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HomeMy WebLinkAbout04-10-2023 EDACITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, April 10, 2023 6:00 p.m. 1.CALL TO ORDER 2.ROLL CALL: President Hull, Vice President Cermak, Commissioner Lindstrom, Commissioner Meehlhause, Commissioner Gunn 3.APPROVAL OF AGENDA 4.CONSENT AGENDA A.Approval of Minutes: January 23, 2023 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.Resolution 23-EDA-364, Amending The New Business Forgivable Loan Program 7.REPORTS A.None 8.NEXT EDA MEETING: April 24, 2023 at 6:00 p.m., Mounds View City Hall 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 January 23, 2023 6 Mounds View City Hall 7 2401 Mounds View Boulevard, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Hull called the meeting to order at 6:30 p.m. 13 14 2. ROLL CALL: President Hull, Vice President Cermak, Commissioner Gunn, 15 Commissioner Lindstrom, Commissioner Meehlhause, and Executive Director Zikmund. 16 17 NOT PRESENT: None. 18 19 3. APPROVAL OF AGENDA 20 21 MOTION/SECOND: Lindstrom/Cermak. To Approve the January 23, 2023, Agenda as 22 presented. 23 24 Ayes – 5 Nays – 0 Motion carried. 25 26 4. CONSENT AGENDA 27 28 A. January 9, 2023, EDA Minutes. 29 30 President Hull explained he spoke with staff and requested one change to the minutes. 31 32 MOTION/SECOND: Gunn/Cermak. To Approve the Consent Agenda as amended. 33 34 Ayes – 5 Nays – 0 Motion carried. 35 36 5. PUBLIC COMMENT 37 38 None. 39 40 6. EDA BUSINESS 41 42 A. Confirm EDC Chair Appointment. 43 44 Commissioner Meehlhause requested the EDA confirm the Chair appointment for the EDC. 45 46 Mounds View EDA January 23, 2023 Regular Meeting Page 2 MOTION/SECOND: Meehlhause/Gunn. To Confirm the EDC Chair Appointment. 1 2 Ayes – 5 Nays – 0 Motion carried. 3 4 7. REPORTS 5 6 None. 7 8 8. NEXT EDA MEETING: Monday, February 13, 2023 at 6:00 p.m. 9 10 9. ADJOURNMENT 11 12 President Hull adjourned the meeting at 6:33 p.m. 13 14 Respectfully submitted, 15 16 17 Recorded and transcribed by: 18 Heidi Guenther 19 Minute Maker Secretarial 20 The Mounds View Vision A Thriving Desirable Community Item No: 6A Meeting Date: April 10, 2023 Type of Business EDA City Administrator Review City of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Assistant City Administrator Item Title/Subject: 23-EDA-364, Amending the New Business Forgivable Loan Program Introduction: On September, 26, 2022 the City Council approved a resolution creating the New Business Loan Program for startup businesses in Mounds View. The latest recipient was Filipino Village. Recently, the Sandwich Shop submitted an application. They meet all of the criteria stated in the New Business Loan Program Policy except for the criteria that they must be in business for five or less years. The business was registered with the State of Minnesota on November 12, 2013. This pushes them over the five year threshold. Staff has coordinated with Kennedy & Graven to prepare the necessary loan policy guidelines amendment and resolution required if the Authority wishes to allow businesses over the five year mark to qualify for the loan. Discussion: The EDA to review and discuss the (five years or less) criteria and decide if approving the proposed Resolution is appropriate. The resolution approving the amendment to the program does two things: 1) Removes the requirement that a business must be in business for five years of less. 2) Updates the name of the program from the Mounds View New Business Improvement Forgivable Loan Program to the EDA Forgivable Loan. Strategic Plan Strategy/Goal:  Create and maintain a positive business climate where businesses want to locate and remain in Mounds View through a good BR&E program and redevelopment efforts. Financial Impact: The current loan policy allows for a maximum of $5,000 annually up to three years per qualifying business. This is an annually budgeted item. Recommendation: Consider approving 23-EDA-364, A Resolution Amending the New Business Forgivable Loan Program by motion. Respectfully, Brian Beeman, MPA, CMC Assistant City Administrator ATTACHMENT(S): 1) Resolution 23-EDA-364 2) EDA Forgivable Loan Program Guidelines Update 1 DOCSOPEN\MU205\6\867248.v2-4/5/23 EDA RESOLUTION 23-EDA-364 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION AMENDING THE NEW BUSINESS 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 established 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, Program eligibility criteria currently require that an applicant must have been in business for less than five years, and the Authority desires to expand the Program to other businesses in the City by eliminating the requirement that applicants have been in business for less than five years; and WHEREAS, EDA staff have prepared and presented amended guidelines for the Program, which are attached to this Resolution as Exhibit A and incorporated herein by reference (the “Program Guidelines”); and WHEREAS, to avoid confusion over eligibility, the name of the Program will be updated to the EDA Forgivable Loan Program, however references in current documents and agreements to the New Business Improvement Forgivable Loan Program will be honored until these documents and agreement are updated in the regular course of business; and