HomeMy WebLinkAbout08-23-2021 EDACITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, August 23, 2021
6:30 p.m.
1. CALL TO ORDER
2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Hull,
Commissioner Meehlhause, Commissioner Bergeron
3. APPROVAL OF AGENDA
4. CONSENT AGENDA
A. Approval of Minutes: June 28, 2021
5. PUBLIC COMMENT
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full
name and address for the minutes. Also, please limit your comments to three minutes.
6. EDA BUSINESS
A, 21-EDA-345, Establishing the New Business Improvement Forgivable Loan Program
7. REPORTS
A. None
8. NEXT EDA MEETING: September 13 at 6:30 p.m.
9. ADJOURNMENT
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PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
June 28, 2021 6
Mounds View City Hall 7
2401 Mounds View Boulevard, Mounds View, MN 55112 8
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1. CALL MEETING TO ORDER 11
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President Mueller called the meeting to order at 6:31 p.m. Due to the COVID-19 pandemic this 13
meeting was held virtually. 14
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2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Bergeron 16
Commissioner Hull, Commissioner Meehlhause, and Assistant City Administrator 17
Beeman. 18
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NOT PRESENT: None. 20
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3. APPROVAL OF AGENDA 22
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MOTION/SECOND: Bergeron/Hull. To Approve the June 28, 2021, Agenda as presented. 24
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Ayes – 5 Nays – 0 Motion carried. 26
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4. CONSENT AGENDA 28
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A. June 14, 2021, EDA Minutes. 30
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MOTION/SECOND: Meehlhause/Bergeron. To Approve the Consent Agenda as presented. 32
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Ayes – 5 Nays – 0 Motion carried. 34
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5. PUBLIC COMMENT 36
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None. 38
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6. EDA BUSINESS 40
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A. Soderman Property Discussion. 42
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Assistant City Administrator Beeman stated staff was approached by Dustin Soderman to 44
construct a 4-plex at 2510 Arden Avenue. He indicated the project was determined to not be 45
Mounds View EDA June 28, 2021
Regular Meeting Page 2
feasible and Mr. Soderman than requested the City consider purchasing this property. He 1
discussed the size of the lot which was just under one acre. He questioned what the EDA’s 2
interest would be in purchasing this lot for future redevelopment. 3
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President Mueller explained the home on this lot was not habitable. 5
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Commissioner Meehlhause reported this property was previously discussed by the EDA. He 7
explained he supported the EDA purchasing this lot for future redevelopment because the home 8
was not habitable. 9
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Commissioner Hull, Commissioner Bergeron and Commissioner Cermak concurred. 11
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7. REPORTS 13
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A. EDA/Simon’s Lot 15
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Assistant City Administrator Beeman stated a local developer was interested in purchasing the 17
EDA/Simon’s lot to construct 22 units of residential units with ground level office. He reported 18
staff was looking at the feasibility of this project with the developer. 19
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B. Residential In-fill Redevelopment Update 21
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Assistant City Administrator Beeman explained staff was investigating potential residential in-23
fill redevelopment projects along Long Lake Road and Woodlawn Drive. He reported letters 24
were sent to property owners and staff heard back from several owners, but noted there was not 25
much interest to redevelop at this time. 26
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Commissioner Hull suggested the information in the letter be posted on the City’s website to see 28
if the City could gain more interest. 29
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C. Forgivable Loan Program Update 31
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City Attorney Riggs stated he would be providing staff with information regarding a forgivable 33
loan program later this week. He anticipated this program would be further discussed by the 34
Council at the worksession meeting on July 6, 2021. 35
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D. MWF Properties Easement, Purchase and Development Agreement Update 37
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City Attorney Riggs reported he had started a draft Purchase and Development Agreement with 39
MWF. He explained he was waiting to hear from the State on the conduit bonds allocation. He 40
understood MWF wanted to survey the property and reported staff had given the go ahead for 41
this. He stated once a determination was made by the State, staff would have a Purchase and 42
Mounds View EDA June 28, 2021
Regular Meeting Page 3
Development Agreement completed for the EDA to review. 1
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8. NEXT EDA MEETING: Monday, July 12, 2021 at 6:30 p.m. 3
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9. ADJOURNMENT 5
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President Mueller adjourned the meeting at 6:47 p.m. 7
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Respectfully submitted, 9
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Recorded and transcribed by: 12
Heidi Guenther 13
Minute Maker Secretarial 14
Item No: 6A
Meeting Date: August 23, 2021
Type of Business: EDA
Administrator review: _______
City of Mounds View Staff Report
To: EDA President and Commissioners
From: Brian Beeman, Assistant City Administrator
Item Title/Subject: 21-EDA-345, Establishing the New Business Improvement Forgivable Loan
Program
Background
At the August 2, 2021 Council woksession the Council reviewed a draft outline of the newly proposed
Forgivable Loan program and offered comments and edits. Kennedy & Graven has implemented those
suggestions into the draft loan policy for the EDA’s review. A resolution establishing the new loan program
has been prepared. A representative from Kennedy & Graven will be present to answer any questions
on the new loan policy as necessary.
