Loading...
HomeMy WebLinkAbout06.15.26 EDA Packet Meeting Location: Farmington City Hall, Conf Room 170 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA Monday, June 15, 2026 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 May 18, 2026 Regular Economic Development Authority meeting. Approve the minutes of the May 18, 2026 Regular Economic Development Authority meeting. Agenda Item: Minutes of the May 18, 2026 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. Chill Studio - MicroGrant Application Approve Resolution 2026-06 awarding $4,257.46 in MicroGrant Funding for Chill Studio's dipper expansion and installation. Authorize the Director to execute the MicroGrant Agreement with Chill Studio. 9 - 26 Page 1 of 89 Agenda Item: Chill Studio - MicroGrant Application - Pdf 8.2. Farmington Greenhouse - MicroGrant Application Approve Resolution 2026-04 that awards a $10,000 in MicroGrant Funding for Farmington Greenhouse's update and expansion. Authorize the Director to execute the MicroGrant Agreement with Farmington Greenhouse. Agenda Item: Farmington Greenhouse - MicroGrant Application - Pdf 27 - 44 8.3. Farmington Gymnastics & Cheer - MicroGrant Application Approve Resolution 2026-05 awarding $4,574 in MicroGrant Funding for Farmington Gymnastics & Cheer for equipment upgrades. Authorize the Director to execute the MicroGrant Agreement with Farmington Gymnastics. Agenda Item: Farmington Gymnastics & Cheer - MicroGrant Application - Pdf 45 - 62 8.4. Flavors of Nations LLC: DBA Salaam Global Flavors - MicroGrant Application Approve Resolution 2026-07 that awards a $10,000 in MicroGrant Funding for Salaam Global Flavor's purchase and installation of critical commercial grocery business equipment. Authorize the Director to execute the MicroGrant Agreement with Salaam Global Flavors. Agenda Item: Flavors of Nations LLC: DBA Salaam Global Flavors - MicroGrant Application - Pdf 63 - 81 8.5. Downtown Social Update and Discussion No action required. This is topic is for discussion only. Agenda Item: Downtown Social Update and Discussion - Pdf 82 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 83 - 89 10. ADJOURN Page 2 of 89 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Melissa Geis, City Clerk Department: EDA Subject: Minutes of the May 18, 2026 Regular Economic Development Authority meeting. Meeting: Economic Development Authority - Jun 15 2026 INTRODUCTION: For approval are the minutes of the May 18, 2026 Regular Economic Development Authority Meeting. ACTION REQUESTED: Approve the minutes of the May 18, 2026 Regular Economic Development Authority meeting. ATTACHMENTS: 05.18.26 EDA Minutes Page 3 of 89 EDA Minutes of May 18, 2026 Page 1 of 3 City of Farmington Economic Development Authority Regular Meeting Minutes Monday, May 18, 2026 The Farmington Economic Development Authority met in regular session on Monday, May 18, 2026 at Farmington City Hall, 430 Third Street, Farmington, Minnesota. 1. CALL TO ORDER Commissioner Cordes called the meeting to order at 5:00 pm. 2. PLEDGE OF ALLEGIANCE Commissioner Cordes lead everyone in the Pledge of Allegiance. 3. ROLL CALL Members Present: Commissioners Holly Bernatz, Nick Lien, and Steve Wilson Members Absent: Commissioner Phil Windschitl Staff Present: Lynn Gorski, City Administrator Deanna Kuennen, EDA Executive Director Stephanie Aman, Economic Development Coordinator Kim Sommerland, Finance Director Kellee Omlid, Parks and Recreation Director John Powell, Public Works Director Melissa Geis, City Clerk Also Present: Ryan Hentges, President and CEO, Dakota Electric Jeffrey Rainey, Economic Development, Dakota Electric Peggy Johnson, Community Relations Director, Dakota Electric Betty Jo Kiesow, Vice President of Engineering & Administration, Dakota Electric Jane Siebenaler, C.E.M, Dakota Electric Kara Hildreth, Dakota County Tribune 4. APPROVE AGENDA Motion was made by Commissioner Wilson and seconded by Commissioner Bernatz to approve the agenda as presented. Motion carried: 4 ayes / 0 nays Page 4 of 89 Page 2 of 3 EDA Minutes of May 18, 2026 5. CITIZEN COMMENTS No one addressed the EDA to speak. 6. CONSENT AGENDA 6.1 Minutes of the April 20, 2026 Regular Economic Development Authority Meeting 6.2 Monthly Financial Report Motion was made by Commissioner Lien and seconded by Commissioner Bernatz to approve the Consent Agenda, as presented. Motion carried: 4 ayes / 0 nays 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS 8.1 Partnership Presentation – Dakota Electric Association EDA Commissioners participated in a conversation with Dakota Electric Association around collaboration and partnership opportunities. Discussion included:  Dakota Electric Associations’ history in Farmington dating back to 1937, and their role as a member service organization to provide safe, reliable, and affordable electricity.  They discussed their growth, today being one of the 20 largest cooperatives in the United States with over 120,000 members, around 200 They currently are revenue. in million $220 and employees, constructing a new headquarters facility and will be moving into the facility next summer.  Dakota Electric is the only regulated cooperative in Minnesota. As a regulated utility it means that they must have capacity to meet the load demand and can only energize up to what is procured. They are statutorily required to serve.  Dakota Electric does not own generation facilities. They focus on distribution from the substation to the user.  Large load users (>50 megawatts) require a multi-step process to determine when/what additional infrastructure will be needed to serve them, and studies to determine impact of the load on the entire distribution studies are the of developer’s The system. the costs Page 5 of 89 EDA Minutes of May 18, 2026 Page 3 of 3 responsibility, and contracts are approved by the Public Utility Commission (PUC). Similar studies and agreements are also required for the impact on the transmission system. Large Loads – Dakota Electric Association® Questions from the EDA ensued. It was reiterated that Dakota Electric is obligated to serve (statutorily required) and that development costs are the responsibility of the developer and not passed on to their existing members. Current customers do not take on costs or risks. In addition, Dakota Electric thanked the EDA for the opportunity to have the conversation and shared their ongoing commitment to supporting business growth and the economic development efforts of the city. 9. DIRECTOR’S REPORT 9.1 Director’s Report 10. ADJOURNMENT Motion was made by Commissioner Lien and seconded by Commissioner Wilson to adjourn the meeting at 6:05 pm. Motion carried: 4 ayes / 0 nays Respectfully submitted, Melissa Geis City Clerk Page 6 of 89 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 - Jun 15 2026 INTRODUCTION: Attached is the monthly Financial Report for June 2026. DISCUSSION: Attached is the monthly Finance Report for June 2026. The report includes a summary of the approved 2026 budget and year-to-date expenditures. ACTION REQUESTED: Accept the Monthly Financial Report. ATTACHMENTS: June Budget Report Page 7 of 89 6/11/2026 BUDGET REPORT - JUNE EDA MTG 2025 2025 2026 2026 Activity Amended Budget Activity /YTD Expenditures Amended Budget GL Number Description Fund: 200 HRA/ECONOMIC DEVELOPMENT Account Category: Estimated Revenues UNRESERVED FUND BALANCE 411,501.80 200-0000-4011-000 CURRENT PROPERTY TAX 250,000.00 250,000.00 0.00 250,000.00 200-0000-4516-000 ADMINISTRATION FEES - PROJECTS 0.00 0.00 0.00 0.00 200-0000-4955-000 INTEREST ON INVESTMENTS 25,546.57 2,600.00 0.00 5,200.00 Estimated Revenues 275,546.57 252,600.00 0.00 255,200.00 TOTAL REVENUE Account Category: Appropriations 200-2000-6280-000 BOOKS & SUBSCRIPTIONS 1,755.51 150.00 245.00 150.00 The Business Journal 200-2000-6220-000 EQUIP SUPPLIES & PARTS 27.97 Supplied for installation of 15 min signs 200-2000-6254-000 SIGNS & STRIPING MATERIALS 967.19 15 min parking signs 200-2000-6401-000 PROFESSIONAL SERVICES 37,260.60 25,000.00 1,040.00 25,000.00 appraisal 200-2000-6403-000 LEGAL 496.00 3,000.00 2,792.00 3,000.00 legal review, property acquisition, downtown social agreement 200-2000-6426-000 INSURANCE 404.63 600.00 0.00 600.00 200-2000-6445-000 POSTAGE/SHIPPING FEES 0.00 1,000.00 0.00 1,000.00 200-2000-6450-000 OUTSIDE PRINTING 2,148.54 3,000.00 1,191.16 3,000.00 banners, notebooks 200-2000-6455-000 LEGAL NOTICES 0.00 500.00 0.00 500.00 200-2000-6460-000 MEMBER DUES & LICENSURE 8,060.00 8,500.00 3,675.00 8,500.00 DCRC, MAEDC, MREE, EDAM 200-2000-6470-000 TRAINING & SUBSISTANCE 5,940.28 5,000.00 2,918.73 5,000.00 EDAM, Fluence, Next26, AFCOM 200-2000-6480-000 MEETING EXPENSE 523.14 500.00 240.00 500.00 Items for MREJ SE Summit 200-2000-6485-000 MILEAGE REIMBURSEMENT 784.98 5,100.00 234.42 5,100.00 200-2000-6492-000 ADVERTISING 0.00 0.00 0.00 0.00 200-2000-6505-000 EQUIPMENT REPAIR/MAINTENANCE 0.00 1,000.00 0.00 1,000.00 200-2000-6550-000 DEVELOPER PAYMENTS 0.00 50,000.00 0.00 50,000.00 200-2000-6570-000 PROGRAMMING EXPENSE 18,709.00 85,000.00 18,750.00 85,000.00 MREJ, CDA (Open to Business) 200-2000-6570-000-20001 PROGRAMMING EXPENSE (DTOWN SOCIAL)502.37 Downtown Social expenses (maximum $6000) 200-2000-6570-000-20002 PROGRAMMING EXPENSE (MICRO GRANT) 200-2000-6910-000 LAND $56,009.13 Acquisition of 512 3rd St 76,242.67 188,350.00 88,592.97 188,350.00 YTD EXPENDITURES/2026 BUDGET Fund 200 - HRA/ECONOMIC DEVELOPMENT: TOTAL ESTIMATED REVENUES 275,546.57 252,600.00 0.00 255,200.00 TOTAL EDA FUNDS (including unallocated funds) TOTAL APPROPRIATIONS 76,242.67 188,350.00 88,592.97 188,350.00 NET OF REVENUES & APPROPRIATIONS:199,303.90 64,250.00 (88,592.97)66,850.00 unallocated EDA FUNDS 166,607.03 Remaining YTD Unspent Balance Pa g e 8 o f 8 9 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Stephanie Aman, Economic Development Coordinator Department: EDA Subject: Chill Studio - MicroGrant Application Meeting: Economic Development Authority - Jun 15 2026 INTRODUCTION: The City of Farmington EDA launched a refreshed MicroGrant Program for 2026 which has been designed to meet businesses where they are at. The program provides up to $10,000 in matching funds per business, with a total of $50,000 available community-wide. This approach allows local businesses to leverage EDA support alongside their own investment, helping them move forward with projects that strengthen operations, expand capacity, and enhance the overall economic vitality of Farmington. DISCUSSION: Chill is a family owned and run ice cream shop. They serve a Super-Premium Hard Scoopable ice cream from Wisconsin - Chocolate Shoppe. Chill offers cups and cones as well as shakes, malts and ice cream pies during the holidays; this is Chill’s second season under this ownership and location in Farmington. Chill is requesting a MicroGrant to help cover the cost of an additional dipping cabinet. Adding this new dipping cabinet would allow them to carry a larger variety of flavors for their customers giving them more space to provide a wider range of flavors for those with special dietary restrictions as well (dairy-free, peanut free, etc). Chill’s customer base has been growing considerably since they opened last year, and they want to ensure they have something for everyone who stops by and helps support the local small businesses in Farmington. Chill Studio is an eligible business and has submitted all required application paperwork including scope of the project, sufficient qualifying bids and a dialogue demonstrating the project and the need for funding. Chill Studio has met all of the requirements set forth by the EDA to apply for the grant, they have provided quotes, with the high quote being $8,845.91 and low quote being $8,514.91 which makes them eligible to apply for $4,257.46 maximum in matching grant funding. Page 9 of 89 BUDGET IMPACT: $4,257.46 ACTION REQUESTED: Approve Resolution 2026-06 awarding $4,257.46 in MicroGrant Funding for Chill Studio's dipper expansion and installation. Authorize the Director to execute the MicroGrant Agreement with Chill Studio. ATTACHMENTS: EDA Resolution 2026-06 MicroGrant for Chill Studio DOCS-#226645-v5-MicroGrant_Agreement - Chill Page 10 of 89 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2026-06 A RESOLUTION APPROVING MICROGRANT FUNDING TO CHILL STUDIO FOR CERTAIN BUSINESS IMPROVEMENTS. WHEREAS,the City of Farmington Economic Development Authority and City Council has identified business growth as a priority pillar; and WHEREAS, the City of Farmington Economic Development Authority has approved funding for an updated MicroGrant program, allocating fifty-thousand dollars ($50,000.00) of their budget, to support projects that enhance and expand small businesses; and WHEREAS, the Farmington EDA has agreed to award grant funds up to half of the estimated costs for eligible projects to businesses, not to exceed ten thousand and no dollars ($10,000.00); and WHEREAS, on June 10, 2026, Laura Sage of Chill Studio (Grantee) applied for a $4,257.46 Micro Grant through the Farmington Economic Development Authority MicroGrant program; and WHEREAS,the Grantee has presented eligible estimates or bids that will allow them to purchase and install a new ice cream dipper to add variety to their offerings (Project) that total $8,514.91.00; and WHEREAS, the Grantee agrees to obtain all required and necessary permits to perform the work for which the MicroGrant funds were requested; and WHEREAS, neither the City of Farmington nor the EDA shall in any event be liable to Chill Studio, nor to any of its agents, employees, guests, or invitees, for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under the Agreement. WHEREAS, the Grantee shall indemnify, save, defend and hold harmless the City of Farmington and the EDA from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project of any such manner arriving from the Agreement. Page 11 of 89 NOW, THEREFORE, BE IT RESOLVED, that the Farmington EDA hereby grant Laura Sage of Chill Studio a MicroGrant in the amount of $4,257.46. Adopted by the Farmington Economic Development Authority of the City of Farmington, Minnesota, this 15th day of June, 2026. ATTEST: ____________________________ ______________________________ Jake Cordes, Chair Deanna Kuennen, Executive Director Page 12 of 89 1 226645v5 Farmington Economic Development Authority Micro Grant Program GRANT AGREEMENT This MICRO GRANT AGREEMENT (“Agreement”) is made and entered into this day of , 20 (“Effective Date”), by and between Laura Sage, Chill Studio, a Minnesota retail ice cream shop, whose principal place of business is at 115 Elm Street, Suite D, Farmington, Minnesota (“Grantee”), and the City of Farmington Economic Development body public Authority, a , and politic, corporate of State the subdivision of political and a Minnesota, having its principal place of business at 430 Third Street, Farmington, Minnesota (the “Authority” or “Grantor”). RECITALS 1. Grantor has established a Micro Grant Program (“Program”) to support small the Farmington, by providing financial City of of municipal within the businesses boundaries support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and 2. According to Program guidelines, qualifying businesses may apply for grants of up to $10,000 to be of Program the requirements the meet that projects used for , including contributing matching funds equal to the amount granted from the Program; and 3. Grantee is the owner of Chill Studio, which located at 115 Elm Street, Suite D in the City of Farmington, County of Dakota, State of Minnesota (PID: 142.583.101.031) (“Property”); and 4. Grantee has applied for Program funds for the purchase and installation of a new dipping cabinet to expand product offerings, which is described more fully in Section 2 of this Agreement (“Project”); and 5. Grantor has reviewed Grantee’s Program application, has determined that Grantee and the Project meet the requirements of the Program; and 6. Grantee desires to participate in the Program, on the terms and conditions set forth in this Agreement; and 7. Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds by the provided and approved for disbursement Authority as grants in accordance with the Authority’s powers under Minnesota Statutes, Chapter 469, and the Authority’s authorization of the Program pursuant to Resolution No. 2026-02 adopted by the Authority on April 13, 2026. NOW, THEREFORE, in consideration of the promises contained in this Agreement, the Authority and Grantee agree as follows: Page 13 of 89 2 226645v5 1. Grant Terms. A. Grant Amount. The Authority has approved Four-Thousand Two-Hundred and Fifty-Seven and 46/100 Dollars ($4,257.46) in Program funds for the Project (the “Grant Funds”). The Grant Funds are a grant and not a loan. As such, the Grant Funds are a grant of funds and no portion of the Grant is to be repaid by Grantee to Authority unless mutually agreed to by the Authority and Grantee or an Event of Default (as defined in Section 8 of this Agreement) occurs. B. Matching Funds. As set forth in the Program guidelines, grantees are required to contribute funds equal to the amount of grant funds provided under the Program (“Matching Funds”). Regardless of the overall value or cost of a proposed project, the maximum grant amount shall not exceed $10,000. C. Disbursement of Grant Funds. Grant Funds with be disbursed based on the Estimated Project Costs, as such is defined in Section 2 of this Agreement, and according to the following processes, as applicable: i. For Projects Less than $10,000. (a) If the Project is estimated to cost less than $10,000, the Authority will disburse the Grant Funds in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the required Matching Funds. (b) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. ii. For Projects Over $10,000. (a) If the Project is estimated to cost more than $10,000, the Authority will disburse $5,000 of the Grant Funds (the “First Installment”) in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the entire sum of the required Matching Funds. (b) After Grantee has spent the First Installment and the entire sum of the Matching Funds, Grantee may request the balance of the Grant Funds. The Authority will disburse the balance of the Grant Funds upon proof from Grantee that the First Installment and the entire sum of the Matching Funds have been spent on the Project, and that the First Installment has been spent only on Permitted Uses, as such is defined in this Section 1. (c) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. Page 14 of 89 3 226645v5 D. Use of Grant Funds. Grant Funds may only be used for the Project as set forth in Grantee’s application and as approved by the Authority (the “Permitted Uses”). Such Permitted Uses are set forth in Exhibit A. 2. Project. A. Grantee agrees and acknowledges that the approved Project that was outlined in the Grantee’s original application is described as follows: i. Purchase and installation of a new dipping cabinet for ice cream. Adding this new dipping cabinet would allow the business to carry a larger variety of flavors for customers and gives more space to provide a wider range of flavors for those with special dietary restrictions as well (dairy-free, peanut free, etc) . ii. Estimated Project Costs. Grantee has estimated that the total costs for completion of the Project is $8,514.91 (the “Estimated Project Costs”). B. Grantee is not allowed to make any changes, revisions, or alterations to the Project without the prior approval of the Authority. If Grantee wishes to modify the Project, Grantee must submit an updated Project description to the Authority’s Executive Director to be reviewed by the Authority. The Authority will approve or deny, in its sole discretion, the proposed revised Project description at the next earliest regular Authority Meeting. C. If applicable, Grantee agrees to apply for and receive all necessary permits and approvals from the City of Farmington and from any other governing authority with jurisdiction over the Property related to the construction of the Project prior to work beginning. D. Grantee agrees to complete the Project in accordance with all applicable federal, state, and local laws, rules, codes, and regulations, including but not limited to, the Farmington City Code, State Building Code, and Fire Code. E. Grantee is responsible for selecting the means, methods, and manner of performing the Agreement requirements and completing the Project. 3. Grant Term; Grant Closeout. The Project shall be completed in a timely manner, and all Grant Funds must be used within one (1) year of the initial disbursement of Grant Funds to Grantee. The Grant Term will expire upon Grantee’s completion of the following Grant Closeout process: A. Grantee must notify the Authority when the Project is complete. B. Grantee must submit a final report on the Project, which must include the following, which are, collectively, the “Final Report”: Page 15 of 89 4 226645v5 i. Receipts, invoices, and other relevant documentation of how the Grant Funds were used; ii. Documentation showing Grantee’s contribution of the required matching funds; iii. Description of the impact of the Grant Funds on Grantee’s business; and iv. Photos of the completed Project (the “Final Report”). C. The Grant Term may be extended one (1) time, with the length of the extension to be determined based on the circumstances related to the completion of the Project. If Grantee wishes to extend the Grant Term, Grantee must submit a written extension request to the Authority’s Executive Director at least thirty (30) days prior to the termination of the Grant Term. Such extension request must describe the reason for the request and the circumstances that prevent Grantee from completing the Project prior to the end of the Grant Term. The Authority, in its sole discretion, will approve or deny the extension request at the next earliest regular meeting of the Authority. 4. Obligations of Grantee. In addition to all other Grantee obligations set forth in this Agreement, Grantee is also responsible for the following: A. and execute must Agreement, Grantee Concurrent execution of with the this provide to the Authority its personal guarantee for repayment of the Grant Funds in the form set forth in Exhibit B to this Agreement. B. the any involves Project Property, and the of owner the not is Grantee If fee alterations to real property or structures that are not owned by Grantee, prior to commencement of any work on Grantee must provide written consent from the owner in the form set forth in Exhibit C to this Agreement. 5. Liability and Indemnification. A. Neither the Authority nor the City of Farmington shall in any event be liable to the Grantee, nor to any of its employees, agents, contactors, guests, or invitees, for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under this Agreement. B. Grantee shall indemnify, save, defend and hold harmless the Authority and the City of Farmington from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project or any such manner arising from this Agreement. C. This section 5 the terminationshall survive , expiration cancellationor this of Agreement. 6. Notices. or to the permitted due required When written notice is Project, this Agreement and/or Program, it must be addressed and delivered by hand or by the United States Mail to the following addresses: Page 16 of 89 5 226645v5 If to Grantor: Farmington Economic Development Authority Attn: Executive Director 430 Third Street Farmington, MN 55024 If to Grantee: Chill Studio Attn: Laura Sage 115 Elm Street, Suite D Farmington, MN 55024 7. Entire Agreement; Assignment; Modifications. A. the between the complete agreement Agreement This constitutes Authority and Grantee and supersedes any prior oral or written agreement(s) between the Authority and Grantee regarding the subject matter contained in this Agreement. There are no verbal agreements that change this Agreement. B. Grantee is not allowed to assign or transfer any rights or obligations under this Agreement without the prior written consent of the Authority. C. Any alterations, revisions, variations, modifications, amendments, or waivers of the provisions of the Agreement are valid only when they have been reduced to writing and signed by the authorized representatives of the Authority and Grantee. 8. Termination/Cancellation; Events of Default. A. Unless the Grant Term is extended as set forth in Section 3 of this Agreement, this Agreement will terminate upon Grantee’s submission of the Final Report as required by Section 3 of this Agreement. Only those terms identified in this Agreement as surviving termination or cancellation of this Agreement will continue after submission of the Final Report. B. if be funding cannot Agreement immediately terminate Authority may The this continued at a level sufficient to allow for the payment of the Grant Funds. Termination must be by written notice to Grantee. C. Prior to the disbursement of any Grant Funds, this Agreement may be cancelled by the Authority or Grantee at any time, with or without cause, upon thirty (30) days written notice to the other party. 9. Events of Default. A. Event of Default Defined. Any and all of the following events shall constitute an “Event of Default” under this Agreement: i. Grantee uses any portion of the Grant Funds for purposes other than specified in this Agreement. ii. the Grantee fails to comply with any of terms, conditions, requirements, representations, or provisions contained in its Program application, this Agreement, Page 17 of 89 6 226645v5 or any other Authority document. iii. Any of the information, documentation, or representations that Grantee supplied to Authority in its Application, this Agreement, or any other Authority document to induce Authority to make the Grant is determined to be false, untrue, or misleading in any material manner. B. Remedies. Upon the occurrence of an Event of Default, the Authority may immediately, without notice to Grantee, suspend its performance under this Agreement. After providing thirty (30) days written notice to Grantee of an Event of Default, but only if the alleged Event of Default has not been fully cured within said thirty (30) days by Grantee, the Authority may: i. Refrain from disbursing any further Grant Funds; ii. Demand that any amount of Grant Funds already disbursed to Grantee be immediately returned to the Authority, and upon such demand, Grantee shall immediately return such Grant Funds to the Authority; iii. Terminate this Agreement by written notice; iv. Prohibit Grantee from applying for or receiving any funding from the Micro Grant Program or any other financial assistance program offered by the Authority; and v. Pursue whatever action, including legal, equitable or administrative action, which may reasonable (including costs all necessary desirable to or appear collect attorneys’ fees) and any amounts due under this Agreement or to enforce the performance and observance of any obligation, agreement, or covenant hereof. C. No Remedy Exclusive. No remedy conferred by this Agreement upon or reserved to the Authority is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. A delay or omission to exercise any right or power accruing upon any Event of Default shall not impair any such right or power, and shall not be construed to be a waiver of such right or power, but any such right and power may be exercised from time to time and as often as may be deemed expedient by the Authority. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as provided in this Section 9. D. Implied by One Waiver No Additional Waiver agreement any the event In . contained in this Agreement should be breached by Grantee and the Authority waives enforcement of such a breach, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous, or subsequent breach under this Agreement. E. This Section 9 shall survive the termination, expiration, or cancellation of this Agreement. Page 18 of 89 7 226645v5 10. Records Availability and Access; Audit. A. Pursuant to Minnesota Statutes §16C.05, subd. 5, Grantee agrees that the Authority, City of Farmington, the Minnesota State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt and transcribe any books, documents, papers, or records that are pertinent to the accounting practices and procedures of Grantee that specifically involve the transactions relating to this Agreement. Grantee agrees to maintain these records for a minimum of six (6) years from the termination of this Agreement. B. All data in the application and this Agreement is subject to and will be classified according to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. The Authority may use the Final Reports for Authority meetings, publicity regarding the Authority’s economic development efforts, and any other use per the Authority’s discretion. C. Grantee will be financially responsible (liable) for any audit exception that occurs due to its negligence or failure to comply with the terms of the Agreement. D. This Section 10 shall survive the termination, expiration, or cancellation of this Agreement. 11. Conflict of Interest. No elected official, officer, or employee of the Authority or the City of Farmington shall during his or her tenure or employment, and for one year thereafter, have any interest, direct or indirect, in this Agreement or the Grant Funds. 12. Miscellaneous. A. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. Venue for all legal proceedings out of this Agreement, or its breach, must be in the appropriate state court within Dakota County, Minnesota. B. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. C. Grantee affirms that all information that has been submitted or will be submitted by the Grantee as part of the Micro Grant Application and verification process is true and correct. D. Grantee acknowledges that the Grant Funds may be subject to federal and state taxes, which shall be paid by Grantee. E. Grantee certifies that it is in compliance with Minnesota Statutes §176.181, subd. 2, pertaining to workers’ compensation insurance coverage. Page 19 of 89 8 226645v5 F. The Authority is allowed to promote the Project through informational pamphlets, press releases, research, reports, websites, signs, and similar public notices prepared by or for the Authority which may include photos and design elements. G. The Parties agree that the Grant is not a business subsidy as defined in Minnesota Statutes, Sections 116.993 to 116.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000. H. The Recitals at the beginning of this Agreement, and the Exhibits attached to this Agreement, of part incorporated into and made are are and correct, true each one this and Agreement. IN WITNESS WHEREOF, the Authority and Grantee have executed this Agreement to be effective as of the Effective Date first written above. [Remainder of page left blank intentionally. Signature page follows.] Page 20 of 89 9 226645v5 GRANTOR: FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: Jake Cordes, Chair By: Deanna Kuennen, Executive Director GRANTEE: NAME By: Laura Sage [printed name] [printed title] Page 21 of 89 10 226645v5 Exhibit A Permitted Uses As outlined in the applicant’s submission, the purchase and installation of a new dipping cabinet for ice cream. Adding this new dipping cabinet would allow the business to carry a larger variety of flavors for customers and gives more space to provide a wider range of flavors for those with special dietary restrictions as well (dairy-free, peanut free, etc) Page 22 of 89 11 226645v5 Exhibit B Form of Personal Guarantee PERSONAL GUARANTY THIS PERSONAL GUARANTY (“Guaranty”) is made and entered into as of this ____ day of , 2026 (“Effective Date”) by and between Individual’s Name, whose address is Address, Farmington, Minnesota (“Guarantor”), and the City of Farmington Economic Development Authority, a public body, corporate and politic, and a political subdivision of the State at business of of principal Minnesota, having its 430 Third Street, Farmington, place Minnesota (the “Authority”). RECITALS A. The Authority has established a Micro Grant Program (“Program”) to support small businesses within the municipal boundaries of the City of Farmington, by providing financial support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and B. Simultaneously with the execution and delivery of this Guaranty, the Authority is providing Grant Funds in the amount of and 0/100 Dollars ($#,###.00) (the “Grant Funds”) to (“Grantee”) pursuant to that certain Micro Grant Program Agreement between the Authority and Grantee (the “Grant Agreement”); and C. The undesigned has agreed to personally guarantee the Grant Funds in the event that repayment of any or all Grant Funds must be repaid as a result of a default by Grantee under the Grant Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Guaranty and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Authority and Guarantor agree as follows: 1. Guaranty Agreement. On the terms and subject to the conditions set forth in this Guaranty, the Guarantor hereby, irrevocably and unconditionally, guarantees the full and timely repayment of all or part of the Grant Funds when demanded by the Authority. This Agreement shall remain fully enforceable regardless of any defenses that Guarantor may assert related to the Grant Funds, including, but not limited to, failure of consideration, statute of frauds, statute of limitations, and accord and satisfaction. The Obligations of the Guarantor set forth in this Agreement shall extend to all amendments, supplements, modifications, renewals, replacements or extensions of the Grant Agreement. 2. Representations and Warranties. Guarantor hereby represents and warrants that (i) the execution, delivery, and performance of this Agreement will not violate any law or any other material contract, agreement or understanding which is binding on the Guarantor; and (ii) Page 23 of 89 12 226645v5 this Guaranty is the valid and binding obligation of the Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer, and other similar laws relating to or affecting creditors’ rights generally from time-to- time in effect. 3. Default. As used in this Guaranty, the term “Event of Default” shall mean how that term is defined in Section 8 of the Grant Agreement. 4. Governing Law; Venue. This Guaranty and all transactions contemplated by this Guaranty shall be governed, construed, and enforced in accordance with the laws of the State of Minnesota. Any proceeding to enforce, interpret, challenge the validity of, or recover for the breach of any provision of, this Guaranty shall be filed in Dakota County District Court. The Authority shall and expenses, including costs all Guarantor entitled to recover from be the attorneys’ fees, litigation expenses and court costs, incurred in enforcing its rights under this Guaranty regardless of whether a lawsuit is commenced. 