HomeMy WebLinkAbout2020 05-04 CCP WorksessionCouncil/E D A Work
S ession
V I RT UA L - T his meeting will
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May 4, 2020
AGE NDA
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1.Call Meeting to Order - 6 p.m.
2.Roll Call
3.City Manager Update
4.Small B usiness S upport During E mergency Declaration
5.Emergency Funding S upport for L ocal Nonprofit Organizations
6.Adjourn
MEMOR ANDUM - C OUNCIL WOR K SESSION
DAT E:5/4/2020
TO :C ity C ouncil
F R O M:C urt Boganey, C ity Manager
T HR O UG H:N/A
BY:C urt Boganey, C ity Manager
S UBJ EC T:C ity Manager Update
Recommendation:
R eceive the comprehensive summary of C O VI D-19 activities and preliminary plans from the C ity Manager.
Dis cus s and provide feedbac k to the C ity Manager regarding imminent policy issues .
Background:
In my attac hment I will provide a summary of signific ant ac tivities of C ity s taff s inc e the G overnors' exec utive
order dec laring a peace time emergency in the S tate of Minnesota on March 13th and the Mayors' local
emergency dec laration adopted by C ity C ouncil R es olution on Marc h 17th 2020.
T he two declarations identified above effec tively implemented the P andemic P reparation P lan of the C ity of
Brooklyn C enter, granting the necessary authority to the C ity Manager to respond to this crisis affecting the
lives of Brooklyn C enter residents and busines s es in a most profound manner. T he c hallenges of C O VI D19
continue to evolve and manifes t itself in s o many critical ways . Unfortunately we are still in the early s tages of
the pandemic and we continue to res pond to this exis tential threat with the c reativity, flexibility, vigilance and
s acrific e. We believe this will remain true for the foreseeable future.
I can report that the s taff continues to demonstrate the awareness and commitment to meeting the challenge as
des cribed. T he attached report provides a brief snaps hot of the time effort and energy that staff has expended
to as s ure continuity of essential s ervic es to our residents and busines s es . Hopefully it will give you a general
s ense of what has taken plac e over the las t two months .
Most importantly, the report is intended to s erve as a platform from whic h we will launch our next stage of
efforts, as we return to a more normal process of governanc e. We will be seeking C ounc il guidance and
direction on critical is s ues going forward. S pec ifically we are s eeking feedback regarding fis cal conditions ,
budget planning, and other ongoing government activities .
We do not nec es s arily expec t a final c onsens us on thes e issues but we do hope to disc ern what questions you
need answered in order to move forward in a few c ritic al polic y areas . i.e. c urrent and future budget planning,
development planning, the role of the city in addres s ing emerging c ommunity needs
I look forward to our dialogue, your feedbac k and direction.
Policy Issues:
1. W hat additional information does the C ouncil require regarding C O VI D-19 staff ac tivities?
2. W hat additional questions or c onc erns do you have regarding the 2020 budget?
3. W hat ques tions or concerns do you have as we start developing the plans for the 2021 budget?
4.W hat questions or c onc erns do you have regarding pending or s cheduled development ac tivities?
AT TAC HME N T S:
Desc ription Upload Date Type
C O VI D-Updatr report 4/29/2020 C over Memo
R eport 5/1/2020 Bac kup Material
Mes s age to Employees 5/4/2020 Bac kup Material
The COVID-19 report will be submitted
not later than Friday May 1, 2020
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City Council Work Session
May 4th 2020- COVID 19 Update
The purpose of this report is to provide the City Council with a brief overview of the work that staff has
been engaged in since approximately March 11th when the WHO described COVID 19 as a pandemic and
triggered a cascade of critical events to follow.
I also want to welcome you back to the table so that together we can move the City forward in a
direction that is most appropriately guided by Council policy. I will share our best guess as to what some
of the immediate challenges are before us. I will seek your insight and directions so together we can
chart the longer term future for this organization and the community.
I don’t expect we will accomplish most of this in a single work session. I am hopeful that we can plant
seeds and start building a foundation for future work, deliberation and action.
As you can imagine since March 11th nearly nothing has been status quo. In fact change has been the
only constant it seems. This crisis has been a challenge. It has been stressful and t has been rewarding.
Staff has demonstrated capacity, capability and creativity. Staff has shown resilience and commitment
under the most trying personal and professional circumstances. I could not be more proud given the
magnitude of change, stress and fear that we have all endured
Below I have listed what I believe are among the most significant policy actions taken in terms of their
effect on the organization. Likewise these polices have also had a dramatic effect on the community in
general and disproportionately on some communities within the City. As a result staff has been
challenged to maintain continuity of services in a very new environment while anticipating and reacting
to community challenges heretofore unseen.
Critical governing policies regarding COVID-19
March 11, 2020 The Health Organization characterizes COVID-19 as a pandemic.
March 13th 2020 President Trump declares a National State of Emergency.
March 13th 2020 Governor Waltz issues executive order 20-01 declaring a peacetime state of emergency
for the State of Minnesota.
March 15th 2020 Governor Waltz issues executive order 20-02 close schools to plan for safe educational
environment
March 16th 2020 Governor Waltz issues executive order 20-04 providing temporary closure of bars,
restaurants and other places of public accommodation.
March 17th Mayor Elliot declares and the Council confirms a local emergency to continue in effect until
the executive order 20-01 is terminated.
March 25th Governor Waltz issues executive order 20-18 continuing closure of bars, restaurants and
other places of public accommodation until May 1, 2020
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March 25th Governor Waltz issued executive order 2020 directing Minnesotans to stay at home and
providing exceptions for essential critical infrastructure workforce.
March 26th Mayor Elliott issues Mayoral Emergency Proclamation-2020-1 ordering employees not to
report to their offices or work spaces within City buildings and to work from home.
March 29th Mayor Elliott issues Mayoral Emergency Proclamation 2020-2 delaying construction of the
Interstate and Grandview street improvement and utility projects.
April 10th the City Council Adopted resolution 2020-37rescinding Mayoral Emergency Proclamation No.
20-02 and allowing the Interstate and Grandview construction projects to proceed with mitigation
measures.
On April 13th Governor Waltz issues executive order 20-35 extending the peacetime emergency and
proving for a shelter in place order with exceptions for Critical Sector infrastructure until May 4th 2020
On April 30th Governor Waltz issues executive order 20-48 extending the stay at home order through
Sunday May 17th 2020 while expanding exceptions to include and certain non-critical sector business
with conditions.
Each of the policies above had its own profound effect on City services and operations. In most cases
they created both challenges and opportunities for staff. In the next section I will share some of the
steps taken by staff to respond.
The Operational Response
After several days of working with the leadership team led by newly appointed Emergency Manager
Todd Berg, on March 16, 2020, a message was sent to all City employees that described how we would
lead and make value based decisions in response to this crisis. (Attached). Critical to our process was to
clarifying our primary goal of limiting loss of life by flattening the curve of infections. We would be
guided by the principles of safety, responsiveness, shared information, truthfulness, empowerment and
action! We put into effect several policies around science based guidance, social distancing, working
from home, travel restrictions, paid leave, return to work protocol, public building closures, and
cancellation of certain activities. This administrative policy became the foundation for all succeeding
actions.
At the operational level each department assessed what it would take to continue providing quality
essential public services in the safest manner possible as we expanded our capacity to shift employees
from central buildings to working from home.
Administration We have provided multiple weekly staff communications to keep employees informed
on COVID-19 related health and safety tips. Staff also receives regular COVID-19 and City actions
updates. On Tuesdays staff receives a COVID-19 health and safety update and on Thursday they receive
a COVID-19 Situation Update. The Directors and I have produced our first video COVID-19 City Update,
which was sent to all staff with internet access.
We managed to provide technology (i.e. computers, network access, WebEx accounts, etc.) that allows
the majority of employees the ability to work remotely from home. The technology permits leadership
and department staff to communicate via WebEx on daily basis.
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Staff remains current of the ever changing federal and state legislative rules governing employment. We
implemented the mandatory Special Extended Emergency Federal Sick Leave Pay and Family Medical
Leave Act extension legislation on April1, 2020. Unlike the private sector there is no Federal
reimbursement for Cities that are mandated to provide this benefit. This benefit replaced the initial
paid leave plan initiated in March, which assured staff that they would not miss a paycheck. However,
most have exhausted both the City and the Federal emergency leave plans. Subsequently and
regretfully some employees were laid off.
