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HomeMy WebLinkAbout10.20.25 EDA Packet Meeting Location: Farmington City Hall, Conf Room 170 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA Monday, October 20, 2025 5:00 PM Page 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZEN COMMENTS 6. CONSENT AGENDA 6.1. Monthly Financial Report Accept the Monthly Financial Report. Agenda Item: Monthly Financial Report - Pdf 3 - 4 6.2. Quarterly Report - Open to Business (Q3 2025) No action requested. Report is provided for informational purposes. Agenda Item: Quarterly Report - Open to Business (Q3 2025) - Pdf 5 - 15 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS 8.1. Entreprenurial Ecosystem Discussion No action. This is a discussion that will frame ways in which the EDA can move forward to support and grow the local entrepreneurial ecosystem. Agenda Item: Entreprenurial Ecosystem Discussion - Pdf 16 - 17 9. DIRECTOR'S REPORT Page 1 of 33 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 18 - 33 10. ADJOURN Page 2 of 33 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 - Oct 20 2025 INTRODUCTION: Attached is the monthly Financial Report for October 2025. DISCUSSION: Attached is the monthly Finance Report for October 2025, including a summary of the approved 2025 budget. ACTION REQUESTED: Accept the Monthly Financial Report. ATTACHMENTS: 10-2025 YTD Financial Report Page 3 of 33 Business Unit Object Account Account Description Actual 2025 Budget 2025 NOTES 2000 - HRA/ECONOMIC DEVELOPMENT3510 UNRESERVED FUND BALANCE -411,501.80 Unaudited Fund Balance 2000 - HRA/ECONOMIC DEVELOPMENT4011 CURRENT PROPERTY TAX -125,000.00 -250,000.00 2025 EDA Levy 2000 - HRA/ECONOMIC DEVELOPMENT4516 ADMINISTRATION FEES - PROJECTS 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT4955 INTEREST ON INVESTMENTS -18,045.88 -2,600.00 2000 - HRA/ECONOMIC DEVELOPMENT4960 GAIN/LOSS INVEST MKT VALUE 0.00 -252,600.00 TOTAL REVENUE 2000 - HRA/ECONOMIC DEVELOPMENT6210 OFFICE SUPPLIES 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6220 EQUIP SUPPLIES & PARTS 159.99 Branded Board for MREJ Event 2000 - HRA/ECONOMIC DEVELOPMENT6280 BOOKS & SUBSCRIPTIONS 1,426.51 150.00 Civic Send Newsletter Modual, Business Journal Subscription 2000 - HRA/ECONOMIC DEVELOPMENT6401 PROFESSIONAL SERVICES 23,648.10 25,000.00 Grocery Study, PR Services 2000 - HRA/ECONOMIC DEVELOPMENT6403 LEGAL 311.00 3,000.00 LAHA JPA Review 2000 - HRA/ECONOMIC DEVELOPMENT6426 INSURANCE 303.48 600.00 2000 - HRA/ECONOMIC DEVELOPMENT6445 POSTAGE/SHIPPING FEES 0.00 1,000.00 2000 - HRA/ECONOMIC DEVELOPMENT6450 OUTSIDE PRINTING 2,148.54 3,000.00 Marketing Material, Branded Attire, Signage 2000 - HRA/ECONOMIC DEVELOPMENT6455 LEGAL NOTICES 0.00 500.00 2000 - HRA/ECONOMIC DEVELOPMENT6460 MEMBER DUES & LICENSURE 7,910.00 8,500.00 MidAmerica EDC, DCR Membershio, EDAM, CVN 2000 - HRA/ECONOMIC DEVELOPMENT6470 TRAINING & SUBSISTANCE 4,665.55 5,000.00 EDAM Winter, ULI Training, Next25 Mtg, MAEDC Conference, EDAM Summer, EDAM on the Road 2000 - HRA/ECONOMIC DEVELOPMENT6470 TRAINING & SUBSISTANCE - DBB 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6480 MEETING EXPENSE 304.44 500.00 Business Summit, AI Training 2000 - HRA/ECONOMIC DEVELOPMENT6485 MILEAGE REIMBURSEMENT 676.62 5,100.00 2000 - HRA/ECONOMIC DEVELOPMENT6492 ADVERTISING 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6505 EQUIPMENT REPAIR/MAINTENANCE 0.00 1,000.00 2000 - HRA/ECONOMIC DEVELOPMENT6505 EQUIPMENT REPAIR/MAINT - DBB 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT6550 DEVELOPER PAYMENTS 0.00 50,000.00 2000 - HRA/ECONOMIC DEVELOPMENT6570 PROGRAMMING EXPENSE 17,709.00 85,000.00 MREJ Sponsorship, Open to Business, MREJ Awards Sponsorship 2000 - HRA/ECONOMIC DEVELOPMENT7310 OPERATING TRANSFERS 0.00 0.00 2000 - HRA/ECONOMIC DEVELOPMENT7420 OTHER 0.00 0.00 59,263.23 188,350.00 YTD Expenditures / 2025 Budget -64,250.00 Unallocated EDA Funds 123,513.23 YTD Remaining Unspent Balance Total 2000 - HRA/ECONOMIC DEVELOPMENT 0.00 -64,250.00 0.00 -64,250.00 0.00 -64,250.00 10-2025 Financial Report Pa g e 4 o f 3 3 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: Quarterly Report - Open to Business (Q3 2025) Meeting: Economic Development Authority - Oct 20 2025 INTRODUCTION: The Open to Business Program provides technical assistance and access to capital to small businesses and potential entrepreneurs, in Dakota County. As required