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HomeMy WebLinkAbout07.21.25 EDA Packet Meeting Location: Farmington City Hall, Conf Room 170 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA Monday, July 21, 2025 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 June 16, 2025 Regular Economic Development Authority Meeting Approve the minutes of the June 16, 2025 Regular Economic Development Authority Meeting. Agenda Item: Minutes of the June 16, 2025 Regular Economic Development Authority Meeting - Pdf 3 - 6 6.2. Monthly Financial Report Accept the Monthly Financial Report. Agenda Item: Monthly Financial Report - Pdf 7 - 8 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS 8.1. Partnership Presentation - Dakota County Regional Chamber (DCR) No action required. The EDA is asked to participate in a conversation around collaboration and enhancing existing partnership opportunities. Agenda Item: Partnership Presentation - Dakota County Regional Chamber (DCR) - Pdf 9 - 48 Page 1 of 54 9. DIRECTOR'S REPORT 9.1. Director's Report No action questions. 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 - 54 10. ADJOURN Page 2 of 54 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Shirley Buecksler, City Clerk Department: Administration Subject: Minutes of the June 16, 2025 Regular Economic Development Authority Meeting Meeting: Economic Development Authority - Jul 21 2025 INTRODUCTION: For approval are the minutes of the June 16, 2025 Regular Economic Development Authority Meeting. ACTION REQUESTED: Approve the minutes of the June 16, 2025 Regular Economic Development Authority Meeting. ATTACHMENTS: 06.16.25 EDA Minutes Page 3 of 54 EDA Minutes of June 16, 2025 Page 1 of 3 City of Farmington Economic Development Authority Regular Meeting Minutes Monday, June 16, 2025 The Farmington Economic Development Authority met in regular session on Monday, June 16, 2025, at Farmington City Hall, 430 Third Street, Farmington, Minnesota. 1. CALL TO ORDER Chair Hoyt called the meeting to order at 5 pm. 2. PLEDGE OF ALLEGIANCE Chair Hoyt lead everyone in the Pledge of Allegiance. 3. ROLL CALL Members Present: Chair Joshua Hoyt Commissioners Holly Bernatz, Jake Cordes, Nick Lien, and Steve Wilson Members Absent: None Staff Present: Lynn Gorski, City Administrator David Chanski, Asst. City Administrator/HR Director Deanna Kuennen, EDA Executive Director Stephanie Aman, Economic Development Coordinator Shirley Buecksler, City Clerk Also Present: Justin Erickson, Vice President of Site Selection and Economic Development, The Brookshire Company 4. APPROVE AGENDA Motion was made by Commissioner Wilson and seconded by Commissioner Lien to approve the agenda, as presented. Motion carried: 5 ayes / 0 nays 5. CITIZEN COMMENTS No one addressed the Commission to speak. 6. CONSENT AGENDA 6.1 Minutes of the May 19, 2025 Regular Economic Development Authority Meeting Page 4 of 54 EDA Minutes of June 16, 2025 Page 2 of 3 6.2 Monthly Financial Report Motion was made by Commissioner Wilson and seconded by Commissioner Bernatz to approve the Consent Agenda, as presented. Motion carried: 5 ayes / 0 nays 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS 8.1 Partnership Presentation – The Brookshire Company Executive Director Kuennen introduced Justin Erickson, Vice President of Site Selection and Economic Development with The Brookshire Company. Mr. Erickson presented an overview of The Brookshire Company’s mission and services, shared information on current collaborations, and participated in conversation with the EDA on how the existing partnership can grow. Executive Director Kuennen and Coordinator Aman will continue to attend CVN events, build relationships, and work together to strengthen the community as a whole. 8.2 2026 Preliminary Budget, Work Plan, and EDA Levy Discussion Executive Director Kuennen presented the 2026 preliminary budget, work plan, and EDA levy. A discussion ensued with the EDA expressing support for the proposals and directing Director Kuennen to work with the Finance Director to bring a final budget, work plan, and preliminary levy request forward for approval in August. 