HomeMy WebLinkAbout5.b. Annual Report
EXECUTIVE SUMMARY
Port Authority Meeting: April 21, 2020
AGENDA ITEM: Annual Report AGENDA SECTION:
New Business
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 5.b.
ATTACHMENTS: End of year Financials. APPROVED BY: LJM
RECOMMENDED ACTION: Information Item
SUMMARY
The annual Port Authority report highlights a list of projects, accomplishments, and progress made on
initiatives between April 2019 and April 2020. The project type is categorized by activity for ease of
review. As shown below, the last year was very active and a number of important projects were
accomplished. Staff appreciates the leadership and direction received from the Port Authority throughout
the past year.
New Development
Permit Activity: The City issued 4069 permits for new construction or renovation; a 10% increase over
2018 resulting in total construction value of $90,278,793.
APPRO Development: New spec industrial space is slated has begun construction this
summer. Appro Development started building the first structure, an 18,000 square foot industrial spec
facility. As tenants are lined up, construction work will continue on the additional seven spec facilities of
similar size.
Canada Circle: The City finalized the land-sale and development process on City-owned land at Canada
Circle. This project broke ground in summer of 2019 and a certificate of occupancy was approved in fall
2019. The building will serve as the new headquarters for CA Gear.
Carrousel Way Medical: Davis Construction submitted an application for approval of a 12,000 square foot
multi-tenant medical office building. The plans were approved by the Planning Commission in
February. The main tenant will be Lorenz Clinic of Family Psychiatry. Construction scheduled for spring
of 2020.
Car Condos: Construction on the first of three buildings will offer nearly 80 “luxury” private garage
condos in the Rosemount Business Park. A community clubhouse will have a kitchen, fireplace, deck and
restrooms. The timeline for construction will be updated post-COVID-19.
Communities 360: Communities 360 completed an expansion of their existing facility. The new space
opened in February and includes more office and meeting space.
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Frana Expansion: Frana Companies undertook a major expansion of their Rosemount facility last
summer.
The Morrison: The Morrison project represented a significant change to Downtown Rosemount. Staff
worked with Ron Clark Construction on the Downtown Redevelopment project, a $25 million infusion
of 124 units of market-rate housing and retail on a dilapidated and underutilized site. Construction is
anticipated to begin in May.
Multi-tenant Retail: A new multi-tenant space was constructed summer of 2019. Openings for Jersey
Mike’s and Sport Clips occurred in September. Construction has begun on the third tenant space,
Noodles, but a completion date is not known at this time.
Udder Tech: Udder Tech relocated from Lakeville to the Rosemount Business Park. They now have six
employees and a full warehouse. The facility in Rosemount handles shipping, sales and accounting.
The Wexford: Ron Clark began construction on a 49-unit affordable apartment complex on Chippendale.
Site Development
Throughout 2019 major steps were taken to market and attract development for larger industrial and
commercial sites in Rosemount.
Staff formed a strong partnership with Xcel Energy to certify sites in a Shovel Ready program. The
following three sites were enrolled into their program:
• 160 acres controlled by the OPUS Group adjacent to County Road 42. This site would be
ideal for a large industrial user.
• 300 Acres in UMore Park adjacent to County Road 42 and less than one mile from the
Highway 52 interchange. This site is also suited for larger industrial users.
• 145 acres in the Rosemont Business Park of which 52 acres is designated DEED Shovel
Ready. This site is suited for industrial, distribution, or office uses.
Project Tundra: Work continues on Project Tundra, with multiple site visits and meetings with
development team. The City is also pursuing innovative effluent reuse opportunity with Met Council and
partners to support the recruitment of this user. The Mayor and staff worked with local legislators to
obtain financing of an engineering study for the effluent reuse project.
Akron Avenue: The intersection of Akron Avenue and County Road 42 has approximately 50 acres of
land available for new commercial development. Part of this site will be allocated for the new
Indoor Recreation Center. Staff has been aggressively marketing the Akron Corridor to commercial
developers and retail tenants. The addition of the Rec Center, and expanded residential base in the area,
will continue to increase the appeal to commercial developers.
Warren’s property: Warren Israelson is compiling his application to move forward with phase one of his
mixed-use concept, beginning with residential development. Staff has been working with Mr. Israelson to
develop the concept and aid in finding partners to develop the hotel portion of the site. Staff connected
with several hotel development and finance groups regarding the future development of this site.