in the Joint Powers Agreement, client outlining Advisor Business the by provided are reports quarterly interactions and statistics. Attached is the Q3 2025 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 with Dakota County CDA, 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 monthly with City Staff. The purpose of these meetings is to learn about upcoming events and resources that can be shared with interested businesses, share referrals, and discuss general trends/challenges/needs of the small business community. In addition to the Q3 2025 report, also attached for informational purposes is an overview of the MCCD loan products and a general flyer about MCCD. BUDGET IMPACT: $5,500 annually ACTION REQUESTED: No action requested. Report is provided for informational purposes. ATTACHMENTS: Open to Business Narrative Report - Dakota County - Q3 2025 MCCD Loan Products Brochure - 2025 Page 5 of 33 MCCD - Brochure Page 6 of 33 Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390 1/31/2025 – 9/30/2025 Clients Served YTD Client Inquiry 2 Existing - Challenged 24 Existing - Opportunity 41 Pre-start planning 44 Start-up 36 Total 147 Business Owner Demographics YTD # of Clients Low-Income Owned 75 BIPOC or Immigrant Owned 85 Woman Owned 88 Financing & Access to Capital YTD Loans & Grants Approved includes CBLs (YRLY Total) $432,414.00 Equity (YRLY Total) $183,829.00 Facilitated (YRLY Total) $148,967.00 Total Investment $765,210.00 Program Hours TA Program HRS 1st QTR 367 237 2nd QTR 477 185 3rd QTR 369 210 Total 1,213 632 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 7 of 33 Open to Business Report 2 Industry Segment YTD Construction / Real Estate 5 Food 26 Health/Fitness 12 Manufacturing 4 Consulting 8 Retail 35 Service 26 Wholesale / Distribution 3 Other 28 Total 147 Referral Source YTD Bank Referral 15 Entrepreneur 7 Friends and Family 19 Municipality 21 MCCD Partner/staff 19 Other 25 Web 36 Total 147 City YTD Business Resident Apple Valley 20 14 Burnsville 25 15 Eagan 15 14 Farmington 12 15 Hastings 5 5 Inver Grove Heights 9 11 Lakeville 14 21 Mendota Heights 4 4 Rosemount 9 14 South St. Paul 9 8 West St. Paul 6 4 Other Dakota Co. 2 3 Other/ No Data 17 19 “We are part of MCCD's Open to Business Program, and the whole process has been a great learning experience. Our loan application would've been difficult to accomplish without their help! Would recommend this to any entrepreneur.” – Rosemount Loan Client Page 8 of 33 Open to Business Report 3 Direct Financing & Access to Capital Business Type: Bubble Tea & Café Business City: Eagan Residence City: Savage & Farmington Referred by: Website MCCD Financing: $175,000* Owner Equity: $65,443 Overview: This startup bubble tea shop was seeking funds for start up expenses, tenant improvements, equipment, inventory, and working capital. The two business partners put their heads together on opening this business and were approved for a $175,000 direct loan from MCCD in January 2025, contingent on an 80% loan guaranty from MN DEED through the DEED Small Business Credit Initiative. *As the DEED guaranty application was in progress the business owners received news of some unexpected project costs from their contractor and decided to withdraw their application and tabled the business plan for now. Business Type: Natural Beauty & Wellness Products Business City: Burnsville Residence City: Burnsville Referred by: TikTok Influencer Microgrant Facilitated: $2,500 Owner Equity: $2,500 Overview: This early-stage home-based business was established in 2023 and sells handmade beauty and wellness products to friends and family. After a referral from a TikTok influencer who provides entrepreneurship advice, the Burnsville resident reached out to MCCD seeking funding to expand her business and launch her website. The business owner is a low-income single mother and qualified for a microgrant which MCCD facilitated, and the client received in January. The funding allowed the business owner to increase operational efficiency, buy inventory and supplies, and launch a new product line. The entrepreneur is currently working on rebuilding her credit so that she can apply for an MCCD loan for the remaining funding to build and launch her website. Business Type: Food Truck and Cookie Dough Wholesaler Business City: Eagan (Home Based & mobile throughout Twin Cities region) Residence City: Eagan Referred by: LEDC MCCD