City of Moorhead Economic Development Authority

Transcription

1 City of Moorhead Economic Development Authority Meeting Agenda June 27, 2017 at 11:45 AM 1st Floor, Council Chambers, Moorhead City Hall ITEM REMARKS 1. Call meeting to Order / Roll Call 2. Agenda Amendments 3. Approve Minutes A May 22, Citizens Addressing the Board 5. Commissioners' Reports 6. Director's Report 7. West Central Initiative Annual Report - McSparron Legislative Update - Hutchins Enterprise Zone Tax Credit Program 10. Preliminary EDA Budget and Tax Levy for Startup Moorhead Business Plan Competition 12. Motion to Move into Executive Session for the Purpose of Discussing Contract Negotiations for the Development Project Located on the SE Corner of 8th Street and Main Avenue 13. Information / Update A B GFMEDC Activity Report - May Building & Permit Valuation Report - May Upon request, accommodations for individuals with disabilities, language barriers, or other needs to allow participation in Economic Development Authority meetings will be provided. To arrange assistance, call the City Clerk s office at (voice) or 711 (TDD/TTY). Visit our website at

2 14. Adjourn Economic Development Authority -- June 27, 2017 Page 2 of 2

3 City of Moorhead Economic Development Authority Meeting Agenda May 22, 2017 at 11:45 AM 1st Floor, Council Chambers, Moorhead City Hall Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held in the 1st Floor, Council Chambers, Moorhead City Hall, on May 22, 2017, at 11:45 AM. Roll call of the members was made as follows: Board Member: Bob Buth Present Board Member: Bruce Bekkerus Present Board Member: Kathy Cochran Present Joined meeting at 11:50 a.m. 1st Ward Council Member: Mari Dailey Absent Board Member: Violet Deilke Present 4th Ward Council Member: Chuck Hendrickson Present Board Member: Charley Johnson Present Board Member: Wyatt Johnson Present Board Member: Pat Kovash Present Board Member: John Rogalla Present Board Member: Marsha Weber Present Also Present: Cindy Graffeo, EDA Executive Director Amy Thorpe, Economic Development Program Administrator Jill Wenger, Human Resources Director 1. Call meeting to Order / Roll Call 2. Agenda Amendments 3. Approve Minutes A April 24, 2017 Motion to Approve made by Violet Deilke and seconded by Pat Kovash Motion Passed: For: 9; Against: 0; Abstain: 0; Absent: 2 4. Citizens Addressing the Board Minutes: None 5. Commissioners' Reports Minutes: MBA/Kovash & Bekkerus Reported on recent MBA retreat, letter to City Council requesting them to revisit their recent vote for local control legislation, and the MBA water station for the Fargo Marathon which was held last weekend. MPS/Rogalla - Tower Art update for the Oakport water tower

4 Moorhead Economic Development Authority Minutes from May 22, 2017 Page 2 of 2 6. Director's Report Minutes: Graffeo introduced new EDA Ward 4 member, Wyatt Johnson, and new EDA intern, Amanda Palos. She also summarized May activities as found in packet materials. 7. Proposed Changes to Performance Review Process and Protocol - Jill Wenger, HR Director Minutes: Graffeo and Wenger provided background as found in packet materials. Motion to Approve made by Pat Kovash and seconded by Marsha Weber Approved Changes to Performance Review Process and Protocol as found in packet materials. Motion Passed: For: 10; Against: 0; Abstain: 0; Absent: 1 8. Proposed Change to June EDA Meeting Date Minutes: Chair Johnson directed staff to move the June EDA meeting to Tuesday, June 27, 2017, at 11:45 a.m. to allow members to participate in the MBA Golf Tournament at the Moorhead Country Club. 9. Information / Update A B GFMEDC Activity Report - April Building & Permit Valuation Report - April 10. Adjourn Minutes: Meeting adjourned at 12:03 p.m. APPROVED BY: ATTEST: Charley Johnson Chair Marsha Weber Secretary The proceedings of this meeting are digitally recorded and are available for public review. Respectfully submitted by: Amy Thorpe, Economic Development Program Administrator

5 June 27, 2017 Monthly Board Report Cindy Graffeo, Executive Director Greetings to the Board, June has been a very busy month with prospect, partner, and developer meetings. Several large projects continue to remain ongoing including the Center Ave reconstruction planning, MCCARA expansion, 8 th and Main negotiations, and the website development. As some of these projects begin to wrap up, a few more will be added to the mix for the remainder of 2017, including MCCARA s Shovel Ready Certification and the Business Plan competition. Shovel Ready Certification At a previous EDA meeting, Jim Garten from the GFMEDC pledged $3,500 to cover the application cost of getting MCCARA shovel-ready certified through MN DEED. Since then, I have connected with John Rhodes who is the contact that conducts the site-visit and coordinates the certification program. It appears that the City of Moorhead has the majority of information necessary for certification already. In July, we will begin to verify that through compiling information, putting it in the DEED requested format. John Rhodes has indicated another site visit would not be necessary, as he has visited Moorhead previously as a consultant. EDA Retreat In 2016, the EDA had a budgeting retreat to discuss priorities, initiatives, and budgeting for The Board has requested another retreat for similar planning be held in 2017, so I am looking into dates and locations for this fall. Internship Program Advertising for a Marketing and Programming Intern for the Fall Semester will start in July for a late August start date. Professional Development I will be in Minneapolis July attending the Workforce Development IEDC Training. This training meets an elective requirement for Certified Economic Developer (CEcD) Certification. MCCARA Expansion The planning process to expand MCCARA remains ongoing.

