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HomeMy WebLinkAbout2020 09-28 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 by dialing 1-312-535-8110 A ccess Code: 133 316 6939 S eptember 28, 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 September 14, 2020 meeting b.Resolutions Establishing the Micro-Business Relief Program and Transferring Cares Act F unds to the E conomic Development Authority - Motion to approve a resolution approving establishment of the Micro- Businesses Relief Program - Motion to approve a resolution approving transferring CARES Act funds to the Economic Development Authority of Brooklyn Center to administer the program 4.Commission Consideration Items 5.Adjournment Economic Development Authority DAT E:9/28/2020 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 mee6ngs must be documented and approved by the governing body. B udget I ssues: - None S trategic Priories and Values: O pera6onal Excellence AT TA C H M E N TS : D escrip6on U pload D ate Type 9/14 Minutes 9/23/2020 Backup M aterial 09/14/20 -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 SEPTEMBER 14, 2020 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Mike Elliott at 9:47 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 CONSENT AGENDA Commissioner Graves moved and President Elliott seconded to approve the Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. August 24, 2020 – Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2020-12 APPROVING THE PURCHASE AGREEMENT, DEVELOPMENT AGREEMENT AND CONVEYANCE OF CERTAIN PROPERTY TO C-ALAN HOMES, LLC Community Development Director Meg Beekman reviewed a resolution to approve agreements with C-Alan homes for EDA-owned properties located at 6000 and 6900 blocks of Brooklyn Boulevard. The properties were acquired by the EDA to improve safety and access on Brooklyn Boulevard and combine under-utilized sites for higher intensity development. C-Alan Homes’ proposal is for 13 triplex units and site improvements on two sites. Ms. Beekman reviewed the history of the project, including the second reading of the PUD rezoning and public hearing at this evening’s City Council Regular Session meeting. The 09/14/20 -2- DRAFT purchase agreement includes an analysis from Ehlers related to affordable housing that will be mixed throughout the development, as well as improvements related to Brooklyn Boulevard reconstruction project, for a total cost of $304,320, assuming a 12-year requirement. Ms. Beekman stated the purchase agreement includes a development agreement recorded as deed restriction as well as and a reverter clause that is fairly standard in EDA purchase agreements. Ms. Beekman stated City Staff recommends consideration of approval of purchase and development agreement and conveyance of land to C Alan Homes LLC. President Elliott moved and Commissioner Graves seconded to extend the meeting past 10:00 p.m. Motion passed unanimously. President Elliott opened the public hearing at 10:00 p.m. There were no comments. President Elliott moved and Commissioner Lawrence-Anderson seconded to close the Public Hearing. Motion passed unanimously. President Elliott moved and Commissioner Graves seconded adopt RESOLUTION NO. 2020-12 Approving the Purchase Agreement, Development Agreement and Conveyance of Certain Property to C-Alan Homes, LLC. Motion passed unanimously. 5. ADJOURNMENT President Elliott moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 10:04 p.m. Motion passed unanimously. Economic Development Authority DAT E:9/28/2020 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 Establis hing the Micro-Busines s Relief P rogram and Trans ferring Cares A ct F unds to the Economic D evelopment A uthority B ackground: O n May 4, 2020, The E DA authoriz ed the crea+on of a S mall Bus iness Forgivable L oan program to provide assistance to micro and s mall bus inesses in the city w hich had experienced hards hip as a res ult of the pandemic. The use of $150,000 of E DA reserve funds was authoriz ed for the program, which would provide forgivable loans up to $3,000 to Brooklyn Center s mall bus inesses . To date approximately 25 forgivable loans have been provided for a total cos t of $75,000. The program w as not as highly s ought a=er as staff an+cipated, and applica+ons to the program have significantly tapered off. Part of the reason for the lack of interes t may have been the pres ence of larger grants available through H ennepin County and D E E D as w ell as the addi+onal unemployment that was available during that +me. The C ity had partnered with both L I B A and A C E R to provide technical assistance and outreach and engagement to local bus inesses to make them aw are of available programs and to assist with making applica+ons. This s trategy was highly s uccessful and res ulted in dozens of s mall bus inesses receiving funding from outside s ources . The C ity has s ince received C A R E S A ct funds w hich are intended to provide assistance to ci+es and communi+es w ith C O V I D -related expenses and services. S taff is w orking with the City's aCorneys to look at programs that w ere created prior to the receipt of the C A R E S A ct funding to ens ure as much as possible is reimburs ed through C A R E S A ct funds. This includes the s mall bus iness forgivable loan program. At present there are far fewer resources available to s upport small and micro bus inesses . The addi+onal $600 per w eek that w as provided through unemployment is no longer available and both D E E D 's and H ennepin C ounty's as s is tance programs have been s pent down. Working through the C ity's community partners , we have iden+fied that local bus inesses are now facing addi+onal need related to the pandemic. I den+fied need includes access to technical as s is tance, access to equipment to assist with transi+oning their bus inesses to a post-C O V I D economy, funding to support reopening and the crea+on and implementa+on of pandemic preparedness plans , as w ell as funding to support rent and payroll payments . To address this need, s taff has worked with both A C E R and L I B A to des ign individual programs that would be provided on a contract bas is directly by these local partners. S taff has worked with the City's aCorneys to ensure that the programs w ill meet federal requirements to allow the use of C A R E S A ct funds . AC E R A C E R currently adminis ters a microgrant program that s upports small busines s es in a cus tomized w ay. A pplicants to the program meet one-on-one