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Home My WebLink About09.12.23 Planning Packet Meeting Location: Farmington City Hall 430 Third Street Farmington, MN 55024 PLANNING COMMISSION Tuesday, September 12, 2023 7:00 PM Page 1. CALL TO ORDER 2. APPROVAL OF MINUTES 2.1. Approve Planning Commission Minutes Approve the minutes from the August 8, 2023 regular meeting. Agenda Item: Approve Planning Commission Minutes - Pdf 3 - 5 3. PUBLIC HEARINGS 3.1. Ordinance Amendment to Title 10, Chapter 3, Sections 3, 5, & 7 of the City Code: Administrative Requirements for Conditional and Interim Use Permits Recommend the City Council approve the attached ordinance and summary ordinance regarding CUP and IUP administrative requirements. Agenda Item: Ordinance Amendment to Title 10, Chapter 3, Sections 3, 5, & 7 of the City Code: Administrative Requirements for Conditional and Interim - Pdf 6 - 14 3.2. Conditional Use Permit for a Grocery Store within the B-1 Zoning District - 705 8th Street - Sultan Haque Approve the requested conditional use permit for the establishment of a grocery store at 705 8th Street contingent on the following: 1. All necessary building permits are obtained. 2. A sign permit shall be obtained for any exterior signage. 3. A revised site plan shall be submitted to Planning staff showing the location of two additional stalls on site. A minimum of 25 off- street parking stalls must be provided on site. 4. The parking lot shall be striped in accordance with the revised site plan to be submitted to and approved by Planning staff. 5. A screening plan for the trash container must be submitted to and approved by Planning staff. 15 - 67 Page 1 of 81 Agenda Item: Conditional Use Permit for a Grocery Store within the B -1 Zoning District - 705 8th Street - Sultan Haque - Pdf 4. DISCUSSION 4.1. 2040 Comprehensive Plan Amendment Update No action is requested at this time. HKGi will seek input from the Commission based on information presented and will be available to answer questions about the process and next steps. Agenda Item: 2040 Comprehensive Plan Amendment Update - Pdf 68 - 81 5. ADJOURN Page 2 of 81 PLANNING COMMISSION AGENDA MEMO To: Planning Commission From: Tony Wippler, Planning Manager Department: Planning Commission Subject: Approve Planning Commission Minutes Meeting: Planning Commission - Sep 12 2023 INTRODUCTION: Attached, are the minutes from the August 8, 2023 regular meeting. DISCUSSION: Not applicable BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve the minutes from the August 8, 2023 regular meeting. ATTACHMENTS: 080823 signed pc minutes Page 3 of 81 Page 4 of 81 Page 5 of 81 PLANNING COMMISSION AGENDA MEMO To: Planning Commission From: Jared Johnson, Planning Coordinator Department: Community Development Subject: Ordinance Amendment to Title 10, Chapter 3, Sections 3, 5, & 7 of the City Code: Administrative Requirements for Conditional and Interim Use Permits Meeting: Planning Commission - Sep 12 2023 INTRODUCTION: Staff, with the help and direction of legal, is recommending several ordinance amendments to Title 10, Chapter 3, Sections 3,5, & 7 of the City Code regarding administrative requirements for conditional and interim use permits. DISCUSSION: There are two main components to the proposed ordinance amendment. The first part of the amendment transfers authority from the Planning Commission to the City Council to approve interim use permits. The second part of the amendment adds a 6 -month timeframe before denied conditional or interim use permit applications can be re-applied for. The Planning Commission does not have statutory authority to approve or deny interim use permits, only the City Council can approve them. The existing code currently d elegates the approval of interim use permits to the Planning Commission without needing City Council approval. In order to align with state statue, the proposed ordinance amendment would transfer this duty from the Planning Commission to the City Council. The Planning Commission would still hold a public hearing and give a recommendation to the City Council. The existing code currently does not have language that specifies a timeframe before denied conditional or interim use permits can be re-applied for. This allows very similar applications to be submitted within consecutive meetings. Staff is recommending adding a 6 -month timeframe to reduce redundancy in repeat applications, save time for staff and decision makers, and allow the applicant to make significant changes that are needed as a result of the initial denial. BUDGET IMPACT: Not applicable ACTION REQUESTED: Recommend the City Council approve the attached ordinance and summary ordinance regarding CUP and IUP administrative requirements. Page 6 of 81 ATTACHMENTS: Ord No. xxx CUP-IUP Admin Requirements Summary of Ordinance No. xxx CUP-IUP Admin Requirements Amendment Changes (for reference only) Page 7 of 81 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING TITLE 10, CHAPTER 3, SECTIONS 3, 5, AND 7 OF THE FARMINGTON CITY CODE AS IT RELATES TO ESTABLISHING THE CITY COUNCIL AS THE AUTHORITY TO APPROVE OR DENY INTERIM USE PERMITS AND ESTABLISHING A PERIOD OF TIME BEFORE DENIED CONDITIONAL OR INTERIM USE PERMIT APPLICATIONS CAN BE RE-APPLIED FOR The City Council of the City of Farmington ordains: SECTION 1. Title 10, Chapter 3, Section 3 Subsection (C) of the Farmington City Code is hereby deleted in its entirety. SECTION 2. Title 10, Chapter 3, Section 5 of the Farmington City Code is amended to add a new subsection F to read as follows: 10-3-5: CONDITONAL USES: (F) Denial of Permit: No application for a conditional use which has been denied wholly or in part by the planning commission or by the city council after an appeal, shall be resubmitted for a period of six (6) months from the date of said order of denial, except on grounds of new evidence or proof of change of conditions found to be valid by the board of adjustment. SECTION 3. Title 10, Chapter 3, Section 7 of the Farmington City Code is amended by adding the underlined language and deleting the strikethrough language as follows: 10-3-7: INTERIM USES: (A) Permission And Conditions: The city council, after receiving a recommendation from the board of adjustment planning commission, may grant permission and set conditions for an interim use of property if: 1. The use conforms to the zoning regulations, performance standards and other requirements; 2. The use meets the standards of a conditional use permit set forth in section 10-3-5 of this chapter; 3. The date or event that will terminate the use can be identified with certainty; 4. The use will not impose additional costs on the public if it is necessary for the public to take the property in the future; and 5. The use will be subjected to, by agreement with the owner, any conditions that the city has deemed appropriate for permission of the use, including a condition that the owner will provide an appropriate financial surety to cover the cost of removing the interim use and an interim structure upon the expiration of the interim use permit. (B) Termination: An interim use permit shall terminate upon the occurrence of any of the following events, whichever occurs first: Page 8 of 81 1. The date stated in the permit; or 2. A violation of conditions under which the permit was issued; or 3. A change in the city's zoning regulations which renders the use nonconforming as provided in section 10-4-2 of this title; or 4. Redevelopment of the use and property upon which it is located to a permitted or conditional use as allowed within the respective zoning districts. (C) Application, Public Hearing, Notice Procedure: Uses defined as “interim uses” shall be processed according to the standards and procedures those for zoning amendments as provided for in section 10-3-1211 of this chapter. (D) Denial of Permit: No application for an interim use which has been denied wholly or in part by the city council shall be resubmitted for a period of six (6) months from the date of said order of denial, except on grounds of new evidence or proof of change of conditions found to be valid by the city council. (D) Appeal: Upon appeal of a decision by the board of adjustment, the planning coordinator shall set a public hearing, transmit the application directly to the city council and mail a notice to the board of adjustment and property owners adjacent to the subject property disregarding public rights of way. The city council shall within sixty (60) days of the public hearing, decide to affirm or to overturn the decision of the board of adjustment with a four-fifths (4/5) vote of the city council. (Ord. 002-469, 2-19-2002) SECTION 4. EFFECTIVE DATE. This ordinance shall be effective upon its passage and publication according to law. Passed by the City Council of the City of Farmington, Minnesota, this 18th day of September 2023. ATTEST: ____________________________ ______________________________ Joshua Hoyt, Mayor Shirley R Buecksler, City Clerk Page 9 of 81 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA SUMMARY OF ORDINANCE NO. AN ORDINANCE AMENDING TITLE 10, CHAPTERS 3, 5 AND 7 OF THE FARMINGTON CITY CODE AS IT RELATES TO ESTABLISHING THE CITY COUNCIL AS THE AUTHORITY TO APPROVE OR DENY INTERIM USE PERMITS AND ESTABLISHING A PERIOD OF TIME BEFORE DENIED CONDITIONAL OR INTERIM USE PERMIT APPLICATIONS CAN BE RE-APPLIED FOR NOTICE IS HEREBY GIVEN that, on September 18, 2023, Ordinance No. was adopted by the City Council of the City of Farmington, Minnesota. NOTICE IS FURTHER GIVEN that, because of the lengthy nature of this ordinance, the following summary of the ordinance has been prepared for publication. NOTICE IS FURTHER GIVEN Ordinance No. includes the following changes: • Transferring authority to approve or deny interim use permits from the planning commission to the city council. The planning commission must provide a recommendation of approval or denial to the city council. • Adding a requirement that denied conditional use permit applications cannot be re-applied for six (6) months after the date of denial by either the board adjustment or after a denied appeal to the city council. • Adding a requirement that denied interim use permit applications cannot be re -applied for six (6) months after the date of denial by the city council. • Eliminating appeal requirements for interim use permit applications. A printed copy of the whole ordinance is available for inspection by any person during the city’s regular office hours. APPROVED for publication by the City Council of the City of Farmington this 18th day of September, 2023. CITY OF FARMINGTON By: _____________________________ Joshua Hoyt, Mayor ATTEST: By: ______________________________ Shirley R Buecksler City Clerk SEAL Approved as to form the ______day of ________________ 2023. By: ______________________________ City Attorney Published in the Dakota County Tribune the _____ day of _______________________ 2023. Page 10 of 81 Deleted text is struck and added text is underlined: 10-3-3: BOARD OF ADJUSTMENT: The planning commission shall act as the zoning board of adjustment with identical composition, membership, officers and terms of office, with the following duties: (A) Hear, review and authorize variances from the requirements of this title and to attach such conditions to the variance as it deems necessary to assure compliance with the purpose of this title. (B) Hear and review all applications for conditional use permits provided for within this title and grant approval based upon the criteria and provisions listed. (C) Authorize interim use for the purpose of allowing a temporary use of the property until a particular date, until the occurrence of a particular event or until zoning regulations no longer permit it. (C) (D) Hear and review all applications to change lawful nonconforming uses. (D) (E) Submit copies of applications for variances and special exceptions within the floodplain districts to the commissioner of natural resources ten (10) days prior to public hearings and forward copies of all decisions granting variances and special exceptions in these areas to the commissioner of natural resources within ten (10) days of such action. (Ord. 002- 469, 2-19-2002) 10-3-5: CONDITONAL USES: Conditional uses, as specified within each zoning district, may be allowed or denied by the board of adjustment in accordance with the criteria and provisions listed herein. The board of adjustment may establish any reasonable conditions of approval that are deemed necessary to mitigate adverse impacts associated with the conditions of use to protect neighboring properties, and to achieve the objectives elsewhere in this title. (A) Applications for conditional uses shall be filed with the zoning officer and shall be accompanied by: 1. An application fee in an amount equal to that set by the city council. 2. Six (6) copies of a site plan and supporting data which shows the site size and location; use of adjacent land; the proposed size, bulk, use and location of buildings; the location and proposed junction of yards, open space, parking area, driveways, storage areas and accessory structures; the location of all utilities and timing of proposed construction as the zoning officer may require. 3. The zoning officer, at his discretion, may require a topographic map of the site and reduced copies of all required material suitable for mailing. 4. An abstractor's certificate of property owner(s) name(s) and address(es) within three hundred fifty feet (350') of the outer boundaries of the property in question. 5. When the applicant is requesting a conditional use under section 10-6-14 of this title, an abstractor's certificate of property owner(s) name(s) and address(es) within a distance of the outer boundaries of the property in question as set by the city council after review of the height of the proposed antenna, the proximity of residential development and any other factors as determined by the city council. (B) The zoning officer shall set a public hearing and forward copies of the application to the board of adjustment. The zoning officer shall also be responsible for notifying the city council when an applicant applies for a conditional use under section 10-6-14 of this title. The city Page 11 of 81 council shall determine the proper distance for notice as determined under section 10-6-14 of this title. The zoning officer shall also be responsible for mailing a notice to property owners within three hundred fifty feet (350') or that distance set by the city council for television and radio antenna of the subject property. Failure of such owners to receive notice shall not invalidate the proceedings. 1. The board of adjustment must take action within sixty (60) days unless the petitioner agrees in writing to a time extension and it may attach such conditions to the approval of any conditional use as may be necessary. 2. The approved site plan and all attached conditions shall be filed by the petitioner with the zoning officer within thirty (30) days of final approval. Any development contrary to the approved plan shall constitute a violation of this title. (C) A conditional use shall be approved if it is found to meet the following criteria: 1. The proposed use conforms to the district permitted and conditional use provisions and all general regulations of this title. 2. The proposed use shall not involve any element or cause any conditions that may be dangerous, injurious or noxious to any other property or persons and shall comply with the performance standards listed below. 3. The proposed use shall be constructed, designed, sited, oriented and landscaped to produce harmonious relationship of buildings and grounds to adjacent buildings and properties. 4. The proposed use shall produce a total visual impression and environment which is consistent with the environment of the neighborhood. 5. The proposed use shall organize vehicular access and parking to minimize traffic congestion in the neighborhood. 6. The proposed use shall preserve the objectives of this title and shall be consistent with the comprehensive plan. (D) All conditional uses shall comply with the requirements of this section. In order to determine whether a proposed use will conform to the requirements of this title, the board of adjustment may obtain a qualified consultant to testify. Said consultant service fees shall be borne by the applicant. 1. Fire prevention and fighting equipment acceptable to the board of fire underwriters shall be readily available when any activity involving the handling or storage of flammable or explosive material is carried on. 2. No activity shall cause electrical disturbance adversely affecting radio or other equipment in the vicinity. 3. Noise which is determined to be objectionable because of volume, frequency, or beat shall be muffled or otherwise controlled, except for fire sirens and related apparatus used solely for public purpose shall be exempt from this requirement. 4. Vibrations detectable without instruments on neighboring property in any district shall be prohibited. 5. No malodorous gas or matter shall be permitted which is discernible on any adjoining lot or property. 6. No pollution of air by fly ash, dust, smoke, vapors or other substance shall be permitted which is harmful to health, animals, vegetation or other property. 7. Lighting devices which produce objectionable direct lighting or reflect glare on adjoining properties or thoroughfares shall not be permitted. Page 12 of 81 8. No erosion by wind or water shall be permitted which will carry objectionable substances onto neighboring properties. 9. Water pollution shall be subject to the standards established by the Minnesota pollution control agency. 