Financing: $50,000 Owner Equity: $7,000 Facilitated financing/ funding: $50,000 Overview: MCCD collaborated with nonprofit partner on this $107,000 project to support a growing BIPOC and woman owned cookie dough business. The business was established in 2021 as a response to the lack of organic cookie dough available in the market. Their dough offers all organic, non-GMO, fair trade ingredients with no preservatives and comes in three flavors. There are two branches to their business: the business-to- business, where they sell wholesale through a distributor to co-ops and grocery stores and a direct to customer retail - selling both the dough and fresh-baked cookies at farmers markets and festivals. They had been selling Page 9 of 33 Open to Business Report 4 via a pop-up tent and recently came across the opportunity to purchase a food trailer to streamline their operations. The borrowers needed funding food trailer improvements, equipment, inventory, and working capital to help them take advantage of the upcoming selling season. Business Type: Fashion Optical Boutique Business City: Savage Residence City: Burnsville Referred by: Municipality MCCD Financing: $82,173.70 Owner Equity: $30,636 Facilitated financing/ funding: $35,217.30 & $11,250 Overview: This entrepreneur is a licensed optician operating in the optical industry for more than 20 years. He has always dreamed of opening his own optical store near his home in Burnsville to start to build wealth for himself. He found an ideal storefront in Savage and reached out to MCCD for assistance with the project funding for inventory, equipment, startup expenses, and ~ 3 months of working capital for operations. Total project costs are $159,227 including the equity investment of $30,636 and a $11,250 tenant improvement budget from the landlord. The loan request was approved by MCCD’s loan committee on April 24th contingent on 30% participation from MN DEED through the Small Business Credit Initiative, application is currently pending, and approval is expected in early May. Business Type: RV Tank Cleaning Business City: Rosemount Residence City: Rosemount Referred by: Community Partner MCCD Financing: $30,000 Owner Equity: $2,500 Overview: This husband-and-wife team have a combined professional background in customer service, custodial cleaning, and mechanicals. They also love camping and the outdoors and have been avid RV'ers for years. As they grow older and become empty nesters, they saw an opportunity to make a side business out of their passion and have something that they could continue into retirement. Through their time spent at campgrounds in the Midwest they became aware of the opportunity to become a licensed dealer for an RV Tank cleaning franchise. The business owners see this as a promising opportunity to generate additional income now and into retirement while doing something that they truly love. Business Type: Gift Shop Business City: Apple Valley Residence City: Lakeville Referred by: CDA website Facilitated financing/ funding: $50,000 Owner Equity: $70,000 Overview: This first-time entrepreneur came to MCCD seeking technical assistance and access to capital to help her in the final stretch of opening a new gift shop in Apple Valley. Advising was provided on topics including lease negotiation, insurance, build-out, networking, and business banking. Connection to a local credit union provided the client with much-needed working capital and a line of credit for her store. The store is slated to open mid-late October Page 10 of 33 Open to Business Report 5 Business Type: Amazon Retailer Business City: Hastings Residence City: Hastings Referred by: Municipality MCCD Financing: $20,000 Owner Equity: $2,000 Overview: This woman-owner business reached out to MCCD seeking working capital for new inventory. The business owner is a nurse full time and started this Amazon-based retail business in late 2024 for supplementary income. The business experienced a few strong months and then stagnated when inventory ran out in early 2025. The client needed additional working capital to ramp up once more and the MCCD loan provided an important cushion so that inventory will be continually stocked and the business can focus on growth. Business Type: Home Healthcare / PCA Business City: Eagan Residence City: Farmington Referred by: Other Entrepreneur MCCD Financing: $75,000 – includes $50,000 in forgivable