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HomeMy WebLinkAbout2024-05-15 EDA Packet CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY ЋΑǣ MEETING AGENDA Wednesday, May 15, 2024 5:30 p.m. MEETING WILL BE IN PERSON LIVE-STREAMED AT: https://northmetrotv.com/centerville-stream/ MEETING I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda IV. APPROVAL OF MINUTES 1. April 17, 2024, EDA Meeting Minutes V. BILLS AND COMMUNICATIONS 1. Bills Check List 2. Communications a. None VI. PRESENTATION 1. Karen Skepper, Anoka County Director of Community & Government Relations VII. REPORTS 1. Partner Agency Reports 1. Anoka County Regional Economic Development (ACRED) 2. Quad Area Chamber of Commerce 3. Hugo Area Business Association 2. Year to Date Financials 3. Ongoing Programs: 4. Blue Logo Sign 5. Center Stage 6. Business Revolving Loan and Grant Program 4. AdministratorÓs Report VIII. OLD BUSINESS 1.Main Street Enhancements 2. EDA Program Review Î Center Stage IX. NEW BUSINESS 1.Budget for 2025 2. Program Review Î Revolving Grant & loan Program 3. Rescheduling June Meeting X. ADJOURNMENT INFORMATIONAL MATERIALS None MEETING REMINDERS All Meetings at 6:30 PM unless otherwise noted. City Council Work Session Î Wednesday, May 22, 2024 Î 5:00 p.m. City Council Meeting Î Wednesday, May 22, 2024 Planning and Zoning Commission Î Tuesday, June 4, 2024 Parks and Recreation Committee Î Wednesday, June 5, 2024 Economic Development Authority Î Wednesday, June 18, 2024 Anoka County Regional Economic Development Authority Meetings th Anoka County Business Summitt - May 8 at Bunker Hills Event Center from 9AM-12PM Quad Area Chamber of Commerce Meetings Senior Expo Î May 16, 2024, St Genevieve Parish & Community Center Board of Directors Meeting Î June 13, 2024 (12:00p.m. via Zoom) CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA IV.1 TITLE OF ISSUE: Minutes - April 17, 2024 BACKGROUND AND SUPPLEMENTAL INFORMATION: The April 17th meeting minutes are included in the packet for the board's review. COST AND SOURCE(S) OF FUNDING: REQUESTED ACTION: Motion to approve the April 17, 2024 EDA minutes. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Minutes Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY MEETING MEETINGS April 17, 2024 5:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a regularly scheduled Economic Development Authority meeting on April 17, 2024. MEETING NOT APPROVED I.CALL TO ORDER The meeting was called to order at approximately 5:30 p.m. by President Remillard. II. ROLL CALL President Remillard called the roll. PRESENT: President Mark Remillard Vice-President Chris Swenson Commissioner Darrin Mosher Commissioner Tony Smith Commissioner Raye Taylor ABSENT: None STAFF: Assistant City Administrator/EDA Executive Director, Athanasia Lewis ABSENT: None III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda There were no revisions to the agenda. Motion by Commissioner Mosher, seconded by Commissioner Taylor to approve the agenda. All in favor. Motion carried. IV. APPROVAL OF MINUTES The minutes were approved as presented. City of Centerville EDA Meeting Minutes April 17, 2024 Motion by Commissioner Swenson and seconded by Commissioner Smith to approve the April 17, 2024, meeting minutes. All in favor. Motion carried. V. BILLS AND COMMUNICATIONS 1. Bills a. Check List Executive Director Lewis reviewed the bills as presented in the packet. Motion by Commissioner Swenson and seconded by Commissioner Smith to approve the bills. All in favor. Motion carried. 2. Communications a. Swag for Upcoming Events Executive Director Lewis reviewed the items that the EDA will be distributing at upcoming events. VI. PRESENTATION a. None VII. REPORTS 1. Partner Agency Reports a. Anoka County Regional Economic Development (ACRED) Executive Director Lewis reviewed the report as presented in the packet. 2. Year to Date Financials Executive Director Lewis reviewed the financial report as presented in the packet. Motion by Commissioner Swenson and seconded by Commissioner Smith to approve the financial report as presented. All in favor. Motion carried. 3. Ongoing Programs: Executive Director Lewis reviewed the Ongoing Programs report as presented in the packet. 4. AdministratorÓs Report Executive Director Lewis reviewed the AdministratorÓs Report as presented in the packet. VIII. OLD BUSINESS 1. Main Street Enhancements Executive Director Lewis introduced the item as presented in the packet, and she will provide an update on this item next month. 