10. Applications for conditional uses in the floodplain districts shall be accompanied by reports from the city engineer on the following material as supplied by the applicant: (a) Site plans indicating existing and proposed structures, fill, material storage, floodproofing measures and their relationship to the stream channels. (b) Typical valley cross sections through the site, indicating the elevation of land areas adjoining each side of the channel, landform changes proposed on the site together with high water information. (c) Soils maps, topographic maps at a two foot (2') contour interval, vegetative cover plus the location and elevation of streets, water supply and sanitary facilities. (d) Profile showing the slope of the bottom of the stream channel. (e) Specifications for building construction and materials, floodproofing, filling, dredging, grading channel improvement, material storage, water supply and sanitary facilities. (f) Plans showing the floor protection measures to be taken in accordance with this section. (g) An analysis of the above information by a registered professional engineer which includes the following: (1) An estimate of the peak discharge of the regional flood. (2) The water surface profile of the regional flood based upon a hydraulic analysis of the stream channel and over bank areas. (3) The effect of the proposed encroachment on the stage and velocity during the regional flood event. (E) Prior to the approval and issuance of a permit, there shall be executed by the applicant and submitted to the zoning officer, an agreement to construct required improvements, to dedicate property or easements, if any, to the city and to comply with conditions as may have been established by the board of adjustment. Such agreement shall be accompanied by surety acceptable to the city administrator in the amount of the established costs of complying with the agreement. The aforesaid agreement and surety shall be provided to guarantee completion and compliance with the conditions set forth in the permit within the time to be approved by the board of adjustment. The amount of the surety may be increased or decreased by the zoning officer to reflect inflation, changed conditions, or compliance with permit conditions. (Ord. 002- 469, 2-19-2002) (F) Denial of Permit: No application for a conditional use which has been denied wholly or in part by the planning commission or by the city council after an appeal, shall be resubmitted for a period of six (6) months from the date of said order of denial, except on grounds of new evidence or proof of change of conditions found to be valid by the board of adjustment. 10-3-7: INTERIM USES: (A) Permission And Conditions: The city council, after receiving a recommendation from the board of adjustment planning commission, may grant permission and set conditions for an interim use of property if: Page 13 of 81 1. The use conforms to the zoning regulations, performance standards and other requirements; 2. The use meets the standards of a conditional use permit set forth in section 10-3-5 of this chapter; 3. The date or event that will terminate the use can be identified with certainty; 4. The use will not impose additional costs on the public if it is necessary for the public to take the property in the future; and 5. The use will be subjected to, by agreement with the owner, any conditions that the city has deemed appropriate for permission of the use, including a condition that the owner will provide an appropriate financial surety to cover the cost of removing the interim use and an interim structure upon the expiration of the interim use permit. (B) Termination: An interim use permit shall terminate upon the occurrence of any of the following events, whichever occurs first: 1. The date stated in the permit; or 2. A violation of conditions under which the permit was issued; or 3. A change in the city's zoning regulations which renders the use nonconforming as provided in section 10-4-2 of this title; or 4. Redevelopment of the use and property upon which it is located to a permitted or conditional use as allowed within the respective zoning districts. (C) Application, Public Hearing, Notice Procedure: Uses defined as “interim uses” shall be processed according to the standards and procedures The application, public hearing, and public notice requirements for interim use permits before the board of adjustment shall be the same as those for zoning amendments as provided for in section 10-3-1211 of this chapter. (D) Denial of Permit: No application for an interim use which has been denied wholly or in part by the city council shall be resubmitted for a period of six (6) months from the date of said order of denial, except on grounds of new evidence or proof of change of conditions found to be valid by the city council. (D) Appeal: Upon appeal of a decision by the board of adjustment, the planning coordinator shall set a public hearing, transmit the application directly to the city council and mail a notice to the board of adjustment and property owners adjacent to the subject property disregarding public rights of way. The city council shall within sixty (60) days of the public hearing, decide to affirm or to overturn the decision of the board of adjustment with a four-fifths (4/5) vote of the city council. (Ord. 002-469, 2-19-2002) Page 14 of 81 PLANNING COMMISSION AGENDA MEMO To: Planning Commission From: Tony Wippler, Planning Manager Department: Planning Commission Subject: Conditional Use Permit for a Grocery Store within the B -1 Zoning District - 705 8th Street - Sultan Haque Meeting: Planning Commission - Sep 12 2023 INTRODUCTION: Sultan Haque has applied for a conditional use permit [CUP] to allow the establishment of a grocery store at 705 8th Street. The subject property is owned by Sajid Haque of Triton Properties, LLC . DISCUSSION: Background Mr. Haque is proposing to establish the Farmington Food & Spice House at 705 8th Street. Per the attached business plan, Farmington Food & Spice House would be a standard grocery store that intends to offer superior and high-quality food products. It would be an Indian grocery store with a product inventory that will include: meat, frozen fish, dairy product, halal slaughtered animals, fresh produce, dry food (sweets, snacks, bakery foods), canned food, spices, packed tea, coffee, beverages, ethnic personal care and beauty product. The proposed use will also include a delicatessen that will allow customers to buy ready-to-eat items such as cold cut meat, sliced cheese, sandwiches, gyros, grill items, salad and fries. Review Zoning The subject property, 705 8th Street, is zoned B -1 (Highway Business) where grocery stores are a conditional use. The property is guided for commercial in the 2040 Comprehensive Plan. Existing The subject property is 1.34 acres in size and is located at the northeast intersection of Larch Street and 8th Street. The site is the former location of Oasis Mar ket and currently contains a one story, 5,059 square foot office/retail building. The underground gas tanks of the former gas station were removed from the site in 2013. The grocery store is proposed to occupy the south half of the existing building (currently Overstock Outlet) The northern half of the building contains JG Legend Ink tattoo shop. The proposal does not include any building expansion. A car detailing business is being ran out of the former carwash building located towards the southeast co rner of the site. Page 15 of 81 Proposed - Interior Farmington Food & Spice House would utilize the southern half of the existing building by renovating the interior to their needs. As shown on the attached floor plan the space is proposed to be arranged in an open floor concept with shelving in the center of the space, deli in the northwest corner, coolers and freezers along the eastern and southern walls and the checkout counter along the western wall of the space. Proposed - Exterior As shown on the attached site plan, the trash container is to be lo cated near the northeast corner of the site. If the CUP is approved, a condition of approval should be that the applicant provide staff with a screening plan for the trash container. The container should be screened on three sides and the screening can consist of either six-foot-high privacy fencing or masonry walls. Parking The grocery store will utilize the existing bituminous area on the site for parking. The attached site plan shows 23 off-street parking stalls located along the western and southern side of the building along with stalls along the boulevard of Larch Street. Per code, retail facilities (including grocery stores) requires at least 1 off street parking space for each 200 square feet of floor area up to a total floor area of 10,000 square feet. The required parking on site is 25 stalls. It appears there is adequate space on site to accommodate two additional stalls. If the CUP is approved, it should be conditioned upon the applicant revising the site plan showing a minimum of 25 o ff-street parking stalls. It should also be conditioned that the bituminous area must be striped in accordance to the revised site plan. BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve the requested conditional use permit for the establishment of a grocery store at 705 8th Street contingent on the following: 1. All necessary building permits are obtained. 2. A sign permit shall be obtained for any exterior signage. 3. A revised site plan shall be submitted to Planning staff showing the location of two additional stalls on site. A minimum of 25 off-street parking stalls must be provided on site. 4. The parking lot shall be striped in accordance with the revised site plan to be submitted to and approved by Planning staff. 5. A screening plan for the trash container must be submitted to and approved by Planning staff. ATTACHMENTS: Haque application Haque Business Plan Haque site plan and floor plan Page 16 of 81 AU G 0 3 2 0 2 3 CI T Y OF _ , ® 43 0 Th l v d S1 , , Fa r m i n g i o n . MN 55 0 2 4 FA R M I N G T O N ® 65 : - % 8 ° - 6 8 ° ° ’ Fa r m I n g i o n M N . g o v CO N D I T I O N A L US E PE R M I T AP P L I C A T I O N Ap p l i c a n t : $U L T / H M /1 5 5 2 0 : : Te l e p h o n e : G5 7 Fa x : Ad d r e s s : .. l ° i 5- 5’ A/ J 2 0 / 9 / ) F? ? m / / 3 / € 7 7 0 / V 55 . 0 0 2 4 ] St r e e t Ci t y St a t e Zi p Co d e Ow n e r : AHa g u i e Te l e p h o n e : 6 Eé ? 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W éL ; ¥ / a / ‘# [ L j é N — € — ‘ G x Q9\ Q / ~ e \ 5 I A V = ’ ° ~ < ’ A A i \ L, 0 ‘5 ' 0 3 2’ $ Si g n a ur e of Ow n Da t e Si g n a t u r e of Ap p l i c a n t Da t e Re q u e s t Su b m i t t e d to Pl a n n i n g st a f f on Fo r of f i c e us e on l y Pu b l i c He a r i n g Se t fo r : Ad v e r t i s e d in Lo c a l Ne w s p a p e r : Pl a n n i n g Co m m i s s i o n Ac t i o n : Ap p r o v e d De n i e d Fe e Pa i d Ci t y Co u n c i l Ac t i o n (i f ne c e s s a r y ) : Ap p r o v e d De n i e d $2 5 0 — Ci t y of Co n d i t i o n s Se t : DR A F F E D BY : Pl a n n i n g di v i s i o n : : Ci - y u r r a r m i n s - < m 43 0 Th i r d Sl r e c t 9/ 10 / 2 0 19 Fn r m i n g l o n , MN 55 0 2 4 Page 17 of 81 Fa r m i n g t o n Fo o d & Sp i c e Ho u s e Th e De a r Ci t y of Fa r m i n g t o n , We ar e ex c i t e d to in t r o d u c e ou r pr o p o s a l fo r a ne w , in n o v a t i v e gr o c e r y st o r e co n c e p t th a t wi l l pr o v i d e th e co m m u n i t y wi t h af f o r d a b l e ac c e s s to hi g h » q u a | i t y , lo c a l l y so u r c e d pr o d u c t s . Ou r Fa r m i n g t o n Fo o d 84 Sp i c e Ho u s e te a m is pa s s i o n a t e ab o u t he a l t h y ea t i n g an d su s t a i n a b l e li v i n g , an d ou r st o r e ca n ma k e a me a n i n g f u l im p a c t on th e lo c a l co m m u n i t y . Ou r st o r e wi l l of f e r a wi d e ra n g e of fo r e i g n an d lo c a l l y so u r c e d pr o d u c t s , in c l u d i n g fr e s h pr o d u c e , me a t s , da i r y , an d sp e c i a l t y it e m s su c h as sp i c e s an d se a s o n i n g s . We ar e co m m i t t e d to so u r c i n g ou r pr o d u c t s fr o m tr u s t e d su p p l i e r s wh o sh a r e ou r va l u e s of qu a l i t y , su s t a i n a b i l i t y , an d et h i c a l pr a c t i c e s , We se e k zo n i n g ap p r o v a l fo r ou r pr o p o s e d lo c a t i o n at 70 5 8t h St Fa r m i n g t o n i\ / ? g 55 0 2 - 4 . Th i s lo c a t i o n is id e a l fo r ou r st o r e , as it is ea s i l y ac c e s s i b l e to th e lo c a l co m m u n i t y an d ha s am p l e pa r k i n g fo r cu s t o m e r s . We ha v e at t a c h e d a de t a i l e d pr o p o s a l fo r yo u r re v i e w , wh i c h in c l u d e s in f o r m a t i o n on ou r bu s i n e s s pl a n , ma r k e t an a l y s i s , an d co m m u n i t y im p a c t . We ar e co m m i t t e d to wo r k i n g wi t h th e co m m u n i t y to en s u r e ou r st o r e is a po s i t i v e ad d i t i o n to th e ne i g h b o r h o o d . We wi l l pr i o r i t i z e in i t i a t i v e s su c h as co m p o s t i n g an d re c y c l i n g pr o g r a m s to mi n i m i z e wa s t e an d wo r k wi t h lo c a l or g a n i z a t i o n s to su p p o r t co m m u n i t y ev e n t s an d in i t i a t i v e s . I ap p r e c i a t e yo u r co n s i d e r a t i o n of ou r pr o p o s a l . Wi t h yo u r su p p o r t , we ar e co n f i d e n t th a t we ca n br i n g ou r vi s i o n to li f e an d po s i t i v e l y im p a c t th e co m m u n i t y . We wo u l d be ha p p y to di s c u s s an y qu e s t i o n s or co n c e r n s yo u ma y ha v e . Si n i s t e r l y , V |a \ | { . \ l l \ ( l l' l )\ I- ’ ( )t H >:2 .\ ‘ | ‘ l I ', l ' I It il ‘S I I. 70 5 8T H ST , FA R M I N G T O N , MN 55 0 2 4 I" (6 5 1 ) 43 4 - 2 9 1 5 Page 18 of 81 Page 19 of 81 'r ‘ CO N T E N T S No n — D i s c l o s u r e Ag r e e m e n t . St a t e m e n t of Pu r p o s e .. . . . . . . . .. Ex e c u t i v e Su m m a r y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 Vi s i o n an d Mi s s i o n St a t e m e n t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. 8 Bu s i n e s s Ob j e c t i v e s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Ke y s to Su c c e s s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _. 9 Ou r Co r e Va l u e s .......... ..... 9 Bu s i n e s s Mo d e l Ca n v a s 12 Co m p a n y Su m m a r y .. . . . . . .. Co m p a n y In f o r m a t i o n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14 Co m p a n y Co n c e p t u a l i z a t i o n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 14 Co m p a n y Lo c a t i o n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14 De m o g r a p h i c s of Fa r m i n g t o n Ci t y , Mi n n e s o t a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14 Co m p a n y Re s o u r c e s . . . . . Ma n a g e m e n t Su m m a r y Or g a n i z a t i o n a l St r u c t u r e . Bu s i n e s s Ri s k s an d Mi t i g a t i o n Pr o c e s s e s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 Pr o d u c t s an d Se r v i c e s De s c r i p t i o n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18 Me t h o d s of Pa y m e n t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. 18 Pr i c i n g St r u c t u r e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19 Ma r k e t An a l y s i s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Th e US fo o d an d gr o c e r y re t a i l ma r k e t Ma r k e t Ne e d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Ma r k e t Se g m e n t a t i o n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 Ta r g e t Ma r k e t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 De m o g r a p h y An a l y s i s of So u t h As i a n an d Af r i c a n an d So m a l i Po p u l a t i o n in Da k o t a .. . . . . . . . . . . . . .. 2 3 PE S T E L An a l y s i s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,. 24 Po l i t i c a l an a l y s i s Ec o n o m i c an a l y s i s So c i a l an a l y s i s . . . .. 2 4 En v i r o n m e n t a l An a l y s i s 25 Le g a l An a l y s i s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 Po r t e r s ’ Fi v e Fo r c e s Of Pr o ? t a b i l i t y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 6 Th r e a t s of Ne w En t r a n t s Ba r g a i n i n g po w e r of Bu y e r s Th r e a t of Su b s t i t u t e s .. . . . . . . . .. Ba r g a i n i n g po w e r of su p p l i e r s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 2| P a g e Page 20 of 81 Co m p e t i t i v e Ri v a l r y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 SW O T A n a 1 y s i s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. 2 8 Co m p e t i t o r An a l y s i s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. 30 Ma r k e t i n g an d Sa l e s St r a t e g y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Ma r k e t i n g St r a t e g y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. 31 Ma r k e t i n g Ob j e c t i v e s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . _. 31 Im p l e m e n t a t i o n .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Sa l e s St r a t e g y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34 Fi n a n c i a l Pl a n . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 35 As s u m p t i o n s .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. 35 Lo a n Am o r t i z a t i o n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 35 Fi n a n c i a l Ov e r v i e w .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 7 Pr o j e c t e d In c o m e St a t e m e n t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38 La u n c h e d Ca s h Fl o w St a t e m e n t .. . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 ( ) Pr o j e c t e d St a t e m e n t of Fi n a n c i a l Po s i t i o n .. . . . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 42 Br e a k e v e n An a l y s i s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43 Ne t Pr e s e n t Va l u e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45 Cl o s i n g St a t e m e n t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . .. 