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HomeMy WebLinkAbout07.17.23 EDA Packet (amended 07.17.23)Meeting Location: Farmington City Hall Conference Room 170 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA Monday, July 17, 2023 4:30 PM Page 1.CALL TO ORDER 2.PLEDGE OF ALLEGIANCE 3.ROLL CALL 4.APPROVE AGENDA 5.CITIZEN COMMENTS 6.CONSENT AGENDA 6.1. Economic Development Authority Meeting Minutes of June 26, 2023. Approve the minutes of the June 26, 2023 Economic Development Authority meeting. Agenda Item: Economic Development Authority Meeting Minutes of June 26, 2023. - Pdf 3 - 9 6.2. Monthly Financial Statement Accept the Monthly Financial Statement for the EDA. Agenda Item: Monthly Financial Statement - Pdf 10 - 11 7.PUBLIC HEARINGS 8.DISCUSSION ITEMS 8.1. Approve Collateral Assignment and Subordination of Contract and TIF Note for Private Development Approve Resolution R06-23 Approving Collateral Assign of Contract for Private Development 12 - 26 Page 1 of 51 "AMENDED" Agenda Item: Approve Collateral Assignment and Subordination of Contract and TIF Note for Private Development - Pdf 8.2. Approval of Micro Grant for Heikkila Studios - R05-23 Approve R05-23 granting a Micro Grant to Heikkila Studios. Agenda Item: Approval of Micro Grant for Heikkila Studios - R05-23 - Pdf 27 - 36 8.3. Recommending a 2024 Property Tax Levy for the Farmington Economic Development Authority (EDA) Consider Resolution R07-23, Resolution Requesting 2024 Economic Development Authority Levy. Agenda Item: Recommending a 2024 Property Tax Levy for the Farmington Economic Development Authority (EDA) - Pdf MEMO - EDA Levy Process - CampbellKnutson R07-23 APPROVING EDA_Levy Request 2024 Budget 37 - 48 9.DIRECTOR'S REPORT 9.1. Director's Report No action requested. This report is for informational purposes only. Staff is available to provide additional details and answer any questions. Agenda Item: Director's Report - Pdf 49 - 51 10.ADJOURN Page 2 of 51 ITEM ADDED: ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Shirley Buecksler, City Clerk Department: Administration Subject: Economic Development Authority Meeting Minutes of June 26, 2023. Meeting: Economic Development Authority - Jul 17 2023 INTRODUCTION: Attached for the Commission's review and approval are the minutes from the June 26, 2023 Economic Development Authority Meeting. DISCUSSION: Not applicable BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve the minutes of the June 26, 2023 Economic Development Authority meeting. ATTACHMENTS: 06.26.23 EDA Minutes Page 3 of 51 City of Farmington Economic Development Authority Regular Meeting Minutes Monday, June 26, 2023 The Farmington Economic Development Authority met in regular session on Monday, June 26, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Chair Wilson called the meeting to order at 4:00 p.m. 2. PLEDGE OF ALLEGIANCE Chair Wilson lead everyone in the Pledge of Allegiance. 3. ROLL CALL Members Present: Chair Steve Wilson Commissioners Holly Bernatz, Joshua Hoyt, Nick Lien, and Katie Porter Members Absent: None Also Present: Lynn Gorski, City Administrator Deanna Kuennen, Community Development Director Stephanie Aman, Economic Development Coordinator John Powell, Public Works Director Shirley Buecksler, City Clerk Kara Hildreth, Editor – Dakota County Tribune 4. APPROVE AGENDA Motion was made by Commissioner Lien and seconded by Commissioner Porter to approve the agenda, as presented. Motion carried: 5 ayes / 0 nays. 5. CITIZEN COMMENTS No one addressed the Commission to speak. 6. CONSENT AGENDA 6.1 Economic Development Authority Meeting Minutes of April 17, 2023 6.2 Open to Business Quarter Report – Q1 2023 Motion was made by Commissioner Hoyt and seconded by Commissioner Porter to approve the Consent Agenda, as amended. Motion carried: 5 ayes / 0 nays. Page 4 of 51 Economic Development Authority Minutes June 26, 2023 Page 2 of 6 7.PUBLIC HEARINGS There were no public hearings. 8.DISCUSSION ITEMS 8.1 Approval of Micro Grant for Fissan Training Kennels – R04-23 Coordinator Aman presented. At their March 20, 2023 meeting, the Farmington EDA approved and directed Staff to create a new Micro Grant program for Farmington businesses. Staff worked with legal and created the appropriate documents including guidelines, application and agreements and opened applications as planned on June 1, 2023. Included in the marketing of this program was a postcard sent to nearly 500 businesses, door-to-door visits with open downtown businesses, social media posts in the Farmington business group, website presence, and conversations at networking events with Farmington businesses and economic development partners. Prior to reviewing the applications, the EDA conducted a general review of the program. Discussion on the Micro Grant Program: •Are prior grant applications considered? No. This is a standalone program. Any business within the city limits is eligible, as long as they meet the guidelines. •Creating a program with a maximum amount of fluidity is important. •Staff recommends not changing guidelines at this point, mid -program. At yearend, the program will be reviewed for impact and discussion on what the future of the program may look like. •Staff will follow up on social media to continue to get the word out. •After awarding of a grant, the applicant still needs to go through the proper steps for permits. •Resolution could be modified to add language, “grant approval subject to City permits.” Fissan Training Kennels is the first complete/eligible application received online for the new Micro Grant program. They are requesting $2,500.00 from the program and have presented a bid of $7,538.27 for the proposed project of adding signage to the exterior of their space. The business and the project meet the eligibility parameters for receiving this funding. There was no further discussion on this application. Motion was made by Commissioner Hoyt and seconded by Commissioner Bernatz to adopt Resolution No. R04-23 Approving Micro Grant Funding to Fissan Training Kennels for Certain Business Improvements. Motion carried: 5 ayes / 0 nays. Page 5 of 51 Economic Development Authority Minutes June 26, 2023 Page 3 of 6 8.2 Approval of Micro Grant for Heikkila Studios – R05-23 Coordinator Aman presented. Heikkila Studios would like to improve the area beside their building (north side) by removing and replacing the crumbling cement and adding flower planters to beautify the space. They have submitted an estimate for work in the amount of $5,387.00 and request a $2,500.00 Micro Grant to help fund this project. Heikkila Studios has met the eligibility requirements for the program. Discussion on application: • The EDA had technical questions regarding the proposed work, safeguards for the adjacent building, building code questions regarding the metal stairs, and “what if” questions concerning the unknowns that may be discovered once the cement is removed. • The EDA questioned what would happen if the word did not get completed prior to the end of warm/construction weather. • The EDA asked about the right-of-way permits required to conduct work that abuts the city sidewalk. Motion was made by Commissioner Hoyt to move approval of this application with the contingency that the approval and permitting process is vetted and , if there are any amendments to the cost of this, that the applicant comes back to Staff and