6 Website Development JB Systems has provided access to the test-site to begin testing navigation and to better identify content organization and creation. Out of Office I will be out of the office July 3-7 on PTO, and July attending the IEDC Conference in Minneapolis. EDA Articles The EDA section of The Extra Newspaper were as follows: RFP Peer Review Panel Thank-You Center Ave Public Meeting Since the Last Meeting: Business Retention & Expansion Tastee Freeze (5/25/2017) Mic s Office (5/26/2017) Moorhead Center Mall Visits Classics (5/24/2017) Merle Norman (5/24/2017) Developers and Landowners Roger Erickson (5/30/2017) Five Stone Development (5/31/2017, 6/9/2017, 6/21/2017) Brian Sweeney, Cohen-Esrey Development Group (6/2/2017) RDO (6/21/2017) Business Prospect Non-Profit Expansion Prospect A health related services (6/5/2017) Non-Profit Expansion Prospect B Specialty Acquisition (6/12/2017) Media Interviews WDAY, 8 th and Main (5/22/2017) Mike McFeely, 8 th and Main (5/23/2017) The Flag Radio, 8 th and Main (5/24/2017) Strategic Partnerships Clay County, New Americans Listening Session (5/23/2017) Fargo Convention Center Update (5/24/2017) Gen7 Initiative (5/30/2017) Center Ave Steering Committee (6/1/2017) GFMEDC (6/6/2017)

7 Moorhead Center Mall Management (6/12/2017) SBDC Business Plan Competition Coordination (6/14/2017) MSUM Business Plan Competition Coordination (6/19/2017) City Council Strategic Planning Meeting (6/19/2017) Community Outreach Chamber Eggs and Issues MN Legislative Wrap-Up (6/5/2017) MBA Let s Talk Breakfast (6/7/2017) Emerging Prairie One Million Cups (6/14/2017) Moorhead Youth Hockey (6/22/2017)

8 CITY OF MOORHEAD 2017 MOORHEAD LEGISLATIVE STRATEGIES LEGISLATIVE INITIATIVES: 1. Capital Bonding Request: City - Rail Grade Separation(s); 20/21 st Street $43M; 11 th Street $4M 2. Permanent and continuing Border City appropriation 3. Local discretion regarding application of the MN State Building Code for newly constructed one and two family dwellings and townhomes 4. 1 Ave N (Central Corridors) Redevelopment TIF District Extension of Five-Year Rule LEGISLATIVE TEAM LEGISLATORS Senator Kent Eken, District 4, MN Senate Building - Rm 2227, Phone Representative Ben Lien, District 4A, State Office Building Rm 241, Phone Representative Paul Marquart, District 4B, State Office Building Rm 261, Phone CONTRACT LOBBYISTS Flaherty & Hood Tim Flaherty Phone tpflaherty@flaherty-hood.com Bradley Peterson Phone bmpeterson@flaherty-hood.com Shane Zahrt Phone sazahrt@flaherty-hood.com Fredrikson & Byron Kevin Goodno Phone kgoodno@fredlaw.com Andy Pomroy Phone apomroy@fredlaw.com CITY LOBBYIST Scott Hutchins Phone scott.hutchins@cityofmoorhead.com PRE-SESSION WORK 11/14/2016 Post November general election meeting with Flaherty & Hood and Fredrikson & Byron in St. Paul to discuss 2017 session strategies 11/17/2016 CGMC Fall Conference in Alexandria, MN 2017 LEGISLATIVE SESSION CAPITAL BONDING REQUEST FOR RAIL GRADE SEPARATION Moorhead grade separated rail crossing - 20 th & 21 st Street House Bill - H.F. No. 157 (Authors: Lien; Marquart) o 1/11/2017 Introduction and first reading; referred to Transportation Finance City of Moorhead Final Update June 8,

9 Senate Bill S.F. No. 72 (Authors: Eken; Isaacson) o 1/11/2017 Introduction and first reading; referred to Capital Investment Senate Bill S.F. No. 210 (Authors: Senjem; Pappas; Ingebrigtsen; Dahms; Eken)-No companion House Bill o 1/19/2017 Introduction and first reading; Referred to Capital Investment MEETINGS 1/10/2017 Hutchins and Pomroy met with Sen. Senjem, Chair, Senate Capital Investment, and Rep. Urdahl, Chair, House Capital Investment, and Rep. Hausman, Ranking Member, House Capital Investment 1/10/2017 Hutchins and Pomroy met with Rep. Lien and Sen. Eken 4/28/2017 Speaker Daudt indicates he expects the House Bonding Bill will be introduced the week of May 1 Lobbying Materials Link to Materials BORDER CITIES PERMANENT ANNUAL APPROPRIATION Moorhead is requesting a permanent annual appropriation of $3M for Border Cities. Allocations do not cancel or expire, but remain available until used by the city. House Bill H.F. No. 671 (Authors: Kiel; Lien; Marquart; Backer; Thissen) o 1/30/2017 Introduction and first reading; referred to Taxes Senate Bill S.F. No. 498 (Authors: Johnson; Eken; Westrom) o 1/30/2017 Introduction and first reading; referred to Taxes MEETINGS 1/11/2017 Hutchins, Peterson, and Zahrt met with Sen. Johnson and Rep. Kiel 1/31/2017 Hutchins, Peterson, and Zahrt met with Joel Michael, House Research, to discuss Border City Enterprise Zone language 2/16/2017 Hutchins, Peterson, and Zahrt met with Joel Michael, House Research, to discuss Border City Enterprise Zone language. 2/16/2017 Hutchins, Peterson, and Zahrt met with Sen. Chamberlain, Chair, Senate Tax Committee 3/1/ Committee Hearing: Property Tax and Local Government Finance Division. Hutchins testified in support of H.F. 671 along with David Murphy, Administrator, East Grand Forks, 3/1/2017 Hutchins met with Rep. Lien, Rep. Marquart, and Sen. Eken 3/18/2017 House Property Tax Division and Local Government Finance report released. Includes $3 million one-time Border City appropriation. Report included in materials below. See line /24/2017 House Tax Committee beginning to mark-up the House Omnibus Tax Bill HF4. The House Omnibus Tax Bill will contain a Border City appropriation of $3 million for the upcoming biennium ($1.5 million for 2 years) but not a continuing appropriation. Representatives Kiel, Marquart, and Lien are in communications with House Tax Chair Davids. It appears the Chair is open to extending the annual appropriation for additional years during conference committee negotiations. Efforts continue to secure a hearing in Senate Taxes. 3/29/2017 Senate Tax Bill released and being marked-up. Awaiting action on Senate Floor; contains Moorhead TIF Extension but no Border City appropriation or language. 3/30/2017 House Tax Bill passed. Includes $3M Border City Appropriation ($1.5M in each year of the new biennium) with no continuing appropriation. Moorhead TIF extension also included. 4/3/2017 Senate Tax Bill passed. Includes Moorhead TIF extension but no Border City appropriation or language. City of Moorhead Final Update June 8,

