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HomeMy WebLinkAbout09.16.24 EDA PacketMeeting Location: Farmington City Hall, Conf Room 170 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA Monday, September 16, 2024 5:30 PM Page 1.CALL TO ORDER 2.PLEDGE OF ALLEGIANCE 3.ROLL CALL 4.APPROVE AGENDA 5.CITIZEN COMMENTS 6.CONSENT AGENDA 6.1. Minutes of the July 15, 2024 Regular Economic Development Authority Meeting Approve the minutes of the Regular Economic Development Authority meeting dated July 15, 2024. Agenda Item: Minutes of the July 15, 2024 Regular Economic Development Authority Meeting - Pdf 3 - 6 6.2. Monthly Financial Report Accept the monthly Financial Report for September 2024. Agenda Item: Monthly Financial Report - Pdf 7 - 8 6.3. Quarterly Report - Open to Business (Q2 2024) No action requested. Report is provided for informational purposes. Agenda Item: Quarterly Report - Open to Business (Q2 2024) - Pdf 9 - 17 7.PUBLIC HEARINGS 8.DISCUSSION ITEMS 8.1. 2024 Economic Development - Mid Year Report Card 18 - 43 Page 1 of 52 No action required. This information is for discussion purposes only - and will lead to finalization of the 2025 EDA Work Plan. Agenda Item: 2024 Economic Development - Mid Year Report Card - Pdf 8.2. Preliminary EDA Levy - FY 2025 Adopt Resolution 2024-02 Approving Preliminary 2025 Economic Development Authority Levy Request. Agenda Item: Approve Preliminary EDA Levy - FY 2025 - Pdf 44 - 46 8.3. Update on Business Retention Workplan No action required, but Staff welcome and appreciate conversation around planning for future events. Agenda Item: Update on Business Retention Workplan - Pdf 47 - 48 9. DIRECTOR'S REPORT 9.1. Director's Report No action requested. This item is informational and is provided to communicate how the EDA time and money resources are allocated, and to track and measure the impact of initiatives. Agenda Item: Director's Report - Pdf 49 - 52 10. ADJOURN Page 2 of 52 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Shirley Buecksler, City Clerk Department: Administration Subject: Minutes of the July 15, 2024 Regular Economic Development Authority Meeting Meeting: Economic Development Authority - Sep 16 2024 INTRODUCTION: For the EDA's review are the minutes of the July 15, 2024 Regular Economic Development Authority meeting. ACTION REQUESTED: Approve the minutes of the Regular Economic Development Authority meeting dated July 15, 2024. ATTACHMENTS: 07.15.24 EDA Minutes Page 3 of 52 Economic Development Authority Meeting Minutes of July 15, 2024 Page 1 of 3 City of Farmington Economic Development Authority Regular Meeting Minutes Monday, July 15 2024 The Farmington Economic Development Authority met in regular session on Monday, July 15, 2024, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Chair Wilson called the meeting to order at 5:30 p.m. 2. PLEDGE OF ALLEGIANCE Chair Wilson lead everyone in the Pledge of Allegiance. 3. ROLL CALL Members Present: Chair Steve Wilson Commissioners Katie Bernhjelm, Holly Bernatz, Joshua Hoyt, and Nick Lien Members Absent: None Also Present: Lynn Gorski, City Administrator Julie Flaten, Asst City Administrator/HR Director Deanna Kuennen, EDA Executive Director Stephanie Aman, Economic Development Coordinator Kim Sommerland, Finance Director John Powell, Public Works Director Shirley Buecksler, City Clerk 4. APPROVE AGENDA Director Kuennen requested the addition of Item 9.2, 2025 Preliminary Budget , Work Plan, and EDA Levy Discussion, which was added to the EDA’s packet prior to the meeting and move the Closed Session to 9.3. Motion was made by Commissioner Hoyt and seconded by Commissioner Bernatz to approve the agenda with the addition of Item 9.2, 2025 Preliminary Budget, Work Plan, and EDA Levy Discussion, and move the Closed Session from Item 9.2 to 9.3. Motion carried: 5 ayes / 0 nays 5. CITIZEN COMMENTS No one addressed the Commission to speak. 6. CONSENT AGENDA 6.1 Minutes of the May 20, 2024 Economic Development Authority Meeting 6.2 Monthly Financial Report Page 4 of 52 Economic Development Authority Meeting Minutes of July 15, 2024 Page 2 of 3 Motion was made by Commissioner Lien and seconded by Commissioner Hoyt to approve the Consent Agenda, as presented. Motion carried: 5 ayes / 0 nays 7. PUBLIC HEARINGS There were no public hearings. 8. DIRECTOR’S REPORT 9.1 Director’s Report Executive Director Kuennen presented the report. 9. DISCUSSION ITEMS 9.1 Small Business Resource Fair Update Coordinator Aman presented an update on the Small Business Resource Fair. Currently, we have 14 confirmed exhibitors. Commissioners asked questions and received answers. 9.2 2025 Preliminary Budget, Work Plan, and EDA Levy Discussion Executive Director Kuennen presented and answered questions from the Commission. All were in support of the levy. Motion was made by Commissioner Bernatz and seconded by Commissioner Lien to go into closed session to consider whether to develop or consider offers or counteroffers for the sale or purchase of real property in the city of Farmington, Dakota County, Minnesota (PID: 14-03100-22-012), pursuant to Minnesota Statutes section 13D.05, subdivision 3(c)(3) at 6 pm. Motion carried: 5 ayes / 0 nays 9.3 Closed Session to Consider Whether to Develop or Consider Offers or Counteroffers for the Sale or Purchase of the Real Property in the City of Farmington, Dakota County, Minnesota (PID: 14-03100-22-012), Pursuant to Minnesota Statutes Section 13D.05, Subdivision 3(c)(3). Present: Chair Steve Wilson and Commissioners Katie Bernhjelm, Holly Bernatz, Joshua Hoyt, and Nick Lien Lynn Gorski, Deanna Kuennen, Stephanie Aman, Julie Flaten, Kim Sommerland, John Powell, Matt Price, and Shirley Buecksler The EDA went back into regular session at 6:38 pm. Page 5 of 52 Economic Development Authority Meeting Minutes of July 15, 2024 Page 3 of 3 10. ADJOURNMENT Motion was made by Commissioner Hoyt and seconded by Commissioner Bernhjelm to adjourn the meeting at 6:38 p.m. Motion carried: 5 ayes / 0 nays Respectfully submitted, Shirley R Buecksler City Clerk Page 6 of 52 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: Monthly Financial Report Meeting: Economic Development Authority - Sep 16 2024 INTRODUCTION: Attached is a monthly Financial Report through August 2024. DISCUSSION: Attached is the monthly Financial Report for September 2024, including a summary of