HomeMy WebLinkAbout08.21.23 EDA Packet
Meeting Location:
Farmington City Hall, Conference
Room 170
430 Third Street
Farmington, MN 55024
ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA
Monday, August 21, 2023
5:30 PM
Page
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVE AGENDA
5. CITIZEN COMMENTS
6. CONSENT AGENDA
6.1. Minutes of Economic Development Authority Meeting July 17, 2023
Approve the minutes of the July 17, 2023 Economic Development
Authority meeting.
Agenda Item: Minutes of Economic Development Authority Meeting July
17, 2023 - Pdf
3 - 7
6.2. Monthly Financial Statement
Accept the Monthly Financial Statement for the EDA.
Agenda Item: Monthly Financial Statement - Pdf
8 - 9
6.3. Open to Business - Q2 Report, 2023
No action required. This report is provided for informational purposes
only.
Agenda Item: Open to Business - Q2 Report, 2023 - Pdf
Dakota County OTB Narrative Report - Q2 2023
10 - 26
7. PUBLIC HEARINGS
8. DISCUSSION ITEMS
Page 1 of 36
8.1. Approval of Micro Grant for The Pam McCarthy Agency Inc - R08-23
Approve R08-23 allocating $2,500.00 of the EDA Micro Grant Program
funds to The Pam McCarthy Agency Inc.
Agenda Item: Approval of Micro Grant for The Pam McCarthy Agency
Inc - R08-23 - Pdf
27 - 32
8.2. Understanding tools and available land for Economic Development
No action required.
Agenda Item: Understanding tools and available land for Economic
Development - Pdf
33
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
34 - 36
10. ADJOURN
Page 2 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Shirley Buecksler, City Clerk
Department: Administration
Subject: Minutes of Economic Development Authority Meeting July 17, 2023
Meeting: Economic Development Authority - Aug 21 2023
INTRODUCTION:
For the Commission's review and approval are the minutes of the July 17, 2023 Economic
Development Authority meeting.
DISCUSSION:
Not applicable
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
Approve the minutes of the July 17, 2023 Economic Development Authority meeting.
ATTACHMENTS:
07.17.23 EDA Minutes
Page 3 of 36
City of Farmington
Economic Development Authority
Regular Meeting Minutes
Monday, July 17, 2023
The Farmington Economic Development Authority met in regular session on Monday,
July 17, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota.
1. CALL TO ORDER
Chair Wilson called the meeting to order at 4:30 p.m.
2. PLEDGE OF ALLEGIANCE
Chair Wilson lead everyone in the Pledge of Allegiance.
3. ROLL CALL
Members Present: Chair Steve Wilson
Commissioners Holly Bernatz, Joshua Hoyt,
Nick Lien, and Katie Porter
Members Absent: None
Also Present: Lynn Gorski, City Administrator
Julie Flaten, Asst City Administrator/HR Director
Deanna Kuennen, Community Development Director/EDA
Executive Director
Stephanie Aman, Economic Development Coordinator
John Powell, Public Works Director
Shirley Buecksler, City Clerk
Kara Hildreth, Editor – Dakota County Tribune
4. APPROVE AGENDA
Motion was made by Commissioner Bernatz and seconded by Commissioner Lien to
approve the agenda, as presented.
Motion carried: 5 ayes / 0 nays.
5. CITIZEN COMMENTS
No one addressed the Commission to speak.
6. CONSENT AGENDA
6.1 Economic Development Authority Meeting Minutes of June 26, 2023
6.2 Monthly Financial Statement
Motion was made by Commissioner Hoyt and seconded by Commissioner Bernatz
to approve the Consent Agenda, as amended.
Motion carried: 5 ayes / 0 nays.
Page 4 of 36
Economic Development Authority Minutes
July 17, 2023
Page 2 of 4
7. PUBLIC HEARINGS
There were no public hearings.
