certificate of Occupancy (TCO) will
be issued by the Building Inspections Division. The CO or TCD as well as lien
waivers are required before the CDA releases funds.
Payment may be made directly to the contractor or in reimbursement to the Applicant,
upon presentation of paid receipts for approved work.
The following must be presented to the Project Coordinator in order to process
payment:
a) Billing Statement/Paid Receipt
b) Sworn Contractor's Statement
c) Completion Certificate
d) Wee1dy Payroll Reports
e) Lien Waiver
Private Financing
Applicants are responsible for all costs incurred as a result of not accepting the lowest
bid, and costs above and beyond the availability of CDBG funds as outlined in the
Program.
Applicants shall contact a lending institution of their choice to arrange financing for
their portion of the project. Applicants should request a letter of credit or other
suitable documentation from the lending institution to prove that private funds have
been committed. This letter is to be submitted with the completed application. If an
Applicant is not using a lending institution, other evidence of committed funds must
be presented at the time of application.
01/27/2009
9
Escrow
The Applicant may be requested to establish an escrow account or other private
account for deposit of the private funds that will be used to complete the improvement
project. The CDBG funds shall be reserved on the Applicant's behalf by the Dakota
County CDA, but shall be drawn from the U.s. Treasury only when actually needed
for disbursement to contractors or vendors, or in reimbursement to the Owner.
Appeals Process
Appeals concerning eligibility for the Business Development Grant Program or the
proposed improvements shall be made in writing and addressed to the Project
Coordinator. The Coordinator will contact the Applicant and attempt to rectify any
concerns. A written response will be made within fifteen (15) days.
01/27/2009
10
7~
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Tina Hansmeier, Economic Development Specialist
SUBJECT:
Proposed Industrial Park Expansion Update
DATE:
August 24, 2009
INTRODUCTION/ DISCUSSION
Staff is providing an update on the proposed industrial park expansion project in follow up to the
Phase II landowner meetings, wetland delineation, and soil boring quote(s).
Attached for your information are the following documents:
1. Report on meetings with property owners - concept plan presentation, provided by Lee Mann
2. Wetland Delineation Scope and Cost Estimate, provided by Bonestroo
3. Proposal for Geotechnical Services/Soil Borings, provided by American Engineering Testing,
Inc.
ACTION REQUESTED
Provide City staff and the Consultant team with direction as to how to proceed with the proposed
industrial park expansion project.
Respectfully submitted,
. ,
Tina Hansmeier,
Economic Development Specialist
Industrial Park Expansion Project
City of Farmington
Report on Meetings with Property Owners - Concept plan presentation
July 2009
Lee Mann and Bruce Maus met with the affected property owners in regards to
the potential Industrial Park Expansion Project. The intent of these meetings
was to present and receive feedback on the concept plan. Lee and Bruce
presented the concept plan and described the potential phasing scenarios. The
property owners were also informed that the City is considering performing soil
borings, wetland delineations and property appraisals.
Huber meeting
Lee and Bruce met with Curt Huber on 7/09/09.
Mr. Huber commented that he initially liked what he saw. He indicated that he
would review it with his family members and get back to us with any further
comments they may have.
He also indicated that they are still very interested in selling their property and
that a direct sale would be preferable.
Murphy meeting
Lee and Bruce met with Bernard Murphy and Brian Murphy on 7/15/09.
Lee and Bruce presented the concept plan. The Murphy's reacted to the concept
positively and noted that there is a large amount of property being considered.
Bruce and Lee discussed the potential phasing scenarios and acknowledged that
it could be several years before the Murphy's property would come into play.
The Murphy's are most concerned with any potential tax implications for their
property. They are open to considering any scenarios that would not affect them
from a tax perspective. They would be looking to transfer property as part of a
1031 exchange.
Devney meeting
Lee and Bruce met with John and Pat Devney on 7/15/09.
The Devney's did not have a strong reaction to the concept plan either way. The
Devney's again indicated that it is their preference to sell their parcel east of Pilot
\
Knob Road first, before looking at property west of Pilot Knob Road. They also
reiterated their concerns about being assessed for improvements on the west
side of Pilot Knob Road. Lee and Bruce indicated that funding scenarios for that
roadway would have to be worked out as part of the development process.
The Devney's are concerned about potential tax implications and again indicated
that they would prefer to convey the property as a part of a 1031 exchange.
Lee and Bruce inquired, keeping in mind the Devney's issues and concerns, if
they would be willing to allow 20Sth Street across their property to facilitate an
initial phase for the project. They indicated that they would probably be willing
to allow that if their concerns about assessments and tax implications could be
addressed satisfactorily.