ensures that there is a safety process in place for any potential changes and adequate funding to cover that. Commissioner Hoyt withdrew his motion. Motion was made by Commissioner Lien and seconded by Commissioner Bernatz to continue this item. Motion carried: 5 ayes / 0 nays. 8.3 Marketing Strategy and Guide At the request of the Farmington EDA, Staff have compiled a summary document outlining the Marketing approach from the Economic Development team for 2023 and beyond. Director Kuennen and Coordinator Aman presented the Marketing Strategy and Guide, which is intended to help explain the background, how it applies to the Council’s pillar, and to help the EDA understand what Staff is doing, and how it’s working. Page 6 of 51 Economic Development Authority Minutes June 26, 2023 Page 4 of 6 Staff spoke to the following: • Building relationships and networking is important. Farmington isshowing up in places where we haven’t shown up before, but other cities have. Staff is approachable and relatable, and confident in how we present Farmington, the opportunities, and the vision. . • Staff is working with the City’s new GIS Specialist to create interactive maps and an enhanced web presence for marketing development opportunities. Staff will be creating podcasts, as well as video productions on small businesses and our industrial partners. • Staff is telling Farmington’s story and fostering Farmington’s entrepreneurial spirit. It’s memorable, believable, and it’s working. Brokers and developers have gone beyond talking with us to working on property negotiations. Discussion and comments: • This is an incredibly well thought out process. • Appreciate your splitting economic development branding from city development. • This is exciting, and the way it tells our story is amazing. • Please share this with the Planning Commission – both this guide and your enthusiasm. • Working with landowners and getting this level of enthusiasm is imperative. The legacy of their property is as important as the thing is to us that we want to go there. • Director Kuennen and Coordinator Aman have accomplished so much in under six months; kudos to you both. 8.4 Proposed EDA Work Plan - 2024 At the April EDA meeting, Staff introduced the concept of requesting an economic development authority levy as part of the 2024 budget. Currently the EDA does not have a dedicated funding source for programming, and the annual direct appropriation from the general fund does not fully support the existing EDA activities. Staff worked with Chris Regis, Finance Director, to understand maximum funding that could be realized and dedicated for economic development through the levy as allowed by state statues, as well as other lesser funding scenarios and their impact on the overall levy. Based on that discussion, the EDA requested that Staff provide additional details on how the proposed levy dollars would be used. Based on that direction, Staff prepared a draft work plan with proposed activities for discussion purposes - including a $150,000 levy suggestion. The work plan focused on building on the successes and momentous currently being realized and recognizing “quality business growth and retention” is one of the city’s priorities – Staff has identified the following activities to peruse in 2024: Page 7 of 51 Economic Development Authority Minutes June 26, 2023 Page 5 of 6 • Community Venture Network (CVN) – CVN is a membership organization that serves as a potential “match making service” between business leads and communities throughout the Midwest region. The company vets the business leads and provides three (3) events annually where companies present their business needs to member communities. CVN connects communities with businesses searching for opportunities to exp and and grow, research businesses nationwide to understand growth goals, and supports the businesses/communities throughout the location decision process and beyond. - $4,500 • Minnesota Real Estate Journal (MREJ) – RE Journals is the largest producer of commercial real estate content across the Midwest, hosting events on at least 15 topics every year and offering the most CE credits to area commercial brokers locally. In 2023 the EDA contracted with MREJ which provided sponsorship of summits, speaking opportunities, booths at events/summits, editorial opportunities, and ads on the MREJ website and in print publications. The value in this relationship is access to the commercial brokerage community, name recognition, and a platform to share Farmington stories/vision/plans/opportunities to individuals representing projects and clients. - $10,000 • Site Location Partnership (SLP) – SLP is a multi-disciplined advisory firm that partners with entities to attract new industry, investment, and jobs. The one-year contract involves working together to identify target industries and specific prospects within those industries – including customized databases, personalized outreach, corporate profiles, and introductory calls, identifying and facilitating appointments with site selector consultants, representation at trade shows, web promotion and additional exposure. - $12,500 plus travel to two trade shows. • Bloomberg Placemaking matching grant program (or similar) – There is an opportunity to leverage the investments/changes that are happening in the downtown, build upon the comments coming from the community vision outreach regarding adding more color and art in the community, and implementing a wayfinding program that will connect different aspects of the community (parks, trails, community facilities, parking, etc.). What this specifically looks like is yet to be determined, but in 2023 a “placemaking matching grant program” was offered through Bloomberg Philanthropies. The idea behind the placement program is to use art as a means to connect communities and create vibrant spaces. - $25,000 No budget impact for 2023; this information is for discussion purposes only, and to formulate and prepare a proposed budget for 2024. Page 8 of 51 Economic Development Authority Minutes June 26, 2023 Page 6 of 6 Discussion: • Appreciate the work Staff has done to show the action behind the dollars. • Recommend increasing budget on some items; costs look low. We want to be sure you have some flexibility. Budget meetings are coming up, and this will be discussed. • Direction from EDA – everything looks good from what we see here. 9. DIRECTOR’S REPORT 9.1 Director’s Report The Director’s Report was provided to the EDA for informational purposes. 