New Business Openings:
CA Gear
Domino’s
Fusion Asian Food
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Heather Ann Photography
Jersey Mike’s
The Meeting Pointe
Noodles
Park Dental
Pellicci’s Hardware Store
Sport Clips
Udder Tech
Work Force and Business Assistance:
Staff restarted Business Retention and Expansion (BRE) business visits in 2019. Staff conducted visits
throughout fall and winter 2019 with large and small business in Rosemount. Notable business visits
included: Frana Companies, Sweet Harvest, Proto Labs, and Akona. Staff collected data from each visit
including growth plans, number of employees, and thoughts on the local business climate. Companies
expressed they were pleased with the local business climate and City operations in Rosemount. Challenges
included hiring and workforce issues, namely shortages of qualified employees and affordable housing in
Dakota County.
Staff joined the Dakota Scott County Workforce Development Business Services Committee. This board
meets monthly and focuses on hiring and training in the county. Through the Committee staff was able to
link Rosemount area employers to job seekers through both the Career Center and hiring events.
Staff expanded work with Dakota County Technical College, especially in the realm of
workforce development. Staff worked with DCTC to help connect local employers and students on
campus. Staff is also working with DCTC and the Workforce Development Board on a
(rescheduled) hiring and workforce symposium.
TIF and Grants
An element of the Downtown Morrison redevelopment project was the establishment of a new TIF
district. The costs of brownfield redevelopment are higher than traditional greenfield development, so staff
worked with City financial consultants to establish a new TIF district for the purpose of offsetting
redevelopment costs. The KenRose TIF district, which was approved in February 2020.
Staff applied for three grants associated with the Morrison redevelopment. The City was awarded $520,000
from the Minnesota Department of Employment and Economic Development for demolition and
infrastructure work. Two grants, an Environmental Legacy Fund (ELF) grant and a Redevelopment
Incentive Grant (RIG), are currently submitted and under review though Dakota County.
Marketing and Cold Calls
Staff expanded marketing and cold calls efforts in the last year. The addition of the Economic
Development Specialist allowed for more capacity to increase networking and cold calling to developers
and potential commercial users. Staff complied lists of developers and businesses by industry category and
devoted significant time reaching out to their corporate contacts. Staff also attended a number of industry
events such as the MNCAR Fall Expo, Minneapolis Real Estate Journal summits, and the FamTour with
the MN Marketing Partnership in Chicago.
Between networking events and cold calls, staff was able to transmit Rosemount specific
marketing materials, site information, market studies and other general development information to a wide
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array of developers and brokers. Based on feedback and meetings, Rosemount has favorable demographics
and growth patterns for many of the desired brands and caliber of development the Council envisions.
Developers would like to see continued housing growth and rooftops, particularly as it relates to new
commercial development near Akon and the eastern portions of Rosemount. Additionally, many retail
stores are interested in newer retail multi-tenant spaces. Hospitality and restaurant users highlighted a need
for more end cap space with room for patios.
Staff is also working on a standalone economic development website. This would serve as a one stop shop
for community and demographic information as well as available site and development process
information. The website is not constrained by the configuration of the current city website parameters
and incorporates more of the Esri information. Staff also launched the Rosemount Business Bulletin, a
regular publication highlighting current development and business activity in Rosemount. This publication
has a distribution list of over 400 and includes local businesses as well as Twin Cities developers and
brokers. Looking forward to fall, staff is working on finding development summits that would include
speaking spots and a booth presence to emphasize development in Rosemount.
COVID-19 Response
As the COVID-19 pandemic began in late February staff began to prepare resources for residents and
businesses. A major project was the creation of the COVID-19 Resources website for Rosemount. This
website contains information for residents and businesses as they navigate the crisis. An ArcGIS map with
Geotagged locations is available for updated hours and services for Rosemount businesses. Business
resources such as SBA grant information, Emergency Loan information, and changes to Sales
and Use tax collection are all compiled in a single location. Staff has been engaging with the State, County,
and Dakota County Regional Chamber on a near daily basis as new information and programs are
unveiled. This information is used as part regular email blast to the City’s business distribution lists to keep
businesses aware of recent changes. Staff has fielded calls from local businesses regarding a number of
COVID related issues, such as information on DEED’s shared work program, unemployment benefits for
independent contractors, and questions on the Critical Business exemption in the Stay at Home Executive
Order. Staff has moved forward with ideas to support local establishments in light of the Stay at Home
Order, such as Rosemount Takeout BINGO. Staff has also explored establishing a revolving loan fund to
help with COVID-19 recovery efforts for Rosemount businesses and future business expansion and
retention.