8.3 Farmington’s EDGE Coordinator Aman presented Farmington’s EDGE (Economic Development and Growth Exchange), a new initiative designed to strengthen communication with the local business community. The EDA expressed their support for this initiative, recognizing the value it will have on both internal and external communications, and as a tool to educate and inform the community. Motion was made by Commissioner Wilson and seconded by Commissioner Bernatz authorizing the Executive Director to use EDA funds for the website module and the one-time implementation fee. Motion carried: 5 ayes / 0 nays Page 5 of 54 EDA Minutes of June 16, 2025 Page 3 of 3 8.4 Continued Discussion – Farmington Local IMPACT Program (IMPACT) Director Kuennen presented the IMPACT program at the EDA’s June 16th regular meeting but, due to time constraints at that time, discussion was continued until tonight’s meeting. Discussion included: • How funds could be used to incentivizing businesses with relocation expenses. • Why any new program(s) would require clear parameters. • Program funds should benefit the business community as a whole (not only downtown). • Outside of loan and grants, what other ways can the EDA utilize their funds to support business growth. The EDA directed Staff to move away from developing a traditional loan/grant program and instead research entrepreneurial programs and ideas that could support and enhance the entrepreneurial ecosystem in Farmington. They also directed Staff to consider how EDA funds could be used to implement things such as the wayfinding program, which would have a positive impact on the community as a whole. 9. DIRECTOR’S REPORT 9.1 Director’s Report 10. ADJOURNMENT Motion was made by Commissioner Cordes and seconded by Commissioner Bernatz to adjourn the meeting at 6:44 pm. Motion carried: 5 ayes / 0 nays Respectfully submitted, Shirley R Buecksler City Clerk Page 6 of 54 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 - Jul 21 2025 INTRODUCTION: Attached is a monthly Financial Report for July 2025. DISCUSSION: Attached is the monthly Finance Report for July 2025, including a summary of the approved 2025 budget. ACTION REQUESTED: Accept the Monthly Financial Report. ATTACHMENTS: 07-2025 Financial Report YTD Page 7 of 54 Business Unit Object Account Account Description Cumulative 12 Budget 2023 Cumulative 12 Budget 2024 Cumulative 12 Actual 2025 Cumulative 12 Budget 2025 NOTES 2000 - HRA/ECONOMIC DEVELOPMENT3510 UNRESERVED FUND BALANCE -411,501.80 UNAUDITED FUND BALANCE 2000 - HRA/ECONOMIC DEVELOPMENT4011 CURRENT PROPERTY TAX -150,000.00 -125,000.00 -250,000.00 2000 - HRA/ECONOMIC DEVELOPMENT4516 ADMINISTRATION FEES - PROJECTS 0.00 0.00 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT4955 INTEREST ON INVESTMENTS -1,600.00 -1,000.00 -10,596.29 -2,600.00 2000 - HRA/ECONOMIC DEVELOPMENT4960 GAIN/LOSS INVEST MKT VALUE 0.00 -252,600.00 TOTAL REVENUE 2000 - HRA/ECONOMIC DEVELOPMENT5205 OPERATING TRANSFERS -50,000.00 -50,000.00 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6210 OFFICE SUPPLIES 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6280 BOOKS & SUBSCRIPTIONS 150.00 1,426.51 150.00 *CIVICSEND NEWSLETTER MODUAL 2000 - HRA/ECONOMIC DEVELOPMENT6401 PROFESSIONAL SERVICES 1,000.00 5,000.00 21,004.35 25,000.00 Communications, Grocery Analysis, MREJ Services 2000 - HRA/ECONOMIC DEVELOPMENT6403 LEGAL 1,000.00 3,000.00 311.00 3,000.00 LAHA JPA 2000 - HRA/ECONOMIC DEVELOPMENT6404 IT SERVICES 0.00 0.00 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6426 INSURANCE 560.00 600.00 202.32 600.00 2000 - HRA/ECONOMIC DEVELOPMENT6445 POSTAGE/SHIPPING FEES 1,000.00 0.00 1,000.00 2000 - HRA/ECONOMIC DEVELOPMENT6450 OUTSIDE PRINTING 250.00 2,500.00 0.00 3,000.00 2000 - HRA/ECONOMIC DEVELOPMENT6455 LEGAL