10. ADJOURNMENT Motion was made by Commissioner Lien and seconded by Commissioner Bernatz to adjourn the meeting at 5:42 p.m. Motion carried: 5 ayes / 0 nays. Respectfully submitted, Shirley R Buecksler City Clerk Page 9 of 51 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community Dev Director Department: EDA Subject: Monthly Financial Statement Meeting: Economic Development Authority - Jul 17 2023 INTRODUCTION: Attached is the monthly financial statement for the month of June 2023. DISCUSSION: Attached is the monthly financial statement for the month of June 2023. There are no unusual expenses reported during this period. BUDGET IMPACT: Not applicable ACTION REQUESTED: Accept the Monthly Financial Statement for the EDA. ATTACHMENTS: EDA Monthly Financial Report - June Page 10 of 51 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT June 30, 2023 ECONOMIC DEVELOPMENT AGENCY COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Interest 1,600 - 2,350 1,349 146.88%(6,627) Total Revenues 1,600 - 2,350 1,349 146.88%(6,627) EXPENDITURES Other Services & Charges 81,510 1,406 37,084 19,519 45.50%40,598 TOTAL EXPENDITURES 81,510 1,406 37,084 19,519 45.50%40,598 TRANSFERS 50,000 4,167 25,000 69,367 94,367 EXCESS (DEFICIENCY)(29,910)$ 2,761$ (9,734)$ 51,197$ 47,142$ Cash Balance as of June 30, 2023 $204,256. Page 11 of 51 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community Dev Director Department: EDA Subject: Approve Collateral Assignment and Subordination of Contract and TIF Note for Private Development Meeting: Economic Development Authority - Jul 17 2023 INTRODUCTION: The EDA is asked to consider a Collateral Assignment and Subordination of Contract for Private Development and TIF Note, as required by the primary lender financing the con struction of the downtown Ebert apartment project. DISCUSSION: On June 8, 2023 - the EDA entered into a Contract for Private Development with Ten Nineteen Development, LLC pertaining to the construction of a 74-unit multifamily apartment project located at 310 3rd Street. Since then, Ten Nineteen Development, LLC has assigned its interest in the Contract for Private Development to Ten Nineteen - Farmington, LLC, the redeveloper has secured a construction loan, and now the lender is requiring as a condition of the loan, that the redeveloper assign its rights under the Contract for Private Development to the lender, and that certain rights of the EDA under the Contract for Private Development be subordinated to the mortgage. Legal counsel has reviewed the Collateral Assignment and Subordination of Contract for financing t he project and prepared the attached resolution for consideration. The collateral assignment and subordination requests are common. All of the necessary language has been incorporated into the documents to protect the EDA and the EDA's interests. BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve Resolution R06-23 Approving Collateral Assign of Contract for Private Development ATTACHMENTS: R06- 23_APPROVING_COLLATERAL_ASSIGNMENT_OF_CONTRACT_FOR_PRIVATE_REDEVELOP MENT with exhibits Page 12 of 51 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. R06-23 RESOLUTION APPROVING COLLATERAL ASSIGNMENT AND SUBORDINATION OF CONTRACT AND TIF NOTE FOR PRIVATE DEVELOPMENT WHEREAS, the Economic Development Authority of the City of Farmington, Minnesota (the “Authority”) and Ten Nineteen Development, LLC, a Minnesota limited liability company, entered into a Contract for Private Development, June 8, 2023, pertaining to, among other things, the construction of a 74-unit multifamily development (the “Project”), all to be located on property legally described on Exhibit A attached hereto and hereby made a part hereof (the “Property”); and WHEREAS, Ten Nineteen Development, LLC assigned its interest in the Contract to Ten Nineteen – Farmington, LLC, a Minnesota limited liability company (“Redeveloper”) through that certain Assignment of Contract for Private Redevelopment dated June 8, 2023 WHEREAS, Redeveloper, has secured a construction loan in the principal amount of $11,300,000.00 from Old National Bank, a national banking association (“Lender”), in part, in order to perform its obligations pursuant to the Contract; and WHEREAS, the Lender required, as an express condition of the construction loan agreement, that Redeveloper, assign its rights under the Contract to the Lender in order to secure the obligations of Redeveloper, under the Note, the Loan Agreement, and the Mortgage between the Redeveloper and Lender, and that certain rights of the Authority under the Contract be subordinated to the Mortgage; and WHEREAS, a Collateral Assignment and Subordination of Contract for Private Development and TIF Note, as attached hereto as Exhibit B (“Subordination Agreement”) has been prepared in compliance with the Lender’s requirements for the construction loan Lender has secured; NOW, THEREFORE, BE IT RESOLVED by the Board of the Economic Development Authority for the City of Farmington, Minnesota: 1. That the Subordination Agreement is approved substantially in the form attached hereto. The Chair and Executive Director are hereby authorized and directed to execute and deliver the Subordination Agreement in accordance with its terms. All of the provisions of the Subordination Agreement when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Page 13 of 51 Subordination Agreement shall be substantially in the form attached hereto which is hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Chair and the Executive Director, in their discretion, shall determine, and the execution thereof by the Chair and the Executive Director shall be conclusive evidence of such determination. 2. The Chair and Executive Director are hereby authorized and directed to execute any documents deemed necessary to carry out the intentions of this resolution. Approved by the Economic Development Authority of the City of Farmington, Minnesota on ______________, 2023. _____________________________ Steve Wilson, Chair ATTEST: _____________________________ Deanna Kuennen, Executive Director Page 14 of 51 EXHIBIT A Parcel 1: Lots 1 and 2, Block 22, Town of Farmington, according to the recorded plat, Dakota County, Minnesota. Parcel 2: That part of the Southwest Quarter of the Northeast Quarter of Section 31, Township 114, Range 19, and the railroad right of way, as dedicated on the recorded plat of TOWN OF FARMINGTON, Dakota County. Minnesota, described as follows: Beginning at the Northwest corner of Block 22 of said plat of TOWN OF FARMINGTON; thence North 89 degrees 36 minutes 10 seconds West, assuming the West line of said Block 22 bears North 11 degrees 34 minutes 01 seconds East, a distance of 101.93 feet to a line parallel with and 100 feet Westerly of said West line of Block 22, as measured at a right angle therefrom; thence South 11 degrees 34 minutes 01 seconds West, along said parallel line, a distance of 53.80 feet; thence South 78 degrees 25 minutes 59 seconds East, a distance of 23.37 feet; thence South 32 degrees 54 minutes 37 seconds East, a distance of 23.65 feet; thence South 09 degrees 42 minutes 34 seconds West, a distance of 108.20 feet; thence South 80 degrees 18 minutes 48 seconds East, a distance of 42.02 feet; thence South 89 degrees 30 minutes 58 seconds East, a distance of 14.83 feet to the West line of said Block 22; thence North 11 degrees 34 minutes 01 seconds East, along said West line, a distance of 194.34 feet to the point of beginning. Page 15 of 51 EXHIBIT B COLLATERAL ASSIGNMENT AND SUBORDINATION OF CONTRACT FOR PRIVATE REDEVELOPMENT AND TIF NOTE THIS COLLATERAL ASSIGNMENT AND SUBORDINATION OF CONTRACT FOR PRIVATE REDEVELOPMENT AND TIF NOTE (this “Assignment”) is made and entered into as of the ___ day of July, 2023, by and among the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA, a public body corporate and politic under the laws of the State of Minnesota (the “EDA”), TEN NINETEEN - FARMINGTON LLC, a Minnesota limited liability company (the “Redeveloper”), and OLD NATIONAL BANK, a national banking association (the “Lender”). Recitals WHEREAS, the EDA and the Redeveloper are parties to that certain Contract for Private Redevelopment dated as of June 8, 2023, as amended by that