the year-to- date expenditures. The expenditures are consistent with the approved EDA work plan and 2024 budget. Items to note: The 2024 budget included $51,000 of "remaining proposed revenue" that was unprogrammed and was intended to be used for items such as "site readiness, implementation of the community vision, etc." Of these funds:  $39,9000 has been designated to fund the Alternative Urban Areawide Review (EDA Resolution 2024-01)  $6,000 was approved at the May meeting to fund a structural analysis of buildings located on PID 140310022012 The remaining available funds for 2024 total $83,885 - with the majority of these dollars ($50,000) originally earmarked for new program development. The micro grant program was not re-authorized in 2024 due to lack of interest and a replacement program has not yet been fully vetted. ACTION REQUESTED: Accept the monthly Financial Report for September 2024. ATTACHMENTS: 09YTD Budget Report for EDA Page 7 of 52 Business Unit Object Account Account Description YTD SPENT APPROVED 2024 BUDGET ADJUSTED BUDGET (per Finance) REMAINING FUNDS SUMMARY OF EXPENDITURES & COMMENTS REVENUE 2000 - HRA/ECONOMIC DEVELOP3510 12/31/2023 FUND BALANCE -274,949.46 2000 - HRA/ECONOMIC DEVELOPMENT EDA Levy -150,000.00 2000 - HRA/ECONOMIC DEVELOP4955 INTEREST ON INVESTMENTS -1,000.00 2000 - HRA/ECONOMIC DEVELOP5205 OPERATING TRANSFERS -50,000.00 EXPENSES 2000 - HRA/ECONOMIC DEVELOP6280 BOOKS & SUBSCRIPTIONS 0.00 150.00 150.00 150.00 2000 - HRA/ECONOMIC DEVELOP6401 PROFESSIONAL SERVICES 37,500.00 5,000.00 42,500.00 5,000.00 My Town ($25,000), SLP ($12,500) **ORIGINALLY INCLUDED IN OTHER CATEGORY 2000 - HRA/ECONOMIC DEVELOP6403 LEGAL 1,156.50 3,000.00 3,000.00 1,843.50 2000 - HRA/ECONOMIC DEVELOP6426 INSURANCE 219.73 600.00 600.00 380.27 2000 - HRA/ECONOMIC DEVELOP6445 POSTAGE/SHIPPING FEES 0.00 1,000.00 1,000.00 1,000.00 2000 - HRA/ECONOMIC DEVELOP6450 OUTSIDE PRINTING 1,873.26 2,500.00 2,500.00 626.74 Marketing Materials, Business Cards 2000 - HRA/ECONOMIC DEVELOP6455 LEGAL NOTICES 0.00 500.00 500.00 500.00 2000 - HRA/ECONOMIC DEVELOP6460 MEMBER DUES & LICENSURE 8,260.05 3,500.00 8,000.00 -260.05 Chamber Dues ($2500), CVN Membership ($4500), EDAM Membership ($550), MMP **CVN ORIGINALLY INCLUDED IN OTHER CATEGORY 2000 - HRA/ECONOMIC DEVELOP6470 TRAINING & SUBSISTANCE 1,913.57 5,000.00 5,000.00 3,086.43 EDAM Events, MMP Events, Dakota Regional Chamber Events, MAGi Awards, Various Mtgs 2000 - HRA/ECONOMIC DEVELOP6480 MEETING EXPENSE 312.14 0.00 -312.14 Chamber Coffee hosted by Farmington 2000 - HRA/ECONOMIC DEVELOP6485 MILEAGE REIMBURSEMENT 1,529.33 3,000.00 3,000.00 1,470.67 2000 - HRA/ECONOMIC DEVELOP6505 EQUIPMENT REPAIR/MAINTENANCE 0.00 1,000.00 1,000.00 1,000.00 2000 - HRA/ECONOMIC DEVELOP6550 DEVELOPER PAYMENTS 0.00 50,000.00 50,000.00 50,000.00 2000 - HRA/ECONOMIC DEVELOP6570 PROGRAMMING EXPENSE 5,500.00 10,000.00 10,000.00 4,500.00 Open to Business 2000 - HRA/ECONOMIC DEVELOP7310 OPERATING TRANSFERS 0.00 0.00 2000 - HRA/ECONOMIC DEVELOP7420 OTHER 12,950.00 64,750.00 22,750.00 9,800.00 MREJ Marketing Contract & Awards Sponsorship Total 2000 - HRA/ECONOMIC DEVELOPMENT 0.00 -51,000.00 150,000.00 78,785.42 0.00 -51,000.00 51,000.00 5,100.00 UNALLOCATED - for TBD associated with land, revolving loans, comp plan. $39,900 reallocated to Gen Fund for AUAR consultant, $6000 for Structural Analysis. 0.00 -51,000.00 201,000.00 83,885.42 Budget Available Funds SEPT EDA MEETING - Budget - YTD Page 8 of 52 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: Quarterly Report - Open to Business (Q2 2024) Meeting: Economic Development Authority - Sep 16 2024 INTRODUCTION: Earlier this year, the EDA committed to their continued participation in a Joint Powers Agreement with the Dakota County Community Development Agency (CDA) related to the Open to Business Program - provided by the Metropolitan Consortium of Community Developers. The Open to Business Program provides technical assistance and access to capital to small businesses and potential entrepreneurs, in Dakota County. As required, the Dakota County Open to Business, Business Advisor provides a quarterly report outlining client interactions and case studies. Attached is the Q2 2024 Report. DISCUSSION: Open to Business provides technical assistance and access to capital to small businesses and potential entrepreneurs in Dakota County. Through the joint powers agreement, communities within the county agree to leverage their individual dollars for this important service. In addition to the technical assistance and access to capital that is provided directly to the clients, the Business Advisor, Natalie Mouilso, meets month with City Staff. The purpose of these meetings is to learn about upcoming events and resources that can be shared with interested businesses (for example - "Access to Capital for Small Business" event), share referrals, and discuss general trends/challenges/needs of the small business community. Natalie Mouilso also represented Open to Business at the Farmington Small Business Resource Fair held on July 16th. BUDGET IMPACT: $5,500 annually ACTION REQUESTED: No action requested. Report is provided for informational purposes. ATTACHMENTS: Dakota County - Open to Business Q2 Report - 2024 August 9 Flyer - Business Planning Workshop- Access to Capital Page 9 of 52 Page 10 of 52 Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952 -451-6390 Second Quarter – 6/30/2024 Clients Served YTD Client Inquiry 02 Existing - Challenged 11 Existing -Opportunity 34 Pre-start planning 38 Start-up 25 Total 110 Business Owner Demographics YTD # of Clients Low-Income Owned 54 (49%) BIPOC or Immigrant Owned 61 (55%) Woman Owned 53 (48%) Financing & Access to Capital YTD Loans & Grants Approved (YRLY Total) $ 176,460.00 Equity (YRLY Total) $ 715,500.00 Facilitated/Other (YRLY Total) $ 90,000.00 Total Investment $ 981,960.00 Program Hours TA Program HRS 1st QTR 361 251 2nd QTR 490 238 Total 853 489 TA: Client Meetings, Providing Resources, Client Calls, Client Deliverables, Loan Packaging Program HRS: City Initiatives, Program Outreach, Public Events, City Meetings, Research, Data/Admin, General Inquiries Page 11 of 52 Open to Business Report 2 Industry Segment YTD Construction / Real Estate 03 Food 17 Health/Fitness 12 Manufacturing 03 Consulting 09 Retail 18 Service 24 Technology 01 Other/Undecided 13 Total 110 Referral