46 3| P a g e Page 21 of 81 N ON - D I S C L O S U R E AG R E E M E N T Th e un d e r s i g n e d re a d e r he r e b y ac k n o w l e d g e s th a t th e bu s i n e s s pl a n pr o v i d e d by Su l t a n Ha q u e co n t a i n s co n ? d e n t i a l in f o r m a t i o n an d tr a d e se c r e t s of Fa r m i n g t o n Fo o d & Sp i c e Ho u s e (" t h e Co m p a n y " ) . Th e un d e r s i g n e d re a d e r ag r e e s to ke e p al l in f o r m a t i o n co n t a i n e d wi t h i n th e bu s i n e s s pl a n co n ? d e n t i a l an d to us e su c h in f o r m a t i o n so l e l y fo r th e pu r p o s e of ev a l u a t i n g a po t e n t i a l bu s i n e s s re l a t i o n s h i p wi t h th e Co m p a n y . Th e un d e r s i g n e d re a d e r fu r t h e r ag r e e s no t to di s c l o s e an y po r t i o n of th e bu s i n e s s pl a n to an y th i r d pa r t y wi t h o u t th e pr i o r wr i t t e n co n s e n t of th e Co m p a n y . Th e un d e r s i g n e d re a d e r ac k n o w l e d g e s th a t th e un a u t h o r i z e d di s c l o s u r e or us e of an y co n ? d e n t i a l in f o r m a t i o n co n t a i n e d wi t h i n th e bu s i n e s s pl a n ma y ca u s e ir r e p a r a b l e ha r m to th e Co m p a n y , an d th e un d e r s i g n e d re a d e r ag r e e s to in d e m n i f y an d ho l d th e Co m p a n y ha r m l e s s fr o m an y su c h ha r m . Th e un d e r s i g n e d re a d e r al s o ac k n o w l e d g e s th a t al l in f o r m a t i o n co n t a i n e d wi t h i n th e bu s i n e s s pl a n is co n ? d e n t i a l an d pr o p r i e t a r y , ex c e p t fo r in f o r m a t i o n th a t is al r e a d y in th e pu b l i c do m a i n or ha s be e n la w f u l l y ac q u i r e d by th e un d e r s i g n e d re a d e r fr o m a so u r c e ot h e r th a n th e Co m p a n y . Up o n re q u e s t , th e un d e r s i g n e d re a d e r ag r e e s to pr o m p t l y re t u r n th e bu s i n e s s pl a n an d an y co p i e s th e r e o f to Su l t a n Ha q u e . Th e ob l i g a t i o n s co n t a i n e d in th i s ag r e e m e n t sh a l l su r v i v e th e te r m i n a t i o n of an y di s c u s s i o n s or ne g o t i a t i o n s be t w e e n th e un d e r s i g n e d re a d e r an d th e Co m p a n y . Si g n a t u r e Su l t a n Ha g u e 16 " ‘ No v e m b e r 20 2 1 4| P a g e Page 22 of 81 ST A T E M E N T OF PU R P O S E Th i s bu s i n e s s pl a n is wr i t t e n to de s c r i b e an d an a l y z e th e bu s i n e s s ac t i v i t i e s of Fa r m i n g t o n Fo o d & Sp i c e Ho u s e un d e r th e ma n a g e m e n t of Su l t a n Ha q u e to se c u r e an SB A lo a n of $6 0 0 , 0 0 0 wi t h a 3. 9 9 AP R to ?n a n c e th e bu s i n e s s ' s st a r t u p re q u i r e m e n t an d de s c r i b e st r a t e g i e s to pr o p e l ou r gr o w t h . We wi l l pu t an ad e q u a t e ma r k e t i n g st r a t e g y in pl a c e to en s u r e th a t a la r g e po p u l a t i o n of ou r ta r g e t ma r k e t is in f o r m e d ab o u t th e av a i l a b i l i t y of ou r ex c e l l e n t co l l e c t i o n of un i q u e fo o d pr o d u c t s . We ar e po i s e d to be su c c e s s f u l an d pr o j e c t ad e q u a t e re v e n u e fo r ou r pr o ? t a b i l i t y an d th e su s t a i n a b i l i t y of th e bu s i n e s s . Th i s bu s i n e s s pl a n al s o hi g h l i g h t s ou r op e r a t i o n a l pl a n , vi s i o n an d mi s s i o n st a t e m e n t s , bu s i n e s s ob j e c t i v e s , pr o d u c t s , an d se r v i c e s , am o n g ot h e r co n t e n t s of th e bu s i n e s s pl a n . 5] P a g e Page 23 of 81 EX E C U T I V E SU M M A R Y Fa r m i n g t o n Fo o d & Sp i c e Ho u s e is a st a n d a r d gr o c e r y ? h l a n u a h a t in t e n d s to of f e r su p e r i o r an d hi g h ~ q u a l i t y fo o d pr o d u c t s in ou r lu x u r i o u s fa c i l i t y (t o be ac q u i r e d ) . Th e Co m p a n y is lo c a t e d in Fa r m i n g t o n , a ci t y in Da k o t a Co u n t y , in th e st a t e of Mi n n e s o t a . We ar e kn o w n as In d i a n gr o c e r y st o r e wh i c h wi l l in t e g r a t e th e Am e r i c a n in t e n d e d to se r v e gr e a t e r co m m u n i t y in tw i n - c i t i e s . Ou r pr o d u c t in v e n t o r y wi l l in c l u d e me a t , fr o z e n ?s h , Da i r y pr o d u c t , ha l a l sl a u g h t e r e d an i m a l s wh i c h we wi l l pr o v i d e th e cu t ba s e d on th e cu s t o m e r ' s ch o i c e , Fr e s h Pr o d u c e , Dr y Fo o d (S w e e t , Sn a c k s , Ba k e r y Go o d s ) , Ca n n e d fo o d , Sp i c e s , Pa c k e d Te a , Co f f e e , Be v e r a g e s (R e f r i g e r a t e d Ju i c e , Sy r u p , Ho t Te a / C o f f e e fr o m De l i ) , et h n i c pe r s o n a l ca r e an d be a u t y pr o d u c t . De l i c a t e s s e n wi l l al s o be pr o v i d e d in th e st o r e to al l o w pe o p l e to bu y re a d y - t o - e a t it e m s su c h as Co l d cu t me a t , sl i c e d ch e e s e , Sa n d w i c h e s , Gy r o s , Gr i l l It e m s , sa l a d , an d Fr i e s . We wi l l so u r c e ou r pr o d u c t s fr o m va r i o u s ma n u f a c t u r e r s an d ac c r e d i t e d di s t r i b u t o r s ac r o s s co u n t r i e s an d se l l th e m in ou r gr o c e r y st o r e . Th e re t a i l fo o d ma r k e t is ra p i d l y in c r e a s i n g du e to ri s i n g di s p o s a b l e in c o m e , co n t i n u o u s te c h n o l o g y im p r o v e m e n t s , an d th e de m a n d fo r fr e s h an d qu a l i t y fo o d pr o d u c t s . Fa r m i n g t o n Fo o d & Sp i c e Ho u s e ha s co m e to jo i n th i s bo o m i n g ma r k e t by pr o v i d i n g a st a t e - o f - t h e - a r t fa c i l i t y wh e r e va r i o u s ty p e s of fo o d pr o d u c t s ca n be pu r c h a s e d co n v e n i e n t l y , ef f i c i e n t l y , an d at ex c e l l e n t ra t e s . Ou r gr o c e r y st o r e in t e n d s to se r v e th e po p u l a c e of Fa r m i n g t o n wi t h a pa r t i c u l a r fo c u s on th e Mu s l i m po p u l a t i o n . We wa n t to br i n g th e fi r s t gr o c e r y st o r e to Fa r m i n g t o n . Fa r m i n g t o n Fo o d & Sp i c e Ho u s e of f e r s th e ul t i m a t e co n s u m e r ex p e r i e n c e li k e no ot h e r gr o c e r y st o r e , wi t h a la y o u t an d fi x t u r e s th a t ma x i m i z e sp a c e an d hi g h l i g h t th e pr o d u c t s we se l l . Ou r si g n a g e wi l l be vi s u a l l y en t i c i n g an d hi g h l i g h t s th e va l u e of ou r fo o d pr o d u c t s , an d fo c u s th e co n s u m e r ' s at t e n t i o n on ou r hi g h - q u a l i t y fo o d pr o d u c t s . Th e me r c h a n d i s e we ca r r y is qu a l i t y fo o d pr o d u c t s wi t h a si g n i ? c a n t re p r e s e n t a t i o n of a na t i o n a l l y re c o g n i z e d na m e br a n d . Ou r in v e n t o r y wi l l pr o v i d e hi g h qu a l i t y an d va l u e to ou r cu s t o m e r s . Th e fo o d pr o d u c t en s u r e we ar e th e pl a c e to ge t al l th e i r fo o d ne e d s . Ou r fo c u s wi l l be en g a g i n g th e cu s t o m e r so th a t we bo t h de l i g h t an d pr o v i d e qu i c k an d fr i e n d l y se r v i c e . We wi l l be a re t a i l fo o d st o r e th a t of f e r s mo r e th a n ju s t an o t h e r av e r a g e or tr a d i t i o n a l gr o c e r y st o r e . We wi l l no t on l y be ac t i v e l y in v o l v e d in th e sa l e of to p - q u a l i t y fo o d pr o d u c t s bu t al s o . 6| P a g e Page 24 of 81 :, « Gi v e ou r cu s t o m e r s a po s i t i v e sh o p p i n g ex p e r i e n c e . At Fa r m i n g t o n Fo o d & Sp i c e Ho u s e , ou r pa s s i o n an d en t h u s i a s m ar e fo o d pr o d u c t s , ev e n th o u g h we of f e r mo r e . We co m b i n e ex p e r i e n c e , ac c u r a c y , te c h n o l o g i c a l pr o g r e s s , an d co n s t a n t qu a l i t y co n t r o l fo l l o w i n g th e la t e s t st a n d a r d s in th e re t a i l fo o d in d u s t r y to pr o v i d e in n o v a t i v e an d hi g h — q u a l i t y fo o d pr o d u c t s at an ex c e l l e n t pr i c e an d qu a l i t y le v e l . Ou r hi g h — q u a l i t y fo o d pr o d u c t s wi l l be of f e r e d to ou r cu s t o m e r s at Fa r m i n g t o n Fo o d & Sp i c e Ho u s e in Fa r m i n g t o n ci t y . In s t e a d of pu s h i n g a ca r t th r o u g h th e ai s l e s , co n s u m e r s ca n cr e a t e th e i r gr o c e r y or d e r on l i n e an d pi c k it up at th e st o r e or de l i v e r it to th e i r de s i r e d lo c a t i o n . Cu s t o m e r s wi l l al s o ha v e th e op t i o n of or d e r i n g th r o u g h ou r we b s i t e an d ge t t i n g th e i r pu r c h a s e vi a pi c k ~ u p or ho m e de l i v e r y . Th i s wo u l d pr o v i d e co n v e n i e n c e an d ti m e — s a v i n g be n e f i t s fo r sh o p p e r s . Ou r in v e n t o r y ra n g e wi l l in c l u d e a wi d e ra n g e of co n s u m e r go o d s , du r a b l e an d no n d u r a b l e go o d s . Ou r ex t e n s i v e in t e n d i n g ra n g e of qu a l i t y fo o d pr o d u c t s , fi r s t - cl a s s cu s t o m e r se r v i c e , an d th e ex c e l l e n t pr i c e - p e r f o r m a n c e ra t i o wi l l ma k e us ou r cu s t o m e r ' s id e a l gr o c e r y st o r e . We wi l l re c e i v e ca s h pa y m e n t s an d pr o v i d e el e c t r o n i c pa y m e n t me t h o d s to ma k e sh o p p i n g co n v e n i e n t fo r ou r cu s t o m e r s . Su l t a n Ha q u e ow n s Fa r m i n g t o n Fo o d & Sp i c e Ho u s e . He ha s go o d cu s t o m e r se r v i c e ex p e r i e n c e as he is al s o an ow n e r of a mo t e l . He ha s se e n th e ne e d fo r a gr o c e r y st o r e in th e ci t y of F ar m i n g t o n , as th e ci t y do e s n ' t ha v e an y co r p o r a t e ch a i n s li k e Wa l m a r t , or Ta r g e t , to se r v e th e co m m u n i t y , an d al s o wi t h th e in c r e a s e of de m a n d fo r ha l a l me a t be c a u s e of th e Mu s l i m po p u l a t i o n , he in t e n d s to st a r t th i s re t a i l fo o d st o r e . We wi l l sp u r st r a t e g i c pa r t n e r s h i p s wi t h re l i a b l e an d pr o f e s s i o n a l fu l ? l l m e n t co m p a n i e s to ha n d l e ou r su p p l y an d ou r sh i p p i n g . At Fa r m i n g t o n Fo o d & Sp i c e Ho u s e , ou r te a m me m b e r s wi l l be hi g h l y co m p e t e n t an d de d i c a t e d to th e Co m p a n y ; th e y wi l l be tr a i n e d to go th e ex t r a mi l e to re s o l v e an y co m p l a i n t fr o m ou r cu s t o m e r s . We ' l l as k $6 , 0 0 , 0 0 0 as SB A lo a n fr o m ou r lo c a l Ba n k . Th e fu n d s fr o m th e SB A lo a n wi l l be us e d to co v e r a va r i e t y of st a r t u p co s t s , in c l u d i n g th e pu r c h a s e of eq u i p m e n t , in v e n t o r y , ma r k e t i n g , an d le a s e h o l d im p r o v e m e n t s . Wi t h yo u r su p p o r t , we wi l l be pr o c e s s . We wi l l co n t i n u a l l y up h o l d ou r co m m i t m e n t to co n t i n u a l l y se r v e th e in t e r e s t of ou r cu s t o m e r s at Fa r m i n g t o n Fo o d & Sp i c e Ho u s e . We wi l l ma k e th e m th e fo c u s of ou r op e r a t i o n s wi t h ad e q u a t e su p p o r t of al l te a m me m b e r s . 7| P a g e Page 25 of 81 u, ~ Fa r m i n g t o n Fo o d & Sp i c e Ho u s e wi l l pr o f o u n d l y in v e s t in ef f e c t i v e ma r k e t i n g st r a t e g i e s to st i m u l a t e sa l e s of ou r pr o d u c t s . We ha v e ma d e pl a n s fo r un i q u e ma r k e t i n g an d ad v e r t i s e m e n t st r a t e g i e s th a t wi l l pr o v i d e us le v e r a g e to ca p t u r e a go o d ma r k e t sh a r e by pr o m o t i n g bu s i n e s s th o u g h so c i a l me d i a ma r k e t i n g , cr e a t i n g , an d de l i v e r i n g ?y e r s , re a c h to pe o p l e in co m m u n i t y ga t h e r i n g et c . We wi l l co m p e t e he a l t h i l y in th e re t a i l fo o d bu s i n e s s th r o u g h ro b u s t ex p e r i e n c e in th e bu s i n e s s in d u s t r y an d ex p e r t i s e , ma r k e t pr e s e n c e , pr a c t i c a l ma r k e t i n g to o l s , st r a t e g i c pa r t n e r s h i p s , an d sy n e r g i e s , am o n g ot h e r s . In th e ne x t th r e e ye a r s , Fa r m i n g t o n Fo o d & Sp i c e Ho u s e in t e n d s to cr e a t e an ic o n fo o d re t a i l br a n d th r o u g h la s e r — f o c u s e d ma r k e t i n g VI S I O N AN I ) MI S S I O N S’ l ‘ A T E M E l \ ' T At Fa r m i n g t o n Fo o d & Sp i c e Ho u s e , ou r mi s s i o n is to de l i v e r an ex c e p t i o n a l sh o p p i n g ex p e r i e n c e by of f e r i n g th e be s t se r v i c e , va l u e , qu a l i t y , an d fr e s h pr o d u c t s wh i l e be i n g go o d st e w a r d s of ou r en v i r o n m e n t an d gi v i n g ba c k to th e co m m u n i t i e s we se r v e . We ai m to ca p t u r e ma r k e t sh a r e an d cr e a t e mo r e si g n i ? c a n t th a n av e r a g e pr o ? t s . Fa r m i n g t o n Fo o d & Sp i c e Ho u s e fo c u s e s on cr e a t i n g an en v i r o n m e n t th a t is wa r m , fr i e n d l y , an d cl e a n . We ar e co m m i t t e d to ou r em p l o y e e s by tr e a t i n g th e m wi t h re s p e c t , fa i r n e s s , an d in t e g r i t y an d ex p o s i n g th e m to an at m o s p h e r e th a t fo s t e r s te a m w o r k an d pr o f e s s i o n a l de v e l o p m e n t . We wi l l be co m m i t t e d to sa t i s f y i n g cu s t o m e r s by pr o v i d i n g a br o a d se l e c t i o n of hi g h — q u a l i t y an d co m p e t i t i v e l y pr i c e d fo o d pr o d u c t s as we l l as ex c e p t i o n a l cu s t o m e r se r v i c e . Fa r m i n g t o n Fo o d & Sp i c e Ho u s e is pr o u d to an n o u n c e it s up c o m i n g de b u t as th e pr e m i e r gr o c e r y st o r e in F ar m i n g t o n , Mi n n e s o t a . Ov e r th e ne x t tw o to th r e e ye a r s , ou r go a l is to la u n c h ou r op e r a t i o n s , ex p a n d ou r ph y s i c a l fo o t p r i n t , gr o w ou r lo y a l cu s t o m e r ba s e , en h a n c e ou r re p u t a t i o n as a tr u s t e d pr o v i d e r of hi g h — q u a l i t y pr o d u c t s an d se r v i c e s , an d ge n e r a t e su b s t a n t i a l re v e n u e . We ar e ex c i t e d to em b a r k on th i s ne w ve n t u r e an d ar e co m m i t t e d to de l i v e r i n g BU S I N E S S OB J E C T I V E S - To ma k e qu a l i t y fo o d pr o d u c t s av a i l a b l e to th e ta r g e t ma r k e t - To tr a i n al l th e em p l o y e e s up to st a n d a r d s an d ma k e th e m aw a r e of cu s t o m e r re l a t i o n s h i p ma n a g e m e n t . I Co n t i n u a l l y ev a l u a t e an d re a c t to pe r f o r m a n c e is s u e s wh i l e pr o a c t i v e l y hi r i n g , 8| P a g e Page 26 of 81 id e v e l o p i n g , an d re t a i n i n g th e st o r e ' s te a m pr o m p t l y . 0 An a l y z e an d me a s u r e bu s i n e s s tr e n d s ; de v e l o p an d im p l e m e n t pl a n s to ma x i m i z e sa l e s an d me e t or ex c e e d go a l s an d ob j e c t i v e s . a To ke e p th e en v i r o n m e n t cl e a n an d ti d y , so cu s t o m e r s do n ' t ge t me s s y vi e w s . - Pr o v i d e hi g h — q u a l i t y ba s i c s at va l u e fo r af f o r d a b l e pr i c e s . 0 To pu r c h a s e a bu i l d i n g 0 To ra i s e $6 0 0 , 0 0 0 in ca p i t a l fu n d i n g KE Y S TO SU C C E S S 0 Gr e a t lo c a t i o n wi t h hi g h vi s i b i l i t y . A hi g h - t r a f ? c pl a c e wi t h co n v e n i e n t ac c e s s . 0 Se l l i n g pr o d u c t s th a t pe o p l e ne e d ev e r y da y fo r su r v i v a l . 0 Th e be s t pr o d u c t s an d ra t e s ~ We wi l l us e th e la t e s t te c h n o l o g y an d mo s t mo d e r n tr e n d s in th e co n v e n i e n c e st o r e li n e of bu s i n e s s . - Th e fr i e n d l y te a m of pr o f e s s i o n a l s wi t h tr a i n i n g in cu s t o m e r re l a t i o n s en a b l e s th e m to ac t ch e e r f u l l y , pr o f e s s i o n a l l y , an d ar t i c u l a t e l y ar o u n d cl i e n t s . 0 Th e ow n e r ' s go o d re p u t a t i o n . - Wo r d - o f — m o u t h , ad v e r t i s i n g , pr o m o t i o n s — on e cu s t o m e r ca n sp r e a d th e wo r d ab o u t ou r st o r e to fr i e n d s an d fa m i l y . - Co m p l y i n g wi t h al l re l e v a n t re g u l a t i o n s of th e Un i t e d St a t e s Re g u l a t o r y Bo a r d . 0 We l c o m i n g an d co m f o r t a b l e bu s i n e s s en v i r o n m e n t an d at m o s p h e r i c s , wi t h cu s t o m pr o p s . o Ma i n t a i n i n g a ro b u s t on l i n e pr e s e n c e wi t h +5 re v i e w s an d ra t i n g s . 0 We ar e ex e c u t i n g sa l e s an d ma r k e t i n g pl a n s wh i c h wi l l bu i l d cu s t o m e r aw a r e n e s s , cu s t o m e r di s c o v e r y , an d cu s t o m e r lo y a l t y . Th e fo l l o w i n g ar e th e va l u e s th a t wi l l gu i d e ou r op e r a t i o n s as a co m p a n y an d gi v e us di r e c t i o n in th e co n d u c t of ou r bu s i n e s s : 0 Co n v e n i e n c e 9| P a g e Page 27 of 81 ,1 . Ou r fa c i l i t y at Fa r m i n g t o n wi l l of f e r ma n y co n v e n i e n c e s to th e us e r s of ou r su p e r m a r k e t . We wi l l si m p l i f y th e ar t of sh o p p i n g . We wa n t ou r su p e r m a r k e t to be co n v e n i e n t to bu y fo o d pr o d u c t s fr o m , as we l l as ea s y to en t e r an d ex i t . Th i s is wh y we wi l l pu r c h a s e a bu i l d i n g wi t h an en v i r o n m e n t th a t is lu x u r i o u s an d he a l t h y . 0 En t r e p r e n e u r i a l i s m Ou r ap p r o a c h fo s t e r s th e hi g h e s t pr o f e s s i o n a l i s m , pe r s o n a l ow n e r s h i p , an d en t r e p r e n e u r i a l sp i r i t in al l ou r pe o p l e wh i l e ne v e r co m p r o m i s i n g on th e i r mo n e y an d he a l t h . Th i s is im p o r t a n t to ou r su c c e s s an d th e su p e r i o r re t u r n s we ai m to ac h i e v e fo r al l ou r st a k e h o l d e r s . - In s p i r a t i o n Li f e sh o u l d be fu n . Fo r ou r cu s t o m e r s , th a t me a n s af f o r d i n g th e m a go o d sh o p p i n g ex p e r i e n c e an d co m f o r t . Fo r em p l o y e e s , it me a n s bu i l d i n g a gr e a t pl a c e to wo r k . Sh o w i n g co m m u n i t y wi t h ex t r a lo v e an d ca r e . 0 Re s p e c t , In t e g r i t y , an d In c l u s i o n We do no t ju s t wa n t to wi n ; we wa n t to wi n th e ri g h t wa y . We wi l l ce l e b r a t e di f f e r e n c e s an d th e wa y s th e y ca n ch a n g e ho w we wo r k an d le a d to bi g g e r wi n s . We wi l l in v i t e di v e r s e pe r s p e c t i v e s , en s u r i n g we ta k e on ch a l l e n g e s ho n e s t l y , op e n l y , an d re s p e c t f u l l y . 