Staff has also provided regular communications related to COVID-19 resources via the City’s website and
social media. Engagement staff has been the lead in our outreach efforts to residents living in the
reconstruction neighborhoods who have expressed health related concerns.
CARS The Community Center closed at the earliest stages of the pandemic, in response to the Governors
Order regarding social distancing. Similarly, the Earle Brown Heritage Center was also closed in the
middle of March, following guidance from the Centers for Disease Control. All events have been
canceled and both facilities remained closed through the middle of May. Staff is currently developing
policies and procedures, along with identifying physical building improvements that will be necessary to
keep staff and patrons safe when we are allowed to reopen. All part-time staff and several full-time
employees have been laid off due to a lack of available productive work.
All spring recreation programs and activities have been cancelled and we are planning for limitations
related to summer programming. All staff are working remotely as we plan for this “new normal”. We
are currently conducting a customer survey related to recreation resource needs and virtual
programming preferences. Our goal is to be prepared when the governor authorizes some greater level
of protected interaction. All part-time recreational staff have been laid off due to the extended nature
of the shutdown
Based upon a more recent Governors Order, we have been able to reopen Centerbrook golf course, with
significant social distancing protocols in place. Currently, the regulations do not allow for the sale of
food/beverage or merchandise. Given the good weather of late and the desire for physical activity, the
course has been operating at capacity, despite the limitations.
Community Development The department continues to operate with some reduced services. Most staff
are working remotely from home with the exception of essential in-field inspection services. Building
permits and land use applications continue to be reviewed and processed remotely, vacant properties
are monitored, and code enforcement complaints are being responded to. Proactive code enforcement
activities have been reduced as a result of reduced inspections staff working in the field. The Rental
Licensing program has been placed on a temporary hold in order to avoid unnecessary interior
inspections of occupied property. Building permit inspections are considered an essential service and
continue to take place, as do code enforcement inspections. Exterior inspections are conducted with
some modifications. Inspectors wear protective equipment, practice social distancing during inspections,
and conduct decontamination protocol after each inspection. Interior building permit inspections have
continued through the adoption of virtual inspections, which has received positive feedback from
residents and has proven to be effective.
A good deal of effort has been put into helping local businesses access assistance during the current
crisis. Staff has created a webpage dedicated to business resources, which includes a business survey to
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track the affects the pandemic is having on the local business community. A business resource flier was
created and mailed out to every business eligible for DEED funding through the state’s stimulus funding.
Local businesses were then contacted directly and staff made available to assist them with applying for
funds. The EDA contracted with local agencies to provide additional technical assistance to local
businesses. These contracts included assistance for up to 80 businesses as well as tracking to understand
where local businesses may not be served by existing state and federal programs. Staff has also been
working directly with Hennepin County to fund an emergency rental assistance program through CEAP
utilizing federal CDBG funds that were allocated as part of the CARES Act. These funds have now been
allocated and CEAP will begin accepting applications from residents in need of rental assistance
beginning May 1.
Fire and Emergency Management: We opened up the Emergency Operations Center on a virtual basis.
After conversations with North Memorial, we established a two person, 24 hour duty crew 7 days a
week. This change added 12 hours to our original duty crew shifts. This change enabled us to reduce
the number of ‘all calls’ members needed to respond to the station for and allowed us to operate
performing social distancing and to lessen the threat of having much of our staff infected by eliminating
large groups responding when not needed. We also flexed our Fire Inspector to cover one of the night
shifts since fire inspections and public education had to stop. Our Fire Administrative Coordinator has
shifted to working from home 4 of 5 days a week. Our Deputy Fire Chief has taken most of the fire
department operations over while almost all of the Chiefs time has been spent as the Emergency
Manager and dealing with COVID-19. The Chief remains in contact with other fire chiefs, emergency
managers and other key people at many different levels to learn and adapt ways Brooklyn Center can
respond to COVID-19. All four of our full time staff are working at least 40 hours a week. We also
transitioned all of our training to virtual training that can be performed from home or while on
duty. Another change we made after the discussions with North Memorial was to reduce some of our
medical responses to non-life threatening medical calls for service, to further reduce risks to first
responders and maintain their health for peak demands. We made adjustments to how we delivered our
medical treatments by performing doorway interviews with all first responders and others equipped
with the required PPE. Early on the Fire Chief organized and maintains a city wide PPE inventory list and
makes purchased to enable all city staff, PPE to perform their job the ability to receive the necessary PPE
needed. The Chief also provides an overall situational report to each of the department managers 3
time a week. Because of these changes, we have only had one staff quarantined so far and that was
because of travel very early in the pandemic that staff never showed symptoms and is currently back
responding.
Police and Fire Departments combined, while responding to community isolation issues, and began
participating in birthday drive up visits for children under the age of 12. This is a huge hit with the kids
and the neighbors. We also collected 280 cloth masks as part of the Governor’s mask drive. We
distributed them to 5 congregate care facilities in Brooklyn Center for their residents to use. As you are
aware COVID-19 is disproportionately effecting residents in congregate care facilities, so I started a
weekly conversation with each of our three large facilities to check-in with them to discuss their needs
and see what we could do to help. We have continued providing the valued service our residents have
grown to expect from the Brooklyn Center Fire Department.
Fiscal Services The liquor stores have been closed since March 17, even though private liquor stores
continued to operate under the essential critical workforce designation of the Governors executive
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order. We decided closing our stores provided our employees with the greatest degree of safety. On
April 27th we implemented a curb side pickup operation at store number one. Several part-time
employees have been laid off due to insufficient work availability. We are reassessing our ability to
reopen the store in a manner that protects the safety of employees and customers as many of our
private and municipal competitors have done.
In the midst of the pandemic, with the entire staff working almost exclusively from home we have been
able to complete our 2019 audit and we currently work on finalizing our Comprehensive Annual
Financial Report. With the help of great IT support and systems fiscal and support service employees
didn’t skip a beat while transitioning to a remote work environment. Staff collaborated on procedure
changes and have adapted well to the hurdles that present themselves with working remotely. We
continue to fully support all departments with bill payment and day-to-day financial
reporting. Throughout this time we have come together as a team and are committed to providing the
highest level of service to both our internal and external customers.
Police Because of the available protections in the front lobby the Police Department remains open M-F 8
a.m.-4:30 p.m. We modified medical call protocols to reduce exposure including the use of PPE being
made mandatory. The use of PPE by officers on routine calls for service has evolved and continues to be
updated to coincide with CDC recommendations. We work in close partnership with North ambulance
service to decrease redundant first responder’s potential exposures. Even though two officers have
tested positive for COVID-19 and been quarantined, we have been able to maintain a full complement of
staffing. We have moved some officers from special duties to assure adequate patrol response which
includes our school resource officer. We have modified our practices to limit unnecessary contact in
person and we have worked with the County to limit jail intake.
As of today we have not had to issue a single citation for a Stay at Home violation. The department has
received complaints involving possible violations of the order by private residences, retail businesses,
and a church. Each incident was resolved with education and sound reasoning. As Governor’s Orders are
broadcast we use a number of State resources to clarify and pass those updates along to our businesses
as best as we can.
Public Works Most administrative staff are working from home or remotely. Maintenance staff have
been working two day shifts to limit the potential for internal exposure and resulting workforce
impacts. Road construction is underway following a suspension of work to ensure mitigation measure
could be put in place for individuals with compromised health. As weather conditions have changed we
have adjusted our staffing model to address ever changing maintenance needs. Now that we are in the
growing season we expect most, if not all, employees will return to work, however, employees are
expected to adhere to social distancing standards, to work alone to the greatest extent possible, to
follow the Center for Disease Control and Prevention’s COVID 19 minimum protective measures and we
will provide staff with appropriate PPE. To limit the potential for cross-departmental infection, all
vehicles and equipment serviced in Central Garage will be sanitized before and after servicing using a
recently purchased sanitizing fogger that, when used correctly, has the potential to eliminate any COVID
19 virus residue.
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Community
As alluded to earlier this pandemic is particularly challenging because the effects on the community
have been so severe and immediate. It has imposed the additional burden of responding to a
community in crisis while the organization itself has been adjusting to the organizational crisis
simultaneously.
Without a doubt we are better equipped and resourced to handle the organizational needs yet the
community changing needs are critical and do require a governmental response. During this period one
area we have had some success has been as a conduit of information; by posting resource information
on our website and communicating information though our partners in the community. I would like
thank each Council member who has shared information from your contacts. This support has been
invaluable and has helped us significantly as we serve the role of reliable community information source.