Source YTD Bank Referral 18 Entrepreneur 06 Friends and Family 09 Municipality 21 MCCD Partner 13 Other 15 Web 28 Total 110 City YTD Business Resident Apple Valley 14 10 Burnsville 20 11 Eagan 17 13 Farmington 03 07 Hastings 07 03 Inver Grove Heights 06 08 Lakeville 12 15 Mendota Heights 01 01 Rosemount 03 03 South St. Paul 07 05 West St. Paul 08 03 Other Dakota Co. 00 00 Other/ No Data 12 32 Page 12 of 52 Open to Business Report 3 Direct Financing & Access to Capital Business Type: fast casual pizza franchise Business City: Apple Valley Residence City: Lakeville Referred by: Bank Partner MCCD Financing: $42,000 Owner Equity: $460,000 Other Financing: $18,000 MN DEED Small Business Loan Participation Program Overview: MCCD began working with this recent startup in Fall, 2023. The business sought working capital to implement a marketing plan to build local awareness and grow sales. Through MCCD, the business spent four months working closely with a bookkeeping/accounting advisor to gain skills and expertise in financial management of the business. They wrote a marketing plan and met with independent consultants to get additional insight into their business operations. The business was approved for the MCCD loan in early April with 30% participation from MN DEED SBLPP. The business is owned by four immigrants and is expected to employ a total of 7 after the market plan is implemented. Business Type: coffee & empanada trailer Business City: Mobile business, primarily in Rosemount, Lakeville, and Burnsville Residence City: Apple Valley Referred by: City of Rosemount MCCD Financing: $33,500 Owner Equity: $5,000 Overview: Open to Business began working with this client in March 2023 after he was referred by the City of Rosemount. This entrepreneur had a strong culinary background with dreams of opening a restaurant or coffee shop. He decided to start with a mobile food cart to prove out his business concept and generate a local following. The business launched later in 2023 serving coffee, espresso, and handmade empanadas. By early 2024 it was clear that there was strong demand, and the business was ready to take it to the next level. The business was approved for an MCCD loan to finance a fully customized food trailer which will add capacity, streamline operations, and increase efficiency. You can find this food trailer at summer farmers markets in Rosemount, Lakeville, and Burnsville and other community events including the Rosemount High School Spring and Fall Craft Fair, the Apple Valley Home and Garden Expo, and the Rosemount Community Expo. Business Type: Mexican food trailer Business City: Mobile business, primarily in West Saint Paul Residence City: West Saint Paul Referred by: Bank Partner, Blaze Credit Union MCCD Financing: $50,000 Owner Equity: $26,500 Overview: This startup food trailer business is named after the client’s mother and will serve authentic Mexican street tacos, burritos, gorditas, birria quesadillas , and salsas all based on family recipes as well as vegetarian and vegan friendly options. The entrepreneur has a strong background in food service and has always dreamed of having his own restaurant. He also believes in giving back to the community and sees his food trailer as an excellent way to support local sporting events and sports boosters programs. Look for the trailer at farmers markets, sports events, local schools, breweries, and parties in West Saint Paul. Page 13 of 52 Open to Business Report 4 Business Type: bubble tea franchise Business City: Apple Valley Residence City: Savage Referred by: Bank Partner, Royal Credit Union MCCD Financing: $50,000 Owner Equity: $224,086 Other Financing / Funding: $72,000 Overview: This business owner is bringing a nationally recognized bubble tea franchise to A pply Valley. With decades of retail experience, the entrepreneur and her husband are well prepared to open their own bubble tea store. They approached MCCD through a ban ker referral in February and we worked together through the initial planning process. The loan request for working capital was approved in July. This BIPOC & immigrant owned business will create jobs for both owners as well as 3 other jobs for the community. The grand opening is planned for mid-August. Credit Builder Loans In collaboration with nonprofit partners who provide credit building & financial awareness counseling, MCCD provides $240 Credit Builder Loans (CBLs) to qualified applicants seeking to improve their personal credit. Credit Builder applicants complete financial training through MCCD’s partners and are then referred to MCCD for a CBL. MCCD generates and services the CBLs in-house. 2024 Credit Builder Loans YTD Resident City Loan Amount Inver Grove Heights $240 Burnsville $240 Burnsville $240 Eagan $240 TOTAL $960 Highlights, Networking, & Outreach Staffing Updates • MCCD welcomes Luis Rodriguez Dominguez, MSA, as the newest member of the Business Advisor team. Luis comes to MCCD with 20 years of experience in finance and small business support including roles in accounting, bookkeeping, and business development. Luis is committed to empowering small businesses and helping them navigate the complexities of starting and growing their businesses. • MCCD is hiring! See details about our two open positions: the Shared Ownership Advisor role and the Senior Loan Program Manager role. Programming, Partnerships, & Trainings • April 12 – In partnership with the UMN Law School, MCCD hosted a Small Business Law Q&A webinar where legal experts provide transaction-based legal assistance to small businesses on a variety of subject matters including entity selection, franchising, formation, and commercial lease review. • April 19 – MCCD hosted our second business planning workshop of the year, Blueprinting Success: Financial Foundations for Startup Businesses. This workshop is designed to equip early -stage entrepreneurs and startups with essential financial skills and knowledge to build a solid fo undation for success. More details here. Page 14 of 52 Open to Business Report 5 • April 30 and May 22 – In partnership with Amplio, the African Development Center, and MEDA, MCCD presented at two non-traditional financing workshops in the Twin Cities on April 30 th and May 22nd. These free workshops were designed to increase awareness around non-traditional financing resources that can be used to