5. Successors and Assigns. This Guaranty shall be binding upon and shall inure to the benefit of the Authority and the Guarantor, their successors and assigns; provided, however, neither the Authority nor the Guarantor may assign its rights or obligations under this Guaranty without the prior written consent of the other party. 6. Amendment. No amendment of or waiver under this Guaranty or any rights of the Authority or the Guarantor shall be effective with respect to any party unless amended, waived or consented to in writing by such party. 7. Presentment, Demand, Notice. Guarantor waives presentment, demand for payment, notice of dishonor or nonpayment, and protest of any instrument evidencing the Grant Funds. The Authority shall not be required first to resort for repayment of the Grant Funds, or first to enforce, realize upon, or exhaust any collateral security for the Grant Funds, before enforcing this Guaranty. 8. Cumulative Liability. The liability of Guarantor under this Guaranty is in addition to and shall be cumulative with all other liabilities of the undersigned to the Authority as Guarantor or otherwise, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. [Remainder of page left blank intentionally. Signature page follows.] Page 24 of 89 13 226645v5 IN WITNESS WHEREOF, the Authority and Guarantor have executed this Agreement to be effective as of the Effective Date first written above. FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: [exhibit copy – not for execution] Jake Cordes, Chair By: [exhibit copy – not for execution] Deanna Kuennen, Executive Director GUARANTOR: NAME By: [exhibit copy – not for execution] [printed name] [printed title] Page 25 of 89 14 226645v5 Exhibit C Fee Owner Consent FEE OWNER CONSENT TO PROPERTY IMPROVEMENTS PURSUANT TO FARMINGTON EDA MICRO GRANT PROGRAM , a [state and business type/individual/other], is the fee owner of all or part of the Property defined in that certain Micro Grant Program Grant Agreement between the Farmington Economic Development Authority as “Grantor” and as “Grantee” (the “Agreement”). The Grantee is a tenant at the Property. The undersigned hereby affirms that I understand that Grantee, my tenant, proposes to use the Grant Funds to make certain improvements or modifications to the Property (the “Project”). I hereby consent to such action by the Grantee, and waive any objection to the same. I agree to indemnify and hold harmless the Grantor and the City of Farmington for any modifications made to the Property, and from any claims, liability, causes of action, damages, losses, and costs including attorneys’ fees resulting directly or indirectly from any act or use of funds provided to Grantee by Grantor through its Micro Grant Program, including the defect or claimed defect of any of the Project. Dated this day of , 20 . FEE OWNER: NAME By: [exhibit copy – not for execution] [printed name] [printed title] STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this day of , 20 , by [printed name], the [printed title] of , a [state and business type], on behalf of said entity. Notary Public Page 26 of 89 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Stephanie Aman, Economic Development Coordinator Department: EDA Subject: Farmington Greenhouse - MicroGrant Application Meeting: Economic Development Authority - Jun 15 2026 INTRODUCTION: The City of Farmington EDA launched a refreshed MicroGrant Program for 2026 which has been designed to meet businesses where they are at. The program provides up to $10,000 in matching funds per business, with a total of $50,000 available community-wide. This approach allows local businesses to leverage EDA support alongside their own investment, helping them move forward with projects that strengthen operations, expand capacity, and enhance the overall economic vitality of Farmington. DISCUSSION: Farmington Greenhouse is requesting a $10,000 matching EDA MicroGrant to support a combined expansion and infrastructure improvement project at their current location. The project includes a new greenhouse that will increase production capacity and installing high-efficiency heating units within the new and existing structures to enhance operational reliability. The improvements directly support the business’s growth trajectory, improves product reliability, and elevates the availability of locally grown plants throughout Farmington and the surrounding region. The proposed new greenhouse increases total available growing space, enabling Farmington Greenhouse to expand its offerings of annuals, perennials, vegetables, herbs, hanging baskets, native plants, and pollinator-friendly varieties. Key benefits include: • Greater production capacity to meet seasonal demand • Improved environmental control for higher plant quality and consistency • Ability to introduce new specialty and native plant varieties • Long-term business sustainability through expanded operational capacity Page 27 of 89 Community benefits include enhanced access to locally grown products, increased local agricultural activity, job creation (seasonal and permanent), and additional contributions to citywide beautification efforts—from residential plantings to public spaces. Greenhouse Heating System Upgrade The heating upgrade replaces aging units with modern, energy-efficient equipment designed to improve growing conditions and reduce energy usage. Key benefits include: • More stable temperatures for better germination, growth, and overall crop quality • Lower natural gas consumption and decreased operating costs • Extended growing season on both ends of the year • More reliable use of existing space, increasing total yearly production capacity For the community, the ability for Farmington Greenhouse to update and expand their footprint will result in greater availability of high-quality local plants, reduced dependence on imported products, lower environmental impact, and continuation of educational workshops and seasonal events hosted by the greenhouse. Farmington Greenhouse is an eligible business and has submitted all required application paperwork including scope of the project, sufficient qualifying bids and a dialogue demonstrating the project and the need for funding. The owners of the Greenhouse have met all of the requirements set forth by the EDA to apply for the grant, they have provided quotes, with the high quote being $28,445.71 and lowest quote being $20,722.81 which makes them eligible to apply for $10,000 maximum in matching grant funding. BUDGET IMPACT: $10,000 ACTION REQUESTED: Approve Resolution 2026-04 that awards a $10,000 in MicroGrant Funding for Farmington Greenhouse's update and expansion. Authorize the Director to execute the MicroGrant Agreement with Farmington Greenhouse. ATTACHMENTS: EDA Resolution 2026-04 - MicroGrant for Farmington Greenhouse - 10000 DOCS-#226645-v5-MicroGrant_Agreement - Farmington Greenhouse Page 28 of 89 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2026-04 A RESOLUTION APPROVING MICROGRANT FUNDING TO FARMINGON GREENHOUSE FOR CERTAIN BUSINESS IMPROVEMENTS. WHEREAS, the City of Farmington Economic Development Authority and City Council has identified business growth as a priority pillar; and WHEREAS, the City of Farmington Economic Development Authority has approved funding for an updated MicroGrant program, allocating fifty-thousand dollars ($50,000.00) of their budget, to support projects that enhance and expand small businesses; and WHEREAS, the Farmington EDA has agreed to award grant funds up to half of the estimated costs for eligible projects to businesses, not to exceed ten thousand and no dollars ($10,000.00); and WHEREAS, on May 25, 2026, Justin Miller of Farmington Greenhouse (Grantee) applied for a $10,000.00 Micro Grant through the Farmington Economic Development Authority MicroGrant program; and WHEREAS, the Grantee has presented eligible estimates or bids that will allow them to purchase and install a new greenhouse and provide improvements to existing greenhouse structures that enhance their overall operational reliability (Project) that total $23,476.81.00; and WHEREAS, the Grantee agrees to obtain all required and necessary permits to perform the work for which the MicroGrant funds were requested; and WHEREAS, neither the City of Farmington nor the EDA shall in any event be liable to Farmington Greenhouse, to any of its nor agents, employees, guests, damages invitees, for or arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under the Agreement. WHEREAS the , the Grantee shall indemnify, save, defend and hold harmless City of Farmington and the EDA from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project of any such manner arriving from the Agreement. Page 29 of 89 NOW, THEREFORE, BE IT RESOLVED, that the Farmington EDA hereby grant Justin Miller of Farmington Greenhouse a MicroGrant in the amount of $10,000.00. Adopted by the Farmington Economic Development Authority of the City of Farmington, Minnesota, this 15th day of June, 2026. ATTEST: ____________________________ ______________________________ Jake Cordes, Chair Deanna Kuennen, Executive Director Page 30 of 89 1 226645v5 Farmington Economic Development Authority Micro Grant Program GRANT AGREEMENT This MICRO GRANT AGREEMENT (“Agreement”) is made and entered into this day of , 20 (“Effective Date”), by and between Justin Miller, Farmington Greenhouse, a Minnesota greenhouse, whose principal place of business is at 519 Willow Street, Farmington, Minnesota (“Grantee”), and the City of Farmington Economic Development body public Authority, a , corporate and politic, of State the subdivision of political and a Minnesota, having its principal place of business at 430 Third Street, Farmington, Minnesota (the “Authority” or “Grantor”). RECITALS 1. Grantor has established a Micro Grant Program (“Program”) to support small the Farmington, by providing financial of City of municipal within the boundaries businesses support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and 2. According to Program guidelines, qualifying businesses may apply for grants of up to $10,000 to be Program the of requirements the meet that projects used for , including contributing matching funds equal to the amount granted from the Program; and 3. Grantee is of owner the Farmington Greenhouse at located which , 519 Willow Street in the City of Farmington, County of Dakota, State of Minnesota (PID: 140.310.007.023) (“Property”); and 4. Grantee has applied for Program funds for a combined expansion and infrastructure update to include a new greenhouse and updating existing greenhouses ], which is described more fully in Section 2 of this Agreement (“Project”); and 5. Grantor has reviewed Grantee’s Program application, has determined that Grantee and the Project meet the requirements of the Program; and 6. Grantee desires to participate in the Program, on the terms and conditions set forth in this Agreement; and 7. Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the Authority grantsas in accordance with the Authority’s powers under Minnesota Statutes, Chapter 469, and the Authority’s authorization of the Program pursuant to Resolution No. 2026-02 adopted by the Authority on April 13, 2026. NOW, THEREFORE, in consideration of the promises contained in this Agreement, the Authority and Grantee agree as follows: Page 31 of 89 2 226645v5 1. Grant Terms. A. Grant Amount. The Authority has approved Ten-Thousand and 0/100 Dollars ($10,000.00) in Program funds for the Project (the “Grant Funds”). The Grant Funds are a grant and not a loan. As such, the Grant Funds are a grant of funds and no portion of the Grant is to be repaid by Grantee to Authority unless mutually agreed to by the Authority and Grantee or an Event of Default (as defined in Section 8 of this Agreement) occurs. B. Matching Funds. As set forth in the Program guidelines, grantees are required to contribute funds equal to the amount of grant funds provided under the Program (“Matching Funds”). Regardless of the overall value or cost of a proposed project, the maximum grant amount shall not exceed $10,000. C. Disbursement of Grant Funds. Grant Funds with be disbursed based on the Estimated Project Costs, as such is defined in Section 2 of this Agreement, and according to the following processes, as applicable: i. For Projects Less than $10,000. (a) If the Project is estimated to cost less than $10,000, the Authority will disburse the Grant Funds in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the required Matching Funds. (b) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. ii. For Projects Over $10,000. (a) If the Project is estimated to cost more than $10,000, the Authority will disburse $5,000 of the Grant Funds (the “First Installment”) in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the entire sum of the required Matching Funds. (b) After Grantee has spent the First Installment and the entire sum of the Matching Funds, Grantee may request the balance of the Grant Funds. The Authority will disburse the balance of the Grant Funds upon proof from Grantee that the First Installment and the entire sum of the Matching Funds have been spent on the Project, and that the First Installment has been spent only on Permitted Uses, as such is defined in this Section 1. (c) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. Page 32 of 89 3 226645v5 D. Use of Grant Funds. Grant Funds may only be used for the Project as set forth in Grantee’s application and as approved by the Authority (the “Permitted Uses”). Such Permitted Uses are set forth in Exhibit A. 2. Project. A. Grantee agrees and acknowledges that the approved Project that was outlined in the Grantee’s original application is described as follows: i. The project includes a new greenhouse that will increase production capacity and installing high-efficiency heating units within the new and existing structures to enhance operational reliability. ii. Estimated Project Costs. Grantee has estimated that the total costs for completion of the Project is $20,722.81 (the “Estimated Project Costs”). B. Grantee is not allowed to make any changes, revisions, or alterations to the Project without the prior approval of the Authority. If Grantee wishes to modify the Project, Grantee must submit an updated Project description to the Authority’s Executive Director to be reviewed by the Authority. The Authority will approve or deny, in its sole discretion, the proposed revised Project description at the next earliest regular Authority Meeting. C. If applicable, Grantee agrees to apply for and receive all necessary permits and approvals from the City of Farmington and from any other governing authority with jurisdiction over the Property related to the construction of the Project prior to work beginning. D. Grantee agrees to complete the Project in accordance with all applicable federal, state, and local laws, rules, codes, and regulations, including but not limited to, the Farmington City Code, State Building Code, and Fire Code. E. Grantee is responsible for selecting the means, methods, and manner of performing the Agreement requirements and completing the Project. 3. Grant Term; Grant Closeout. The Project shall be completed in a timely manner, and all Grant Funds must be used within one (1) year of the initial disbursement of Grant Funds to Grantee. The Grant Term will expire upon Grantee’s completion of the following Grant Closeout process: A. Grantee must notify the Authority when the Project is complete. B. Grantee must submit a final report on the Project, which must include the following, which are, collectively, the “Final Report”: i. Receipts, invoices, and other relevant documentation of how the Grant Funds were used; ii. Documentation showing Grantee’s contribution of the required matching funds; Page 33 of 89 4 226645v5 iii. Description of the impact of the Grant Funds on Grantee’s business; and iv. Photos of the completed Project (the “Final Report”). C. The Grant Term may be extended one (1) time, with the length of the extension to be determined based on the circumstances related to the completion of the Project. If Grantee wishes to extend th Terme Grant to the a submit written extension request , Grantee must Authority’s Executive Director at least thirty (30) days prior to the termination of the Grant Term. Such extension request must describe the reason for the request and the circumstances that prevent Grantee from completing the Project prior to the end of the Grant Term. The Authority, in its sole discretion, will approve or deny the extension request at the next earliest regular meeting of the Authority. 4. Obligations of Grantee. In addition to all other Grantee obligations set forth in this Agreement, Grantee is also responsible for the following: A. must and execute Agreement, Grantee Concurrent execution of with the this provide to the Authority its personal guarantee for repayment of the Grant Funds in the form set forth in Exhibit B to this Agreement. B. the any involves Project Property, and the of owner the not is Grantee If fee alterations to real property or structures that are not owned by Grantee, prior to commencement of any work on Grantee must provide written consent from the owner in the form set forth in Exhibit C to this Agreement. 