Wurdeman meeting
Lee and Bruce met with Lew Wurdeman on 7/17/09.
Mr. Wurdeman indicated that he is a very willing participant for this project.
He reiterated that he is very interested in selling his property. He would prefer
the property to be purchased directly, and as soon as possible.
Overall, it appeared that Mr. Wurdeman thought the concept was good. He did
have questions in regard to the location of 20ath Street in relation to the
constructed pond on his property and several other design details. Lee and
Bruce indicated that those types of issues would be looked at in depth at such
time the City chooses to move forward with the design phase.
(
2335 Highway 36 W
St. Paul, MN 55113
Tel 651-636-4600
Fax 651-636-1311
www.bonestroo.com
... Bonestroo
July 27,2009
Tina Hansmeier
Economic Development Coordinator
City of Farmington
430 3rd Street
Farmington, MN 55024
Re: Industrial Park Area Wetland Delineation Scope and Cost Estimate
City of Farmington
Bonestroo File No.: 141-08304
Dear Ms. Hansmeier,
Please find the following scope and cost for performing a wetland delineation as part of the
planning process for the new industrial park area in Farmington.
proiect UnderstandinQ
Perform wetland delineation on the area proposed for the new Farmington Industrial Park area as
identified in the draft concept plan. The site is approximately 300 acres and is bounded by Pilot
Knob Road on the east, Highway 50 on the south and will include the south edge of wetlands
associated with Middle Creek to the north.
Scooe
Task 1: FSA Slide Review
Prior to performing the field work, Farm Service Agency (FSA) color slides will be reviewed at the
Dakota SWCD office. These aerial' photos are taken during the growing season and assist in
determining wetland hydrology signatures in farmed areas. Sites that show probable wetland
signatures in normal precipitation years will be noted for verification in the field.
Task 2: Field Work
Field work will involve documentation at representative locations along the wetland/upland
transition to determine the wetland edge. Field methods and documentation will follow the 1987
Corps of Engineers Wetland Delineation Manual and regional supplements. Soils, vegetation and
hydrology indicators will be documented and recorded on the required data sheets.
Task 3: GPS Wetland Boundary
Once the wetland edge has been determined based on the presence or absence of the three
indicators, the boundary will be marked in the field with pink "wetland boundary" flags. A sub-
meter GPS unit will record the wetland edge points at the time of the delineation to create a
wetland delineation boundary map for inclusion in the report.
St. Paul
St. Cloud
Rochester
Milwaukee
Chicago
Engineers
Architects
Planners
City of Farmington
Industrial Park Area Study
Page 2
7/27/09
Task 4: Boundary Review Meeting
One on-site meeting will be. conducted with the regulatory agencies to review the wetland
boundary. Reviewing agencies include the Dakota SWCD, Army Corps of Engineers, DNR and
BWSR. This ensures that the boundary represented in the report is accurate and approved.
Task 5: Report
A wetland delineation report is required to document the wetland boundary location and includes
a description of each wetland and data sheets. Location, national wetland inventory (NWI), soil
survey and wetland boundary figures are also included.
Cost
Task Estimated Cost
1. Slide Review $450
2. Field Work $2200
3.GPS $900
4. Meetinq $500
5. Report $1800
TOTAL $5.850
Sincerely,
BONESTROO
~~~.
Benjamin L. Meyer, MS, WDC
Biologist
651-604-4767
cc: file
Kevin Schorzman, City Engineer
Lee Mann
Dave Sanocki
CONSULTANTS
· ENVIRONMENTAL
· GEOTECHNICAL
· MATERIALS
· FORENSICS
A AMERICAN
ENGINEERING
TESTING, INC.
August 18, 2009
City of Farmington
430 Third Street
Farmington, MN 55024
Attn: Cynthia Muller
RE: Proposal for Geotechnical Services
Streets and Utilities, Farmington Industrial Area, Farmington, Minnesota
Dear Ms. Muller:
Per your August 18 request, we are submitting this Letter Proposal to conduct the following
scope:
Scope:
Fieldwork
. Drill two standard penetration test (SPT) borings along future 208th Street West to depths
of 41 feet each.
. Option: Drill six SPT borings in other street areas within the development to depths of
21 feet each.
. Clear underground public utilities through the Gopher State One Call system.
Laboratory
. Conduct water content tests on cohesive samples (hourly during lab logging).
Report
. Logs of test borings, with location data.
. Description of drilling/sampling methods and classification procedures.