8. DISCUSSION ITEMS
8.1 Approve Collateral Assignment and Subordination of Contract and TIF Note for
Private Development
Staff provided context for the item, stating that on June 8, 2023, the EDA entered
into a Contract for Private Development with Ten Nineteen Development LLC
pertaining to the construction of a 74-unit multifamily apartment project located
at 310 3rd Street. Since then, Ten Nineteen Development LLC has assigned its
interested in the Contract for Private Development to Ten Nineteen – Farmington
LLC, the redeveloper has secured a construction loan, and now the lender is
requiring as a condition of the loan, that the redeveloper assign its rights under
the Contract for Private Development to the lender, and that certain rights of the
EDA under the Contract for Private Development be subordinated to the
mortgage. Legal counsel has reviewed the Collateral Assignment and
Subordination of Contract for financing the project and prepared a resolution for
consideration. The collateral assignment and subordination requests are
common. All the necessary language has been incorporated into the documents
to protect the EDA and the EDA’s interests.
Motion was made by Commissioner Porter and seconded by Commissioner Hoyt
to adopt EDA Resolution No. R06-23 Approving Collateral Assignment and
Subordination of Contract and TIF Note for Private Development.
Motion carried: 5 ayes / 0 nays.
8.2 Approval of Micro Grant for Heikkila Studios – R05-23
Heikkila Studios has applied for $2,500 in matching grant funding from the EDA
Micro Grant program. The EDA considered this application in June and decided
to continue the topic to the July meeting, directing Staff to clarify and gather more
information.
Staff completed the requested work from the EDA including having the Building
Official review the proposed plans and confirm that they would meet the
guidelines needed for cement work and replacement. The Public Works Director
also clarified what permitting would need to be obtained (an obstruction
right-of-way permit); this information was communicated to the Applicant. Staff
received a statement from the Applicant that demonstrates how the business
believes they would benefit from this requested matching grant funding.
Additionally, Staff sought clarification from legal counsel regarding the EDA’s
concern for the adjacent buildings if the project work uncovers unseen issues.
Staff is satisfied, based on legal counsel interpretation, that the Micro Grant
Page 5 of 36
Economic Development Authority Minutes
July 17, 2023
Page 3 of 4
agreement that all applicants sign prior to disbursement of funds protects the
EDA. The EDA would be held harmless to any future claims from any business
receiving these EDA program funds for any additional work above and beyond
the scope of the proposed project.
Motion was made by Commissioner Hoyt and seconded by Commissioner Porter
to adopt EDA Resolution No. R05-23 Approving Micro Grant Funding to Heikkila
Studios for Certain Business Improvements.
Motion carried; 5 ayes / 0 nays.
8.3 Recommending a 2024 Property Tax Levy for the Farmington Economic
Development Authority (EDA)
At the June EDA Meeting, the EDA reviewed a preliminary 2024 work plan,
associated budget, and EDA levy request. The EDA agreed to move forward with
establishing an EDA levy. Staff explained that the first step in that process is to
pass a resolution requesting that the City Council implement a levy in the
proposed 2024 budget.
Staff explained that based on the EDA's direction, Staff worked with legal counsel
to begin the EDA levy process. Minnesota State Statutes regulate the maximum
amount that can be levied (0.01813% of the City's taxable market value) and the
process to request that the City Council consider including the request as part of
the City's overall budget and levy limit. Staff identified that this is a multi-step
process, which includes:
1. The EDA pass a resolution recommending that a specific amount be included
as part of the 2024 tax levy, for EDA purposes. This can be no more than
0.01813% of the City's taxable market value.
2. The City Council is asked to consider a resolution stating the proposed levy
and notice for a public hearing.
3. A public hearing is noticed.
4. The City Council holds a public hearing two to four weeks after the public
hearing is first noticed.
5. The City Council decides whether to take no action or adopt a resolution
authorizing the proposed levy.
6. If authorized, the City adopts and certifies a proposed levy on or before
September 30, and adopts and certifies a final levy on or before December
20.
The resolution for consideration specifically recommends a 2024 tax levy of
$150,000 for EDA purposes. Staff suggested that this amount would significantly
enhance the economic development efforts, while still being well below the
maximum levy allowable ($524,687 based on the 2023 taxable market value).
Page 6 of 36
Economic Development Authority Minutes
July 17, 2023
Page 4 of 4
Motion was made by Commissioner Lien and seconded by Commissioner
Bernatz to adopt EDA Resolution No. R07-23 Requesting 2024 Economic
Development Authority Levy.
Motion carried: 5 ayes / 0 nays.