certain Assignment of Contract for Private Redevelopment dated June 8, 2023 (collectively, the “Development Agreement”), pertaining to, among other things, the construction of a 74-unit multifamily development (the “Project”), all to be located on property legally described on Exhibit A attached hereto and hereby made a part hereof (the “Property”); and WHEREAS, pursuant to the Development Agreement, the EDA is to execute that certain Tax Increment Revenue Note in the maximum principal amount of up to $1,750,000.00 (the “TIF Note”) upon the terms and conditions set forth in the Development Agreement; and WHEREAS, the Redeveloper and the Lender have entered into that certain Construction Loan Agreement of even date herewith (the “Loan Agreement”), pursuant to which the Lender has agreed to make a construction loan to the Redeveloper in the original principal amount of $11,300,000.00, evidenced by a Real Estate Note in the original principal amount of $11,300,000.00 (the “Note”) and payable to the order of the Lender; and WHEREAS, the Note is secured by that certain Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents of even date herewith (the “Mortgage”), executed by the Redeveloper in favor of the Lender and encumbering the Property; and WHEREAS, the Mortgage has been filed of record in the Office of the County Recorder and Registrar of Titles of Dakota County, Minnesota concurrently herewith; and WHEREAS, the Lender has required, as an express condition to entering into the Loan Agreement, that the Redeveloper assign its rights under the Development Agreement and the TIF Note to the Lender to secure the obligations of the Redeveloper under the Note, the Loan Agreement and the Mortgage, and that certain rights of the EDA under the Development Agreement be subordinated to the Mortgage. Page 16 of 51 NOW, THEREFORE, in consideration of the recitals set forth above and incorporated herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Redeveloper hereby agrees as follows: 1. Capitalized terms used herein but not otherwise defined herein shall have the meaning set forth in the Loan Agreement. 2. The Redeveloper hereby assigns to the Lender all of its right, title and interest in and to the Development Agreement, including without limitation all rights to payment and/or reimbursement from the EDA, as set forth in the Development Agreement, and the TIF Note, including, but not limited to, the right to receive payments under the TIF Note, together with all documents and agreements attached as exhibits thereto, and all amendments, addenda and modifications thereof, whether made now or hereafter, to secure the obligations of the Redeveloper under the Note, the Loan Agreement and the Mortgage. The Redeveloper shall execute and deliver to the Lender an endorsement to the TIF Note, all to be held by the Lender pursuant to the terms of this Agreement. 3. The Redeveloper hereby represents and warrants that there have been no prior assignments of its rights under the Development Agreement and the TIF Note (other than to Lender), that the Development Agreement and the TIF Note are valid and enforceable agreements, that neither the EDA nor the Redeveloper is in default thereunder and that all covenants, conditions and agreements have been performed as required therein, except those not to be performed until after the date hereof. The Redeveloper agrees not to sell, assign, pledge, mortgage or otherwise transfer or encumber its interest in the Development Agreement and the TIF Note as long as this Assignment is in effect. The Redeveloper hereby irrevocably constitutes and appoints the Lender as its attorney-in-fact to demand, receive and enforce the Redeveloper’s rights under the Development Agreement and the TIF Note for and on behalf of and in the name of the Redeveloper or, at the option of the Lender, in the name of the Lender, with the same force and effect as the Redeveloper could do if this Assignment had not been made. 4. This Assignment shall constitute a perfected, absolute and present assignment, provided that the Lender shall have no right under this Assignment to enforce the provisions of the Development Agreement or exercise any rights or remedies under this Assignment until an Event of Default shall occur and be continuing. To perfect the Lender’s security interest in the TIF Note, upon satisfaction of all conditions under the Development Agreement to the issuance of the TIF Note, the EDA shall endorse and issue the TIF Note directly to the Lender, and send the original thereof to the address set forth in Section 12 hereof. Page 17 of 51 5. Upon the occurrence of an Event of Default, without affecting any of the Lender’s rights or remedies against the Redeveloper under any other instrument or agreement, the Redeveloper shall be deemed to have irrevocably appointed the Lender as the Redeveloper’s attorney-in-fact to exercise any or all of the Redeveloper’s rights in, to and under this Assignment and to give appropriate receipts, releases and satisfactions on behalf of the Redeveloper in connection with the performance by any party to the Development Agreement and to do any or all other acts in the Redeveloper’s name or in the Lender’s own name that the Redeveloper could do under the Development Agreement with the same force and effect as if this Assignment had not been made. In addition, the Lender shall have the right to exercise and enforce any and all rights and remedies available after a default to a secured party under the Uniform Commercial Code as adopted in the State of Minnesota. If notice to the Redeveloper of any intended disposition of collateral or of any intended action as required by law in any particular instance, such notice shall be deemed commercially reasonable if given in writing at least ten (10) days prior to the intended disposition or other action. The Redeveloper hereby authorizes the Lender to deliver a copy of this Assignment to any other party to the Development Agreement to verify the rights granted to the Lender hereunder. The EDA is authorized and directed by the Redeveloper to tender performance of its obligations under the Development Agreement to the Lender upon presentation of a copy of this Assignment. 6. The EDA hereby consents and agrees to the terms and conditions of this Assignment; provided, however, that this consent shall not deprive the EDA of or otherwise limit any of the EDA’s rights or remedies under the Development Contract and TIF Note and shall not relieve the Redeveloper of any of its obligations under the Development Contract and TIF Note; provided further, however, the limitations to the EDA’s consent contained in this Section are subject to the provisions of Section 9 below. The EDA further represents and warrants to the Lender that, as of the date of this Assignment, the Development Agreement is a valid agreement enforceable in accordance with its terms, that neither the EDA nor the Redeveloper is in default hereunder and that all covenants, conditions and agreements have been performed as required therein, except those not to be performed until after the date thereof. 7. The EDA agrees to make commercially reasonable efforts to provide the Lender with copies of any notice of default given under the Development Agreement, provided that any failure to provide such notice will not in any way invalidate the notice of default or prejudice the rights of the EDA related to the default. The EDA further agrees that the Lender shall have the right, but not the obligation, to cure any default under the Development Agreement within the time period set forth in the Development Agreement. 