HomeMy WebLinkAbout2020-17 EDARadoption:
President Elliott introduced the following resolution and moved its
RESOLUTION NO, 2020-17
RESOLUTION AUTHORIZING THE TRANSFER OF CARES ACT FUNDS TO THE
ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER FOR
ELIGIBLE EXPENSES RELATED TO FORGIVABLE LOAN PROGRAM
WHEREAS, on March 27, 2020, H,R. 748 Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) was introduced by the United States Congress to provide emergency
assistance and health care response for individuals, families, and businesses affected by the
COVID-19 pandemic and signed into law by President Donald Trump; and
WHEREAS, in order to assist cities, counties and townships across the state with the
unexpected budgetary and economic impacts of the COVID49 pandemic, $841 million of the
state's allocation of the Coronavirus Relief Fund (the "Funds"), authorized by the federal
CARES Act, have been distributed to local governments across the state; and
WHEREAS, the City of Brooklyn Center ("City") has received an allocation of $2.4
million, which can be used to support local government services as well as grants to businesses
and individuals who have been impacted by COVID49 ("Funds"); and
WHEREAS, guidance issued by the federal government provides that CARES Act
funding is 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 in their
communities, including economic support for small businesses through grants or forgivable
loans; and
WHEREAS, on May 11, 2020, the Economic Development Authority of the City of
Brooklyn Center, Minnesota (the established its Small Business Emergency Forgivable
Loan Program (the "Program") to assist small businesses located in the City of Brooklyn Center
which have experienced economic hardship as a result of the COVID49 public health
emergency; and
WHEREAS, in establishing the Program, the EDA designated in to $150,000 fiom its
Economic Development Authority as the source of funding for loans under the Program; and
WHEREAS, as of the date hereof, the EDA has expended $68,500 in Program loans; and
WHERAS, expenditures described herein are necessary in connection with the 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 City's or EDA's regular budget in place as of March 27,
2020, and therefore are permissible expenditures of Funds under the CARES Act; and
WHEREAS, the City Council has determined that allocation a portion of the Funds to
reimburse the EDA for prior expenditures relating to the Program meeting the requirements of the
CARES Act as described above are in the best interests of the City and that the Funds designated
for such uses will comply with federal and state guidelines for the use of the Funds under the
CARES Act.
NOW, THEREFORE, BE IT RESOLVED, by my Council of the City of Brooklyn
Center as follows:
l . The City Manager and staff are authorized and directed to transfer the administration
of a portion of the Funds to the Brooklyn Center Economic Development Authority,
in the authorized amount of sixty eight thousand five hundred dollars ($68,500), for
the purpose of reimbursing the EDA for Program expenditures already incurred and
any expenditures related thereto, including but not limited to administrative costs of
the Program, under the CARES Act in accordance with federal and state guidelines
for expending Funds.
2. The City Manager and City staff are hereby authorized to take all other actions, and
execute such other documents, as may be needed to implement and carry out the
intent of this Resolution.
Date President
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
Ryan
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.