Loading...
HomeMy WebLinkAbout2021 07-26 EDAPE conomic Development Authority V I RT UA L meeting being conducted by electronic means in accordance with Minnesota S tatutes, section 13D.021 P ublic portion available for connection via telephone Dial: 1-312-626- 6799 Meeting I D: 99398068818# P asscode: 7635693300# J uly 26, 2021 AGE NDA 1.C all to Order The C ity Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including E D A (Economic Development Authority ), is available to the public . The packet ring binder is located at the entranc e of the council chambers. 2.Roll Call 3.Approval of Consent Agenda The following items are considered to be routine by the Ec onomic Development Authority (E D A ) and will been acted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in whic h event the item will be removed from the c onsent agenda and considered at the end of C ommission Consideration I tems. a.A pproval of Minutes - Approve the minutes from the July 12, 2021, meeting b.Resolution Approving the C ertif icate of C ompletion of P roject (Sonder Point) - Motion to approve a resol ution approving the certi fi cate of completion of project. c.Resolution Approving a R ight of Entry Agreement with L ennie Chism f or use of 6100 Shingle Creek P arkway (F ormer Target Site) - Motion to approve a resoluti on approving a Right of Entry Agreement with Lenni e Chism for use of 6100 Shingle Creek Parkway (Former Target Site) 4.C ommission C onsideration Items a.Resolution Authorizing a B rooklyn C enter Micro-L oan P rogram - Motion to approve a resol ution authorizing a Brookl yn Center Micro-Loan Program 5.Adjournment E conomic Development A uthority DAT E:7 /26/2 0 2 1 TO :C ity Council F R O M:D r. Reggie Edw ards , A c#ng C ity M anager T H R O U G H :N/A BY:Barb S uciu, City Clerk S U B J E C T:A pprov al of M inutes Requeste d C ouncil A con: - A pprove the minutes fr om the July 12, 202 1 , meeng B ackground: I n accordance w ith Minnes ota S tate S tatute 1 5 .17, the official records of all mee#ngs mus t be documented and approved by the gov erning body. B udget I ssues: - None I nclusive C ommunity E ngageme nt: N/A A nracist/Equit y Policy Effe ct: N/A S trate gic Priories and Values: O pera#onal E xcellence AT TA C H M E N TS : D escrip#on Upload D ate Ty pe J uly 12 7/21/2021 Backup M aterial 07/12/21 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JULY 12, 2021 VIA ZOOM 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by Vice President Marquita Butler at 9:20 p.m. 2. ROLL CALL President Mike Elliott and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Reggie Edwards, City Engineer Mike Albers, City Attorney Troy Gilchrist, and City Clerk Barb Suciu. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Vice President Butler seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. June 28, 2021 – Regular Session 3b. EDA RESOLUTION NO. 2021-10 AUTHORIZING THE DEDICATION OF TEMPORARY AND PERMANENT EASEMENTS ON ECONOMIC DEVELOPMENT AUTHORITY (EDA) PROPERTY AT 6101 BROOKLYN BOULEVARD, 6107 BROOKLYN BOULEVARD, 6234 BROOKLYN BOULEVARD, AND 5836 BROOKLYN BOULEVARD Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. EDA RESOLUTION NO. 2021-11 APPROVING THE SALE OF 6001 BROOKLYN BOULEVARD, 6007 BROOKLYN BOULEVARD, AND 6301 BROOKLYN BOULEVARD TO THE CITY OF BROOKLYN CENTER FOR THE BROOKLYN BOULEVARD CORRIDOR PROJECT PHASE 2 IMPROVEMENTS 07/12/21 -2- DRAFT Executive Director Reggie Edwards introduced the item and invited Mr. Albers to present the staff report. City Engineer Mike Albers stated the EDA is being asked to hold a public hearing on the sale of three properties along Brooklyn Boulevard to the City of Brooklyn Center as they relate to the Brooklyn Boulevard Phase 2 Improvements. Mr. Albers explained the Brooklyn Boulevard corridor study began in 2011 and was completed in July of 2013. As part of that project, the Brooklyn Boulevard corridor was reviewed from the south City limits at 49th Avenue up to Interstate 94. The goal of the study was to set long-term visions for the Brooklyn Boulevard corridor as it would redevelop in the future. It looked at the roadways, bike and pedestrian facilities, transit, and streetscaping along that corridor. Mr. Albers reviewed the recommendations provided as part of the corridor study that was consistent with the long-term vision for Brooklyn Boulevard and recommended Preferred Concepts and an implementation plan as part of that study. Staff used the implementation plan to split the corridor into two segments. Phase 1 was 49th Avenue to just north of Bass Lake Road and was completed from 2018 to 2022. Phase 2 was from Bass Lake Road to Interstate 94 and is currently ongoing at this time. Mr. Albers explained that as part of the Brooklyn Boulevard Phase 2 improvements, the City Council approved a resolution establishing the project and directing staff to proceed with the preliminary design, easement acquisition, and final design work on March 25, 2019. As part of that project, there are several roadway improvements that impact parcels the EDA acquired over the years along Brooklyn Boulevard. Some of the main improvements, when looking at the reconstruction of Brooklyn Boulevard, include improving access control throughout the corridor with medians between Bass Lake Road and 65th Avenue. They looked at adding a paved trail with a 10-foot boulevard on the west side of Brooklyn Boulevard and a 6-foot sidewalk and 10-foot boulevard on the east side of Brooklyn Boulevard. Staff also looked at relocating several Metro Transit bus stops so they would align and have safe pedestrian crossings and adding a new underground storage facility in the northwest corner of 63rd Avenue, which would impact EDA parcels. Mr. Albers stated one of the main impacts would be the realignment of Admiral Lane with 60th Avenue and installing a sidewalk