8. The Redeveloper and the EDA hereby agree that they will not make any amendment or modification to the Development Agreement or the TIF Note that in any way affects the Project without the Lender’s written consent. 9. The EDA acknowledges that the obligations of the Redeveloper, and the rights of the EDA under the Development Agreement shall, in all respects, be subject and subordinate to the rights of the Lender under the Mortgage; provided, however, that nothing herein shall be construed as subordinating the requirement contained in the Development Contract that the Property be used in accordance with the provisions of Section 10.1 of the Development Contract, or as subordinating the EDA’s rights under the TIF Note to suspend or terminate payments in accordance with the Development Contract and TIF Note. Page 18 of 51 10. This Assignment can be waived, modified, amended, terminated or discharged only explicitly in a writing signed by the Lender. A waiver by the Lender shall be effective only in the specific instance and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any of the Lender’s rights or remedies hereunder. All rights and remedies of the Lender shall be cumulative and shall be exercised singularly or concurrently, at the Lender’s option, and any exercise or enforcement of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other. 11. Nothing in this Agreement shall alter, remove or affect Lender’s obligation under Minnesota Statutes, § 469.029 to use the Property in conformity to Section 10.1 of the Development Contract. 12. The EDA agrees that in the event the Lender, transferee of Lender, or a purchaser at foreclosure sale, acquires title to the Property pursuant to a foreclosure, or a deed in lieu thereof, the Lender, transferee, or purchaser shall not be bound by the terms and conditions of the Development Contract except as expressly herein provided. Further the EDA agrees that in the event the Lender, a transferee of Lender, or a purchaser at foreclosure sale acquires title to the Property pursuant to a foreclosure sale or a deed in lieu thereof, then the Lender, transferee, or purchaser shall be entitled to all rights conferred upon the Redeveloper under the Development Contract, provided that no condition of default exists and remains uncured beyond applicable cure periods in the obligations of the Redeveloper under the Development Contract. 13. Any notice, request, demand or other communication hereunder shall be deemed duly given if delivered or postage prepaid, certified or registered, addressed to the party as set forth below: If to the EDA: Economic Development Authority of the City of Farmington, Minnesota Attention: Executive Director 430 Third Street Farmington, Minnesota 55024 With a copy to: Andrea McDowell Poehler CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 If to the Redeveloper: Ten Nineteen – Farmington LLC Attention: James O. Rasmussen 23350 County Road 10 Corcoran, Minnesota 55357 Page 19 of 51 Ebert Companies Attention: Greg Hayes 23350 County Road 10 Corcoran, Minnesota 55357 If to the Lender: Old National Bank Attention: Jason Torke 10710 Town Square Drive NE Blaine, Minnesota 55449 14. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. IN WITNESS WHEREOF, the Redeveloper has caused this Assignment to be duly executed as of July __, 2023. 13930.375 26570459v2 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Page 20 of 51 [SIGNATURE PAGE TO COLLATERAL ASSIGNMENT AND SUBORDINATION OF CONTRACT FOR PRIVATE REDEVELOPMENT AND TIF NOTE] EDA: ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA, a public body corporate and politic under the laws of the State of Minnesota By: Name: Its: Chairperson By: Deanna Kuennen Its: Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2023, by ________________, the ________________ of the Economic Development Authority of the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, for and on behalf of said public body corporate and politic. Notary Public STATE OF MINNESOTA ) ) ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2023, by Deanna Kuennen, the Executive Director of the Economic Development Authority of the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, for and on behalf of said public body corporate and politic. Page 21 of 51 Notary Public Page 22 of 51 [SIGNATURE PAGE TO COLLATERAL ASSIGNMENT AND SUBORDINATION OF CONTRACT FOR PRIVATE REDEVELOPMENT AND TIF NOTE] REDEVELOPER: TEN NINETEEN - FARMINGTON LLC, a Minnesota limited liability company By: Markus Ebert Its President STATE OF MINNESOTA ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this ____ day of July, 2023, by Markus Ebert, the President of Ten Nineteen - Farmington LLC, a Minnesota limited liability company, for and on behalf of the limited liability company. Notary Public Page 23 of 51 [SIGNATURE PAGE TO COLLATERAL ASSIGNMENT AND SUBORDINATION OF CONTRACT FOR PRIVATE REDEVELOPMENT AND TIF NOTE] LENDER: OLD NATIONAL BANK, a national banking association By: Jason Torke Its: Commercial Real Estate Executive STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2023, by Jason Torke, a Commercial Real Estate Executive of Old National Bank, a national banking association, for and on behalf of the national banking association. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Winthrop & Weinstine, P.A. (TJK) 225 South Sixth Street, Suite 3500 Minneapolis, Minnesota 55402-4629 Page 24 of 51 Page 25 of 51 227037v1 EXHIBIT A (Legal Description) [To be inserted from final proforma policy] Page 26 of 51 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Stephanie Aman, Economic Development Coordinator Department: EDA Subject: Approval of Micro Grant for Heikkila Studios - R05-23 Meeting: Economic Development Authority - Jul 17 2023 INTRODUCTION: At the March 20, 2023 meeting, the Farmington EDA approved and directed staff to create a new Micro Grant program for Farmington businesses. Staff worked with legal and created the appropriate documents including guidelines, application, and agreements and opened applications as planned on June 1, 2023. Included in the marketing of this program was a postcard sent to nearly 500 businesses, door to door visits with open downtown businesses, social media posts in the Farmington business group, website presence, and conversations at networking events with Farmington businesses and economic development partners. DISCUSSION: Heikkila Studios has applied for $2,500 in matching grant funding from the EDA Micro Grant program. The EDA considered this application in June and decided to continue the topic to the July meeting, directing staff to clarify and gather more information. Staff has completed the requested work from the EDA including having the Building Official review the proposed plans and confirm that they would meet the guidelines needed for cement work and replacement. The Public Works Director also clarified what permitting would need to be obtained (an obstruction right of way permit); that information was communicated to the applicant. Staff received a statement from the applicant that demonstrates how the business believes they would benefit