support small business growth either alone or in conjunction with conventional financing. • May 2 – MCCD co-hosted the 2nd annual Minnesota CDFI Coalition Day at the Capitol. Community Development Financial Institutions (CDFIs) in Minnesota have long been champions of filling financial and opportunity gaps deemed too risky by the private sector. With a mission-driven approach, CDFIs offer crucial support to small businesses and homeowners, particularly those within marginalized communities including Black, Indigenous, People of Color (BIPOC), immigrants, women, people with disabilities, and rural residents. MCCD became a CDFI in 2009 and we recertify with the US Dept. of the Treasury on an annual basis. • June 26 – MCCD hosted a Meet & Greet for our loan committee members and staff. MCCD loan committee is a group of volunteers who review loan requests of more than $50,000. We recently added four new members who bring diverse expertise, will ensure community representation, and help us to maintain transparency and accountability in our lending process. We are grateful for the dedication of our new and existing members . • August 9 – Join MCCD for the 3rd workshop in our business planning workshop series: Access to Capital for Small Businesses. MCCD is partnering with Royal Credit Union for this session where we’ll discuss the lending landscape, government resources, and how to attract a lender. More details and RSVP here. Advertising & Outreach • In the last quarter, banker and lender outreach occurred specifically with Castle Rock Bank, CorTrust Bank, First Farmers & Merchants Bank, Merchants Bank, Lakeview Bank, Minnwest Bank, Old National Bank, Royal Credit Union, Think Bank, US Bank, and Wings. • In addition to lending outreach, written or in-person presentations were made and/or networking efforts were made including Apple Valley State of the City on May 8, Dakota County Regional Chamber Coffee Connection on May 9, 360 Communities Navigator Program on June 6, Minnesota Economic Development Foundation’s LINK presentation on June 11, Farmington’s Business Resource Fair on July 16, as well as regular check ins with City of Farmington and Dakota County CDA. • The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. New ads will be created and updated periodically so keep checking back. The library was created to help streamline how we share ads with partners and to give partners direct access to choose ads that meet their needs. Access the Ad Library here. Quarterly Highlight Carmela’s Food Trailer, West Saint Paul Page 15 of 52 Open to Business Report 6 “I am a first-time business owner. The process of getting established was a lot harder than I expected. Between figuring out licensing, permits, registering with the state and government, and startup funds, I was overwhelmed. Fortunately, I came across Natalie and the MCCD. They put resources at my fingertips and helped me secure a small business loan which made my journey much easier. I would recommend them to anyone trying to start their own business. The amount of resources they have available free of cost is unbelievable. They helped provide connections with tax and accounting professionals and other start-up resources. Natalie was amazing! She walked me through so many different things. Her wealth of knowledge and guidance were invaluable in helping me get my business started. Thank you so much, Natalie!” – Owner of Carmela’s Food Trailer, West Saint Paul Page 16 of 52 Are you a small business owner looking for ways to fund your growth? Join us for this third workshop in our Business Planning Series, where we'll explore various avenues for accessing capital to help your business thrive. What you’ll learn: Types of Capital: Equity, debt, grants, and other options. Lending Landscape: Tips for approaching banks, credit unions, CDFIs, and alternative lenders. Attracting Lenders: What lenders look for and how to pitch your business. Government Resources: Local and federal programs for small businesses. Featured Speaker: Josh Sargent | Business Banking Officer | Royal Credit Union BUSINESS PLANNING Access to Capital for Small Businesses Date: August 9, 2024 | Time: 9:00am - 10:30am Location: 3137 Chicago Avenue Minneapolis, MN 55454 REGISTRATION Page 17 of 52 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: 2024 Economic Development - Mid Year Report Card Meeting: Economic Development Authority - Sep 16 2024 INTRODUCTION: This report summarizes progress and accomplishments that have been made over the past year on economic development initiatives. It is also intended to spur discussions on goals and priorities moving forward. DISCUSSION: Prior to establishing the 2024 EDA Levy, Staff and the EDA worked together to develop a living work plan, identifying the three primary focus areas ("buckets") - and potential tasks, initiatives, and actions within each bucket. Much progress has been made and, as opportunities (and challenges) have been identified, Staff has been able to pivot and act. The attached report highlights where we started, accomplishments to date in each priority area, some lessons learned along the way, and items for consideration. The report also includes development related data - trends, land use, demographics - and regional economic development observations and opportunities. Collectively, this information is intended to spur conversation regarding how we move forward. BUDGET IMPACT: Not applicable ACTION REQUESTED: No action required. This information is for discussion purposes only - and will lead to finalization of the 2025 EDA Work Plan. ATTACHMENTS: 2024 - Mid Year Review 2024 EDA Work Plan Page 18 of 52 2024 MID-YEAR REPORT CARD 2024 EDA WORK PLAN: PROGRESS, ACCOMPLISHMENTS, & MOVING FORWARDPa g e 1 9 o f 5 2 ECONOMIC DEVELOPMENT WORKPLAN …boldly defining our future. Ongoing Operations Enhanced Marketing, Business Recruitment, & Promotions Program Development What we do daily to engage with local businesses, build relationships, &represent Farmington to a broader audience. Showing up! Identifying & accessing strategic audiences to promote Farmington’s story & opportunities. Leveraging limited dollars to build a toolkit to effectively support & attract businesses. 2023 was focused on understanding “who” Farmington is and “what” is available. 