10 4/18/2017 Rep. Marquart appointed to Tax Conference Committee. Lobbying Materials Link to Materials OTHER BORDER CITY RELATED MATERIAL AND INFORMATION Enhanced Border City Incentives: The City s primary legislative goal is to secure permanent funding for Border Cities. However, there is also interest to enhance current Border City legislation to allow tax reductions (funded through a continuing BC appropriation) in similar fashion to the North Dakota Renaissance Program. Staff and our lobbyists are meeting with Joel Michael, House Research discussing and reviewing the language needed to accomplish this. Staff has also done background work examining the ND/RZ program and is preparing a comparative analysis as to how expanded BC incentives would match up against ND incentives utilizing the 300 Broadway project as an example. o JM036 Draft Language o JM036 Summary of Draft Language o Searching for a Downtown Renaissance (includes 300 Broadway example) o Fargo RZ Application Process Flow Chart o ND RZ MN BC Incentives Comparison Spreadsheet o Border City Funding Application Study o Bordering North Dakota DRAFT Disparity Reduction Credit: The DRC is the singular most important program provided by means of the Border City platform of programs and incentives in that all Moorhead C/I property receives a significant reduction in property taxes by means of a state paid DRC which flows to taxing jurisdictions located in Border Cities. Materials are provided as follows: Governors budget recommendation for the DRC. Note this is not a periodic request to the legislature as are the Border City tax reduction credits but rather an open and standing appropriation which has been contained in governor s biennial budgets over nearly 20 years; chronological payments of DRC to Border Cities in Clay County. o MNDOR Budget Activity Narrative Disparity Reduction Credit o DRC County Auditor Report through 2016 o Comparative Analysis - Residential o Comparative Analysis Commercial Property o DRC Detail Report 2016 Assessment for Taxes Payable in 2017 BUILDING CODE CHANGE MSBC DEFINITION OF TOWNHOUSE The definition of a townhouse in the 2015 Minnesota State Building Code is more restrictive than the 2012 International Residential Code upon which it is based. This definition requires builders to install sprinkler systems in two-unit single family attached twin homes a requirement that has effectively ended twin home construction in Moorhead. Moorhead s current strategy is to work with the Builder s Association of Minnesota (BAM) to support their advocacy efforts to amend the definition of a townhouse to mean a single-family dwelling unit constructed in a group of three or more attached units. The City has prepared and provided BAM lobbyists materials which show the impact of this regulation on Moorhead s twin home market. In addition, Andy Pomroy, Fredrikson & Byron, is assisting BAM in advocating their bill and in negotiations with the Department of Labor & Industry. House Bill H.F. 792 (Authors: Theis; Lien; Marquart; O Neill; +14) o 2/2/2017 Introduction and first reading; referred to Commerce and Regulatory Reform o 3/29/2017 Amended and passed o 4/27/2017 House concurred in the Senate Amendments to HF 792 and re-passed the bill as amended by the Senate Bill sent to Governor for signature. When signed by the Governor (this is expected to happen) the Department of Labor and Industry will issue an order to stay the City of Moorhead Final Update June 8,

11 enforcement requirement for sprinklers in twin homes. Staff will prepare a news release and notification to our industry partners to go out immediately following the Governor s signature and DLI issuance of the stay. Senate Bill S.F. 578 (Authors: Draheim; Eken; Utke; Simonson; Senjem) o 2/2/2017 Introduction and first reading; referred to Jobs and Economic Growth Finance and Policy o 4/20/ Amended and passed 65-0 MEETINGS 1/10/2017 Hutchins and Pomroy met with Forrest Cyr, Building Association Minnesota (BAM) 3/23/2017 Rep. Garofalo Job Growth and Energy Affordability Omnibus Bill HF2209 contains language to exempt twin homes from sprinklers. BAM, Department of Labor and Industry (DOLI), FM Homebuilders Association, and City representative have been involved in ongoing discussions throughout the session 3/29/2017 House passed, 124-0, BAM s townhome bill which the City of Moorhead and FM Homebuilders support. The Senate is expected to concur with the House language and pass the bill either before break (if time allows) or soon after. It is anticipated the Governor will sign the bill and Department of Labor & Industry has indicated it will not enforce sprinkler requirements once the bill is signed. 3/30/2017 Amendment was added to the Senate Agriculture, Rural Development, and Housing Finance Committee Omnibus Bill S.F. 780 which would eliminate the installation of fire sprinklers in any new or existing single-family detached dwelling unit, two-family dwelling unit, townhome, or accessory structures. Lobbying Material Link to Materials 1 AVE N (CENTRAL CORRIDORS) REDEVELOPMENT TIF DISTRICT: 5-YEAR RULE EXTENSION Moorhead s 1 Ave N (Central Corridors) Redevelopment TIF District was certified July 12, Prior general legislation provided that tax increment districts certified after April 20, 2009 and before June 30, 2012, could extend the five-year period to eight years. This was done to accommodate a slow-down in economic development activity due to the great recession. Moorhead s district missed this certification deadline by 12 days. House Bill H.F. No (Author: Lien) o 3/13/2017 Introduction and first reading; referred to Taxes Senate Bill S.F. No (Author: Eken) o 3/13/2017 Introduction and first reading; referred to Taxes MEETINGS 3/18/2017 House Property Tax Division and Local Government Finance report released. Moorhead s TIF extension will be offered as an amendment to the Division Report. 3/21/2017 The Moorhead TIF provision was accepted in the House Property Tax Division Report 3/22/2017 Senate Tax Committee heard Moorhead s TIF extension bill and laid it over for possible inclusion in the Senate Tax Bill. 3/23/2017 House Omnibus Tax Bill HF4 includes Moorhead TIF provision Page 54 3/29/2017 Senate Tax Bill released. Contains Moorhead TIF Extension but no Border City appropriation or language. 3/30/2017 House Tax Bill passed. Includes Moorhead TIF Extension and Border City appropriation. City of Moorhead Final Update June 8,