w ith A C E R s taff to determine their individual needs and create a custom grant opportunity to addres s them. A C E R has proposed to modify this program to comply with C A R E S A ct regula+ons which would allow A C E R to dis tribute up to $50,000 of direct aid to local busines s es. The C ity would provide the C A R E S A ct funds directly to A C E R w hich w ould adminis ter the program on the City's behalf. A C E R w ould be responsible for solici+ng applica+ons , working w ith bus inesses ow ners to determine appropriate and eligible uses of funds based on predetermined eligibility, collec+ng paperw ork and documenta+on, and providing the funds to the busines s es. F unds w ould need to be spent by November 1. A C E R w ill then provide a report along w ith required documenta+on to the C ity. The C ity would be res pons ible for execu+ng grant agreements w ith the busines s es as they come forward for applica+on. A pplicants will be able to receive a maximum of $7,500 of grant funds . F unds can go towards reimburs ements of C O V I D -related expenditures that were made a=er March 1. They can als o be used to cover reopening expenses , purchase of equipment or other technology to as s is t the busines s w ith adap+ng, payroll, rent, or other bus iness-related expenses . L I B A L I B A has proposed a different approach to s mall bus inesses s upport. L I B A is seeking C A R E S A ct funds to provide 30 Brooklyn C enter busines s es with a laptop, Q uick Books so=ware, and Micros o= O ffice S uite. Eligible bus inesses w ould be those that have been financially impacted by the pandemic and are in need of technology to adapt their busines s es to a pos t-C O V I D economy. Each busines s ow ner w ould then go through a training program to provide training on the us e of the technology. U pon comple+ng the program, each bus iness would receive a $1,200 grant to cover expens es related to adap+ng their busines s es, reopening, rent, payroll, or other busines s es related expenses . T he total cost of the program would be $97,920. L I B A would be responsible for solici+ng applicants, purchasing the technology following the C ity's procurement rules, seIng up the laptops and so=ware, providing the training, collec+ng documenta+on and administering the grant agreements and payments to the businesses. T he C ity would be responsible for execu+ng the grant agreements with the businesses as they were signed. T he C ity's aCorneys have prepared consul+ng contracts and grant agreements that conform to the C AR E S Act guidelines. T hey are aCached to this report. E DA Ac on T he E DA is being asked to take two ac+ons: Authorize the establishment of both programs with AC E R and L I B A Transfer C A R E S A ct funds to the E DA for the purpose of funding both programs B udget I ssues: $147,920 of C A R E S A ct funds for both programs. 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 C ons ul+ng Contract with A C E R 9/23/2020 Backup M aterial C ons ul+ng Contract with L I B A 9/23/2020 Backup M aterial G rant A greement for A C E R P rogram 9/22/2020 Backup M aterial G rant A greement for L I B A P rogram 9/22/2020 Backup M aterial Res olu+on Establis hing M icro-busines s Relief P rogram 9/23/2020 Resolu+on LeCer Res olu+on to Trans fer C A R E S A ct F unds to the E DA 9/23/2020 Resolu+on LeCer 1 AGREEMENT FOR PROFESSIONAL SERVICES BROOKLYN CENTER CARES ACT EMERGENCY BUSINESS ASSISTANCE PROGRAM This Agreement for Professional Services (“Agreement”) is made as of ______________, 2020 (the “Effective Date”) between the Economic Development Authority of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 ("EDA"), and African Career, Education & Resource (“ACER”)., a Minnesota nonprofit corporation located at ________________________, Minnesota _____ ("Consultant"). The City of Brooklyn Center has determined that providing emergency financial assistance to its business community during the ongoing public health emergency related to COVID-19 is a necessary expenditure and has determined that it will dedicate a portion of Coronavirus Relief Funds that it has received from the State of Minnesota, as authorized by Congress pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), for such program to be administered through the EDA. The parties desire for the program to be administered by the EDA with professional services provided by the Consultant, and the purpose of this Agreement is to set forth terms and conditions for the provision of certain services related to the program by the Consultant for the EDA. This Agreement amends and supersedes the Emergency Technical Assistance for Small Business Impacted by COVID-19 Agreement, entered into between Consultant and the City of Brooklyn Center on May 11, 2020. Accordingly, the City and the Consultant agree as follows: 1. Consultant's Services. The Consultant agrees to provide professional services consisting of providing technical assistance and administration of a Micro-business Relief Grant Program (the “Program”), as described in Exhibits A and B attached and made a part of this Agreement (“the Work”). If there is any conflict between the language of this document and the language of Exhibits A or B, the language of this document prevails. 2. EDA’s Services. The City has developed the Program’s guidelines, including all eligibility criteria for the Program, maintains final eligibility determination for all grant award recipients, and maintains all programmatic decision-making responsibility. The City has provided the Program Guidelines to the Consultant as provided in Exhibit B, will determine applicant eligibility, approve distribution of Program Funds to awardees, and execute grant documents with awardees. 3. Source of Funds. Consultant acknowledges that the source of funds for Professional Services Agreement are federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Coronavirus Relief Funds provided to the EDA by the City of Brooklyn Center City Council as emergency assistance grants through the Program. Consultant acknowledges that these Grant Funds may be subject to federal and state taxes. 4. Project Manager and Staffing. The Consultant has designated its Economic 2 Development Program Manager, Denise Butler, as the Consultant’s point of contact regarding this Agreement. They will oversee and supervise other Consultant staff members as necessary to facilitate the completion of the Work in accordance with the terms of this Agreement. The Consultant may not remove or replace the designated point of contact without the EDA’s prior approval. The EDA has designated Meg Beekman, Community Development Director, as the City’s point of contact regarding this Agreement. 