0 Co n s u m e r s Fa r m i n g t o n Fo o d & Sp i c e Ho u s e ar e co n s u m e r fo c u s e d bu s i n e s s . We ar e co m m i t t e d of fo c u s i n g co n s u m e r fe e d b a c k . Ev e r y t h i n g we do sh o u l d be g i n an d en d wi t h ou r co n s u m e r s . Wh e n co n s u m e r s vi e w us as a da i l y ha b i t , it wi l l me a n we so l v e fu n d a m e n t a l ch a l l e n g e s an d de l i v e r fa n t a s t i c va l u e . We ar e wi l l i n g to be di l i g e n t an d pr o v i d e a co m p r e h e n s i v e ra n g e of fo o d pr o d u c t s fo r lo n g — t e r m co n s u m e r ha p p i n e s s . 0 Re l i a b i l i t y Fa r r n i n g t o n Fo o d & Sp i c e Ho u s e wi l l ta k e it s pr o m i s e s ve r y se r i o u s l y . Th e Co m p a n y wi l l 0 Si m p l i c i t y We ai m to ac h i e v e ou r ke y de l i v e r a b l e s ef f i c i e n t l y as a pa t h to in d u s t r y — l e a d i n g re t u r n s wh i l e ma i n t a i n i n g a cl e a r fo c u s on ex c e l l e n c e , qu a l i t y , su s t a i n a b i l i t y , an d co n t i n u o u s im p r o v e m e n t in ev e r y t h i n g we do . 10 | P a g e Page 28 of 81 V - Op e n n e s s We va l u e op e n re l a t i o n s h i p s an d co m m u n i c a t i o n ba s e d on in t e g r i t y , co o p e r a t i o n , tr a n s p a r e n c y , mu t u a l be n e ? t , wi t h ou r pe o p l e , cu s t o m e r s , su p p l i e r s , go v e r n m e n t s , an d so c i e t y in ge n e r a l . 11 | P a g e Page 29 of 81 MO D E L CA N V A S BU S I N E S S Kc ’ Ac ? v i ? e s 12 ] P a g e Cu s t o m e r Se g m e n t s ‘ Th e As i a n an d Mu s l i m po p u l a t i o n Th e Fa n n i n g t o n St a t e s po p u l a c e Page 30 of 81 Re v e n u e St r e a m s ‘- 1 Sa i l e s ‘ of fo o d pr o d u c t s in ou t su p e r m a r k e t I '_ Mc i n e y re a l i z e d fr o m th e de j i v é r y of go o d s ‘ 13 | P a g e Page 31 of 81 CO M P A N Y SU M M A R Y CO M P A N Y l1 \ ' F O R M A ’ I ‘ l O N \/ Co m p a n y Na m e : Fa n n i n g t o n Fo o d & Sp i c e Ho u s e Ad d r e s s : 70 5 8” ‘ St , Fa r m i n g t o n , MN 55 0 2 4 Ow n e r s h i p : Su l t a n Ha q u e We b s i t e : ** * E- m a i l : ha g u e s u l t a n 8 8 g z 0 y a h o o . c o m Te l e p h o n e No : 65 1 - 4 3 4 - 2 9 1 5 Le g a l St a t u s : In c . \\ \ \ \ \ CO M P A N Y CO N C E P T U A L I Z A T I O N Fa r m i n g t o n Fo o d & Sp i c e Ho u s e wa s es t a b l i s h e d be c a u s e Fa r m i n g t o n ci t y do e s no t cu r r e n t l y A ha v e an y gr o c e r y st o r e s . Fa r m i n g t o n an d ne i g h b o r i n g ci t i e s is a gr o w i n g po p u l a t i o n of di f f e r e n t et h n i c i t y an d ba c k g r o u n d . Se r v i n g su c h a bi g co m m u n i t y , we re s e a r c h e d th e de m a n d fo r gr o c e r y st o r e s fo r lo c a l an d ne i g h b o r i n g re s i d e n t s wi t h i n a co n v e n i e n t di s t a n c e . We ar e es t a b l i s h e d to ?l l th i s . We ar e in bu s i n e s s to ma k e a pr o ? t . Th u s , we wi l l se l l qu a l i t y an d he a l t h y fo o d pr o d u c t s to pe o p l e wh o co m e to pa t r o n i z e us . We wi l l gi v e th e m Va l u e in ex c h a n g e fo r th e i r mo n e y . We wi l l em p l o y ef f e c t i v e ma r k e t i n g an d op e r a t i o n a l st r a t e g i e s to en s u r e th a t Fa r m i n g t o n Fo o d & Sp i c e Ho u s e be c o m e s a ho u s e h o l d br a n d in th e Un i t e d St a t e s . CO M P A N Y LO C A T I O N Fa r m i n g t o n Fo o d & Sp i c e Ho u s e wi l l be lo c a t e d in Fa r m i n g t o n , Mi n n e s o t a , Un i t e d St a t e s of Am e r i c a . Th i s lo c a t i o n wi l l be a lu x u r i o u s bu i l d i n g th a t wi l l be us e d fo r re t a i l i n g ou r fo o d go o d s to DE M O G R A P I - I I C S or FA R M I N G T O N CI T Y , MI N N E S O T A In 20 1 9 , Fa r m i n g t o n , MN ha d a po p u l a t i o n of 22 . 9 l ( pe o p l e wi t h a me d i a n ag e of 33 . 7 an d a 14 I P a g e Page 32 of 81 me d i a n ho u s e h o l d in c o m e of $9 5 , 3 3 1 . Be t w e e n 20 1 8 an d 20 1 9 , th e po p u l a t i o n of Fa r m i n g t o n , MN gr e w fr o m 22 , 7 1 4 to 22 , 8 6 9 , a 0. 6 8 2 % in c r e a s e , an d it s me d i a n ho u s e h o l d in c o m e gr e w fr o m $9 2 , 6 9 9 to $9 5 , 3 3 1 , a 2. 8 4 % in c r e a s e . Th e fi v e la r g e s t et h n i c gr o u p s in Fa r m i n g t o n , MN ar e Wh i t e (N o n — H i s p a n i c ) (8 8 % ) , Tw o + (N o n - Hi s p a n i c ) (3 . 3 8 % ) , Wh i t e (H i s p a n i c ) (2 . 8 6 % ) , As i a n (N o n - H i s p a n i c ) (1 . 6 4 % ) , an d Bl a c k or Af r i c a n Am e r i c a n (N o n - H i s p a n i c ) (1 . 6 % ) . 0% of th e ho u s e h o l d s in Fa r m i n g t o n , MN sp e a k a no n — E n g l i s h la n g u a g e at ho m e as th e i r pr i m a r y la n g u a g e . 99 . 2 % of th e re s i d e n t s in Fa r m i n g t o n , MN ar e US ci t i z e n s . In 20 1 9 , th e me d i a n pr o p e r t y va l u e in Fa r m i n g t o n , MN wa s $2 5 4 , 2 0 0 , an d th e ho m e o w n e r s h i p ra t e wa s 86 . 3 % . Th e av e r a g e ca r ow n e r s h i p in Fa r m i n g t o n , MN wa s tw o ca r s pe r ho u s e h o l d . Mo s t pe o p l e in Fa r m i n g t o n , MN dr o v e al o n e to wo r k , an d th e av e r a g e co m m u t e ti m e wa s 27 . 5 mi n u t e s . CO M P A N Y RE S O U R C E S Th e fo l l o w i n g ar e th e re s o u r c e s th a t se r v i c e s wi l l ut i l i z e be Fa r m i n g t o n Fo o d & Sp i c e Ho u s e 0 We b s i t e 0 Co m p a n y St o r e (B u i l d i n g ) 0 Hu m a n Re s o u r c e s 0 Ow n e r 0 Ma n a g e r 0 Cu s t o m e r Se r v i c e NI A N A G E M E N T SU M M A R Y Su l t a n Ha q u e ow n s th e bu s i n e s s of Fa r m i n g t o n Fo o d & Sp i c e Ho u s e . He wi l l be in op e r a t i o n a mo t e l . Su l t a n Ha q u e wi l l ma k e ex e c u t i v e an d ad m i n i s t r a t i v e de c i s i o n s re g a r d i n g th e Co m p a n y ' s op e r a t i o n s an d fu n c t i o n a l i t y . He is ve r y 15 | P a g e Page 33 of 81 Cr e a t i v e , fo r w a r d - t h i n k i n g , ro b u s t , ha n d s - o n te a m le a d e r , hi g h l y ef f i c i e n t , an d re s u l t s — o r i e n t e d wi t h ex c e p t i o n a l ma n a g e m e n t an d or g a n i z a t i o n a l sk i l l s . He is an ex p e r t in ex e c u t i n g te a m - d r i v e n pr o c e s s im p r o v e m e n t s to in c r e a s e re v e n u e gr o w t h , op e r a t i o n a l ef ? c i e n c y , an d ex c e l l e n t st e w a r d s h i p of re v e n u e . He al s o ha s a st r o n g cu s t o m e r se r v i c e or i e n t a t i o n to wo r k ef f e c t i v e l y wi t h em p l o y e e s , le a d e r s h i p , vo l u n t e e r s , an d in v e s t o r s . He al s o ha s ou t s t a n d i n g in t e r p e r s o n a l sk i l l s an d a pr o v e n ab i l i t y to dr i v e pr o ? t a b i l i t y , ma n a g e an d nu r t u r e ta l e n t , de l i v e r sa l e s gr o w t h , fo r m st r a t e g i c pa r t n e r s h i p s , an d su c c e s s f u l l y im p l e m e n t ch a l l e n g i n g pr o j e c t s . Su l t a n an d Ra i h a n a ' s jo i n t re s p o n s i b i l i t y is to ov e r s e e an d de c i d e wh a t go e s on in th e bu s i n e s s , wh i c h al i g n s wi t h th e st a t e d go a l s an d ob j e c t i v e s . Th e y wi l l de v i s e al l me a n s an d st r a t e g i e s in op e r a t i o n , pu t t i n g th e i r en t r e p r e n e u r s h i p sk i l l s an d ex p e r i e n c e in t o th e bu s i n e s s wo r l d to he l p Fa r m i n g t o n Fo o d & Sp i c e Ho u s e ac h i e v e it s be s t st a n d a r d an d be c o m e th e pe o p l e ' s ?r s t ch o i c e . Or g a n i z a t i o n a l st r u c t u r e Ir 1 ou r be g i n n i n g da y s of op e r a t i o n , Fa r m i n g t o n Fo o d & Sp i c e Ho u s e wi l l op e r a t e on a le a n mo d e l as th e r e wi l l on l y be Su l t a n Ha q u e , Ra i h a n a Kh a n a m , an d a fe w fu l l - t i m e an d pa r t — t i m e Cu s t o m e r se r v i c e st a f f . We es t i m a t e d fo r th e wo r k i n g fo r th e Fa r m i n g t o n Fo o d & Sp i c e Ho u s e is to t a l 16 0 ho u r s . Su l t a n Ha q u e an d Ra i h a n a Kh a n a r n wi l l be pa i d mo n t h l y sa l a r y . Re s t of th e st a f f wi l l be pa i n by ho u r l y ac c o r d i n g to th e St a t e gu i d e l i n e an d ma r k e t ra t e . BU S I N E S S RI S K S AN D lV l I T I G A ' l ‘ l O N PR O C E S S E S As ex p e c t e d , Fa r m i n g t o n Fo o d & Sp i c e Ho u s e is no t ex e m p t e d fr o m th e ge n e r i c ri s k s fa c e d by al l ot h e r bu s i n e s s e s in th e re t a i l fo o d in d u s t r y in th e Un i t e d St a t e s . Wi t h th e em e r g e n c e of ou r Co m p a n y , po s s i b l e ri s k s wi l l li e in ar e a s ha v i n g to do wi t h ac c e p t a b i l i t y as a vi a b l e su b s t i t u t e fo r ot h e r , mo r e es t a b l i s h e d su p e r m a r k e t s an d gr o c e r y st o r e s . Ho w e v e r , as th e sc e n a r i o wa r r a n t s , st r a t e g i c st e p s wi l l be ta k e n to un d e r s t a n d th e s e li k e l y ch a l l e n g e s an d pr e p a r e to ef f i c i e n t l y pr e v e n t or de a l wi t h th e m . we ma y en c o u n t e r to su p p o r t ou r bu s i n e s s . In ad d i t i o n , we re c o g n i z e th e im p o r t a n c e of de v e l o p i n g an in n o v a t i v e ma r k e t i n g st r a t e g y th a t ef f e c t i v e l y al i g n s wi t h ou r co r p o r a t e im a g e an d re a c h e s ou r ta r g e t au d i e n c e . 16 | P a g e Page 34 of 81 We wi l l im p l e m e n t va r i o u s st r a t e g i e s to mi t i g a t e th e s e ri s k s an d en s u r e th e co n t i n u e d su c c e s s of ou r bu s i n e s s . - It in v e s t s su f ? c i e n t fu n d s in th e bu s i n e s s , so u r c i n g th e be s t pe r s o n n e l cr o p an d ad o p t i n g ef f e c t i v e st r a t e g i e s to pr o m o t e th e Co m p a n y an d it s ov e r a l l se r v i c e s . 0 I am mi n i m i z i n g ov e r h e a d co s t s , wh i c h in c r e a s e s th e bo t t o m — l i n e pr o ? t . 0 We ar e bu i l d i n g st r a t e g i c an d sy m b i o t i c pa r t n e r s h i p s wi t h th e ne c e s s a r y co m p a n i e s . 0 We ar e pr o v i d i n g cu s t o m e r s wi t h an ef f i c i e n t an d ef f e c t i v e fe e d b a c k st r u c t u r e . 17 | P a g e Page 35 of 81 PR O D U C T S AN D SE R V I C E S DE S C R I P T I O N Fa r m i n g t o n Fo o d & Sp i c e Ho u s e wi l l be a gr o c e r y st o r e se l l i n g va r i o u s fo o d pr o d u c t s . We wi l l so u r c e ma n y di f f e r e n t pr o d u c t s fr o m mu l t i p l e in d u s t r i e s , al l of wh i c h ar e fo o d pr o d u c t s , in c l u d i n g Me a t / F i s h (F r o z e n / U n f r o z e n ) , De l i , Da i r y Pr o d u c t s , Fr e s h Pr o d u c e , Gr a i n s , Sp i c e s , Ba k i n g Pr o d u c t s , Pa c k a g e d fo o d it e m su c h as Sn a c k s , Ba k e r y , Dr y Fr u i t s , Ca n n e d Fo o d (B e a n s , Ve g e t a b l e s , Fi u i t s , Tu n a Fi s h , To m a t o Sa u c e , Co r n ) . We wi l l al s o se l l ha l a l sl a u g h t e r e d an i m a l s pr o v i d e d in cu t ac c o r d i n g to ou r cu s t o m e r s ‘ ch o i c e . We ar e po i s e d to ha n d l e a va r i e t y of th i n g s . We wi l l fo c u s on in n o v a t i o n wi t h qu i t e a br o a d ra n g e of it e m s at af f o r d a b l e pr i c e s th a t cu s t o m e r s ca n tr u s t an d re l y on oc c a s i o n a l l y . We ' l l of f e r lo c a l an d im p o i t e d fo o d it e m s th a t ar e ra r e in th e lo c a l gr o c e r i e s . As a gr o c e r y st o r e pr o v i d i n g gr o c e r y pi c k - u p an d de l i v e r i e s , we wi l l de v e l o p a fu n c t i o n a l we b s i t e an d re g i s t e r on Do o r d a s h or In s t a c a i t . Li k e mo s t gr o c e r y st o r e s , th e gr o c e r y st o r e wi l l op e r a t e be t w e e n 6 am an d II pm . Sh o p p e r s wh o wa n t to ma k e co n t a c t l e s s pa y m e n t s ca n ea s i l y cr e a t e a pu r c h a s e us i n g Ap p l e pa y an d or Go o g l e Pa y . We wi l l be li c e n s e d an d re g i s t e r e d to op e r a t e in an d ar o u n d Fa m i i n g t o n Ci t y . Wi t h ou r in t e n t i o n to ac q u i r e mo r e fu n d s , we ho p e to ex p a n d ou r sc o p e of op e r a t i o n s . Ou r se r v i c e s in c l u d e : 0 We l c o m i n g ea c h of ou r cu s t o m e r s - We pr i o r i t i z e ou r cu s t o m e r ' s ne e d s an d gi v e th e m th e be s t cu s t o m e r ex p e r i e n c e . 0 We ar e so u r c i n g it e m s lo c a l l y an d in t e r n a t i o n a l l y to me e t th e ch o i c e s of ou r cu s t o m e r s . 0 Et c . IV I E T H O D S OF PA Y M E N T Ou r pa y m e n t po l i c y wi l l be in c l u s i v e be c a u s e we kn o w th a t di f f e r e n t pe o p l e pr e f e r di f f e r e n t pa y m e n t op t i o n s as it su i t s th e m si m u l t a n e o u s l y . - Ca s h Pa y m e n t a Pa y m e n t vi a ba n k tr a n s f e r 18 [ P a g e Page 36 of 81 'u o Cr e d i t Ca r d Pa y m e n t o Ap p l e pa y an d Go o g l e Pa y . - Po i n t of Sa l e s Gi v e n th e ab o v e , we ha v e ch o s e n ba n k i n g an d on l i n e bi l l pa y m e n t pl a t f o r m s to en a b l e ou r cu s t o m e r s to pa y us qu i c k l y . We wi l l ha v e a te a m of pe o p l e wh o so u r c e pr o d u c t s fo r us e in wh o l e s a l e co m p a n i e s wi t h fo o d pr o d u c t s fo r sa l e th a t we ca n pu r c h a s e in bu l k . We se l l al l ou r fo o d pr o d u c t s in th e US an d vi a th e we b s i t e we in t e n d to bu i l d . Pr i c i n g St r u c t u r e : Fa r m i n g t o n Fo o d & Sp i c e Ho u s e Pr i c i n g st r u c t u r e de ? n e s an d or g a n i z e s pr i c e pr o d u c t s an d se r v i c e s . Pr o d u c t pr i c e wi l l be wr i t t e n on th e pr o d u c t / s h e l f an d fo u n d on th e we b s i t e s . Al s o , me a t co m e r pr o d u c t pr i c e s wi l l be no t e d on th e bo a r d . I Pr e m i u m Pr i c i n g o We ar e ca t e g o r i z i n g pr e m i u m pr i c i n g fo r ra r e gr o c e r y it e m s an d se a s o n a l it e m s un a v a i l a b l e in th e ty p i c a l gr o c e r y st o r e . 0 Ec o n o m y Pr i c i n g o We of f e r sa l e pr i c e s du r i n g ce r t a i n Ho l i d a y s , se a s o n a l an d pr o m o t i o n a l sa l e s . - Bu n d l e Pr i c i n g o We ' l l be of f e r i n g sa l e pr i c e s on bu l k pu r c h a s e 19 | P a g e Page 37 of 81 MA R K E T AN A L Y S I S Ac c o r d i n g to Gr a n d Vi e w Re s e a r c h , gl o b a l fo o d an d gr o c e r y re t a i l is es t i m a t e d at a va l u e of $1 1 . 7 tr i l l i o n in 20 1 9 an d ha s be e n pr o j e c t e d to gr o w at a CA G R of 5. 0 % fr o m 20 2 0 to 20 2 7 . Th e ma r k e t is pr o p e l l e d by in c r e a s i n g di s p o s a b l e in c o m e , th e mi d d l e — c l a s s po p u l a t i o n , an d ra i s i n g br a n d aw a r e n e s s . ‘ Th e em e r g e n c e of e- c o m m e r c e al s o im m e n s e l y co n t r i b u t e s to th e ra p i d gr o w t h of th e fo o d an d gr o c e r y re t a i l ma r k e t . Th e ri s e in mo b i l e ph o n e us a g e ha s fo s t e r e d th e gl o b a l re t a i l e— c o m m e r c e in d u s t r y gr o w t h in re c e n t ye a r s . It ha s re v o l u t i o n i z e d th e ov e r a l l on l i n e sh o p p i n g ma r k e t gr o w t h . Th e US fo o d an d gr o c e r y re t a i l ma r k e t In 20 1 9 , th e to t a l sa l e s fr o m th e Un i t e d St a t e s gr o c e r y re t a i l we r e $6 8 2 . 8 6 bi l l i o n . Th i s is al m o s t tw i c e th e ma r k e t re v e n u e in 19 9 2 . 30 0 70 0 60 0 50 0 40 0 30 0 Sa l e s ‘: 1 bi l l i o n u. 5 , do l l a r : 20 0 I0 0 92 93 94 95 95 97 98 99 O0 Ul 02 03 O4 05 06 07 08 D9 10 1| 72 13 X4 15 I6 I7 l8 \9 So u r c e : li t t p s : / / \ v w w . s t a l i s t a . c o 1 n / s t a t i s t i c s / l 9 7 6 2 l / a n 1 1 u a l — g r o c e r y - s t o r e — s a l e s ~ i n ~ t l 1 e - u s ~ s i n c e — On Im p s ww w g r a n d v i e w r e s e a r c h . c o 1 n / i n d u s t r y - a n a l y s i s / f o o d - g r o c e i y - r e t a i I - ma r k e I # 2 ~ : ( e x t = T h e % 2 0 g l o b a l % 2 0 f o o d % 2 0 a n d % 2 0 g r o c e r y . 5 . 0 % 2 5 % 2 O f r o m % 2 0 2 ( ) 2 0 % 2 0 l o % 2 0 2 0 2 7 . 20 I P a g e Page 38 of 81 l4 Th e re t a i l fo o d in d u s t r y co m p r i s e s fo o d s so l d at fo o d re t a i l e r s su c h as gr o c e r y st o r e s , ma s s me r c h a n d i s e r s , dr u g st o r e s , co n v e n i e n c e st o r e s , an d fo o d se r v i c e fa c i l i t i e s . To t a l re t a i l an d fo o d se r v i c e sa l e s in th e Un i t e d St a t e s am o u n t e d to ab o u t 5. 7 5 tr i l l i o n US do l l a r s in 20 1 7 . 2 Th e Am e r i c a n re t a i l la n d s c a p e is ch a r a c t e r i z e d by le a d i n g fo o d re t a i l e r s su c h as Wa l m a r t , Kr o g e r , an d Co s t c o } Wa l m a r t (e x c l u d i n g Wa l m a r t In t e r n a t i o n a l an d Sa m ' s Cl u b ) ge n e r a t e d ne t sa l e s ‘ am o u n t i n g to 31 8 . 4 8 bi l l i o n US do l l a r s in 20 1 8 an d op e r a t e d 4, 7 6 1 st o r e s na t i o n w i d e . 5 Sh o p p e r s in th e Un i t e d St a t e s ma d e ab o u t 1. 6 tr i p s to gr o c e r y st o r e s pe r we e k in 20 1 8 . 6 Su r v e y s ha v e sh o w n th a t US co n s u m e r s te n d to sp e n d th e mo s t on gr o c e r i e s at wa r e h o u s e cl u b s su c h as Co s t c o , wi t h an av e r a g e of ab o u t 89 do l l a r s pe r sh o p p i n g tr i p . Ev e n th o u g h on l i n e gr o c e r y sh o p p i n g ha s ex i s t e d fo r ye a r s , mo s t co n s u m e r s st i l l pr e f e r to bu y gr o c e r i e s in st o r e s . 