12 Lobbying Materials Link to Materials RELATED LEGISLATIVE EVENTS 2/1/2017 CGMC Legislative Action Day Delegation traveled to St. Paul to meet with Rep. Lien and Rep. Marquart, Senator Eken. Delegation: Mayor Del Rae Williams, Sara Watson Curry (Council Member), Joel Paulsen (Council Member), Brenda Elmer (Council Member), Chris Volkers (City Manager), Scott Hutchins. Received briefing from City s lobbyist and had several legislative meetings. 3/23/2017 League of Minnesota Cities (LMC) Legislative Conference for Cities - Delegation: Mayor Del Rae Williams, Melissa Fabian (Council Member), Chris Volkers (City Manager), Scott Hutchins. Legislative meetings were held with Rep. Lien, Rep. Marquart, Rep. Kiel, Sen. Eken, and Sen. Johnson. Moorhead delegation also received a briefing from Contract Lobbyists. 4/10/2017 Moorhead Tim Flaherty and Bradley Peterson, CGMC, provided a presentation to the City Council on LGA 4/13/2017 Moorhead Legislative update meeting with Sen. Eken, Rep. Lien, Rep. Marquart, City Manager Volkers, and Mayor & City Council 5/11/2017 CGMC Lobby Day and Ice Cream Social Travel to St. Paul included Mayor Williams, Sara Watson Curry (Council Member), and Scott Hutchins. Hello Mayor and Council. Attached you will find materials distributed at yesterday s Lobby Day & Ice Cream Social event hosted by CGMC at the Capitol. Mayor Williams, CM Sara Watson Curry and me attended and had an opportunity to meet with Representative s Lien and Marquart. The Governor, Speaker Daudt and Majority Leader Gazelka continue their negotiations and will likely do so in a fishing boat at the Governor s Fishing Opener on Saturday. Significant issues remain to be resolved however there is time enough to do so, before the constitutional deadline for adjournment on May 22. Moorhead s interests are all wrapped up in the Bonding Bill and Tax Bill. If agreement is reached on these two bills you can be very confident they will contain funding for 20/21 st street and Border Cities. SH FINAL DAYS OF REGULAR SESSION S FROM HUTCHINS TO MAYOR & CITY COUNCIL 5/15/2017 5:52 PM The House Ways & Means Committee will meet tomorrow to take actions related to moving the bonding bill forward. The latest run shows the bill at $800M (up from $600M) which continues to include $42.262M for Moorhead s grade separation. 5/17/2017 5:45 PM The House, late today, failed to achieve the extraordinary majority necessary to pass the bonding bill. Representatives Lien and Marquart were among three Democrats who voted for the bill. It was speculated that the House might not have the votes needed to pass the bill today. Also, many believe it is likely that the bill will come back and be larger than the current $800M amount. 5/17/2017 8:15 PM You may find this Session Daily article on today's vote in the House on the bonding bill of interest. 5/19/2017 4:59 PM Majority Leader Gazelka and Speaker Daudt just concluded a news conference at the Capitol. They appeared upbeat, calm and maybe optimistic (!?) in delivering their message of continuing to work with the Governor, Commissioners and Committee Chairs to get bills passed that the Governor will sign and to do so by Monday at mid-night. Coverage of this news conference and a possible response from the Governor will continue in the media. Also, Almanac will have these legislative leaders and others on tonight s show. I wanted to pass along a couple of statements that I believe you ll find interesting. First, Speaker Daudt indicated that he and Majority Leader Gazelka met privately with the Governor last night at the Governor s residence. The three leaders have met twice since, again privately without staff or others present. Speaker Daudt responding to a question on bonding stated: it s on the table an absolute possibility leaning toward a probability very likely. Majority Leader Gazelka, in a response to a question regarding LGA, stated: let the Committee Chairs work with the Commissioners the Governor has been asking for more LGA. Having not heard from the Governor it is difficult and premature to speculate on how real this maybe. 5/20/2017 7:44 PM Outwardly a very slow day at least publically. Visited with Rep. Lien as the House and the Senate are coming back from an all day recess. Rumor is a bonding bill has been agreed to. No detail and only a rumor. Also, it will likely be one of the last bills on Monday. City of Moorhead Final Update June 8,