NOTICES 100.00 500.00 0.00 500.00 2000 - HRA/ECONOMIC DEVELOPMENT6460 MEMBER DUES & LICENSURE 2,500.00 3,500.00 7,865.00 8,500.00 MidAmerica EDC, DRC, EDAM , CVN Memberships 2000 - HRA/ECONOMIC DEVELOPMENT6470 TRAINING & SUBSISTANCE 3,500.00 5,000.00 4,101.71 5,000.00 EDAM Winter (2), EDAM Summer (2), ULI Training, Next25, MAEDC (2) 2000 - HRA/ECONOMIC DEVELOPMENT6480 MEETING EXPENSE 242.04 500.00 Business Summit 2000 - HRA/ECONOMIC DEVELOPMENT6485 MILEAGE REIMBURSEMENT 1,000.00 3,000.00 451.64 5,100.00 2000 - HRA/ECONOMIC DEVELOPMENT6492 ADVERTISING 0.00 0.00 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6505 EQUIPMENT REPAIR/MAINTENANCE 1,600.00 1,000.00 0.00 1,000.00 2000 - HRA/ECONOMIC DEVELOPMENT6550 DEVELOPER PAYMENTS 60,000.00 50,000.00 0.00 50,000.00 2000 - HRA/ECONOMIC DEVELOPMENT6570 PROGRAMMING EXPENSE 10,000.00 10,000.00 17,709.00 85,000.00 MREJ Contract, Open to Business 2000 - HRA/ECONOMIC DEVELOPMENT7310 OPERATING TRANSFERS 0.00 0.00 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT7420 OTHER 0.00 64,750.00 0.00 0.00 53,313.57 188,350.00 TOTAL BUDGETED EXPENSES / YTD SPENT -64,250.00 UNALLOCATED FUNDS 135,036.43 REMAINING/UNSPENT BALANCE Total 2000 - HRA/ECONOMIC DEVELOPMENT 29,910.00 -51,000.00 0.00 -64,250.00 29,910.00 -51,000.00 0.00 -64,250.00 29,910.00 -51,000.00 0.00 -64,250.00 JULY FINANCIAL REPORT Pa g e 8 o f 5 4 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: Partnership Presentation - Dakota County Regional Chamber (DCR) Meeting: Economic Development Authority - Jul 21 2025 INTRODUCTION: Economic development requires trusted partners and partnerships - working together on aligned goals that are mutually beneficial. Every partnership is different, serving a unique function and creating unique opportunities. As part of the effort to educate and inform, representatives from different partner organizations have been invited to attend an EDA meeting to share information on what the organization does, their own organization's mission, current collaborative efforts to advance common goals, followed by a discussion on additional ways to grow the partnership. Jon Althoff, President and Chief Mission Officer for the Dakota County Regional Chamber of Commerce will be attending the July meeting. DISCUSSION: The Dakota County Regional Chamber of Commerce (DCR) has the mission of being the voice of business, and the vision of being the key connector and catalyst for growth. They fulfill their mission and vision by hosting signature events and regional program, providing information to members, conducting advocacy work, giving back to their communities, and being a resource. This work extends to Farmington where the DCR has hosted/co-hosted candidate forums, State of the City, coffee breaks, and more recently - support for data center development within the region. Jon Althoff, President and Chief Mission Officer for the DCR, will present an overview of the current work, focus, and initiatives of the DCR, talk about how the work between and with the City of Farmington can grow and strengthen, and talk about future DCR initiatives. The goal is that this information will provide a foundation for an in-depth conversation centered on collaboration, connections, and future combined initiatives. A presentation prepared by Mr. Althoff is attached. Additional context will be provided during the discussion. ACTION REQUESTED: No action required. The EDA is asked to participate in a conversation around collaboration and enhancing existing partnership opportunities. ATTACHMENTS: DCR Presentation - July 2025 EDA Mtg Page 9 of 54 1Farmington EDA – July 21, 2025 Pa g e 1 0 o f 5 4 Dakota County is HOME To Amazing Growth •3rd largest County in the State of Minnesota (87 total counties) •3rd largest economic engine County in the State of Minnesota (Source: MN DEED) •DCR Chamber ranked #13 out of 205 chambers Statewide •Acres and Acres of Green Space for Building and for Agriculture •Dakota County