along that segment of road. Mr. Albers stated on November 9, 2020, the City Council authorized the acquisition of EDA parcels and easements along Brooklyn Boulevard so the improvements can be constructed. The three parcels that will be impacted and acquired as part of the Brooklyn Boulevard project include 6001 Brooklyn Boulevard, a .25-acre parcel acquired by the EDA in 2012. Based on the realignment of Admiral Lane it is not a buildable lot by current requirements if only an easement is acquired so staff suggests acquiring the parcel in full. For that acquisition, the City would reimburse the EDA $66,646. Mr. Albers stated the second impacted parcel is 6007 Brooklyn Boulevard, a .24-acre parcel acquired by the EDA in 2013. Staff suggests only acquiring the road right-of-way so the remaining portion on the north side, about 4,155 square feet, is left as a remnant parcel for EDA redevelopment. This road easement acquisition and title fee would be about $43,130. 07/12/21 -3- DRAFT Mr. Albers stated the final property impacted is 6301 Brooklyn Boulevard, a .4-acre parcel acquired by the EDA in 2014. It is anticipated to build an underground stormwater detention facility on this property so staff suggests a full acquisition of this parcel for $20,000. Mr. Albers summarized that these three parcels were acquired by the EDA in 2012 and 2014, the purchase prices were negotiated by the City and EDA, the EDA would recoup the money the EDA paid for the parcels, the total negotiated costs for the properties is $129,776, and the acquisition would be funded from the overall Brooklyn Boulevard Phase II project. The proceeds from the land sale are considered tax increment revenue and will be placed back into the Tax Increment District #3 fund. Mr. Albers recommended the EDA hold a public hearing, take public input on the sale of these properties, close the public hearing, and consider the adoption of a resolution approving the sale of these three parcels. Vice President Butler moved and Commissioner Lawrence-Anderson seconded to open the Public Hearing. Motion passed unanimously. No one wished to address this item. Vice President Butler moved and Commissioner Lawrence-Anderson seconded to close the Public Hearing. Motion passed unanimously. Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2021-11 Approving the Sale of 6001 Brooklyn Boulevard, 6007 Brooklyn Boulevard, and 6301 Brooklyn Boulevard to the City of Brooklyn Center for the Brooklyn Boulevard Corridor Project Phase 2 Improvements. Motion passed unanimously. 5. ADJOURNMENT Commissioner Graves moved and Vice President Butler seconded adjournment of the Economic Development Authority meeting at 9:34 p.m. Motion passed unanimously. E conomic Development A uthority DAT E:7 /26/2 0 2 1 TO :C ity Council F R O M:D r. Reggie Edw ards , A c#ng C ity M anager T H R O U G H :N/A BY:M eg B eekman, Community D ev elopment D irector S U B J E C T:Res olu#on A pprov ing the C er #ficate of C omple#on of P r oject (S onder Point) Requeste d C ouncil A con: - Moon to appr ove a r esoluon appr oving the cer ficate of compleon of proj ect. B ackground: O n July 8, 20 1 9 , the City created Tax I ncrement F inancing D is trict No. 8, and adopted a T I F plan which prov ides for the us e of tax increment financing in connec#on with the S onder H ous e development proposed by Real E s tate Equi#es, w ithin the T I F D is trict. O n July 22, 2 0 1 9 , The E D A approved a T I F A s s is tance A greement for a 1 2 7 -unit w orkforce building as part of the approval of the development project. I n order to implement the T I F D is trict and is s ue the tax increment revenue note, T he T I F A s s is tance A greement requir es the E D A to approve a cer #ficate of comple#on, verify ing that the project has been completed in accor dance w ith the approved plans . Because tw o s eparate notes will be is s ued, one for each building, Real Es tate Equi#es is s eeking a cer #ficate of comple#on from the E DA for the first building on the s ite. S taff has review ed the request and has deemed the pr oject complete. A C er #ficate of O ccupancy was is s ued in A pril 2021, and the building is now fully leas ed. B udget I ssues: T here are no budget is s ues to cons ider. I nclusive C ommunity E ngageme nt: T here is no community engagement component to this item. A nracist/Equit y Policy Effe ct: T here is no an#racis t/equity policy impact r elated to this item. S trate gic Priories and Values: O pera#onal E xcellence AT TA C H M E N TS : D escrip#on Upload D ate Ty pe Res olu#on 7/16/2021 Resolu#on L e@er 590021v2BR291-400 Commissioner _____________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO.______________ RESOLUTION APPROVING THE CERTIFICATE OF COMPLETION OF PROJECT WHEREAS, the ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA a public body corporate and politic organized under the laws of the State of Minnesota (the "EDA"), and Brooklyn Center AH I, LLLP, a Minnesota limited liability limited paiinership (the "Developer") have entered into a TIF Assistance Agreement (the "TIF Assistance Agreement"), dated July 22, 2019; and WHEREAS, the TIF Assistance Agreement requires the Developer to construct a Project (as that term is defined in the TIF Assistance Agreement); WHEREAS, the Developer has constructed the Project in a manner deemed sufficient by the EDA to permit the execution of this certification in accordance with Section 3.9 of the TIF Assistance Agreement; NOW, THEREFORE, this is to certify that the Developer has constructed the Project in accordance with the TIF Assistance Agreement. The remaining covenants of the Developer under the TIF Assistance Agreement are not intended to run with title to the Development Property or bind successors in title to the Development Prope1iy. July 26, 2021 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. E