4-15-2020 03:47 PM CITY OF ROSEMOUNT PAGE: 1
REVENUE & EXPENSE REPORT - UNAUDITED
AS OF: DECEMBER 31ST, 2019
201-PORT AUTHORITY FUND
CURRENT CURRENT YEAR TO DATE BUDGET % OF
REVENUES BUDGET PERIOD ACTUAL BALANCE BUDGET
________________________________________________________________________________________________________________
TAXES
201-31010.00 CURRENT AD VALOREM TAXES 105,000.00 0.00 105,000.00 0.00 100.00
TOTAL TAXES 105,000.00 0.00 105,000.00 0.00 100.00
LICENSES & PERMITS
201-32280.00 FIBER LICENSE FEES 1,200.00 0.00 1,200.00 0.00 100.00
TOTAL LICENSES & PERMITS 1,200.00 0.00 1,200.00 0.00 100.00
GRANTS & AIDS _____________ _____________ _____________ _____________ _______
CHARGES FOR SERVICES
201-34109.00 OTHER GEN'L GOVT CHGS FOR SERV 8,000.00 0.00 7,225.00 775.00 90.31
TOTAL CHARGES FOR SERVICES 8,000.00 0.00 7,225.00 775.00 90.31
SPECIAL ASSESSMENTS _____________ _____________ _____________ _____________ _______
MISCELLANEOUS REVENUES
201-36210.00 INTEREST EARNINGS 100.00 0.00 457.15 ( 357.15) 457.15
201-36215.00 INTEREST EARNINGS 100.00 0.00 2,231.38 ( 2,131.38)2,231.38
TOTAL MISCELLANEOUS REVENUES 200.00 0.00 2,688.53 ( 2,488.53)1,344.27
________________________________________________________________________________________________________________
TOTAL REVENUES 114,400.00 0.00 116,113.53 ( 1,713.53) 101.50
============= ============= ============= ============= =======
4-15-2020 03:47 PM CITY OF ROSEMOUNT PAGE: 2
REVENUE & EXPENSE REPORT - UNAUDITED
AS OF: DECEMBER 31ST, 2019
201-PORT AUTHORITY FUND
PORT AUTHORITY
CURRENT CURRENT YEAR TO DATE BUDGET % OF
EXPENDITURES BUDGET PERIOD ACTUAL BALANCE BUDGET
________________________________________________________________________________________________________________
PORT AUTH. OPERATING BDG
========================
PERSONAL SERVICES ___________________________________________________________________
SUPPLIES
201-46300-01-219.00 OTHER OPERATING SUPPLIES 8,000.00 0.00 6,923.28 1,076.72 86.54
TOTAL SUPPLIES 8,000.00 0.00 6,923.28 1,076.72 86.54
OTHER SERVICES & CHARGES
201-46300-01-303.00 ENGINEERING FEES 3,000.00 0.00 332.00 2,668.00 11.07
201-46300-01-304.00 LEGAL FEES 4,000.00 0.00 3,468.00 532.00 86.70
201-46300-01-317.00 GEN'L FUND ADMIN FEES 6,000.00 0.00 6,000.00 0.00 100.00
201-46300-01-319.01 PROJECT MANAGEMENT CONSUL 2,000.00 0.00 0.00 2,000.00 0.00
201-46300-01-319.02 MARKETING 10,000.00 0.00 11,067.50 ( 1,067.50) 110.68
201-46300-01-319.05 OTHER CONSULTANTS 2,000.00 0.00 1,750.00 250.00 87.50
201-46300-01-319.07 RETAIL STRATEGIES 45,000.00 0.00 45,000.00 0.00 100.00
201-46300-01-319.08 OPEN TO BUSINESS (OTB) 5,500.00 0.00 0.00 5,500.00 0.00
OTHER PROFESSIONAL SERV 64,500.00 0.00 57,817.50 6,682.50 89.64
201-46300-01-331.00 TRAVEL EXPENSE 0.00 0.00 292.60 ( 292.60) 0.00
201-46300-01-349.00 OTHER ADVERTISING 7,000.00 0.00 9,077.04 ( 2,077.04) 129.67
201-46300-01-359.00 OTHER PRINTING & BINDING 900.00 0.00 2.14 897.86 0.24
201-46300-01-365.00 WORKMEN'S COMP INSURANCE 700.00 129.21 140.17 559.83 20.02
201-46300-01-369.00 OTHER INSURANCE 600.00 0.00 555.27 44.73 92.55
201-46300-01-381.00 ELECTRIC UTILITIES 400.00 0.00 171.24 228.76 42.81
201-46300-01-389.00 OTHER UTILITY SERVICES 2,000.00 0.00 0.00 2,000.00 0.00
TOTAL OTHER SERVICES & CHARGES 89,100.00 129.21 77,855.96 11,244.04 87.38