9. DIRECTOR’S REPORT
9.1 Director’s Report
Staff explained that a summary of current activity is included in the Director’s
Report. Discussion ensued with the EDA asking about what the most impactful
activity has been. The EDA also commented that they appreciate the “meet them
where they’re at” approach and they believe Staff has a well thought out
approach to the work.
10. ADJOURNMENT
Motion was made by Commissioner Lien and seconded by Commissioner Hoyt to
adjourn the meeting at 4:59 p.m.
Motion carried: 5 ayes / 0 nays.
Respectfully submitted,
Shirley R Buecksler
City Clerk
Page 7 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: Community Development
Subject: Monthly Financial Statement
Meeting: Economic Development Authority - Aug 21 2023
INTRODUCTION:
Attached is the monthly financial statement for the month of July 2023.
DISCUSSION:
Attached is the monthly financial statement for the month of July 2023. There are no unusual
expenses to report during this period.
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
Accept the Monthly Financial Statement for the EDA.
ATTACHMENTS:
EDA Monthly Financial Report - JULY
Page 8 of 36
CITY OF FARMINGTON
MONTHLY FINANCIAL REPORT
July 31, 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 1,600 616 3,499 1,558 218.69%(6,627)
Total Revenues 1,600 616 3,499 1,558 218.69%(6,627)
EXPENDITURES
Other Services & Charges 81,510 3,348 43,343 23,722 53.18%40,600
TOTAL EXPENDITURES 81,510 3,348 43,343 23,722 53.18%40,600
TRANSFERS 50,000 4,167 66,136 73,534 94,367
EXCESS (DEFICIENCY)(29,910)$ 1,435$ 26,292$ 51,370$ 47,140$
Cash Balance as of July 31, 2023 $242,780.
Page 9 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: Community Development
Subject: Open to Business - Q2 Report, 2023
Meeting: Economic Development Authority - Aug 21 2023
INTRODUCTION:
Open to Business is a partnership between Dakota County CDA, Dakota County cities, and the
Metropolitan Consortium of Community Developers (MCCD), that provides one -on-one business
counseling to current and prospect ive entrepreneurs. Natalie Mouilso is the assigned business
advisor to Dakota County, and she works with businesses free of charge, providing business
counseling, financial advice, and access to capital.
DISCUSSION:
Attached is the Q2 report for 2023, summarizing the business activities. Included is information on
the number of businesses served referral sources, outreach, and case studies.
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
No action required. This report is provided for informational purposes only.
ATTACHMENTS:
Dakota County OTB Narrative Report - Q2 2023
Page 10 of 36
Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390
Q2 2023 ending 6.30.2023
Clients Served YTD
Client Inquiry 3
Existing - Challenged 9
Existing -Opportunity 36
Pre-start planning 35
Start-up 19
Total 102
Business Owner Demographics YTD
Low-Income Owned 41
BIPOC or Immigrant Owned 48
Woman Owned 56
Financing & Access to Capital YTD
Approved (YRLY Total) $ 526,920.00
Equity (YRLY Total) $ 385,235.00
Facilitated (YRLY Total) $2,630,550.00
Program Hours
TA Program HRS
1st QTR 377.00 159
2nd QTR 271.00 213
Total 648.00 372
TA: Client Meetings, Providing Resources, Client Calls, Client Deliverables, Loan Packaging
Program HRS: City Initiatives, Program Outreach, Public Events, City Meetings, Research, Data/Admin, General Inquiries
Page 11 of 36
Dakota County Q2 Report 6.30.2023
2
Industry Segment YTD
Construction / Real Estate 2
Food 16
Health/Fitness 9
Manufacturing 2
Consulting 9
Retail 25
Service 27
Other/TBD 12
Total 102
Referral Source YTD
Bank Referral
8
Entrepreneur 5
Friends and Family 14
Municipality 33
MCCD Partner 9
Other 11
Web 22
Total 102
City YTD Business Resident
Apple Valley 9 6
Burnsville 9 7
Eagan 15 17
Farmington 11 12
Hastings 13 8
Inver Grove Heights 7 7
Lakeville 10 11
Mendota Heights 1 1
Rosemount 7 6
South St. Paul 2 5
West St. Paul 5 5
Other Dakota Co. 2 1
Other/ No Data 11 16
Page 12 of 36
Dakota County Q2 Report 6.30.2023
3
Direct Financing & Access to Capital
Business Type: Thai Grocery Store
Business Locations: Burnsville & South Saint Paul
Owner Residence: Woodbury
Referred by: Bank Partner & City of South Saint Paul
MCCD Financing: $125,000
Owner Equity: $125,000
Other Financing: $1,920,000
Overview: MCCD approved gap financing for a BIPOC-owned business expansion. The owners currently operate
a Thai grocery store in Burnsville and are expanding the business to include a new wholesale and distribution
business line with a second location in South Saint Paul to include extra storage for the grocery inventory as well
as a deli walk up window. The project is a ground up construction of a multitenant building which will include
space for two additional tenants. MCCD financing will be utilized for construction costs.