capital Owner Equity: $3,750 Overview: MCCD began working with this business owner in 2023 when he initially reached out seeking financing to grow his home health care business based in Eagan. He decided to table his request at that time and reached back out in spring, 2025. Working closely with his loan officer for more than 100 hours, the application for working capital was finalized in September. At the same time, MCCD kicked off it’s participation in the Groundbreak loan program* and the client ultimately became MCCD’s first recipient of a Groundbreak loan structure which includes a $25,000 loan that is immediately forgiven, a $25,000 loan at 1% interest only and eligible for forgiveness after five years, and a $25,0000 loan with typical repayment terms. *MCCD is one of four local nonprofits selected to participate in the Groundbreak project. Rather than advertise the program, we are matching eligible clients internally and then giving them the news after the loan is approved. The Groundbreak Coalition is a group of over 40 corporate, civic, and philanthropic leaders committed to demonstrating that with enough resources, a racially equitable future is possible first in Minnesota and then across the country. The goal of the small business loans is to provide early stage, growth capital to low-wealth entrepreneurs, including, but not limited to Black entrepreneurs, who historically have faced barriers to accessing such capital from traditional sources. 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. Credit Builder Loans YTD Resident City Loan Amount West Saint Paul $240 TOTAL $240 Page 11 of 33 Open to Business Report 6 Highlights, Networking, & Outreach Programming, Partnerships, & Trainings • July 30 – MCCD hosted a webinar titled Understanding Immigration Policy and Impacts on Small Businesses with panelists including Kwame Osafo-Addo, Attorney and Owner at TruLegalBiz; Brenda Pfahnl, Attorney and Owner at Colibri Legal PLLC; and Lisa Zamora and Diana Salas from the MN Department of Labor and Industry. The discussion included current updates and practical information for businesses regarding Immigration Policy changes. • September 19 & 20 – MCCD Senior Business Advisor & Loan Officer Luis Mendoza spoke with small business owners and entrepreneurs at LatinoLead's annual leadership conference, LíderCon. Luis’ session on Financial Foundations for Business Success was one of the many educational workshops offered at the event attended by hundreds of Latine leaders and allies. • November 5 – In partnership with UMN Law School MCCD will host a virtual Q&A session on small business law. This free virtual event is held twice annually and is designed for business owners at any stage. Law student panelists work with their supervising attorney to answer questions and provide legal resources and guidance to help navigate law questions and concerns. Stay tuned for more RSVP information. • November 6 – Mark your calendar for MCCD’s Annual Celebration. This year the event will be held at the B Suite in Minneapolis. All partners are welcome. RSVP and additional information here. Advertising & Outreach • July 11 & October 3 – Field Trip Friday is back! In July we visited businesses in Ramsey County and in October we visited businesses in Anoka County. Field trips are a fun way to engage local partners, highlight our clients, promote small businesses throughout our service area. More field trips to come in 2026 once the weather warms back up. • August 26 – MCCD engaged our lending partners and networks through a new E blast update on our loan program, loan products, and lending team. The E blast focused specifically on MCCD’s commercial real estate lending capabilities. • September 30 – Year to date outcomes and results were presented to Dakota County CDA and Cities at Eagan City Hall. • In the last quarter, banker and lender outreach occurred specifically with the BankOn Coalition, Frandsen Bank, F&M Bank, Lakeview Bank, Royal Credit Union Twin Cities Metro CDC, and US Bank as well as our Lender E blast which went out to 100+ lender partners and contacts. • In addition to lending outreach, written or in-person presentations were made and/or networking efforts were made including ongoing partnership discussions with UMN Law School, ACER, Dakota County Library System, City of Rosemount Port Authority presentation, Dakota County CDA presentation, Dakota County Regional Chamber, and City of Farmington monthly check-ins. Page 12 of 33 Open to Business Report 7 Quarterly Highlight Loan closing for Pokwo, Inc. MCCD’s first GroundBreak loan client. “This loan will help build my business. It is very difficult to operate a business without enough working capital. Thank you very much for your efforts. This will help me to grow the business to the next level now.