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HomeMy WebLinkAbout2020-13 EDARCommissioner Graves introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2020-13 RESOLUTION APPROVING ESTABLISHMENT OF THE MICRO -BUSINESS RELIEF GRANT 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, beginning in March 2020, Governor Tim Walz issued a series of Emergency Executive Orders in response to the COVID-19 pandemic which closed public and private schools, closed bars, restaurants, and other places of accommodation and generally required Minnesotans to stay at home; and WHEREAS, in an effort to mitigate the economic distress caused by the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which included Coronavirus Relief Funds (the "Funds") to provide funding to States and local governments to cover costs associated with the COVID-19 pandemic; and WHEREAS, guidance issued by the federal government provides that Funds are intended to cover a variety of costs incurred by State and local governments in responding to and mitigating the effects of the COVID-19"public health crisis, including related to providing economic support including grants to small businesses for costs related to business interruptions; and WHEREAS, the Brooklyn Center Economic Development Authority (the "EDA") finds that in addition to impacting the health and safety of residents, the unprecedented economic environment created by the COVID-19 pandemic has resulted in numerous business interruptions and shutdowns in the City; and WHEREAS, although the State of Minnesota is cun•ently "dialing back" business closures and other restrictions affecting the economy and allowing businesses to reopen under certain limited conditions, the EDA recognizes that the costs of current and prior business interruptions and the costs for businesses associated with reopening under public health guidance and protocols are likely to prevent many businesses from continuing to operate; and WHEREAS, the temporary and potential permanent closure of many of the City's businesses as a result of the COVID=19 public health crisis threatens to substantially impair the City's economy; and WHEREAS, preservation of existing businesses with a physical location in the City is essential to stabilizing the City's economy and the EDA therefore desires to provide economic assistance to businesses within the City that have been impacted by the economic pressures caused by the COVIDA 9 public health crisis through a Micro -business Relief Grant program to provide grants and technical assistance to businesses, in accordance with federal CARES Act regulations; and WHEREAS, expenditures relating to the Program are necessary in connection with a public health emergency caused by the COVID-19 pandemic, which were incurred on or after March 1, 2020, and were not accounted for in the EDA's regular budget in place as of March 27, 2020, and therefore are permissible expenditures of Funds under the CARES Act. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of Brooklyn Center, Minnesota Board of Commissioners as follows: 1. The Brooklyn Center Economic Development Authority hereby establishes the Micro -business Relief Grant Program (the "Program") to provide business assistance and economic support to cover costs in connection with business interruptions related to the COVID-19 public health emergency. 2. The Program is intended to provide emergency assistance through grants to sustain operations for businesses and to help eligible local businesses with costs associated with reopening and operating under public health guidance and protocols. Eligible businesses shall include those that are locally owned and operated, can demonstrate revenue loss as a result of the COVID-19 pandemic; and/or need assistance to fund operating costs, including payroll, as a result of the COVID-19 pandemic and resulting business interruptions, all subject to formal guidelines of the Program. 3. The Program shall be administered according to those guidelines established by the EDA staff, to include'the policy guidelines attached hereto as Exhibit A, and in compliance with all requirements and limitations of the CARES Act. 4. The City has designated the EDA as its agent to administer up to $147,920 of its federal funding fiom the ColonavlX"O Relief Fund available under the CARES Act for the Program, as provided in the City resolution adopted on September 28, 2020. 5. The Executive Director and TM staff are hereby authorized and directed to do each of the following regarding the Program: a. Negotiate a professional services agreement with African Career, Education & Resource (ACER) for review and technical assistance in soliciting, assisting with completion, and processing Micro -business Relief Grant Program applications in an amount not to exceed $50,000, with compensation to be based on a percentage of the amount of total grants awarded, not to exceed 10% for total grants awarded; and (b) a professional services agreement with Liberian Business Association (LIBA) for review and technical assistance in processing Micro -business Relief Grant Program applications and provide laptops, computer software, and training, in an amount not to exceed $97,920, with compensation to be based on a percentage of total contract cost, not to exceed 20% of total contract amount up to $16,320; and following review and approval by REDA legal counsel, the Executive Director is authorized to sign the agreements on behalf of REDA. b. Talce all other actions, and execute such other documents, as maybe needed to implement and carry out the Program and the intent of this Resolution. September 28, 2020 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Butler and upon vote being taken thereon, the following voted in favor thereof: Butler, Elliott, Graves, Lawrence -Anderson, Ryan and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. Exhibit A 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 A the Brooklyn Center community. Accordingly, the City of Brooklyn Center has deterinined to offer locally owned and operated businesses within the community a grant opportunity to address the needs of businesses working remotely and other working capital needs under the declaration of a state of emergency by the State of Minnesota (State) and the City of Brooklyn Center (City). This Program will be administered through the Brooklyn Center Economic Development Authority (EDA). The purpose of this program is to ensure the viability of the community's small businesses faced with the current COVID49 health emergency, which is adversely affecting the City's economy. The goal of this program is to provide businesses small grants to allow for access to working capital, provide funds for re -opening, and provide needed technology and tools to adjust their business to operate during the COVID-19 health emergency. 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 50 or fewer full time or part time employees prior to the issuance of the State of Emergency Executive Order 20-04 (March M, 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 COVID49 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 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 Expenses: • Rent/mortgage payments • Payroll, employee benefits and leave • Accounts payable • Vendor payments • Developing or implementing a Pandemic Preparedness Plan • Expenses related to business reopening • Technology or other tools to assist businesses with adjusting their businesses to a post- COVID economy (i.e., computers, software, websites, online marketing/branding, technical assistance for computer or computer software training) • Expenses must be for costs incurred between March 1, 2020 and October 23, 2020.