5. Time for Performance of Services. The Consultant must perform the Work by November 1, 2020 or within such other time period as the parties may agree to in writing. If Consultant is delayed in performance due to any cause beyond its reasonable control, such as strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of EDA, the time for performance may be extended by the period of time lost by reason of the delay at the sole discretion of the City. 6. Program Funds. Within 10 days after execution of this Agreement, EDA will pay Consultant the sum of $50,000 (the “Program Funds”) which Funds must be used exclusively for performing the Work. EDA has the right, in its sole discretion, to terminate the Program at any time and to notify Consultant in writing of the Program termination. The EDA may make the termination of the Program effective immediately, and Consultant may not process any new applications after the effective date of Program termination but may continue to process payments for applications approved prior to the effective date of Program termination. The EDA’s notice of termination of the Program will operate as termination of this Agreement as provided in section 13 of this Agreement. Within 14 days after termination of the Agreement, but no later than November 15, 2020, based upon this section 5, Consultant must return any remaining Program Funds. 7. Reports. Consultant must maintain records of the receipt and expenditures of all Program Funds; such records are to be maintained in accordance with Exhibit A. 8. Compensation for Services. EDA agrees to pay the Consultant an administrative fee of 10 percent of the grant funds dispersed through the Program. The rate paid is inclusive of all out-of-pocket or overhead costs that Consultant may incur, including but not limited to postage and copies, and Consultant is solely responsible for all overhead and out-of-pocket expenses incurred in connection with the performance of this Agreement. 9. Method of Payment. The Consultant must submit itemized invoices for services provided to the EDA on a monthly basis and provide a final report by November 1, 2020 as provided in the attached Exhibit A. Consultant is encouraged, but not required, to submit invoices electronically by emailing a copy of the invoice and any supporting documentation, in a PDF format, to Meg Beekman, Community Development Director. Invoices submitted will be paid in the same manner as other claims made to the EDA. Consultant may request that the EDA make electronic (ACH) payments to Consultant, by contacting the EDA’s accounts payable officer. By making the claim for payment, the Consultant declares that the account, claim or 3 demand is just and correct and that no part of it has been paid. 10. Audit Disclosure. Under Minn. Stat. § 16C.05, subd. 5, the Consultant’s books, records, documents, and accounting procedures and practices relevant to this Agreement, including books and records of any approved subcontractors, are subject to examination by the EDA and/or the State Auditor or Legislative Auditor, as appropriate for a minimum of six years after the termination of this Agreement. 11. Document Ownership. All finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports prepared by the Consultant will become the property of the EDA upon termination of this Agreement, but Consultant may retain copies of such documents as records of the services provided. Except to the extent that Minnesota Statutes Chapter 466 limits the EDA’s liability, the EDA agrees to defend and indemnify the Consultant for any claims or losses resulting from the EDA’s use of the documents in a manner not approved by the Consultant or not contemplated by the parties at the time of the preparation. 12. Term. The term of this Agreement is from the Effective Date through November 1, 2020, the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as stated in this Agreement. 13. Termination. This Agreement may be terminated by either party by seven days' advance written notice delivered to the other party at the address written above. Upon termination under this provision if there is no fault of the Consultant, the Consultant will be paid for services rendered until the effective date of termination. If however, the City terminates the Agreement because the Consultant has failed to perform in accordance with this Agreement, no further payment will be made to the Consultant, and the EDA may retain another Consultant to undertake or complete the Work. 14. Subcontractor. The Consultant may not enter into subcontracts for services provided in this Agreement without the express written consent of the City. The Consultant agrees to pay any subcontractor within ten days of the Consultant’s receipt of payment from the City for undisputed services provided by the subcontractor. The Consultant must pay interest of 1.5% per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For any unpaid balance of less than $100, the Consultant must pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Consultant must be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. This paragraph is inserted in this Agreement pursuant to Minn. Stat. §471.425, Subd. 4a. 15. Independent Contractor. At all times and for all purposes under this Agreement, the Consultant is an independent contractor and not an employee of the City. No statement in this Agreement may be construed to find the Consultant an employee of the City. 4 16. Assignment. Neither party may assign this Agreement without the written consent of the other party. 17. Services Outside Contract. The EDA will not honor claims for services furnished by the Consultant unless this Agreement specifically provides for those services. 18. Worker’s Compensation. This paragraph is inserted in this Agreement pursuant to Minn. Stat. § 176.182. Consultant certifies that Consultant is in compliance with Minn. Stat. chapter 176, pertaining to workers’ compensation insurance coverage. Prior to executing this Agreement, Consultant agrees to provide City with evidence of Consultant’s compliance with the workers’ compensation insurance coverage required by Minn. Stat. § 176.181, subd. 2, in the form of either a certificate of insurance or written order of the Commissioner of Commerce permitting self-insurance (“Evidence of Insurance”). Consultant warrants that it will maintain the required workers’ compensation insurance coverage at all times during the performance of this Agreement and that the Evidence of Insurance provided to the EDA is current and in force and effect. 