Business Type: Financial Advisory
Business Location: Hastings & Lakeville
Owner Residence: Lakeville
Referred by: Bank Partner
MCCD Financing: $204,000
Owner Equity: $46,000
Other Financing: $255,000
Overview: MCCD approved permanent term financing for a commercial real estate purchase by a growing
financial advisory business based in Lakeville with a second location in Hastings. The project was brought to
MCCD via a bank partner and the real estate transaction is part of a larger business expansion plan and
ownership transition for the Hastings location. The real estate purchase and eventual business purchase will
retain 6 full-time jobs and create 1 new full-time position.
Business Type: Hair Braiding Salon
Business Location: Eagan
Owner Residence: Eagan
Referred by: MCCD Community Partner
MCCD Financing: $25,000
Owner Equity: $21,000
Overview: MCCD approved financing for this immigrant owned start-up hair braiding salon business. The owner
has been working in the industry for nearly 10 years, always renting chairs at other salons, and splitting her
profits with the salon owner. With startup capital provided by MCCD she will be able to open her own space in
Eagan, expand her clientele, and build wealth for herself and her family. In addition to braiding services, the
salon will have two rental chairs available and will sell high-quality products that cater to the Black and African
community in the area.
Page 13 of 36
Dakota County Q2 Report 6.30.2023
4
Business Type: Adult Daycare Homes and Services
Business Locations: Business Office in Burnsville with homes owned in Inver Grove Heights (2), Apple Valley (1),
Farmington (1), Crystal (1), and newest location in New Hope (1)
Owners Residences: Eagan & Prior Lake
Referred by: Bank Partner
MCCD Financing: $37,200
Owner Equity: $37,200
Bank Financing: $297,600
Overview: MCCD partnered with Amplio and a local bank on this real estate transaction for a growing adult
daycare and homecare business. Our participation (which is considered equity by the SBA) at 10% of the total
project costs allowed the business owners to meet Amplio’s 20% equity requirement and retain much needed
working capital in the business. Through the real estate purchase, the owners are adding a new residential
home in New Hope, MN to the existing roster of home care facilities where the business operates throughout
the Twin Cities region. One of the business’s owners is Native American and the new location will create new
opportunities for the community of New Hope.
Business Type: Trucking
Business Location: Hastings
Owner Residence: Hastings
Referred by: Bank Partner
MCCD Financing: $25,000
Bank Financing: $44,450
Owner Equity: $16,545
Overview: MCCD approved financing for this startup transportation business. This industry veteran has worked
for decades driving trucks for other businesses. He finally took the leap to establish himself as an owner
operator in January 2023 when he approached his bank about his business idea. The bank referred him to OTB
to help with a business plan and financial projections. After a few months of planning the project was ready to
move forward in July. This new business will create one job for the business owner, who is a low-income
individual, and allow him the opportunity to build wealth for himself and his family.
“I’ve been in the trucking industry for 40+ years. I intend to keep working until I’m unable to and I look forward to
continuing to grow my new business. You’ve got to start some place and I started at the bottom. When I asked Royal
Credit Union about a loan to start a business as an owner-operator, they referred me to Open to Business. My advisor
Natalie Mouilso has been very upfront with me, helping with all the paperwork. Carrie Borgstrom from RCU did
excellent work as well. These two women are great, and I appreciate what they do. If anyone needs help with their
business they should give them a call, they will help you 100%!”
