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HomeMy WebLinkAbout2020 11-09 EDAPE conomic Development Authority V I RT UA L meeting being conducted by electronic means in accordance with Minnesota S tatutes, section 13D.021 P ublic portion available for connection via telephone Dial: 1-312-535- 8110 Access Code: 133 791 1584 November 9, 2020 AGE NDA 1.Call to Order The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is available to the public. The packet ring binder is located at the entrance of the council chambers. 2.Roll Call 3.Approval of Consent Agenda The following items are considered to be routine by the Economic Development Authority (E D A) and will been acted by one motion. There will be no separate disc ussion of these items unless a Commissioner so requests, in whic h event the item will be removed from the c onsent agenda and considered at the end of Commission Consideration I tems. a.Approval of Minutes - Approve the minutes from the October 12, 2020 meeting b.Resolutions A uthorizing the Transfer of Cares A ct Funds to the Economic Development Authority and Forgiving S mall Business L oans Created Under the S mall Business Emergency Forgivable L oan Program - Motion to approve a resol ution authori zing the transfer of CARES Act Funds to the Economic Devel opment Authority of Brooklyn Center for eligible expenses related to the Forgivable Loan Program - Motion to approve a resolution authori zing use of CARES Act funds for the past expenses from the Forgivable Loan Program and providing loan forgiveness 4.Commission Consideration Items a.Resolution A pproving a Right of Entry Agreement for the use of the former Target B uilding by North Memorial Hospitals and Clinics - Motion to approve a Right of Entry Agreement for the use of the former target building by North Memorial Hospitals and Clinics 5.Adjournment Economic Development Authority DAT E:11/9/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :N/A BY:Barb S uciu, C ity C lerk S U B J E C T:A pproval of Minutes B ackground: I n accordance with M innesota S tate S tatute 15.17, the official records of all mee5ngs must be documented and approved by the governing body. B udget I ssues: - None S trategic Priories and Values: O pera5onal Excellence AT TA C H M E N TS : D escrip5on U pload D ate Type 10/12 11/9/2020 Backup M aterial 10/12/20 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION OCTOBER 12, 2020 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Mike Elliott at 9:48 p.m. The meeting was conducted via Webex. 2. ROLL CALL President Mike Elliott and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, Community Development Director Meg Beekman, Police Chief Tim Gannon, City Clerk Barb Suciu and City Attorney Troy Gilchrist. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Graves moved and President Elliott seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. September 28, 2020 – Regular Session 3b. RESOLUTION NO. 2020-16 AUTHORIZING ADDITIONAL MICRO- BUSINESS RELIEF GRANT PROGRAM EXPENDITURES AND THE TRANSFER OF CARES ACT FUNDS TO THE ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER TO ADMINISTER BUSINESS RELIEF PROGRAM Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS None. 5. ADJOURNMENT Commissioner Graves moved and President Elliott seconded adjournment of the Economic Development Authority meeting at 9:50 p.m. Motion passed unanimously. Economic Development Authority DAT E:11/9/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :N/A BY:M eg Beekman, C ommunity D evelopment D irector S U B J E C T:Res olu+ons A uthoriz ing the Transfer of C ares A ct F unds to the Economic D evelopment A uthority and Forgiving S mall Bus iness L oans C reated Under the S mall Busines s Emergency Forgivable L oan P rogram B ackground: O n May 11, 2020, the Brooklyn Center E DA authoriz ed a program to provide emergency forgivable loans to s mall bus inesses in the community. The program w as es tablished in res pons e to the C O V I D -19 pandemic and the G overnor's emergency orders which created financial hardship for bus inesses in the community. The program provided up to $150,000 of E DA res erve funds to provide forgivable loans up to $3,000 to local small and micro bus inesses . A pplicant eligibility for the program w as es tablished in partners hip w ith A C E R and L I B A and both organiz a+ons w ere brought on to provide outreach and engagement for the program. I n order to receive forgivenes s for the loans, recipients of the funds w ere required to provide documenta+on that the funds w ere used on eligible expenditures and to meet with a s mall bus iness technical assistance counselor. I n total the C ity process 24 