19. Severability. The provisions of this Agreement are severable. If any portion is held by a court of competent jurisdiction to be contrary to law, that decision will not affect the remaining provisions of the Agreement. 20. Entire Agreement. The entire agreement of the parties is contained in this Agreement. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter of this Agreement as well as any previous agreements presently in effect between the parties relating to the same subject matter. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement will be valid only when expressed in writing and signed by the parties, unless otherwise provided in this Agreement. 21. Compliance with Laws and Regulations. In providing services under this Agreement, the Consultant must abide by all statutes, ordinances, rules, and regulations pertaining to the provision of services to be provided. Any violation constitutes a material breach of this Agreement and entitles the EDA to immediately terminate this Agreement. 22. Government Data. Contractor acknowledges that, to the extent this Agreement requires Contractor to perform a government function, all of the data created, collected, received, stored, used, maintained or disseminated by Contractor in performing government functions is subject to the requirements of the Minnesota Government Data Practices Act (Minn. Stat. Ch. 13, the “MGDPA”), and that Contractor must comply with the MGDPA as if Contractor were a government entity, including the remedies in Minn. Stat. § 13.08. Contractor agrees to promptly notify EDA of any request for data that Contractor receives related to this Agreement. 23. Equal Opportunity. During the performance of this contract, the Consultant must not discriminate against any employee or applicant for employment, or participant in a 5 program provided under this Agreement, by reason of any characteristic or classification protected by state or federal law. The Consultant must post in places available to employees and applicants for employment, notices setting forth the provisions of this non- discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant must incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. 24. Waiver. Any waiver by either party of a breach of any provisions of this Agreement will not affect, in any respect, the validity of the remainder of this Agreement. 25. Governing Law. This Agreement will be controlled by the laws of the State of Minnesota, without regard to conflict of law provisions. 26. Disputes. In an effort to resolve any conflicts that arise during or following the completion of the services described in this Agreement, the dispute will first be submitted to non- binding mediation unless the parties mutually agree otherwise. The cost of mediation will be shared equally by the parties. If the parties are unable to resolve the dispute through mediation, the parties may pursue all remedies available under law. [remainder of this page left blank intentionally] 6 Signature Page – City Signature Page – EDA IN TESTIMONY WHEREOF, each of the parties hereto has caused these presents to be effective as of the day and year first above written. ACER By: Name: Denise Butler Its: Economic Development Director By: Name: Nelima Sitati Munene Its: Executive Director ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER By: Name: Its: President By: Name: Its: Executive Director A-1 Exhibit A Description of work: Consultant will perform Tasks as provided herein in regards to administering the Brooklyn Center Micro-business Relief Grant Program (“Program”), as detailed in the Program Guidelines, provided in Exhibit B, a program that the City of Brooklyn Park has determined to be necessary in light of the ongoing public health emergency related to COVID-19. Consultant agrees that Program Funds may not be used to substitute, replace or diminish the funds provided to Brooklyn Center residents through any other program that Consultant administers; it is the intent of this Agreement that Program Funds are to be an additional source of financial assistance for Brooklyn Center residents directly impacted by the COVID-19 health pandemic above and beyond what would otherwise be available from any other programs that Consultant may administer. Consultant tasks Task 1: Gather basic information of locally owned small and micro businesses in the city of Brooklyn Center. These businesses may or may not be registered with the Secretary of State office. This list will be added to the business directory being prepared by the EDA. Task 2: Disseminate information about programs and benefits available to small businesses to those that may benefit from them. Task 3: Technical Support A. For businesses that need it, provide basic training for online business tools such as phone and video conferencing chat rooms, and other useful means of conducting business remotely. B. For businesses that need it, assist with developing a web presence by building out their websites, social media presence, and other means of selling online to customers remotely. C. Provide technical assistance support on a one-on-one basis to apply for any available financial COVID-19 disaster relief they may qualify for. The goal of one-on-one consulting services is to help business owners: o Understand which funding or relief package they may qualify o Prepare, compile, and organize their documents that may be required for the relief package. Such documents may include an income statement, cash flow, and others. o Complete and submit online application forms. This will include limited onsite or home visits during this pandemic to small business owners, telephonic support, documentation, compilation, and navigation of online/paper submission. It is anticipated that each business that applies A-2 will take two hours of one on one technical support. Additional may be needed if it is critical to help them secure the relief package Task 4: Manage & Distribute Application Process for Program. It is anticipated that each business that each business that applies will take two hours of staff time to administer the application: A. Distribute Program Guidelines, as provided in Exhibit B, to businesses within Brooklyn Center. B. Receive and review applications using established eligibility