– MCCD Loan Client, Hastings MN
Page 14 of 36
Dakota County Q2 Report 6.30.2023
5
Business Type: Restaurant
Business Location & Owner Residence: Inver Grove Heights
Referred by: Community Outreach
MCCD Financing: $110,000
Partner Financing: $110,000
Owner Equity: $129,490
Overview: MCCD approved financing for this immigrant owned business expansion in Inver Grove Heights in July
2023. This full-service, family-owned Mexican restaurant has been a community staple in IGH since 2015 with a
solid local following. The business embarked on an expansion to a larger location in 2021 but due to unforeseen
costs and logistics, the project had been stalled for quite a while. Having exhausted their available funds, the
owners were stuck paying rent at both locations with a partially completed renovation. The business connected
with MCCD advisor Vicky Gonzalez in summer of 2022 at a community event and she worked tirelessly to find a
path forward for this family business, providing in-depth technical assistance and sound professional resources
to guide the clients through this period. MCCD brought in a non-profit lending partner and together the
organizations collaborated on the final funding package. The business has three existing employees and when
the expansion is complete, three new jobs will be created.
Credit Builder Loans
In collaboration with nonprofit partners who provide credit building & financial awareness counseling, MCCD provides
$240 Credit Builder Loans (CBLs) to qualified applicants seeking to improve their personal credit. Credit Builder
applicants complete financial training through MCCD’s partners and are then referred to MCCD for a CBL. MCCD
generates and services the CBLs in-house.
2023 Credit Builder Loans YTD
Resident City Loan Amount
Rosemount $240
West Saint Paul $240
West Saint Paul $240
TOTAL $720
Business Grants
Business Type: Driving School Business
Location: Apple Valley
Referred by: Google Search
MicroGrant: $3,500
Owner Equity: ~$10,000
Grant Application Facilitated by MCCD
Overview: This low-income, women business owner learned of the Open to Business program by searching
online for resources. After working as a driving instructor for a few years and falling in love with the work, this
entrepreneur recognized the opportunity to establish her own school. After pouring every spare dollar into the
startup costs, the business owner had a gap of ~$3,000 which MCCD was able to fill through a MicroGrant. The
grant covered the remaining costs for equipment, supplies, and technology. With the additional funding the
business owner opened her doors in June with a fully equipped classroom space. As the head of a household
with 6 children, this business owner is on the path to building a strong business and a successful future.
Page 15 of 36
Dakota County Q2 Report 6.30.2023
6
“Thank you to Natalie Mouilso and Open to Business for all the hard work and guidance as I embarked on the journey
of starting my own business. Natalie's expertise and advice are invaluable as she provided me with practical solutions
and suggestions that helped me navigate through the challenges of starting a business.”
– Grant Recipient, Apple Valley
Highlights, Networking, & Outreach
Funding & Policy Updates
• May 2023 – MN DEED’s Small Business Assistance Partnership Grant program sees significant funding increase
and is codified for years to come. After years of leadership on the Small Business Assistance Partnership Grant
program, MCCD was thrilled to see the program receive a one-time funding increase to $12.85 million (FY 24-25)
& $5.45 million minimum funding ongoing. The previous base funding of the program was $2.85 million. This
program is a competitive grant program at DEED that supports small business technical assistance. It has helped
supplement technical assistance work for small businesses around Minnesota for years. Along with codifying
the program this year, we added LGBTQ + as a targeted group and clarified that cooperatives and commercial
land trusts are eligible businesses that can be helped with this program.
• June 2023 – MCCD was formally approved as a partner lender for the State of Minnesota DEED Small Business
Loan Participation Program (“SBLPP”). The American Rescue Plan Act (ARPA) reauthorized and expanded the
State Small Business Credit Initiative (SSBCI) to provide $10 billion to support small businesses and improve
access to capital in the wake of the pandemic. As part of the SSBCI Application, DEED proposed the creation of
the SBLPP, which would provide small businesses with financial support through participation loans.
Staffing
• May 2023 -- MCCD’s CEO, Elena Gaarder, was honored at the Business Journal’s 2023 Women in Business
Awards & Expo. Elena and the other honorees were selected based on their outstanding professional
achievements, leadership qualities and community engagement.
Programming, Partnerships, & Trainings
• April 18 – In partnership with the UMN Law School, MCCD hosted the first Small Business Law Q&A webinar of
2023. As in past legal Q&As, legal experts provide transaction-based legal assistance to small businesses on a
variety of subject matters including entity formation, owner distributions, and commercial lease review. These
Q&As are a great opportunity for business owners and entrepreneurs to get free guidance on legal matters.