We have communicated all types of information from mental health, financial health, physical health or
business health. This is a role that we continue to play and where we hope to improve and expand our
capabilities.
Mayoral Declaration 2020-1 required specific governmental response to the impending crisis. It required
that we provide $30,000 to three food shelves and staff was encouraged to support residents, workforce
and visitors including the elderly and other vulnerable populations within the community.
I am pleased to report that we were able to distribute all of the allocated funds fairly quickly. Staff
provided vehicles and staff time in support of delivery requested by CAPI. We are receiving regular
reports regarding the distribution and residents served by each organization.
We have been engaged with all of the long term care and recently provided masks that were requested.
We have been in regular contact with each of the School Districts but our involvement with the BC
School District has been most significant. We are considering a couple projects to help bridge the
remote learning gap. Many of the students had no access to mobile equipment or Wi-Fi. The district has
been very successful in closing this gap through donations and fund raising. We are offering to donate
several obsolete but operation portable computers to help meet some of the continuing needs. We are
also partnering with the school on a share Wi-Fi project at the Crest Apartments. The goal is that this
pilot might be replicated in other apartments throughout the community where Wi-Fi access is not a
convenience but a necessity for survival. We are also exploring providing public access to City Wi-Fi
using the parking lots of public building such as EBHC and perhaps City Hall.
As described in the report of the Community Development Director the City has been very engaged with
various non- profit partners helping respond to the severe economic challenges of local small
businesses. We have been a source of information to the business community and we have helped
provide technical assistant and access to the State and Federal Funds available. Most importantly we
have been identifying gaps unique to our local businesses thus the proposed micro-forgivable loan
proposal.
The Resolution Rescinding Mayoral Emergency Proclamation No 2020-02 and Allowing The Interstate
And Grandview Street Reconstruction Projects To Proceed With Mitigation Measures allowed each of
the two contractors to proceed in accordance with the settlement agreement which provided for certain
mitigation measures. After several mailings to each household and the delivery of door hangers to each
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property we have been contacted by 17 property owners who expressed some degree of health concern
or condition. To date we have identified six properties where the owner indicated they might need a
standalone or inline filter installed in their home. Two of the six declined the offer of a HEPA filter. The
City has engaged a contractor who is working with one property owner to schedule an in-line
installation. We are following up with three of the property owners with the plan to have stand a stand-
alone filter provided for use during the construction period. Nearly all of the 17 respondents thanked
the City for making contact and appreciate the attention being given. We will stay in contact with each
of this property owners throughout the construction process to assure that all is going as expected.
In addition to customer surveys the Brooklyn Bridge Alliance conducted a survey early in the pandemic
to gauge how youth were being affected by the pandemic. While most of the youth were from Brooklyn
Park who commissioned the survey BC students were include in the survey and a significant number of
the youth were BC residents. The results provided insight that will be useful going forward. We expect
that additional surveys will be conducted over time to better understand the needs and anxiety of our
residents. We are developing an “innovation team” process that we hope deploy fairly soon. The charge
of this group will be to gather data and information to inform our ability to reimagine government
service during the new normal. While we hope that the threat of the pandemic will continue to decline
over the next several months, we assume some of the impacts on residents and businesses will be felt
for an extended period of time. The purpose of this team will be to identify the needs, risks and
opportunities so that we can be as responsive as possible in the new normal.
Planning For the Future
Even though there is some hope that Federal and State legislation will be adopted to provide Cities with
financial relief. As prudent officials we have to plan for the worst while we hope for the best. Over the
last several weeks the Finance Director has been tracking costs and revenue trends.
EBHC Based on what we know today, it is the Earle Brown Heritage that is confronted with the most
significant financial challenges. Due the Governors order limiting group sizes and distancing
requirements virtually all contracts from Mid-March through June have been cancelled. The value of
these contracts are estimated at $600,000. We are now having contracts cancelled well beyond June.
We previously laid off part-time employees and most recently we laid of several full time employees.
Unless conditions change more lay-offs are likely. The positive news is that our costs are largely limited
to management, maintenance and future sales activity. In addition the EBHC has a fairly healthy fund
balance which will sustain operations for next several months before operating capital needs become a
serious problem. Having said that; this is a fund and operation that we must monitor closely to avoid
serious financial problems.
Liquor The liquor operation is deemed to be an essential service and virtually all private stores have
been having banner revenue sales. Like most municipal stores we closed our store when we closed
other City buildings to assure employee safety. As a result we laid off several part-time employees in
recent weeks and we opened our curb side service this week. Sales are slowly recovering and staff is
somewhat optimistic. There is no doubt that we operate at a competitive disadvantage by not offering
in-store service. If we continue as is it is fair to assume the liquor store will be unable to make any
contribution to the Capital Fund this year. The budgeted transfer was $150,000 for 2020. The fact that
we have had the additional cost of paying the final six months lease at our previous location only
exacerbate the current situation. Having said that we believe it may be possible to finish the year with
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only a small loss. Of course this assumes that we will open the store to general public once we have all
of the necessary PPE in place.
Golf Centerbrook golf course just opened this week and so far the sales have been encouraging. Of
course the weather will ultimately determine how financially successful we will be. There is no reason
to assume the golf course will break even this year. Our current goal is to limit the shortfall and required
general fund subsidy. Perhaps the greatest benefit to the City is that it allow us to offer some type of
outdoor recreational service to the community while the social distancing standards remain in place.
Because it is the only type of City sponsored recreation allowed at this time we will put forth a major
effort to promote it to our residents and especially to our youth.
General Fund the major challenges of the General Fund are in a few basic areas. Property Taxes and
Lodging Taxes. For a number of reasons we expect property taxes to underperform in 2020. We
estimate the revenue shortfall in property taxes could be 10% or more. It was 7 % during the height the
2007 great recession. A 10% delinquency would translate into a $1.8 million shortfall. We believe
lodging tax payments could underperform by 80%. An 80% drop would result in an additional $490,000
General Fund shortfall. We anticipate a $160,000 license and permit shortfall with a net $40,000
shortfall in Community Center revenue. All combined our shortfall could reach $2.5 million. It is my hope
that this is a worst case estimate but we won’t know until we receive our first tax payment due in June.
On the positive side, the City has a healthy fund balance equal to 52% of the operating budget. We also
have additional sources of invested funds available that we could internally borrow if needed. It also
true that delinquent taxes are likely to be paid over time.
The largest unknown is if any Federal assistance will be provided for Cities. Because there are so many
unknown facts at the staff level we are actively reducing costs by delaying or eliminating expenditures.
We developing contingency plans.
If we knew that this would only be a 2020 problem there might be a number of temporary fixes to
consider. Unfortunately we don’t know how long the recovery period will be. So ultimately the solutions
will likely require a combination short and long term approaches.
Other Funding Options
Recent federal legislation has proposed that cities may have more flexibility regarding the usage of
CDBG funding. This may create opportunities to think more creatively about community public service
needs which may have more significance than housing rehabilitation for example. The State and Federal
Government continue to ways to fund programs to help preserve the economy and jobs. There may be
additional resources available to the City as we adapt to the new normal.
The Governor has expressed strong support for the preservation of LGA and a major bonding bill. Each
of these positions may offer benefits to the City of Brooklyn Center.
Conclusion
I know that I have provided you with a lot of background information but my purpose is not to simply
review history. I am most interested this evening in a dialogue with you. As staff we need to your
perspective and direction as a Council. These are few of the questions that I would like for you to
consider along with any others you may have. These question will help guide future activity of the staff.
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Our goal going forward is to make sure that we are focusing our efforts on the outcomes you find most
important.
• What additional do you require regarding COVID-19 activities of the staff?
• What additional questions or concerns do you have regarding the current budget?
• What questions or concerns do you have regarding the 2021 budget process?
• What questions or concerns do you have regarding development or other pending city business?
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Message to Employees COVID-19
03/16/20
City Employees,
On March 13th Governor Waltz issued Executive Order 20-01 Declaring a
peacetime Emergency and Coordinating Minnesota’s Strategy to Protect
Minnesotan’s from COVID-19. March 15 he issued Emergency Executive Order
20-02 Authorizing and Directing the Commissioner of Education to Temporarily
Close Schools to Plan for a Safe Educational Environment.
Once Order 20-01 was made the City of Brooklyn Center Pandemic Plan was
activated. I have attached a copy of the plan for your information. That general
plan was adopted in 2009; however, because each pandemic is unique there will a
few amendments required to address our current circumstances. These minor
modifications will be made in the next few days and copies will be provided to
you.