from this requested matching grant funding. Additionally, staff sought clarification from legal counsel regarding the EDA's concern for the adjacent buildings if the project work uncovers unseen issues. Staff is satisfied, based on legal counsel interpretation, that the Micro Grant agreement that all applicants sign prior to disbursement of funds protects the EDA. The EDA would be held harmless to any future claims from any business receiving these EDA program funds for any additional work above and beyond the scope of the prop osed project. BUDGET IMPACT: $2,500.00 Page 27 of 51 ACTION REQUESTED: Approve R05-23 granting a Micro Grant to Heikkila Studios. ATTACHMENTS: EDA Resolution R05-23 Heikkila MicroGrant App and Response - 2500 Page 28 of 51 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. R05-23 A RESOLUTION APPROVING MICRO GRANT FUNDING TO HEIKKILA STUDIOS FOR CERTAIN BUSINESS IMPROVEMENTS. WHEREAS, the City of Farmington Economic Development Authority and City Council has identified business growth as a priority pillar; and WHEREAS, the City of Farmington Economic Development Authority has created a new Micro Grant program, allocating twenty-five thousand dollars ($25,000.00) of their budget, to support projects that enhance and expand small businesses; and WHEREAS, the Farmington EDA has agreed to award grant funds up to half of the estimated costs for eligible projects to businesses, not to exceed two thousand five hundred and no dollars ($2,500.00); and WHEREAS, on June 16, 2023, Pam Heikkila of Heikkila Studios (Grantee) applied for a $2,500.00 Micro Grant through the Farmington Economic Development Authority Micro Grant program; and WHEREAS, the Grantee has presented eligible estimates or bids for new cement in the alleyway to beautify the area between the buildings and create a desirable space for photography (Project) that total $5,387.00; and WHEREAS, the Grantee agrees to obtain all required and necessary permits to perform the work for which the Micro Grant funds were requested; and NOW, THEREFORE, BE IT RESOLVED: 1. The Farmington EDA hereby approves the attached Micro Grant Agreement attached hereto as Exhibit A. 2. Upon execution of the Micro Grant Agreement, the Farmington EDA staff may distribute to Pam Heikkila of Heikkila Studios a Micro Grant in the amount of $2,500.00. 3. The President and Executive Director are authorized and directed to execute all documents and take all appropriate measures to distribute the Micro Grant pursuant to the Agreement. Page 29 of 51 Adopted by the Farmington Economic Development Authority of the City of Farmington, Minnesota, this 17th day of July, 2023. ATTEST: ____________________________ ______________________________ Steve Wilson, President Deanna Kuennen, Executive Director Page 30 of 51 Page 31 of 51 Page 32 of 51 Page 33 of 51 Page 34 of 51 Page 35 of 51 Page 36 of 51 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community Dev Director Department: EDA Subject: Recommending a 2024 Property Tax Levy for the Farmington Economic Development Authority (EDA) Meeting: Economic Development Authority - Jul 17 2023 INTRODUCTION: At the June EDA Meeting, the EDA reviewed a preliminary 2024 work plan, associated budget, and EDA levy request. The EDA agreed to move forward with establishing an EDA levy. The first step in that process is to pass a resolution requesting that the City Council implement a levy in the proposed 2024 budget. DISCUSSION: Over the last few months, the EDA has been discussing the potential of requesting an EDA levy as part of the 2024 budget, to generate funding specific for economic development purposes. At the June meeting, Staff presented a proposed work plan that illustrated how a levy would be used to further the economic development efforts, initiatives, and momentum currently underway. The EDA discussed the proposed work plan and associated budget, and gave permission to move forward with the steps necessary to request the EDA levy. Based on the EDA's direction, Staff worked with legal counsel to begin the EDA levy process. Minnesota State Statutes regulate the maximum amount that can be levied (0.01813% of the City's taxable market value) and the process to request that the City Council consider including the request as part of the City's overall budget and levy limit. The steps include: 1. The EDA pass a resolution recommending that a specific amount be included as part of the 2024 tax levy, for EDA purposes. This can be no more than 0.01813% of the City's taxable market value. 2. The City Council will consider a resolution stating the proposed levy and noticing for a public hearing. 3. A public hearing will be noticed . 4. The City Council hold a public hearing two- to four-weeks after the public hearing is first notices. 5. The City Council decides whether to take no action or adopt a resolution authorizing the proposed levy. 6. If authorized, the City adopts and certifies a proposed levy on or before September 30, and adopts and certifies a final levy on or before December 20. Page 37 of 51 The attached resolution for consideration specifically recommends a 2024 tax levy of $150,000 for EDA purposes. This amount would significantly enhance the economic development efforts, while still being well below the maximum levy allowable ($524,687 base d on the 2023 taxable market value). BUDGET IMPACT: No 2023 budget impacts. ACTION REQUESTED: Consider Resolution R07-23, Resolution Requesting 2024 Economic Development Authority Levy. ATTACHMENTS: MEMO - EDA Levy Process - CampbellKnutson R07-23 APPROVING EDA_Levy Request 2024 Budget Page 38 of 51 1 224859v1 M E M O R A N D U M FROM: CITY ATTORNEY TO: FARMINGTON DATE: JULY 17, 2023 RE: EDA LEVY PROCESS INTRODUCTION City staff requested additional information about the legal process behind developing an Economic Development Authority levy. Below is a summary overview of the steps required for instituting such a levy. BACKGROUND The EDA Act Minn. Stat. §§469.090 to 469.1082 gives certain powers to economic development authorities within a city. The EDA itself has no power to implement an EDA levy. Such a levy is part of the City’s budgeting process and any levy would count towards the City’s overall levy limits. The EDA, on its own powers, does not have the ability to independently set a levy. However, in some situations, EDAs may concoct a different levy if the EDA also has the powers of a Housing and Redevelopment Authority. To institute an EDA levy without HRA powers, the EDA may ask the City Council to institute a tax for the benefit of the EDA. This is done with an EDA resolution. The City Council then considers this request and determines whether such a levy will have a place in the City’s overall budget and levy limit. Minn. Stat. §469.107. The maximum amount for such a levy is 0.01813% of the City’s taxable market value. If such a levy is authorized by the Council and certified by the county auditor, the EDA then benefits from a tax on all taxable property within the City. The EDA can use funds from this levy to pursue broad goals of economic development in the community within the purposes provided in the EDA Act. An EDA levy does not preclude the city from continuing to fund EDA activity through direct appropriations from the city’s general fund. There is no limit to the amount of funding that can be provided to an EDA through direct appropriation. STEPS TO ENACT EDA LEVY 1 To begin this process, the EDA must first request such a levy from the City Council. 