Watch the recording here.
• April 27 – MCCD staff completed a 4-part Racial Equity training. Through more than 16 hours of instruction and
discussion, the MCCD team learned about core racial equity concepts, communicating to advance racial equity,
and how to apply a racial equity lens to our community and economic development work.
• June 14 – The Open to Business team is prioritizing teambuilding this year and our first team event was a Twins
vs Brewers game together in June. A team retreat is slated for September where we will focus on strengthening
our relationships as a team along with mission and values development.
• June 29 – MCCD hosted experts from the Met Council who trained our staff on SAC Basics for Business and
Property Owners. The training provided a baseline of knowledge for our staff to advise clients on the process of
SAC determinations including submittals, contacts at the Met Council, and what programs may be available on
the local level to help.
Page 16 of 36
Dakota County Q2 Report 6.30.2023
7
Advertising & Outreach
• June 9 – Last year OTB rolled out Field Trip Friday where team members and community contacts support local
small businesses with a walking tour to highlight MCCD clients and projects. On June 9 we visited five businesses
in Hastings, MN, including Spiral Food Co-op and Geek Haven Coffee.
• Banker and lender outreach occurred specifically with Drake Bank, Merchants Bank, Minnwest Bank, Old
National Bank, Royal Credit Union, Think Bank, US Bank, and Vermillion Bank.
• Written or in-person presentations were made and/or networking efforts were made including City of Lakeville
& NEOO meeting on April 12, the Southeast Metro Development Summit on May 24, CDFI Women’s Network
event on June 1, Dakota County CDA mid-year presentation on June 8, West Saint Paul Open House on June 8,
Business Tour of Hastings on June 9, Rosemount Port Authority presentation on June 20. Regular/update
meetings occurred with the Workforce Development Board’s Business Services/Economic Development
Committee, the University of MN Law School, Dakota County CDA, the City of Farmington, and the City of Eagan,
the City of Hastings, the City of West Saint Paul, the City of South Saint Paul, the City of Mendota Heights, and
the City of Apply Valley Economic Development team as well as the Apple Valley Fire Inspector.
• MCCD’s new website is live. Check out our refreshed look at https://mccdmn.org/. The
www.opentobusinessmn.org site has been decommissioned and will redirect to our new site going forward.
• MCCD now has an easy way to subscribe to our newsletter. Complete the online form to get community
development updates on policy and advocacy, grant opportunities, small business resources, funding
opportunities, field building, small business resources, business highlights, and more!
• The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. New ads
will be created and updated periodically so keep checking back. The library was created to help streamline how
we share ads with partners and to give partners direct access to choose ads that meet their needs. Access the
Ad Library here.
Client Highlight
Deru Braiding & Hair Supply, Eagan, MN Established July 2023
“Natalie Mouilso at the Open to Business program has helped us through the difficult process of starting up my new
business: Deru Braiding & Hair Supply LLC. Prior to contacting the Open to Business Program, I have been working at my
sister’s salon for over 9 years. I envisioned opening my own hair braiding salon but not knowing how to make my wish a
reality. When my husband Daniel and I decided to finally start my own hair braiding salon, we were confused about the
steps we needed to make. We needed help, and we luckily found the Metropolitan Consortium of Community Developers.
We were connected to Natalie, and she led us through the entire business start-up. My Husband and I were not aware of
all the requirements that were essential, but Natalie provided us with many resources such as a step-by-step timeline,
business proposal template, and many contacts to make the store up-to-code. She supported us in obtaining the business
loan, answered all our questions and concerns (even when she was out of the office), and talked us through each step
until everything was finalized. My ambitious dream was made possible because of Natalie’s guidance, patience, and
sincerity about making Deru Braiding & Hair Supply LLC happen. We are extremely grateful for the Open to Business
Program and know this program will support more new businesses in the future. If someone can IMAGINE their business,
the Open to Business Program will EDUCATE, COUNSEL, and INSTRUCT you through the process. Thank you so much!”
-- Debrework ‘Deru’ Bezabehe and Daniel Estifanos
Page 17 of 36
Dakota County Q2 Report 6.30.2023
8
Daniel and Deru at the Grand Opening celebration.