13 5/21/ :13 AM - Hearing rumblings of a bonding deal at $995M plus $40M cash. 5/22/ :43 PM - Tonight the Governor and legislative leadership announced significant progress on a global deal. The process moving forward is to adjourn the current session at midnight to February, 28, 2018 and immediately call a special session. While details are yet being worked out on various bills it was clear that in addition to the remaining budget bills, the legislature will also consider a Tax Bill and Bonding Bill. The special session is anticipated to wrap-up Wednesday morning. SPECIAL SESSION (TUESDAY 5/23/2017 AT 12:01 AM TO FRIDAY 5/26/2017 3:01 AM) S FROM HUTCHINS TO MAYOR & CITY COUNCIL 5/23/2017 8:39 PM A bit of news. The Tax Bill has been posted. It contains a $3M BC one-time appropriation and the Downtown TIF extension language. Moorhead's pro-rata share is about 70%. No word on the Bonding Bill. At the agreed upon amount of $990M Moorhead's grade separation should be included and at the full $42.262M. The Senate and House both came in at 3:00 pm and promptly recessed to the Call of the Chair and remain in recess at this time. 5/24/2017 8:54 AM The Bonding Bill spreadsheet was just posted. Moorhead's grade separation is in for the full $42.262M. The House passed the Tax Bill and is recessed until about 11:30am. The Senate is currently debating the Tax Bill. 5/24/2017 3:14 PM The Senate just passed the Tax Bill with the Moorhead provisions included. It is on to the Governor. As you are no doubt aware tensions between the Governor and Legislative Leadership have escalated from the time when they all met to announce a deal and path forward to end the session. 5/24/2017 4:55 PM - Two things. The Tax Bill may have to go back to the House to ratify some Super Bowl language put on by the Senate. This should not be a problem. Secondly, there is discussion to recess until after Memorial Day. Doing so requires some parliamentary maneuvers. POST SPECIAL SESSION S FROM HUTCHINS TO MAYOR & CITY COUNCIL 5/30/2017 The attached information clarifies the inter-phase between the Border City Disparity Reduction Credit and the elimination of the state education levy from the first $100,000 of C/I value in Border Cities. CV Removing the state education levy from first $100,000 of value with have on Moorhead s commercial property. It will have no impact, as the border city disparity reduction credit already reduces the effective tax rate (actual taxes paid by the owner) lower than the new reduced rate by removing the state education levy. State wide, other commercial properties not receiving the border city reduction will benefit but likely their gross effective tax rate will not be as low as Moorhead s net effective tax rate. 5/30/2017 5:40 PM - Governor Dayton will allow the Tax Bill to become law without his signature. Moorhead's provisions are secure. Thanks. 5/30/2017 6:53 PM - You may find this article of interest. Thanks. 5/31/2017 7:15 AM You have likely heard Governor Dayton reversed course and signed the Tax Bill. Yesterday, the Governor also line-item vetoed the appropriations necessary to fund the operations of the House and the Senate. The Morning Take includes several articles / quotes / snippets on yet this latest conflict between the Governor and legislative leadership. You might find it an interesting read. Thanks. City of Moorhead Final Update June 8,

14 FINAL REMARKS HUTCHINS TO MAYOR & CITY COUNCIL Thursday, June 08, :25 AM Final Legislative Update 2017 Session Hello Mayor and City Council. Please find attached the Final Report for the 2017 legislative session. Thanks to your efforts, those of our lobbyists at Fredrikson & Byron and Flaherty & Hood and several City staff the 2017 session was a very productive one for Moorhead. I would specifically like to recognize and thank Amy Thorpe for her efforts to format and keep current the Legislative Updates Dashboard you received throughout the session. The City achieved or made significant progress on all four of its legislative initiatives, none more important than receiving $42M in bond funds for the 20/21 st grade separation. In addition to bonding the City will receive additional one-time Border City credits totaling approximately $2M. Also, the City s request to extend the Central Corridors Tax Increment District was approved. Working with the Builders Association of Minnesota the mandate to install sprinkler systems in newly constructed one and two family dwellings and town homes was removed. The 2018 Legislative Session is scheduled to convene Tuesday, February 20, The legislative agenda will be formed over the upcoming months, with your input. While we made progress on Border Cities our efforts to secure a continuing appropriation as well as expanded and enhanced language as to how BC credits can be used was not included in this year s final legislation. Also, Moorhead s goal to achieve authority to exert local discretion over building codes remains a priority. The 2018 session is a traditional bonding session. The City will support Clay County in its efforts to achieve bond funding for the Clay County Solid Waste Transfer Facility during the 2018 session. The City will also consider next steps in advocating for the 11 th street grade separation now that 20/21 st street is funded. These are a few items as well as others yet to be identified which may become part of Moorhead s legislative agenda for the 2018 session. I have also discussed the parameters of a new two-year legislative services contract with the City s contract lobbyists. Have a good summer. City of Moorhead Final Update June 8,

15 To: Chair Johnson and Members of the Moorhead EDA From: Amy Thorpe, Economic Development Program Administrator Date: June 27, 2017 Memorandum RE: 2017 Citywide Business Credit Program Enterprise Zone Fund Moorhead s state-funded Border City Enterprise Zone Fund is used for a number of different economic development tools. The most prominent tool is the Citywide Business Credit which rebates a portion of the workers compensation expense paid by businesses. Moorhead s Enterprise Zone Fund also provides funding for employee credits for: Restaurants (full or limited service) Housing with health-related services Primary sector attraction or expansion Citywide Business Credit (Pay 2018) Program Year This program provides an annual credit based on their actual workers compensation expense to businesses that apply. In 2016, 131 businesses received $85,154 in workers compensation credits. Below is the breakdown of 2016 participants by credits received. CITYWIDE BUSINESS CREDIT 2016 Program Summary 5% Credit Program Cap $10,000 Businesses Credits Credit Range Number % Total $ % $10, $10, $5,000 9, $17, $1,000-4, $32, $ $16, $ $18, Totals $95, Other Employee Credits from Enterprise Zone Fund: Both businesses below received employee credits for Housing with Health Related Services Farmstead Care of Moorhead - $12,090 Lilac Homes Memory Care - $7, Legislative Session The City s primary goal for Border Cities was to secure a permanent annual appropriation of $3M. While we made significant progress toward this goal, a continuing annual appropriation was not included in the final bill. The good news is Moorhead will receive approximately $2M for the Border City Enterprise Zone Fund! This fund balance allows the program to be restored to a 20% credit level with a $25,000 cap. 1