5. Liability and Indemnification. A. Neither the Authority nor the City of Farmington shall in any event be liable to the Grantee, nor to any of its employees, agents, contactors, guests, or invitees, for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under this Agreement. B. Grantee shall indemnify, save, defend and hold harmless the Authority and the City of Farmington from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project or any such manner arising from this Agreement. C. section This 5 the terminationshall survive , expiration cancellationor this of Agreement. 6. Notices. When written notice is required or permitted due to the Project, this Agreement and/or Program, it must be addressed and delivered by hand or by the United States Mail to the following addresses: If to Grantor: Farmington Economic Development Authority If to Grantee: Farmington Greenhouse Attn: Justin Miller Page 34 of 89 5 226645v5 Attn: Executive Director 430 Third Street Farmington, MN 55024 519 Willow Street Farmington, MN 55024 7. Entire Agreement; Assignment; Modifications. A. the between the complete agreement Agreement This constitutes Authority and Grantee and supersedes any prior oral or written agreement(s) between the Authority and Grantee regarding the subject matter contained in this Agreement. There are no verbal agreements that change this Agreement. B. Grantee is not allowed to assign or transfer any rights or obligations under this Agreement without the prior written consent of the Authority. C. Any alterations, revisions, variations, modifications, amendments, or waivers of the provisions of the Agreement are valid only when they have been reduced to writing and signed by the authorized representatives of the Authority and Grantee. 8. Termination/Cancellation; Events of Default. A. Unless the Grant Term is extended as set forth in Section 3 of this Agreement, this Agreement will terminate upon Grantee’s submission of the Final Report as required by Section 3 of this Agreement. Only those terms identified in this Agreement as surviving termination or cancellation of this Agreement will continue after submission of the Final Report. B. if be funding cannot Agreement this immediately terminate Authority may The continued at a level sufficient to allow for the payment of the Grant Funds. Termination must be by written notice to Grantee. C. Prior to the disbursement of any Grant Funds, this Agreement may be cancelled by the Authority or Grantee at any time, with or without cause, upon thirty (30) days written notice to the other party. 9. Events of Default. A. Event of Default Defined. Any and all of the following events shall constitute an “Event of Default” under this Agreement: i. Grantee uses any portion of the Grant Funds for purposes other than specified in this Agreement. ii. Grantee fails to comply with any of the terms, conditions, requirements, representations, or provisions contained in its Program application, this Agreement, or any other Authority document. iii. Any of the information, documentation, or representations that Grantee supplied to Page 35 of 89 6 226645v5 Authority in its Application, this Agreement, or any other Authority document to induce Authority to make the Grant is determined to be false, untrue, or misleading in any material manner. B. Remedies. Upon the occurrence of an Event of Default, the Authority may immediately, without notice to Grantee, suspend its performance under this Agreement. After providing thirty (30) days written notice to Grantee of an Event of Default, but only if the alleged Event of Default has not been fully cured within said thirty (30) days by Grantee, the Authority may: i. Refrain from disbursing any further Grant Funds; ii. Demand that any amount of Grant Funds already disbursed to Grantee be immediately returned to the Authority, and upon such demand, Grantee shall immediately return such Grant Funds to the Authority; iii. Terminate this Agreement by written notice; iv. Prohibit Grantee from applying for or receiving any funding from the Micro Grant Program or any other financial assistance program offered by the Authority; and v. Pursue whatever action, including legal, equitable or administrative action, which may costs reasonable (including all desirable to or necessary appear collect attorneys’ fees) and any amounts due under this Agreement or to enforce the performance and observance of any obligation, agreement, or covenant hereof. C. No Remedy Exclusive. No remedy conferred by this Agreement upon or reserved to the Authority is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. A delay or omission to exercise any right or power accruing upon any Event of Default shall not impair any such right or power, and shall not be construed to be a waiver of such right or power, but any such right and power may be exercised from time to time and as often as may be deemed expedient by the Authority. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as provided in this Section 9. D. WaiverImplied by One Waiver No Additional . agreement any the event In contained in this Agreement should be breached by Grantee and the Authority waives enforcement of such a breach, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous, or subsequent breach under this Agreement. E. This Section 9 shall survive the termination, expiration, or cancellation of this Agreement. 10. Records Availability and Access; Audit. Page 36 of 89 7 226645v5 A. Pursuant to Minnesota Statutes §16C.05, subd. 5, Grantee agrees that the Authority, City of Farmington, the Minnesota State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt and transcribe any books, documents, papers, or records that are pertinent to the accounting practices and procedures of Grantee that specifically involve the transactions relating to this Agreement. Grantee agrees to maintain these records for a minimum of six (6) years from the termination of this Agreement. B. All data in the application and this Agreement is subject to and will be classified according to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. The Authority may use the Final Reports for Authority meetings, publicity regarding the Authority’s economic development efforts, and any other use per the Authority’s discretion. C. Grantee will be financially responsible (liable) for any audit exception that occurs due to its negligence or failure to comply with the terms of the Agreement. D. This Section 10 shall survive the termination, expiration, or cancellation of this Agreement. 11. Conflict of Interest. No elected official, officer, or employee of the Authority or the City of Farmington shall during his or her tenure or employment, and for one year thereafter, have any interest, direct or indirect, in this Agreement or the Grant Funds. 12. Miscellaneous. A. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. Venue for all legal proceedings out of this Agreement, or its breach, must be in the appropriate state court within Dakota County, Minnesota. B. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. C. Grantee affirms that all information that has been submitted or will be submitted by the Grantee as part of the Micro Grant Application and verification process is true and correct. D. Grantee acknowledges that the Grant Funds may be subject to federal and state taxes, which shall be paid by Grantee. E. Grantee certifies that it is in compliance with Minnesota Statutes §176.181, subd. 2, pertaining to workers’ compensation insurance coverage. F. The Authority is allowed to promote the Project through informational pamphlets, press releases, research, reports, websites, signs, and similar public notices prepared by or for the Authority which may include photos and design elements. Page 37 of 89 8 226645v5 G. The Parties agree that the Grant is not a business subsidy as defined in Minnesota Statutes, Sections 116.993 to 116.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000. H. The Recitals at the beginning of this Agreement, and the Exhibits attached to this Agreement, of part incorporated into and made are each one and correct, true this are and Agreement. IN WITNESS WHEREOF, the Authority and Grantee have executed this Agreement to be effective as of the Effective Date first written above. [Remainder of page left blank intentionally. Signature page follows.] Page 38 of 89 9 226645v5 GRANTOR: FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: Jake Cordes, Chair By: Deanna Kuennen, Executive Director GRANTEE: NAME By: Justin Miller [printed name] [printed title] Page 39 of 89 10 226645v5 Exhibit A Permitted Uses As outlined in the applicant’s submission, the project includes a new greenhouse that will increase production capacity and installing high-efficiency heating units within the new and existing structures to enhance operational reliability. Page 40 of 89 11 226645v5 Exhibit B Form of Personal Guarantee PERSONAL GUARANTY THIS PERSONAL GUARANTY (“Guaranty”) is made and entered into as of this ____ day of , 2026 (“Effective Date”) by and between Individual’s Name, whose address is Address, Farmington, Minnesota (“Guarantor”), and the City of Farmington Economic Development Authority, a public body, corporate and politic, and a political subdivision of the State a business of of principal Minnesota, having its place t 430 Third Street, Farmington, Minnesota (the “Authority”). RECITALS A. The Authority has established a Micro Grant Program (“Program”) to support small businesses within the municipal boundaries of the City of Farmington, by providing financial support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and B. Simultaneously with the execution and delivery of this Guaranty, the Authority is providing Grant Funds in the amount of and 0/100 Dollars ($#,###.00) (the “Grant Funds”) to (“Grantee”) pursuant to that certain Micro Grant Program Agreement between the Authority and Grantee (the “Grant Agreement”); and C. The undesigned has agreed to personally guarantee the Grant Funds in the event that repayment of any or all Grant Funds must be repaid as a result of a default by Grantee under the Grant Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Guaranty and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Authority and Guarantor agree as follows: 1. Guaranty Agreement. On the terms and subject to the conditions set forth in this Guaranty, the Guarantor hereby, irrevocably and unconditionally, guarantees the full and timely repayment of all or part of the Grant Funds when demanded by the Authority. This Agreement shall remain fully enforceable regardless of any defenses that Guarantor may assert related to the Grant Funds, including, but not limited to, failure of consideration, statute of frauds, statute of limitations, and accord and satisfaction. The Obligations of the Guarantor set forth in this Agreement shall extend to all amendments, supplements, modifications, renewals, replacements or extensions of the Grant Agreement. 2. Representations and Warranties. Guarantor hereby represents and warrants that (i) the execution, delivery, and performance of this Agreement will not violate any law or any other material contract, agreement or understanding which is binding on the Guarantor; and (ii) Page 41 of 89 12 226645v5 this Guaranty is the valid and binding obligation of the Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer, and other similar laws relating to or affecting creditors’ rights generally from time-to- time in effect. 3. Default. As used in this Guaranty, the term “Event of Default” shall mean how that term is defined in Section 8 of the Grant Agreement. 4. Governing Law; Venue. This Guaranty and all transactions contemplated by this Guaranty shall be governed, construed, and enforced in accordance with the laws of the State of Minnesota. Any proceeding to enforce, interpret, challenge the validity of, or recover for the breach of any provision of, this Guaranty shall be filed in Dakota County District Court. The Authority shall and expenses, including costs all Guarantor entitled to recover from be the attorneys’ fees, litigation expenses and court costs, incurred in enforcing its rights under this Guaranty regardless of whether a lawsuit is commenced. 5. Successors and Assigns. This Guaranty shall be binding upon and shall inure to the benefit of the Authority and the Guarantor, their successors and assigns; provided, however, neither the Authority nor the Guarantor may assign its rights or obligations under this Guaranty without the prior written consent of the other party. 6. Amendment. No amendment of or waiver under this Guaranty or any rights of the Authority or the Guarantor shall be effective with respect to any party unless amended, waived or consented to in writing by such party. 7. Presentment, Demand, Notice. Guarantor waives presentment, demand for payment, notice of dishonor or nonpayment, and protest of any instrument evidencing the Grant Funds. The Authority shall not be required first to resort for repayment of the Grant Funds, or first to enforce, realize upon, or exhaust any collateral security for the Grant Funds, before enforcing this Guaranty. 8. Cumulative Liability. The liability of Guarantor under this Guaranty is in addition to and shall be cumulative with all other liabilities of the undersigned to the Authority as Guarantor or otherwise, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. [Remainder of page left blank intentionally. Signature page follows.] Page 42 of 89 13 226645v5 IN WITNESS WHEREOF, the Authority and Guarantor have executed this Agreement to be effective as of the Effective Date first written above. FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: [exhibit copy – not for execution] Jake Cordes, Chair By: [exhibit copy – not for execution] Deanna Kuennen, Executive Director GUARANTOR: NAME By: [exhibit copy – not for execution] [printed name] [printed title] Page 43 of 89 14 226645v5 Exhibit C Fee Owner Consent FEE OWNER CONSENT TO PROPERTY IMPROVEMENTS PURSUANT TO FARMINGTON EDA MICRO GRANT PROGRAM , a [state and business type/individual/other], is the fee owner of all or part of the Property defined in that certain Micro Grant Program Grant Agreement between the Farmington Economic Development Authority as “Grantor” and as “Grantee” (the “Agreement”). The Grantee is a tenant at the Property. The undersigned hereby affirms that I understand that Grantee, my tenant, proposes to use the Grant Funds to make certain improvements or modifications to the Property (the “Project”). I hereby consent to such action by the Grantee, and waive any objection to the same. I agree to indemnify and hold harmless the Grantor and the City of Farmington for any modifications made to the Property, and from any claims, liability, causes of action, damages, losses, and costs including attorneys’ fees resulting directly or indirectly from any act or use of funds provided to Grantee by Grantor through its Micro Grant Program, including the defect or claimed defect of any of the Project. Dated this day of , 20 . FEE OWNER: NAME By: [exhibit copy – not for execution] [printed name] [printed title] STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this day of , 20 , by [printed name], the [printed title] of , a [state and business type], on behalf of said entity. Notary Public Page 44 of 89 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Stephanie Aman, Economic Development Coordinator Department: EDA Subject: Farmington Gymnastics & Cheer - MicroGrant Application Meeting: Economic Development Authority - Jun 15 2026 INTRODUCTION: The City of Farmington EDA launched a refreshed MicroGrant Program for 2026 which has been designed to meet businesses where they are at. The program provides up to $10,000 in matching funds per business, with a total of $50,000 available community-wide. This approach allows local businesses to leverage EDA support alongside their own investment, helping them move forward with projects that strengthen operations, expand capacity, and enhance the overall economic vitality of Farmington. DISCUSSION: Farmington Gymnastics & Cheer (FGC) is dedicated to providing children ages 2 and up with opportunities to grow, learn, and build confidence through gymnastics and cheer. FGC offers a wide variety of recreational classes, competitive gymnastics and cheer teams, tumbling classes, camps, private lessons, open gym times and birthday parties. FGC is committed to creating a positive and encouraging environment where athletes of all skill levels can develop both physically and personally. Farmington Gymnastics & Cheer is experiencing continued growth, with increasing enrollment in their recreational, preschool, and competitive programs. As class participation expands, they are seeking grant funding to purchase additional and updated equipment to safely support the growing number of the athletes served in our community. If awarded, this funding would help provide essential gymnastics equipment to accommodate more participants, allowing their business continued growth. This investment would directly benefit the children and families in our community. Farmington Gymnastcis & Cheer is an eligible business and has submitted all required application paperwork including scope of the project, sufficient qualifying bids and a dialogue demonstrating the project and the need for funding. Page 45 of 89 The owners of the FGC have met all of the requirements set forth by the EDA to apply for the grant, they have provided quotes, with