. Review of soil and groundwater conditions.
. Recommendations for utility support, bedding, and backfilling; street subgrade
preparation; and estimated subgrade R-value.
The scope of work defined in this proposal is intended for geotechnical purposes only, and not to
explore for the presence or extent of environmental contamination at the site. However, we will
note obvious contamination encountered.
550 Cleveland Avenue North I St. Paul, MN 55114
Phone 651-659-90011 Toll Free 800-972-63641 Fax 651-659-13791 www.amengtest.com I AAlEEO r.
This document shall not be reproduced, except in full, without written approval from American Engineering Testing, Inc. ,. ~
City of Farmington
August 18, 2009
Page 2 of2
Fee:
The fee will be $2000 plus $27 per foot drilled. Therefore, the fee for the two 41-foot deep
boring program would be $4214. The fee for the full program would be $7616.
Sieve analysis testing could be added to the program for $88 per test. This would only be
performed if authorized by you.
Schedule:
We anticipate the fieldwork can begin within about one to two weeks after recelvmg
authorization to proceed. The boring logs for verbal discussion should then follow shortly after
the fieldwork is completed. The [mal report should be available within about two weeks after
fieldwork completion.
Terms/Conditions:
Our services will be performed per the Contract Agreement Between the City of Farmington and
American Engineering Testing, Inc. For Professional Services, dated June 27, 2000.
Acceptance:
Please indicate your acceptance of this proposal by endorsing the enclosed copy and returning it
to us. The original proposal is intended for your records.
Sincerely,
f1:: ~~!ft'-'
Vice President, Geotechnical Division
Phone #651-659-1305
Fax #651-659-1347
jvoyen@amengtest.com
PROPOSAL ACCEPTANCE BY:
Signature:
Printed Name:
Date:
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City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.cLfarmington.mn.us
TO:
EDA Members
FROM:
Tina Honsmeier, Economic Development Specialist
SUBJECT:
Proposals for Purchase of 308 Elm Street (Parks Garage)
DATE:
August 24, 2009
INTRODUCTION
The EDA requested proposals for purchase of the building and real properly consisting of approximately 0.2
acres located at 308 Elm Street on July 14, 2009. The deadline for submittals was Wednesday, August 12th
at 4:00 pm. Two (2) proposals have been received, one of which was submitted after the deadline.
DISCUSSION
Please see the attached proposal from Pellicci Inc. which includes an offer to purchase the 308 Elm Street
properly and the two parcels which make up the "McVicker lot." The intended use is to use the properties
with one another as a combination retail hardware store, storage and shop. Because this proposal includes
an expectation of assistance, Ehlers & Associates (City's financial advisors) and the City Attorney have
reviewed the submitted information to determine what, if any, assistance the city could provide in the form of
tax abatement. A preliminary tax abatement estimate for the proposed development of a hardware store was
completed by Ehlers.
Additionally, shortly after the RFP deadline had passed, A-K Performance Graphics submitted a proposal to
purchase and rehabilitate the building. The intended use of the property is for a fully functioning sign and
graphics shop which includes a retail clothing aspect. Although this proposal did not abide by the timeline
provided, there are no rules or regulations that apply to this situation, therefore, it is up to the EDA to decide
if they wish to consider this proposal or not.
Attached for your review are the following documents:
1. Pellicci Ace Hardware's proposal to purchase 308 Elm Street, including the "McVicker Lot;"
2. Emoil correspondence between the City's Finance Director, Robin Roland, and Ehlers' Senior Financial
Advisor, Bruce Kimmel including the tax abatement estimate;
3. A-K Performance Graphic's proposal to purchase 308 Elm Street; and
4. Request for Proposals document.
ACTION REQUESTED
Provide direction to staff on how the EDA would like to proceed.
Respectfully submitted,
Tina Honsmeier,
Economic Development Specialist
\
1'eI1ieei~tcE. ~~
Eagan
1565 Cliff Road
Eagan, MN 55122
(651 )454-2366
Farmington
113 Elm Street
Farmington, MN 55024
(651)463-4777
Zumbrota
90 E. 3rd Street
Zumbrota, MN 55992
(507)732-4111
Date:
To:
From:
Subject:
August 12, 2009
City of Farmington EDA
Pellicci, Inc.
Request for Proposal- 308 Elm Street I McVicker lots, Farmington, MN 55024
To Whom It May Concern:
The City of Farmington Economic Development Authority has requested written proposals for the
purchase of the commercial property located at 308 Elm Street in downtown Farmington. Pellicci
Inc (aka Pellicci Ace Hardware) is responding to that RFP with a proposal that includes the vacant
McVicker lot.