2024 is focused on building upon the momentum & advancing the community vision in bold ways. Pa g e 2 0 o f 5 2 ECONOMIC DEVELOPMENT 2023 ACCOMPLISHMENTS •Established new TIF District to supportdowntowninvestment (The Emery) •Launched New Micro Grant Program (4 awards) •Establishment of EDA Levy –dedicated funding source to support initiatives •“Unexpectedly BOLD” Campaign •Enhanced visibility –MREJ/CVN/DCRC/MMP •Met with over 20 Developers & Site Selectors, and worked on 50+ projects/prospectsPa g e 2 1 o f 5 2 ECONOMIC DEVELOPMENT ONGOING OPERATIONS -2024 ACCOMPLISHMENTS TO DATE •Meetings with Developers –promoting Farmington as a market for development. •Business Retention & Expansion Program –staying connected to existing businesses, building relationships, & understanding local business needs. Small Business Local Industry Attend Farmington Business Networking Events, Business Celebrations, DCRC events Business Visits Small Business Resource Fair Workforce / Talent Attraction Efforts & Connections Open to Business Monthly Mtgs Providing access to DEED Programs 19 visits to date Lesson Learned -Challenges for Projects to Move Forward: Lack of Available Land / Willing Land Sellers Interest Rates Pa g e 2 2 o f 5 2 ECONOMIC DEVELOPMENT ONGOING OPERATIONS -2024 ACCOMPLISHMENTS TO DATE •Current Projects & Prospects –Responding to RFIs and other investment opportunities. Yellow Tree Apartments 176 units, market rate, $42M + investment R&L Carriers Existing Business Expansion, involved land acquisition for 80,000 SF addition Project F3 Started 2023, Existing MN company, Proprietary manufacturing operation, ~100,000 SF facility/HQ + additional building Project Insight National chain, currently working on land acquisition, finalizing site plans Project Crunch Quick serve restaurant, 2025/2026 build possibility On short-list due to The Emery & Yellow Tree projects Project Notella CVN connection, food manufacturing, site visits conducted –evaluating options Creative Wonders Daycare Acquired vacant building, daycare opening 2024 Sampling of Other Projects/Prospects: A to Z Fencing –assisted with relocation Archer Data Center –“new to market” data center seeking site Fissan Training –working to identify expansion opportunity sites Hotel/Hospitality-evaluating market Project Agave –distillery, found existing building elsewhere AUAR –2 under development,representing 600+ acres Pa g e 2 3 o f 5 2 ECONOMIC DEVELOPMENT ONGOING OPERATIONS -2024 ACCOMPLISHMENTS TO DATE •Available Land & Buildings –understanding what is available, developing relationships with owners, seeking new opportunities. 2024: Environmental Review –2 separate AUARs underway covering 600+ acres Structural Analysis of existing building to determine redevelopment potential Working with utility providers – important to understand capacity Evaluating spectrum of site readiness Pa g e 2 4 o f 5 2 ECONOMIC DEVELOPMENT ENHANCED MARKETING & BUSINESS RECRUITMENT-2024 ACCOMPLISHMENTS WE ARE SHOWING UP! •Minnesota Real Estate Journal –monthly speaking, moderating, & tabling opportunities. Yellow Tree project –came directly from a MREJ event Finalist –2024 Municipality of the Year, enhances visibility to brokerage community Pa g e 2 5 o f 5 2 ECONOMIC DEVELOPMENT ENHANCED MARKETING & BUSINESS RECRUITMENT-2024 ACCOMPLISHMENTS TO DATE •Community Venture Network/Brookshire –business recruitment events, introduction to projects, & “My Town”. Business Events 3x per year Introduction to Projects My Town –national exposure My Town is a docuseries that aims to break down the popular misconceptions with the rural lifestyle, inspiring important conversations. The City of Farmington was one of 7 communities selected to participate in Season 1. Season 2 is already being planned and in the works. Additionally, My Town was selected to be showcased at the Twin Cities film festival. The City of Farmington EDA owns all rights to the assets that were produced on our behalf and intend to use them in various social media posts, marketing, and other venues. A public viewing event is in the works! Pa g e 2 6 o f 5 2 ECONOMIC DEVELOPMENT ENHANCED MARKETING & BUSINESS RECRUITMENT-2024 ACCOMPLISHMENTS TO DATE •Site Location Partnership –targeted industry recruitment & lead generation Trade Show Representation Prospect listing and review Site Consultant Appointments (Chicago)Targeting October visits for meet and greets and relationship building Targeted Industry Prospect Lists To fully utilize the benefits of this partnership, land is needed. Prospect listings are provided to staff after each show, and connections are made for future development. Pa g e 2 7 o f 5 2 ECONOMIC DEVELOPMENT ENHANCED MARKETING & BUSINESS RECRUITMENT-2024 ACCOMPLISHMENTS TO DATE •Other –additional ways we are telling Farmington’s story. Unexpectedly BOLD campaign Winner of Bronze Northern Lights Award Business View Magazine Sequel -Farmington MN (businessviewmagazine.com) Minnesota Marketing Partnership market visits –Char-Lanta Fall 2024 LinkedIn Postings Sharing and connecting information and successes of businesses and staff.Pa g e 2 8 o f 5 2 ECONOMIC DEVELOPMENT PROGRAM DEVELOPMENT -2024 ACCOMPLISHMENTS TO DATE History: •Previously programs focused on real estate/facades •Adjusted programming in 2023 to “meet businesses where they were at” •New program had limited activity … time to refocus Today: •Gathering information regarding “what is needed” •Providing more access to/information about state programs & resources •Interest in low-interest loans •Interest in flexible program with grant/loan components •Training programs –workforce development, recruitment, & talent pipelinePa g e 2 9 o f 5 2 ECONOMIC DEVELOPMENT PROGRAM DEVELOPMENT -2024 ACCOMPLISHMENTS TO DATE Ideas: •Articulate what trying to accomplish with program dollars •Align programs with existing conditions & opportunities Existing Business Subsidy Policy language… POTENTIAL PROGRAMS TYPES •Business Expansion Incentive •Infrastructure Incentive •50/50 Loans & Grants •Façade Improvement Program •Special Projects –Downtown Redevelopment Plan •Business Recruitment/Relocation Fund •Redevelopment Incentive •Workforce Training/Talent Attraction Program Pa g e 3 0 o f 5 2 DEVELOPMENT RELATED DATA Development Trends & Investment Valuation SF PERMITS Valuation TOWNHOMES Valuation APTS Valuation 2019 14 3,214,699.00$ 0 -$ 0 -$ 2020 82 17,737,899.00$ 0 -$ 0 -$ 2021 119 27,434,349.00$ 0 -$ 