applica+ons for funds before the program w as transi+oned with C A R E S A ct funds to A C E R w ho took over the administra+on of it. The names of the bus inesses and busines s ow ners w ho received loans is a@ached, as are the results of the demographic survey which was a@ached to the applica+on. The program w as es tablished prior to municipal C A R E S A ct funds being made available to the C ity. S mall bus iness support if an eligible us e of C A R E S funds; how ever, the program was not originally designed with the C A R E S A ct eligibility or guidance in mind. I n order to u+lize C A R E S A ct funds to reimburs e the E DA , the City A@orney is recommending that the E DA cons ider tw o res olu+ons. The firs t res olu+on will authorize the trans fer of C A R E S A ct funds to the E DA for the purpos e of the program. The second res olu+on will forgive the loan recipients, w hich w ill allow the us e of C A R E S funds for the program. T he C AR E S Act funds cannot be used for small business loans, only grants, so the loans must be forgiven in order to be eligible under the program. T he C ity A@orney has reviewed the program guidelines and believes that all other aspects of the program make it eligible for C AR E S Act funds. The total amount s pent on the program was $68,500. B udget I ssues: A pproval of this item will reimburse the E DA $68,500 for the amount s pent on the S mall Busines s Emergency Forgivable Loan P rogram. S trategic Priories and Values: Resident Economic S tability AT TA C H M E N TS : D escrip+on U pload D ate Type Forgivable L oan Recipients 11/4/2020 Backup M aterial S mall Bus iness Forgivable L oan P rogram D escrip+on 11/3/2020 Backup M aterial Forgivable L oan P rogram D emographic S urvey Report 11/3/2020 Backup M aterial Res olu+on C ares F und A ct 11/6/2020 Resolu+on Le@er Res olu+on Forgivable L oan 11/6/2020 Resolu+on Le@er BUSINESS FIRST NAME LAST NAME DATE APP REC'D Allstate Insurance Chima Ogwurike Amazing Grace Catering Olubunmi Olabiyi 5/15/2020 B & R Transportation Group Rose Moseti Cando Ameritrade, Inc.Chioma Nnadi 5/16/2020 Cavalla Travel & Tour Jannie Seibure 5/15/2020 Empire Entertainment Smile, LLC Loveth Anayanvbo 5/15/2020 Healthy Habits Inc. DBA Curves Jill Dalton 5/15/2020 HomSavvy Jude Nnadi 6/17/2020 House of Royals d'afrque Boutique Oluwakemi Davis 5/15/2020 Irie Vybz Jamaican Restaurant Shanice Hines 5/20/2020 Jam Auto Sales, LLC Josephine Milligan Jammin' Wings Wayne Brown 5/24/2020 Joy4Designs Joyce Cooper 5/16/2020 Long Moune Financial Matthew Vang 6/4/2020 Moneyline Group Roland Pour 5/20/2020 Nissi Investment Group, Inc Steve Davis Rapid Braiding Victoria Tweh 5/22/2020 Transocean Carriers, Inc Arnold Maruko 5/16/2020 Transtellar Tax Services Thomas Motanya 5/16/2020 Travel with Thalina Thalina Edwards 5/18/2020 Vee Event Décor Venus Coleman 5/19/2020 Weatherspoon Realty Corey Weatherspoon 5/21/2020 Yarm's Distinct Hair Salon Yarma Russell 5/15/2020 Zenaworld Computer Geeks, LLC Zedekiah Nyanchama 5/15/2020 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 Rate: 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 with no interest for one (1) year from the date of award •Loans may be eligible for forgiveness within the first 12 months from the date of award •If a business does not meet the terms for forgiveness the loan will be paid back monthly for 3 years with an annual fee of $30 and 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 Forgiveness: Loans are forgiven if the recipients demonstrate that they have met the terms of forgiveness within the 12-month deferral period. A portion or the remaining loan balance may be forgiven after the 12-month deferral period. The conditions for loan forgiveness are as follows: •Submission of receipts, paid invoices, statements, or similar documents demonstrating loan funds were used on eligible expenses. •Business owner has met with an area business resource center and received technical assistance. City staff will be available to work with the business owner to assist with connecting them with a business resource center that can provide resources specific to their needs. Application Process: •Application Period Opens: May 15 •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 EDA determines to terminate the program, 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 jloyd@ci.brooklyn-center.mn.us Re p o r t f o r Br o o k l yn Ce nt e r Smal l Bus ine s s A s s is t anc e A p p l ic at io n Co m p l e t i o n Ra t e :9 6 .5% Co mp le te 55 P ar tial 2 T o t a l s : 57 Respo nse Co unt s 1 1. Gender 5 1% Fe ma le51% Fe ma le 49 % Ma le49% Ma le Va lue P e rce nt Re spo nse s Fe male 50.9%28 Male 49.1%27 T o