1. EDA passes resolution requesting an EDA levy, levy can be no more than 0.01813% of the City’s taxable market value. 1 Cities should review enabling resolutions and EDA by-laws (if any exist) for special rules regarding EDA operations. Page 39 of 51 2 224859v1 a. Such a resolution can include the EDA’s overall budget as well. 2. Council considers the request as a feature of the City’s budget process. a. The City Council passes a resolution stating the proposed amount of the EDA levy. b. The City publishes the resolution together with a notice of public hearing on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of general circulation in the City. c. The City holds the meeting two to four weeks after the first publication. d. The City Council decides whether to take no action or adopt a resolution authorizing the proposed levy or a lower levy. e. City includes any EDA levy in all budgeting deadlines and truth in taxation notices, hearings, and processes. 3. City adopts and certifies a proposed levy on or before Sept. 30. 4. City adopts and certifies a final levy on or before five working days after December 20 in each year. 5. County Auditor certifies taxes. 6. City “pays” the EDA the appropriate amount of funds, to be spent by the EDA. RESOURCES MN DEED Economic Development Authority Handbook, October 2011, Pages 13-14. League of Minnesota Cities, Community Development and Redevelopment, Page 10. League of Minnesota Cities, Property Tax Levy, Pages 14-21. Minnesota Statutes Minn. Stat. ch. 469. Page 40 of 51 3 224859v1 FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY DAKOTA COUNTY, MINNESOTA EDA RESOLUTION NO. _______ RESOLUTION REQUESTING 2024 ECONOMIC DEVELOPMENT AUTHORITY LEVY WHEREAS, Minn. Stat. §469.107, Subdivision 1 provides that a City may, at the request of its Economic Development Authority (“EDA”), levy a tax each year upon all taxable property within the taxing district for the benefit of the EDA; and WHEREAS, Minn. Stat. §469.107, subd. 1 also limits this levy to no more than 0.01813 percent of the estimated market value of the taxing district; and WHEREAS, the EDA desires the City to implement a levy in the proposed 2024 Budget. NOW THEREFORE BE IT RESOLVED by the Economic Development Authority of the City of Farmington that it approves and recommends a 2024 tax levy of $__________ for EDA purposes. PASSED AND DULY ADOPTED by the Economic Development Authority of the City of Farmington, Minnesota, this ______ day of ___________________, 2023. FARMINGTON EDA By: ________________________________ Joshua Hoyt, _____________ ATTEST: ________________________________ Deanna Kuennen, Executive Director Page 41 of 51 4 224859v1 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA RESOLUTION NO. _______ RESOLUTION CERTIFYING THE 2024 PROPERTY TAX LEVY RECOMMENDED BY THE FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY (EDA) WHEREAS, Minn. Stat. §469.107, Subdivision 1 provides that a City may, at the request of its Economic Development Authority (“EDA”), levy a tax each year upon all taxable property within the taxing district for the benefit of the EDA; and WHEREAS, Minn. Stat. §469.107, subd. 1 also limits this levy to no more than 0.01813 percent of the estimated market value of the taxing district; and WHEREAS, on __________, 2023 the EDA approved and recommend a 2024 tax levy of $________ in EDA Resolution ______ to financially support the EDA’s Budget; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Farmington that it approves and certifies a 2024 EDA special tax levy of $__________. PASSED AND DULY ADOPTED by the City Council of the City of Farmington, Minnesota, this ______ day of ___________________, 2023. CITY OF FARMINGTON By: ________________________________ Joshua Hoyt, Mayor ATTEST: ________________________________ Lynn Gorski, City Administrator Page 42 of 51 Document Number: 227208 FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY DAKOTA COUNTY, MINNESOTA EDA RESOLUTION NO. R07-23 RESOLUTION REQUESTING 2024 ECONOMIC DEVELOPMENT AUTHORITY LEVY WHEREAS, Minn. Stat. §469.107, Subdivision 1 provides that a City may, at the request of its Economic Development Authority (“EDA”), levy a tax each year upon all taxable property within the taxing district for the benefit of the EDA; and WHEREAS, Minn. Stat. §469.107, subd. 1 also limits this levy to no more than 0.01813 percent of the estimated market value of the taxing district; and WHEREAS, the EDA desires the City to implement a levy in the proposed 2024 Budget. NOW THEREFORE BE IT RESOLVED by the Economic Development Authority of the City of Farmington that it approves and recommends a 2024 tax levy of $150,000.00 for EDA purposes. PASSED AND DULY ADOPTED by the Economic Development Authority of the City of Farmington, Minnesota, this 17th day of July, 2023. FARMINGTON EDA By: ________________________________ Steve Wilson, Chair ATTEST: ________________________________ Deanna Kuennen, Executive Director Page 43 of 51 1 224859v1 M E M O R A N D U M FROM: CITY ATTORNEY TO: FARMINGTON DATE: JULY 17, 2023 RE: EDA LEVY PROCESS INTRODUCTION City staff requested additional information about the legal process behind developing an Economic Development Authority levy. Below is a summary overview of the steps required for instituting such a levy. BACKGROUND The EDA Act Minn. Stat. §§469.090 to 469.1082 gives certain powers to economic development authorities within a city. The EDA itself has no power to implement an EDA levy. Such a levy is part of the City’s budgeting process and any levy would count towards the City’s overall levy limits. The EDA, on its own powers, does not have the ability to independently set a levy. However, in some situations, EDAs may concoct a different levy if the EDA also has the powers of a Housing and Redevelopment Authority. To institute an EDA levy without HRA powers, the EDA may ask the City Council to institute a tax for the benefit of the EDA. This is done with an EDA resolution. The City Council then considers this request and determines whether such a levy will have a place in the City’s overall budget and levy limit. Minn. Stat. §469.107. The maximum amount for such a levy is 0.01813% of the City’s taxable market value. If such a levy is authorized by the Council and certified by the county auditor, the EDA then benefits from a tax on all taxable property within the City. The EDA can use funds from this levy to pursue broad goals of economic development in the community within the purposes provided in the EDA Act. An EDA levy does not preclude the city from continuing to fund EDA activity through direct appropriations from the city’s general fund. There is no limit to the amount of funding that can be provided to an EDA through direct appropriation. STEPS TO ENACT EDA LEVY 1 To begin this process, the EDA must first request such a levy from the City Council. 1. EDA passes resolution requesting an EDA levy, levy can be no more than 0.01813% of the City’s taxable market value. 