7 Ma r k e t Ne e d Th e re t a i l fo o d ma r k e t is ex p e c t e d to wi t n e s s co n t i n u o u s gr o w t h ow i n g to th e ri s i n g po p u l a t i o n of mi l l e n n i a l s , th e bo o m i n g fo o d pr o d u c t s ma r k e t , an d in c r e a s i n g de m a n d fo r he a l t h y an d qu a l i t y fo o d pr o d u c t s , am o n g ma n y ot h e r s . “ Th e ha l a l in d u s t r y in Mi n n e s o t a ha s be e n gr o w i n g in re c e n t ye a r s , wi t h an in c r e a s i n g nu m b e r of bu s i n e s s e s of f e r i n g ha l a l pr o d u c t s an d se r v i c e s to me e t th e ne e d s of th e st a t e ' s Mu s l i m po p u l a t i o n . Se v e r a l ha l a l - c e r t i ? e d re s t a u r a n t s , fo o d tr u c k s , an d gr o c e r y st o r e s ar e cu r r e n t l y op e r a t i n g th r o u g h o u t th e st a t e , pa r t i c u l a r l y in th e Tw i n Ci t i e s ar e a . In ad d i t i o n to fo o d - r e l a t e d bu s i n e s s e s , th e r e ar e ha l a l - c e r t i ? e d ba n k s , ?n a n c i a l se r v i c e s , an d he a l t h c a r e pr o v i d e r s in MN . Th e st a t e is al s o ho m e to se v e r a l ha l a l - c e r t i ? e d me a t pr o c e s s o r s su p p l y i n g ha l a l me a t to lo c a l an d re g i o n a l ma r k e t s . Th e gr o w i n g de m a n d fo r ha l a l pr o d u c t s an d se r v i c e s in MN ha s le d to th e es t a b l i s h m e n t of se v e r a l ha l a l ce r t i ? c a t i o n ag e n c i e s in th e st a t e . Th e s e ag e n c i e s ce r t i f y ha l a l pr o d u c t s an d se r v i c e s Ov e r a l l , th e ha l a l in d u s t r y in MN is ex p e c t e d to gr o w in th e co m i n g ye a r s , as th e st a t e ' s Mu s l i m po p u l a t i o n co n t i n u e s to in c r e a s e an d mo r e co n s u m e r s be c o m e in t e r e s t e d in ha l a l pr o d u c t s an d se r v i c e s . 21 | P a g e Page 39 of 81 We wi l l fu l f i l l th e s e de m a n d s by pr o v i d i n g a gr o c e r y st o r e th a t re t a i l s Ha l a l me a t . Fa r m i n g t o n Fo o d & Sp i c e Ho u s e wi l l of f e r hi g h — q u a 1 i t y fo o d pr o d u c t s in ou r cu t t i n g - e d g e , cu s t o m e r — c e n t r i c su p e i m a r l c e t . We wi l l fo c u s on pr o v i d i n g ou r ta r g e t ma r k e t wi t h fo o d pr o d u c t s as we sa t i s f y th e i r ne e d s , es p e c i a l l y in th e So u t h si d e of th e Me t r o ar e a . ht l p s : / / w w w . s t a t i s t a . c o m / s t a t i s t i c s / l 9 7 5 6 9 / a n n u a I — r e l a i l - a n d — t b o d — s e r v i c e x — s a I e s - i n - t | 1 e - u s‘ i n c e - I 9 9 2 / Im p s : / / w w w . s t a t i s t a . c o m / s l a t i s t i c s / 2 4 0 4 7 3 / f o o d - r e t a i 1 ~ r e v e n u e s - o t 1 t l 1 e ~ l e a d i n g — t b o d ~ I ‘ e I a 1 I e r s - o f l n o r l h ~ a m e r i c a / Im p s : / / w w w . s l a t i s t a l c o m / s t a t i s t i c s / 2 6 9 4 0 3 / n e b s a l e s - o f - w a l m a r t ~ w o r l d w i d e » b y ~ d i v i s i o n / 1m p s : / / w w w . s t a l i s l a c o m / s t a t i ' s/ 2 6 9 4 0 5 / n u n i b e r - o t 1 s t o r e s — 0 f ~ w a l m a 1 1 ~ w o r l d w i d e - s i n c e - 2 0 0 6 - b y - d i v i s i o n l Im p s : / / \ v w w . s t a t i s t a . c o m / s t a l i t‘ ‘/ 2 5 1 7 2 8 / w e e k l y - n u I n b e r — o f - u s - g r o c e r y — : ~ : | 1 o p p i n g — t r i p < — p e r — 1 1 o u s e h o l d / ht l p s : / / w w w . s t a t i S t a , c o m / s t a t i s t i c s / 2 9 2 9 3 3 / u s - s l i o p p e r s - ~ p r i m a | y — f o o d — s h o p p i n g — l o c a l i o n s — b y ~ t y p e / Im p s : / / w w u u g l o b e n e w s w i r e . c o m / n e w s — r e 1 e a s e / 2 0 2 0 / O 2 / 1 7 / l 9 8 5 6 5 7 / 0 / e n / U n i ( e d - S t a t e s - O n I i n e - G r o c e r y v M a r k e t - 20 2 0 — 2 0 Z 4 ~ R i s i n g ~ D e m a n ( l ~ f o 1 ‘ ~ G 1 ' o c e r y : A p p V xp a u s i o n ~ _ o f — _ B u s : i n e s s : M o d e l s : h t m l Im p s : / / w \ v w . a l lie d m ar k e t r e s e a r c h . c o m / o n 1 i n e - g r o c e i y - m a r k e t 5° .° ° . \ ‘ E 7 ‘ E " : ’ > ' : * ’ E \ ’ : — ‘ 22 | P a g e Page 40 of 81 V l\ / I A R K E T SE G M E N T A T I O N 9 Th e ma r k e t is se g m e n t e d as fo l l o w s : ~/ Ba s e d on Ca t e g o r y o Be v e r a g e s an d Da i r y Pr o d u c t s 0 Fr e s h Pr o d u c e 0 Ba k e r y , Br e a k f a s t , an d Ce r e a l 0 Me a t an d Po u l t r y Pr o d u c t s As sh o w n in th e se g m e n t a t i o n s of wh a t is so l d in gr o c e r y st o r e s , Fa i r n i n g t o n Fo o d & Sp i c e Ho u s e wi l l re t a i l al l th e pr o d u c t s th a t ar e fo u n d in th e se g m e n t a t i o n of th e pr o d u c t s ca t e g o r i e s of a gr o c e r y st o r e to op e r a t e at a st a n d a r d le v e l an d en s u r e sh o p p e r s al w a y s tr u s t th a t th e y ca n ?n d pr o d u c t s th a t th e y ne e d in ou r gr o c e r y st o r e . / Ba s e d on Sh o p p e r s 0 Ge n e r a t i o n X 0 Ge n e r a t i o n Z 0 Ba b y Bo o m e r s 0 Mi l l e n n i a l s (G e n Y) 0 Si l e n t Ge n e r a t i o n . Fa r m i n g t o n Fo o d & Sp i c e ta r g e t s an d wi l l be n e ? t ev e r y o n e in Fa r m i n g t o n an d su r r o u n d i n g ar e a s . Th e s e sh o w th e se g m e n t a t i o n s of sh o p p e r s wh o sh o p in gr o c e r y st o r e s ; we ar e es t a b l i s h e d to se r v e al l ma r k e t s . Ho w e v e r , a sp e c i ? c ta r g e t is pl a c e d on th e So u t h As i a n , Af r i c a n , an d So m a l i po p u l a t i o n s be c a u s e of ou r Ha l a l me a t . Gr o c e r y st o r e fo o d se r v i c e sh o p p e r s ar e mo s t co m m o n l y Ge n e r a t i o n Y or Ge n e r a t i o n X me m b e r s , wi t h 36 an d 35 pe r c e n t , re s p e c t i v e l y . Bo o m e r s ma k e up un d e r a qu a r t e r of al l su c h sh o p p e r s . Co n v e n i e n c e st o r e s se e yo u n g e r sh o p p e r s , wi t h vi r t u a l l y no me m b e r s of th e Si l e n t Ge n e r a t i o n us i n g su c h st o r e s . On l i n e sh o p p i n g wa s th e do m a i n of th e yo u n g e r ge n e r a t i o n s , an d we r e at t r a c t e d 23 | P a g e Page 41 of 81 By th e s e on l i n e - o n l y st o r e s . In Ju n e 20 2 0 , on l i n e gr o c e r y se r v i c e s be c a m e wi d e s p r e a d an d we r e us e d by tw o - t h i r d s of th e me m b e r s of Ge n e r a t i o n Z. TA R G E T MA R K E T In ge n e r a t i n g a hi g h , co n s i s t e n t , an d pr e d i c t a b l e le v e l of th e sa l e s re s u l t , ou r ta r g e t ma r k e t fo r th e hi g h — q u a l i t y pr o d u c t s in ou r st o r e wi l l be pe o p l e (m e n an d wo m e n ) . We pu t a sp e c i ? c ta r g e t on th e Mu s l i m po p u l a t i o n of Fa i m i n g t o n an d it s su r r o u n d i n g s , es p e c i a l l y So u t h As i a n s an d Af r i c a n co m m u n i t y So m a l i a n po p u l a t i o n s . De m o g r a p h y An a l y s i s of So u t h As i a n an d Af r i c a n , an d So m a l i Po p u l a t i o n in Da k o t a In Da k o t a co u n t y in 20 0 9 , th e Af r i c a n / B l a c k po p u l a t i o n an d As i a n po p u l a t i o n we r e 15 8 7 3 , an d As i a n Po p u l a t i o n wa s 18 0 6 6 . In 20 1 9 , th e Af r i c a n / B l a c k po p u l a t i o n wa s 31 1 1 6 , an d th e As i a n po p u l a t i o n wa s 22 3 4 3 , wh i c h sh o w s th a t di v e r s i t y ha s in c r e a s e d si g n i ? c a n t l y ov e r th e pa s t te n ye a r s . 24 | P a g e Page 42 of 81 E’ PE S T E L AN A L Y S I S Po l i t i c a l an a l y s i s 0 Th e Un i t e d St a t e s is po l i t i c a l l y st a b l e . 0 Ta x ra t e s ar e no t ou t r a g e o u s at 6. 8 7 5 % , as Mi n n e s o t a Ec o n o m i c an a l y s i s 0 Th e GD P gr o w t h is pr o j e c t e d to co m e do w n to 2. 0 % in 20 2 0 , 1. 9 % in 20 2 1 , an d 1. 8 % in 20 2 2 . ” 0 Th e r e is an ex c e l l e n t ec o n o m i c an d ?n a n c i a l en v i r o n m e n t fo r th e fo o d re t a i l se c t o r - Th e in ? a t i o n ra t e is mi n i m a l at 1. 9 0 % . " 0 Th e ba n k le n d i n g ra t e re m a i n s at 4. 7 5 % pe r an n u m . ” 0 Th e la b o r co s t is ex p e c t e d to be ar o u n d 11 5 . 9 7 po i n t s th i s ye a r . ” 0 EI A fo r e c a s t s re t a i l el e c t r i c i t y pr i c e at an av e r a g e of 13 Ce n t s / k W h . ” 0 Th e un e m p l o y m e n t ra t e is cu r r e n t l y pe g g e d at 3. 5 %. ‘ 5 So c i a l an a l y s i s 0 Hi g h mo b i l e pe n e t r a t i o n at 26 0 , 2 3 7 , 0 0 0 sm a r t p h o n e us e r s re p r e s e n t i n g 79 . 1 % sm a r t p h o n e pe n e t r a t i o n . '5 0 In c r e a s i n g di s p o s a b l e in c o m e 0 In c r e a s i n g ad o p t i o n of in t e r n e t sh o p p i n g be c a u s e of th e ou t b r e a k th e co r o n a v i r u s pa n d e m i c 0 Af f o r d a b l e ra t e s of in t e r n e t pa c k s tr a d i n g e c o n o m i c s . c o m / u n i t e d - s t a t e s / i n t l a t i o w c p i ‘7 l1 l i p s 2 / / \ \ / \ v w . c e i c d a t a . c o m / e n / i n d i c a t o x f u n i t e d — s t a t e s / b a n k - l e n d i n g — r a l e 13 ht t p s : / / t r a d i n g e c o n o m i c s x z o m / u n i l e d — s t a l e s / l a b o u r - c o s t s 1“ ht t p s 2 / / w w w . e i a . g o v / o u t l o o k s / s t e o / r e p o r t / e l e c l r i < : i t y . p h p 15 ht t p s : / / t r a d i n g e c o n o m i c s . c o m / u n i t e d — s t a 1 e s / u n e m p l o y m e n t - r a t e '6 Im p s : / / n e w z o o . c o m / i n s i g h t s / r a n k i n g s / t 0 p — c o u n t r i e s - b y - s m a r t p l 1 o n e — p e n e t r a t i o n » a n d - u s e 1 ' s / 25 | P : - a g e Page 43 of 81 -1 Te c h n o l o g i c a l An a l y s i s 0 Gr o w i n g te c h n o l o g i c a l de p l o y m e n t 0 In t e r n e t sh o p p i n g is on th e ri s e gl o b a l l y 0 In t r o d u c t i o n of th e la t e s t re t a i l te c h n o l o g i e s En v i r o n m e n t a l An a l y s i s 0 Th e r e is a gr o w i n g co n c e r n ab o u t th e so u n d ma n a g e m e n t of th e en v i r o n m e n t to at t a i n su s t a i n a b l e de v e l o p m e n t , po v e r t y re d u c t i o n , an d ex c e l l e n t he a l t h of th e po p u l a t i o n an d th e en v i r o n m e n t . 0 Th e r e is pr e m i u m en v i r o n m e n t a l se c u r i t y in th e co u n t r y wi t h th e us e of te c h n o l o g i e s . - Th e ne e d to re d u c e ca r b o n fo o t p r i n t by sh i f t i n g to a re n e w a b l e en e r g y so u r c e ra t h e r th a n co a l , nu c l e a r , an d ga s to ge n e r a t e po w e r . Le g a l An a l y s i s ” 0 Di f f e r i n g st a t e s an d co u n t r y ta x ex p e c t a t i o n s an d st a n d a r d s . I Pa t e n t s , tr a d e m a r k s , an d co p y r i g h t s in f r i n g e m e n t s 0 Pr i v a c y in t r u s i o n an d da t a br e a c h ” 0 Sh i p p i n g Re s t r i c t i o n s - Ne c e s s a r y PC I co m p l i a n c e *7 ht t p s z / / w w w b i g c o m m e r c e c o m / b i o g / o n l i n e — b u s i n e s s - | a w s / *3 ht l p s : / / w w w . e u r o l o g o c r g / c o m m o n - l e g a l » I s s u e s - i a c e d — b y ~ e ~ c o m m e r c c - b u s i n e s s e s / 26 | P a g e Page 44 of 81 PO R T E R ' S FI V E FO R C E S OF PR O F I T A B I L I T Y Th r e a t s of Ne w En t r a n t s Ba r g a i n i n g po w e r of Co n s u m e r s HI G H Co m p e t i t v e Ri v a r l y HI G H Th r e a t s of Su b s t i t u t e s HI G H Ba r g a i n i n g po w e r of Su p p l i e r s LO W Th r e a t s of Ne w En t r a n t s Th e th r e a t s of ne w en t r a n t s ar e co n s i d e r e d ME D I U M , as th e in d u s t r y re q u i r e s pr o f e s s i o n a l i s m an d ex p e r i e n c e in de l i v e r i n g be s t pr a c t i c e s . It al s o re q u i r e s lo w ca p i t a l in v e s t m e n t wh e n st a r t i n g on a st a n d a r d sc a l e . We wi l l di f f e r e n t i a t e th e bu s i n e s s wi t h ou r st r a t e g i c lo c a t i o n , qu a l i t y ar c h i t e c t u r a l an d mo d e r n fa c i l i t i e s fo r th e re l a t i v e ta r g e t ma r k e t , qu a l i t y of se r v i c e an d fo o d pr o d u c t s , an d mo t i v a t e d st a f f . We wi l l st a y in f o r m e d in th e ma r k e t to ma x i m i z e th e op p o r t u n i t i e s an d ch a n g i n g tr e n d s . Ba r g a i n i n g po w e r of Bu y e r s Fa i m i n g t o n Fo o d & Sp i c e Ho u s e wi l l pe n e t r a t e th e ma r k e t an d ex p a n d to ot h e r se r v i c e ar e a s th r o u g h co m p e t i t i v e pr i c e s , hi g h — q u a l i t y fo o d pr o d u c t s , le s s co s t l y de l i v e r y , an d ex c e p t i o n a l Cu s t o m e r s ge t hi g h ex p e c t a t i o n s an d th e ri g h t to ma k e mo r e de m a n d s co n c e r n i n g th e in f o r m a t i o n pr o v i d e d to th e m re g a r d i n g th e qu a l i t y an d pr i c e of pr o d u c t s . 27 | P a g e Page 45 of 81 Th r e a t of Su b s t i t u t e s Th e th r e a t of su b s t i t u t e s in th e in d u s t r y is co n s i d e r e d HI G H . Co m p e t i n g st a n d a r d fo o d pr o d u c t s re t a i l e r s an d on l i n e re t a i l e r s al s o of f e r th e sa m e pr o d u c t s as ou r s . Th e r e f o r e , we wi l l fo c u s on di f f e r e n t i a t i n g ou r se r v i c e fr o m co m p e t i t o r s by se l l i n g hi g h — q u a l i t y pr o d u c t s an d pr o v i d i n g a be t t e r ov e r a l l cu s t o m e r ex p e r i e n c e in a gr o c e r y st o r e wh i l e le v e r a g i n g th e co n v e n i e n c e an d lu x u r y ou r fa c i l i t y of f e r s . Ba r g a i n i n g po w e r of su p p l i e r s Al t h o u g h th e su p p l i e r s ar e on e of th e fo r c e s th a t sh a p e th e co m p e t i t i v e la n d s c a p e of th e fo o d an d gr o c e r y re t a i l in d u s t r y , th e y ma y th r e a t e n to ra i s e pr i c e s or re d u c e th e qu a l i t y of go o d s . Ho w e v e r , th e y ha v e li m i t e d po w e r ov e r th e bu s i n e s s as th e Co m p a n y ha s hi g h e r sw i t c h i n g co s t s . He n c e , th e ba r g a i n i n g po w e r of su p p l i e r s in th e in d u s t r y is co n s i d e r e d ME D I U M . Co m p e t i t i v e Ri v a l r y I Th e in d u s t r y ' s ri v a l r y le v e l is HI G H be c a u s e of th e la r g e nu m b e r of pl a y e r s , wh i c h ha s al s o le d to hi g h e r co m p e t i t i o n . In c r e a s e d co m p e t i t i o n ha s gi v e n bu y e r s th e up p e r ha n d ov e r se l l e r s , wi t h tr a n s p a r e n c y in pr o d u c t pr i c i n g an d a mo r e co m p r e h e n s i v e ra n g e of pr o d u c t s be i n g ea s i l y ac c e s s i b l e at th e be s t pr i c e s . 28 | P a g e Page 46 of 81 SW O T AN A L Y S I S Th e SW O T an a l y s i s st a n d s fo r th e St r e n g t h of th e Co m p a n y , it s We a k n e s s th a t ne e d s to be wo r k e d on ; Op p o r t u n i t i e s op e n e d to th e Co m p a n y as it st a r t s op e r a t i o n , an d th e th r e a t ag a i n s t it s ex i s t e n c e . 6' St r e n g t h s Di v e r s e co n s u m e r pr o d u c t op t i o n s : Th e gr o c e r y st o r e wi l l ha v e di f f e r e n t ty p e s of pr o d u c t s so l d in th e st o r e ra n g i n g fr o m Da i r y pr o d u c t s , Me a t , fr o z e n ?s h , Fr e s h Pr o d u c e , et c . , fr o m wh i c h co n s u m e r s ca n ch o o s e fr o m . Co s t ad v a n t a g e s : We wi l l en s u r e we cu t ou r co s t s in ev e r y wa y we ca n by re d u c i n g th e am o u n t sp e n t on ma r k e t i n g an d th e nu m b e r of em p l o y e e s em p l o y e d to of f e r ou r pr o d u c t s at lo w e r pr i c e s . Ex p e r i e n c e d ma n a g e m e n t te a m : Su l t a n M Ha q u e an d Ra i h a n a Kh a n a m ar e ex p e r i e n c e d in cu s t o m e r se r v i c e as th e y ar e ow n e r s of a mo t e l . Th e y wi l l dr i v e th e gr o c e r y st o r e to an en v i a b l e he i g h t wi t h ex c e l l e n t cu s t o m e r se r v i c e . Cu s t o m e r lo y a l t y : Ou r ex c e l l e n t cu s t o m e r se r v i c e wi l l he l p in c r e a s e cu s t o m e r lo y a l t y in ou r st o r e be c a u s e th e y ar e as s u r e d we wi l l al w a y s se r v e th e m . 4° We a k n e s s e s 29 | P a g e La c k of fi n a n c e : Th e fu n d to fi n a n c e an d ki c k st a r t ou r bu s i n e s s op e r a t i o n is 70 0 , 0 0 0 , wh i c h is no t re a d i l y av a i l a b l e as th e ow n e r ca n on l y in v e s t $1 0 0 , 0 0 0 in pe r s o n a l fu n d s . Co s t st r u c t u r e : Op e n i n g a st a n d a r d gr o c e r y st o r e re q u i r e s ma n y fu n d s . As st a t e d ab o v e , th e ow n e r ca n n o t ca r r y al l th e s e ex p e n s e s wi t h o u t ad d i t i o n a l fu n d s . La c k of sc a l e co m p a r e d to ou r pe e r s wh o ha v e al r e a d y ga i n e d gr o u n d in th e in d u s t r y : As a ne w co m p a n y , we do no t ha v e th e na m e th a t ou r co m p e t i t o r s , su c h as Wa l m a r t an d Ta r g e t , ha v e ma d e . Th e y ma y or d e r th e i r pr o d u c t s on l i n e an d ha v e th e m de l i v e r e d si n c e th e r e is no n e in Fa r m i n g t o n Ci t y . Page 47 of 81 . Op p o r t u n i t i e s Ne w pr o d u c t s an d se r v i c e s : We ar e a ne w co m p a n y . Pe o p l e ge n e r a l l y pa t r o n i z e ne w es t a b l i s h m e n t s to te s t th e i r pr o d u c t s an d se r v i c e s . Fi r s t gr o c e r y st o r e s in Fa m i i n g t o n In c r e a s e in di s p o s a b l e in c o m e : Wh e n di s p o s a b l e in c o m e in c r e a s e s , ho u s e h o l d s ha v e mo r e mo n e y to sp e n d . An in c r e a s e in co n s u m p t i o n wi l l in c r e a s e ou r sa l e s an d ea r n i n g s . Th e on l i n e ma r k e t : Th e in t e m e t br i d g e s th e ga p be t w e e n ou r co n s u m e r s an d us . Co n s u m e r s ca n ea s i l y vi s i t ou r we b s i t e or us e In s t a c a r t or Do o r d a s h to vi s i t ou r st o r e fr o m th e co m f o r t of th e i r ho m e s . La t e s t te c h n o l o g y : We wi l l in t e g r a t e th e ne w e s t te c h n o l o g y on ou r we b s i t e to en s u r e we pr o v i d e ea s y pu r c h a s e s fo r al l co n s u m e r s . 