the high quote being $9,576.00 and lowest quote being $9,148.00 which makes them eligible to apply for $4,574 maximum in matching grant funding. BUDGET IMPACT: $4,574 ACTION REQUESTED: Approve Resolution 2026-05 awarding $4,574 in MicroGrant Funding for Farmington Gymnastics & Cheer for equipment upgrades. Authorize the Director to execute the MicroGrant Agreement with Farmington Gymnastics. ATTACHMENTS: EDA Resolution 2026-05 - MicroGrant for FCG - 4574 DOCS-#226645-v5-MicroGrant_Agreement - FGC Page 46 of 89 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2026-05 A RESOLUTION APPROVING MICROGRANT FUNDING TO FARMINGON GYMNASTICS AND CHEER FOR CERTAIN BUSINESS IMPROVEMENTS. WHEREAS, the City of Farmington Economic Development Authority and City Council has identified business growth as a priority pillar; and WHEREAS, the City of Farmington Economic Development Authority has approved funding for an updated MicroGrant program, allocating fifty-thousand dollars ($50,000.00) of their budget, to support projects that enhance and expand small businesses; and WHEREAS, the Farmington EDA has agreed to award grant funds up to half of the estimated costs for eligible projects to businesses, not to exceed ten thousand and no dollars ($10,000.00); and WHEREAS, on May 28, 2026, Lynn Bauman of Farmington Gymnastics & Cheer (Grantee) applied for a $4,574.00 Micro Grant through the Farmington Economic Development Authority MicroGrant program; and WHEREAS, the Grantee has presented eligible estimates or bids that will allow them to purchase updated gymnastics equipment for their growing programs (Project) that total $9,148.00; and WHEREAS, the Grantee agrees to obtain all required and necessary permits to perform the work for which the MicroGrant funds were requested; and WHEREAS, neither the City of Farmington nor the EDA shall in any event be liable to Farmington Gymnastics & Cheer, nor to any of its agents, employees, guests, or invitees, for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under the Agreement. WHEREAS, the Grantee shall indemnify, save, defend and hold harmless the City of Farmington and the EDA from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project of any such manner arriving from the Agreement. Page 47 of 89 NOW, THEREFORE, BE IT RESOLVED, that the Farmington EDA hereby grant Lynn Bauman of Farmington Gymnastics & Cheer a MicroGrant in the amount of $4,574.00. Adopted by the Farmington Economic Development Authority of the City of Farmington, Minnesota, this 15th day of June, 2026. ATTEST: ____________________________ ______________________________ Jake Cordes, Chair Deanna Kuennen, Executive Director Page 48 of 89 1 226645v5 Farmington Economic Development Authority Micro Grant Program GRANT AGREEMENT This MICRO GRANT AGREEMENT (“Agreement”) is made and entered into this day of , 20 (“Effective Date”), by and between Lynn Bauman, Farmington Gymnastics & Cheer, a Minnesota Gymnastics and Cheer business, whose principal place of business is at 315 Elm Street, Farmington, Minnesota (“Grantee”), and the City of Farmington Economic Development Authority, a public body, corporate and politic, and a political subdivision of the State of Minnesota, having its principal place of business at 430 Third Street, Farmington, Minnesota (the “Authority” or “Grantor”). RECITALS 1. Grantor has established a Micro Grant Program (“Program”) to support small businesses within the municipal boundaries of the City of Farmington, by providing financial support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and 2. According to Program guidelines, qualifying businesses may apply for grants of up to $10,000 to be Program the of requirements that meet the projects used for , including contributing matching funds equal to the amount granted from the Program; and 3. Grantee is the owner of Farmington Gymnastics and Cheer, which located at 315 Elm Street Farmington, City of in the Dakota, County of Minnesota of State (PID: 147.700.026.111) (“Property”); and 4. Grantee has applied for Program funds for purchase of new equipment for the gym, which is described more fully in Section 2 of this Agreement (“Project”); and 5. Grantor has reviewed Grantee’s Program application, has determined that Grantee and the Project meet the requirements of the Program; and 6. Grantee desires to participate in the Program, on the terms and conditions set forth in this Agreement; and 7. Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds provided and approved for disbursement by the Authority as grants in accordance with the Authority’s powers under Minnesota Statutes, Chapter 469, and the Authority’s authorization of the Program pursuant to Resolution No. 2026-02 adopted by the Authority on April 13, 2026. NOW, THEREFORE, in consideration of the promises contained in this Agreement, the Authority and Grantee agree as follows: Page 49 of 89 2 226645v5 1. Grant Terms. A. Grant Amount. The Authority has approved Four-Thousand Five Hundred and Seventy-Four and 0/100 Dollars ($4,574.00) in Program funds for the Project (the “Grant Funds”). The Grant Funds are a grant and not a loan. As such, the Grant Funds are a grant of funds and no portion of the Grant is to be repaid by Grantee to Authority unless mutually agreed to by the Authority and Grantee or an Event of Default (as defined in Section 8 of this Agreement) occurs. B. Matching Funds. As set forth in the Program guidelines, grantees are required to contribute funds equal to the amount of grant funds provided under the Program (“Matching Funds”). Regardless of the overall value or cost of a proposed project, the maximum grant amount shall not exceed $10,000. C. Disbursement of Grant Funds. Grant Funds with be disbursed based on the Estimated Project Costs, as such is defined in Section 2 of this Agreement, and according to the following processes, as applicable: i. For Projects Less than $10,000. (a) If the Project is estimated to cost less than $10,000, the Authority will disburse the Grant Funds in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the required Matching Funds. (b) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. ii. For Projects Over $10,000. (a) If the Project is estimated to cost more than $10,000, the Authority will disburse $5,000 of the Grant Funds (the “First Installment”) in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the entire sum of the required Matching Funds. (b) After Grantee has spent the First Installment and the entire sum of the Matching Funds, Grantee may request the balance of the Grant Funds. The Authority will disburse the balance of the Grant Funds upon proof from Grantee that the First Installment and the entire sum of the Matching Funds have been spent on the Project, and that the First Installment has been spent only on Permitted Uses, as such is defined in this Section 1. (c) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. Page 50 of 89 3 226645v5 D. Use of Grant Funds. Grant Funds may only be used for the Project as set forth in Grantee’s application and as approved by the Authority (the “Permitted Uses”). Such Permitted Uses are set forth in Exhibit A. 2. Project. A. Grantee agrees and acknowledges that the approved Project that was outlined in the Grantee’s original application is described as follows: i. Purchase and installation of essential gymnastics equipment to accommodate more participants, allowing the business continued growth. ii. Estimated Project Costs. Grantee has estimated that the total costs for completion of the Project is $9,148.00 (the “Estimated Project Costs”). B. Grantee is not allowed to make any changes, revisions, or alterations to the Project without the prior approval of the Authority. If Grantee wishes to modify the Project, Grantee must submit an updated Project description to the Authority’s Executive Director to be reviewed by the Authority. The Authority will approve or deny, in its sole discretion, the proposed revised Project description at the next earliest regular Authority Meeting. C. If applicable, Grantee agrees to apply for and receive all necessary permits and approvals from the City of Farmington and from any other governing authority with jurisdiction over the Property related to the construction of the Project prior to work beginning. D. Grantee agrees to complete the Project in accordance with all applicable federal, state, and local laws, rules, codes, and regulations, including but not limited to, the Farmington City Code, State Building Code, and Fire Code. E. Grantee is responsible for selecting the means, methods, and manner of performing the Agreement requirements and completing the Project. 3. Grant Term; Grant Closeout. The Project shall be completed in a timely manner, and all Grant Funds must be used within one (1) year of the initial disbursement of Grant Funds to Grantee. The Grant Term will expire upon Grantee’s completion of the following Grant Closeout process: A. Grantee must notify the Authority when the Project is complete. B. Grantee must submit a final report on the Project, which must include the following, which are, collectively, the “Final Report”: i. Receipts, invoices, and other relevant documentation of how the Grant Funds were used; ii. Documentation showing Grantee’s contribution of the required matching funds; iii. Description of the impact of the Grant Funds on Grantee’s business; and Page 51 of 89 4 226645v5 iv. Photos of the completed Project (the “Final Report”). C. The Grant Term may be extended one (1) time, with the length of the extension to be determined based on the circumstances related to the completion of the Project. If Grantee wishes to extend th Terme Grant to the a submit written extension request , Grantee must Authority’s Executive Director at least thirty (30) days prior to the termination of the Grant Term. Such extension request must describe the reason for the request and the circumstances that prevent Grantee from completing the Project prior to the end of the Grant Term. The Authority, in its sole discretion, will approve or deny the extension request at the next earliest regular meeting of the Authority. 4. Obligations of Grantee. In addition to all other Grantee obligations set forth in this Agreement, Grantee is also responsible for the following: A. must and execute Agreement, Grantee Concurrent execution of with the this provide to the Authority its personal guarantee for repayment of the Grant Funds in the form set forth in Exhibit B to this Agreement. B. the any involves Project Property, and the of owner the not is Grantee If fee alterations to real property or structures that are not owned by Grantee, prior to commencement of any work on Grantee must provide written consent from the owner in the form set forth in Exhibit C to this Agreement. 5. Liability and Indemnification. A. Neither the Authority nor the City of Farmington shall in any event be liable to the Grantee, nor to any of its employees, agents, contactors, guests, or invitees, for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under this Agreement. B. Grantee shall indemnify, save, defend and hold harmless the Authority and the City of Farmington from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project or any such manner arising from this Agreement. C. section This 5 the terminationshall survive , expiration cancellationor this of Agreement. 6. Notices. When written notice is required or permitted due to the Project, this Agreement and/or Program, it must be addressed and delivered by hand or by the United States Mail to the following addresses: If to Grantor: Farmington Economic Development Authority Attn: Executive Director If to Grantee: Farmington Gymnastics & Cheer Attn: Lynn Bauman Page 52 of 89 5 226645v5 430 Third Street Farmington, MN 55024 315 Elm Street Farmington, MN 55024 7. Entire Agreement; Assignment; Modifications. A. the between the complete agreement Agreement This constitutes Authority and Grantee and supersedes any prior oral or written agreement(s) between the Authority and Grantee regarding the subject matter contained in this Agreement. There are no verbal agreements that change this Agreement. B. Grantee is not allowed to assign or transfer any rights or obligations under this Agreement without the prior written consent of the Authority. C. Any alterations, revisions, variations, modifications, amendments, or waivers of the provisions of the Agreement are valid only when they have been reduced to writing and signed by the authorized representatives of the Authority and Grantee. 8. Termination/Cancellation; Events of Default. A. Unless the Grant Term is extended as set forth in Section 3 of this Agreement, this Agreement will terminate upon Grantee’s submission of the Final Report as required by Section 3 of this Agreement. Only those terms identified in this Agreement as surviving termination or cancellation of this Agreement will continue after submission of the Final Report. B. if be funding cannot Agreement this immediately terminate Authority may The continued at a level sufficient to allow for the payment of the Grant Funds. Termination must be by written notice to Grantee. C. Prior to the disbursement of any Grant Funds, this Agreement may be cancelled by the Authority or Grantee at any time, with or without cause, upon thirty (30) days written notice to the other party. 9. Events of Default. A. Event of Default Defined. Any and all of the following events shall constitute an “Event of Default” under this Agreement: i. Grantee uses any portion of the Grant Funds for purposes other than specified in this Agreement. ii. Grantee fails to comply with any of the terms, conditions, requirements, representations, or provisions contained in its Program application, this Agreement, or any other Authority document. iii. Any of the information, documentation, or representations that Grantee supplied to Authority in its Application, this Agreement, or any other Authority document to Page 53 of 89 6 226645v5 induce Authority to make the Grant is determined to be false, untrue, or misleading in any material manner. B. Remedies. Upon the occurrence of an Event of Default, the Authority may immediately, without notice to Grantee, suspend its performance under this Agreement. After providing thirty (30) days written notice to Grantee of an Event of Default, but only if the alleged Event of Default has not been fully cured within said thirty (30) days by Grantee, the Authority may: i. Refrain from disbursing any further Grant Funds; ii. Demand that any amount of Grant Funds already disbursed to Grantee be immediately returned to the Authority, and upon such demand, Grantee shall immediately return such Grant Funds to the Authority; iii. Terminate this Agreement by written notice; iv. Prohibit Grantee from applying for or receiving any funding from the Micro Grant Program or any other financial assistance program offered by the Authority; and v. Pursue whatever action, including legal, equitable or administrative action, which may costs reasonable (including all desirable to or necessary appear collect attorneys’ fees) and any amounts due under this Agreement or to enforce the performance and observance of any obligation, agreement, or covenant hereof. C. No Remedy Exclusive. No remedy conferred by this Agreement upon or reserved to the Authority is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. A delay or omission to exercise any right or power accruing upon any Event of Default shall not impair any such right or power, and shall not be construed to be a waiver of such right or power, but any such right and power may be exercised from time to time and as often as may be deemed expedient by the Authority. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as provided in this Section 9. D. WaiverImplied by One Waiver No Additional . agreement any the event In contained in this Agreement should be breached by Grantee and the Authority waives enforcement of such a breach, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous, or subsequent breach under this Agreement. E. This Section 9 shall survive the termination, expiration, or cancellation of this Agreement. 10. Records Availability and Access; Audit. Page 54 of 89 7 226645v5 A. Pursuant to Minnesota Statutes §16C.05, subd. 5, Grantee agrees that the Authority, City of Farmington, the Minnesota State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt and transcribe any books, documents, papers, or records that are pertinent to the accounting practices and procedures of Grantee that specifically involve the transactions relating to this Agreement. Grantee agrees to maintain these records for a minimum of six (6) years from the termination of this Agreement. B. All data in the application and this Agreement is subject to and will be classified according to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. The Authority may use the Final Reports for Authority meetings, publicity regarding the Authority’s economic development efforts, and any other use per the Authority’s discretion. C. Grantee will be financially responsible (liable) for any audit exception that occurs due to its negligence or failure to comply with the terms of the Agreement. D. This Section 10 shall survive the termination, expiration, or cancellation of this Agreement. 