WHEREAS, it is consistent with the goals of the EDA, and is within its powers, to amend the proposed Program to promote and sustain 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 amends the New Business Improvement Forgivable Loan Program as provided in this Resolution and the amended Program Guidelines established in Exhibit A. 3. The President, Executive Director, and EDA staff are hereby authorized and 2 DOCSOPEN\MU205\6\867248.v2-4/5/23 directed to do each of the following regarding the Program: a. Amend the Program 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 10th day of April, 2023. _________________________________ Attest: Al Hull, President ________________________________ Nyle Zikmund, Executive Director (SEAL) Exhibit A Page 1 DOCSOPEN\MU205\13\867249.v2-4/5/23 EXHIBIT A PROGRAM GUIDELINES Exhibit A Page 2 DOCSOPEN\MU205\13\867249.v2-4/5/23 EDA Forgivable Loan Program Interest Rate: 0% Amortization Type: Deferred (no monthly payments). Loan Amount: Up to $5,000 per calendar year per business, but not to exceed $15,000 total through the program over any number of calendar years. Loan term: One (1) year. If the business or financed improvements have not been sold within one (1) year of loan closing the loan shall be 100% forgiven. If the business or improvements have been sold within one (1) year of loan closing 100% of the loan is due in full. Eligible Properties: Commercially zoned or legally non-conforming use properties located within the geographical boundaries of the City of Mounds View. Mixed use properties are eligible. Ineligible Properties: Properties used for residential purposes. Eligible Borrowers: The Borrower must require at least one (1) full-time employee (40 hours per week) or two (2) part-time employees (equaling 40 hours per week) to operate. All borrowers must be a registered business with the MN Secretary of State. The borrower(s) may own or lease the property. Ineligible Borrowers: Including but not limited to: Businesses not registered with the MN Secretary of State and businesses defined as home occupations under Mounds View City Code. Ownership/Occupancy: Business must occupy the property. Loan - to - Value Ratio: N/A Income Limit: N/A Debt - to - Income Ratio: N/A Credit Requirements: There must not be any delinquent property taxes, bills or charges due to the City. The City will verify or provide a list of eligible businesses. Multiple Loans per Property: More than one loan per business is allowed, but a maximum of $5,000 per calendar year and not to exceed a combined $15,000 over the life of the program. Eligible Use of Funds: To make permanent physical improvements to the business’s commercial space, including, but not limited to, façade improvements, commercial signage, parking lots, sidewalks, Exhibit A Page 3 DOCSOPEN\MU205\13\867249.v2-4/5/23 permanent landscaping, siding, roofing, windows/doors or other permanent physical exterior improvements. To make equipment upgrades or purchase other capital materials that are intended to sustain the business in the long-term, including but not limited to: HVAC, solar, plumbing, electrical, lighting, insulation, flooring, remodeling or other permanent physical interior improvements. Ineligible Use of Funds: 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. Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Questionable improvements will be brought to the EDA. Bids: Only one bid is required. All contractors must be properly licensed. Sweat Equity Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials and not to compensate for labor. Loan funds can be used to rent tools/ equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by the City or its authorized representative to ensure the work has been completed before any funds will be released. Loan Security: None. Borrower Fees: None. Work Completion: All work must be completed within six (6) months of the loan closing. However, when warranted, exceptions may be made on a case by case basis. General Program Conditions Application Processing: Loans will be distributed on a first come first serve basis as applicants qualify. Applicants must provide a completed application package including the following in order to be considered for funding.  Completed and signed application form  Proof of income  Bids or estimates for proposed projects  Other miscellaneous documents the City or the City’s authorized representative may require Contractors/Permits: Contractors must be properly licensed. Permits must be obtained when required by City ordinance. Program Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be paid per the Program Budget. Loan program marketing efforts will be billed directly to the City of Mounds View EDA and is a separate expense should the City of Mounds View EDA choose to commission Exhibit A Page 4 DOCSOPEN\MU205\13\867249.v2-4/5/23 a third-party contractor for marketing support. Borrowers will pay all mortgage filing fees and related closing costs. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or the City’s authorized representative to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector or the City’s authorized representative; • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; and • Evidence of City permit (if required).