t a l s : 55 2 2. Please check all t hat apply PercentAfrican Asia n o r Pacific Islan d er Bla ck o r Africa n America n Hmo n g Nig e rian Wh ite o r E u ro p e an American Othe r - Write In 0 1 0 2 0 3 0 4 0 5 0 6 0 Va lue P e rcent Re spo nse s Afric an 58 .9%33 As ian o r P ac ific Is land e r 3.6%2 Blac k o r Afr ic an Ame r ic an 30.4%17 Hmo ng 3.6%2 Nig e rian 12.5%7 White o r Eur o p e an Ame r ic an 7.1%4 Othe r - Wr ite In 16.1%9 3 3. Business T ype 1 6 % Re ta il16% Re ta il 5 5% Servic e55% Servic e 4 % Construction4% Construction 26% Other - Write In26% Other - Write In Va lue P e rce nt Re spo nse s Re tail 16.4%9 S e rvic e 54.5%30 Co ns tr uc tio n 3.6%2 Othe r - Wr ite In 25.5%14 T o t a l s : 55 4 4 . Number o f FT E 8 6% 1 -586% 1 -5 4 % 6-104% 6-10 1 1 % More tha n 1 011% More tha n 1 0 Va lue Pe rce nt Re spo nse s 1-5 8 5.5%47 6-10 3.6%2 Mo re than 10 10.9%6 T o t a l s : 55 5 5. Have yo u applied f o r any o t her f ederal, st at e, o r lo cal f unding? 7 3 % Ye s73% Ye s 27% No27% No Va lue Pe rce nt Re spo nse s Ye s 73.1%38 No 26.9%14 T o t a l s : 52 6 6. Have yo u received any o t her f ederal, st at e, o r lo cal f unding? 4 2 % Y e s42% Y e s 58% No58% No Va lue Pe rce nt Re spo nse s Ye s 42.3%22 No 57.7%30 T o t a l s : 52 7 7. Current st at us o f yo ur business: 18% Fully ope n for bus ine s s and/or operating online 18% Fully ope n for bus ine s s and/or operating online 20 % Open but with reduc ed hours20% Open but with reduc ed hours 1 5 % Reduc e d operations and/or operating online 1 5 % Reduc e d operations and/or operating online 2 4 % Clos e d to public but s till operating onsite, online , or re motely 2 4 % Clos e d to public but s till operating onsite, online , or re motely 1 8% Clos ed completely18% Clos ed completely 6% Other - Write In6% Other - Write In Va lue P e rce nt Re spo nse s Fully o p e n fo r bus ine s s and /o r o p e rating o nline 18 .2%10 Ope n b ut with re duc e d ho urs 20.0%11 Re d uc e d o p e ratio ns and /o r o p e rating o nline 14.5%8 Clo s e d to p ub lic but s till o pe r ating o ns ite , o nline , o r r e mo te ly 23.6%13 Clo s e d c o mp le te ly 18 .2%10 Othe r - Wr ite In 5.5%3 T o t a l s : 55 8 Member introduced the following resolution and moved its adoption: RESOLUTION NO. 2020-___ 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 COVID-19 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 COVID-19 (“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 “EDA”) 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 COVID-19 public health emergency; and WHEREAS, in establishing the Program, the EDA designated up to $150,000 from 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 the City Council of the City of Brooklyn Center as follows: 1. 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 Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Commissioner _______________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. ______ RESOLUTION AUTHORIZING USE OF CARES ACT FUNDS FOR PAST EXPENSES FROM FORGIVABLE LOAN PROGRAM AND PROVIDING FOR LOAN FORGIVENESS 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, on May 11, 2020, the EDA established its COVID-19 Small Business Emergency Forgivable Loan Program (the “Program”) to assist small businesses located in the City of Brooklyn Center, Minnesota which have experienced economic hardship as a result of the COVID-19 public health emergency; and WHEREAS, in establishing the Program, the EDA designated up to $150,000 from its Economic Development Authority Fund as the source of funding for loans under the Program and has expended $68,500 in Program loans; and WHEREAS, subsequent to creation of the Program by the EDA, Governor Tim Walz authorized the allocation by the State of Minnesota (the “State”) to local governments, including the City, of funds provided by Congress through passage of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide funding to states and local governments to cover costs associated with the COVID-19 public health emergency, including for assistance to small businesses to reimburse the costs of business interruption and other costs associated with the COVID-19 public health emergency (“Funds”); and WHEREAS, the City Council of the City has allocated a portion of the Funds to reimburse the EDA for prior Program expenses; 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 Authority’s regular budget in place as of March 27, 2020, and therefore are permissible expenditures of Funds under the CARES Act; and WHEREAS, the loan agreements signed by borrowers pursuant to the Program contained criteria that, if met, would result in the loan being forgiven following application the EDA; and WHEREAS, the EDA has expended all Program funds, no additional loans will be made pursuant to the Program, and the EDA has determined to forgive all outstanding loans issued pursuant to the Program. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of Brooklyn Center, Minnesota Board of Commissioners as follows: 1. The City has allocated $68,500 to the EDA to reimburse the EDA for qualified forgivable loans previously provided to small businesses through the Program and to pay other expenses related to the Program, including but not limited to administrative costs, all in accordance with federal and state guidelines for expending the Funds. 2. The outstanding balance of the loans issued pursuant to the Program shall be forgiven in an amount not to exceed $68,500. 3. The Executive Director and EDA staff are hereby authorized and directed to take all other actions, and execute such other documents, as may be needed to implement and carry out the Program and the intent of this Resolution. Date President ATTEST: Secretary The motion for the adoption of the foregoing resolution was duly seconded by Commissioner ___________________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Economic Development Authority DAT E:11/9/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :N/A BY:M eg Beekman, C ommunity D evelopment D irector S U B J E C T:Res olu+on A pproving a Right of Entry A greement for the use of the former Target Building by North Memorial H os pitals and Clinics B ackground: The C ity has been approached by North M emorial H ospitals and C linics s eeking to locate a walk-up C O V I D tes+ng clinic at 6100 S hingle Creek Parkw ay (Former Target Building). Currently, North M emorial operates tw o tes+ng facili+es in Robbins dale/North M inneapolis . O ne is a drive-thru clinic and the other is a s mall w alk-in clinic. W ith the weather ge:ng colder, they need to expand their walk-up facili+es and w ill be dis con+nuing their drive-thru facili+es. The current w alk-in facility is not large enough to accommodate demand and they are therefore s eeking a larger s pace to combine the to facili+es into. North Memorial is propos ing to lease the main por+on of the former Target building. They an+cipate s erving between 300 and 400 people per day, w ith approximately 30 people being s erved at any one +me. Customers w ill pre-register either ahead of +me or from their vehicles and then enter the building at their designated tes+ng +me. The total amount of +me that an it takes for someone to get through the process is 15-30 minutes depending on wait +mes. Tes+ng will be available at no cost. T he hours of opera+on would be Monday through Friday, 8:00 am to 4:00 pm. C ustomers would enter through the front door of the building, where they would check in. T hey would then exit out of the side door of the building. N orth Memorial an+cipates needing the space for up to six (6) months, though this could be extended depending on tes+ng needs in the future. T he lease would be structured as a six (6) month lease that converts to a month to month lease a@er that. A s part of the lease agreement North M emorial w ould be responsible for all u+lity cos ts associated with the building as w ell as s now removal and property upkeep. C urrently, there is one opera+ng bathroom in the building, that is an+cipated to be available for s taff only. North M emorial is not an+cipa+ng opening the other bathrooms or having public bathrooms available. North Memorial would be a monthly lease rate of $8,000. S taff is s eeking approval from the E DA of the Right of Entry A greement w hich w ould s erve as the leas e. B udget I ssues: Lease revenue would go to the E DA fund to offs et costs that have been incurred to manage and maintain the building. S trategic Priories and Values: S afe, S ecure, S table C ommunity AT TA C H M E N TS : D escrip+on U pload D ate Type Res olu+on 11/2/2020 Resolu+on LeDer D ra@ Lease A greement 11/4/2020 Backup M aterial Commissioner _________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2020-____ RESOLUTION APPROVING A RIGHT OF ENTRY AGREEMENT FOR USE OF THE FORMER TARGET BUILDING BY NORTH MEMORIAL HOSPITALS AND CLINICS WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (the “Authority”) purchased the former Target building located at 6100 Shingle Creek Pkwy in Brooklyn Center (the “Authority Property”); and WHEREAS, North Memorial Hospitals and Clinics (“North Memorial”) requested to use the Authority Property for six months to establish and operate a temporary walk-up COVID-19 testing facility; and WHEREAS, the Authority determines it is in the best interests of the community to allow the Authority Property to be used by North Memorial as a testing site in accordance with the proposed Right of Entry Agreement. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota (the “Board”), as follows: 1. The Board hereby approves the Right of Entry Agreement, substantially in accordance with the terms set forth in the form presented to the Board, to allow North Memorial to use the Authority Property as a temporary testing site. 2. The Board hereby authorizes the President and Executive Director to execute the Right of Entry Agreement on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder. _________________________ _________________________________ Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 1 RIGHT OF ENTRY AGREEMENT THIS RIGHT OF ENTRY AGREEMENT (“Agreement”) is made on this _____ day of November 2020, by and between North Memorial Hospitals and Clinics, a _________________ (“North”), and the Economic Development Authority of Brooklyn Center, Minnesota (“EDA”), a public body corporate and politic under the laws of Minnesota. The EDA and North may hereinafter be referred to individually as a “party” or collectively as the “parties.” Recitals A. The EDA is the owner of a certain property located at 6100 Shingle Creek Parkway, consisting of an approximately 117,000 square foot building and 9 acres of land and parking (the “Property”). B. North desires to use the Property to operate a walk-up COVID-19 testing facility (“Testing Facility”) for the public. C. The EDA agrees to permit North, its agents, employees, contractors, and invitees to use the Property as a Testing Facility in accordance with the terms and conditions of this Agreement. Agreement NOW, THEREFORE, in consideration of the premises and their mutual promises the parties agree as follows: 1. Right of Entry. The EDA hereby grants North, its agents, employees, contractors, and invitees a license to enter upon and use the Property as a Testing Facility. All use of the Property by North shall be conducted at the direction and sole expense of North. The EDA represents and warrants to North that the EDA owns the Property and, therefore, has the sole and exclusive authority and right to enter into this Agreement. North shall limit its use of the Property to a temporary Testing Facility. If North desires to expand or change its use of the Property it must receive prior written approval from the EDA. 2. Testing Facility Hours. North anticipates it will have the Testing Facility open during the following hours within a week. North may change these hours as it determines is needed. Monday-Friday Saturday Sunday 3. Term. Use of the Property by North may commence on or after November 9, 2020 and shall end on May 31, 2021, then convert to a month to month lease unless terminated earlier as provided herein. 4. Consideration. North agrees to pay the EDA $__________ a month, including for any partial month, as consideration for its use of the Property. The EDA, through the City of Brooklyn Center (“City”), will invoice North for the monthly payment, which North shall pay within 20 days of receipt. North also agrees to be responsible for all on-going maintenance costs associated with 2 its use of the Property including, but not limited to, utility charges and snow plowing costs. To the extent North is not able to directly assume those costs in its name, the EDA will include such costs on its monthly invoice. The Property is currently tax-exempt. Should the Property no longer be tax-exempt due to North’s use of the Property, North shall be responsible for reimbursing the EDA for the property taxes. North shall remain responsible for reimbursing the EDA for the property taxes until the Property’s status is changed back to tax-exempt, or the Property is leased to another party or sold. This obligation shall survive the termination or expiration of this Agreement. 5. Signage. North shall have the right to place temporary on-building and monument signage subject to City approval. Said signage must meet all requirements of the City Code and North is responsible for applying and paying for any necessary permits. 