conomic Development A uthority DAT E:7 /26/2 0 2 1 TO :C ity Council F R O M:D r. Reggie Edw ards , A c#ng C ity M anager T H R O U G H :M eg B eekman, Economic D ev elopment D irector BY:Vong T hao, Economic D ev elopment C oordinator S U B J E C T:Res olu#on A pprov ing a Right of Entr y A greement with L ennie C his m for us e of 6100 S hingle Creek Parkw ay (Former Tar get S ite) Requeste d C ouncil A con: - Moon to appr ove a r esoluon appr oving a R ight of E ntry A greement w ith L ennie C hism for use of 6 1 0 0 S hingle C reek Par kway (For mer Tar get S ite) B ackground: I n 2018 E DA appr oved and agreement w ith L ennie Chism to fund and coordinate a pop-up market w hich w ould take place on the first S aturday of each month ov er the summer. The goal w as to raise the city's economic makeup by cul#va#ng new and exis #ng s tar t-up busines s es while incr eas ing economic stability. T he market ran for two s easons and w as dis con#nued during the pandemic in 2020. T he market was not pursued by the C ity in 2021 largely due to the lack of s taff capacity and the pr iori#z a#on of other ini#a#ves. L ennie C his m has s ubmi?ed a request to con#nue the effort, co -organiz ed and managed w ith the owner of I rie Vybz, the J amaican r estaurant located at 6 0 5 6 S hingle Creek Parkw ay. The firs t event is being planned for A ugus t 7 and the theme of first event is to celebr ate Jamaican I ndependence D ay. A full applica#on and s ite lay out is a?ached to this report. L ennie C his m is s eeking a R ight of Entry A gr eement to u#lize the parking lot of the for mer Target property for the event. H e is r eques #ng to hos t one pop-up market per month through O ctober. H e would provide all equipment and materials for the ev ent, as w ell as overs ee set-up, management of the event, and tear dow n. H e is not reques #ng any funds from the C ity to s upport the ev ent. T he a?ached R ight of Entr y A greement lays out the performance requirements for the us e of the E DA - ow ned parking lot, as w ell as iden#fies a fee of $100 per event for the us e of the pr operty. S taff has review ed the proposed plans and believ es there is minimal ris k to the C ity in allow ing the us e of the v acant park ing lot. E ncouraging pop-up events s uch as this provides a plaCor m to ac#v ate underu#liz ed land and s uppor t local busines s es. B udget I ssues: T he E DA will prov ide the parking lot located at 6 1 0 0 S hingle Creek Parkw ay, which is als o the former Tar get parking lot. E DA w ill char ge L ennie C his m $1 0 0 to leas e the property un#l O ctober 3 1 , 2021. I nclusive C ommunity E ngageme nt: Vendors will cons is t of local start up or exis #ng bus ines ses . Bus inesses w ill have the opportunity to promote their bus ines s post cov id recovery and acces s to new marke#ng av enues . A nracist/Equit y Policy Effe ct: T he purpos e of the O utdoor Market is to incr eas e economic stability for local s mall bus inesses . S trate gic Priories and Values: Resident Economic S tability, I nclus ive Community Engagement AT TA C H M E N TS : D escrip#on Upload D ate Ty pe A dminis tra#ve Per mit and Ev ent D escrip#on 7/21/2021 Cov er Memo Right of Entry A gr eement _ L ennie Chism 7/21/2021 Cov er Memo Res olu#on 7/21/2021 Backup M aterial 314975v1 MDT BR291-10 1 RIGHT OF ENTRY AGREEMENT THIS AGREEMENT is made on this _____ day of _______, 2021, by and between ________________________, a _________________ (“Lennie Chism”), and the EDA of Brooklyn Center Economic Development Authority (“EDA”), a public body corporate and politic under the laws of Minnesota. Recitals A. The EDA is the owner of a certain property located at 6100 Shingle Creek Parkway, consisting of an approximately 117,000 square foot building and 9 acres of land and parking (the “Property”). B. Lennie Chism desires to use the Parking Lot Property for a Saturday Outdoor market. C. The EDA desires to permit Lennie Chism, its agents, employees, contractors and invitees to enter upon the Property so as to permit Lennie Chism to perform a Saturday Outdoor Market. Agreement NOW, THEREFORE, in consideration of the premises and their mutual promises the parties agree as follows: 1. Right of Entry. The EDA hereby grants Lennie Chism, its agents, employees, contractors and invitees, permission to enter upon the Property at its discretion, for the purpose of conducting training exercises. All such activities will be conducted at the direction and sole expense of Lennie Chism. The EDA represents and warrants to Lennie Chism that the EDA owns the Property and, therefore, has the sole and exclusive authority and right to enter into this Agreement. 2. Indemnification of EDA. In consideration of such Right of Entry, Lennie Chism agrees to and shall indemnify, defend and hold harmless the EDA, its agents, officers, employees and elected officials from and against any action, claim, damage, liability, loss, cost or expense (including without limitation attorneys' fees and costs) resulting from: (a) any liens which may be attached to the Property for labor or materials provided by or at the request of Lennie Chism; (b) injury to or death of persons; (c) property damage; or (d) any claim, damage, action, loss or destruction whatsoever caused by Lennie Chism’s agents or contractors in connection with Lennie Chism’s entry onto the Property, pursuant to this Agreement. 3. Condition of Property. Lennie Chism shall return the Property to the same condition as prior to exercising the right to enter to the greatest extent practicable. Lennie Chism shall not cause the building or Property to be damaged and shall not utilize any bathroom facilities while inside the building. 4. Term. This Agreement shall commence on the date and year first above written and shall continue in full force and effect until October 31, 2021. 