16 Memorandum Recommendation for 2017 (Pay 2018) Citywide Business Credit Program In consideration of employee credits committed and the current fund balance (see attached), staff recommends restoring a 20% credit level of the actual workers compensation expense with a $25,0000 program cap. Based on 2016 participation, the program would expend approximately $450,000. Motion Recommend to City Council approval of a 20% credit of the actual workers compensation expense with a $25,000 program cap for the 2017 program year. 2

17 2017 PROGRAM SUMMARY ENTERPRISE ZONE EXPENDITURES CITYWIDE BUSINESSES: Prop. Tax Credits Job Credits Year No. of Applicants % $ % $ Total State - Paid Credits , , , , ,000 1,048, , ,000 1,166, , ,000 1,122, , , , /10 99, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,599 55, , , , , , , (Pay 2017) , , (Pay 2018) , ,000 * 20-Yr Average ,922 *Figures are estimated PROGRAM SUMMARY: Total Allocations: 1983, 1987, 1991, 1995, 1999, 2001, 2003, 2006, 2008, 2013, ,265, ** Total Tax Credits drawn through ,021, *** TOTAL CREDITS AVAILABLE IN 2017 (Pay 2018) 2,244, PROJECTED CREDITS TO BE DRAWN: Target Area Credits committed to be drawn in Sales Tax Credits committed to be drawn in Job Credits Committed / Pending / Reserve: Farmstead Care of Moorhead ( ) 37, Arbor Park Living Center ( ) 50, Lilac Homes ( ) 42, Enterprise Zone Tax Credit Program (2017 Tax Year / Pay 2018) 450,000 ESTIMATED BALANCE REMAINING: 2017 Tax Year (Pay 2018) Committed, Pending and Reserved Funds $1,663, * Figures are projected ** 2017 State Allocation $2,050, *** Includes 2008 SEED Capitol Investment Credit Allocation $1,000 Prepared 6/22/2017

18 Memorandum To: Chair Johnson and EDA Board Commissioners From: Cindy Graffeo, Executive Director Date: June 27, 2017 Re: 2018 EDA Preliminary Budget Background and Information Attached is a proposed draft of the 2018 Preliminary EDA budget and tax levy. The only significant proposed change included is an adjustment to the 2018 Wage and Benefits line item to account for the potential increases in the wage scale. There are three potential increases to this line item in After discussion with the City of Moorhead s HR and Accounting Directors, the draft budget amount in this line item is sufficient for all three adjustments, to the best of our current knowledge. The first potential increase would be a Cost of Living adjustment in January of Per contract, if a COL adjustment is made by the City of Moorhead, a corresponding increase is made for the EDA Director. The second potential increase would be a move to the next salary wage step, dependent upon a satisfactory performance review of the EDA Director in July of The City of Moorhead is currently conducting a Classification and Compensation study for their employees. Should adjustments be made to the City of Moorhead wage scale as a result of the study finding, the Moorhead EDA would have the option to adopt similar adjustments for the EDA Director. Minor adjustments were made to the Intern Wages and Contracted/Consulting Services line items to result in an even number. Financial Consideration The proposed EDA budget and tax levy would increase from $393,000 to $400,000. Action or Recommendation Approve the proposed Preliminary 2018 EDA Budget and Tax Levy as currently presented.

19 ECONOMIC DEVELOPMENT AUTHORITY Tax Levy Fund (239) Summary Preliminary 2018 Budget and Tax Levy DRAFT Maximum Tax Levy 1 428, , , ,728 Levy Rate ~Gross Market Value (Billions) Revenues Approved - Proposed Tax Levy 350, , , ,000 Cash Reserves (EDA Tax Levy Fund) Total Revenues 350, , , ,000 Expenditures Operating Expenses Wages & Benefits: Executive Director 101, , , ,000 Cell Phone Allowance Vehicle Allowance - 4,800 4,800 4,800 Intern Wages 10,400 11,000 Memberships/Dues/Subscriptions - 4,500 4,500 4,500 Greater MN Econ Dev Partnership 5,000 5,000 5,000 5,000 IT Support Services 7,000 7,000 7,000 Intern IT Station 4,400 4,400 Travel, Training, Conferences 7,500 12,000 12,000 12,000 Subtotal 114, , , ,500 Marketing Commercial/Industrial/Promotional 9,500 16,000 15,000 15,000 Community & Residential 75,000 66,250 66,250 66,250 Business Plan Competition 6,500 6,500 Community Projects 5,000 5,000 Outside Agencies GFMEDC 25,000 25,000 25,000 25,000 Moorhead Business Association (MBA) 5,000 5,000 10,000 10,000 West Central MN SBDC 1,000 1,000 1,000 1,000 West Central Initiative 15,000 15,000 15,000 15,000 Moorhead Downtown 15,000 15,000 Professional Services Legislative Advocacy 75,000 65,000 65,000 65,000 Contracted / Consulting Services 30,320 26,050 12,950 13,750 Subtotal 235, , , ,500 Grand Total 350, , , ,000 1 Estimated maximum levy permitted by statute (.0185% of estimated 2017 market value $2.906 billion) June 2017