Backl!round
The lease on our current location expires in March 2012 (31 months). Initial discussions with the
building owner have indicated we need to pursue alternative locations for our business. The current
location ofPellicci Ace Hardware in City Center has 10,880 square feet of retail space with a
mezzanine office.
If awarded the Elm Street project, Pellicci Inc. would propose linking the acquisition ofthe
McVicker land.
We would remodel the existing Elm Street building and use it in conjunction with a newly
constructed two story building on the Me Vicker lot as a combination retail hardware store, storage
and shop at the two locations. After extensive analysis we believe these tw_o w"- II I/,'tle well suited
for access, convenience and location. The visibility of 308 Elm Street and the Third Streetieca!i<.ms
make them attractive to us.
Pellicci Ace Hardware has been operating successfully in Farmington for over 15 years generating
foot traffic of over 100,000 customer transactions per year and has become a fixture in the
community. Bringing this activity to the heart of Downtown will further expand and strengthen the
goal of making downtown the primary shopping destination for the area. Benefits will be seen by
the other Downtown businesses through increased shopping traffic as well as the convenience of a
high quality, proven locally owned Hardware Store.
Summary
The Pellicci family has been Farmington residents for over 45 years and we are excited about our
proposal and the long-term positive benefits to the community. The enhanced interior and exterior
improvements made to the existing Elm Street building along with a beautiful new 2 story building
on the McVicker lot is an exciting possibility for Downtown Farmington. The new building will
create a pedestrian friendly environment, additional jobs, and be the foundation of robust downtown
business district.
The community oriented activities, involvement and commitment of Pellicci Ace Hardware and the
Pellicci family to the City of Farmington has a long history. Our interest is to build a facility that
the next generation of Farmington residents and Pellicci family members will be proud of for the
next 50 years.
Conclusion
We believe our proposal meets all ofthe requirements detailed by the EDA in the Request for
Proposal document. In addition to the property located at 308 Elm Street, Pellicci Inc has included.
a broader improvement plan to downtown Farmington by improving the Me Vicker location. The
following proposal details estimated sources and uses of funds to ffiance this project. We are
certainly not clear on what value the City of Farmington places on a project like this and understand
the financing "hole" is substantial. Please consider this Proposal our attempt at beginning the
process as we are looking for creative ways to make this project work.
Thank you for your consideration.
Pellicci Inc.
Ferro Pellicci
John Pellicyi
Mark Pellicci
Mike Pellicci
'PeiUeet ~u ~~
Eagan
1565 Cliff Road
Eagan, MN 55122
(651)454-2366
Farmington
113 Elm Street
Farmington, MN 55024
(651 )463-4777
Proposal
Estimated Uses of Funds
(1) Acquire The Property (308 Elm Street)
(2) Acquire and Build on McVicker Lots
(3) Improvements to The Property (308 Elm Street)
One Full-time Employee
Two Part-time Employees
New Roof
Exterior Painting
Exterior Signs
Interior Painting
Shop Area
Wash Area
Restroom Remodel
Pallet Racking
Estimated Property Taxes
TOTAL
(4) Miscellaneous moving and "soft" costs
TOTAL USES
Esti mated Sou rces of Fu nds
(1) Pellicci Inc Equity
(2) Pellicci Bank Loan
(3) Consideration from The City
TOTAL SOURCES
$40,000
$47,500
$12,500
$ 3500
$ 2500
$ 2000
$ 2500
$ 3000
$ 3500
$ 3000
$ 5000
$125,000
Zumbrota
90 E. 3rd Street
Zumbrota, MN 55992
(507)732-4111
$ 50,000
$1,050,000
$ 125,000
$ 100,000
$1,325,000
$ 250,000 (19%)
$ 650,000 (49%)
$ 425,000 (32%)
$1,325,000
Page 1 of2
::z
Tina Hansmeier
From: Bruce Kimmel [bkimmel@ehlers-inc.com]
Sent: Tuesday, August 18, 200912:35 PM
To: Robin Roland
Cc: Peter Herlofsky; Tina Hansmeier
Subject: RE: Pellici hardware proposal
Hi Robin - I've attached a preliminary tax abatement estimate for the proposed Pellici Hardware development in
downtown Farmington. You'll see that I assumed a completed market value of $1.2 million, or $80 per s.f. for 15,000
square feet. It's hard to know how Dakota County will assess since they aren't many comps in the immediate area
(and the assessor assigned to Farmington demurred from providing any ranges), but I think $80 is a decent estimate
for this purpose.