Since Friday, several staff has been meeting to identify and address specific
questions that require additional clarification to implement the plan effectively.
I will share those directives and clarifications with you in this memo.
First we all realize that the situation on the ground is very fluid and we will need
to adjust our decision accordingly. We commit to keeping you informed as the
circumstances require changes to our policies, practices or protocols.
One of the first decisions made has been to establish “Guiding Principles” that we
will adhere to in regards to all COVID-19 decision making. While actions may
change our guiding principles must remain constant.
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COVID-19 Guiding Principles
We can flatten the curve if we act now!
1. We will err on the side of protecting employee health and safety!
2. We will err on the side of protecting the health and safety those we serve!
3. We will be proactive and responsive!
4. We will keep everyone informed!
5. We will be transparent, honest and factual!
6. We will empower employees to act in the health and safety interests of our
team and those that we serve!
7. Now is the time to act!
CDC and MDH Guidance
In our efforts to make decisions based on facts we will rely on the Center for
Disease Control, the Minnesota Department of Health and science based agencies
to develop policy and make health related decisions. We will rely on this
guidance to provide consistency, equitable application and validity for our
actions. We will share the source of information used to formulate a basis for
decision making.
Social Distancing and Working from Home
We are asking that we all take the appropriate steps to assure that appropriate
social distancing practices are employed. A copy of those recommended practices
are attached. Every Department Director is encouraged to identify and
implement pragmatic opportunities to allow employees to work from home.
Travel Restrictions Policy
If a pandemic state of emergency is declared all out-of-city work travel
must be approved by a supervisor. The policy relates to the typical day to
day job related activity. This authorization may be provided by a general
directive for normal work duties.
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If a pandemic state of emergency is declared the City Manager will suspend
city travel and training. This policy refers to travel outside of the City or
State that is of non- daily routine or occasional travel for education, staff
development and similar type of purposes. As of today such travel is
suspended.
Return to Work Policy
If an employee is absent from work due to personal travel or other reasons, the
decision to return to work will be based on the guidance of the CDC. The CDC
guidelines prescribe certain conditions where an employee may not return for a
specific period of time. The CDC also indicates when a return to work presents
little to no risk. Our actions will be based on these guidelines to assure that our
decisions are fact based and consistent throughout the organization.
Temporary Paid Leave Policy
Employees approved to work from home will earn their normal wages.
Employee calling in sick or unable to work due to required isolation/quarantine
may use any accrued time available.
Employees with insufficient accrued time will be allowed to accrue a negative
COVID-19 balance and will be paid their normal wages. This COVID-19 negative
balance will be credited to your sick time balance and will be positively accrued
over time after returning to work. This provision will be adapted to include
regular part-time employee. Specific details regarding this policy have yet to be
developed.
This COVID-19 negative balance policy will apply to both employees who call in
sick and employees who are directed not to work due to service reductions.
4
Public Exposure Policy
Each Department shall take steps to reduce or eliminate discretionary face to face
contact with the general public. Employees who are required to have face to face
contact with the general public shall practice social distancing methods and
employees shall be equipped with appropriate Personal Protective Equipment. In
addition hygiene and cleaning practices shall be followed. In addition remote
work and flexible scheduling shall be encouraged as a means to avoid face to face
interactions with the general public.
Effective Wednesday March 18, all public buildings with the exception of the
police department will be closed to the general public. Police counter service
will be open for police related business exclusively. The other buildings will
remain closed until April 1st 2020 or until further notice.
Previous Actions Taken
As of Friday, March 13, the Community Center has closed and will be closed
until further notice.
The Centerbrook Golf Open House will be rescheduled, an update will be
provided by April 3.
Earle Brown Heritage Center (EBHC) - all meetings and events have been
cancelled for the next two weeks.
This is the first of many updates that I promise to provide you. Staff will continue
to work on additional policies and decisions that will need to be made as
conditions evolve. Soon we will be asking you to participate in survey so that we
will use to understand how you are being challenged personally and
professionally by this event. We will use this information to improve our decision
making and assure that we are paying close attention to your needs.
I thank each of you for your desire to provide service to the people we serve in a
professional and responsive manner.
My commitment is to do all that I can to make sure you are able to do your work
in safe and protected environment.
Please keep your Supervisors informed of any needs that you may require in
doing your job effectively and safely.
5
Resources
For more updates on (COVID-19), please use the following resources:
o Disease Control and Prevention (CDC) –
https://www.cdc.gov/coronavirus/2019-ncov/index.html
o Minnesota Department of Health (MDH) –
https://www.health.state.mn.us/diseases/coronavirus/index.html
o Hennepin County -
https://www.hennepin.us/residents/emergencies/covid-19
o The state of Minnesota has set up a hotline for general questions
about coronavirus at 651-201-3920.
MEMOR ANDUM - C OUNCIL WOR K SESSION
DAT E:5/4/2020
TO :C ity C ouncil
F R O M:C urt Boganey, C ity Manager
T HR O UG H:N/A
BY:Meg Beekman, C ommunity Development Director
S UBJ EC T:S mall Bus iness S upport During Emergenc y Declaration
Background:
O n March 13, 2020, G overnor Walz issued Executive O rder 20-01 declaring a state of peac etime emergency to
addres s the C O VI D-19 pandemic in Minnesota. O n March 16, G overnor Walz issued Executive O rder 20-04
ordering the closure of bars , res taurants , and other plac es of public ac commodation offering food and/or
beverage for on-premise cons umption. T he O rder als o included the closure of s pas , beauty s hops, nail salons ,
tattoo s hops, health c lubs, indoor fitness centers, art and mus ic s tudios , and recreational or entertainment
facilities . R es taurants were allowed to c ontinue to provide delivery, drive-thru, and take-out ac commodations.
O n March 25, G overnor Walz issued Executive O rders 20-18, extending and c larifying Exec utive O rder 20-04,
and als o issued Executive O rder 20-20 is s uing a S tay-at-Home order to all Minnes otan's except to engage in
exempt ac tivities and critical s ector work as desc ribed in the O rder and further clarified by DEED through their
C ritic al S ec tor C larification and Definitions document: https ://mn.gov/deed/as s ets/critical-worker-definitions -
AC C _tc m1045-425195.pdf.
W hile it is es timated by DEED that 82% of working Minnes otan's fall within a critical s ector and c an therefore
continue to work, the Executive O rder's have had a dramatic affect of the state's unemployment rate. T he
affect of the S tay-at-Home order has been mos t es pecially felt by small busines s es , which have had to adapt to
changing operating requirements with limited resources and face barriers to ac cessing s tate and federal s timulus
programs to provide muc h needed as s is tance.
R ecently the National F ederation of Independent Busines s es (NF I B) releas ed the res ults of a survey of its
busines s es . T he NF I B which represents thousands of s mall bus iness across the nation reports that bus iness
optimism, unsurpris ingly, decreased dramatic ally in Marc h. O f the 627 busines s es surveyed, 35% expres s ed
they weren’t sure they’d be able to operate their bus iness for more than one to two months in the current
economic climate.
S tate and F ederal Programs
Both the F ederal S mall Busines s Administration (S BA) and the Minnesota Department of Employment and
Economic Development (DEED) have rolled out financial aid programs designed to as s is t busines s es affec ted
by the C O VI D-19 crisis. As ide from the regular s mall bus iness s upport programs offered by thes e agenc ies ,
there are three new programs that are the primary focus of the state and federal stimulus funds:
T he P aycheck P rotection P rogram (P P P ): an S B A program available to small businesses including sole
proprietors, self-employed individuals and independent contractors meant to cover payroll, rent/mortgage,
utilities, and other immediate payments. Loans are applied for and disbursed through private lenders and
backed by the S B A. T he loan is forgivable, less the 1% interest rate, if a business can demonstrate that
75% of the loan proceeds were used to cover eligible expenses over an 8-week period.
T he Economic I njury Disaster Loan (E I D L): an S B A program available to small business that including
sole proprietors, self-employed individuals, and independent contractors that can demonstrate economic loss
as a result of the C O VI D-19 outbreak. Loans are available directly through the S B A for up to $2 million
and payments are deferred up to one year and can be paid back over a term up to 30 years. Businesses that
apply for E I D L can also request an advance of funds up to $10,000 which will not have to be paid back.
T he S mall B usiness E mergency Loan Fund: a D E E D program available to businesses specifically impacted
by the G overnor Executive Order 20-04 and 20-18, which closed restaurants, bars, beauty salons, health
clubs, entertainment venues, and other places of public accommodation. E ligible businesses can apply for an
up to $35,000 loan at 0% interest that may be partially forgiven. Businesses considered non-essential under
E xecutive O rder 20-20, but not identified under Executive Order 20-04 or 20-18 are not eligible.