is the fastest-growing county in Minnesota with a current population of 447,000 Sources: U.S. Census 2022 / DEED 2024 / Mpls St. Paul Business Journal 2023 2Farmington EDA – July 21, 2025 Pa g e 1 1 o f 5 4 The DCR Chamber Speaks For…. •~ 450 Diverse, Regional Businesses •37K Employees •A State Delegation of 12 (State Senators and Representatives) •Mayors, City Councils and City Personnel as Appropriate •Other Governmental Bodies as Needed (Met Council, MPCA, etc.) •To the General Public When Business Interests Need to be Shared 3 And To…. Farmington EDA – July 21, 2025 Pa g e 1 2 o f 5 4 4 The DCR Footprint 9 Cities EAGAN EMPIRE FARMINGTON LILYDALE MENDOTA MENDOTA HEIGHTS ROSEMOUNT SUNFISH LAKE WEST ST. PAUL 3 Townships CASTLE ROCK EUREKA HAMPTON Dakota County Chambers of Commerce 6 Total Chambers 5 – Single City Chambers 50% of County Population 1 - DCR Regional 50% of County Population 40% OF DCR MEMBERS CHOOSE TO JOIN FROM OUTSIDE OUR FOOTPRINT •DCR REACH •DCR CONNECTIONS •DCR INFLUENCEFarmington EDA – July 21, 2025 Pa g e 1 3 o f 5 4 HOME To Members With Headquarters Such As… 5Farmington EDA – July 21, 2025 Pa g e 1 4 o f 5 4 HOME Members With Major Operations ……AND HUNDREDS MORE 6Farmington EDA – July 21, 2025 Pa g e 1 5 o f 5 4 HOME To Members of Major Higher Education 7Farmington EDA – July 21, 2025 Pa g e 1 6 o f 5 4 Partner to Award Winning Education and Nonprofits •Dakota County is represented by 12 School Districts – 5 serve the DCR Region •Many Districts are award winning, some with National recognition •The County and DCR Region are highly educated •The DCR Region has approximately 25 nonprofit Members •These Nonprofits are supported by DCR Business Members and the Community •Many serve as lifelines and safety nets for some Community members •They help keep the Community safe and healthy Percentage With High School Graduation or Higher/ Bachelor Degree or Highter Dakota County: 95.6% / 44.1% Minnesota: 93.7% / 38.2% U.S. : 90% / 37% Source: U.S. Census (2022) 8Farmington EDA – July 21, 2025 Pa g e 1 7 o f 5 4 DCR Membership - Statistics 9 Employees < 20 500+100 - 499 21-10020 or less employees 60% Farmington EDA – July 21, 2025 Pa g e 1 8 o f 5 4 Mission Statement 501 (c) 6 We are the Voice of Business and Connector Within Our Communities. Vision Statement We Will Be the Key Connector and Catalyst for Growth 10 Our Core Values D – Dedication to an Exceptional Member Experience C – Continuous Improvement In All Areas R – Respect to All at All Times Farmington EDA – July 21, 2025 Pa g e 1 9 o f 5 4 YOUR DCR CHAMBER OF COMMERCE DUE TO OUR SIZE AND REACH: The Dakota County Regional Chamber has the POWER TO CONNECT TO CONNECTIONS THAT MATTER And we CONNECT with CARE •Connect to People, Ideas and Jobs •Advocate for our Business Community •Regional Support Provided Within Our Strong Communities •Educate via Programming and Digital Communication 11Farmington EDA – July 21, 2025 Pa g e 2 0 o f 5 4 How the DCR C.A.R.E.s 12Farmington EDA – July 21, 2025 Pa g e 2 1 o f 5 4 DCR Chamber Members (445) DCR Board3of Directors (24) Director of Events and Member Engagement Kayla Hudson Director of Membership Experience and Engagement Jane Bachul DCR Chamber President and Chief Mission Officer / DCR Foundation Secretary Jon M. Althoff Ambassadors (24) Nate Lehmeyer, Chair Wings FinancialCAPS Spring Intern (Open) Summer Intern Anna Caflisch Director of Finance John Munkelwitz Chair of the Board Holli VanOverbeke Flint Hills Resources DCR Foundation Board (8) Chair of DCR Foundation Lisa Franxman Drake Bank Board Committees: •Public Affairs •Finance and Audit •Bylaws •New Revenue Sources •Membership July 2025 ORGANIZATION CHART 13Farmington EDA – July 21, 2025 Pa g e 2 2 o f 5 4 Run the DCR Like a Member Business •Work with Other Chambers with Like Missions •Build the Brand with Consistency •Staff with the Right People •Restore a Balanced Budget •Deliver on the Desires of Membership Active Board Member Engagement ✓ ✓ ✓ PROGRESS ✓ 14Farmington EDA – July 21, 2025 Pa g e 2 3 o f 5 4 15 Work With Other Chambers With Like Missions •State of Dakota County Presentation (OCT) •Dakota County Chambers After Hours B2B Event (NOV) •Congressional District 2 Debate (OCT) •MN Chamber Federation Partner Farmington EDA – July 21, 2025 Pa g e 2 4 o f 5 4 BRAND CONSISTENCY IS IMPORTANT DCRC DCRCC DCRCofC DRC DAKOTA CHAMBER 16Farmington EDA – July 21, 2025 Pa g e 2 5 o f 5 4 We Are The D - C - R In use with Members, the DCR or your DCR Outside: Dakota County Regional Chamber of Commerce, DCR Chamber of Commerce, or DCR Chamber Work in Progress…. 17Farmington EDA – July 21, 2025 Pa g e 2 6 o f 5 4 Member Survey Focus Areas 18 2025 Farmington EDA – July 21, 2025 Pa g e 2 7 o f 5 4 Top Member Desires are Consistent •Connection to People •Connection to Ideas •Connection to Communities •New this Year, More Desire for Advocacy 19Farmington EDA – July 21, 2025 Pa g e 2 8 o f 5 4 DCR Annual Events and Programs 20 56 Annual Signature Events Annual Meeting Business Excellence Awards Charities Holiday Luncheon Golf Classic Mayors Cup Women’s Leadership Forum (DCR Largest Event) 5 78 Regional Programs 8 - Advocacy and Issues Forums 20 - Coffee Breaks 24 – Leads Groups Meetings 4 – After Hours Happy Hours 11 - Meet The Chamber 5 - State of the Cities 1 – Vikings VIP Training Camp 6 - Young Professionals 4 - Women’s Luncheons 5 20+ One-off Events Candidate Forums Chamber Day in the Community Conversations with U.S. Senators Ribbon Cuttings/Open Houses Conversation with U.S. Congress Representatives Metro Solid Waste Virtual Briefing Special Luncheons 2400 people register for events Representing 249 different companies Farmington EDA – July 21, 2025 Pa g e 2 9 o f 5 4 100 Plus Events Annually: High Scoring 21 •Minimum of Two Coffee Breaks / Month •Ribbon Cuttings / Ground Breakings When Requested •State of the Cities •State of the County •Advocacy & Issues / Advocacy Events •Kickoff Celebration (Annual Meeting), Golf Classic, Women’s Leadership Forum, Mayors Cup, Business Excellence Awards, plus… •Holiday Luncheon to Celebrate Nonprofits •COMING: Women’s Power Lunches, More Meetings with US Legislators Farmington EDA – July 21, 2025 Pa g e 3 0 o f 5 4 The Power to Connect New DCR Foundational Networking Groups •In-person Networking / DCR Business Owners Roundtable / DCR Members Abby Anderson, EOS, and Susan Taple, Legal Shield (2X/Mo, Wednesdays) •Virtual networking / Member Connect / Jeannine Pohl, DCR Member Block Photography (1X/Mo. 4th Wednesday, Noon) See DCRchamber.com Calendar 22Farmington EDA – July 21, 2025 Pa g e 3 1 o f 5 4 The Power to Connect DCR Foundation 501 (c) 3 ✓PROVIDES SCHOLARSHIPS - $6,000 in 2024 ✓High school senior women from School District #191, #192, #196, and #197 ✓FOURWINS SCHOLARSHIPS - $6,000 awarded to students filling jobs in demand ✓PHLEBOTOMIST TRAINING PROGRAM - Completed the $76,000 Dual Pipeline Grant in partnership with DCTC and local DCR Health Provider Clinics. Trained over 22 phlebotomists last year. ✓SUPPORTS NONPROFITS IN DAKOTA COUNTY 23Farmington EDA – July 21, 2025 Pa g e 3 2 o f 5 4 Annual Budgetary Performance (Post Covid) 24 Calendar Year Operating Performance – Back to Black 2022 2023 2024 2025 Farmington EDA – July 21, 2025 Pa g e 3 3 o f 5 4 2024 Member Status •New Members (YTD Total Through Dec.): 78 •Active Members YTD Total (12/09/2024): 445 •Cumulative Growth Rate: 2% •90% Retention is an industry high water mark; 2024 improved to 85% Still Room to Go 25Farmington EDA – July 21, 2025 Pa g e 3 4 o f 5 4 DCR Financials – Key Stats 26 Large Income Blocks Signature Regional New Members Renewal Income/Expense: •Signature •Regional •Membership (new) •Membership (renewals) Expense: •75% is Staff Cost Programming/Membership is 50/50 Farmington EDA – July 21, 2025 Pa g e 3 5 o f 5 4 How Do We Work Together With Farmington? •DCR Hosts or Co-Host Candidate Forums •Mayoral •Council •Representatives •Senate •DCR Hosts State of the City – Invites Members / Promotes •DCR Provides City Coffee Break - Invites Members / Promotes •Supports City with Issues of Common Business Interests •2025 – Data Centers Farmington EDA – July 21, 2025 27 Pa g e 3 6 o f 5 4 Why Data Centers? •The DCR Board was an early adopter •DCR Board voted approval of support of Data Centers in the Region in early 2025 •DCR Teamed with MN Chamber (we are Federation Partners) Farmington EDA – July 21, 2025 28 Pa g e 3 7 o f 5 4 Why Data Center Support? •Despite a favorable weather climate, Minnesota still trails states like Iowa, Virginia, and Arizona in overall data center activity. By embracing and supporting data center development, we can propel our region forward, fostering stronger communities, schools and support services, providing increased opportunities for families, and personal advancement for our residents. •MN has the 10th highest share of firms currently utilizing AI to enhance products and services. A Minnesota DEED study indicates that 56% of jobs in the state have moderate to high exposure to AI, aligning with our strong presence in corporate headquarters, finance, insurance, and professional services. Farmington EDA – July 21, 2025 29 Pa g e 3 8 o f 5 4 Two $5B megaprojects accounted for 82% of capital investment commitments in MN in 2024 DG Fuels Tract All other expansion announcements Capital expenditures by project: 2024 $5 B $5 B $2.2 B Source: DEED Publicly Announced Business Expansions Note: Among 61 projects where capital expenditures were revealed) Pa g e 3 9 o f 5 4 Total wages – and wages per worker – nearly doubled in Minnesota’s data center industry since 2014 $81,753 $155,466 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Average wage per worker $0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 Total annual wages paid $1.2 B $634 M Source: Quarterly Census of Employment and Wages, BLS, DEED Pa g e 4 0 o f 5 4 Wage growth far outpacing number of jobs in Minnesota’s data processing industry 80% 100% 120% 140% 160% 180% 200% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total employment and wages in Data Processing, Hosting, and Related Services: Minnesota (indexed to 2014 levels: 2014 = 100%) Total employment Total wages Source: Quarterly Census of Employment and Wages, BLS, DEED Pa g e 4 1 o f 5 4 Regional peers like Iowa, Illinois and Ohio are attracting significant data center investments 0 50 100 150 200 250 300 350 400 Nu m b e r o f D a t a C e n t e r s Top Ten States For Data Center Activity March 2025 Sum of Under Construction Sum of Announced Sum of Operational Source: Aterio Pa g e 4 2 o f 5 4 How Do We Work Even Better Together? •Quarterly Meetings with the City of Farmington •Continue Candidate Forums Support •Continue State of the City Support •Continue City Coffee Break Support •Supports City with Issues of Common Business Interests •2025/26 – Data Centers •Help Support New City Administrator •School District 192 Referendum Support as we did successfully for 196 •What ELSE? Farmington EDA – July 21, 2025 34 Pa g e 4 3 o f 5 4 DCR Initiatives 2026 •Work to Create a “Dakota County Forward” Advisory Group of Business Leaders to Promote Regional Growth •Work with DCR Members and IHCC/DCTC/High Schools to Create a Hiring Pipeline Program / Signing Day •Create a Leadership Program at the Next Level •As MN Chamber Federation members, invite <10 Employee DCR Members to Co-Join MN Chamber (this has been Board Approved) Farmington EDA – July 21, 2025 35 Pa g e 4 4 o f 5 4 2025 Upcoming Events and Programs 36 August 11: Viking Training Camp (TCO Stadium) October 4 – Mayors Cup to Fight Breast Cancer (TCO Stadium) (Mayor Hoyt is always #1 or #2!) November 6 – Business Excellence Awards (Royal Cliff Events Center) December 2 – Holiday Luncheon to support nonprofits (Rosemount Community Center) 2nd Tues and 4th Thursday: Coffee Breaks (assorted) Advocacy and Issues Breakfasts: January 24, June 5th, September 4th (City Development Directors) (Lost Spur, 8-9:30am), December 4th Dakota County CDA, Housing Report (Lost Spur, 8- 9:30am) DCRchamber.com Signature Events in Bold Farmington EDA – July 21, 2025 Pa g e 4 5 o f 5 4 We are READY to Support Your Growth in Our Dakota County Region Contact Your DCR Regional Chamber of Commerce DCRCHAMBER.COM 37jalthoff#@DCRchamber.com Jbachul@DCRchamber.com khudson@DCRchamber.com jmunkelwitz@dcrchamber.com Pa g e 4 6 o f 5 4 THANK YOU Farmington EDA For the Opportunity to CONNECT! 