“ - Apee Ochudo, owner of Pokwo, Inc. of Eagan Page 13 of 33 For Start-ups Advisor Express Fast and flexible financing. Quicker response timeline Loans up to $10,000 for small and early-stage microenterprises Flexible terms – from short-term financing (e.g., event funding) to 3–5-year repayment options Micro Loans Capital to help your business grow. For startups and early-stage businesses Loan terms of 3 to 5 years Loan amounts up to $25,000 for retail and service businesses and $50,000 for manufacturing businesses Helps businesses preserve working capital while securing the funds needed for growth. Provided in partnership with banks and lending institutions, these loans move your business forward with accessible, strategic funding to support: Business expansion, equipment and inventory purchases, and leasehold improvements Maximum loan amount of $300,000 (based on project needs) Flexible terms to fit your business goals Can be utilized for commercial real estate gap and acquisition financing Gap Financing For Growing Businesses MCCD offers an accessible fee-based loan options aligned with ethical and faith-based financial principles. Instead of traditional interest charges, this alternative approach uses transparent fees to cover the cost of lending and services. Our loan programs support entrepreneurs, small business owners, and shared ownership enterprises controlled by members who file taxes with an Individual Taxpayer Identification Number (ITIN). ITIN LendingFee-Based Lending 4% loans to support the conversion, startup, and growth of shared ownership enterprises, focusing on employee- owned co-ops, real estate investment co-ops, and commercial land trusts. Loan amounts: $50,000 – $300,000 (Lower and higher amounts considered case-by-case) Not intended for housing development or share purchasing No credit checks or personal guaranties required. Shared Ownership Loans O O C S SMALL BUSINESS LOAN PRODUCTS About Us The Minnesota Consortium of Community Developers (MCCD) is a nonprofit community development loan fund with a mission to expand economic prosperity by investing in and stewarding community development resources. We provide flexible capital to borrowers who encounter challenges accessing commercial financing, ensuring more inclusive economic opportunities. MCCD’s Open to Business Program provides capital and technical assistance to entrepreneurs and business owners in the Twin Cities Metro. Our specialized development support and financing for Shared Ownership enterprises are available to community groups and existing businesses statewide. MCCD can provide services or make referrals for services in English, Spanish, Somali, and Hmong. (612) 789-7337 | info@mccdmn.org | 3137 Chicago Ave Minneapolis, MN 55407 Contact Us Interest rates of 4-7% with flexible terms Page 14 of 33 Page 15 of 33 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Deanna Kuennen, Community & Economic Development Director Department: EDA Subject: Entreprenurial Ecosystem Discussion Meeting: Economic Development Authority - Oct 20 2025 INTRODUCTION: Earlier this year the EDA directed Staff to develop programming to support local requires which intentional, be should programming EDA entrepreneurs. Farmington understanding the current entrepreneurial ecosystem, then exploring options for supporting these entrepreneurs. The University of Minnesota Extensions (Extensions) offers resources to help communities focus on entrepreneurs. Brigid Tuck, Senior Economic Impact Analyst and Neil Linscheid, State Specialist of Entrepreneurship with the University of Minnesota Extensions will attend the EDA meeting. They will lead a discussion with the EDA that uses available supporting for and ecosystem options the understand to data existing entrepreneurs in small towns. DISCUSSION: Before developing programming aimed at supporting entrepreneurs in the community, it is important to first understand the existing entrepreneurial ecosystem. Staff has invited the University of Minnesota