4* Th r e a t s 30 | P a g e Ma t u r e ma r k e t s : Th i s is th e st a g e wh e r e th e ra t e of gr o w t h sl o w s . Be c a u s e th e r e is li t t l e gr o w t h , co m p a n i e s in th e in d u s t r y en d up wi t h ex c e s s in v e n t o r y an d or ca p a c i t y . Th i s ca n of t e n pr e s s u r e pr o ? t s , as co m p a n i e s di s c o u n t pr i c e s to el i m i n a t e sp a r e ca p a c i t y . Ec o n o m y do w n t u r n : Re c e s s i o n s im p a c t ma n y bu s i n e s s e s du e to ti g h t e n i n g cr e d i t co n d i t i o n s an d sl o w e r de m a n d . St i f f co m p e t i t i o n : Fa c i n g in t e n s e co m p e t i t i o n fr o m si m i l a r co m p a n i e s . Vo l a t i l e co s t s : Fl u c t u a t i o n s in pr i c i n g ca n af f e c t ou r bu s i n e s s ; we ma y bu y a pr o d u c t wh e n th e pr i c i n g is hi g h an d se l l at a lo w e r co s t de p e n d i n g on th e av a i l a b l e pr i c e th e pr o d u c t is be i n g pr i c e d . In ? a t i o n : In ? a t i o n s re d u c e pu r c h a s i n g po w e r si n c e mo r e mo n e y is ne e d e d to pu r c h a s e th e sa m e it e m s . Page 48 of 81 CO M P E T I T O R AN A L Y S I S We ha v e ca n i e d ou t ou r re s e a r c h an d re a l i z e d th a t we do no t ha v e co m p e t i t o r s in th e lo c a l i t y of ou r fa c i l i t y as we wi l l be th e fi r s t gr o c e r y st o r e in ou r lo c a t i o n . Ho w e v e r , ou r co m p e t i t o r s ar e ot h e r co n v e n i e n c e st o r e s an d ch a i n su p p l y st o r e s in su r r o u n d i n g ci t i e s . Ou r bu s i n e s s is mo d e l e d af t e r co m p e t i t o r s , bu t th e ma n a g e m e n t ha s co n c l u d e d re s e a r c h . It ha s be e n ab l e to st r a t e g i z e an d fa s h i o n ou t wa y s to en a b l e th e Co m p a n y to ca p t u r e a si z e a b l e ch u n k of th e ma r k e t in th e in d u s t r y . We ' l l of f e r lo c a l an d im p o r t e d fo o d it e m s th a t ar e ra r e in th e lo c a l gr o c e r i e s . Al s o , we wi l l of f e r fr e s h l y ha l a l sl a u g h t e r e d an i m a l s (s u c h as co w , go a t , la m b , an d ch i c k e n ) fr o m st a t e - c e r t i ? e d sl a u g h t e r h o u s e s we e k l y . We ' l l pr o v i d e th e ou t ba s e d on cu s t o m e r pr e f e r e n c e , su c h as T— b o n e st e a k s , Gr o u n d Be e f , Ch u c k , Ri b s , Sh o r t li o n , Ro u n d , sh a n k , et c . Al s o , we wi l l cu t an d sk i l l ?s h ac c o r d i n g to th e cu s t o m e r ' s ch o i c e . Ev e r y o n e as s o c i a t e d wi t h th e Co m p a n y wi l l do ev e r y t h i n g po s s i b l e to en s u r e th a t al l th e cl i e n t s ge t qu a l i t y an d he a l t h y fo o d pr o d u c t s an d sa t i s f a c t o r y se r v i c e s so th a t fu t u r e bu s i n e s s an d re f e r r a l s ar e no t at ri s k . Ma r k e t i n g st r a t e g i e s wi l l bu i l d on th i s mo d e l , ta k i n g ad v a n t a g e of pr e c i p i t a t i n g ev e n t s , fo s t e r i n g wo r d - o f — m o u t h re c o m m e n d a t i o n s , an d cr e a t i n g sa t i s f a c t i o n th r o u g h in t e r a c t i n g wi t h fu t u r e an d pr e s e n t cu s t o m e r s . 31 | P a g e Page 49 of 81 MA R K E T I N G AN D SA L E S ST R A T E G Y MA R K E T I N G ST R A T E G Y At Fa r m i n g t o n Fo o d & Sp i c e Ho u s e , ou r st r a t e g y wi l l be ba s e d on ca p t u r i n g a hi g h pe r c e n t a g e of ma r k e t sh a r e s by of f e r i n g ex c e l l e n t an d af f o r d a b l e fo o d pr o d u c t s an d cu s t o m e r — ? i e n d l y , hi g h - qu a l i t y se r v i c e to al l ou r cu s t o m e r s . Ma r k e t i n g Ob j e c t i v e s a. To at t r a c t ma n y Am e r i c a n sh o p p e r s so th a t we ga i n a si g n i ? c a n t ma r k e t sh a r e an d es t a b l i s h ou r cl i e n t ba s e . b. Es t a b l i s h re l a t i o n s h i p s wi t h cu s t o m e r s wi t h i n th e ta r g e t e d ma r k e t . We wi l l ma k e a pr o p e r ap p r o a c h by ha v i n g th e s e cu s t o m e r s li s t e d ou t an d re a c h e d wi t h ou r st r a t e g i e s , so th e y kn o w th e be n e ? t s of al l o w i n g us to se r v e th e m . c. Im p l e m e n t a lo c a l ca m p a i g n wi t h th e Co m p a n y ' s ta r g e t e d ma r k e t vi a th e us e of : I Se a r c h En g i n e Op t i m i z a t i o n 0 Me d i a Ad v e r t i s e m e n t s . 0 So c i a l Me d i a Ma r k e t i n g . I Ge t in v o l v e d wi t h So c i a l ac t i v i t i e s (C S R ) I Sp e c i a l Pr o m o t i o n s Im p l e m e n t a t i o n We wi l l di v i d e ou r ma r k e t i n g ca m p a i g n in t o tw o pa r t s , 1. On l i n e / W e b — b a s e d Ma r k e t i n g 2. Of ? i n e / D o m e s t i c Ma r k e t i n g Ou r pr i m a r y fo c u s wi l l be on l i n e / w e b - b a s e d ma r k e t i n g be c a u s e we ar e wi l l i n g to co v e r ev e r y re g i o n of Mi n n e s o t a , Un i t e d St a t e s . On l i n e / We b - b a s e d Ma r k e t i n g Th e we b - b a s e d ma r k e t i n g ca m p a i g n ca n be di v i d e d in t o ?v e di f f e r e n t ca t e g o r i e s . Th e ro a d m a p is as fo l l o w s . 32 | P a g e Page 50 of 81 E~ m a i | - Ma r k e t i n g \ 1. SE O a) On - p a g e Op t i m i z a t i o n — be f o r e do i n g an y t h i n g , we wi l l op t i m i z e ou r bl o g pa g e ?r s t . It wi l l in c l u d e ti t l e s , he a d i n g s , co n t e n t , an d im a g e s . b) Gu e s t Po s t i n g — We wi l l pu b l i s h ar t i c l e s on se v e r a l fo r u m s , we b s i t e s , an d bl o g s . Ev e n to d a y , it ge n e r a t e s re s u l t s an d is a be t t e r wa y to ge t an ex c e l l e n t co n t e x t u a l li n k 2. E- m a i l Ma r k e t i n g - Em a i l ma r k e t i n g is an ex c e l l e n t wa y to co m m u n i c a t e wi t h po t e n t i a l cu s t o m e r s . Th e mo r e we ma k e th e be n e ? t s of ou r se r v i c e s kn o w n an d th e mo r e e- m a i l s ar e se n t , th e hi g h e r ou r ch a n c e of ge t t i n g mo r e cu s t o m e r s on ea c h of ou r we b s i t e s . We wi l l th u s em p l o y th e us e of th e fo l l o w i n g ma r k e t i n g me t h o d s : - Se n d e- m a i l s to ol d an d ne w cu s t o m e r s ab o u t ou r la t e s t pr o d u c t s an d im p r o v e m e n t s . 00 Gr e a t at t i t u d e in ev e r y e- m a i l se n t to th e m . 0 It wo u l d be gr e a t to ke e p th e di s c u s s i o n in ev e r y e- m a i l ?i e n d l y . 0 We wi l l se n d th e m e- m a i l s du r i n g th e ho l i d a y s , wi s h i n g th e m we l l . It is go o d 33 I P a g e Page 51 of 81 th a t we wr i t e th e m fo r so m e t h i n g ot h e r th a n mo n e y . 3. PF C a) Go o g l e Ad W o r d s — We wi l l us e Go o g l e Ad W o r d s to ge t ou r we b s i t e s of f th e gr o u n d fa s t by dr i v i n g ta r g e t e d tr a f ? c . b) Fa c e b o o k Ad s — Fa c e b o o k Ad s ar e an ex c e l l e n t wa y to bu i l d up a ma s s e- m a i l li s t or fa n ba s e fo r th e bu s i n e s s . We wi l l ma k e us e of Fa c e b o o k ad s to in c r e a s e ou r us e r ba s e . 4. So c i a l Me d i a a) So c i a l Me d i a Pr o ? l e s — Ha v i n g Tw i t t e r , Fa c e b o o k , an d Go o g l e + pr o ? l e s he l p s co m m u n i c a t e wi t h cu s t o m e r s an d bu i l d br a n d aw a r e n e s s . We wi l l us e th i s as a pa t h to ge t cl o s e r to ou r cu s t o m e r s . b) Se r v i c e Re v i e w s - Th i s is al s o a st r o n g ma r k e t i n g st r a t e g y . We ho p e to se r v e ou r cu s t o m e r s wi t h qu a l i t y an d af f o r d a b i l i t y , ma k i n g th e m in t r o d u c e ou r su p e r m a r k e t to ot h e r s . A go o d re v i e w of a sa t i s ? e d cu s t o m e r is va l u a b l e to at t r a c t ma n y ot h e r pe o p l e . 5. We b s i t e Pr o m o t i o n - Fa r m i n g t o n Fo o d & Sp i c e Ho u s e wi l l al s o of f e r we b s i t e pr o m o t i o n to en s u r e a ma s s i v e aw a r e n e s s of ou r we b s i t e an d it s be n e ? t s . Th i s wi l l se e ma n y in t e m e t us e r s tu r n i n g to ou r ap p s 6. Ot h e r s a) Vi d e o Ma r k e t i n g —— Vi d e o ma r k e t i n g is al s o su i t a b l e , ma i n l y do n e vi a Yo u T u b e . We us e th i s to in t r o d u c e ou r pl a t f o n n . b) Fo r u m s an d Q an d si t e s — Pr o v i d e so l u t i o n s fo r Q & A si t e s to le t pe o p l e kn o w ab o u t Fa r m i n g t o n Fo o d & Sp i c e Ho u s e an d po s t on me d i a to st a r t co n v e r s a t i o n s ab o u t th e be n e ? t s of ou r pl a t f o r m . Of f l i n e Ma r k e t i n g Of ? i n e ma r k e t i n g is th e se c o n d pa r t of ou r ma r k e t i n g ca m p a i g n . It is cr i t i c a l in th e ea r l y da y s to br i n g ou r se r v i c e to th e at t e n t i o n of ou r ta r g e t ma r k e t . Mo v i n g fo r w a r d , cl i e n t wo r d — o f — m o u t h 34 | P a g e Page 52 of 81 re c o m m e n d a t i o n s an d vi s u a l tr i b u t e s wi l l ac c e l e r a t e th e po t e n t i a l cu s t o m e r ' s kn o w l e d g e of ou r pr o d u c t s an d se r v i c e s an d co n t r i b u t e si g n i ? c a n t l y to th e on g o i n g gr o w t h of ou r cu s t o m e r ba s e . Th i s wi l l ma i n l y in c l u d e a) Me d i a Ma r k e t i n g — We wi l l ad v e r t i s e ou r su p e r m a r k e t on te l e v i s i o n , ra d i o , an d ma n y po p u l a r pr o g r a m s . Th i s is a hi g h — c o s t ma r k e t i n g me t h o d bu t is ne e d e d at th e ea r l y st a g e of th e bu s i n e s s . It wi l l le a d pe o p l e to co m e to ou r su p e r m a r k e t to le a r n wh a t we ar e al l ab o u t . b) St r e e t Ba n n e r s — An o t h e r wa y to ge t in f o r m a t i o n ab o u t Fa r m i n g t o n Fo o d & Sp i c e Ho u s e is to en g a g e ro a d s i d e ba n n e r s , wh i c h ha v e be e n re s e a r c h e d to ha v e hi g h co v e r a g e of a ta r g e t au d i e n c e . Ou r ba n n e r s wi l l be pl a c e d st r a t e g i c a l l y on va r i o u s st r e e t s to ma k e ma n y mo r e pe o p l e aw a r e of th e gr e a t be n e ? t s th e y ar e mi s s i n g in ou r su p e r m a r k e t . c) Co r p o r a t e So c i a l Re s p o n s i b i l i t y — We wi l l ge t in v o l v e d wi t h re l a t e d so c i a l ac t i v i t i e s wi t h ou r br a n d na m e to ge n e r a t e a po s i t i v e pi c t u r e of ou r su p e r m a r k e t to w a r d s so c i e t y . Th i s is on e of th e mo d e r n ma r k e t i n g st r a t e g i e s th a t ma n y or g a n i z a t i o n s ar e us i n g . Co n t r i b u t i n g to th e co m m u n i t y wi l l br i n g th e m ba c k to ou r su p e r m a r k e t . SA L E S ST R A T E G Y I We wi l l en s u r e a lu x u r i o u s fa c i l i t y th a t gi v e s pe o p l e a co n v e n i e n t an d po s i t i v e sh o p p i n g ex p e r i e n c e . 0 We wi l l en s u r e ou r we b s i t e ha s a us e r - f r i e n d l y in t e r f a c e an d is ea s i l y na v i g a t e d . I We wi l l ma k e en s u r e ou r we b s i t e is al w a y s up an d wi t h o u t an y gl i t c h e s . We ar e th u s go i n g to ma k e us e of a re l i a b l e ho s t i n g co m p a n y . 0 We wi l l en g a g e ou r cu s t o m e r s in Lo y a l t y Pr o g r a m s 0 Ou r pr o d u c t co s t s wi l l be at af f o r d a b l e pr i c e s . 35 | P a g e Page 53 of 81 2 FI N A N C I A L PL A N Th e ?n a n c i a l pl a n wi l l de s c r i b e th e ec o n o m i c ac t i v i t i e s of Fa r m i n g t o n Fo o d & Sp i c e Ho u s e , th e us e of th e fu n d s re q u i r e d to ke e p up ou r bu s i n e s s , al o n g wi t h th e pr o j e c t e d in c o m e st a t e m e n t an d st a t e m e n t of ?n a n c i a l po s i t i o n . AS S U M P T I O N S 0 Th e co r p o r a t e in c o m e ta x ra t e is as s u m e d to be 9. 8 0 % . 0 Th e st a r t u p re q u i r e m e n t s of th e bu s i n e s s wi l l be ?n a n c e d wi t h a lo a n of $6 0 0 , 0 0 0 al o n g s i d e an ow n e r ' s eq u i t y of $1 0 0 , 0 0 0 . TI i f t ' é ” r " ‘ e " s ‘ t ‘ 1 ' i 3 a T e ‘ ” ’ Pr o j e c t e d In v e s t m e n t Ow n e r ' s Eq u i t y WA C C 3. 9 9 % 3 _ N "E ’T ( ) Y ) ' , 6 o T ) . ® WW LO A N AM O R T I Z A T I Q N i: ( ; i l l 7 7 7 7 7 "W 7 ' ""’ ” ’ ’ ‘? ’ "W T ‘ ' W '7 !’ , 1 : i g c _ i p a , L , , , , , , , , , , , . , _ , , , , , , .. , , § 9 ° _ a 9 9 9 , , , , , , , , , ,, , ', , ,,, , Lo a n T c r m 30 'i i { t ’ e ’ F é § t " " " ' '"'m ” " ' " ’ ' W 0‘ "W '§ . § ' 5 W { ' " 7 ' ' ' M ‘ ‘ 39 2 1 , , _ . -, , ., , , , _ ., , , Lo n n § ( e ‘ : i i : W "" ” " 3 " ' ' 11 ' " ' ' " “" 7 " ' In t e r e s t W? i x m e n t To t a l b e b t _§ e : v i s s . . Re m a i n i n g Pr i n c i p a l 60 0 , 0 0 58 9 , 2 8 4 57 8 , 1 4 1 56 6 , 5 5 2 55 4 , 5 0 2 54 1 , 9 7 1 52 8 , 9 3 9 ; 51 5 , 3 8 8 0 ) ,§ ! ° a 7 1 5 ) (W 4 4 ) (1 3 2 5 5 9 5 ) , ,( ! % » § 3 , 1 . ) _ . . £1 , 3 2 9 . 3 1 ) . .Q 9 » , 5 J ) . L7 ,( 3 f * £ 5 , § 2 , ,( , 3 , , “ , : . 6 5 5 ) , (} ‘ } ; 5 , 5 , 6 ) , |, ( , 3 _ ‘ § 2 § , 5 , 6 , > , , . w £3 5 » , 36 | P a g e Page 54 of 81 ,€ & § ‘ } i 9 , . , ,. ., € . 1 . a * ? 9 . 2 ) , , . , .§ l a ? § , . 9 ) . . , , Pr i n c i p a l (8 9 3 ) (9 2 9 ) (9 6 6 ) (1 , 0 0 4 ) I( 1 , 0 4 4 ) (1 , 0 8 6 ) (1 , 1 2 9 ) _ Pa y m e n t To t a 1 M o u ' t m y " De b t s c r v i e e ,, £? z 3 § 3 ) . , Q’ 3 § § 2 , ,, (2 - 8 5 3 ) , , (3 , > § 3 ¥ 2 , . (1 - § § § ) , , , , , , ( 2 » § , 3 § ) , §. 2 , » § § § ) _ , 37 | P a g e Page 55 of 81 FI N A N C I A L OV E R V I E W Th e ta b l e be l o w pr e s e n t s a su m m a i y of ou r bu s i n e s s op e r a t i o n s . It sh o w s th e re v e n u e we pr o j e c t to re a l i z e in th e fi r s t ?v e ye a r s , al o n g s i d e ou r ex p e n s e s an d ne t in c o m e . Ov e r v i e w Td t a i i l e v e u i u e s I‘ "5 " " "' $ ' " " ' 84 0 , 0 0 0 1, 0 0 8 , 0 0 0 1, 2 0 9 , 6 0 0 1, 4 5 1 , 5 2 0 To i E a I En ? e n s e s $ I I $ $ 54 4 , 2 0 0 61 4 , 2 2 0 69 7 , 9 6 2 79 8 , 1 4 2 91 8 , 0 1 7 'i 1 ‘ ~ i é " i i > ’ i E . $ 1 i { ” ' “ ' $ 7' $ $ $ $ 23 5, 6 5 6 32 4 , 4 6 1 43 1 , 2 1 4 55 9 , 5 2 5 71 3 , 7 3 3 Fi n a n c i a l Ov e r v i e w lT o t a l Re v e n u e la To t a l Ex p e n s e s E Ne t Pr o f i t 38 | P a g e Page 56 of 81 In c o m e St a t e m e n t To t a l In c o m e w !I ‘ PR O J E C T E D lN C O M l j 3 § > V T { 5 7 . ‘ 1 A ‘ l £ l \ { l / E _ N ’ I ‘ ’o ] 5 e r T t $ ? £ : T I \ / i $ a t h s Gr o s s Ma r g i n Gr o s s Ma r g i n % ja d v e r t i s e m e n t s We b s i t e Mi s c e l l a n e o u s "i i i i i * i ' " I i / A ” ' Ni é ? o ? é Ne t li l n r o ? t / S a l e s % Kt e r a g e Mo n t h l y In c o m e ' 1, 0 4 § ; 0 9 " « i To t a l Op e r a t i n g Ex p e n s e s De p r e c i a t i o n ” H N V W Wl n t e r e s t Ex p e n s e IH C O I I I E T B X 7 ll 7' WW 7 7 ms "5 5 § ; s é ' s " .. .. . 39 % . " ” 4, 5 9 3 ' z2 1 , i 8 § ' ' 8, 0 0 0 " ' 81 5 , 8 0 ? ' ' ii j i é ' 79 , 9 4 9 " "$ ‘ "7 1 3 , 7 3 3 " Th e gr a p h be l o w sh o w s a br i e f ov e w i e w of ou r in c o m e st a t e m e n t . Ou r ne t pr o ? t s ar e sh o w n in 39 | P a g e 41 % Page 57 of 81 Ye a r l y Pr o f i t $8 0 0 , 0 0 0 , 5 71 3 , 7 3 3 V $7 0 0 , 0 0 0 5 $5 5 9 , 5 2 5 54 31 , 2 1 4 _ $3 2 4 , 4 6 1 $2 3 5 , 6 5 6 ” ' 40 | P a g e Page 58 of 81 PR O J E C T E D CA S H FL O W S_ _ " : A T E 1 \ 4 ‘ E 1 § 1 j W , _, W PR O J E C T E D CA S H FL O W ST A T E M E N T EB I T )? A } i j u I s t ' : i i ' é ? { f ' 6 ‘ r ' } I ¢ E - T c ? it e m A ‘P a y a b l e ; 7' " ‘W “1 ‘ £ i 3 & ? a i d ' ' Fl o w fr o m Op e r a t i o n In v e s t i n g Ac t i v i t i e s "C " § p i c a 1 ex ] a e n d i £ u _ r e — w " ' Fl o w fr o m In v e s t m e n t Fi n a n c i n g Ac i i v i t i e s "i r E 6 E é é i i s " f } B ? { I n v e E } B F Eq u i t y Di v i d e n d pa i 4 i 7 ‘N a c3 s 1 i ’g é i { e r a t e & ' i z { t h e ' § é a k ' 7' (2 8 0 , 0 0 0 ) E3 ? E E E E i 't § B § F S W i ' E ' ' ' ,? l ; § & , m . . é ? E , , _ . - 2,, _. ,, _ . , , , . . . . . 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Ca s h f l o w I Ne \ Ca s h f l o w la Ca ' s h Ba l a n c e 42 | P a g e Page 60 of 81 1? .l ’ _ I i 9 ; ‘ F i 9 , T , E J 1 _ . S . T A T _ ! ? M E N T Q F .F _ ' , ’ 5 ‘ "l ‘ , ’ _ 9 _ ‘ A ! a E9 § I ! 9 1 ‘ _ ' . _ 1 ST A T E M E N T OF FI N A N C I A L ’ PO S I T I O N . , §_ , , _ , _ , ,, 'E 6 i i C E i } ' § é i } E ' A § s ’ é é § ” " W 7 7 I ‘T 7 ’W ” ' ' I 7 "T" ' 5- ’i i i 6 i i l E i ’ f r } e n t A s s e t s ’ ” ' " A 1 28 0 , 0 0 0 28 0 , 0 0 0 28 0 , 0 0 0 28 0 , 0 0 0 28 0 , 0 0 0 08 0 1 7 : ’ : - x l m u l a t v e d De p r e é i g i t i i o n d (8 , 0 0 0 ) (1 6 , 0 0 0 ) (2 4 , 0 0 0 ) (3 2 , 0 0 0 ) (4 0 , 0 0 0 ) 27 2 , 0 0 0 26 4 , 0 0 0 25 6 , 0 0 0 | 24 8 , 0 0 0 24 0 , 0 0 0 To t a l No n - C u r r g ? g 1 27 2 , 0 0 0 26 4 , 0 0 0 25 6 , 0 0 0 24 8 , 0 0 0 24 0 , 0 0 0 Cu r r e n t as s e t s W VC _ a ; I 1 > a n d ca s h eq u i v a l é r l g s v r 68 1 , 1 4 4 1, 0 1 2 , 0 6 4 1, 4 5 1 , 2 3 9 2, 0 2 0 , 6 0 5 2, 7 4 6 , 5 0 8 To t a l cu r r e n t as s e t s 1 1, 2 7 6 , 0 6 4 1, 7 0 7 , 2 3 9 2, 2 6 8 , 6 0 5 2, 9 8 6 , 5 0 8 71 , 2 7 6 , rT o t a l as s é t s I 1, 7 0 7 , 2 3 9 2, 2 6 8 , 6 0 5 2, 9 8 6 , 5 0 8 '1 > a y ' s { i { 1 e ' s " 0 " 0" 0 Ot h e r pa y a b l e s I V. W I I I " To t a l cu ? e n t ?i a b i i i f i é g ‘ 1~ 1 ' 3 i C é I i } } é i i E L i i i i i i i i i é s w " Lo n g fa r m bo r r o v v I r 1 g s 58 9 , 2 8 4 57 8 , 1 4 1 56 6 , 5 5 2 55 4 , 5 0 2 54 1 , 9 7 1 0 61 7 , 4 8 8 61 5 , 9 4 7 61 5 , 9 0 9 61 7 , 7 4 9 62 1 , 9 2 0 ,, E ( _ l l , l , i _ q _ , , , ,. . .. . .1 ,, . ’1 3 E e } e E § n E é ’ s ’ i i ’ i i i é E i { p i t a 1 " 43 | P a g e Page 61 of 81 T K ' 7 'i 0 3 , ' 6 ® ' 10 0 , 0 0 0 "i 0 0 , 0 6 0 ' " ' A’ "$ 0 , 0 0 0 ' "l 0 7 ) ’ , ’ 0 6 6 ' ,1 . ‘ é, t £ E é a . ? ; ; , m _ ? g s . , , , , , ., , ,,, _ _ , _, _ _ ,, _. _ _ ,5 ,, ,, , _ _, . _ , . _ , _ _ _ , . _ I 23 5 , 6 5 6 56 0 , 1 1 7 99 1 , 3 3 0 1, 5 5 0 , 8 5 6 2, 2 6 4 , 5 8 9 . — » . —_ ~— .~ . ~ — — v — — .., , ~ . 5. ’ —w . . W — ..— . ., ,. ., , . , _,, , ,,, ,,, , , _, -,, , . - . . _ , ,7 __ _ _ . , ,"., , _ 33 5 , 6 5 6 66 0 , 1 1 7 1, 0 9 1 , 3 3 0 1, 6 5 0 , 8 5 6 2, 3 6 4 , 5 8 9 'T T o E § T 1 ? § 1 { n i i T y ‘ } I x I I i ‘ i . ? i } ? i : € é E ' 7 " ' ii ' ' i, " 2 ' 7 ' 6 " , 0 7 6 ? i W” "T ' W A’ 95 3 , 1 4 4 1, 7 0 7 , 2 3 9 J5 2, 2 6 8 , 6 0 5 2, 9 8 6 , 5 0 8 Th e ab o v e ta b l e sh o w s th e ?n a n c i a l po s i t i o n of th e bu s i n e s s . It sh o w s ou r to t a l as s e t s , eq u i t y , an d th e ad d i t i o n of eq u i t y an d li a b i l i t i e s . BR E A K E V E N AN A L Y S I S Br e a k e v e n is wh e r e th e bu s i n e s s ne i t h e r ma k e s a pr o ? t no r a lo s s . Th i s me a n s t h a t th e bu s i n e s s ca n on l y pa y up it s ?x e d an d va r i a b l e ex p e n s e s at br e a k e v e n wi t h o u t an y ex c e s s . Th e es s e n c e of br e a k e v e n is de t e r m i n i n g th e nu m b e r of sa l e s th a t co u l d le a d to pr o ? t a b i l i t y . Be l o w is th e ta b l e fo r br e a k e v e n . ii r e a k e v é n Ai i ; i i ' y " s ‘ 1 ‘ § " " 84 0 , 0 0 0 1, 0 0 8 , 0 0 0 1, 2 0 9 , 6 0 0 ii l i r e a ? l i i v t t h ? m t ‘ V’ WE E ’ '" " ' 3 § i , ' 7 0 0 ' " }7 £ ? 