11. Conflict of Interest. No elected official, officer, or employee of the Authority or the City of Farmington shall during his or her tenure or employment, and for one year thereafter, have any interest, direct or indirect, in this Agreement or the Grant Funds. 12. Miscellaneous. A. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. Venue for all legal proceedings out of this Agreement, or its breach, must be in the appropriate state court within Dakota County, Minnesota. B. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. C. Grantee affirms that all information that has been submitted or will be submitted by the Grantee as part of the Micro Grant Application and verification process is true and correct. D. Grantee acknowledges that the Grant Funds may be subject to federal and state taxes, which shall be paid by Grantee. E. Grantee certifies that it is in compliance with Minnesota Statutes §176.181, subd. 2, pertaining to workers’ compensation insurance coverage. F. The Authority is allowed to promote the Project through informational pamphlets, press releases, research, reports, websites, signs, and similar public notices prepared by or for the Authority which may include photos and design elements. Page 55 of 89 8 226645v5 G. The Parties agree that the Grant is not a business subsidy as defined in Minnesota Statutes, Sections 116.993 to 116.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000. H. The Recitals at the beginning of this Agreement, and the Exhibits attached to this Agreement, of part incorporated into and made are each one and correct, true this are and Agreement. IN WITNESS WHEREOF, the Authority and Grantee have executed this Agreement to be effective as of the Effective Date first written above. [Remainder of page left blank intentionally. Signature page follows.] Page 56 of 89 9 226645v5 GRANTOR: FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: Jake Cordes, Chair By: Deanna Kuennen, Executive Director GRANTEE: NAME By: Lynn Bauman [printed name] [printed title] Page 57 of 89 10 226645v5 Exhibit A Permitted Uses As outlined in the applicant’s submission, the purchase and installation of essential gymnastics equipment to accommodate more participants, allowing the business continued growth. Page 58 of 89 11 226645v5 Exhibit B Form of Personal Guarantee PERSONAL GUARANTY THIS PERSONAL GUARANTY (“Guaranty”) is made and entered into as of this ____ day of , 2026 (“Effective Date”) by and between Individual’s Name, whose address is Address, Farmington, Minnesota (“Guarantor”), and the City of Farmington Economic Development Authority, a public body, corporate and politic, and a political subdivision of the State of principal Minnesota, having its place 430 Third Street, Farmington, at business of Minnesota (the “Authority”). RECITALS A. The Authority has established a Micro Grant Program (“Program”) to support small businesses within the municipal boundaries of the City of Farmington, by providing financial support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and B. Simultaneously with the execution and delivery of this Guaranty, the Authority is providing Grant Funds in the amount of and 0/100 Dollars ($#,###.00) (the “Grant Funds”) to (“Grantee”) pursuant to that certain Micro Grant Program Agreement between the Authority and Grantee (the “Grant Agreement”); and C. The undesigned has agreed to personally guarantee the Grant Funds in the event that repayment of any or all Grant Funds must be repaid as a result of a default by Grantee under the Grant Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Guaranty and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Authority and Guarantor agree as follows: 1. Guaranty Agreement. On the terms and subject to the conditions set forth in this Guaranty, the Guarantor hereby, irrevocably and unconditionally, guarantees the full and timely repayment of all or part of the Grant Funds when demanded by the Authority. This Agreement shall remain fully enforceable regardless of any defenses that Guarantor may assert related to the Grant Funds, including, but not limited to, failure of consideration, statute of frauds, statute of limitations, and accord and satisfaction. The Obligations of the Guarantor set forth in this Agreement shall extend to all amendments, supplements, modifications, renewals, replacements or extensions of the Grant Agreement. 2. Representations and Warranties. Guarantor hereby represents and warrants that (i) the execution, delivery, and performance of this Agreement will not violate any law or any other material contract, agreement or understanding which is binding on the Guarantor; and (ii) Page 59 of 89 12 226645v5 this Guaranty is the valid and binding obligation of the Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer, and other similar laws relating to or affecting creditors’ rights generally from time-to- time in effect. 3. Default. As used in this Guaranty, the term “Event of Default” shall mean how that term is defined in Section 8 of the Grant Agreement. 4. Governing Law; Venue. This Guaranty and all transactions contemplated by this Guaranty shall be governed, construed, and enforced in accordance with the laws of the State of Minnesota. Any proceeding to enforce, interpret, challenge the validity of, or recover for the breach of any provision of, this Guaranty shall be filed in Dakota County District Court. The Authority shall and expenses, including costs all Guarantor entitled to recover from be the attorneys’ fees, litigation expenses and court costs, incurred in enforcing its rights under this Guaranty regardless of whether a lawsuit is commenced. 5. Successors and Assigns. This Guaranty shall be binding upon and shall inure to the benefit of the Authority and the Guarantor, their successors and assigns; provided, however, neither the Authority nor the Guarantor may assign its rights or obligations under this Guaranty without the prior written consent of the other party. 6. Amendment. No amendment of or waiver under this Guaranty or any rights of the Authority or the Guarantor shall be effective with respect to any party unless amended, waived or consented to in writing by such party. 7. Presentment, Demand, Notice. Guarantor waives presentment, demand for payment, notice of dishonor or nonpayment, and protest of any instrument evidencing the Grant Funds. The Authority shall not be required first to resort for repayment of the Grant Funds, or first to enforce, realize upon, or exhaust any collateral security for the Grant Funds, before enforcing this Guaranty. 8. Cumulative Liability. The liability of Guarantor under this Guaranty is in addition to and shall be cumulative with all other liabilities of the undersigned to the Authority as Guarantor or otherwise, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. [Remainder of page left blank intentionally. Signature page follows.] Page 60 of 89 13 226645v5 IN WITNESS WHEREOF, the Authority and Guarantor have executed this Agreement to be effective as of the Effective Date first written above. FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: [exhibit copy – not for execution] Jake Cordes, Chair By: [exhibit copy – not for execution] Deanna Kuennen, Executive Director GUARANTOR: NAME By: [exhibit copy – not for execution] [printed name] [printed title] Page 61 of 89 14 226645v5 Exhibit C Fee Owner Consent FEE OWNER CONSENT TO PROPERTY IMPROVEMENTS PURSUANT TO FARMINGTON EDA MICRO GRANT PROGRAM , a [state and business type/individual/other], is the fee owner of all or part of the Property defined in that certain Micro Grant Program Grant Agreement between the Farmington Economic Development Authority as “Grantor” and as “Grantee” (the “Agreement”). The Grantee is a tenant at the Property. The undersigned hereby affirms that I understand that Grantee, my tenant, proposes to use the Grant Funds to make certain improvements or modifications to the Property (the “Project”). I hereby consent to such action by the Grantee, and waive any objection to the same. I agree to indemnify and hold harmless the Grantor and the City of Farmington for any modifications made to the Property, and from any claims, liability, causes of action, damages, losses, and costs including attorneys’ fees resulting directly or indirectly from any act or use of funds provided to Grantee by Grantor through its Micro Grant Program, including the defect or claimed defect of any of the Project. Dated this day of , 20 . FEE OWNER: NAME By: [exhibit copy – not for execution] [printed name] [printed title] STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this day of , 20 , by [printed name], the [printed title] of , a [state and business type], on behalf of said entity. Notary Public Page 62 of 89 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Stephanie Aman, Economic Development Coordinator Department: EDA Subject: Flavors of Nations LLC: DBA Salaam Global Flavors - MicroGrant Application Meeting: Economic Development Authority - Jun 15 2026 INTRODUCTION: The City of Farmington EDA launched a refreshed MicroGrant Program for 2026 which has been designed to meet businesses where they are at. The program provides up to $10,000 in matching funds per business, with a total of $50,000 available community-wide. This approach allows local businesses to leverage EDA support alongside their own investment, helping them move forward with projects that strengthen operations, expand capacity, and enhance the overall economic vitality of Farmington. DISCUSSION: Salaam Global Flavors is a newly opened grocery and deli store located in the heart of Farmington. Farmington challenge: community a critical to established was It solve currently lacks a single dedicated grocery store, leaving residents without a neighborhood option for their daily food needs. Salaam Global Flavors serves as an essential hub, offering a curated selection of fresh, frozen, and international foods to meet the needs of the entire city. In addition to traditional shelf staples, the business features a deli component providing convenient, ready-to-eat meals. Because the storefront building currently lacks an on- premise commercial kitchen, Salaam Global Flavors utilizes its licensed mobile food unit for food production. Meals are safely prepared and packaged within the mobile unit, then transferred directly to the storefront for retail sale. A primary objective of Salaam Global Flavors is to support the regional economy and promote local agriculture. The store is actively creating dedicated retail shelf and display space for local farmers. This partnership provides regional agricultural producers with a consistent, fresh to directly products their year-round and showcase to venue sell neighborhood families, boosting localized food access. To expand inventory depth, safely scale production from the mobile unit, and properly support local farm partners, the store is seeking capital equipment upgrades. This project encompasses and comprehensive commercial refrigeration, freezing, hot-holding Page 63 of 89 infrastructure, alongside a modernized checkout and Point of Sale (POS) counter system. These improvements will enhance food safety compliance, maximize product shelf-life, eliminate spoilage, and streamline customer transactions. The requested grant dollars will be utilized to purchase and install critical commercial equipment(POS) and safety, food grocery, point-of-sale target funds These . the infrastructure constraints currently capping the store's growth and operational efficiency. Specifically, the grant will fund open refrigerated display cases to establish a dedicated, year-round retail market space for local farmers to showcase and sell their fresh produce. Glass-door commercial coolers and freezers will expand storage for chilled products and frozen goods, directly extending product shelf-life and reducing costly inventory spoilage. Additionally, because ready-to-eat meals are prepared off-site in a mobile kitchen unit due to the storefront's lack of a kitchen, the requested hot food holding equipment and heated display cabinets are necessary to safely store, display, and merchandise hot meals in compliance with strict food safety standards. Finally, funding will support checkout area improvements by introducing a modernized cash-out counter and an integrated POS system, including a computer, barcode scanner, and customer streamline will upgrade printer. This receipt checkout infrastructure transactions, reduce wait times, and dramatically improve inventory tracking accuracy. Salaam Global Flavors has chosen Farmington to expand their food truck business success into this brick-and-mortar grocery store – and with that comes large expenses and investments by the owners. By combining the requested $10,000 grant with an internal business match of an additional $10,000 to $15,000, Salaam Global Flavors will overcome the immediate limitations of its physical facility. This project transforms the storefront from a basic market into a fully equipped, modern neighborhood hub. It enables the business to diversify its revenue streams through expanded hot meal and frozen food volumes, minimizes operational losses from food waste, and builds strong supply partnerships with local agricultural producers. Ultimately, these improvements stabilize the store's long-term commercial viability while permanently securing vital food access for the entire Farmington community. Salaam Global Foods is an eligible business and has submitted all required application paperwork including scope of the project, sufficient qualifying bids and a dialogue demonstrating the project and the need for funding. The owners of the Salaam Global Flavors have met all of the requirements set forth by the EDA to apply for the grant, they have provided quotes, with the high quote being $38,407.91 and lowest quote being $21,579.17 which makes them eligible to apply for $10,000 maximum in matching grant funding. BUDGET IMPACT: $10,000 ACTION REQUESTED: Approve Resolution 2026-07 that awards a $10,000 in MicroGrant Funding for Salaam Page 64 of 89 Global Flavor's purchase and installation of critical commercial grocery business equipment. Authorize the Director to execute the MicroGrant Agreement with Salaam Global Flavors. ATTACHMENTS: EDA Resolution 2026-07 - MicroGrant for SGF - 10000 DOCS-#226645-v5-MicroGrant_Agreement - Salaam Global Page 65 of 89 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2026-07 A RESOLUTION APPROVING MICROGRANT FUNDING TO FLAVORS OF NATIONS LLC: DBA SALAAM GLOBAL FLAVORS FOR CERTAIN BUSINESS IMPROVEMENTS. WHEREAS, the City of Farmington Economic Development Authority and City Council has identified business growth as a priority pillar; and WHEREAS, the City of Farmington Economic Development Authority has approved funding for an updated MicroGrant program, allocating fifty-thousand dollars ($50,000.00) of their budget, to support projects that enhance and expand small businesses; and WHEREAS, the Farmington EDA has agreed to award grant funds up to half of the estimated costs for eligible projects to businesses, not to exceed ten thousand and no dollars ($10,000.00); and WHEREAS, on June 11, 2026, Keneni Ababulgu of Salaam Global Flavors (Grantee) applied for a $10,000 Micro Grant through the Farmington Economic Development Authority MicroGrant program; and WHEREAS, the Grantee has presented eligible estimates or bids that will allow them to purchase and freezers, coolers, including critical grocery commercial install equipment heated display cabinets, and updated Point of Sale equipment (Project) that total $21,579.17.00; and WHEREAS, the Grantee agrees to obtain all required and necessary permits to perform the work for which the MicroGrant funds were requested; and WHEREAS, neither the City of Farmington nor the EDA shall in any event be liable to Salaam Global Flavors, nor to any of its agents, employees, guests, or invitees, for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under the Agreement. WHEREAS the , the Grantee shall indemnify, save, defend and hold harmless City of Farmington and the EDA from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project of any such manner arriving from the Agreement. Page 66 of 89 NOW, THEREFORE, BE IT RESOLVED, that the Farmington EDA hereby grant Keneni Ababulgu of Salaam Global Flavors a MicroGrant in the amount of $10,000.00. Adopted by the Farmington Economic Development Authority of the City of Farmington, Minnesota, this 15th day of June, 2026. ATTEST: ____________________________ ______________________________ Jake Cordes, Chair Deanna Kuennen, Executive Director Page 67 of 89 1 226645v5 Farmington Economic Development Authority Micro Grant Program GRANT AGREEMENT This MICRO GRANT AGREEMENT (“Agreement”) is made and entered into this day of , 20 (“Effective Date”), by and between Keneni Ababulgu, Flavors of Nations, LLC: DBA Salaam Global Flavors, a Minnesota retail grocer and deli, whose principal place of business is at 115 Elm Street, Suite J, Farmington, Minnesota (“Grantee”), and the City of Farmington Economic Development Authority, a public body, corporate and politic, and a political subdivision of the State of Minnesota, having its principal place of business at 430 Third Street, Farmington, Minnesota (the “Authority” or “Grantor”). RECITALS 1. Grantor has established a Micro Grant Program (“Program”) to support small businesses within the municipal boundaries of the City of Farmington, by providing financial support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and 