0 -$ 2022 96 21,470,925.00$ 43 6,936,899.00$ 0 -$ 2023 87 20,103,765.00$ 61 11,407,799.00$ 1 12,210,000.00$ *2024 61 14,806,799.00$ 85 18,444,399.00$ 0 -$ TOTAL COMBINED VALUATION 153,767,538.00$ COMMERCIAL PERMIT VALUATION 2019 $ 730,000.00 2020 $ 6,082,749.00 2021 $ 327,319.00 2022 $ 5,749,139.00 2023 $ 304,587.00 *2024 $ 6,582,387.00 TOTAL COMBINED VALUATION $ 25,818,181.00 Pa g e 3 1 o f 5 2 DEVELOPMENT RELATED DATA •Land –guide land to define our future (proactive not just reactive) •Preserving development opportunities along transportation corridors •Creating new downtown district –and expansion boundaries of downtown •Identifying areas for varying densities and types of housing •Annexation –Proactive discussions with surrounding townships •Ag Preserve –Understanding impacted areas & timelines Future Land Use / Comprehensive Plan Update Pa g e 3 2 o f 5 2 DEVELOPMENT RELATED DATA Workforce Demographics Pa g e 3 3 o f 5 2 Workforce Demographics Updated 9/2024 Pa g e 3 4 o f 5 2 ECONOMIC DEVELOPMENT OTHER CONSIDERATIONS What is happening in the region / What is our role in the region? Pa g e 3 5 o f 5 2 MOVING FORWARD 2025 Levy Request •$250,000 –increase of $50,000 Priorities •Continuation of “buckets” •Emphasis on site readiness •Identify land for development/redevelopment •Build toolkit to support existing business & attract new investments •Flexibility & openness to new ideas & opportunities. Ongoing Operations Enhanced Marketing, Business Recruitment, & Promotions Program Development …boldly defining our future. Pa g e 3 6 o f 5 2 DISCUSSION Pa g e 3 7 o f 5 2 City of Farmington Community and Economic Development Living Workplan Document Boldly Defining Our Future Page 38 of 52 2024 Ini�a�ves & Calendar of Planned and Tenta�ve Events Ongoing Opera�ons: Ongoing operations describe the day-to-day activities and functions conducted by Staff under the “economic development” umbrella. These activities ensure that Staff are engaged with the local business community, are growing and maintaining relationships with economic development champions and partners, are representing Farmington outside of the community to a broader audience and are building tools and resources necessary to support the economic development vision and goals. • Prepare responses to Request for Informa�on (RFIs) related to proposed projects and site searches. • Organize visits as part of the site selec�on process. • Conduct business visits to current businesses to beter understand industry composi�on, business needs, and growth plans. • Atend Farmington Business networking events. • Atend relevant Chamber of Commerce events. • Meet with landowners to beter understand future growth opportuni�es. • Maintain database of available property (land and buildings.) • Coordinate and par�cipate in ribbon cu�ngs/ground breakings to celebrate new business openings and/or business expansions. • Serve on statewide commitees and hold leadership posi�ons in organiza�ons dedicated to economic development. • Stay abreast of regional, state, and federal programs (grants, loans, etc.) to support businesses and economic development ini�a�ves and efforts. Page 39 of 52 Enhanced Marke�ng, Business Recruitment, and Promo�ons: Staff has worked to identify partnerships that leverage access and connection to site consultants, businesses/industries, and the brokerage community. These are the audiences that need to know, understand, and believe in what Farmington has to offer – so they can share Farmington opportunities with their clients or leadership when making location and business decisions. SLP: Site Loca�on Partnership SLP is a site consul�ng firm. Their core business is loca�on advisory work for corporate clients, and they leverage those rela�onships and capabili�es as a site selec�on firm to help economic development organiza�ons with targeted industry recruitment and lead genera�on. The Farmington EDA partnership with SLP gains the City of Farmington access to: • Targeted Industry Prospect Development (4 industries) • Site Consultant Appointment Se�ng (6 mee�ngs) • Trade Show Representa�on (6 shows) • Site Selector Networking Forum Access (6 shows in conjunc�on with trade shows) • Web Promo�on MREJ: Minnesota Real Estate Journal MREJ is an industry leader in the commercial real estate market for news, informa�on, and networking. For this sponsorship, the City of Farmington has access to many of the real estate journal events held throughout the year, including a minimum of 4 guaranteed speaking roles. These events are atended by brokers, developers, real estate agents, and more. Serving as experts in the field on the panels giv es posi�ve exposure to the City. Through this partnership, Staff has secured mee�ngs with brokers, developers, business representa�ves, financial ins�tu�ons. From these interac�ons, one developer has executed a purchase agreement on property in Farmington and is preparing to begin the en�tlement process associated with delivering a project. CVN: Community Venture Network CVN is part of The Brookshire Company – and exists “to connect communi�es with businesses searching for opportuni�es to expand and grow their opera�ons.” They have a track record for bringing economic development professionals viable opportuni�es and a reputa�on for helping companies discover communi�es. For many years, staff have worked with CVN and found value in the services it provides. Included in the membership is: • Invita�on to atend CVN sessions hosted three �mes per year • Introduc�on to a minimum of 24 business prospects seeking to grow or expand. This long-standing rela�onship also provided a connec�on and introduc�on to the “My Town” project, that will be hosted and produced by Emmy-award winning journalist, Cory Hepola, who is now an employee of The Brookshire Company. Page 40 of 52 Unexpectedly Bold In addi�on to the partnerships that staff have iden�fied and con�nue to nurture, the marke�ng campaign, “Unexpectedly Bold” has gained quite a bit of aten�on. Staff con�nue to build out the suite of materials that are u�lized at events and personalize the materials to each event we atend. Page 41 of 52 Program Development The EDA has traditionally provided programs (grants) to support small businesses. Ideally these programs should meet businesses where they are at to encourage growth and enhancements to the city’s diverse and