Assuming the City grants a 20-year abatement (maximum term) and no County or ISO 192 participation, we estimate
a City abatement of roughly $6,700 per year, or $100,200 total over 20 years. The present value of this revenue
stream is just under $60,000. Even if we assumed some degree of annual inflation in taxable values, the total
possible City subsidy would be much smaller than the requested $425,000 of City assistance.
Finally, I wanted to point out the box on the bottom of page 2, because it illustrates how much of a total commercial-
industrial property tax bill is ineligible to be captured with abatement. Of the $40,300 in estimated total property
taxes, only $18,000 is eligible to be "abated" by the City, County and ISO 192 (although, if all 3 jurisdictions did
abate, the maximum term would be 15 years). And, as you know, the City's portion is just over a third ($6,700) of
that $18,000.
Let me know if Ehlers can provide any additional information. As we discussed, this type of preliminary analysis is
"on the house". Thanks,
Bruce
Bruce Kimmel, CIPFA
Senior Financial Advisor
Ehlers - Leaders in Public Finance
Email: bkimmel@ehlers-inc.com
Direct Dial: 651.697.8572
Toll-Free: 800.552.1171
From: Robin Roland [mailto:RRoland@CLFARMINGTON.MN.US]
Sent: Friday, August 14, 2009 8:39 AM
To: Bruce Kimmel
Cc: Peter Herlofsky~ Tina Hansmeier~ Robin Roland
Subject: Pellici hardware proposal
Attached is the proposal from the Pellici's. The "McVicker Lot" is actually two lots (317-323 3rd Street) and I have
sent the Dakota County Real Estate information. We assume that their proposed two story building would take up
the entire lot, resulting in a maximum square footage of 15K.
They have not provided any financial information indicating need or hardship; they have just listed the expectation
of city assistance of $425K. The other property in question (308 Elm Street) is also on the market at the County's
assessed value. As you can see they are proposing to buy that for $50K which is $137K less than the market price.
If you have questions, give me a call.
Thanks
Robin
8/21/2009
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City of Farmington
Economic Development Authority
Request for Proposals
Sale of Commercial Property
Farmington, Minnesota
I. Introduction/Purpose
The City of Farmington Economic Development Authority (EDA) is requesting proposals
for the purchase of the real property consisting of approximately .2 acres and the
building located at 308 Elm Street, Farmington, MN 55024 (referred to herein as the
"Property"). The EDA's objective in issuing this Request for Proposals ("RFP") is to
provide a competitive means in which to select a single purchaser ("Purchaser") to
purchase the Property.
II. Description of Property
The Property is legally described as Lot 4, Block 23, except the East 1 0 feet of lot 4,
block 23, Town of Farmington as recorded with Dakota County. The Property address
is 308 Elm Street, located at mid-block of Third and Fourth Streets on the south side of
Elm Street/CSAH 50. According to Dakota County records, Property was improved in
1946, with a one-story building roughly 4,280 square feet. Property's land area
consists of approximately .2 acres. This Property is located in the Downtown Business
(B-2) Zoning district. Please see Attachment A for pictures of the Property and B-2
Zoning Code information.
III. Background
The EDA has had an appraisal of the Property conducted within the last six (6) months
with an appraised value for the land and improvements at $185,000. The assessed
value of the Property is $187,700.
Sale Price: $185,000
The sale price is based on the April 2009 Appraisal Report prepared by Snyder
Appraisal Service.
The EDA will not consider Proposals that will maintain the building in its current form
without interior and exterior improvements to the building.
If purchase offer requires a Business Subsidy, Proposal must demonstrate in detail how it
will meet the minimum requirements of the City Business Subsidy Policy (Attachment B).
IV. Criteria
Proposals shall include at least the following information:
a) Proposed purchase price for the Property.
b) A description of intended use of Property.
c) A description of all proposed exterior and interior Property improvements.
d) Estimated cost breakdown of work to be completed.
e) Renderings or drawings to illustrate proposed improvements.
~ If a Business Subsidy is required the Proposal must indicate in detail how it will
meet the minimum requirements of the Business Subsidy including:
1. A description of jobs to be created;
2. How the Property will be redeveloped, or
3. How the Property will be enhanced through exterior improvements
and/or interior improvements.
V. Evaluation
The EDA will evaluate Proposals and give greater consideration to a Proposal that
provides for the following:
a) Proposed purchase price for the Property: The overall price proposed for
purchase of the Property.
b) Use of Property: The preferred use of Property is retail.
c) Benefit/enhanced value to the city: Enhanced interior and exterior improvements
or removal of the building and construction of a new building.