2. According to Program guidelines, qualifying businesses may apply for grants of up to $10,000 to be of Program the requirements meet that projects used for the , including contributing matching funds equal to the amount granted from the Program; and 3. Grantee is the owner of Salaam Global Flavors, which located at 115 Elm Street, Suite J in the City of Farmington, County of Dakota, State of Minnesota (PID: 142.583.101.031 ) (“Property”); and 4. Grantee has applied for Program funds for critical commercial grocery and point of sale infrastructure equipment, which is fully in Section described more 2 Agreement this of (“Project”); and 5. Grantor has reviewed Grantee’s Program application, has determined that Grantee and the Project meet the requirements of the Program; and 6. Grantee desires to participate in the Program, on the terms and conditions set forth in this Agreement; and 7. Grantee acknowledges that the source of funding for this Agreement are City of Farmington funds by the provided and approved for disbursement Authority as grants in accordance with the Authority’s powers under Minnesota Statutes, Chapter 469, and the Authority’s authorization of the Program pursuant to Resolution No. 2026-02 adopted by the Authority on April 13, 2026. NOW, THEREFORE, in consideration of the promises contained in this Agreement, the Authority and Grantee agree as follows: Page 68 of 89 2 226645v5 1. Grant Terms. A. Grant Amount. The Authority has approved Ten-Thousand and 0/100 Dollars ($10,000.00) in Program funds for the Project (the “Grant Funds”). The Grant Funds are a grant and not a loan. As such, the Grant Funds are a grant of funds and no portion of the Grant is to be repaid by Grantee to Authority unless mutually agreed to by the Authority and Grantee or an Event of Default (as defined in Section 8 of this Agreement) occurs. B. Matching Funds. As set forth in the Program guidelines, grantees are required to contribute funds equal to the amount of grant funds provided under the Program (“Matching Funds”). Regardless of the overall value or cost of a proposed project, the maximum grant amount shall not exceed $10,000. C. Disbursement of Grant Funds. Grant Funds with be disbursed based on the Estimated Project Costs, as such is defined in Section 2 of this Agreement, and according to the following processes, as applicable: i. For Projects Less than $10,000. (a) If the Project is estimated to cost less than $10,000, the Authority will disburse the Grant Funds in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the required Matching Funds. (b) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. ii. For Projects Over $10,000. (a) If the Project is estimated to cost more than $10,000, the Authority will disburse $5,000 of the Grant Funds (the “First Installment”) in a single lump sum upon execution of this Agreement, and after Grantee has provided all documentation and Project bid information as required by the Program application and Program guidelines, including, but not limited to, proof of financial readiness and ability to contribute the entire sum of the required Matching Funds. (b) After Grantee has spent the First Installment and the entire sum of the Matching Funds, Grantee may request the balance of the Grant Funds. The Authority will disburse the balance of the Grant Funds upon proof from Grantee that the First Installment and the entire sum of the Matching Funds have been spent on the Project, and that the First Installment has been spent only on Permitted Uses, as such is defined in this Section 1. (c) Upon completion of the Project, Grantee must close out the Grant pursuant to the Grant Closeout Process, as such is defined in Section 3 of this Agreement. Page 69 of 89 3 226645v5 D. Use of Grant Funds. Grant Funds may only be used for the Project as set forth in Grantee’s application and as approved by the Authority (the “Permitted Uses”). Such Permitted Uses are set forth in Exhibit A. 2. Project. A. Grantee agrees and acknowledges that the approved Project that was outlined in the Grantee’s original application is described as follows: i. Pu refrchase of rigerated display cases and commercial door coolers , glass freezers, hot food holding equipment and heated display cabinet as well as updates to the POS system. ii. Estimated Project Costs. Grantee has estimated that the total costs for completion of the Project is $21,579.17 (the “Estimated Project Costs”). B. Grantee is not allowed to make any changes, revisions, or alterations to the Project without the prior approval of the Authority. If Grantee wishes to modify the Project, Grantee must submit an updated Project description to the Authority’s Executive Director to be reviewed by the Authority. The Authority will approve or deny, in its sole discretion, the proposed revised Project description at the next earliest regular Authority Meeting. C. If applicable, Grantee agrees to apply for and receive all necessary permits and approvals from the City of Farmington and from any other governing authority with jurisdiction over the Property related to the construction of the Project prior to work beginning. D. Grantee agrees to complete the Project in accordance with all applicable federal, state, and local laws, rules, codes, and regulations, including but not limited to, the Farmington City Code, State Building Code, and Fire Code. E. Grantee is responsible for selecting the means, methods, and manner of performing the Agreement requirements and completing the Project. 3. Grant Term; Grant Closeout. The Project shall be completed in a timely manner, and all Grant Funds must be used within one (1) year of the initial disbursement of Grant Funds to Grantee. The Grant Term will expire upon Grantee’s completion of the following Grant Closeout process: A. Grantee must notify the Authority when the Project is complete. B. Grantee must submit a final report on the Project, which must include the following, which are, collectively, the “Final Report”: i. Receipts, invoices, and other relevant documentation of how the Grant Funds were used; ii. Documentation showing Grantee’s contribution of the required matching funds; Page 70 of 89 4 226645v5 iii. Description of the impact of the Grant Funds on Grantee’s business; and iv. Photos of the completed Project (the “Final Report”). C. The Grant Term may be extended one (1) time, with the length of the extension to be determined based on the circumstances related to the completion of the Project. If Grantee wishes to extend th Terme Grant to the a submit written extension request , Grantee must Authority’s Executive Director at least thirty (30) days prior to the termination of the Grant Term. Such extension request must describe the reason for the request and the circumstances that prevent Grantee from completing the Project prior to the end of the Grant Term. The Authority, in its sole discretion, will approve or deny the extension request at the next earliest regular meeting of the Authority. 4. Obligations of Grantee. In addition to all other Grantee obligations set forth in this Agreement, Grantee is also responsible for the following: A. must and execute Agreement, Grantee Concurrent execution of with the this provide to the Authority its personal guarantee for repayment of the Grant Funds in the form set forth in Exhibit B to this Agreement. B. the any involves Project Property, and the of owner the not is Grantee If fee alterations to real property or structures that are not owned by Grantee, prior to commencement of any work on Grantee must provide written consent from the owner in the form set forth in Exhibit C to this Agreement. 5. Liability and Indemnification. A. Neither the Authority nor the City of Farmington shall in any event be liable to the Grantee, nor to any of its employees, agents, contactors, guests, or invitees, for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee’s operations under this Agreement. B. Grantee shall indemnify, save, defend and hold harmless the Authority and the City of Farmington from any claims, liability, causes of action, damages, losses, and costs including attorney fees resulting directly or indirectly from any act or use of Grant Funds including the defect or claimed defect of any of the Project or any such manner arising from this Agreement. C. section This 5 the terminationshall survive , expiration cancellationor this of Agreement. 6. Notices. When written notice is required or permitted due to the Project, this Agreement and/or Program, it must be addressed and delivered by hand or by the United States Mail to the following addresses: If to Grantor: Farmington Economic Development Authority If to Grantee: Salaam Global Flavors Keneni Ababulgu Page 71 of 89 5 226645v5 Attn: Executive Director 430 Third Street Farmington, MN 55024 115 Elm Street, Suite J Farmington, MN 55024 7. Entire Agreement; Assignment; Modifications. A. the between the complete agreement Agreement This constitutes Authority and Grantee and supersedes any prior oral or written agreement(s) between the Authority and Grantee regarding the subject matter contained in this Agreement. There are no verbal agreements that change this Agreement. B. Grantee is not allowed to assign or transfer any rights or obligations under this Agreement without the prior written consent of the Authority. C. Any alterations, revisions, variations, modifications, amendments, or waivers of the provisions of the Agreement are valid only when they have been reduced to writing and signed by the authorized representatives of the Authority and Grantee. 8. Termination/Cancellation; Events of Default. A. Unless the Grant Term is extended as set forth in Section 3 of this Agreement, this Agreement will terminate upon Grantee’s submission of the Final Report as required by Section 3 of this Agreement. Only those terms identified in this Agreement as surviving termination or cancellation of this Agreement will continue after submission of the Final Report. B. if be funding cannot Agreement this immediately terminate Authority may The continued at a level sufficient to allow for the payment of the Grant Funds. Termination must be by written notice to Grantee. C. Prior to the disbursement of any Grant Funds, this Agreement may be cancelled by the Authority or Grantee at any time, with or without cause, upon thirty (30) days written notice to the other party. 9. Events of Default. A. Event of Default Defined. Any and all of the following events shall constitute an “Event of Default” under this Agreement: i. Grantee uses any portion of the Grant Funds for purposes other than specified in this Agreement. ii. Grantee fails to comply with any of the terms, conditions, requirements, representations, or provisions contained in its Program application, this Agreement, or any other Authority document. iii. Any of the information, documentation, or representations that Grantee supplied to Page 72 of 89 6 226645v5 Authority in its Application, this Agreement, or any other Authority document to induce Authority to make the Grant is determined to be false, untrue, or misleading in any material manner. B. Remedies. Upon the occurrence of an Event of Default, the Authority may immediately, without notice to Grantee, suspend its performance under this Agreement. After providing thirty (30) days written notice to Grantee of an Event of Default, but only if the alleged Event of Default has not been fully cured within said thirty (30) days by Grantee, the Authority may: i. Refrain from disbursing any further Grant Funds; ii. Demand that any amount of Grant Funds already disbursed to Grantee be immediately returned to the Authority, and upon such demand, Grantee shall immediately return such Grant Funds to the Authority; iii. Terminate this Agreement by written notice; iv. Prohibit Grantee from applying for or receiving any funding from the Micro Grant Program or any other financial assistance program offered by the Authority; and v. Pursue whatever action, including legal, equitable or administrative action, which may costs reasonable (including all desirable to or necessary appear collect attorneys’ fees) and any amounts due under this Agreement or to enforce the performance and observance of any obligation, agreement, or covenant hereof. C. No Remedy Exclusive. No remedy conferred by this Agreement upon or reserved to the Authority is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. A delay or omission to exercise any right or power accruing upon any Event of Default shall not impair any such right or power, and shall not be construed to be a waiver of such right or power, but any such right and power may be exercised from time to time and as often as may be deemed expedient by the Authority. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as provided in this Section 9. D. WaiverImplied by One Waiver No Additional . agreement any the event In contained in this Agreement should be breached by Grantee and the Authority waives enforcement of such a breach, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous, or subsequent breach under this Agreement. E. This Section 9 shall survive the termination, expiration, or cancellation of this Agreement. 10. Records Availability and Access; Audit. Page 73 of 89 7 226645v5 A. Pursuant to Minnesota Statutes §16C.05, subd. 5, Grantee agrees that the Authority, City of Farmington, the Minnesota State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt and transcribe any books, documents, papers, or records that are pertinent to the accounting practices and procedures of Grantee that specifically involve the transactions relating to this Agreement. Grantee agrees to maintain these records for a minimum of six (6) years from the termination of this Agreement. B. All data in the application and this Agreement is subject to and will be classified according to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. The Authority may use the Final Reports for Authority meetings, publicity regarding the Authority’s economic development efforts, and any other use per the Authority’s discretion. C. Grantee will be financially responsible (liable) for any audit exception that occurs due to its negligence or failure to comply with the terms of the Agreement. D. This Section 10 shall survive the termination, expiration, or cancellation of this Agreement. 11. Conflict of Interest. No elected official, officer, or employee of the Authority or the City of Farmington shall during his or her tenure or employment, and for one year thereafter, have any interest, direct or indirect, in this Agreement or the Grant Funds. 12. Miscellaneous. A. The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. Venue for all legal proceedings out of this Agreement, or its breach, must be in the appropriate state court within Dakota County, Minnesota. B. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. C. Grantee affirms that all information that has been submitted or will be submitted by the Grantee as part of the Micro Grant Application and verification process is true and correct. D. Grantee acknowledges that the Grant Funds may be subject to federal and state taxes, which shall be paid by Grantee. E. Grantee certifies that it is in compliance with Minnesota Statutes §176.181, subd. 2, pertaining to workers’ compensation insurance coverage. F. The Authority is allowed to promote the Project through informational pamphlets, press releases, research, reports, websites, signs, and similar public notices prepared by or for the Authority which may include photos and design elements. Page 74 of 89 8 226645v5 G. The Parties agree that the Grant is not a business subsidy as defined in Minnesota Statutes, Sections 116.993 to 116.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000. H. The Recitals at the beginning of this Agreement, and the Exhibits attached to this Agreement, of part incorporated into and made are each one and correct, true this are and Agreement. IN WITNESS WHEREOF, the Authority and Grantee have executed this Agreement to be effective as of the Effective Date first written above. [Remainder of page left blank intentionally. Signature page follows.] Page 75 of 89 9 226645v5 GRANTOR: FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: Jake Cordes, Chair By: Deanna Kuennen, Executive Director GRANTEE: NAME By: Keneni Ababulgu [printed name] [printed title] Page 76 of 89 10 226645v5 Exhibit A Permitted Uses As outlined in the applicant’s application, the purchase of refrigerated display cases, glass door commercial coolers and freezers, hot food holding equipment and heated display cabinet as well as updates to the POS system. Page 77 of 89 11 226645v5 Exhibit B Form of Personal Guarantee PERSONAL GUARANTY THIS PERSONAL GUARANTY (“Guaranty”) is made and entered into as of this ____ day of , 2026 (“Effective Date”) by and between Individual’s Name, whose address is Address, Farmington, Minnesota (“Guarantor”), and the City of Farmington Economic Development Authority, a public body, corporate and politic, and a political subdivision of the State 430 Third Street, Farmington, at business of Minnesota, having its principal of place Minnesota (the “Authority”). RECITALS A. The Authority has established a Micro Grant Program (“Program”) to support small businesses within the municipal boundaries of the City of Farmington, by providing financial support intended to enhance the footprint of Farmington businesses, and to strengthen small or emerging businesses for growth and expansion; and B. Simultaneously with the execution and delivery of this Guaranty, the Authority is providing Grant Funds in the amount of and 0/100 Dollars ($#,###.00) (the “Grant Funds”) to (“Grantee”) pursuant to that certain Micro Grant Program Agreement between the Authority and Grantee (the “Grant Agreement”); and C. The undesigned has agreed to personally guarantee the Grant Funds in the event that repayment of any or all Grant Funds must be repaid as a result of a default by Grantee under the Grant Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Guaranty and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Authority and Guarantor agree as follows: 1. Guaranty Agreement. On the terms and subject to the conditions set forth in this Guaranty, the Guarantor hereby, irrevocably and unconditionally, guarantees the full and timely repayment of all or part of the Grant Funds when demanded by the Authority. This Agreement shall remain fully enforceable regardless of any defenses that Guarantor may assert related to the Grant Funds, including, but not limited to, failure of consideration, statute of frauds, statute of limitations, and accord and satisfaction. The Obligations of the Guarantor set forth in this Agreement shall extend to all amendments, supplements, modifications, renewals, replacements or extensions of the Grant Agreement. 