valued small business foundation. In addition to providing local programs, it is important to leverage regional, state, and federal programs as well. As Farmington continues to be a desirable location for business growth and attraction, growing its exposure to new business development opportunities – it is also necessary to evaluate how the EDA can use its funding in an effective way. The following activities will be undertaken to ensure that Farmington has an effective and useful tool kit to support and attract businesses: • Review past year(s) grant ac�vity and poten�ally propose program modifica�ons. • Meet with business community to understand their needs in order to develop tools that can support local business community. • Research programs offered by other communi�es to understand applicability in Farmington. Page 42 of 52 WORKING CALENDAR OF EVENTS, ENHANCED MARKETING OPPORTUNITIES, & ECONOMIC DEVELOPMENT ACTIVITIES January July • MREJ Apartment Summit (over 750 par�cipants in 2023) • CVN Networking/Discovery event • EDAM Winter Conference • MN Marke�ng Partnership Mee�ng • My Town Farmington-centric promo�ons begin • Business visits • Lunch and Learn February August • SLP – IME West Trade Show – Anaheim • MREJ Summer Bags Tournament • Chamber – State of the County March September • MREJ – Land Development Summit – speaker • Chamber – Meet the Chamber event • CVN Discovery/Networking Event • SLP – IMTS Trade Show Chicago • MN Marke�ng Partnership – Chicago Market Visit April October • Chamber – Advocacy and Issues Forum - speaker • MREJ – Women in Real Estate Summit - speaker • MREJ – Data Center Real Estate Summit • MREJ – Commercial Real Estate Awards • My Town - Fall release party • SLP – Fabtech Trade Show – Orlando May November • City of Farmington hosted Chamber Coffee Break • MREJ – Retail and Restaurant Summit • CVN Networking/Discovery Event – May 17 • MREJ Southeast Metro Development Summit – May 22 • MREJ – Industrial Real Estate Summit – speaker • Chamber Business Excellence Awards June December • MREJ – Mid Year Apartment Summit • MREJ – Mid Year Commercial Real Estate Forecast • My Town filming • MN Marke�ng Partnership Mee�ng • EDAM Summer Conference • Chamber – Legisla�ve Wrap-up Session • Business Holiday Gathering • Chamber – Elec�ons Wrap and Implica�ons for Business Addi�onally, staff schedule and conduct monthly business (BRE) mee�ngs and par�cipate in Farmington Business monthly morning coffees. Page 43 of 52 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: Preliminary EDA Levy - FY 2025 Meeting: Economic Development Authority - Sep 16 2024 INTRODUCTION: Last year, the EDA passed a resolution requesting that an EDA levy be established to provide a dedicated funding source for economic development purposes in the amount of $150,000. Now that the levy is established, the EDA must pass a resolution annually requesting an EDA levy stating the proposed maximum amount, which is submitted to City Council to be included with the City's proposed levy. This must be done prior to the city adopting and certifying a proposed levy in September. Similarly, a final levy request must also be requested via resolution, to be included in the final levy that the city adopts and certifies in December. DISCUSSION: Last year, the EDA and City Council went through the process to establish an EDA levy. This provided a dedicated funding source for the EDA in the amount of $150,000 for 2024. Now that the levy is established, the EDA will be required to annually adopt a preliminary maximum levy request and submit the request to City Council to be included with the City's proposed levy. State Statutes require the City to certify its proposed property tax amounts to the County Auditor in September. Per State Statues, the maximum EDA levy allowed is 0.01813% of the taxable market value. The proposed maximum levy request for FY 2025 is $250,000 - which is well below the maximum levy amount allowed: These funds will be used to support broad economic development initiatives and the City's priority of "quality business growth and retention."  Year 2024 - $150,000 Page 44 of 52  Year 2025 - $250,000 net increase of $50,000 in levy due to elimination of General Fund transfer BUDGET IMPACT: $250,000 to be included in the 2025 budget if approved by City Council. ACTION REQUESTED: Adopt Resolution 2024-02 Approving Preliminary 2025 Economic Development Authority Levy Request. ATTACHMENTS: EDA RES 2024-02 Approving EDA Levy Request for 2025 Page 45 of 52 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA RESOLUTION 2024-02 A RESOLUTION APPROVING PRELIMINARY EDA LEVY REQUEST FOR 2025 WHEREAS, Minnesota Statutes section 469.107, subdivision 1, provides that a City may, at the request of its Economic Development Authority (“EDA”), levy a tax each year upon all taxable property within the taxing district for the benefit of the EDA; and WHEREAS, Minnesota Statutes section 469.107, subdivision 1, also limits this levy to no more than 0.01813 percent of the estimated market value of the taxing district; and WHEREAS, the EDA desires the City of Farmington to include a levy in the proposed 2025 budget. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of the City of Farmington that it approves and recommends a 2025 preliminary tax levy of $250,000.00 for EDA purposes. Adopted by the Economic Development Authority of the City of Farmington, Minnesota, this 16th day of September 2024. ATTEST: ____________________________ ______________________________ Steve Wilson, Chair Deanna Kuennen, Executive Director Page 46 of 52 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Stephanie Aman, Economic Development Coordinator Department: EDA Subject: Update on Business Retention Workplan Meeting: Economic Development Authority - Sep 16 2024 INTRODUCTION: In an effort to support local businesses, the City hosted its inaugural Small Business Resource Fair on Tuesday, July 16, held in the City Hall's commons area. The fair featured thirteen exhibitors whose expertise spanned lending, incentives, utilities, as well as county and state trainings and services. Each exhibitor presented their services and discussed partnership opportunities with Farmington businesses to assist in achieving their objectives. According to Staff estimates, the resource fair attracted around 40-50 attendees. DISCUSSION: In