VI. Timeline
After the deadline for submission (August 12, 2009), Proposals will be opened and
reviewed for consideration by the EDA at their next available meeting.
VII. Submittal Instructions
a) Any questions regarding this RFP should be directed to Tina Hansmeier at 651-
280-6821 or via email atthansmeier(Q;lci.farmington.mn.us. Proposals shall be
submitted no later than 4:00 pm on August 12, 2009 to:
Tina Hansmeier
City of Farmington
430 Third Street
Farmington, MN 55024
Proposals must be in a sealed envelope and clearly marked "Proposal to
Purchase Property at 308 Elm Street Farmington, MN 55024."
b) Those submitting a Proposal do so at their own expense. The EDA will not
reimburse any expense incurred by the individual submitting Proposal(s)
including, but not limited to, expenses associated with preparation and
submission of the response, submission of additional information requested by
the city, or attendance at interviews or consultation meetings.
c) Nothing in the Proposal shall be deemed to commit the EDA to select the
proposer.
d) The City makes no guarantee, expressed or implied that any sale of said Property
will take place resulting from this RFP.
e) The EDA reserves the right to reject any and all proposals, in whole or in part, to
waive any and all informalities, to disregard all non-conforming, non-responsive
or conditional proposals, to request additional information from a proposer, or
to expand the period for submittal of proposals, and in general, to sell the
Property in any manner deemed by it, in its sole discretion, to be in the best
interest of the City. The City of Farmington EDA reserves the right to negotiate
the terms of the Purchase Agreement with the successful proposer.
f) The EDA reserves the right to release modifications to this RFP in the form of a
written addendum.
g) Final acceptance of any Proposal is the sole responsibility of the City of
Farmington EDA.
VIII. Other
Proposer understands and acknowledges that this proposal is subject to the Minnesota
Governmental Data Practices Act. Proposals are private or non public until they are
opened by the City. Once the proposals are opened, the name of the proposer
becomes public. All other data in the proposals is private or nonpublic data until the
completion of the evaluation process. After the City has completed the evaluation
process, all remaining data submitted by all proposers is public with the exception of
trade secret data as defined and classified in Minnesota Statutes Section 13.37. Data
will at all times be governed by the Minnesota Governmental Data Practices Act,
Minnesota Statutes Chapter 13. Proposer agrees to maintain all data obtained from the
City consistent with the requirements of the Data Practices Act. Proposer agrees to
defend or indemnify the City from any claim, liability, damage or loss asserted against
the City as a result of the proposer's failure to comply with the requirements of the Data
Practices Act.
Attachment A
The B-2 downtown business district identifies a variety of general commercial and higher density
residential uses for the downtown area in order to expand and strengthen the downtown as the primary
commercial district for the city, create a pedestrian friendly downtown, and promote the city as a
cultural center. Objectives of this district are to preserve historical buildings, require high design
standards, and provide a diverse mix of community oriented commercial and cultural activities that are
pedestrian oriented and accessible to area residents.
Uses:
1. Permitted:
Animal clinics.
Clinics.
Clubs.
Coffee shops.
Commercial recreational uses.
Commercial services.
Neighborhood services.
Nonprofit recreational, cultural and entertainment uses.
Offices.
Personal and professional services.
Personal health and beauty services.
Public buildings.
Recreation equipment sales/service/repair.
Restaurants, class I, traditional.
Retail facilities.
Sexually oriented businesses _ accessory.
(Ord. 002-469,2-19-2002)
2. Conditional:
Auto repair, major.
Auto repair, minor.
Bed and breakfast.
Child daycare center, commercial.
Churches.
Convenience store, with gas.
Dental laboratories.
Funeral homes.
Grocery stores.
Hotels.
Mixed use building.
Motels.
Multiple-family dwellings.
Outdoor sales.
Public and parochial schools.
Public utility buildings.
Restaurants, class II, fast food, convenience.
Restaurants, class III, with liquor service.
Restaurants, class IV, nonintoxicating.
Solar energy systems.
(Ord. 002-469,2-19-2002; amd. Ord. 002-483, 12-2-2002; Ord. 003-484, 1-21-2003; Ord. 004-513, 8-
2-2004; Ord. 005-537, 7-5-2005)
3. Accessory:
Parking lots.
(Ord.002-469,2-19-2002)
PICTURES # 1
This picture illustrates the front fac;:ade of the building and a neighborhood view of the property located
at 308 Elm Street.