T he P P P and EI DL programs were depleted of funds after just 13 days. O n April 24 the P res ident signed a bill
authorizing an additional $320 billion of funding for these programs, whic h reopened on April 27.
Business Needs in Brooklyn Center
S inc e March C ity s taff has been working hard to support res idents and bus inesses as they navigate the
C O VI D-19 outbreak and c ris is . In an effort to support businesses, staff has implemented a multi-pronged
approach aimed at understanding, communicating, providing assistance, and exploring direct funding opportunities.
T his memo details how staff have been working to support businesses as well as some ideas that have been
considered to provide ongoing assistance during the crisis and beyond.
Staff have been in communication with business owners as well as business resource providers in order to
understand the needs of small businesses in the community. Staff have also been tracking state and federal
programs closely to understand the available funding as well as where it may fall short of supporting local business
needs.
D isseminating Information
O ne of the top priorities during this time has been to get information out to the loc al bus iness community and
thos e agenc ies working with them about res ourc es available to provide support. To that end, s taff have c reated
a bus iness res ourc e webs ite with information and links to state, federal and other programs available to support
s mall bus inesses. T he website includes a s mall bus iness s urvey intended to provide a portal for busines s
owners to share their contac t information with the C ity to continue to get updates on available res ourc es .
S taff created a flier whic h highlighted resources available and has s ent that out to local busines s es as well.
Every bus iness in the c ommunity that is eligible for DEED funding has been c ontacted and made aware of
available programs. F urther, the Economic Development C oordinator has made himself available to as s is t
busines s es with gathering doc uments and filling out applications to s tate and federal programs if needed.
S taff have also been partic ipating in weekly communic ation with DEED and S BA staff, regional bus iness
res ourc e c enters such as Afric an Development C enter (ADC ), Northside Economic O pportunity Network
(NEO N), and Neighborhood Development C enter (NDC ) in order to unders tand how the state and federal
programs are working for small busines s es . S taff has als o been in c ommunication with local busines s resource
agencies s uc h as AC ER and Liberian Busines s As s ociation (LiBA) to hear about loc al need and where
existing programs may be falling short.
P roviding Technical Assistance
Helping bus inesses unders tand what programs and resources are available is perhaps the most important
s ervic e the C ity c an provide at this time. T here are currently s everal places a bus iness could turn to rec eive
tec hnical as s is tance when applying for loans .
Community organizations focused on businesses such as AC E R or L I B A: these organizations can help a
business get ready to apply for a loan by assisting them with the gathering of documents, understanding the
different loan options, and determining eligibility
Economic Development Authority (E D A) staff: staff continues to field calls from businesses and
connecting them to resources, other technical assistance providers, and lenders, as well as provide direct
assistance when needed.
B usiness Resource C enters: organizations such as the Metropolitan Consortium of Community Developers
(M C C D) which runs the Open to B usiness program are also D E E D and S B A qualified lenders. AD C ,
N E O N , WomenVenture, N D C, and M E D A are also available in varying capacities to support small
businesses, provide technical assistance, and assist with applying to various financing programs.
S BA and DEED Q ualified Lenders : bus inesses must apply for the S BA P P P loan through their bank or
another qualified lender. T hes e lenders will provide technic al assistanc e for a spec ific loan and can help a
busines s determine which loan is bes t for them bas ed on bus iness type and eligibility.
In talking with local and regional business resource centers, it is clear that there is a gap in the capacity for these
organizations to offer the technical assistance needed as they work to process through the significant demand from
small businesses. S taff continues to help businesses and connect them to property resources but businesses,
particularly very small businesses that may be unbanked or do not have the technical ability to pull together
necessary documents for applications will slip through the cracks. In order to address this need, the C ity entered
into direct service contracts with L iB A and Jude N nadi, E xecutive D irector of the Minnesota African C oalition
and C AN D O, I nc. T he purpose of these contracts is to provide direct technical assistance to Brooklyn C enter
small businesses and to gather data on where state and federal programs may not be meeting local needs.
T he C ity is also exploring a similar contract with AC E R , and is working through the details of the services that
would be provided.
Brooklyn Center S mall Business Emergency F orgivable Loan P rogram
Des pite the available S tate and F ederal programs aimed at as s is ting busines s es there will likely still be
busines s es that are not able to acc es s assistanc e. T here are s everal reas ons for the barriers that exis t to
acc es s ing state and federal programs for s mall and mic ro bus inesses, particularly female and minority-owned
busines s es , which make up a large percentage of Brooklyn C enter s mall bus inesses. T he firs t round of federal
funds were depleted within 13 days of being released. Banks and the S BA were overwhelmed with
applications. As a res ult, busines s es that already had strong relationships with their banks and had their
documents in order were firs t in line to receive funding.
F urther S BA funds are jus t now beginning to be releas ed, and s ome applic ations c ontinue to remain pending.
In the meantime, busines s owners are fac ed with immediate expenses and a high degree of uncertainty as to
whether their applications will be approved or when.
To help thos e bus inesses facing the greatest barriers to acc es s ing state and federal funds, staff have drafted an
emergency deferred forgivable loan program whic h would provide emergenc y loans up to $3,000 at 0% interest
with payments deferred for one year. T his program is intended to provide immediate emergency relief to as s is t
with s hort term expenses. All applic ants would be eligible to apply for forgiveness at the end of the deferral
period. Allowable us es for funds would inc lude rent/mortgage payments , payroll and employee benefits ,
acc ounts payable, vendor payments, and operating c as h.
Eligibility for forgivenes s would be based upon demons tration that the funds were used on eligible expens es
and that the bus iness owner rec eived tec hnical as s is tance from a local or regional busines s resource center. P art
of the purpose of the program is to get needed tec hnical as s is tance to busines s owners in order to ens ure they
have the res ourc es they need to be s uc cessful through this period of time and into the future. S taff will work
with loan recipients to identify their needs and direc t them to resources that will ensure they get the c apacity
building and tec hnical as s is tance they may need.
S taff is proposing $150,000 to fund the program. T his would allow approximately 50 bus inesses to be served.
If demand far outpac es funding, the EDA could c onsider additional funding to the program at a later date. T he
funds for this program would come from the Brooklyn C enter Economic Development Authority fund. As
thes e are not budgeted funds, they would come directly out of cash reserves . T he c urrent unres erved fund
balanc e of the EDA fund is $1.597 million.
E li gi bi li ty
S taff have attempted to c reate a program with as few barriers for eligibility as possible, while focus ed on
s erving the smallest bus inesses in Brooklyn C enter. T hat s aid, s ome baseline eligibility and doc umentation will
be necessary to demons trate that the busines s is located in Brooklyn C enter, exis ted prior to a certain date,
number of employees, and annual gros s revenue.
T he following is the proposed busines s eligibility for the program:
Bus iness must have a physic al address within the C ity of Brooklyn C enter
Bus iness must have been in operation prior to F ebruary 20, 2020
Employ 10 or fewer full time or part time employees prior to the issuanc e of the S tate of Emergenc y
Exec utive O rder 20-04 (March 16, 2020). S ole proprietors and individual contrac tors are eligible.
Bus iness must have annual gross revenue of less than $200,000
Be able to demons trate that its revenues have been directly and adversely affec ted by the C O VI D-19
Health P andemic and/or that it operates in a category advers ely affected by Executive O rders 20-04 and
20-08, or other locally owned and operated busines s deemed non-es s ential under Exec utive O rder 20-20
Bus iness must serve the general public and be a conforming or legally non-c onforming use under the
current zoning regulations of the C ity, and have no adverse actions or open violations with the C ity
A busines s owners’ immigration s tatus does not affect eligibility
S taff is proposing that as s is tance not be provided to busines s es whic h:
Do not have a physical address within the C ity of B rooklyn Center
Derive inc ome from pas s ive inves tments without operational ties to operating bus inesses or whose
primary s ourc e of revenue is from busines s -to-bus iness trans actions
P rimarily generate inc ome from gambling activities , adult entertainment, tobacc o/vaping-related activities ,
registered lobbying, multi-level marketing, billboards , or renting commerc ial or res idential property
Have no current or historical financial s tatements
Application P rocess
S taff is proposing a rolling application process with s et eligibility. S imilar to how C DBG funds are alloc ated,
the EDA would approve the program and eligibility c riteria, and eligible applic ants would be approved
administratively on a first c ome first served basis until program funding was expended or the emergency order
res cinded. S taff would provide a report to the EDA of all bus inesses funded through the program.