Extension (Extension) staff to attend the EDA meeting. Brigid Tuck is a of Specialist State a is Linscheid and Analyst Impact Economic Senior Neil Entrepreneurship. They bring insights, research, and data that serves as the foundation to walk the EDA through a discussion that looks at available data and what that data means, which will lead to exploring options for supporting the entrepreneurs in Farmington. Extension provides resources to strengthen community support for entrepreneurs and has broad experience in helping Minnesota towns become entrepreneurial communities. Additional information about their work can be found here: Strengthening community support for entrepreneurs | UMN Extension BUDGET IMPACT: Not applicable ACTION REQUESTED: No action. This is a discussion that will frame ways in which the EDA can move forward to Page 16 of 33 support and grow the local entrepreneurial ecosystem. Page 17 of 33 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 - Oct 20 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. In addition, a copy of the Dakota County Regional Chamber of Commerce presentation is attached. 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: 10-2025 meeting DCR Presentation 09-04-25 Page 18 of 33 Reporting Period: October 2025 DIRECTOR’S REPORT – providing project highlights and a summary of economic development activity. Projects & Initiatives • Rye Apartments Development City staff and Economic Development partners have been invited to a celebration with Yellow Tree and Rye Apartment staff, residents, city staff and economic development partners on Wednesday, October 29. Follow along: https://youtu.be/b5M_hJyF-7o **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 Staff continue to reach out to local businesses. 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. Page 19 of 33 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. Project Gamma – DID NOT SUBMIT – seeking existing building, minimum, 250,ooo SF in size for AI and robotics company. Project Green – SUBMITTED sites for consideration – distribution hub seeking industrial land for purchase With land available as purchase agreements have expired, staff have contacted older RFI holders to determine if there are additional fits for newly available land. • 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 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 o Cushman & Wakefield o NEOO Partners Page 20 of 33 o CERRON Commercial Properties, LLC o G. M. / Acumen Business Solutions, LLC o Upland Real Estate Group o Cushing Terrell o Remain RE / APPRO • 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, hospitality, manufacturing, commercial/retail, quick serve restaurants, 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 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 University of Minnesota Extension Office – October Page 21 of 33 GreaterMSP DEED Utility Partners – Xcel, Dakota Electric, Northern Natural Gas • MREE September – staff were invited and participated in the Minnesota Real Estate Exchange meeting. This organization is different than MREJ and opened conversations with different brokers on actionable items. • MREJ – Summits/Conferences/Awards Staff tabled at the MREJ Finance and Tech Summit. These tabling and networking events foster deeper conversations and connections with brokers/agents/developers who typically see Team Farmington presenting and tabling at the MREJ Summits. Staff will also be speaking at the upcoming MREJ Industrial Development Summit on November 14, 2025. • Other Speaking/Presentation Invitations & Commitments o August – Minnesota Shopping Center Association, Strategic Retail and Development Growth: Perspectives and Collaboration with Community & Economic Development Experts. This was a *new* invitation, expanding the reach of Farmington’s story, vision, and opportunities. o September – Dakota County Regional Chamber of Commerce – Community & Economic Development Updates from Partner Cities. *Presentation attached* o September – Staff participated on an economic development panel for a course at the University of Minnesota Humphrey Institute. o September – Staff represented the city at Fissan Training’s open house. o November – Staff will be attending the Minnesota Commercial Association of Real Estate (MNCAR) Expo. 500+ experts in the commercial real estate industry attend. • Economic Development Website Staff is working on updating the economic development content on the city’s website. The purpose is 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 Page 22 of 33 • 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 – Part 2 With the success of our first in a series of collaborations with Dakota County Technical College (DCTC) and Inver Hills Community College and feedback received by businesses that participated, we look to bring back Matt Boudinot from DCTC to present a deep dive into AI. We are targeting Wednesday, January 21, from 2:00 to 4:00 PM at the Dakota County Library in Farmington. 