<?'b
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ciJarmington.mn.us
TO:
EDA Members
FROM:
Tina Hansmeier, Economic Development Specialist
SUBJECT:
Exchange Bank Building Lawsuit
DATE:
August 24, 2009
INTRODUCTION/DISCUSSION
2004 Real Estate Company (a.k.a. Hosmer Brown), has served the City of Farmington with litigation
documents regarding the Exchange Bank Building. The League of Minnesota Cities (LMNC) has
retained Robin Weipert of Greene Espel as counsel in the matter on behalf of the City.
\CTION REQUESTED
This item is for informational purposes at this time. Additional information will be provided as it
becomes available.
ResRectfully submitted,
~~~U
Tina Hansmeier,
Economic Development Specialist
j Is Your Home
nergy Efficient?
The Dakota County Community
Development Agency (CDA)
Weatherization Assistance Program
provides eligible homeowners with
a grant to help make their home
more energy efficient. Funds can be
used to insulate attics or walls or to
upgrade furnaces.
Household Size Maximum Income
1 $21,184
2 $27,702
3 . $34,220
4 $40,738
5 $47,256
6 $53,774
7 $54,996
If you qualify, the CDA's Energy
Specialist will conduct an energy
audit on your home to determine
soluti()ns to improve your home's
energy efficiency. For more
information, call 651-675-4554.
Homeowner
ffordabilityand
Stability Plan
On Mar<:h 4, the federal Making Home
Affordable Program was launched
to offer relief to homeowners who
have fallen behind or are struggling
to make their mortgage payment.
Qualifying homeowners may be able
to refin~nce or modify their mortgage
loan, depending on their situation.
For infomlation and eligibility criteria
visit www.financialstability.gov/
makinghomeaffordable/ or call the
Dakota County CDA at 651- 675-4555
to speak with a homeownership
specialist. The Home Improvement
Loan and Mortgage Foreclosure
Prevention Programs are part ofthe
Dakota County CDA's Homeownership
Connection services that provide
homebuyers and homeowners
resources to be successful. Visit www.
dakotacda.org/homeownership
nnection.htm for more information
out Homeownership Connection
I programs.
~'(\e ~r;cf9~
September/October 2009
Community Development News 7" b
Ribbon Cutting Celebrations
Cancun Restaurant
953 South Street. 651-463-7710
Farmington welcomed Cancun Restaurant
with a ribbon cutting ceremony on August
1'\ Restaurant owner, Maria Cortes along
with her husband, Agustin Diaz and
daughter, Luz Arley and restaurant staff
offered Grand Opening menu specials and
a mariachi band for dinner entertainment.
The freshest ingredients are used in
making the many menu choices which
include small and large combination
Mexican cuisine meals including seafood,
vegetarian plates, and of course dessert!
Pictured left to right: Mayor Todd Larson,
Brooke Larson, Economic Development
Specialist Tina Hansmeier, Agustin Diaz,
Owner, Maria Cortes, Ramido, Fabian, Luz
Arley and Maribel.
Steam Brothers
109 Spruce Street. www.waterdamagemn.com . 952-898-4055
Steam Brothers celebrated their
Grand Opening with a ribbon cutting
ceremony on August 11th. The
company provides a multitude of
professional, residential, business,
restoration and cleaning services.
The Steam Brothers staff have
provided professional services in the
Minneapolis area and throughout the
State of Minnesota for over 30 years.
Pictured left to right: Back row - Rodney Fors, Nic &
Rachel Reuss, Matt & Maya Fors, Mayor Todd Larson,
Judy & Jerry Thomas and Peter Herlofsky. Front row
- Layla & Alessandro Fors.
Home Improvement Loans of
up to $25,000 Available
Is your home in need of repairs or improvements but you're
not sure how to finance them? The Dakota County Community
Development Agency (CDA) may be able to help.
The CDA's Home Improvement Loan Program provides up to
$25,000 to eligible homeowners to make improvements to
their homes such as insulation, electrical and plumbing repairs,
exterior improvements (roof, windows, siding) or special needs
modifications (such as ramps or accessibility enhancements).
Loans feature interest rates of either zero or three percent, no monthly payments
and are not required to be repaid until ownership in the property changes or if the
home is no longer the borrower's primary residence. To qualify, applicants must
own their home, have sufficient equity in the property, a satisfactory credit history
and have gross household incomes below the following limits.