1 Cities should review enabling resolutions and EDA by-laws (if any exist) for special rules regarding EDA operations. Page 44 of 51 2 224859v1 a. Such a resolution can include the EDA’s overall budget as well. 2. Council considers the request as a feature of the City’s budget process. a. The City Council passes a resolution stating the proposed amount of the EDA levy. b. The City publishes the resolution together with a notice of public hearing on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of general circulation in the City. c. The City holds the meeting two to four weeks after the first publication. d. The City Council decides whether to take no action or adopt a resolution authorizing the proposed levy or a lower levy. e. City includes any EDA levy in all budgeting deadlines and truth in taxation notices, hearings, and processes. 3. City adopts and certifies a proposed levy on or before Sept. 30. 4. City adopts and certifies a final levy on or before five working days after December 20 in each year. 5. County Auditor certifies taxes. 6. City “pays” the EDA the appropriate amount of funds, to be spent by the EDA. RESOURCES MN DEED Economic Development Authority Handbook, October 2011, Pages 13-14. League of Minnesota Cities, Community Development and Redevelopment, Page 10. League of Minnesota Cities, Property Tax Levy, Pages 14-21. Minnesota Statutes Minn. Stat. ch. 469. Page 45 of 51 3 224859v1 FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY DAKOTA COUNTY, MINNESOTA EDA RESOLUTION NO. _______ RESOLUTION REQUESTING 2024 ECONOMIC DEVELOPMENT AUTHORITY LEVY WHEREAS, Minn. Stat. §469.107, Subdivision 1 provides that a City may, at the request of its Economic Development Authority (“EDA”), levy a tax each year upon all taxable property within the taxing district for the benefit of the EDA; and WHEREAS, Minn. Stat. §469.107, subd. 1 also limits this levy to no more than 0.01813 percent of the estimated market value of the taxing district; and WHEREAS, the EDA desires the City to implement a levy in the proposed 2024 Budget. NOW THEREFORE BE IT RESOLVED by the Economic Development Authority of the City of Farmington that it approves and recommends a 2024 tax levy of $__________ for EDA purposes. PASSED AND DULY ADOPTED by the Economic Development Authority of the City of Farmington, Minnesota, this ______ day of ___________________, 2023. FARMINGTON EDA By: ________________________________ Joshua Hoyt, _____________ ATTEST: ________________________________ Deanna Kuennen, Executive Director Page 46 of 51 4 224859v1 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA RESOLUTION NO. _______ RESOLUTION CERTIFYING THE 2024 PROPERTY TAX LEVY RECOMMENDED BY THE FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY (EDA) WHEREAS, Minn. Stat. §469.107, Subdivision 1 provides that a City may, at the request of its Economic Development Authority (“EDA”), levy a tax each year upon all taxable property within the taxing district for the benefit of the EDA; and WHEREAS, Minn. Stat. §469.107, subd. 1 also limits this levy to no more than 0.01813 percent of the estimated market value of the taxing district; and WHEREAS, on __________, 2023 the EDA approved and recommend a 2024 tax levy of $________ in EDA Resolution ______ to financially support the EDA’s Budget; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Farmington that it approves and certifies a 2024 EDA special tax levy of $__________. PASSED AND DULY ADOPTED by the City Council of the City of Farmington, Minnesota, this ______ day of ___________________, 2023. CITY OF FARMINGTON By: ________________________________ Joshua Hoyt, Mayor ATTEST: ________________________________ Lynn Gorski, City Administrator Page 47 of 51 Document Number: 227208 FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY DAKOTA COUNTY, MINNESOTA EDA RESOLUTION NO. R07-23 RESOLUTION REQUESTING 2024 ECONOMIC DEVELOPMENT AUTHORITY LEVY WHEREAS, Minn. Stat. §469.107, Subdivision 1 provides that a City may, at the request of its Economic Development Authority (“EDA”), levy a tax each year upon all taxable property within the taxing district for the benefit of the EDA; and WHEREAS, Minn. Stat. §469.107, subd. 1 also limits this levy to no more than 0.01813 percent of the estimated market value of the taxing district; and WHEREAS, the EDA desires the City to implement a levy in the proposed 2024 Budget. NOW THEREFORE BE IT RESOLVED by the Economic Development Authority of the City of Farmington that it approves and recommends a 2024 tax levy of $150,000.00 for EDA purposes. PASSED AND DULY ADOPTED by the Economic Development Authority of the City of Farmington, Minnesota, this 17th day of July, 2023. FARMINGTON EDA By: ________________________________ Steve Wilson, Chair ATTEST: ________________________________ Deanna Kuennen, Executive Director Page 48 of 51 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community Dev Director Department: EDA Subject: Director's Report Meeting: Economic Development Authority - Jul 17 2023 INTRODUCTION: The following highlights recent and ongoing economic development activities. DISCUSSION: June 2023 Summary: BUDGET IMPACT: Not applicable ACTION REQUESTED: No action requested. This report is for informational purposes only. Staff is available to provide additional details and answer any questions. ATTACHMENTS: Directors Report 07-2023 meeting Page 49 of 51 Reporting Period: June 2023 DIRECTOR’S REPORT – providing project highlights and a summary of economic development activity. Projects • Ebert Apartments o All approvals complete o Developers closed on property in May. o Staff submitted RIG grant application ($250,000) o Construction is planned to commence in early September. • Community Vision/Comprehensive Plan Update - HKGi o Community Engagement underway  Farmington Vision | Social Pinpoint (mysocialpinpoint.com)  Police Open House, Music in the Park, Dew Days  Draft Vision Statement being prepared. • Business View Magazine – June/July issue o Farmington is one of four communities to be featured. • Transit/Transportation Option o Will be scheduling open house/workshop with industrial businesses. • Micro Grant o Program launched on June 1, 2023 o Additional marketing of program underway Prospects ONGOING • Project LOOP – 25 acres, FDI – no update • Project Wendy – 15-30 acres, biotechnology manufacturing – no update • Project Tulip – 60-100 acres, biopharma – NEW/MODIFIED • Other – 60 acres – project scope changed – now seeking 30-60 acres. Additional sites submitted. • Oppidan prospect – 200+ acres – information provided along with property owner information. • Project Margarita – 40+ acres, greenfield sites, heavy utility user – site(s) submitted. • Project Nacho – light industrial project, 200 acres – site(s) submitted. • Project Synergy – food manufacturing, 20-40+ acres – site(s) submittal being prepared. NO SUBMISSION OF SITES • Business Visits • TBD – in process of developing BRE program Page 50 of 51 Meetings MF HOUSING DEVELOPERS • Hamilton Real Estate • Vishal Dutt • Alatus BROKERS • ARISE Development • Appro/Cerron • Noor Companies DEVELOPMENT PARTNERS • Krueger Real Estate Advisors • Cuningham • The Brookshire Company Other • Booth, MN Real Estate Journal Mid-Year Apartment Summit • Booth, MN Real Estate Journal Mid-Year Forecast Summit • Booth/Speaker, MN Real Estate Journal Southeast Metro Development Summit (sponsored by CDA) • EDA Levy – working with legal to follow process to request an EDA levy as part of 2024 budget process. Additional actions by the EDA and City Council are required. • 2024 Work Plan refinement • Economic Development Association of MN – Summer Conference • Page 51 of 51