OTHER SERV & CHGS (CONT)
201-46300-01-403.00 CONTRACTED R & M-OTHER IM 2,000.00 0.00 0.00 2,000.00 0.00
201-46300-01-433.00 DUES & SUBSCRIPTIONS 0.00 0.00 267.50 ( 267.50) 0.00
201-46300-01-433.01 PROF ORGANIZATIONS/JOURNA 2,000.00 0.00 1,949.00 51.00 97.45
DUES & SUBSCRIPTIONS 2,000.00 0.00 2,216.50 ( 216.50) 110.83
201-46300-01-437.00 CONFERENCES & SEMINARS 5,000.00 0.00 3,300.37 1,699.63 66.01
201-46300-01-439.00 OTHER MISCELLANEOUS CHARG 500.00 0.00 3,689.00 ( 3,189.00) 737.80
TOTAL OTHER SERV & CHGS (CONT) 9,500.00 0.00 9,205.87 294.13 96.90
CAPITAL OUTLAY ACCOUNTS ___________________________________________________________________
________________________________________________________________________________________________________________
TOTAL PORT AUTH. OPERATING BDG 106,600.00 129.21 93,985.11 12,614.89 88.17
4-15-2020 03:47 PM CITY OF ROSEMOUNT PAGE: 3
REVENUE & EXPENSE REPORT - UNAUDITED
AS OF: DECEMBER 31ST, 2019
201-PORT AUTHORITY FUND
PORT AUTHORITY
CURRENT CURRENT YEAR TO DATE BUDGET % OF
EXPENDITURES BUDGET PERIOD ACTUAL BALANCE BUDGET
________________________________________________________________________________________________________________
PORT AUTH. BOARD MEMBERS
========================
PERSONAL SERVICES
201-46300-99-103.00 PART-TIME EMPLOYEES - REG 4,000.00 0.00 2,415.00 1,585.00 60.38
201-46300-99-122.00 FICA CONTRIBUTIONS 0.00 0.00 125.86 ( 125.86) 0.00
201-46300-99-125.00 MEDICARE CONTRIBUTIONS 0.00 0.00 34.64 ( 34.64) 0.00
TOTAL PERSONAL SERVICES 4,000.00 0.00 2,575.50 1,424.50 64.39
________________________________________________________________________________________________________________
TOTAL PORT AUTH. BOARD MEMBERS 4,000.00 0.00 2,575.50 1,424.50 64.39
________________________________________________________________________________________________________________
TOTAL PORT AUTHORITY 110,600.00 129.21 96,560.61 14,039.39 87.31
________________________________________________________________________________________________________________
TOTAL EXPENDITURES 110,600.00 129.21 96,560.61 14,039.39 87.31
________________________________________________________________________________________________________________
REVENUES OVER/(UNDER) EXPENDITURES 3,800.00 ( 129.21) 19,552.92 ( 15,752.92) 514.55
============= ============= ============= ============= =======
OTHER FINANCING SOURCES (USES)
OTHER FINANCING SOURCES
201-39101.00 SALES OF GENERAL FIXED ASSETS 0.00 0.00 268,114.13 ( 268,114.13) 0.00
TOTAL OTHER FINANCING SOURCES 0.00 0.00 268,114.13 ( 268,114.13) 0.00
OTHER FINANCING (USES) _____________ _____________ _____________ _____________ _______
________________________________________________________________________________________________________________
REVENUE & OTHER SOURCES OVER/
(UNDER) EXPENDITURES & OTHER (USES) 3,800.00 ( 129.21) 287,667.05 ( 283,867.05)7,570.19
*** END OF REPORT ***
4-15-2020 03:47 PM CITY OF ROSEMOUNT PAGE: 1
REVENUE & EXPENSE REPORT - UNAUDITED
AS OF: DECEMBER 31ST, 2019
242-TIF DOWNTOWN-BROCKWAY
CURRENT CURRENT YEAR TO DATE BUDGET % OF
REVENUES BUDGET PERIOD ACTUAL BALANCE BUDGET
________________________________________________________________________________________________________________
TAXES