2. HRA Powers Executive Director Lewis introduced the item as presented in the packet. Discussion ensued about priorities of the EDA (community center, potential acquisition of parcels in the downtown, 2 City of Centerville EDA Meeting Minutes April 17, 2024 executive suites, incubator space(s), food trucks, etc. The EDA will continue the discussion next month. 3. EDA Program Review Î Center Stage Program Review Executive Director Lewis introduced the item as presented in the packet. Discussion ensued about the existing program, additional services, using local talent for added services, increasing marketing of the existing program, and learning more about home-based businesses that could use some digital marketing assistance. IX. NEW BUSINESS 1. None X. ADJOURNMENT Motion by Commissioner Swenson, seconded by Commissioner Smith to adjourn the April 17, 2024, Economic Development Authority meeting at 7:00 p.m. All in favor. Motion carried. 3 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA V.1 TITLE OF ISSUE: Check List BACKGROUND AND SUPPLEMENTAL INFORMATION: The check list for EDA approval is included in the packet. COST AND SOURCE(S) OF FUNDING: n/a REQUESTED ACTION: Motion to approve the check list as presented. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular 05/09/24 3:53 PM CITY OF CENTERVILLE Page 1 *Check Detail Register© Batch: 051524PAYEDA Check #Check DateVendor NameAmountCommentInvoice 10350 EDA-MIDWESTONE BANK 05/10/24 26 eIRS/EFTPS G 101-21703FICA Tax Withholding$34.44FICA/MED W/H PAY PERIOD 4 Total $34.44 05/15/24 1082CITY OF CENTERVILLE E 201-46500-340Advertising & Printing10095$637.09REIIMBURSE THE CITY FOR CHARGES ON CREDIT CARD FOR 4IMPRINT - INV #10095 - MUGS, BEANIES & GOLF BALLS E 201-46500-210Operating Supplies10095$1,500.00REIIMBURSE THE CITY FOR CHARGES ON CREDIT CARD FOR 4IMPRINT - INV #10095 - MUGS, BEANIES & GOLF BALLS Total $2,137.09 $2,171.53 10350 Fund Summary 10350 EDA-MIDWESTONE BANK 101 General Fund$34.44 201 ECONOMIC DEVELOPMENT FUND$2,137.09 $2,171.53 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA VII.1 TITLE OF ISSUE: Partner Agency Reports BACKGROUND AND SUPPLEMENTAL INFORMATION: ACRED - held their annual business summit on May 8th. Presentations covered topics such as workforce recruitment and retention (DEI programs), workforce statistics (Labor information provided DEED), and funding opportunities easonable ccommodations (EAF program. Quad Area Chamber - is gearing up for their annual business expo at St. Genevive's Church on May 16th from 9a.m.-12p.m. HBA - is holding a networking event on May 14th at the Oneka Ridge Golf Course from 3:30p.m. - 6:00p.m. COST AND SOURCE(S) OF FUNDING: n/a REQUESTED ACTION: Update. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA VII.2 TITLE OF ISSUE: Finanical Report BACKGROUND AND SUPPLEMENTAL INFORMATION: The monthly financial report is included in the packet. COST AND SOURCE(S) OF FUNDING: REQUESTED ACTION: Motion to approve the financial report as presented. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Financial Report Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Economic Development Authority Monthly Financial Report Month Ended April 30-2024 % of year 33.33% MTDYTDBudgetVariance% Budget 4/30/202420242023+(-)Used Revenues: 201-46500-39201 Transfers In υ ЍЉͲЉЉЉ $ 40,000$ -100.00% 201-46500-36210 Interest Earnings241$ 753$ -$ 753$ 0.00% 201-46500-36270 Miscellaneous-$ -$ $ -$ -0.00% Total Revenues241$ 40,753$ $ 40,000$ 7530.00% Expenditures: 201-46500-100 Wages and Salaries225$ 675$ $ 2,400$ 1,725.0028.13% 201-46500-122 FICA17$ 52$ $ 184$ 131.9428.14% 201-46500-210 Operating Supplies-$ -$ $ 1,500$ 1,500.000.00% 201-46500-300 Professional Srvs **-$ 3,485$ $$ (3,485.00)0.00% 201-46500-303 Engineering Fees-$ -$ $$ -0.00% 201-46500-304 Legal Fees-$ -$ $$ -0.00% 201-46500-331 Travel Expense-$ -$ $ 700$ 700.000.00% 201-46500-340 Advertising & Printing50$ 1,255$ $ 16,100$ 14,845.007.80% 201-46500-343 Marketing-$ -$ $$ -0.00% 201-46500-377 Appreciation/Events-$ $ 1,300$ 1,300.000.00% 201-46500-378 Opportunity fund (Reserved$ -$ 15,341$ 15,341.400.00% 201-46500-430 Miscellaneous-$ -$ $ 100$ 100.000.00% 201-46500-433 Dues and Subscriptions-$ 913$ $ 875$ (38.00)104.34% 