314975v1 MDT BR291-10 2 5. Governing Law. This Agreement shall be interpreted in accordance with and be governed by the laws of the State of Minnesota. 6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 7. Amendment. This Agreement may be amended by the parties only by written instrument executed in accordance with the same procedures and formality followed for the execution of this Agreement. 8. Insurance. Lennie Chism shall ensure that its consultants, contractors and invitees that enter the Property pursuant to this Agreement shall carry insurance during the time any work is done on the Property in accordance with the following minimum requirements: 1. Workers' Compensation Insurance with limits as provided by statute, with all necessary statutory elections to provide coverage for and/or claims made by any person doing work on the Property pursuant to this Right of Entry; 2. Employer's liability insurance (often included as coverage (b) in the Workers' Compensation policy) with limits of $100,000; 3. Comprehensive Auto (and truck) Liability Insurance with minimum combined single limits of $1,500,000 per occurrence; 4. Comprehensive General Liability Insurance (including coverage for contractual liability, products and completed operations liability, liability arising out of explosion, or underground related incidents) with minimum combined single limits of $1,500,000 per occurrence. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in their names and behalves and on or as of the date and year first above written. Lennie Chism By Its Principal BROOKLYN CENTER EDA By__________________________________ Reggie Edwards, City Manager 314975v1 MDT BR291-10 3 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _______, 2021, by and between ________________________, a _________________ . Notary Public NOTARY STAMP OR SEAL STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2021, by Reggie Edwards, the City Manager, respectively, of the city of Brooklyn Center, a public body corporate and politic under the laws of Minnesota. Notary Public NOTARY STAMP OR SEAL BR305-1-736124.v2 Commissioner _______________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. ______ RESOLUTION APPROVING A RIGHT OF ENTRY AGREEMENT FOR A POP-UP MARKET EVENT WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (the “Authority”) purchased the former Target building located at 6100 Shingle Creek Pkwy in Brooklyn Center (the “Authority Property”); and WHEREAS, Lennie Chism (“Applicant”) has successfull y been conducting pop-up markets in the City of Brooklyn Center (“City”) in recent years; and WHEREAS, the Applicant has requested use of the parking lot on the Authority Property to conduct pop-up markets on the first Saturday of August, September, and October in 2021 (collectively, the “Event”); and WHEREAS, the Authority determines it is in the best interests of the community to allow the Authority Property to be used by the Applicant to conduct the Event in accordance with the terms and conditions of a Right of Entry Agreement. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota (the “Board”), as follows: 1. The Board hereby approves entering into a Right of Entry Agreement with the Applicant to allow the Event to occur in the parking lot of the Authority Property. 2. The Board hereby authorizes the President and Executive Director to execute the Right of Entry Agreement on behalf of the Authority once it is in a form acceptable to the attorney, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder. Date President ATTEST: Secretary The motion for the adoption of the foregoing resolution was duly seconded by Commissioner ___________________ BR305-1-736124.v2 and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. E conomic Development A uthority DAT E:7 /26/2 0 2 1 TO :C ity Council F R O M:D r. Reggie Edw ards , A c#ng C ity M anager T H R O U G H :M eg B eekman, Community D ev elopment D irector BY:Vong T hao, Economic D ev elopment C oordinator S U B J E C T:Res olu#on A uthorizing a Br ookly n Center Micro-L oan P rogram Requeste d C ouncil A con: - Moon to appr ove a r esoluon authoriz ing a B rook lyn C enter M icro-L oan P rogr am B ackground: T he 2021 E DA Budget iden#fied $50,000 for a micr o-loan program for small bus ines ses . The purpose of the program is to pr ovide much needed credit-building, technical assistance, and w orking capital for Brooklyn Center s mall busines s es. Brooklyn Center is home to a w ide v ariety and ar ray of small and micro bus ines s es , many of which are ow ned by immigrant and B I P O C residents . A s our economy emerges out of the pandemic, many small bus inesses are focus ed on reopening and recov er y. A s a res ult of this , many bus ines s es are in need of w orking capital to get back up and on their feet. S mall bus ines s es , par #cularly B I P O C -ow ned bus ines s es , face a greater barr ier to acces s ing tradi#onal pathways to financing. There are many reas ons for this , but the primary r eas on is that many are not cons idered "bank ready ", meaning they may not have the credit or documenta#on in order to allow them to get through underwr i#ng w ith a private bank . A s a res ult, thes e small bus ines s es acces s capital through les s tradi#onal methods , s uch as family network s or thr ough more predatory lending op#ons. Neither of thes e paths put thes e s mall bus inesses on a path to ov er coming barriers and eventually acces s ing bank financing. T he L iberian Bus ines s A s s ocia#on (L I B A ) appr oached the C ity with a propos al to addres s these is s ues. The Brooklyn Center M icro-L oan P rogram would prov ide s mall loans of up to $5,0 0 0 to s mall and micro- bus inesses in B rook lyn C enter. F unds can be us ed to s hore up opera#ng expenditures , such as paying rent, purchas