S taff would work with AC ER , LiBA, and other loc al partners to dis s eminate information about the program.
A program des cription along with a copy of the loan applic ation is attached to this memo. S taff have shared the
program and application with repres entatives from LiBA and AC ER . LiBA provided c omments bac k which
were very favorable, indic ating that the program would meet their cons tituent's s hort term needs . S taff have not
received c omments from AC ER as of the writing of this memo.
N ext Steps
As this s ituation unfolds, staff c ontinues to monitor how other cities both regionally and nationally are
res ponding to this c ris is . P hone c alls and webinars are held weekly to share information ac ros s c ommunities as
everyone works to understand bes t practices. As new thinking emerges from partner c ities and busines s needs
change, s taff will adapt the approac h to be as effective and impactful as possible. Busines s es are an inc redibly
important part of the Brooklyn C enter community and are feeling the affec ts of the C O VI D-19 outbreak in
very ac ute ways. S taff is committed to continue providing critical s upport to help bus inesses s urvive and
ultimately thrive from this situation.
Based on the disc ussion at the May 4 work s es s ion, staff c an bring the program back for the EDA on May 11
for c onsideration. If approved, the applic ation period could open as early as May 12th.
Policy Issues:
D oes the City Council/E D A have questions/concerns about the proposed program?
Is the C ity C ouncil/EDA s upportive of an emergenc y s mall bus iness s upport program?
S trategic Priorities and Values:
R es ident Ec onomic S tability
AT TAC HME N T S:
Desc ription Upload Date Type
P roposed Emergency S mall Bus iness F orgivable Loan P rogram 4/27/2020 Bac kup Material
P roposed Emergency S mall Bus iness Loan Applic ation 4/27/2020 Bac kup Material
P owerpoint 5/5/2020 Bac kup Material
Brooklyn Center Economic Development Authority
Small Business Emergency Forgivable Loan Program
Brooklyn Center is home to a high number of micro businesses, many owned by immigrants and people
of color. Small businesses are integral and vital to the economic, social, and religious fabric of the Brooklyn
Center community. Accordingly, the Brooklyn Center Economic Development Authority (EDA) has
determined to offer locally owned and operated businesses within the community a forgivable loan
opportunity to address working capital needs upon the declaration of a state of emergency by the State
of Minnesota (State) and the City of Brooklyn Center (City).
The purpose of this program is to ensure the viability of the community’s small businesses faced with the
current COVID-19 health emergency, which is adversely affecting the City’s economy. The goal of this
program is to provide businesses small loans with deferred payment and forgiveness options to allow for
access to working capital and to encourage businesses to seek out technical assistance and other
resources which may help them weather this difficult time.
Loan funds are available on a first-come, first-served basis for eligible applicants. The program is subject
to funding availability from the EDA. The EDA retains the authority and discretion to approve or deny an
application, and reserves the right to subsequently add further priorities, change eligibility criteria, or
discontinue the program in response to changing circumstances.
Maximum Loan Amount: $3,000
Interest Rates:
Loan interest rate is fixed at 0%
Loan Terms:
• Loan recipients shall enter into a Loan Agreement with the Brooklyn Center EDA. Funds will not
be distributed for any loan award until a Loan Agreement has been executed by all required
parties.
• Loan payments will be deferred one (1) year from the date of award
• Loans may be eligible for forgiveness one (1) year from the date of award
• If a business does not apply for forgiveness or is not approved for forgiveness the loan will be
paid back monthly for 3 years at 0% interest with no pre-payment penalty
Eligible Business Criteria:
• Business must have a physical address within the City of Brooklyn Center
• Business must have been in operation prior to February 20th 2020
• Employ 10 or fewer full time or part time employees prior to the issuance of the State of
Emergency Executive Order 20-04 (March 16, 2020). Sole proprietors and individual contractors
are eligible.
• Business must have annual gross revenue of less than $200,000
• Be able to demonstrate that its revenues have been directly and adversely affected by the
COVID-19 Health Pandemic and/or that it operates in a category adversely affected by Executive
Orders 20-04 and 20-08, or other locally owned and operated business deemed non-essential
under Executive Order 20-20
• Business must serve the general public and be a conforming or legally non-conforming use
under the current zoning regulations of the City, and have no adverse actions or open violations
with the City
• A business owners’ immigration status does not affect eligibility
• Applicants are strongly encouraged to claim all applicable private insurance and utilize all other
sources of applicable assistance available from other private and public sources. Applicants are
also strongly encouraged to apply for an Economic Injury Disaster Loan through the Small
Business Administration (SBA) and Small Business Emergency Loan through the Minnesota
Department of Employment and Economic Development (DEED) prior to applying for this grant.
For more information, visit:
Guide to financial resources for Minnesota small businesses
Assistance cannot be provided to businesses that:
• Do not have a physical address within the City of Brooklyn Center
• Derive income from passive investments without operational ties to operating businesses or
whose primary source of revenue is from business-to-business transactions
• Primarily generate income from gambling activities, adult entertainment, tobacco/vaping-
related activities, registered lobbying, multi-level marketing, billboards, or renting commercial
or residential property
• Have no current or historical financial statements
Allowable Uses:
• Rent/mortgage payments
• Payroll, employee benefits and leave
• Accounts payable
• Vendor payments
• Operating cash
Forgiveness:
All applicants can apply for forgiveness after the 1-year deferral period. Applications for forgiveness will
be sent out by City of Brooklyn Center staff.
A portion or the entirety of the remaining loan balance may be forgiven after the one-year deferral
period. The conditions for loan forgiveness are as follows:
• Demonstration that funds were used on eligible expenses, specifying how the entirety of the
funds were utilized and providing evidence in the form of paid invoices, statements, or similar
documentation.
• Business has met with an area business resource center and received technical assistance. City
staff will be in contact with the business owner to assist in connecting them with a business
resource center that can provide resources specific to any needs they may have.
Application Process:
• Application Period Opens: May 12
• Applications are available on the City’s website:
• Applications will be accepted on a first come first served basis until funds are expended or the
emergency order is lifted, whichever comes first.
• Applications will be reviewed and approved by City staff on a rolling basis, based on eligibility,
and submission of a complete application.
• Upon submission of application, applicants will receive an email confirming receipt of
application.
• A staff committee will review application for eligibility and completeness. If additional
information or documentation is necessary, EDA staff will contact the applicant. Due to an
expected high volume of applications, please consider your application complete if staff does
not request additional information within 10 business days after application acceptance.
Funding Process:
• Businesses will be notified within 10 business days if their application has been approved.
• Loan agreements will be provided via email for signatures.
• Loan funds shall be distributed by check within two weeks after a loan agreement has been
executed by all required parties.
• Brooklyn Center City staff will provide a report to the Brooklyn Center EDA of all businesses
funded through the program.
Questions:
Any questions related to the application process should be directed to:
Jimmy Loyd, Economic Development Coordinator
mjloyd@ci.brooklyn-center.mn.us
Brookly n Center Sm all Busines s As sista nc e Applic ation
1 . App lic an t C on ta ct
Fi rst N ame Last N ame
Ti tle
Company N ame
Street A ddress
Apt/Sui te/Offi ce
City State Zip
Email Address
Primary Phone
2 . Busin ess T yp e
R etai l
Servi ce
Manufacturi ng
C onstructi on
Other - Write In
3 . Number of F TE
1-5
6-10
More than 10
4 . S upp orting do c ume nta tio n fo r proo f of b us ines s res iden c y in
B roo k lyn C e nte r. E x amples in clu de: s tate men t of le a se, mortga ge
s tate me n t, p rop e rty tax s tate men t, or oth er doc ume nt to sh ow p ro o f o f
occ upa ncy within B roo k lyn C e nte r.
Brows e...
5 . 201 9 Gro s s Rev e nu e
6 . E s tima ted 2 0 20 Gros s R e ven ue
7 . Gra nt a mou nt req u este d (u p to $####)
8 . Briefly de s c rib e h o w yo ur b us ines s has bee n imp a cte d b y the C O VID-
1 9 p a nd e mic a nd /or relate d Exec utiv e Ord e rs.