38Farmington EDA – July 21, 2025 Pa g e 4 7 o f 5 4 39Farmington EDA – July 21, 2025 Pa g e 4 8 o f 5 4 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 - Jul 21 2025 INTRODUCTION: Attached please find a summary of recent economic development activities. Additional details regarding some of the activity may be highlighted separately in the EDA packet. DISCUSSION: Attached please find a summary of recent economic development activities. Staff will be available to answer questions. ACTION REQUESTED: No action questions. 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: 07-2025 meeting Page 49 of 54 Reporting Period: July 2025 DIRECTOR’S REPORT – providing project highlights and a summary of economic development activity. Projects & Initiatives • Rye Apartments Development Staff toured the Rye construction site in early July. The project is progressing nicely with the estimated completion and opening of Phase 1 still on track for Fall 2025. Follow along: https://youtu.be/b5M_hJyF-7o Page 50 of 54 **Please visit the Community Development “Development Project Updates” page to watch the progress of various projects underway in the community. More information, imagery, and projects are being added as they advance.** Development Project Updates | Farmington, MN • BRE No update. Prospects • Request For Information (RFIs) Project Kraken – DID NOT SUBMIT – medical equipment assembly and manufacturing, seeking existing buildings only. Canadian Company – DID NOT SUBMIT – manufacturing plant seeking existing buildings only. Project Sarek – DID NOT SUBMIT – rare earth magnet manufacturing facility seeking existing buildings only. Project Corona – DID NOT SUBMIT – food manufacturing/retail operation, seeking acreage. Project Heart – DID NOT SUBMIT – seeking 60+ acres requiring rail access for a heavy power user. Project lead from DEED and will require an NDA. Project Blue – DID NOT SUBMIT – only considering existing buildings. Project lead from GreaterMSP Project Locksmith 2 – DID NOT SUBMIT – manufacturer of high-end dairy products, only considering existing buildings previously used for dairy production/food grade. Project Black Sabill – DID NOT SUBMIT – seeking minimum 250-acre site for heavy industrial user/manufacturing plant. Project Duck – International company, seeking existing building (move-in ready) for a manufacturing operation. • Developer Meetings Since the start of the year, Staff has met with the following developers and real estate brokers who have expressed interest in working in Farmington. Conversations continue and various opportunities continue to be explored and vetted: o Sever Commercial Construction o MWF o DBS Page 51 of 54 o Acumen o DR Horton o Synergy Land Co. o Cushing Terrell o CORE Real Estate Group o Caughan Companies o Obsidian o Ozhi Development o Bauer Design & Build o Remain RE o NEOO Partners o CBRE • Other Prospects Initial conversations have occurred with existing and prospective businesses looking to locate/relocate in Farmington. The types of projects that are represented include entertainment, services, manufacturing, commercial/retail, daycare, and MF housing. Other • Grocery Initiative At its February meeting, the EDA authorized staff to move forward with completing a grocery market study for Farmington. The report, which was shared with the EDA at their May meeting, is actively being used to market Farmington to groceries, developers, wholesalers, etc. . **The report has been provided to multiple parties allowing the grocery conversation to advance. Prior to having the report, Staff was only able to provide anecdotal information. Now the conversations focus on data.