ing inventory or paying s taff. F unds w ould be paid back ov er 12-24 months . A s part of the program, L I B A would provide mentor ing and technical ass is tance training to support s mall bus inesses w ith becoming bank ready. L I B A w ill report r epayments to credit bureaus so par#cipa#ng bus inesses can build credit. U pon paying back the loan, busines s es will be r eady to s tep-up into tradi#onal bank financing. L I B A is propos ing to adminis ter the program, conduct outreach and engagement, ov ers ee applica#ons and loan approvals , and manage repayment. T he approval commiBee w ould cons is t of a repres enta#v e of L I B A , the C ity's Economic D ev elopment Coordinator, and a s mall bus iness lender from a local bank. T hey w ill review applica#ons and make recommenda#ons for loan approvals . H aving a priv ate lender partner with the progr am w ill help develop a rela#ons hip between the bank and the par#cipa#ng s mall bus ines s es. T he private lender would als o assist with prov iding technical as s is tance training through L I B A . T he goal of the pr ogr am is to assist small bus ines s es w ith the near-term need for w orking capital, w hile building their capacity to grow their busines s ov er #me. L I B A has s ubmiBed a proposal and program guidelines , which are aBached to this report. T he resolu#on to approve the program, allows some addi#onal flexibility to work with L I B A to finaliz e the program befor e its official implementa#on. Bas ed on their as s es s ment of the need for this pr ogr am, L I B A is reques#ng a $100,0 0 0 loan from the E DA at 0 percent interes t to fund the program. L I B A would charge a 10 percent adminis tra#v e fee to overs ee the program and an addi#onal 6 percent inter es t on the loans to cover the cos t of managing the repayments . T he loan w ould be repaid to the E DA over 2 4 months . I f the program is found to be s ucces s ful, thes e funds could be used to con#nue to support a revolv ing loan program for this s pecific purpose, or they could be returned to the E DA for general us e. B udget I ssues: T he E DA budget includes $50,0 00 to s uppor t this program. S taff is exploring if A merican Rescue P lan funds could be used to pr ovide the addi#onal $50,0 0 0 w hich is being requested. A lter na#vely, E DA reserve funds w ould provide the balance. I nclusive C ommunity E ngageme nt: T he purpos e of the pr ogr am is to remove or r educe bar riers to private capital for s mall busines s es in Brooklyn Center, a maj ority of w hich are immigr ant and B I P O C -ow ned. A nracist/Equit y Policy Effe ct: T he purpos e of this program is to provide acces s to capital for non tradi#onal bor rowers who cannot get a loan through a bank. P r ogram w ill increase B rook lyn C enter busines s es financial acumen and readines s for a tradi#onal loan in the future from financial ins #tu#ons. S trate gic Priories and Values: Resident Economic S tability AT TA C H M E N TS : D escrip#on Upload D ate Ty pe Res olu#on 6/17/2021 Resolu#on L eBer M icro-L oan P r ogr am P r opos al 7/19/2021 Backup M aterial M icro-L oan Policy and G uidelines 7/19/2021 Backup M aterial BR305-1-728813.v1 Commissioner _______________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. ______ RESOLUTION APPROVING ESTABLISHMENT OF THE SMALL BUSINESS MICRO LOAN PROGRAM WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (the “EDA”) 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 Brooklyn Center (“City”); and WHEREAS, the COVID-19 pandemic has dramatically impacted local businesses, particularly small businesses, over the course of the past sixteen months; and WHEREAS, the City has a large number of micro businesses, many owned by immigrants and people of color, that are a critical part of the economic vitality of the City, and such businesses have been hit particularly hard by COVID-19; and WHEREAS, EDA staff presented a proposal from the Liberian Business Association (“LIBA”), dated _____________, 2021, which is incorporated herein by reference, which sets out the details of a proposed Small Business Micro Loan Program to be administered by LIBA with EDA funds in exchange for an administrative fee (“Loan Program”); and WHEREAS, the Loan Program is consistent with the goals of the EDA, and is within its powers, to establish the proposed Loan Program to assist small businesses and their employees, and to help protect the City’s economy and reduce unemployment. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of Brooklyn Center, Minnesota Board of Commissioners as follows: 1. The EDA hereby establishes the “Small Business Micro Loan Program” as provided in this Resolution. The EDA authorizes a total of $100,000 to be used for the Loan Program, with individual loans of up to $5,000. 2. The Loan Program shall be generally structured in accordance with the provisions contained in the proposal from LIBA that was presented to the EDA on the date of this Resolution, which was created by LIBA in close consultation with EDA staff. EDA staff shall be authorized, however, to make modifications to the Loan Program that do not materially alter the substance of the Loan Program as presented to the EDA on such date. 3. The Executive Director and EDA staff are hereby authorized and directed to do each of the following regarding the Loan Program: BR305-1-728813.v1 a. Execute and carry out an agreement with LIBA for the administration of the Loan Program, in a form that is acceptable to the EDA attorney; b. Prepare an application form, loan closing documents, policy and program guidelines, and such other documents as may be needed to carry out the Loan Program; c. Enter into such agreements on behalf of the EDA as may be needed; and d. Take all other actions, and execute such other documents, as may be needed to implement and carry out the