242-31050.00 TAX INCREMENTS 850,000.00 454.67 865,475.55 ( 15,475.55) 101.82
TOTAL TAXES 850,000.00 454.67 865,475.55 ( 15,475.55) 101.82
GRANTS & AIDS _____________ _____________ _____________ _____________ _______
CHARGES FOR SERVICES _____________ _____________ _____________ _____________ _______
MISCELLANEOUS REVENUES
242-36210.00 INTEREST EARNINGS-INVESTMENTS 1,000.00 0.00 21,092.35 ( 20,092.35)2,109.24
242-36214.00 NET CHANGE IN FV-INVESTMENTS 0.00 0.00 ( 5,601.36) 5,601.36 0.00
242-36215.00 INTEREST EARNINGS 0.00 0.00 2,148.74 ( 2,148.74) 0.00
TOTAL MISCELLANEOUS REVENUES 1,000.00 0.00 17,639.73 ( 16,639.73)1,763.97
________________________________________________________________________________________________________________
TOTAL REVENUES 851,000.00 454.67 883,115.28 ( 32,115.28) 103.77
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4-15-2020 03:47 PM CITY OF ROSEMOUNT PAGE: 2
REVENUE & EXPENSE REPORT - UNAUDITED
AS OF: DECEMBER 31ST, 2019
242-TIF DOWNTOWN-BROCKWAY
TIF DOWNTOWN-BROCKWAY
CURRENT CURRENT YEAR TO DATE BUDGET % OF
EXPENDITURES BUDGET PERIOD ACTUAL BALANCE BUDGET
________________________________________________________________________________________________________________
TIF DOWNTOWN-BROCKWAY
=====================
SUPPLIES ___________________________________________________________________
OTHER SERVICES & CHARGES
242-49042-01-319.00 OTHER PROFESSIONAL SERVIC 15,000.00 0.00 19,982.75 ( 4,982.75) 133.22
TOTAL OTHER SERVICES & CHARGES 15,000.00 0.00 19,982.75 ( 4,982.75) 133.22
OTHER SERV & CHGS (CONT) ___________________________________________________________________
CAPITAL OUTLAY ACCOUNTS ___________________________________________________________________
DEBT SERVICE ACCOUNTS
242-49042-01-601.00 PRINCIPAL ON WATERFORD NO 80,000.00 0.00 81,459.93 ( 1,459.93) 101.82
242-49042-01-611.00 INTEREST ON WATERFORD NOT 68,000.00 0.00 63,673.07 4,326.93 93.64
TOTAL DEBT SERVICE ACCOUNTS 148,000.00 0.00 145,133.00 2,867.00 98.06
________________________________________________________________________________________________________________
TOTAL TIF DOWNTOWN-BROCKWAY 163,000.00 0.00 165,115.75 ( 2,115.75) 101.30
________________________________________________________________________________________________________________
TOTAL TIF DOWNTOWN-BROCKWAY 163,000.00 0.00 165,115.75 ( 2,115.75) 101.30
________________________________________________________________________________________________________________
TOTAL EXPENDITURES 163,000.00 0.00 165,115.75 ( 2,115.75) 101.30
________________________________________________________________________________________________________________
REVENUES OVER/(UNDER) EXPENDITURES 688,000.00 454.67 717,999.53 ( 29,999.53) 104.36
============= ============= ============= ============= =======
OTHER FINANCING SOURCES (USES)
OTHER FINANCING SOURCES _____________ _____________ _____________ _____________ _______
OTHER FINANCING (USES)
242-49042-01-710.00 TRANSFERS 600,000.00 0.00 600,000.00 0.00 100.00
TOTAL OTHER FINANCING (USES) 600,000.00 0.00 600,000.00 0.00 100.00
________________________________________________________________________________________________________________
REVENUE & OTHER SOURCES OVER/
(UNDER) EXPENDITURES & OTHER (USES) 88,000.00 454.67 117,999.53 ( 29,999.53) 134.09
*** END OF REPORT ***