20 Memorandum To: Chair Johnson and EDA Board From: Cindy Graffeo, Executive Director Date: 06/27/2017 Re: EDA Business Plan Competition Background and Information Startup Moorhead will be a business plan competition funded by the Moorhead Economic Development Authority, run in partnership with the Minnesota Small Business Development Center (MnSBDC) and MSUM. The program will award $6,500 in cash prizes to three entrepreneurs who write a quality business plan and will open their business in Moorhead. Participants will submit a completed business plan by December 1, The judges will meet for preliminary judging. The top three submissions will be identified, and those three entrepreneurs will be invited to give a presentation at the Awards Banquet. After the presentations, the judges will determine the winners and prizes will be awarded. Partnerships The MnSBDC will offer one-on-one coaching for those seeking business plan writing assistance. In addition, they will host three to four workshops with topics aimed at helping Startup Moorhead participants with their plans. MSUM faculty will serve as the independent judges panel, and the awards banquet will be hosted at MSUM. Timeline: August 15, 2017 Program Launch September 1- November 15 o Program marketing campaign o SBDC Workshops (dates to be determined by the SBDC) December 1, 2017 Submission deadline December 3, 2017 Preliminary judges meeting (Tentative) December 13 - Award Banquet at MSUM Financial Consideration The EDA Board created a line item in the 2017 budget for the creation of this program. Total prize money possibly awarded is $6,500. Up to $5,000 will be used out of the Marketing line item for promotion of the program. Up to $1,500 will be used out of the Conferences/Meetings line item for the awards banquet.

21 Action or Recommendation Requesting approval of the creation of the Startup Moorhead Business Plan competition and authorization of related expenses.

22 Business Plan Assistance If you need help with any part of your business plan, the Minnesota Small Business Development Center (MnSBDC) can provide one on one coaching at no cost to you. In addi on, the MnSBDC is offering the following workshops: Star ng Up a Business Workshop Detail Business Marke ng Workshop Detail Structuring Your Business Workshop Detail Product Analysis Workshop Detail Anyone who a ends a MnSBDC workshop or coaching can request a Cer ficate of Engagement to submit with their Startup Moorhead materials for program points. For more informa on contact the MnSBDC at: West Central MnSBDC Concordia College 901 8th Street South Moorhead, MN Phone: sbdc@cord.edu Program Rules The Moorhead EDA reserves the right to accept or reject any business plan. Par cipants retain all rights to their business plan and ideas at all mes. If business plans do not meet the evalua on criteria, as determined by the judges panel, prizes will not be awarded. Judges decisions are final. Applicants must be age 18 or older. Businesses must open prior to December 31, 2018 within Moorhead, MN, city limits or prize money is to be returned. Businesses must not already be in opera on within Moorhead City Limits at the me of submission. New product or service lines to exis ng Moorhead businesses will be considered on a case by case basis. Applicants with outstanding taxes payable to the City of Moorhead are not eligible to win prize money, unless the award covers the outstanding debt in full. The debt will be deducted from prize money, and any remaining funds will be issued to the winner. Submission deadline is 4:30 p.m. on the due date listed. Late submissions will not be accepted. SBDC Coaching and workshops are op onal. Only one coaching session or workshop is needed to request a Cer ficate of Engagement from the SBDC. Addi onal coaching or addi onal workshops do not result in addi onal program points. 500 Center Ave PO Box 779 Moorhead, MN Startup Moorhead A Business Plan Compe on in partnership with 2017

23 Startup Moorhead The Economic Development Authority is commi ed to crea ng programs that support Moorhead s entrepreneurial community, and is proud to announce the launch of Startup Moorhead! Startup Moorhead is a business plan compe on aimed at cul va ng growth in our business community by pu ng capital in the hands of our local entrepreneurs when it is needed most. This program is launched in partnership with MSUM and the SBDC. Grand Prize $5,000 cash award Runner Up $1,000 cash award Honorable Men on $500 cash award Evalua on An independent panel of MSUM faculty will evaluate business plan submissions based on the following scoring criteria: Execu ve Summary 5 points Business Descrip on 10 points Timeline 10 points Market Analysis 15 points Marke ng Plan 15 points Management Plan 15 points Financial Plan and Projec ons 20 points Resume of Owner 5 points SBDC Cer ficate of Engagement 5 points Detailed evalua on criteria is available at wwww.website.com/ext The top three submissions will be invited to present their business idea at the Startup Moorhead Banquet on DATE AT LOCATION, where the winner will be determined and prizes will be awarded. Eligibility and Entry Startup Moorhead is open to all businesses in any industry looking to start or relocate to Moorhead by December 31, A new product or service line to a current Moorhead business may be eligible, and will be considered on a case by case basis. Business Plans and program applica on should be submi ed to: Deadline Ques ons Moorhead EDA 500 Center Ave PO Box 779 Moorhead, MN Submission Deadline is December 1, For ques ons, please contact Cindy Graffeo, EDA Execu ve Director, at or by at cindy.graffeo@cityofmoorhead.com.