criteria in accordance with the requirements for spending as described in Exhibit B and make recommendations to the EDA regarding whether eligibility criteria are met and provide such recommendation to the for EDA final eligibility determination. C. Communicate with applicants if application is incomplete. D. Upon EDA’s approval of eligibility and awarding of Grant, Consultant shall coordinate with EDA and awardee to facilitate signing of Grant documents, distribute the Grant from Program Funds, solicit and manage documentation from awardees including receipts demonstrating that funds were spent on eligible activities, W-9s, and other documentation the Economic Development Authority deems necessary. E. Coordinate with City and awardee to facilitate signing of Grant documents. Task 5: Final Report. By November 1, 2020, or upon request from the City, the Consultant shall submit a report that includes: A. A brief narrative description of the uses of Program funds. B. Provide a report on the results of the Program including information on which businesses received one on one technical support, how much each grant amount was, and documentation on how the funds were utilized by the businesses. C. Report on how Program funds were used by Consultant, including documentation such as recipes, invoices that demonstrate Program Funds were used in accordance with this Agreement. Exhibit B – Brooklyn Center Emergency Assistance Program Guidelines 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 City of Brooklyn Center has determined 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 COVID-19 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 COVID- 19health emergency. Grants are distributed on an as-needed basis while funds are available. Business owners will submit a grant application and complete a one-on-one questionnaire where their individual needs and eligibility will be assessed. Applicants chosen will be required to enter into a Grant Agreement with the EDA. Grant Amount: Minimum – $2,500 Maximum – $7,500 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 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 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. Application Process: • Complete a grant application • Complete a one-on-one questionnaire to determine need and eligibility • Submit a w-9 and execute a grant agreement with the Economic Development Authority of Brooklyn Center • Funds are distributed within 5-7 days via check to the business Questions: Any questions related to the application process should be directed to: Denise Butler, Program Manager, ACER: 763-318-3750 or by email at dbutler@acerinc.org Exhibit B – Brooklyn Center Emergency Assistance Program Guidelines 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 City of Brooklyn Center has determined 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 COVID-19 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. Grants are distributed on an as-needed basis while funds are available. Business owners will submit a grant application and complete a one-on-one questionnaire where their individual needs and eligibility will be assessed. Applicants chosen will be required to enter into a Grant Agreement with the EDA. Grant Amount: $1,200 Additional Benefits: Laptop Computer & Related Software One-day Training & One-month of Technical Support 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 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 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. Application Process: • Complete a grant application • Submit a w-9 and execute a grant agreement with the Economic Development Authority of Brooklyn Center • Funds are distributed within 5-7 days via check to the business Questions: Any questions related to the application process should be directed to: Jackson George, Executive Director: 612-607-4233 or by email at Jackson@libausa.org 1 OVID-19 EMERGENCY GRANT AGREEMENT THIS GRANT AGREEMENT (“Agreement”) is made effective as of __________________, 2020, by and between [name of grantee], a Minnesota [type of business] (the “Grantee”), and the Economic Development Authority of Brooklyn Center, a public body corporate and politic under the laws of Minnesota (“Lender”). RECITALS A. Grantor has duly established its COVID-19 Micro-business Relief Grant Program (the “Program”) and has approved policy and guidelines for said Program (the “Program Guidelines”). B. Grantee has submitted an application for a grant (the “Grant Application”) pursuant to the Program Guidelines, and Grantor has approved a grant to the Grantee in the maximum principal amount of $_______ (the “Grant”) to pay a portion of the costs of qualifying expenditures under the Grant Guidelines as set forth in the Grant Application, in connection with Grantee’s business located at ______________ in the City of Brooklyn Center, Minnesota (the “City”) (the “Grant Activities”). C. The Grantor and Grantee have negotiated the terms of the Grant, and now desire to memorialize such terms in this Agreement. ACCORDINGLY, to induce Grantor to make the Grant to Grantee, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. The Grant Amount. Subject to and upon the terms and conditions of this Agreement, the Program Guidelines, and the Grant Application (together, the “Grant Documents”), Grantor agrees to grant to Grantee the sum of ______________ and no/100ths Dollars ($___________) and provide Grantee with computer hardware and software. Proceeds of the Grant shall be disbursed for the Grant Activities approved pursuant to the Grant Documents in accordance with Section 2 hereof. 2. Disbursement of Grant Proceeds. (a) All Grant proceeds shall be paid to Grantee in accordance with the terms and conditions of the Grant Documents. Notwithstanding anything to the contrary herein, any costs of the Grant Activities exceeding the amount to be reimbursed under this Agreement shall be the sole responsibility of the Grantee. (b) On the date of closing on the Grant, Grantor shall direct African Career, Education & Resource (ACER) to distribute all Grant proceeds to the Grantee and provide computer hardware and software. The disbursement of proceeds of the Grant will be made subject to the conditions precedent that prior to or as of the date of disbursement: 2 (i) The Grantor has received from Grantee, without expense to Grantor, an executed copy of this Agreement; (ii) Grantee is in compliance with the terms of the Grant Documents. 