Loan Program and the intent of this Resolution. Date President ATTEST: Secretary The motion for the adoption of the foregoing resolution was duly seconded by Commissioner ___________________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 1 BROOKLYN CENTER MICRO LOAN PROGRAM A LIBA DIASPORA Community Outreach Program Attention: Meg Beekman Community Development Director City of Brooklyn Center From: H. Jackson K. George, Jr., LIBA-Diaspora 6248 Lakeland Ave N, Suite 206 Brooklyn Park, MN 55428 June 7, 2021 Program Description The Liberian Business Association in the Diaspora continues to be committed to the partnership that exist between the City of Brooklyn Center and the Organization. With the successful COVID- 19 Business Enhancement grant, LIBA intends to continue such success by providing programs to meet small and micro businesses, especially minority-owned business’s needs. The COVID-19 pandemic quickly changed the business landscape, and the way small and micro businesses operate. Barriers for small business owners have been exacerbated by these layers of crisis, preventing access to capital, including drops in credit scores, reduction of cash on hand, increase in debt (sometimes at extremely poor or predatory terms due to business owners in survival mode desperate for help), and lack of business financial best practices. In response to these crisis circumstances, LIBA-Diaspora chooses to be pro-active and set up new programs to serve the needs of business owners, particularly those in the northern suburbs. LIBA proposes to set up a micro loan program, with a fund of $100,000 from the City of Brooklyn Center, to provide small micro loans of up to $5,000 to help Brooklyn Center small and micro businesses. The purpose of this loan is to provide Micro-loan up to $5,000.00 to support small and micro businesses in the City of Brooklyn Center to improve Revenue Growth and Financial Education. To that end, LIBA agrees to act as a Consultant to the City of Brooklyn Center to promote the program, identify relevant loan recipients, define underwriting guidelines, take applications, manage the approval process, distribute the loans, and manage the repayment terms, conditions, and process. The City and Consultant agree as follows: Page 2 of 6 Consultant's Services In this Agreement the Consultant agrees to focus efforts during this pandemic on the following immediate needs of small and micro businesses in the city of Brooklyn Center: Task 1: Data Gathering and List Building ● Utilize previous survey data and member input to identify and build a list of Brooklyn Center business owners in crisis. Task 2: Marketing Campaign ● Disseminate information about programs and benefits available to small businesses to those that may benefit from them in the City of Brooklyn Center. Task 3: Manage the Micro Loan Program ● Utilize the existing information from the COVID-19 Business Enhancement Grant, the prior Technical Assistance program to assist qualified business owners to submit applications for this loan program. ● Define underwriting guidelines, take applications, manage the approval process, distribute the loans, and manage the repayment terms, conditions, and process. ● Manage approval process: ○ Form and oversee three-party approval committee consisting of City’s Economic Development Coordinator, LIBA representative, and private banking representative. Approval committee will review applications and make recommendations to LIBA Executive leadership Team. ○ LIBA ELT makes final approval for loan recipients Task 4: Report ● Quarterly reports on participation, repayments, and any TA that is being provided. ● Provide a report to the city summarizing results of the Micro Loan Program to small businesses including how many businesses were assisted, how many got funded, and how many were not eligible for funding or were denied funding and why. Task 5: Underwriting The Micro Loan Program will provide low interest, easily accessible, and flexible repayment loans ranging from $1,000 to $5,000 to qualified minority businesses domicile in the City of Brooklyn Center. Task 6: Technical Assistance Provide technical assistance and mentoring to businesses through the repayment process • Utilize private banking partner to provide aspects of technical assistance/mentoring • Provide financial education to small and micro businesses • 1-on-1 progress follow up with each business after disbursement of the loan Page 3 of 6 Application Criteria All businesses must meet the below application criteria: • Have annual revenue of less than $250,000. • Be currently registered with the Minnesota Secretary of State • Be domiciled in the City of Brooklyn Center. • Must take a Financial Educational Class Underwriting Process The underwriting process includes completing a loan application form, reviewing the loan application, and approving the loan. Loan Application Form: all loan applicants are required to complete, sign, and attach all required supporting documents to a loan application form. The loan application form will be placed on LIBA-Diaspora website, shared with LIBA-Diaspora social media groups and by email, and collected from LIBA-Diaspora office. No loan applicant will be considered without a fully completed loan application form. Reviewing the Loan Application: the LIBA-Diaspora Loan Officer/Representative will review the entire application. This will include review of the following: • Loan Application Form: will review all the information on the applicable form. • Supporting Documents: will review all required supporting documents including business registration, business licenses (if applicable), business latest tax returns (Form 1040 Schedule C, Form 1065, Form 1120, Form 941, etc.), owner latest tax returns (if applicable), business latest financial statements (if applicable), owner