** Staff will be building out a “public facing” component to the grocery recruitment efforts. This will likely involve community surveys, a page on the website with market information, etc. utilizing insights from the KState Rural Grocery Initiative. • Partner Meetings Staff is prioritizing connecting and leveraging our economic development partners – including the Minnesota Trade Office, DEED, Greater MSP, utility providers, and other organizations. An example of this is Staff attended the Greater MSP Partnership Next25 event in late February to learn about their successes and goals and to better understand Farmington’s place in the region. Partners are being invited to attend upcoming EDA meetings, to share their vision, role, and plans. This will provide an opportunity for the EDA to connect with these partners, ask questions, gain a broader understanding of how our Page 52 of 54 work aligns, and learn how we can leverage these relationships. Invitations have been made to the following: DCTC/Inver Hills College - March MCCD / Open to Business – April Dakota County CDA – May CVN/Brookshire - June Dakota County Regional Chamber - July GreaterMSP DEED Utility Partners – Xcel, Dakota Electric, Northern Natural Gas • MREJ – Summits/Conferences/Awards Staff will be attending and tabling at some upcoming MREJ Summits and participating in the summer networking event in August. Staff will be speaking/presenting at the following: August – Minnesota Shopping Center Association, Strategic Retail and Development Growth: Perspectives and Collaboration with Community & Economic Development Experts September – Dakota County Regional Chamber of Commerce – Community & Economic Development Updates from Partner Cities October – Chicago Market Visit & FAM Tour with DEED, Greater MSP, MMP, and the MN Trade Office. This will involve meetings with site selectors, business developers, foreign consulates, and strategic partners to promote investments in our communities. • Economic Development Website Over the next few months, Staff will be focusing on updating the economic development content on the city’s website. The purpose will be to make information easily accessible and build out content which is known to be important to site selectors and business representatives. The 2025 “State of the City Business” video has been added: Economic Development | Farmington, MN • Business Resources Staff have and will continue to look for ways to advance dialogue and leveraging strategic partnerships with our economic development and community stakeholders. o AI For Business Staff have collaborated with Dakota County Technical College (DCTC) and Inver Hills Community College to offer Farmington businesses of all sizes the opportunity to explore pertinent and timely business topics. As part of this initiative, Matt Boudinot from DCTC will present Page 53 of 54 "AI Essentials for Business" on Wednesday, August 13, from 2:00 to 4:00 PM at the Dakota County Library in Farmington. Marketing efforts are already underway, with initial flyers distributed at the small business networking group in July. A LinkedIn post is scheduled for the week of July 14, followed by city social media posts, website updates, and email notifications during the week of July 21. Follow-up communication will be sent out the week of August 4. We are excited to launch this first event in a series designed to provide valuable resources and meet businesses where they are. o Workforce Readiness/Business Skills in 4 Hours Content planning for this “mini-series” is underway. Again, collaborating with DCTC and Inver Hills Community College – the goal is to bring forward training opportunities that the community can benefit from (businesses and workforce): Page 54 of 54