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): • Strategic Land Acquisition/Shovel Readiness Staff continue to explore opportunities to increase the available land supply and/or the level of shovel readiness associated with existing land. Conversations are underway with developers and property owners exploring what this could mean for key opportunity sites. More information to come. Page 23 of 33 2025 DCR CHAMBER - ADVOCACY & ISSUES FORUM Pa g e 2 4 o f 3 3 …THIS IS FARMINGTON… Pa g e 2 5 o f 3 3 LAST YEAR I ENDED THE PRESENTATION WITH… MORE TO COME IN 2024! •Rambling River Center - $2.5m project funded with $750k federal grant •North Creek Greenway – final segment funded with $1.6m grant •3 cadets – funded by State of MN IC POET $150k grant •Police Department Fence project – funded with $865k federal grant •Farmington Skate Park -$1m project partially funded with Mn DNR $350k grant •Wayfinding Plan – adopted by the City Council •“Re-launch” – Minnesota GreenStep Cities initiative (inactive since 2019) •Denmark Trail Townhomes – 40-unit CDA development – completed! •The Emery – 74-unit AWARD WINNING apartment project •The Rye – 168-unit market rate apartment (opening soon!) •Alternative Urban Areawide Review (AUAR) – 600+ acres – providing shovel-ready land •My Town Season 1 – one of 7 communities highlighted. Season 2 recently wrapped filming. •Dakota County Lumber expansion plus many other local business investments & expansions •Grocery Store Market Analysis – believe it or not, Farmington does not have a grocery store. •Enhanced partnership with DCTC – business survey & delivering WF training •HBC – fiber to the premise + free wi-fi in city parks •Tract – Farmington Technology Park Master Plan …AND WE DELIVERED! Pa g e 2 6 o f 3 3 BOLD THINGS HAPPENING IN FARMINGTON… HOUSING DEVELOPMENT •2 new market-rate apartments (first in over 30 years!) •40-unit CDA townhome project (first of its kind) The Emery & The Rye Opened 2024 / Opening Soon (Award Winning!) Pa g e 2 7 o f 3 3 BOLD THINGS HAPPENING IN FARMINGTON… COMMUNITY DEVELOPMENT •Investments in our Seniors & in our Parks Rambling River Center - $2.5m project Closed facility for 9 months (relocated operations) Complete remodel Re-opened in August 2025 We listened.. COMING SOON Farmington Skate Park $1m project Pa g e 2 8 o f 3 3 BOLD THINGS HAPPENING IN FARMINGTON… ECONOMIC DEVELOPMENT •Farmington Technology Park •2.5m SF master planned data center park •$5B proposed project investmentPa g e 2 9 o f 3 3 BOLD THINGS HAPPENING IN FARMINGTON… ECONOMIC DEVELOPMENT Data Center (Farmington Technology Park) | Farmington, MN •Annexation •Environmental Review – started 4/2024 •Rezoning/PUD (data centers are allowable uses in 2 zoning districts since 2015) •Comprehensive Plan Amendment •Met-Council Approval - 5/2025 Pa g e 3 0 o f 3 3 MOVING FORWARD… WE WILL CONTINUE TO TELL OUR STORY & LEAN INTO OUR STRENGTHS AND AUTHENTICITY. Pa g e 3 1 o f 3 3 MOVING FORWARD…WELCOMING A NEW CHAPTER “What you just heard is only a glimpse of the spirit and momentum pulsing through Farmington. These stories reflect a powerful truth: new and old businesses are thriving, growing,  and redefining what’s possible right here in our city.   And that energy… It’s contagious. Here in Farmington, we don’t wait for the future to happen, we  shape it. We take pride in being unexpectedly bold—in pushing boundaries, lifting each other up,  and turning big ideas into real results.   We’ve faced challenges, yes. But we’ve met them with courage, creativity, and collaboration. And now,  we’re stepping into the future with more momentum than ever.  The state of our city…It’s not just strong—it’s bold, bright, and just getting started.” Mayor Joshua Hoyt, 2025 State of the City & MORE TO COME… Pa g e 3 2 o f 3 3 THANK YOU Pa g e 3 3 o f 3 3