financial information (if applicable), business outstanding obligations, owner outstanding obligations (if applicable), etc. • Owner credit score: will check and review business owner credit score. Business owner credit score will be a factor in determining the loan amount to approve. • Owner background: will perform background checks on the business owner. • Collateral: may require specific collateral such as a general lien on business assets, personal guarantee, etc. • Business Financials: will review the business income, expenses, and obligations to determine the ability to repay the loan and the loan amount to approve. • Other sources of repayment: may review other sources of income to repay the loan such as a guarantor, an insurance policy, or additional income from another job or other sources, etc. • Loan Amount: will determine the loan amount, applicable interest rate, and repayment period based on the review above. Due to the partnership with the city an arrangement could be made for a lower interest rate of 6% with the city paying some administrative overhead. Approving the Loan: the LIBA-Diaspora Loan Officer will forward the completely reviewed loan application packet; along with the approval decision, loan amount, interest rate, and Page 4 of 6 repayment period; to the Executive Director of LIBA-Diaspora/ Representative for review and signature. Report to Credit Bureaus: LIBA shall over the period report to credit bureaus to help build small and micro business credit to enable them become bank ready. Report: LIBA shall made quarterly report to the City of Brooklyn Center in the first year of the contract, and semi-annual report in the second year of the contract and an annual report in the third year of the contract. City’s Role and Responsibility The City agrees to provide financial resources, and tools to assist as requested by the Consultant. Compensation for Services: City agrees that LIBA will be the consultant organization administering the loan program. LIBA will pay 0%on the loan and LIBA will charge between 6% in administering the loan program. Method of Payment: The City of Brooklyn Center will make a loan payment of one hundred thousand dollars ($100,000) to LIBA to be administered as a small micro loan program for small and micro businesses in the City of Brooklyn Center. Repayment: LIBA will make quarterly repayments to the City, less an administrative fee of 10%. Term: The term of this Agreement shall be 24 months. This contract shall be in effect throughout the described time of service. This Agreement may be extended upon the written mutual consent of the parties for such additional period, as they deem appropriate, and upon the terms and conditions as herein stated. Termination: Either of the Party with 30 days’ written notice to the other party may terminate this Agreement. Upon termination under this provision, the Consultant will have to complete the 24 months terms and make full payment of the loan. will be paid for services rendered and reimbursable expenses until the effective date of termination. Force Majeure: Neither party shall be deemed in default under this agreement, nor shall it hold the other party responsible, for any cessation, interruption or delay in the performance of its obligations hereunder due to earthquake, flood, fire, storm, natural disaster, act of God, war, armed conflict, labor strike, lockout, or boycott, provided that the party relying on this section gives the other party prompt written notice thereof and takes all steps reasonably necessary under the circumstances to mitigate Page 5 of 6 the effects of the force majeure event. If this event extends for a period of more than 30 days, either party may immediately terminate this agreement. Subcontractor: The Consultant must not enter subcontracts for any of the services provided for in this Agreement without the express written consent of the City. Independent Contractor: At all times and for all purposes hereunder, the Consultant is an independent contractor and not an employee of the City of Brooklyn Center. No statement herein shall be construed to find the Consultant an employee of the City. Assignment: Neither party will assign this Agreement, nor any interest arising herein, without the written consent of the other party. Services Not Provided: No claim for services furnished by the Consultant not specifically provided for herein will be honored by the City. Publicity: The Consultant may work with the city to create public and promotional, marketing, engagement processes, and plans relating to the relationship set forth in this agreement. All outreach, marketing, and engagement processes by one party, which specifically mention the other party, shall be subject to prior review and approval, and shall include the City’s logo. Entire Agreement: The entire Agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof, as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement will be valid only when expressed in writing and duly signed by the parties unless otherwise provided herein. Compliance with Laws and Regulations: In providing services hereunder, the Consultant must abide by all statutes, ordinances, rules, and regulations pertaining to the provision of services to be provided. Any violation will constitute a material breach of this Agreement and entitle the City of Brooklyn Center to immediately terminate this Agreement. Equal Opportunity: During the performance of this contract, the Consultant must not discriminate against any employee or applicant for loan because of race, color, creed, religion, national origin, sex, marital status, status regarding public assistance, disability, or age. Waiver: Page 6 of 6 Any waiver by either party of a breach of any provisions of this Agreement will not affect, in any respect, the validity of the remainder of this