2. Representations and Warranties. Guarantor hereby represents and warrants that (i) the execution, delivery, and performance of this Agreement will not violate any law or any other material contract, agreement or understanding which is binding on the Guarantor; and (ii) Page 78 of 89 12 226645v5 this Guaranty is the valid and binding obligation of the Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer, and other similar laws relating to or affecting creditors’ rights generally from time-to- time in effect. 3. Default. As used in this Guaranty, the term “Event of Default” shall mean how that term is defined in Section 8 of the Grant Agreement. 4. Governing Law; Venue. This Guaranty and all transactions contemplated by this Guaranty shall be governed, construed, and enforced in accordance with the laws of the State of Minnesota. Any proceeding to enforce, interpret, challenge the validity of, or recover for the breach of any provision of, this Guaranty shall be filed in Dakota County District Court. The Authority shall and expenses, including costs all Guarantor entitled to recover from be the attorneys’ fees, litigation expenses and court costs, incurred in enforcing its rights under this Guaranty regardless of whether a lawsuit is commenced. 5. Successors and Assigns. This Guaranty shall be binding upon and shall inure to the benefit of the Authority and the Guarantor, their successors and assigns; provided, however, neither the Authority nor the Guarantor may assign its rights or obligations under this Guaranty without the prior written consent of the other party. 6. Amendment. No amendment of or waiver under this Guaranty or any rights of the Authority or the Guarantor shall be effective with respect to any party unless amended, waived or consented to in writing by such party. 7. Presentment, Demand, Notice. Guarantor waives presentment, demand for payment, notice of dishonor or nonpayment, and protest of any instrument evidencing the Grant Funds. The Authority shall not be required first to resort for repayment of the Grant Funds, or first to enforce, realize upon, or exhaust any collateral security for the Grant Funds, before enforcing this Guaranty. 8. Cumulative Liability. The liability of Guarantor under this Guaranty is in addition to and shall be cumulative with all other liabilities of the undersigned to the Authority as Guarantor or otherwise, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. [Remainder of page left blank intentionally. Signature page follows.] Page 79 of 89 13 226645v5 IN WITNESS WHEREOF, the Authority and Guarantor have executed this Agreement to be effective as of the Effective Date first written above. FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY By: [exhibit copy – not for execution] Jake Cordes, Chair By: [exhibit copy – not for execution] Deanna Kuennen, Executive Director GUARANTOR: NAME By: [exhibit copy – not for execution] [printed name] [printed title] Page 80 of 89 14 226645v5 Exhibit C Fee Owner Consent FEE OWNER CONSENT TO PROPERTY IMPROVEMENTS PURSUANT TO FARMINGTON EDA MICRO GRANT PROGRAM , a [state and business type/individual/other], is the fee owner of all or part of the Property defined in that certain Micro Grant Program Grant Agreement between the Farmington Economic Development Authority as “Grantor” and as “Grantee” (the “Agreement”). The Grantee is a tenant at the Property. The undersigned hereby affirms that I understand that Grantee, my tenant, proposes to use the Grant Funds to make certain improvements or modifications to the Property (the “Project”). I hereby consent to such action by the Grantee, and waive any objection to the same. I agree to indemnify and hold harmless the Grantor and the City of Farmington for any modifications made to the Property, and from any claims, liability, causes of action, damages, losses, and costs including attorneys’ fees resulting directly or indirectly from any act or use of funds provided to Grantee by Grantor through its Micro Grant Program, including the defect or claimed defect of any of the Project. Dated this day of , 20 . FEE OWNER: NAME By: [exhibit copy – not for execution] [printed name] [printed title] STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this day of , 20 , by [printed name], the [printed title] of , a [state and business type], on behalf of said entity. Notary Public Page 81 of 89 ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO To: Economic Development Authority From: Stephanie Aman, Economic Development Coordinator Department: EDA Subject: Downtown Social Update and Discussion Meeting: Economic Development Authority - Jun 15 2026 INTRODUCTION: The EDA has authorized funding in the amount of $6000 to support the Downtown Social event in 2026. One of the initial goals of Downtown Social was to find a way to allow alcoholic beverages to be purchased and consumed during the 4th Thursday evening gatherings. Staff has been working with the City Clerk to understand liquor licensing requirements to understand if and/or how this could be pursued if the city agreed. DISCUSSION: Downtown Social is a collaboration of brick-and-mortar businesses in downtown Farmington that formed organically last year and aim to increase foot traffic, support local merchants, and strengthen downtown vibrancy. The group is hosting monthly Downtown Social events on the fourth Thursday from May–September 2026, featuring live music, extended retail hours, family-friendly gathering spaces, and food/beverage options. As the event continues to evolve, the organizers are interested in exploring what would be required to allow alcoholic beverages to be purchased and consumed during the 4th Thursday evening gatherings. Staff has been working with the City Clerk to understand steps, requirements and conditions, as liquor is regulated through MN State Statues Chapter 340A. The City Clerk and the Assistant City Administrator will present a possible path forward - along with the stipulations that would accompany this opportunity. ACTION REQUESTED: No action required. This is topic is for discussion only. Page 82 of 89 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 - Jun 15 2026 INTRODUCTION: Attached please find a summary of 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 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: 06-2026 meeting Page 83 of 89 Reporting Period: June 2026 DIRECTOR’S REPORT – providing project highlights and a summary of economic development activity. Projects & Initiatives Farmington Technology Park - Data Center (Farmington Technology Park) | Farmington, MN Information about the project including the project timeline, actions, official documents (applications, staff reports, resolutions, and presentations) can be found on the webpage. As more information becomes available, information will be added and/or this page will be used to link to other sources. The most recent action associated with this project is the application to divide the Farmington Technology Park into two separate additions – Farmington Technology Park 1st Addition and Farmington Technology Park 2nd Addition. On April 20, 2026, the City Council approved the Final Plat and updated development contract for both additions. Tract has updated their own project website. The latest development updates can be found at this location: Updates - Farmington Technology Park 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. Page 84 of 89 Project Gamma – DID NOT SUBMIT – seeking existing building, minimum, 250,ooo SF in size for AI and robotics company. Project X – SUBMITTED building for consideration – German manufacturing facility that supports medical device and pharmaceutical packaging. Project X – DID NOT SUBMIT – seeking 400+ acres, single ownership, for $10B investment, heavy utility user project, with 5100 FTE projected. Project Green – SUBMITTED sites for consideration – distribution hub seeking industrial land for purchase. Site evaluation process is still underway, and all submitted sites are still under consideration. Additional inquiries about due diligence materials were fielded, answering questions and providing information that was available. Project SOL – SUBMITTED sites for consideration – manufacturing center of excellence seeking land for purchase. Project G – SUBMITTED site for consideration – international company seeking land/building for purchase for injection molding and assembly. Project Pentagon – SUBMITTED site for consideration – medical device manufacturer evaluating locations in the MSP metro area as part of a nationwide search for a new facility. • Developer Meetings Staff make a concerted effort to meet with developers and real estate brokers who have expressed interest in working in Farmington. Conversations are ongoing, circling back as opportunities present themselves 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 o CERRON Commercial Properties, LLC o G. M. / Acumen Business Solutions, LLC o Upland Real Estate Group o Cushing Terrell Page 85 of 89 o Remain RE / APPRO o CORE Real Estate Group – exploring small site multi-family o Acumen Business Solutions, LLC – connected with local property owner o T.G – discussed residential development o Remain RE – connected with local business owner o Onxy/Obsidian – discussed spec building and pad ready site o Acumen Business Solutions – discussed multi-use development site o CBRE – Wells Fargo land and Hwy 60 Follow up conversations were held with several developers that Staff have had conversations with on various development topics and ideas. Meetings are being scheduled for the summer. • 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, distribution, commercial/retail, quick-serve restaurants, daycare, and MF housing. We anticipate that projects that have been talked about for a while will move forward (more to come). Other • Micro Grant At the April EDA meeting, the 2026 Micro Grant program was approved. A total of $50,000 is available for this program, with matching grants available up to $10,000 for qualifying project/qualifying businesses. Staff have updated the online application and provided information about the program on the city’s website. Information can be found here: Incentives & Grants | Farmington, MN 4 completed applications have been received to date. • Grocery Initiative At its February 2025 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. • Ribbon Cuttings/Open House In 2026 Staff worked with the AV team to enhance the ribbon cutting celebrations by creating videos that talk more about businesses and their projects. These videos are housed on the City’s YouTube page. The videos Page 86 of 89 (shorts) will also be used to tell Farmington’s story and highlight the unique businesses in our community and the investments that are being made. City of Farmington MN - YouTube o Trinity – celebrated on February 5, 2026 o Mis Tortuguitas – celebrated on February 19, 2026 o Lucid Tatoo – celebrated on April 1, 2026 o Quick Stop Spot Ribbon Cutting – Tuesday, May 26 at 2pm • Downtown Social Staff have been actively working with the organizers of the Downtown Social, to support and promote the season-long event. Part of those efforts have included researching how other communities “permit” monthly/weekly community gatherings and understanding the city’s existing license and permits. This has led to the identification of possible efficiencies that will benefit this event but have a broader, positive community-wide impact as well. The first date of the Downtown Social was held Thursday, May 28th. • Partner Meetings Staff is continuing to prioritize connecting and leveraging our economic development partners – including the Minnesota Trade Office, DEED, Greater MSP, utility providers, and other organizations. Partner presentations will be scheduled throughout 2026, and Staff will continue to participate in regional activities that provide exposure and access. An example of this is Staff attended the Greater MSP Partnership Next26 event on March 3rd to learn about the plans for the region and to better understand Farmington’s place in the region. The first partner meeting for 2026 has been scheduled. These meetings 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. 2025 Partner Meetings: 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 2026 Partner Meetings: Dakota Electric – May 2026 GreaterMSP DEED Utility Partners – Xcel, Northern Natural Gas Others, TBD Page 87 of 89 • Downtown “Quick Stop Spot” 15 Minute Parking The City Council approved the parking plan and the 15-minute parking signs (10 total) will be installed during the week of May 18th. Staff planned a ribbon- cutting celebration for Tuesday, May 26 at 2pm as a fun way to draw attention to the new convenient parking options downtown. • MREE Staff plan to be more involved in this organization in 2026. More information to come. • MREJ – Summits/Conferences/Awards Staff tabled at the MREJ Apartment Summit in January. 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 tabled at the MREJ Land Development Summit in March and spoke on the “Municipal Collaboration in Minnesota: Making Public-Private Partnerships Work” panel. At this summit staff reconnected with a developer interested in talking about grocery, talked with a developer about affordable MF housing, and heard from numerous developers interested in finding land in Farmington for SF housing development. Staff tabled at the MREJ Women in Real Estate Summit in April and moderated the panel “Women in Economic Development.” At this summit staff connected/reconnected with several brokers who have done deals in Farmington, Staff tabled at the Retail and Restaurant Summit in April; several connections from Farmington were in attendance and staff were updated on projects. Several follow-up connections were made. MREJ Award Ceremony was held on May 7th. The city was a finalist in the following categories: ▪ City/County of the Year - WINNER ▪ Rambling River Center – Government Building of the Year ▪ Rye Apartments – MF of the Year, Suburban ▪ Rye Apartments – People’s Choice - WINNER Staff tabled at the SE Metro Summit in May, moderated the Multi-Family & Residential: Growth, Demand & Development Strategy panel and participated as a panelist on the Navigating Regional Planning & Development Processes. Staff attended the EDAM Summer Conference – held June 3-5. Staff also attended the DEED Metro Area Quarterly Meeting to learn about DEED’s small business services, St. Paul Port Authority’s recent industrial land study, and other metro topics. Page 88 of 89 • Other Speaking/Presentation Invitations & Commitments o Regional Market-Visit – Chicago Market. Farmington has been asked to participate and help plan a site selector market visit to the Chicago region. The initial planning meeting has taken place focusing on dates for the visit, site selectors and trade offices to target, messaging and value proposition. Planning will continue with the goal for Fall 2026. • Economic Development Website Staff have been implementing the Economic Development Website Revamp as presented at the February EDA meeting. Several portions have been updated and launched including the Business Support/incentives pages, Awards, Rankings, and Accolades (which is ever evolving), wording has been cleaned up across the pages to be consistent and inviting. • 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. A new, more visually attractive map asset has been produced, allowing staff to engage in broader conversations. More information to come. o EDA Authorized the acquisition of 512 3rd Street. ▪ Closing took place on May 15, 2026 ▪ Asbestos remediation and demolition contracts have been signed. o Staff are participating in conversations regarding rezoning of key parcels to support industrial development. ▪ Land on Pilot Knob – rezoned to Industrial (May 18, 2026) • Legislative Session Staff followed several economic development-related topics that were moving through the legislature. Page 89 of 89