9 . Curren t sta tus o f yo ur bu s ines s :
Ful l y open for busi ness and/or operating onl i ne
Open but with reduced hours
R educed operati ons and/or operati ng onl i ne
C losed to publ i c but sti ll operati ng onsite, onli ne, or remotel y
C losed compl etely
Other - Write In
1 0. If a wa rd e d g ra n t fu nd ing , h ow wo uld y ou us e the fun ds? Elig ible
e xp e ns e s inc lud e c urren t p a y ro ll ob ligatio ns (i.e. ma y no t in c lud e
e mp loy e e s wh o h a v e b e e n la id o ff), le a s e o r mo rtg ag e pa y men ts,
utilitie s , ac c ou nts p aya ble, p ro p erty ta x e s an d o the r critic al b usin e ss
e xp e ns e s . P le a se b e d e taile d with use s a nd a ss o ciate d c o sts .
1 1. Is there an y th in g e ls e th a t we s ho u ld b e awa re o f in re latio n to y o u r
a pp lic atio n o r b usin e ss?
5/5/2020
1
Small Business Support and
Emergency Forgivable Loan
Program
City Council Work Session, 5/4/2020
Meg Beekman, Community Development Director
Background
•March 13, 2020 –Executive Order 20‐01 Declaring Peacetime Emergency
•March 16, 2020 –Executive Order 20‐04 Ordering closure places of public
accommodation offering food and/or beverage; included spas, health
clubs, recreation and entertainment facilities, and beauty salons
•March 25, 2020 ‐Executive Order 20‐18 Extending and clarifying Order 02‐
04
•March 25, 2020, Executive Order 20‐20 Issuing a Stay‐at‐Home order
except for exempt activities and critical sector workers (DEED maintains
definition of “critical sector workers” which has been revised multiple
times since March 25)
2
5/5/2020
2
Background
•82% of workers are considered “critical sector”
•11.4% of labor force has applied for unemployment due to temporary
closures and furloughs
•Small businesses most affected by closures
3
State and Federal Programs
4
•PPP –Payment Protection Program –Forgivable loan up to $10 million
from private lender, backed by SBA
•EIDL –Economic Injury Disaster Loan –SBA loan up to $2 million, deferred
for one year, and paid back over 30 years. Program includes up to $10,000
advance grant
•Small Business Emergency Loan Fund – DEED program, businesses affect
by Executive Order 20‐04 can borrow up to $35,000 with no interest.
Partially forgiven
5/5/2020
3
Business Support in Brooklyn Center
•Website with available business resources
•Created business survey
•Direct mailing to local businesses eligible for DEED Small Business Emergency Loan
•Direct contact with local businesses to offer staff assistance
•Contract with local agencies to provide technical assistance and information gathering
•Participate in weekly calls and conversations with DEED and SBA staff, regional
business resource centers, and community organizations to understand need and
disseminate information
5
Business Need in Brooklyn Center
•Despite available state and federal programs, barriers for small and micro business exist, particularly
female and minority‐owned businesses
•First round of federal funds for PPP and EIDL depleted in 13 days
•Banks and SBA overwhelmed with applications
•Process times are long
•Some banks only working with existing customers
•Regional business resource centers over capacity to assist small businesses with applications and
technical assistance
•Some cities creating their own programs to fill the immediate gap
6
5/5/2020
4
Small Business Forgivable Loan Program
•Purpose: Immediate emergency funds to support micro businesses in Brooklyn Center, and encourage
business owners to seek out needed technical assistance
•Maximum Loan Amount: $3,000
•Interest Rate: 0%
•Terms:
•Required Loan Agreement
•No payments for 1 year
•Eligible for forgiveness within first 12 months
•If business does not apply for forgiveness, or it is not approved, loan would be paid back over 3 years
•Forgiveness:
•Demonstrate funds were used on eligible expenses
•Meet with and receive technical assistance from an area/regional business resource provider
7
Small Business Forgivable Loan Program
•Eligibility:
•Business must have a physical address within the City of Brooklyn Center
•Business must have been in operation prior to February 20th 2020
•Employ 10 or fewer full time or part time employees prior to the issuance of the State of Emergency Executive Order
20‐04 (March 16, 2020). Sole proprietors and individual contractors are eligible.
•Business must have annual gross revenue of less than $200,000
•Be able to demonstrate that its revenues have been directly and adversely affected by the COVID‐19 Health Pandemic
and/or that it operates in a category adversely affected by Executive Orders 20‐04 and 20‐08, or other locally owned
and operated business deemed non‐essential under Executive Order 20‐20
•Business must serve the general public and be a conforming or legally non‐conforming use under the current zoning
regulations of the City, and have no adverse actions or open violations with the City
•A business owners’ immigration status does not affect eligibility
8
5/5/2020
5
Small Business Forgivable Loan Program
•Ineligible businesses:
•Do not have a physical address within the City of Brooklyn Center
•Derive income from passive investments without operational ties to operating businesses or whose primary source of
revenue is from business‐to‐business transactions
•Primarily generate income from gambling activities, adult entertainment, tobacco/vaping‐related activities, registered
lobbying, multi‐level marketing, billboards, or renting commercial or residential property
•Have no current or historical financial statements
•Allowable uses of funds:
•Business rent/mortgage payments
•Payroll, employee benefits and leave
•Accounts payable
•Vendor payments
•Operating cash
9
Small Business Forgivable Loan Program
•Application Process:
•Open application period
•Applications would be available on the city’s website
•Applications would be accepted on a first come/first served basis
•Applications would be reviewed and approved administratively by an inter‐department committee on a rolling basis
•Criteria for approval would be based on meeting the eligibility as approved by the EDA and submitting a complete
application
•Program will remain open until funds are expended or emergency order is lifted, whichever comes first
•Staff will provide a report to the EDA of the businesses funded through the program
•Funding Source
•$150,000 (more can be allocated if EDA determines need)
•EDA fund cash reserves
10
5/5/2020
6
Next Steps
•Based on discussion, program could be brought back at May 11 EDA
meeting for approval
•Could begin accepting applications week of May 11
•Rolling approval process allows for rapid turn‐around of funds
11
Policy Questions
•Does the City Council/EDA have any questions or concerns about the proposed Small
Business Emergency Forgivable Loan Program?
•Does the City Council/EDA have any changes they would like made to the program?
•Is the City Council/EDA supportive of moving forward with the program?
12
MEMOR ANDUM - C OUNCIL WOR K SESSION
DAT E:5/4/2020
TO :C ity C ouncil
F R O M:C urt Boganey, C ity Manager
T HR O UG H:N/A
BY:Meg Beekman, C ommunity Development Director
S UBJ EC T:Emergenc y F unding S upport for Loc al Nonprofit O rganizations
Background:
O n March 13, 2020 G overnor Walz declared a peac etime s tate of emergency in the S tate of Minnesota as
res ult of the outbreak of the C O VI D-19 virus , commonly referred to as coronavirus . In the week following the
G overnor ’s announc ement several additional exec utive orders were made by the G overnor including
dis couraging gatherings of more than 10 people, partially closing dine-in restaurants, bars, and other venues,
and s hutting down Minnesota’s K-12 s chools . S inc e that time the S tay-at-Home order has been extended
through May 4.
O n March 17, 2020, the Brooklyn C enter C ity C ouncil adopted Resolution 2020-035, Extending the period of a
Mayor-declared local emergency. Within that Resolution, the Council allocated $30,000 from the G eneral Fund to
support emergency food assistance to three organizations within the community in response to the immediate need
caused by the pandemic. T hose organizations were C ommunity E mergency Assistance P rograms (C E AP ), Center
for Asian P acific Islanders (C AP I), and West African F amily and C ommunity Services (WAF C S ).
Given the on-going and ever changing nature of the situation it is hard to predict when people will be able to return
to work leaving many M innesotans, including Brooklyn C enter community members, unsure of how they will be
able to provide basic necessities for their families. Additionally, as the pandemic continues, the needs of the
community will also change, based on other resources available and how immediate needs are being met. T his is
increasing the strain on local nonprofit organizations that have limited resources and will likely see a downturn in
funds being provided by businesses and donors who have also been negatively affected by the C O VI D -19
outbreak.
T he city recently received a request from the O rganization for Liberians in M innesota (O L M) for $5,000 to
support the work they are doing to serve local B rooklyn Center residents during this time of crisis. T heir work
includes direct food and rent assistance to elderly and undocumented individuals and outreach and communication.