6. Indemnification of EDA. North agrees to and shall indemnify, defend and hold harmless the EDA, its agents, officers, employees and elected officials from and against any action, claim, damage, liability, loss, cost or expense (including without limitation attorneys' fees and costs) resulting from, or arising out of, its use of the Property. This obligation does apply to claims resulting directly from the EDA’s own negligence. Nothing in this Agreement waives the limits or exclusions from liability available to the EDA under Minnesota Statutes, chapter 466 or other law. 7. Conditions for Use of Property. North agrees to the following conditions related to the use of the Property: a. North is solely responsible for its use of the Property, the operations of the Testing Facility, and for obtaining any approvals needed to operate the Testing Facility on the Property. b. North shall maintain the Property and properly operate the building’s systems during the period of its use. c. North is responsible for locking and otherwise securing the building when it is not in use. d. North shall return the Property to the same condition as prior to its use to the greatest extent practicable, normal wear and tear excepted. e. North may not assign this Agreement, sublet, or otherwise allow others to use the Property. f. The EDA and City have the right to enter the Property at all reasonable times to inspect it, respecting any safety protocols North may require to enter the Testing Facility. g. North shall not cause the building or Property to be damaged. If its use of the Property results in damage to the Property, including any fixtures or personal property, North shall be responsible for the repairing it to at least as good a condition as prior to the damage. h. North understand and agrees the EDA makes no representations regarding the heating, cooling, or other systems in the building. In the event any such system may fail, or North 3 otherwise determines they are not sufficient for its purposes, North may provide the EDA written notice that it is vacating the Property. The EDA shall have no responsibility for repairing any building systems or in any way modifying or improving the Property to accommodate North’s use. i. North shall keep and maintain the Property free from debris and garbage. North is responsible for properly disposing of any medical waste and other waste and garbage generated from its use of the Property. j. North is not acquiring any interest, leasehold or otherwise, in the Property by this Agreement and is, instead, obtaining a license to use the Property with the permission of the EDA as provided herein. k. Any alteration(s) to the Property shall require preapproval from the EDA’s Executive Director. 8. Insurance. North shall ensure that its employees, and anyone else for which North is responsible, that enter the Property pursuant to this Agreement shall be insured during the time they are present on the Property in accordance with the following minimum requirements: a. Workers' Compensation Insurance with limits as provided by statute, with all necessary statutory elections to provide coverage for and/or claims made by any person doing work on the Property pursuant to this Agreement; b. Employer's liability insurance (often included as coverage (b) in the Workers' Compensation policy) with limits of $100,000; c. Commercial General Liability Insurance (including coverage for contractual liability, products and completed operations liability, and damage to the Property) with minimum combined single limits of $1,500,000 per occurrence; and d. Professional liability insurance with limits of $2,000,000 per occurrence. An umbrella or excess liability insurance policy may be used to supplement North’s policy limits to satisfy the coverage requirements contained herein. 9. Termination. Either party shall have the right to terminate this Agreement with 30 day written notice to the other party. The EDA may terminate this Agreement immediately upon written notice of termination to North if it determines, in the EDA’s sole discretion, North is not complying with any term or condition of this Agreement. 10. Governing Law. This Agreement shall be interpreted in accordance with and be governed by the laws of the State of Minnesota. 11. Entire Agreement. This document, including the recitals which are incorporated herein, constitutes the entire agreement between the parties regarding this matter. 4 12. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 13. Amendment. This Agreement may be amended by the parties only by written instrument executed in accordance with the same procedures and formality followed for the execution of this Agreement. 14. No Third-Party Rights. This Agreement is entered into for the sole benefit of the parties and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under, or to this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in their names and behalves and on or as of the date and year first above written. North Memorial Hospitals and Clinics By: Its:__________________________________ Economic Development Authority of Brooklyn Center, Minnesota By:__________________________________ Mike Elliott, President By__________________________________ Curt Boganey, Executive Director