Discussion
The EDA to review and discuss the newly proposed Forgivable Loan program policy.
Strategic Plan Strategy/Goal
Consider adding a new incentive for start-up businesses Identify and distribute any new business subsidy
programs, maintain a positive business climate where businesses want to locate and remain in mounds view.
Finance top redevelopment areas Industrial/Commercial/Residential.
Financial Impact
Funded through EDA levy.
Recommendation
Should the EDA decide to move forward in approving the new loan program, 21-EDA-345,
Establishing the New Business Improvement Forgivable Loan Program, can be approved my motion.
Respectfully submitted,
________________________
Brian Beeman
Assistant City Administrator
Attachment(s):
1) 21-EDA-345
2) Draft Forgivable Loan Program
The Mounds View Vision
A Thriving Desirable Community
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DOCSOPEN\MU205\13\742458.v1-8/18/21
EDA RESOLUTION 21-EDA-345
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION ESTABLISHING THE NEW BUSINESS IMPROVEMENT
FORGIVABLE LOAN PROGRAM
WHEREAS , the Mounds View Economic Development Authority (the “Authority”)
was created pursuant to Minnesota Statutes, sections 469.090 through 469.1082 to
exercise its powers to promote and protect economic development within the City of Mounds
View (the “City”); and
WHEREAS , the Authority seeks to establish a forgivable loan program, to be called
the New Business Improvement Forgivable Loan Program (the “Program”) for the purpose
of providing funds for physical building improvements and equipment upgrades for new
businesses within the City; and
WHEREAS , EDA staff prepared and presented guidelines for the Program, which
are incorporated herein by reference (the “Program Guidelines”) at the EDA’s August 23,
2021 meeting that set out details of the proposed Program; and
WHERE AS , it is consistent with the goals of the EDA, and is within its powers, to
establish the proposed Program to promote and sustain recently established businesses
within the City.
NOW THEREFORE, BE IT RESOLVED, by the Mounds View Economic
Development Authority, as follows:
1. The recitals set forth in the preamble to this Resolution are incorporated into this
Resolution as if fully set forth herein.
2. The EDA hereby establishes the “New Business Improvement Forgivable Loan
Program” as provided in this Resolution. The EDA authorizes a total of _____ to
be used for the Loan Program, with individual loans of up to $5,000 per calendar
year and total loan amounts under the Program not to exceed $15,000 per
recipient.
3. The New Business Improvement Forgivable Loan Program will be structured in
accordance with the provisions proposed in the Program Guidelines.
4. The President, Executive Director, and EDA staff are hereby authorized and
directed to do each of the following regarding the Program:
2
DOCSOPEN\MU205\13\742458.v1-8/18/21
a. Prepare an application, grant agreement, and such other documents as
may be needed;
b. Receive applications and determine eligibility;
c. Distribute grants to eligible businesses;
d. Communicate with the grant recipients as needed to confirm the grants
funds were used in accordance with the terms and conditions of the
Program;
e. Enter into such agreements on behalf of the City as may be needed to
accomplish any of the items required to effectively administer the
Program; and
f. Take all other actions, and execute such other documents, as may be
needed to implement and carry out the Program and the intent of this
Resolution.
Adopted on the 23rd day of August, 2021.
_________________________________
Attest: Carol A. Mueller, President
________________________________
Nyle Zikmund, Executive Director
(SEAL)
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Mounds View Economic Development Authority
New Business Improvement Forgivable Loan Program
PROGRAM OVERVIEW
The purpose of the New Business Improvement Forgivable Loan Program (the “Program”) is to provide
for physical building improvements and equipment upgrades for new businesses within the City of Mounds
View (the “City”). The Program will be administered by the Mounds View Economic Development
Authority (the “EDA”) and is intended to promote and sustain recently established businesses within the
City, many of which are owned and operated by one individual or a family and have a limited ability to
reinvest and grow. The Program will provide a mechanism for owners of such businesses to reinvest in
their business in a manner that might otherwise be difficult. The EDA may engage with consultants to assist
with the administration of the Program.