Staff is recommending the C ity C ouncil directs an additional $10,000 available to all local nonprofits directly
serving the residents of B rooklyn Center with emergency support services. Grants would be issued up to a
maximum of $3,000 per organization. Staff is proposing that the applications be reviewed and scored
administratively by an inter-department committee. T he dollars can be administratively distributed on an as
requested basis through September 1 through an application and scoring process. In order to track the
effectiveness of these dollars, the City will ask all organizations that receive funds to provide a report on how the
funds were utilized and outcomes including; number of people served, types of services utilized and any significant
results of services received. A report of how the funds were allocated and spent would be provided back to the
City Council.
T his program will allow any local nonprofit, serving Brooklyn C enter residents, to apply for funding to support
their work through an open and trans parent proc es s . It will further allow the city to continue to build
relations hips with s maller nonprofit and c haritable organizations in the c ommunity that may otherwis e remain
unknown.
C ity staff will work with community partners to disseminate information about the program to local
organizations and religious groups so they may apply. S taff is proposing that organizations whic h have already
received emergenc y funding from the C ity would not be eligible to apply. T his would allow more organizations
to be served, partic ularly smaller ones which may otherwis e be overlooked.
A full program des cription, along with application and application review proc es s is attached.
Policy Issues:
Does the C ity C ounc il have any ques tions /c onc erns about an emergenc y program to s upport loc al
nonprofits?
Does the C ouncil s upport the creation of an Emergenc y F unding P rogram to S upport Local
Nonprofits ?
S trategic Priorities and Values:
R es ident Ec onomic S tability
AT TAC HME N T S:
Desc ription Upload Date Type
P roposed Emergency S upport for Loc al Nonprofit P rogram
Desc ription 4/29/2020 Bac kup Material
P owerpoint 5/5/2020 Bac kup Material
Brooklyn Center Emergency Assistance for Direct Support Services
Overview
This grant program from the City of Brooklyn Center is a direct response to the increased need for basic
services as a result of sudden job losses and business closures during the coronavirus pandemic. These
funds will address immediate needs by supporting nonprofit organizations and other charitable agencies
serving residents of Brooklyn Center and who that are seeing a much greater demand for services during
this crisis. The goal of this grant is to quickly provide needed emergency services to Brooklyn Center
residents. Up to $3,000 may be awarded per applicant and the total available pool is $10,000.
Eligibility and criteria
Grant criteria include:
- Recipients must be a nonprofit organization or a charitable agencies providing existing services
to Brooklyn Center residents.
- Funds must be used to provide emergency resources to Brooklyn Center residents.
- Eligible uses include direct costs of emergency services such as food, shelter, and other critical
life or safety needs identified by local nonprofit and charitable organizations.
- Organization must be able to spend all grant funds by September 1, 2020.
- Organization has not already received emergency funding from the City of Brooklyn Center
Scoring criteria will remain consistent through each step of the selection process (see chart below).
However, scores could change as staff gains more information about the organization and proposed
plans through the process.
SCORING CRITERIA POINTS
Proposed use of direct emergency support funds fills a visible
life/safety need in Brooklyn Center
10
Organization’s reputation and experience in providing quality
emergency service in Brooklyn Center
10
Organization’s ability to implement in timely manner as
demonstrated by existing organizational and programmatic
infrastructure
10
TOTAL 30
Reporting
Because this grant is intended to deliver emergency services to residents quickly, there are streamlined
reporting requirements. Grantees will be asked to:
• Enter into a grant agreement with the City of Brooklyn Center;
• Provide an email update after 1 month summarizing how the funds are being used (amount
spent and services provided);
• Submit a report 3 months after the agreement has been signed that includes:
o Number of Brooklyn Center residents served
o Types of services utilized
o An itemized summary of how the dollars are used
o Any significant results of services received.
Process/Timeline
The City is putting in place a streamlined and flexible application process following the below steps.
Times and dates may change, as needed, to advance the selection in a timely manner. Applications will
be reviewed and scored by an inter-department committee of City staff.
1. Grant guidance issued – May 12
2. Application due – May 18
3. Applicants who advance: Video conference interviews – May 22
4. Applicants who advance: Recipients/City enter into Grant Agreements – Week of May 25
5. Funds available – Week of June 1
o Funds will typically be dispersed within a week of entering into a fully executed grant
agreement.
o Applicants who advance will also be asked to fill out a W-9 form, which will be provided
by the City.
Please contact Meg Beekman at mbeekman@ci.brooklyn-center.mn.us with any questions you may
have. Applications are due on May 18, at Noon by email to mbeekman@ci.brooklyn-center.mn.us
Thank you for your service to our community!
Application
Organization information
Organization name:
Organization address:
City, State, Zip:
Is the organization a
501c3? Yes ☐ No ☐ EIN: _________________________
Contact name:
Contact title:
Contact phone:
Contact email:
Budget
Amount requested
(maximum $3,000):
1. Describe a brief history of the direct services you provide in Brooklyn Center. Approximately
what percent of your services go to Brooklyn Center residents?
2. Please describe the services the funds will provide. Include a breakdown of how the requested
funds from this grant will specifically be used and distributed (do not include other services that
are provided but not funded with these funds).
3. What steps will you take to ensure these resources will be used by Brooklyn Center
residents? How will you provide evidence of this at the reporting stage?
4. Is there anything else you would like to add that pertains to the scoring criteria?
5/5/2020
1
Emergency Funding Support
for Local Nonprofit
Organizations
City Council Work Session, 5/4/2020
Meg Beekman, Community Development Director
Background
•March 13, 2020 –Executive Order 20‐01 Declaring Peacetime Emergency
•Weeks that followed, several additional Executive Orders; limiting gatherings of 10
or more people, closing places of public accommodations, and closing K‐12 schools.
•Stay‐at‐Home order has been extended through May 18
•March 17, 2020 –City Council adopted Resolution 2020‐035, extended
Mayor‐declared local emergency
•2020‐035 Allocated $30,000 to support three local organizations with emergency
food assistance: CAPI, CEAP, and WAFCS
2
5/5/2020
2
Background
•Continued uncertainty and changing needs of community members
•Increasing strain on local nonprofit and charitable organizations
•City received a request from OLM for $5,000 to support their work serving
local residents
•City recognizes these and other efforts of organizations in the community
serving residents
3
Support for Local Nonprofits
•Purpose: Support for existing local charitable organizations directly serving the residents of Brooklyn
Center with emergency support services
•Maximum Grant Amount: $3,000
•Eligibility:
•Recipients must be a nonprofit organization or a charitable agencies providing existing services to Brooklyn Center residents.
•Funds must be used to provide emergency resources to Brooklyn Center residents.
•Eligible uses include direct costs of emergency services such as food, shelter, and other critical life or safety needs identified
by local nonprofit and charitable organizations.
•Organization must be able to spend all grant funds by September 1, 2020.
•Organization has not already received emergency funding from the City of Brooklyn Center
4
5/5/2020
3
Support for Local Nonprofits
•Scoring Criteria:
•Reporting
•Grant agreement required
•Email update monthly summarizing how the funds are being used (amount spent and services provided);
•Submit a final report that includes:
•Number of Brooklyn Center residents served
•Types of services utilized
•An itemized summary of how the dollars are used
•Any significant results of services received
5
SCORING CRITERIA POINTS
Proposed use of direct emergency support funds fills a visible
life/safety need in Brooklyn Center
10
Organization’s reputation and experience in providing quality
emergency service in Brooklyn Center
10
Organization’s ability to implement in timely manner as
demonstrated by existing organizational and programmatic
infrastructure
10
TOTAL 30
Support for Local Nonprofits
•Application Questions:
•Describe a brief history of the direct services you provide in Brooklyn Center. Approximately what percent of your
services go to Brooklyn Center residents?
•Please describe the services the funds will provide. Include a breakdown of how the requested funds from this grant
will specifically be used and distributed (do not include other services that are provided but not funded with these
funds).
•What steps will you take to ensure these resources will be used by Brooklyn Center residents? How will you provide
evidence of this at the reporting stage?
•Is there anything else you would like to add that pertains to the scoring criteria?
6
5/5/2020
4
Support for Local Nonprofits
•Application process/Timeline:
•Applications reviewed and scored by an intern‐department committee of city staff
•Application period opens
•Applications due: 1 week later
•Applicants who advance: Video conference interviews
•Applicants selected and enter into grant agreements
•Funds available within 1 week of entering into grant agreement
•Funds must be spent by September 1
7
Next Steps
•Based on discussion, program could be brought back at May 11 EDA
meeting for approval
•Could begin advertising week of May 11
8
5/5/2020
5
Policy Questions
•Does the City Council have any questions or concerns about the proposed Program?
•Does the City Council have any changes they would like made to the program?
•Is the City Council supportive of moving forward with the program?
9