3. Representations and Warranties. Grantee represents and warrants to Grantor that: (a) Grantee is duly authorized and empowered to execute, deliver, and perform this Agreement and to receive the Grant from Grantor. (b) The execution and delivery of this Agreement, and the performance by Grantee of its obligations under the Grant Documents, do not and will not materially violate or conflict with any applicable provision of law and do not and will not materially violate or conflict with, or cause any default or event of default to occur under, any material agreement binding upon Grantee. (c) The execution and delivery of this Agreement has been duly approved by all necessary action of Grantee, and this Agreement has in fact been duly executed and delivered by Grantee and constitutes its lawful and binding obligation, legally enforceable against it. (d) Grantee warrants that it shall keep and maintain books, records, and other documents relating directly to the receipt and disbursements of Grant proceeds and that any duly authorized representative of Grantor shall, with reasonable advance notice, have access to and the right to inspect, copy, audit, and examine all such books, records, and other documents of Grantee pertaining to the Grant until the completion of all closeout procedures and the final settlement and conclusion of all issues arising out of this Grant. (e) Grantee warrants that to the best of its knowledge, it has fully complied with all applicable state and federal laws reasonably relevant to this Agreement and will continue to comply throughout the terms of this Agreement. If at any time Grantee receives notice of noncompliance from any governmental entity, Grantee agrees to take any necessary action to comply with the state or federal law in question. (f) Grantee warrants that it will use the proceeds of the Grant made by Grantor solely for the Grant Activities, and on October 23, 2020, Grantee shall provide to ACER in writing a brief report in substantially the form included in the Grant Application, specifying how the entirety of the Grant funds have been utilized and providing evidence in the form of paid invoices, statements, or similar. (g) Grantee acknowledges that Grant funds may only be used for eligible expense under the Program Guidelines. If it is determined by an audit or review that Grant funds have been misspent, Grantee shall be liable to Grantor for the amount deemed to have been misspent. 3 4. No Business Subsidy. The parties agree that the Grant is not a business subsidy as defined in Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000. 5. Event of Default by Grantee. The following shall be Events of Default under this Agreement: (a) failure to complete any part of the Grant Activities by October 23, 2020; (b) any representation or warranty made by Grantee herein is false when made; (c) any material breach or failure of Grantee to perform any material term or condition of this Agreement not specifically described as an Event of Default in this Agreement and such breach or failure continues for a period of thirty (30) days after Grantor has given written notice to Grantee specifying such default or breach, unless Grantor agrees in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, Grantor will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Grantee within the applicable period and is being diligently pursued until the Event of Default is corrected, but no such extension shall be given for an Event of Default that can be cured by the payment of money (i.e., payment of taxes, insurance premiums, or other amounts required to be paid hereunder). 6. Grantor's Remedy upon Grantee's Default. Upon an Event of Default by Grantee and after provision by Grantor of written notice, Grantor shall have the right to suspend or terminate its performance under this Agreement. In addition, Grantee will be ineligible for future grants under the Program. 7. Indemnification. (a) Grantee shall and does hereby agree to indemnify against and to hold Grantor, and its officers, agents, and employees, harmless of and from any and all liability, loss, or damage that it may incur under or by reason of this Agreement, and of and from any and all claims and demands whatsoever that may be asserted against Grantor by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained herein. (b) This indemnification and hold harmless provision shall survive the execution, delivery, and performance of this Agreement and the payment by Grantor of any portion of the Grant. (c) Nothing in this Agreement shall constitute a waiver of or limitation on any immunity from or limitation on liability to which Grantee is entitled under law. 8. Miscellaneous. 4 (a) Waiver. The performance or observance of any promise or condition set forth in this Agreement may be waived, amended, or modified only by a writing signed by Grantee and Grantor. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. (b) Assignment. This Agreement shall be binding upon the parties, their successors, and assigns. All rights and powers specifically conferred upon Grantor may be transferred or delegated by Grantor to any of its successors and assigns. Grantee's rights and 4 obligations under this Agreement may be assigned only when such assignment is approved in writing by Grantor; except that if such assignment is made to an affiliate or subsidiary of Grantee, Grantee may assign any of its rights or obligations to such affiliate or subsidiary upon written notice to the Grantor. (c) Governing Law. This Agreement is made and shall be governed in all respects by the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (d) Severability. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. (e) Notice. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Grantor: Economic Development Authority of Brooklyn Center 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 Attn: Executive Director To Grantee: Attn: __________________ (f) Termination. Upon the date of receipt by the Grantor of Grantee’s written report on Grantee’s expenditure of Grant proceeds as described in paragraph 3 (f) of this Agreement, this Agreement shall terminate and neither party shall have any further obligation to the other. (g) Entire Agreement. This Agreement, together with the Grant Documents, which are incorporated by reference, constitutes the complete and exclusive statement of all mutual understandings between the parties with respect to this Agreement, superseding 5 all prior or contemporaneous proposals, communications, and understandings, whether oral or written, concerning the Grant. (h) Headings. The headings appearing at the beginning of the several sections contained in this Agreement have been inserted for identification and reference purposes only and shall not be used in the construction and interpretation of this Agreement. IN TESTIMONY WHEREOF, each of the parties hereto has caused these presents to be effective as of the day and year first above written. [BORROWER NAME] By: Name: Its: [Title of Signatory] ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER By: Name: Its: President By: Name: Its: Executive Director 1 OVID-19 EMERGENCY GRANT AGREEMENT THIS GRANT AGREEMENT (“Agreement”) is made effective as of __________________, 2020, by and between [name of grantee], a Minnesota [type of business] (the “Grantee”), and the Economic Development Authority of Brooklyn Center, a public body corporate and politic under the laws of Minnesota (“Lender”). RECITALS A. Grantor has duly established its COVID-19 Micro-business Relief Grant Program (the “Program”) and has approved policy and guidelines for said Program (the “Program Guidelines”). B. Grantee has submitted an application for a grant (the “Grant Application”) pursuant to the Program Guidelines, and Grantor has approved a grant to the Grantee in the maximum principal amount of $_______ (the “Grant”) to pay a portion of the costs of qualifying expenditures under the Grant Guidelines as set forth in the Grant Application, in connection with Grantee’s business located at ______________ in the City of Brooklyn Center, Minnesota (the “City”) (the “Grant Activities”). C. The Grantor and Grantee have negotiated the terms of the Grant, and now desire to memorialize such terms in this Agreement. ACCORDINGLY, to induce Grantor to make the Grant to Grantee, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. The Grant Amount. Subject to and upon the terms and conditions of this Agreement, the Program Guidelines, and the Grant Application (together, the “Grant Documents”), Grantor agrees to grant to Grantee the sum of ______________ and no/100ths Dollars ($___________) and provide Grantee with computer hardware and software. Proceeds of the Grant shall be disbursed for the Grant Activities approved pursuant to the Grant Documents in accordance with Section 2 hereof. 2. Disbursement of Grant Proceeds. (a) All Grant proceeds shall be paid to Grantee in accordance with the terms and conditions of the Grant Documents. Notwithstanding anything to the contrary herein, any costs of the Grant Activities exceeding the amount to be reimbursed under this Agreement shall be the sole responsibility of the Grantee. (b) On the date of closing on the Grant, Grantor shall direct the Liberian Business Association (LIBA) to distribute all Grant proceeds to the Grantee and provide computer hardware and software. The disbursement of proceeds of the Grant will be made subject to the conditions precedent that prior to or as of the date of disbursement: 2 (i) The Grantor has received from Grantee, without expense to Grantor, an executed copy of this Agreement; (ii) Grantee is in compliance with the terms of the Grant Documents. 3. Representations and Warranties. Grantee represents and warrants to Grantor that: (a) Grantee is duly authorized and empowered to execute, deliver, and perform this Agreement and to receive the Grant from Grantor. (b) The execution and delivery of this Agreement, and the performance by Grantee of its obligations under the Grant Documents, do not and will not materially violate or conflict with any applicable provision of law and do not and will not materially violate or conflict with, or cause any default or event of default to occur under, any material agreement binding upon Grantee. (c) The execution and delivery of this Agreement has been duly approved by all necessary action of Grantee, and this Agreement has in fact been duly executed and delivered by Grantee and constitutes its lawful and binding obligation, legally enforceable against it. (d) Grantee warrants that it shall keep and maintain books, records, and other documents relating directly to the receipt and disbursements of Grant proceeds and that any duly authorized representative of Grantor shall, with reasonable advance notice, have access to and the right to inspect, copy, audit, and examine all such books, records, and other documents of Grantee pertaining to the Grant until the completion of all closeout procedures and the final settlement and conclusion of all issues arising out of this Grant. (e) Grantee warrants that to the best of its knowledge, it has fully complied with all applicable state and federal laws reasonably relevant to this Agreement and will continue to comply throughout the terms of this Agreement. If at any time Grantee receives notice of noncompliance from any governmental entity, Grantee agrees to take any necessary action to comply with the state or federal law in question. (f) Grantee warrants that it will use the proceeds of the Grant made by Grantor solely for the Grant Activities, and on October 23, 2020, Grantee shall provide to LIBA in writing a brief report in substantially the form included in the Grant Application, specifying how the entirety of the Grant funds have been utilized and providing evidence in the form of paid invoices, statements, or similar. (g) Grantee acknowledges that Grant funds may only be used for eligible expense under the Program Guidelines. If it is determined by an audit or review that Grant funds have been misspent, Grantee shall be liable to Grantor for the amount deemed to have been misspent. 3 4. No Business Subsidy. The parties agree that the Grant is not a business subsidy as defined in Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000. 5. Event of Default by Grantee. The following shall be Events of Default under this Agreement: (a) failure to complete any part of the Grant Activities by October 23, 2020; (b) any representation or warranty made by Grantee herein is false when made; (c) any material breach or failure of Grantee to perform any material term or condition of this Agreement not specifically described as an Event of Default in this Agreement and such breach or failure continues for a period of thirty (30) days after Grantor has given written notice to Grantee specifying such default or breach, unless Grantor agrees in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, Grantor will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Grantee within the applicable period and is being diligently pursued until the Event of Default is corrected, but no such extension shall be given for an Event of Default that can be cured by the payment of money (i.e., payment of taxes, insurance premiums, or other amounts required to be paid hereunder). 