Agreement. Governing Law: This Agreement will be controlled by the laws of the State of Minnesota. Whole Agreement: This Agreement embodies the entire Agreement between the parties including all prior understanding and agreements and may not be modified except in writing signed by all parties. Executed as of the day and year first written above. CITY OF BROOKLYN CENTER LIBERIAN BUSINESS ASSOCIATION BY: _________________________________ BY: ___________________________________ Name and Title Name and Title _____________________________________ _______________________________________ Signature Signature _____________________________________ _______________________________________ Date Date LIBA-DIASPORA POLICY GUIDELINES FOR MICRO-LOAN REVENUE GROWTH & FINANCIAL EDUCATION PROGRAM PURPOSE The purpose of this Policy Guideline is to provide Micro-loan up to $5,000.00 to support small and micro businesses in the City of Brooklyn Center to improve Revenue Growth and Financial Education. MICRO-LOAN PROGRAM GOALS The following goals have been established through the Micro-Loan up to $5,000.00: • Improve revenue generation • Improve cash flow • Improve financial management skills • Improve bookkeeping skills • Improve individual and business credit score • Provide branding and Marketing consulting QUALIFYING USE OF FUNDS Micro-Loan fund proceeds may be used for the following purposes: • Inventory acquisition/purchase of good/inventory improvement • Adverting/Marketing and branding cost • Financial management tools (i.e. QuickBooks, subscriptions etc.) • Credit Repair/improvement services • Payments of accountant/bookkeeping services • Access to Capital preparation (business proposals, consultation services, etc.) Loan proceeds may not be applied to: 2 • Work, which is in process or purchases made prior to the application approval. • Operating expenses (rent, payroll etc.) • New additions (new square footage) or new buildings • Labor for an unlicensed contractor • Any cost unrelated to financial education and revenue growth Qualifying services must begin or be purchased within 60 days of loan closing, unless an extension is requested and approved. APPLICANT ELIGIBILITY • Have annual revenue of less than $250,000. • Be a start-up, newly established, or growing or profit small business. • Be currently registered with the Minnesota Secretary of State • Be domiciled in the City of Brooklyn Center. • Must take a Financial Educational Class LOAN DETAILS The Authorities of the Project at LIBA-Diaspora will review each application, pursuant to the goals and policies set forth in this document, on a case-by-case basis. 1. Minimum Loan Amount. The minimum loan amount shall be $1,000. 2. Maximum Loan Amount. The maximum loan amount shall be $5,000. 3. Loan Terms. Businesses shall enter into a Loan Agreement with the LIBA- Diaspora prior to commencing work/services on the approved project. Businesses shall furnish invoices for work/services within program scope within 60 days of work/service completion. 4. Equity Participation. Not applicable to program requirements. 5. Loan Repayments. Repayment of loan funds is required within 12 months of loan closure and all funds must be used on eligible expenditures. 6. Loan Duration. Work for loan funded activities must commence within 180 days of the execution of the Loan Agreement, unless an extension is approved in writing 3 by the Loan Officer of LIBA-Diaspora, or the Loan Agreement shall expire, and loan funds shall be absorbed back into the program for reimbursement to the donor. APPLICATION PROCESS To be considered for a loan award, an applicant must submit a completed application to the LIBA-Diaspora with the following attachments: • business registration, business licenses (if applicable), • business latest tax returns (Form 1040 Schedule C, Form 1065, Form 1120, Form 941, etc.), • owner latest tax returns (if applicable), • business latest financial statements (if applicable), • owner financial information (if applicable), • business outstanding obligations, owner outstanding obligations (if applicable), etc. REVIEW GROUP The Project Team of LIBA-Diaspora will review applications to ensure they are complete and decide regarding if a business is eligible to move forward in the application process. PAYMENT OF LOAN PROCEEDS Loan payments shall be paid directly to Businesses. Businesses shall submit invoices to the LIBA-Diaspora Loan Officer/Representative for all eligible expenditures as identified in the program guidelines. LIBA shall in turn shall make a monthly lumpsum payment on behalf of the businesses to the City of Brooklyn Center. Invoices and other necessary information as related to the project costs shall be provided to the LIBA- Diaspora or its representative within 60 days of the disbursement of funds. LIBA- Diaspora may, in its sole discretion, allow proceeds to be released earlier than upon completion of work if used as a down payment for work. 4 DISCRIMINATION PROHIBITED All persons/businesses applying and receiving loan proceeds agree, by accepting said proceeds, to comply with all federal and state laws and related rules and regulations which prohibit discrimination. Generally, these laws and rules make it an unfair employment practice, expect when based on limited, statutory exception or a bona fide occupational qualification, for an employer to refuse to hire, discharge, or otherwise treat a person differently with respect to fire, compensation, terms, upgrading, conditions, facilities or privileges of employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, age, or sexual orientation; or in reprisal for objection to, or participating in the investigation or litigation of, alleged discrimination or for associating with disabled person(s) of a different race, color, creed, religion, sexual orientation or national origin.