For more information or to request an Household Size 0% Loan
application, contact Mark Hanson at Income Limit
651-675-4469 or mhanson@>dakotacda. 1 $29,350
state.mn.us or download an application, ; ;;;:;~~
or for additional information about 4 $41,950
programs and resources visit the CDA's 5 $45,300
website at www.dakotacda.org/ 6 $48,650
homeowners.htm 7 $52,000
3% Loan
Income Limit
$44,800
$51,200
$57,600
$64,000
$69,100
$74,250
$79,350
Code Revisions for Sheds and Garages
On August 3, 2009, the City Council approved two revisions to the city code
concerning storage sheds and detached garages. Both buildings are considered
accessory structures in the code and are defined as follows:
Accessory Structure
City code states in section 10-2-1: A structure on the same lot with, and of
a nature customarily incidental and subordinate to, the principal structure
including but not limited to an attached or detached garage and storage shed.
Before the August 3rd ordinance change, the allowable size for a storage shed
was 120 square feet or 12 feet long by 10 feet wide. Because ofthe new sizes in
sheds available and the increase of complaints about storage of items outside on
residential properties, the Planning Commission directed City staff to research
larger shed sizes. After extensive exploration and discussion, the Commission
agreed to increase the shed size from 120 square feet to a maximum of 240
square feet, allowing a shed to be installed at 24 feet long by 10 feet wide or
16 feet long by 15 feet wide or other combinations to meet 240 square feet as
desired by the homeowner.
However, it is important to understand that the final size of the storage shed
must comply with the lot coverage. Lot coverage is determined by adding the
square footage of the house, garage, detached garage, deck, gazebo, shed,
etc., and determining if those structures are below 30% ofthe lot coverage. For
example, if a lot is 10,000 square feet in size and the house, attached garage,
deck and gazebo calculate to 2,800 square feet, the shed could only be 150
square feet in size rather than the 240 square feet because of the 30% lot
coverage requirement (2,800 + 150/10,000 = 29.5% lot coverage).
An additional revision of the ordinance states that the City no longer requires
that a paved driveway lead to a detached garage.
If you have any questions concerning the zoning code revisions, please call Lee
Smick, City Planner, at 651-280-6820 or email atlsmick(1ilci.farmington.mn.us.
Downtown Farmers' Market
The Farmers' Market has been very busy this
summer with vendors selling locally grown
produce, baked goods, fresh cut flowers
- and more. The market also hosted events
throughout the season including:
. Market Kick Off Night - the first 200 customers
received free Chico reusable bags.
. Rambling River Center Night-provided organ
music, train club and woodcarving displays.
Dakota Valley Arts Council Art Show
. Kids Night - over 300 children enjoyed a duck
pond for prizes, puppet shows, face painting,
singing and dancing with Rachel Kroog.
. Craft Show -local hand crafted items.
. local Business Night - showcasing products
and services.
The outdoor downtown market is a
popular place to find locally grown fresh
produce and more.
The Market will be open each Thursday, 3:00 - 7:00
pm, at 109 Spruce Street until late September or mid-
October. Check the City website for market dates, the
market newsletter and events. Contact Usa Dargis at
651-280-6823 or Idargis(1ilci.farmington.mn.us
DOWNTOWN FARMINGTON
Call Before ~
You Dig!
This time of the year may people are
finishing outdoor projects that may
involve digging. Prior to doing any
digging, please contact Gopher State
One Call (GSOC) two full business
days in advance.
Be prepared to provide the following
information:
. Name, address and phone number.
. What type of work will be done.
. General digging location:address,
city, county and the nearest
intersecting street.
. Specific digging location 5uc.h ~s
"north side of house, within a fiVe-
foot radius of the white staket etc.
When the digging will be clo~e,
(Le. 3 days next week)
. Use white paint or stakesto mark
the digging area.
GSOC's hours are 7:00am- 5:00
pm, Monday - Friday. CiSe)(
can only locate services
where utilities have been
installed. Other serviCes
such as sprinkler lines,
power lines installecf onto
garages, gas grilllirie,sOr
invisible fencinglin~~ must
be located by private
parties. Independent,
professionallQcators
are responsible f()r
contacting GSOc. Mark
the digging area with
white stakes orvvhit~spray
paint so the area is easilyid~ntified
and locating can be concen~r~tedih
the immediate area. No.digging is
permitted closer than two fee{frol11
any utility markings.
Gopher State OheCall
METRO AREA 651-454-0002
MN TOLL FREE 800-252-1166
This is a Free Service.
www.ciJarmington.mn.us
Stay Up-fo-Date
X'e Brief,...
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