6. Grantor's Remedy upon Grantee's Default. Upon an Event of Default by Grantee and after provision by Grantor of written notice, Grantor shall have the right to suspend or terminate its performance under this Agreement. In addition, Grantee will be ineligible for future grants under the Program. Grantor may, by written notice, require Grantee to return computer hardware and software. 7. Indemnification. (a) Grantee shall and does hereby agree to indemnify against and to hold Grantor, and its officers, agents, and employees, harmless of and from any and all liability, loss, or damage that it may incur under or by reason of this Agreement, and of and from any and all claims and demands whatsoever that may be asserted against Grantor by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained herein. (b) This indemnification and hold harmless provision shall survive the execution, delivery, and performance of this Agreement and the payment by Grantor of any portion of the Grant. (c) Nothing in this Agreement shall constitute a waiver of or limitation on any immunity from or limitation on liability to which Grantee is entitled under law. 8. Miscellaneous. 4 (a) Waiver. The performance or observance of any promise or condition set forth in this Agreement may be waived, amended, or modified only by a writing signed by Grantee and Grantor. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. (b) Assignment. This Agreement shall be binding upon the parties, their successors, and assigns. All rights and powers specifically conferred upon Grantor may be transferred or delegated by Grantor to any of its successors and assigns. Grantee's rights and 4 obligations under this Agreement may be assigned only when such assignment is approved in writing by Grantor; except that if such assignment is made to an affiliate or subsidiary of Grantee, Grantee may assign any of its rights or obligations to such affiliate or subsidiary upon written notice to the Grantor. (c) Governing Law. This Agreement is made and shall be governed in all respects by the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (d) Severability. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. (e) Notice. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Grantor: Economic Development Authority of Brooklyn Center 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 Attn: Executive Director To Grantee: Attn: __________________ (f) Termination. Upon the date of receipt by the Grantor of Grantee’s written report on Grantee’s expenditure of Grant proceeds as described in paragraph 3 (f) of this Agreement, this Agreement shall terminate and neither party shall have any further obligation to the other. (g) Entire Agreement. This Agreement, together with the Grant Documents, which are incorporated by reference, constitutes the complete and exclusive statement of all mutual understandings between the parties with respect to this Agreement, superseding 5 all prior or contemporaneous proposals, communications, and understandings, whether oral or written, concerning the Grant. (h) Headings. The headings appearing at the beginning of the several sections contained in this Agreement have been inserted for identification and reference purposes only and shall not be used in the construction and interpretation of this Agreement. IN TESTIMONY WHEREOF, each of the parties hereto has caused these presents to be effective as of the day and year first above written. [BORROWER NAME] By: Name: Its: [Title of Signatory] ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER By: Name: Its: President By: Name: Its: Executive Director Commissioner _______________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. ______ 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 currently “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 COVID-19 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 from the Coronavirus 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 EDA 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. 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. 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 of the Brooklyn Center community. Accordingly, the City of Brooklyn Center has determined 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 COVID-19 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 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 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. Member introduced the following resolution and moved its adoption: RESOLUTION NO. 2020-___ RESOLUTION APPROVING TRANSFERRING CARES ACT FUNDS TO THE ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER TO ADMINISTER 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 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; 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, the Economic Development Authority of the City of Brooklyn Center, Minnesota (the “Authority”) proposes to administer a Micro-business Relief Grant Program (the “Program”) providing grants and technical assistance to small businesses for costs of business interruptions cause by required closures, voluntary closures to adhere to public health guidance, and decreased customer demand related to the COVID-19 public health emergency; and WHEREAS, the expenditures described herein are necessary in connection with a public health emergency caused by the COVID-19 pandemic, which was incurred on or after March 1, 2020, and was not accounted for in the City’s regular budget in place as of March 27, 2020, and therefore is a permissible expenditures of Funds under the CARES Act; and WHEREAS, the City Council has determined that transferring the administration of a portion of the Funds to the Authority for Program purposes is in the best interests of the City and that the Funds designated for Micro-business Relief Grant Program 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 initial authorized amount of one hundred forty seven thousand nine hundred and twenty dollars ($147,920), for the purpose of providing grants and technical assistance to small businesses through its Micro-business Relief Program; in accordance with federal and state guidelines for expending the 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.