24 Startup Moorhead Program Application Submit this application form with your business plan to EDA Offices by 4:30 p.m. on December 1, Applicant Name(s) Business Name Primary Contact Current Address City State Zip Address Phone In 500 words or less please explain how your business will positively impact the Moorhead community. (Attach additional sheet if needed.) I/We the applicant(s) have read and understand the program rules on the program brochure. I/We understand that this business plan will not be disclosed to any person, firm or company, except as deemed necessary in order to evaluate, interview and judge for the Startup Moorhead Business Competition, unless faced with a legal obligation to do so. The submitted business plan will remain the intellectual property of the applicant(s) and all copies of the plan will be returned to the applicant upon request. I/We understand the decision of the judges will be final. Applicant Applicant Date Date

25 Startup Moorhead Evaluation Criteria Business Name: Points Notes Executive Explains the business concept and idea Summary Highlights the key areas of business plan /5 Business Description Describes how the company is different or innovative from what already exists in Moorhead Company mission statement and vision Describes business goals and objectives Proposed business structure Timeline Presents a feasible timeline for startup /10 Convinces reader that the business concept is sound and has a reasonable chance of success Market Expresses a clear understanding of target /15 Analysis audience, market trends for service/product, and existing competition Identifies sufficient, sustainable customer base Marketing Plan Management Plan Financial Plan Resume of Owner Workshop Attendance Advertising plan is realistic with its objectives and costs Is aware of the need to rely on more than foot traffic to gain sales Creates a promotional strategy for location awareness Clearly outlines the roles and responsibilities of both management and employees Presents reliable resources for legal, accounting and other business services /10 /15 /15 Describes in details what the Startup Moorhead prize money will be used for Accurately assesses expenses and shows the division of revenue /20 Explains what financial resources are in place for start-up and operation of the business Includes 3 years of financial projections Demonstrates sufficient training, experience, and/or knowledge /5 Certificate of engagement provided by the SBDC after one-on-one coaching or attendance of one or more training sessions Total Points /100 /5

26 Activity Report May 2017 Planning and Strategic Positioning date person, activity 5/3 Mark Vaux attended the Moorhead Business Association Meeting. 5/3 Jim Gartin met with Dave Anderson at Moorhead Public Service. 5/4 Mark Vaux participated in the Moorhead Small Business Day Tour. 5/11 John Machacek participated in the MSUM Paseka School of Business Advisory Council Meeting. 5/15 Tifanie Gelinske gave a community tour to a MState candidate. 5/16 GFMEDC hosted FM Welcome Party for area newcomers. 5/17 Mark Vaux attended the Moorhead Business Association Meeting. 5/17 Tifanie Gelinske attended the Cass-Clay Workforce meeting at NDSCS (Moorhead Public Schools and MState attended). 5/22 Mark Vaux attended the EDA meeting. 5/24 Mark Vaux attended the Moorhead Business Association Meeting. 5/1-5/31 Mark Vaux assisted two leads, one in manufacturing and the other in distribution.

27 CITY OF MOORHEAD BUILDING CODES 2017 BUILDING AND PERMIT VALUATION SUMMARY SHEET Includes Totals from Pages 2 & 3 PAGE Residential Remodel Commercial Remodel Garages Residential (page 2) Commercial (page 3) DEMO # VALUATION # VALUATION # VALUATION # VALUATION # VALUATION # JAN , , , , FEB , , , , MAR , , ,873, ,028, APR , ,499, , ,843, ,020, ,765, MAY , ,031, , ,618, ,977, ,349, JUN JUL AUG SEP OCT NOV DEC ,283, ,480, , ,334, ,022, ,180, ,038, ,365, , ,971, ,687, ,351, ,714, ,799, , ,435, ,753, ,132, JAN/DEMO: 1 single family home; FEB/DEMO: 1 single family home; MAY/DEMO: 1 commercial building; 1 commercial loading dock MOVE/ TOTAL PERMITS TOTAL VALUATION

28 CITY OF MOORHEAD BUILDING CODES 2017 BUILDING PERMIT VALUATION REPORT - RESIDENTIAL Single Family Detached Single Family (Attached) Two Family (Duplex) Three and Four Family Buildings /214 Five or More Family Buildings Hotels/Dorms, Frat, Board Rm TOTAL PERMIT PAGE 2 TOTAL VALUATION # VALUATION # VALUATION # (U) VALUATION # (U) VALUATION # (U) VALUATION # VALUATION JAN FEB MAR 10 2,873, ,873,000 APR 19 3,593, , ,843,000 MAY 14 2,618, ,618,500 JUN 0 0 JUL 0 0 AUG 0 0 SEP 0 0 OCT 0 0 NOV 0 0 DEC ,084, , ,334, ,138, , ,600, ,783, ,971, ,072, ,586, ,476, ,000, ,135,379 NOTES: UNITS CONSTRUCTED MOORHEAD OAKPORT YEAR SINGLE FAMILY ATTACHED/ DETACHED TWO, THREE, & FOUR UNITS FIVE OR MORE UNITS MOORHEAD TOTAL UNITS OAKPORT TOTAL UNITS 2017 YTD CY * * Oakport Tract 2 was annexed 2015 CY * 2014 CY CY CY CY CY CY CY CY to the City of Moorhead January 1, Oakport permit data for 2015 forward is reported in the appropriate citywide data categories.

29 CITY OF MOORHEAD BUILDING CODES 2017 BUILDING PERMIT VALUATION REPORT - NEW COMMERCIAL PAGE 3A JANUARY FEBRUARY MARCH APRIL MAY JUNE # VALUATION # VALUATION # VALUATION # VALUATION # VALUATION # VALUATION ,276, ,703, ,000, , , , MONTHLY TOTAL 1 25, ,000, ,977, YEAR TO DATE TOTALS: , , , ,025, ,002, ,546, ,546, ,399, ,476, ,687, ,100, ,175, ,175, ,753, APR/328: $29,500, Clay County Jail 318 = Amusement, Social, Recreational 324 = Office, Banks and Professional 319 = Churches and other religious 325 = Public Works and Utilities 320 = Industrial 326 = Schools and Other Educational 321 = Parking Garages 327 = Stores and Customer Services 322 = Service Stations and Repair Garages 328 = Other Nonresidential Buildings 323 = Hospitals and Institutional 329 = Structures other than buildings