PROGRAM POLICIES
BUSINESS ELIGIBILITY
• The Program is only available to for-profit businesses that meet all of the following criteria:
o The business can prove that it has been in existence for less than five years;
o The business requires at least one full-time employee (40 hours per week) or two part-time
employees (equaling 40 hours per week) to operate;
o The business is physically located within the city limits of Mounds View, Minnesota;
o The business is not a home occupation, as defined in City Code, and operates in a
commercial setting;
o The business must be an allowed use in the City through zoning of the property or otherwise
be a legally non-conforming use;
o The business must be a legal entity registered with the Minnesota Secretary of State and be
in good standing; and
o The applicant must not have delinquent taxes, bills, or charges due to the City.
EXPENSE ELIGIBILITY
• Forgivable loan proceeds provided under the Program may only be used for the following purposes
(collectively, the “Business Improvements”):
o To make visual improvements to the business’s commercial space, including, but not
necessarily limited to, façade improvements, commercial signage, or other exterior
improvements; and
o To make equipment upgrades or purchase other capital materials that are intended to
sustain the business in the long-term.
• Program loan proceeds may not be used for costs related to any City fees that are required to
facilitate Business Improvements, e.g., building permits, zoning application fees. Additionally,
Program loan proceeds may not be used to purchase commercial inventory or other materials that
are not intended to sustain the appearance or functionality of the business in the long-term.
• [ADDITIONAL REQUIREMENTS?]
ADDITIONAL REQUIREMENTS
• All Business Improvements funded under the Program must be completed or purchased and fully
operational within six months from the date of award and execution of loan documents.
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• Before the EDA and/or consultant makes payment to any business under the Program, the business
owner must do the following:
o Execute any and all documents that are required under the Program, including any
agreements;
• Within six months of date of the award and execution of loan documents, the business owner must
do the following:
o Provide to the EDA and/or consultant evidence of paid invoices for the Business
Improvements contemplated pursuant to the approved application; and
o Provide EDA and/or consultant’s staff with photographs of the completed Business
Improvements or, at the request of EDA and/or consultant’s staff, with an opportunity to
visit the business to confirm that the Business Improvements are indeed completed and
fully operational.
LOAN AMOUNTS/PROGRAM LIMITATIONS
• Businesses are limited to no more than one forgivable loan under the Program per calendar year
that shall not exceed $5,000 and shall not exceed $15,000 total through the program over any
number of calendar years. Program resources are limited and cannot exceed a maximum amount
of $___________ per calendar year in total forgivable loans awarded under the Program. When
said maximum is reached, on a first come, first served basis determined by receipt of completed
applications, the Program will close for the year. Nothing contained herein shall preclude the EDA
from closing the Program before the aforementioned maximum is reached if it determines, in its
sole discretion, that expected funding is no longer available.
APPLICATION PROCEDURE
• All applications for Program funding shall be made on the prescribed form. Applications are
required to be submitted to the Program administrator (contact information is listed below).
Mounds View Economic Development Authority
Attn: Assistance City Administrator
2401 County Hwy 10
Mounds View, MN 55112
Email: brian.beeman@moundsviewmn.org
Phone: (763) 717-4001
• Upon submission of an application, staff will review the application to ensure that all required
information is provided. If additional information is needed, staff will make a request for such
information.
• Following review of a completed Program application that meets all criteria, and assuming that
adequate funding is available for the requested Business Improvements, a recommendation will
be made for final approval. No Program loan shall be made prior to final approval and
authorization.
Center for Energy and Environment
212 3rd Ave N, Ste 560, MPLS MN 55401
612-335-5885 (office/fax)
www.mnlendingcenter.org
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• Once approved, loan documents shall be prepared by staff for approval and execution by all
parties. In addition to any other requirements which may be deemed necessary loans will be
subject to the following terms:
o At the end of one year following the distribution of loan funds, assuming that the
business has not been sold and all Business Improvements are still being utilized by the
recipient, the entire loan balance will be forgiven.
The business owner must provide EDA and/or consultant’s staff with photographs
of the still utilized Business Improvements or, at the request of EDA and/or
consultant’s staff, with an opportunity to visit the business to confirm that the
Business Improvements are indeed still being utilized.
o Should the business or any of the Business Improvements be sold during the one year
following the disbursement of loan funds, the recipient shall be obligated to pay the
entirety of the loan back to the EDA, without interest.
•