Deru, family, and friends.
Page 18 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Stephanie Aman, Economic Development Coordinator
Department: Community Development
Subject: Approval of Micro Grant for The Pam McCarthy Agency Inc - R08-23
Meeting: Economic Development Authority - Aug 21 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, created th e appropriate
documents including guidelines, application, and agreements and opened applications on June 1,
2023, as planned.
DISCUSSION:
The Pam McCarthy Agency Inc, located at 402 3rd Street, has applied for $2,500.00 in matching
grant funding from the EDA Micro Grant program to execute a robust direct mail marketing campaign.
Pam from The Pam McCarthy Agency has provided data points to st aff to show the potential impact
that the marketing campaign could have to spur business, increase awareness of the agency's
offerings, and improve closing rates. While the data points provided need to remain confidential, staff
have reviewed the marketing plan and the data point explanation and see the benefit that the
marketing campaign could have for this business.
The business has provided documentation for the cost of the '3 touch program' to be $5,0006.40 and
this request meets the eligibility parameters for receiving the EDA Micro Grant funding.
BUDGET IMPACT:
$2,500.00
ACTION REQUESTED:
Approve R08-23 allocating $2,500.00 of the EDA Micro Grant Program funds to The Pam McCarthy
Agency Inc.
ATTACHMENTS:
EDA Resolution R08-23 - Approving Micro Grant The Pam McCarthy Agency - 2500
Pam McCarthy Agency_230724
Page 27 of 36
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF FARMINGTON
DAKOTA COUNTY
STATE OF MINNESOTA
RESOLUTION NO. R08-23
A RESOLUTION APPROVING MICRO GRANT FUNDING TO THE PAM
MCCARTHY AGENCY INC 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).
WHEREAS, on July 21, 2023, Pam McCarthy of The Pam McCarthy Agency, Inc.
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 a tiered marketing
direct mailing campaign that total $5,006.40.
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 McCarthy of The Pam McCarthy Agency, Inc. 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 28 of 36
Adopted by the Farmington Economic Development Authority of the City of Farmington,
Minnesota, this 21st day of August, 2023.
ATTEST:
____________________________ ______________________________
Steve Wilson, President Deanna Kuennen, Executive Director
Page 29 of 36
Farmington M ic ro Grant
1 / 3
Q1
Busines s name
The Pam Mc Carthy Agenc y Inc
Q2
Name and title of indiv idual apply ing
Pam Mc Carthy
Q3
Busines s Inform ation
Addres s 402 3rd St
Addres s 2 Sui te 101
City/Town Farmington
State/Provinc e MN
ZIP/Pos t al Code 55024
Country Uni ted States
Email Addres s pm ccarth@amfam .com
Phone Number 6514603333
Q4
Are you loc ated within the m unic ipal boundaries of
Farmington, MN?
Yes
Q5
Please Ack nowledge the following:
I have reviewed and understand the Micro Grant
guidelines.
#4#4
COMPLETECOMPLETE
Col lector:Col lector: Web Link 1 Web Link 1 (Web Link )(Web Link )
Started:Started: Friday, July 21, 2023 1:12:16 PMFriday, July 21, 2023 1:12:16 PM
Last Modified:Last Modified: Friday, July 21, 2023 1:41:54 PMFriday, July 21, 2023 1:41:54 PM
Time Spent:Time Spent: 00:29:3800:29:38
IP Address:IP Address: 165.225.62.121165.225.62.121
Page 1: Farmington EDA Micro Grant Application
Page 30 of 36
Farmington M ic ro Grant
2 / 3
Q6
Is your bus iness regis tered with the s ecretary of state?
Yes
Q7
Is property up to date on all property taxes and in good
s tanding with the City?
Yes
Q8
Year busines s was founded
2007
Q9
Describe your bus ines s
Ins uranc e Agency
Q10
Reques ted grant amount
2500
Q11
Projec t des c ription – narrativ e of how funds will be us ed and how it will help your bus ines s
Marketing - we would like t o us e the money to as sist in our mark et ing eff orts by sending a 3 touch program cons isting of lett er,
pos tcard and letter using c ompany approv ed marketing materials .