7 x r t e r i 3 } e a k e v e i { " ‘W V" 49 3 , 0 0 0 " , W‘ 6 § 6 , 3 0 0 1 W§ § 2 , 7 3 0 ” A i M 1 , 0 8 8 , A 9 6 5 1, 3 7 5 , 0 1 1 ' Th i s me a n s th a t th e r e mu s t be mo r e th a n $3 4 7 , 0 0 0 , $3 5 1 , 7 0 0 , $3 5 6 , 8 7 0 , $3 6 2 , 5 5 7 , an d $3 6 8 , 8 1 3 wo r t h of sa l e s in th e ?r s t ?v e ye a r s , re s p e c t i v e l y , be f o r e an y pr o ? t ca n be ac h i e v e d in th e 44 | P a g e Page 62 of 81 Bu s i n e s s . Th i s me a n s th e bu s i n e s s wi l l br e a k ev e n in th e fi r s t ye a r si n c e we ha v e hi g h e r sa l e s th a n th e br e a k e v e n st a r t i n g fr o m th e fi r s t ye a r . Br e a k e v e n An a l y s i s 2, 0 0 0 , 0 0 0 — ~ 1, 3 0 0 , 0 0 0 1, 5 0 0 , 0 0 0 1, 4 0 0 , 0 0 0 " 1, 2 0 0 , 0 0 0 1, 0 0 0 , 0 0 0 30 0 , 0 0 0 »— 60 0 , 0 0 0 40 0 , 0 0 0 20 0 , 0 0 0 — -7 — — V ', 8 2 4 Ve a r l Ye a r Z Ye a r s Ye a r 4 Ye a r S -. - - Br e a k Ev e n Po i n t -= - - Sa l e s Br e a k e v e n Ch a r t 2, 0 0 0 , 0 0 0 1, 8 0 0 , 0 0 0 1, 6 0 0 , 0 0 0 1, 4 0 0 , 0 0 0 - ~1 7 I 41 1 I 1 1, 2 0 0 , 0 0 0 — — 3 1, 0 0 0 , 0 0 0 » ~ I5 « 1 30 0 , 0 0 0 ~ - ‘ I I E- Sa l e s _ 34 0 , 0 0 0 1, 0 0 3 , 0 0 0 1 1, 2 0 9 , 6 0 0 1, 4 5 1 , 5 2 0 1, 7 4 1 , 3 2 4 1 .Sp e n d i n g 54 4 , 2 0 0 61 4 , 2 2 0 69 7 , 9 6 2 79 3 , 1 4 2 91 3 , 0 1 7 40 0 , 0 0 0 20 0 , 0 0 0 60 0 , 0 0 0 3 EB I T D A 29 5 , 8 0 0 39 3 , 7 8 0 51 1 , 6 3 8 65 3 , 3 7 8 82 3, 8 0 7 I I I 45 | P a g e Page 63 of 81 NE T PR E S E N T VA L U E A po s i t i v e ne t pr e s e n t va l u e me a n s th a t th e pr o j e c t e d ea r n i n g s ge n e r a t e d by an in v e s t m e n t in th e cu r r e n t am o u n t ex c e e d th e an t i c i p a t e d co s t s , al s o in th e pr e s e n t am o u n t . Wi t h th e NP V be i n g po s i t i v e at $1 , 8 0 0 , 8 9 6 , th i s is a go o d in v e s t m e n t fo r th e Co m p a n y as th e Co m p a n y ' s ea r n i n g s in th e cu r r e n t do l l a r ar e mo r e th a n th e pr o j e c t e d ex p e n s e s in th e cu r r e n t do l l a r . Be l o w is th e NP V , wh i c h is us e d to de t e r m i n e th e va l u e of th e bu s i n e s s . “m ; e s r ‘ . ; ¢ . ; n . e ‘ E 77 l i i s 7 e o u n t 7 l i 7 a t e 7 7 l 17 \ i e 7 t 7 C a s h F 1 o w 7 77 7 . 77 Y7 e 7 a 7 r s 7 7 (7 0 0 , 0 0 0 ) 7 (7 0 0 , 0 0 0 ) 7 77 7 7 3 ( 7 e 7 § F i 7 7 7 777 7 7 7 77 77 7 7 6 7 § 1 7 7 , 7 1 7 t 7 4 T '“ 6 7 7 6 7 ( 7 ) 7 , % l 7 7 7 7 7 i§ 3 , 8 5 7 E 3 7 7 7 7 7 7 ik e l i i i i 7' 7 “ _ 3 § 7 0 , 7 9 7 i 0 7 ' 7 77 7 7 7 7 § T 1 , ? i i 7 ( i ” ' 7 7 7 7 7 7 ' 77 7 7 7 7 7 7 7 7 3 7 § Z , 2 t 7 6 7 7 1 7 7 7 7 7 ‘ 7 ‘ 77 7 77 ’ 7 7 § { E § r 7 § 7 7 7 77 2 6 7 9 ’ , ? E “ 7 7 7 7 7 7 A "7 2 I 0 0 ; 7 9 ’ 1 E 7 7 7 7 7 7 7 7 77 7 4 7 3 ' 1 7 , 7 2 7 1 l i 7 7 77 77 7 7 7 § ? é § { E 7 1 7 7 7 7 77 ’ 7 7 5 “ é § , 7 3 é 3 7 7 7 7 7 ' 7" §< ) l 7 1 ; 7 2 7 i 7 7 ( ) 7 77 73 5 5 , 7 5 5 5 7 ”’77 7 7 ’ 7 7 7 "7 7 7 — 7 ' " ‘ 7 7 7 7 ‘ 7 7 7 7 77 " 7 l § 7 , 7 7 7 § § 77 7 ‘7 72 5 ; 9 0 4 Th e Av e r a g e Ra t e of Re t u r n sh o w s th e pr o ? t a b i l i t y po t e n t i a l fo r st a r t u p in v e s t m e n t . At 0. 6 5 % , th e Co m p a n y is ex p e c t e d to ea r n an an n u a l $0 . 6 5 ou t of ea c h $1 in v e s t e d . Th e Pr o ? t a b i l i t y In d e x sh o w s th a t th i s is a go o d bu s i n e s s as it sh o w s th a t in v e s t i n g in th i s bu s i n e s s wi l l in c r e a s e Fa r m i n g t o n Fo o d & Sp i c e Ho u s e ' s va l u e mo r e si g n i ? c a n t l y th a n 1. bu s i n e s s is an pr o ? t a b l e to ve n t u r e th e Co m p a n y ' s re v e n u e s ex c e e d th e ca p i t a l fu n d i n g of th e bu s i n e s s by mo r e th a n 67 % . 46 | P a g e Page 64 of 81 V CL O S I N G ST A T E M E N T "D e a r Re a d e r , Th a n k s fo r ta k i n g th e ti m e to go th r o u g h ou r bu s i n e s s pl a n do c u m e n t . We ex p r e s s ou r gr a t i t u d e as yo u co n s i d e r ou r pr o p o s a l . We ca n pr o m i s e th a t th i s is a pr o ? t a b l e ve n t u r e ca p a b l e of su r v i v i n g of f it s ca s h ?o w as we ai m to i p r o v i d e go o d pr o d u c t s an d ex c e l l e n t cu s t o m e r se r v i c e s in re a s o n a b l e co n s i d e r a t i o n of cr e a t i n g a lo y a l cu s t o m e r ba s e an d fo s t e r i n g in c r e a s e d bu s i n e s s pa t r o n a g e . We ar e su r e of ra k i n g ho m e ad e q u a t e pr o ? t fo r th e su s t a i n a b i l i t y of th i s bu s i n e s s an d ?n a n c i n g th e de b t in c u r r e d wh i l e la u n c h i n g th e Co m p a n y ' s op e r a t i o n s . Ma n y th a n k s on c e ag a i n . Su l t a n M Ha q u e 47 | P a g e Page 65 of 81 182 - 0 " .2 w @ . H 1 ‘ C) lr j ‘K RE P A I R EX I S T I N G GR A S S E4 : TR A S H wo o o FE N C E . 3 R3 3 3 ; :3 ; EX _ GR A S S } LO C A T I O N . N AS P H A L T LO T A —@ 5- . 0 " \~ EX . 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SHALLVERIFYCONDITIONOFALLEXISTING M A T E RI A L SANDSTRUCTURE.CONTRACTORSHALLREPORTTO A R C H IT E C TANYPOORORQUESTIONABLECONDITIONS. 11 . HEA DER SWITHLESSTHANA4'-0"OPENINGSHALLBE (2 )TOMOSOSKI DESIGNSERVICES,L.L.C.I550EUSTISSTREET,SUITEK SAINTPAUL,MN55I08 TELEPHONE:651-2DI3»4949 E»MAIL:nelsonososk|@yahIm.co.uk IherebycerIIIyum:IhIsplan,specI?cIIIIoII,orrepoIIwaspvepared bymeorundermydirectsupervision and(MIIam0dulylicensed AvchilectunderIhelowsoltheslale oIMinnesolu.PvinlName:ThomasDonaldOsoski Signed.I)uIe:LicenseNo;44829 OL D OA S I S RE D E V E L O P M E N T 70 5 8T H ST R E E T , FA R M I N G T O N , MN DATE 11-18-2013 DRAWING TITLESHEET SHEETA1 Pa g e 6 6 o f 8 1 "" ? Pa g e 6 7 o f 8 1 PLANNING COMMISSION AGENDA MEMO To: Planning Commission From: Tony Wippler, Planning Manager Department: Planning Commission Subject: 2040 Comprehensive Plan Amendment Update Meeting: Planning Commission - Sep 12 2023 INTRODUCTION: Lance Bernard from Hoisington Koegler Group, Inc. (HKGi) will be in attendance at the September 12th regular meeting to provide an update to the Commission regarding the Community Vision and 2040 Comprehensive Plan Update. DISCUSSION: Mr. Bernard will present the progress that has been made thus far in regards to the public engagement, the community vision, and guiding principals for the update. Attached are the draft guiding principals for the Commission's review and discussion. Additionally, Mr. Bernard will provide the Commission with the next steps for this project. BUDGET IMPACT: Not applicable ACTION REQUESTED: No action is requested at this time. HKGi will seek input from the Commission based on inform ation presented and will be available to answer questions about the process and next steps. ATTACHMENTS: Draft Vision and Guiding Principles Page 68 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) Celebra�ng Our Past. Boldly Defining Our Future. The City Farmington has adopted a vision statement that reflects the community’s values and aspira�ons for the future. It is intended to be a broad statement that is supported by guiding principles and policy statements. The community’s vision for the future is reflected below. “In the City of Farmington people and neighborhoods are valued, natural resources mater, and businesses and tradi�ons are celebrated. We are bold in pursuing opportuni�es and investments that support quality and sustainable growth, a vibrant and resilient economy, and a complete and connected community.” Guiding Principles and Policies There are several key elements expressed in the vision statement. This sec�on provides addi�onal context behind those elements and what they mean to the community. The City will work towards these elements by embracing their guiding principles and policies (see sidebar). The guiding principles and policies should be reflected upon and used in all decision making. Quality and Sustainable Growth This element of the vision is focused on building quality neighborhoods that embrace the City’s plans for growth, while recognizing that natural resources are valued and contribute to the community’s iden�ty. Guiding Principles 1) Guide the loca�on and form of development to ensure growth is managed in a sustainable manner. Policies a) The City will support development within the City’s exis�ng MUSA over the expansion of the MUSA. b) The City will phase growth and development that maintains efficient use and expansion of local and regional infrastructure. c) The City will priori�ze the redevelopment of vacant and underu�lized proper�es in older areas to revitalize these vital community areas. Guiding Principles: The guiding principles are statements that describe the desired outcome the City hopes to achieve. The guiding principles are organized under common themes described in the vision statements. Policies: Policies are statements that describe a general course of ac�on to make progress towards the guiding principles Page 69 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) 2) Create interes�ng neighborhoods that strengthens Farmington’s hometown feel. Policies a) The City will emphasize design standards and the use of high-quality materials for new development. b) The City will emphasize development paterns that connect neighborhoods to one another, as well as area parks, commercial centers, and trail corridors. c) The City will locate educa�onal land uses in a manner that capitalizes on the importance of schools in increasing the community’s livability. 3) Preserve and protect historical and cultural resources. Policies a) The City will ensure no significant heritage preserva�on resource is destroyed, damaged, or defaced as a result of any ac�on permited, licensed, funded, or assisted by the City of Farmington. b) The City will make every reasonable effort to preserve and protect heritage resources of historical, architectural, archaeological, and cultural significance, including those proper�es which have been found eligible for designa�on, but have not been designated. c) The City will make heritage preserva�on informa�on made available to all City departments, other public agencies, developers, property owners, and the ci�zens of Farmington. 4) Guide the loca�on and form of development to ensure natural resources are preserved and protected. Policies a) The City will incorporate environmental impact considera�ons into municipal decision-making. b) The City will protect surface water resources during subdivision and development planning processes to preserve their environmental, visual, recrea�onal and economic benefits for the community. c) The City will preserve, protect, and enhance woodland areas and retain substan�al exis�ng tree cover, as much as prac�cable, during subdivision and development of land as a means for improving air quality, protec�on against wind and water erosion, shade, energy conserva�on, wildlife habitat, scenic beauty, and protec�ng the integrity of the natural environment. Page 70 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) d) The City will encourage private and public developments to retain or restore natural areas planted with na�ve species to enhance the health and diversity of wildlife popula�ons, promo�ng connec�vity of habitat when possible, or restore natural areas planted with na�ve species to enhance the health and diversity of wildlife popula�ons, promo�ng connec�vity of habitat when possible. e) The City will ensure that any excava�on or mining of aggregate resources are compa�ble with exis�ng and planned development of the surrounding area and do not nega�vely impact the natural environment or city infrastructure. f) The City will con�nue to par�cipate in the GreenStep Ci�es Programs to develop sustainable best prac�ces that help reduce greenhouse gas emissions and increase the use of renewable energy. Vibrant and Resilient Economy This element of the vision is focused on crea�ng a vibrant and resilient economy that celebrates our past, supports exis�ng businesses, and provides opportuni�es for others to thrive. Guiding Principles 5) Promote and support a dynamic economy that dis�nguishes itself from the region. Policies a) The City will celebrate and promote its agricultural history and farming community through events. b) The City will maintain a three-year strategic plan for economic development that provides a dynamic and ac�onable tool for achieving the community’s economic development vision. c) The City will promote development of retail, restaurant, and service uses as anchors of mixed-use areas to create desirable and viable commercial des�na�ons. d) The City will ensure that adequate developable land is available with access to urban services for commercial and industrial growth. e) The City will ac�vely work to help diversify the growth of exis�ng and new businesses to achieve the community’s 2030 and 2040 employment projec�ons. 6) Support innova�ve ideas and projects that embrace emerging trends and new technologies. Policies a) The City will cul�vate strong rela�onships between exis�ng businesses and the city to increase business reten�on. Page 71 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) b) The City will leverage the mixed-use commercial/industrial land use designa�on to allow greater flexibility for development of offices, business parks, and light industry. c) The City will ac�vely recruit and promote Farmington as a place for business. d) The City will give priority to projects that offer high-quality jobs. 7) Enhance the vitality and vibrancy of Farmington’s downtown commercial district. Policies a) The City will promote the preserva�on and reuse of vacant historic buildings. b) The City will work to iden�fy public and private sector reinvestments in downtown to revitalize it as the community’s commercial, cultural, civic, and recrea�onal center. c) The City will give priority to projects that incorporate mixed-used developments through redevelopment ini�a�ves or located on vacant/underu�lized sites. d) The City will encourage reinvestment and redevelopment within the downtown to strengthen its role as an employment center. Complete and Connected Community This element of the vision is focused on crea�ng high-quality neighborhoods that are connected to parks, open spaces, and transporta�on systems. Guiding Principles 8) Create high-quality neighborhoods that are connected by parks, open spaces, and trails. Policies a) The City will require new subdivisions to provide adequate roadway and trail connec�ons between residen�al and neighborhoods, transit stops, schools, commercial nodes, and other key des�na�ons. b) The City will evaluate transporta�on projects to ensure they preserve and enhance environmental features and resources. c) The City will require new subdivisions to be integrated and connected to parks, open spaces, and mul�use trails. d) The City will develop a park and open space system that includes ac�ve and athle�c spaces. e) The City will develop a park and open space system that includes natural areas and environmentally sensi�ve areas for passive and un-programmed space. Page 72 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) 9) Provide a transporta�on system that is efficiently integrated with land use plans. Policies a) The City will guide development for a greater mix and higher density of uses adjacent to key corridors, nodes, and amenity areas. b) The City will evaluate transporta�on projects to ensure they are integrated with city land use and development plans. c) The City will maintain a roadway system which is consistent with the principals of func�onal classifica�on and access management, thus helping ensure that roads are planned and designed in an integrated and efficient manner. 10) Provide a transporta�on system that supports the efficient and effec�ve movement of people and goods for all modes of transporta�on. Policies a) The City will promote transporta�on alterna�ves ensuring that non-motorized, transit, and motorized travel needs are met in a balanced manner consistent with community values and preferences. b) The City will ensure that applicable professional/engineering standards are met in the planning and design of transporta�on improvements. c) The City will improve the transporta�on system in a cost-effec�ve manner in which each expenditure sa�sfies a clearly defined public transporta�on priority. d) The City will enlist and encourage private sector par�cipa�on in mee�ng the travel needs of the city’s ci�zens and businesses. People are Valued This element of the vision recognizes that all people irrespec�ve of race, income, sex, faith, etc. have inherent value and are celebrated and welcomed. Guiding Principles 11) Consider and weigh the interconnectedness among social areas when making decisions. Policies a) The City will provide opportuni�es for all to par�cipate in the planning and decision- making process. Page 73 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) b) The City will support cultural and social events that are inclusive and welcoming to the community. 12) Ensure a healthy balance of housing types that meet the needs of a diverse popula�on with diverse needs. Policies a) The City will give priority to projects that provide a wide variety of housing types for people in all stages of life. b) The City will give priority to projects that contain a mix of market-rate and affordable units. c) The City will achieve its iden�fied regional alloca�on of need for affordable housing by planning enough residen�al areas throughout the city at densi�es that are high enough to allow for affordable development. Opportuni�es and Investments This element of the vision is focused on maintaining a fiscally responsible budget, while finding opportuni�es to investment in the future. Guiding Principles 13) Maintain a posi�ve and pro-ac�ve approach to the City budget, ensuring investment decisions provide the greatest long-term benefit. Policies a) The City will make strategic investments in infrastructure that will facilitate well- planned growth that is in alignment with phasing plans. b) The City will maintain and update an annual budget and capital improvement program. c) The City will maintain a long-term financial plan for the development and redevelopment of parks, open space, and trails. 