planning and hosting the event, Staff gathered feedback from local businesses about their needs, reached out to organizations with which we have relationships, and created a space for everyone to connect. Our aim was to engage with small businesses that previously had not been active in the Small Business Networking group, connect them to those that are already active, casting a wide net to provide all small businesses value through networking and exchange of information. Staff invited several exhibitors from outside Farmington to offer local businesses the opportunity to network with a new group of resources. A survey was sent to attendees who signed in and, while some areas for improvement were identified for future events, the overall feedback was positive. Exhibitors also reported positive experiences, finding value in networking amongst themselves as they serve the community. With this feedback, our team has already begun connecting with resources requested by attendees and will continue to assess the event's value for future planning. Staff appreciate the EDA’s support as we continue outreach to our small business community and beyond. BUDGET IMPACT: Approximately $300 for snacks and refreshments. ACTION REQUESTED: No action required, but Staff welcome and appreciate conversation around planning for future events. Page 47 of 52 Page 48 of 52 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: Director's Report Meeting: Economic Development Authority - Sep 16 2024 INTRODUCTION: Attached please find a summary of recent economic development activities. DISCUSSION: Attached please find a summary of recent economic development activities. Staff will be available to answer questions. BUDGET IMPACT: Not applicable ACTION REQUESTED: No action requested. This item is informational and is provided to communicate how the EDA time and money resources are allocated, and to track and measure the impact of initiatives. ATTACHMENTS: 09-2024 meeting Page 49 of 52 Reporting Period: Sept. 2024 DIRECTOR’S REPORT – providing project highlights and a summary of economic development activity. Projects & Initiatives • Ebert Apartments An Open House Celebration is being planned for October 8, 2024: • Community Vision/Comprehensive Plan Update - HKGi Updated draft future land use maps and staging tables were submitted to Met-Council for initial review. After this initial Met-Council review, final revisions will be made (if required) and then the public input meeting(s) will be scheduled. The goal is to conduct the public input meetings in late September. • Small Business Resource Event – July 17, 2024, from 8:00-10:30 am. Thirteen exhibitors participated, along with 30-40 attendees. Stephanie Aman has followed up with participants to gain insights into what worked, what didn’t, and what to do differently next time. • MREJ Farmington sponsored the Mid-Year Forecast Summit and attended the summer networking event. Moving into fall the number of summits will ramp up and Staff will be speaking/moderating at the Industrial Development Summitt. • My Town – filming was completed in early May. The docuseries will air later this year, with a late November slot for the Farmington episode. o My Town has been selected into the Twin Cities Film Fest and will premier on the big screen with two separate showings in October. Dates and details will be released soon. Page 50 of 52 • BRE – Staff has actively been scheduling and conducting business visits based on the BRE Plan discussed at the May meeting. Prospects • Staff worked on more than 40 different proposed/potential projects in 2023. These have varied in size, scale, industry, use, and location. The prospects are all at different stages, and while some have included only providing written responses to information requests, others have included site visits and numerous meetings. Staff continues to engage with many different business prospects, developers, and project teams – with the goal of converting the prospecting into actual projects. • R&L Carriers – this local business has secured additional property in the industrial park to accommodate a nearly 100,000 SF expansion. They have also received their Planning & Zoning approvals and are moving towards construction in late 2024/2025. This logistics company has been in Farmington for 20 years and is growing nationwide. The project will include job creation of approximately 25 new positions in year one, adding by 11-12% to their workforce each year thereafter. • Yellowtree Apartments – This $42 million + project is underway! Follow the progress here: https://youtu.be/b5M_hJyF-7o • Staff continues to work on various potential projects and have conducted numerous meetings with developers and site selectors already in 2024 – on average meeting with 8 different groups each month. Staff uses the developer/site selector meetings to share the Farmington story, discuss opportunities, and identify partners who are in alignment with the City’s vision and can assist the City in bringing projects forward. • Tract presented at a special work session on June 4th to introduce their company and their proposed project plans. Tract is working through the entitlement process and received approval from Planning Commission on 9/10/24 for rezoning, preliminary PUD, and preliminary plat. There are still multiple steps involved with this proposed development including completion of the AUAR and all final PUD and plat approvals. • The two Alternative Urban Areawide Reviews (Farmington West Industrial and Farmington Technology Park) continue to progress. Alternative Urban Areawide Reviews (AUAR) are planning documents that identify impacts of different development scenarios and the required mitigation measures. Other • Staff have been invited to attend a Minnesota Marketing Partnership Market visit in October to Atlanta. No additional details are available currently. • Staff continue to stay connected and engaged with the Minnesota Trade Office, DEED, Greater MSP, and other organizations. Staff is working with GreaterMSP to enhance alignment and increase interaction/engagement. Page 51 of 52 • Farmington is featured in Business View Magazine. The article focused on our bold initiatives to proactively drive our future while preserving the elements that make Farmington a community. Farmington MN (businessviewmagazine.com) Page 52 of 52