Q12
Attachm ent: Bus iness Plan
Marketing%20Plan.docx (13.8KB)
Q13
Attachm ent: Bid/Projec t Cos t Es timates
Micro%20Grant.pdf (299KB)
Q14
Relevant photos depic ting y our projec t
Respondent skipped this question
Page 31 of 36
Farmington M ic ro Grant
3 / 3
Q15
Financ ial Plan: attach 12 m onths of financial projections AND profit/los s balanc e sheet for the previous 12 months
Financial%20Doc%20.docx (11.6KB)
Q16
Please ack nowledge the following
By subm i tting this application, I attest that I have
revi ewed the program gui delines and that my
application is truthful and com plete.
Page 32 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Stephanie Aman, Economic Development Coordinator
Department: EDA
Subject: Understanding tools and available land for Economic Development
Meeting: Economic Development Authority - Aug 21 2023
INTRODUCTION:
Understanding available land and properties is crucial to economic development. Equally as important to economic
development is staff's understanding of the tools available to present land to po tential developers. City staff need to
be well versed in land availability and infrastructure available on each available site. Staff must also have a consistent
approach for presenting properties, an ability to be nimble in providing personalized information, and an understanding
of what obstacles are embedded in the property in order to articulate the best use of the land.
DISCUSSION:
Staff will demonstrate some of the methods used to determine available property and land inventory. Staff will also
demonstrate various tools that are available to help us understand and present those properties to clients. The
Economic Development team works closely with other departments to ensure Farmington is providing each project
with a sophisticated and customized response.
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
No action required.
Page 33 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: Community Development
Subject: Director's Report
Meeting: Economic Development Authority - Aug 21 2023
INTRODUCTION:
The following highlights recent and ongoing economic development activities.
DISCUSSION:
July 2023 Summary - focusing on projects, prospects, business visits, meetings, and other activities
and initiatives.
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
No action requested. This report is for informational purposes only. Staff is availa ble to provide
additional details and answer any questions.
ATTACHMENTS:
Director's Report - 08-2023 meeting
Page 34 of 36
Reporting
Period:
July 2023
DIRECTOR’S REPORT – providing project highlights and a summary of
economic development activity.
Projects • Ebert Apartments
o Building permit application and plans have been submitted.
o Demolition permit has been submitted – demo expected to start before the end of August.
o RIG Grant public hearing is set with Dakota County for August 23rd.
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)
o Vision Statement presented to City Council:
In the City of Farmington people and neighborhoods are valued, natural resources matter, and businesses and traditions are
celebrated. We are bold in pursing opportunities and investments that support quality and sustainable growth, a vibrant and resilient economy, and a complete and connected community.
o Staff reviewing Guiding Principles and Policies
• Transit/Transportation Option
o Having individual conversations with industries during site visits.
o Will be scheduling open house/workshop with industrial businesses for
fall/winter.
• 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 – no update
• Project Margarita – 40+ acres, greenfield sites, heavy utility user – site(s)
submitted, and site visit occurred.
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 Nacho – light industrial project, 200 acres – site(s) submitted.
• Project Synergy – food manufacturing, 20-40+ acres – site(s) submittal being
prepared.
• Project Poppy - < 20 acres within specified area for manufacturing project –
site(s) submitted.
Page 35 of 36
NO SUBMISSION OF SITES
• Project X (no code name) – within 3 miles of deepwater barge access
Business Visits
• Currently developing business visit plan for the remainder of 2023. The strategy
includes visiting all businesses in the industrial park as priority #1, then
branching out to second stage growth businesses previously identified.
• Ruff Manufacturing – August 2nd visit
• Installed Building Solutions – September 21st planned visit.
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
• Bruce Maus
Other • Booth, MN Real Estate Journal – Summer Bags Tournament
• Farmington Coffee with Dakota Chamber
• CVN Session – September 15th
• MMP Planning Team – Minnesota FAM Tour – date TBD
• MMP Visit Team – Dallas Market – fall 2023
• EDA Levy – Public Hearing set for September 5, including a $150,000 EDA Levy
request.
• 2024 Work Plan refinement
• Finalist – “Unexpectedly Bold” Economic Development Marketing campaign
o New banners and table skirt in production to be unveiled at September
13th Leaders in Local Government award luncheon.
Page 36 of 36