14) Provide cost-effec�ve public services, facili�es, and infrastructure systems that are consistent with the needs, demands, and desires of the community. Policies a) The City will provide programs to assist home owners and property owners of mul�- unit buildings with the maintenance and improvements of their property. Page 74 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) b) The City will work to streamline the housing development processes and consider other methods, such as incen�ve bonuses, to encourage the building of market- rate/unsubsidized affordable housing by private developers. c) The City will explore opportuni�es with agencies and organiza�ons to develop more subsidized affordable housing within the city to meet the housing needs of very low- income residents. d) The City will develop maintenance standards for recrea�onal facili�es. e) The City will improve the transporta�on system in a cost-feasible manner in which each expenditure sa�sfies a clearly defined public transporta�on priority. Page 75 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) Exis�ng Goals and Policies • 39 Goals • 95 Policies Exis�ng Goals 1. Efficient, well-planned land use expansion and development that meets the needs of the city’s projected popula�on, household and employment growth. 2. Balance of residen�al, commercial, employment, and public land uses that promotes the city’s long-term economic stability. 3. Farmington’s exis�ng hometown character is maintained and strengthened through its future growth. 4. The diversity of housing op�ons available is expanded as part of the community’s growth and redevelopment 5. A mix of convenient and atrac�ve commercial areas are distributed around the city. 6. Employment centers are expanded in the community to increase job opportuni�es as well as increase and diversify the tax base. 7. Downtown is reinvigorated as the community’s commercial, cultural, and recrea�onal center as well as a great place to live. 8. Environmental resources are protected for the benefit of the overall health of the community’s natural and human environment. 9. Farmington’s significant, scarce, and non-renewable heritage resources are preserved, protected and used in appropriate ways to reflect the community’s shared values (public and private sectors) for its unique heritage. 10. Maintain high-quality housing op�ons. 11. Provide a wide variety of housing types for people in all stages of life. 12. Have housing that is affordable to all residents at all stages of life. 13. Ensure that housing is located within livable, well-connected neighborhoods. 14. Encourage measured residen�al growth that meets pent-up regional demand for housing, while also recognizing the regional constraints for unchecked growth. 15. Provide a transporta�on system that is integrated with city land use and development plans, that preserves city historical resources, and conserves and, where possible, enhances environmental features and resources. 16. Provide a system which supports the efficient and effec�ve movement of people and goods in a comprehensive yet cost-effec�ve manner. 17. Effec�vely and responsibly manage local water resources. 18. Protect and enhance surface water quality in the city. 19. Provide flood risk reduc�on measures for persons and property, and manage the rate and volume of runoff entering rivers, streams, lakes, and wetlands within the city. 20. Protect groundwater quality and quan�ty to preserve it for sustainable and beneficial purposes. 21. Maintain and enhance the func�ons and values of wetlands within the city. 22. Preserve floodplains and manage adjacent uses to minimize flood risks and associated damages. Page 76 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) 23. Develop or improve recrea�onal open space areas, fish and wildlife habitat, and public accessibility in conjunc�on with water quality improvement projects. 24. Protect and conserve water and natural resources by promo�ng sustainable growth and integrated land use planning. 25. Increase public awareness of the func�on and value of surface water resources and the impacts associated human ac�vi�es. 26. Maintain adequate funding for surface water management. 27. Achieve recogni�on as a step 3 Minnesota GreenStep City. 28. Environmental impacts are reduced in Farmington. 29. Increased conserva�on of non-renewable energy. 30. Reduc�on of greenhouse gas emissions. 31. Increased use of renewable energy. 32. Healthy and diversified growth of exis�ng and new businesses to achieve the community’s 2030 and 2040 employment projec�ons. 33. A desirable commercial environment for residents is created through growth from exis�ng and new businesses. 34. Redevelopment of vacant and underu�lized proper�es in older areas to revitalize these vital community areas. 35. A well-trained and adaptable workforce is maintained within the community to support the projected business and job growth. 36. Diverse housing op�ons and quality of life ameni�es that support the needs and preferences of the community’s workforce into the future. 37. A three-year strategic plan for economic development that provides a dynamic and ac�onable tool for achieving the community’s economic development vision. 38. Public and private sector reinvestment in downtown to revitalize it as the community’s commercial, cultural, and recrea�onal center. 39. Cul�va�on of strong rela�onships between exis�ng businesses and the city to increase business reten�on. Exis�ng Policies 1. Support residen�al development within the city’s exis�ng Metropolitan Urban Service Area (MUSA) over expansion of the MUSA. 2. Priori�ze development of areas with exis�ng lots and u�li�es. 3. Make strategic investments in infrastructure that will facilitate well-planned growth. 4. Promote development of a greater mix and higher density of uses adjacent to key corridors, nodes and amenity areas. 5. Phase growth and development that maintains efficient use and expansion of local and regional infrastructure. 6. Promote a mix and patern of land uses that enable the community to become a place to live, work, shop, and play. 7. Ensure adequate developable areas that allow opportuni�es for growth of employment, retail, and services. Page 77 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) 8. Diversify the city’s tax base by allowing for a wide variety of non-residen�al uses throughout the community. 9. Create land use paterns that create connec�ons between residen�al neighborhoods and the city’s parks, downtown, and other ameni�es. 10. Expand park and open space land uses to create a system of parks and open spaces throughout the community. 11. Locate educa�onal land uses in a manner that capitalizes on the importance of schools in increasing the community’s livability. 12. Ensure that the community’s significant natural resources are preserved, protected and enhanced as part of the community’s growth, crea�ng connected open space corridors where feasible. 13. Increase the mix of residen�al land uses throughout the community to meet the needs of residents in all stages of life and all income levels. 14. Support increasing the variety of residen�al land uses within and adjacent to neighborhoods to provide residents op�ons for moving to meet their lifecycle housing needs. 15. Promote adding more residen�al uses in and adjacent to downtown through redevelopment. 16. Support the development of mixed-use commercial/residen�al areas near downtown and commercial centers/nodes 17. Support the development of complementary commercial centers within the community including downtown, spruce street area, major roadway corridors, and key roadway intersec�ons. 18. Allow for commercial uses to locate at key roadway intersec�ons throughout the community to meet the retail and service needs of surrounding neighborhoods. 19. Promote development of retail, restaurant and service uses as anchors of mixed-use areas to create desirable and viable commercial des�na�ons. 20. Ensure that adequate developable land is available with access to urban services for commercial and industrial growth. 21. Leverage the mixed-use commercial/industrial land use designa�on to allow greater flexibility for development of offices, business parks, and light industry. 22. Increase the city’s commercial/industrial iden�ty and growth poten�al by clearly iden�fying employment centers. 23. Encourage reinvestment and redevelopment within the downtown to strengthen its role as an employment center. 24. Promote commercial and mixed-use development on vacant and underu�lized downtown core sites. 25. Expand the community’s housing op�ons through downtown redevelopment. 26. Promote preserva�on and reuse of vacant historic buildings and other commercial buildings in downtown core. 27. Retain and expand civic uses in downtown. 28. Improve and expand outdoor public spaces in downtown. 29. Increase street and trail connec�ons to downtown from other parts of the city. 30. Support implementa�on of the redevelopment ini�a�ves established in the downtown redevelopment plan. Page 78 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) 31. Protect surface water resources during subdivision and development planning processes to preserve their environmental, visual, recrea�onal and economic benefits for the community. 32. Preserve, protect and enhance woodland areas and retain substan�al exis�ng tree cover, as much as prac�cable, during subdivision and development of land as a means for improving air quality, protec�on against wind and water erosion, shade, energy conserva�on, wildlife habitat, scenic beauty, and protec�ng the integrity of the natural environment. 33. Encourage private and public developments to retain or restore natural areas planted with na�ve species to enhance the health and diversity of wildlife popula�ons, promo�ng connec�vity of habitat when possible. 34. Or restore natural areas planted with na�ve species to enhance the health and diversity of wildlife popula�ons, promo�ng connec�vity of habitat when possible. 35. Ensure that any excava�on or mining of aggregate resources are compa�ble with exis�ng and planned development of the surrounding area and do not nega�vely impact the natural environment or city infrastructure. 36. All historic proper�es iden�fied by a heritage resource survey are evaluated by the HPC and staff to determine eligibility for designa�on as a Farmington heritage landmark or the na�onal register of historic places. 37. A property must be demonstrably significant in history, architecture or archaeology and it must also be adaptable to modern needs and uses to be considered for heritage resource designa�on. 38. No significant heritage preserva�on resource is destroyed, damaged, or defaced as a result of any ac�on permited, licensed, funded, or assisted by the city of Farmington. 39. Every reasonable effort is made to preserve and protect heritage resources of historical, architectural, archaeological, and cultural significance, including those proper�es which have been found eligible for designa�on but have not been designated. 40. Heritage preserva�on is en�rely compa�ble with economic development and growth; therefore, heritage preserva�on pays and everybody profits by recycling historically significant resources and adap�ng them to new, economically viable uses. 41. Heritage preserva�on informa�on shall be made available to all city departments, other public agencies, developers, property owners, and the ci�zens of Farmington. 42. Provide programs to assist home owners and property owners of mul�-unit buildings with the maintenance and improvements of their property. 43. Emphasize design standards and the use of high-quality materials for new development. 44. Encourage a mixture of housing types and densi�es within the same neighborhood. 45. Promote the mixing of types and densi�es close to schools and other ameni�es. 46. Explore ways to allow for more senior-friendly housing opportuni�es (one-floor living, accessory dwelling units [ADUs], group living, assisted living, etc.). 47. Achieve iden�fied regional alloca�on of need for affordable housing by planning enough residen�al areas throughout the city at densi�es that are high enough to allow for affordable development. 48. Explore opportuni�es with agencies and organiza�ons to develop more subsidized affordable housing within the city to meet the housing needs of very low-income residents. 49. Streamline housing development processes and consider other methods, such as incen�ve bonuses, to encourage the building of market-rate/unsubsidized affordable housing by private developers. Page 79 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) 50. Build connec�ons between residen�al neighborhoods and centers of employment, transit access, schools, and commercial nodes. 51. Emphasize high-quality design of neighborhoods that connect to one another as well as area parks, open space, and trail corridors. 52. Develop housing in areas served by infrastructure and phase growth appropriately. 53. Locate housing in areas that can be well-connected to other city services and ameni�es. 54. In a thorough and systema�c manner, consider the impacts of transporta�on improvements on economic development, land use, environmental resources, and social, historical, and cultural resources. 55. Promote transporta�on alterna�ves ensuring that non-motorized, transit, and motorized travel needs are met in a balanced manner consistent with community values and preferences. 56. Facilitate an appropriate level of mobility for persons and goods within and through the city by providing effec�ve connec�ons to the regional transporta�on network. 57. Provide a roadway system which is consistent with the principals of func�onal classifica�on and access management, thus helping ensure that roads are planned and designed in an integrated and efficient manner. 58. Provide sufficient capacity in the transporta�on system to accommodate exis�ng and future travel demand, thus limi�ng the poten�al for conges�on and safety concerns. 59. Improve the transporta�on system in a cost-feasible manner, 60. In which each expenditure sa�sfies a clearly defined public transporta�on priority. 61. Enlist and encourage private sector par�cipa�on in mee�ng the travel needs of the city’s ci�zens and businesses. 62. Ensure that applicable professional/engineering standards are met in the planning and design of transporta�on improvements. 63. Develop a park and open space system that includes ac�ve and athle�c spaces. 64. Develop a park and open space system that includes natural areas and environmentally sensi�ve areas for passive and un-programmed spaces. 65. Expand the city’s trail and sidewalk system, including adding regional trails that are safe and provide connec�ons between schools, parks, neighborhoods, commercial areas, open space/natural areas, other communi�es and regional parks. 66. Develop a long-term financial plan for the development and redevelopment of parks, open space and trails. 67. Develop maintenance standards for recrea�onal facili�es. 68. Increase marke�ng of parks and recrea�on (recrea�onal programs, parks, open space, trails and recrea�onal facili�es) to the community. 69. All city parks should have approved master plans to guide their development. 70. Construct new recrea�onal facili�es when it may not be financially feasible or structurally possible to make improvements to exis�ng recrea�onal facili�es. 71. Acquire land in a manner that maximizes the size of parks when possible. 72. Explore opportuni�es to expand youth, teen, adap�ve, adult and senior programs including possible partnerships with other organiza�ons or governmental agencies 73. Maximize and op�mize recrea�onal facility usage when possible. 74. Look for ways to expand community gathering spaces and events. 75. Develop and implement a bike and pedestrian plan. Page 80 of 81 DRAFT FOR INTERNAL DISCUSSION ONLY (SEPT. 1, 2023) 76. In new residen�al developments make sure there are adequate pedestrian connec�ons through sidewalk and trail construc�on. 77. U�lize volunteer resources to assist with parks, open space, recrea�onal facili�es and recrea�on maintenance and opera�ons. 78. Implement sustainability prac�ces in recrea�onal facili�es, parks and open spaces. 79. When financially feasible, u�lize exis�ng and emerging technology in the parks and recrea�on department’s maintenance and opera�ons. 80. Con�nue to maintain parks and recrea�on system so it con�nues to be a community asset. 81. Construct the facili�es iden�fied in the jim bell park and preserve master plan and in the aqua�c feasibility study including athle�c facili�es and a new aqua�c facility. 82. Create a system that is equitable and diverse, so it accommodates uses by all demographic groups represented in the community. 83. Con�nue to monitor, lead, coordinate, report to and engage community members on the implementa�on of GreenStep best prac�ces. 84. Regularly priori�ze and evaluate best prac�ces and ac�ons to be implemented on an annual basis. 85. Con�nue to support the ac�ons and ini�a�ves of the green team 86. Develop programs, events, and incen�ves for residents to increase involvement in sustainability ini�a�ves. 87. Par�cipate in tracking and monitoring programs, such as the regional indicators ini�a�ve, to inform future sustainability ini�a�ves. 88. Develop standards and review procedures that support adequate indoor and outdoor space for improved recycling opportuni�es (including organics such as food waste, as appropriate) in commercial development. 89. Incorporate environmental impact considera�ons into municipal decision-making. 90. Encourage residents and property owners to take advantage of energy monitoring and conserva�on programs offered through the local u�li�es. 91. Research, evaluate, and promote LEED principles and other green infrastructure prac�ces for new buildings, developments, and public projects. 92. Follow the state energy goal guidelines of reducing greenhouse gas emissions to 20% of the city’s 2015 baseline levels by the year 2050. 93. Establish interim goals every 5 to 10 years. 94. Protect solar access in new developments and subdivisions to enable poten�al development of solar energy systems. 95. Encourage businesses and residents to par�cipate in renewable energy programs or install renewable energy systems. Page 81 of 81