201-46500-441 Conf. & Schooling-$ 350$ $ 1,500$ 1,150.0023.33% 201-46500-810 Refunds & Reimb.720$ 720$ $ -$ (720)0.00% Total Expenditures1,012$ 7,450$ $ 40,000$ 32,550 NET REVENUE/EXPENDITURES(771)$ 33,304$ $0 Fund Balance, January 155,153$ Fund Balance, Current88,457$ CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA VII.3 TITLE OF ISSUE: Ongoing Programs BACKGROUND AND SUPPLEMENTAL INFORMATION: Blue Logo - no new activity Center Stage - no new activity Business Revolving Loan and Grant Program - Anticipating two applications COST AND SOURCE(S) OF FUNDING: n/a REQUESTED ACTION: Update only For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA VIII.1 TITLE OF ISSUE: Main Street Enhancement BACKGROUND AND SUPPLEMENTAL INFORMATION: At their last meeting, the EDA discussed planters along Main Street. A quote for the design and delivery of seasonal planters (flowers and pots provided) is included in the packet. COST AND SOURCE(S) OF FUNDING: n/a REQUESTED ACTION: Motion to approve the quote for seasonal planters. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Quote Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Athanasia Lewis From:Jill Brown <jill@simpleandgrand.com> Sent:Thursday, May 9, 2024 5:37 PM To:Athanasia Lewis Subject:Re: Attachments: Quote for Centerville MN.xlsx 9êƇƂijŗŏϾ϶°İijŹ϶đŎêijň϶ŗŵijĩijŏêƂđċ϶ŗƇƂŹijċđ϶ŗƇŵ϶ŗŵĩêŏijƬêƂijŗŏϿ϶ŲňđêŹđ϶ƇŹđ϶ ąêƇƂijŗŏϼ϶ Hi Athanasia, I have attached several options for you. We do not recommend anything smaller than the 26" for the planters that sit out in the open because we don't want them to blow over. I have included 2 planters for city hall on all options and a variety of large planters for the downtown. I think any of these will add to the beauty of your downtown area each season. These quotes include the planters and delivery for 4 seasons. I did not include tax since you are exempt. Let me know if you have any questions, Jill Brown jill@simpleandgrand.com 952-207-8339 From:AthanasiaLewis<ALewis@centervillemn.com> Sent:Wednesday,May8,20245:02PM To:JillBrown<jill@simpleandgrand.com> Subject:϶ 1 2 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA VIII.2 TITLE OF ISSUE: Programs - BACKGROUND AND SUPPLEMENTAL INFORMATION: At their last meeting, the EDA discussed adding digital marketing services to their program offerings. Staff has provided quotes from two local graphic designers on what they could offer our local businesses. Staff is requesting direction on next steps. COST AND SOURCE(S) OF FUNDING: $10,100 already budgeted REQUESTED ACTION: Discussion and if the EDA chooses, a motion to authorize staff to work with graphic digital marketing services our local businesses. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ quote, proposal Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular MarketingProposalCentervilleEDAΑMay2024 AvailableMarketingServices MarketingConsultation(discusstheirgoals,brainstorming,assistthemwithcreatingaplan) PrintDesign(cards,flyers,signage) GoogleListing(creationandsuggestionsofhowtomaximize) Website(domainandhostingwouldbeadditionalcost) SocialMedia(FacebookandInstagramΑLinkedInifapplicable) o AccountSetup o BestPractices o ContentPlanning/Suggestions o CreationofPosts o FacebookAdsTutorial CanvaTutorial(sotheycancreatetheirownmaterialsiftheychoosetoo) AdvertisingRecommendations(myprofessionalopinionofwheretheyshouldspendmoneyif theychoosetospendmoneyonadvertising) Goal Thegoalwithanyofthesewouldbetoestablishafoundationthatsetsthebusinessupforsuccess.I recognizethatmostsmallbusinessesķƚƓ͸Ʒhaveamarketingplanorbudget.Theseserviceswould provideastartingpointandthegeneralknowledgetocontinueonapositivetrajectory. Rate Withtheexceptionofthewebsite,thebudgetallowsforacombinationofservicesbasedontheneeds ofeachbusiness.Aninitialconsultationwoulddeterminetheirneedsanddictatewhichserviceswere mostvaluabletothem. Thankyouforconsideringmyservices. MichelleKoch 763.786.9672 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA IX.1 TITLE OF ISSUE: 2025 EDA Budget BACKGROUND AND SUPPLEMENTAL INFORMATION: A draft of the 2025 EDA budget is included in the packet for the oard's consideration. Staff is requesting . COST AND SOURCE(S) OF FUNDING: n/a REQUESTED ACTION: Discussion. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Budget (draft) Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA IX.2 TITLE OF ISSUE: Program Review - Revolving Loan and Grant BACKGROUND AND SUPPLEMENTAL INFORMATION: The Revolving Loan and Grant program guidelines were reviewed several months ago and eligibility requirements were expanded to include nonprofit organizations. The funding for the program, however, has not been reviewed in quite some time and it is something the EDA might consider reviewing before approving the 2025 EDA budget. COST AND SOURCE(S) OF FUNDING: TBD REQUESTED ACTION: Discussion. If no changes are made then a motion is not required. If the EDA chooses to increase the funding then a motion to increase the funding to x amount is required. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Revolving Loan & Grant Guidelines Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) APPLICATION PACKET September 20, 2023 1 CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) I.BACKGROUND The Centerville Economic Development Authority (the ÐCVEDAÑ) endeavors to support a program of city revitalization. This effort is aimed at strengthening the cityÓs vitality in terms of market share and physical appearance. Working with the City, the CVEDA has designed a Revolving Loan and Grant Program (RLGP). The RLGP is aimed at improving the utility and appearance of downtown local businesses and non-residential property owners while encouraging the leveraging of private investment which would otherwise not occur. The program has two distinct components: Loan and Grant. The program is designed to address -redevelopment needs throughout the city. The Centerville CVEDA established an initial $50,000 loan/grant pool, through an earmark of the cityÓs Housing and Redevelopment Authority funds, administered by Anoka County. This pool of money may be used for either the Grant or Loan Portion of the program. The Centerville RLGP is operated with the following program goals: Provide affordable financing or grant funds to small businesses for program eligible real estate improvements. Target downtown businesses along Centerville Road and Main Street with other businesses located in the City also being eligible. Serve as a catalyst to leverage private resources. Require that improvements be consistent with city code. For businesses within the M-1 & M-2 zoning districts, this includes the design guidelines referenced in city code. Require local businesses and non-residential real estate owners receiving funds to be compliant with existing city code or to come into compliance in the course of the improvements proposed. This includes code related to signage, parking, screening and other exterior regulations. Whether the interior of the building needs to come into compliance with the building code shall be governed by the building code and related city code. Structures which qualify as legal nonconformities may remain. The program is administered by the EDA under the guidance of policies set by the City Council and EDA. The City of Centerville EDA is responsible for: Determining individual applicantÓs eligibility based on: - Location of property to be improved; - Improvement scope; - Compliance with City Codes and Ordinances. Determining schedule for submission of competitive funding applications and scoring criteria for the award of loans and grants when there are more applications than funds. 2 Distribution of program information to local businesses and non-residential real estate owners. Referral of applicants to local banks. Participation agreements with local banks. Financial institutions are responsible for: Receipt and processing of loan applications. Provision of matching loan funds at least equal to funds to be provided from the CityÓs RLGP. Underwriting to determine applicantÓs credit risk and required collateral. Determining loan amortization period. Approval or disapproval of loan subject to City certification as to program eligibility. Collection of lien waivers and other documents deemed necessary for loan disbursements. Distribution of loan funds subject to final approval by the CVEDA. Distribution of principal and interest payments to the CVEDA RLGP. On default, the claims of the CVEDA are subordinate to the financial institution. II. PROGRAM OBJECTIVE The purpose of the RLGP is to provide local businesses and non-residential real estate owners with an incentive to increase their investment in the community by making structural and beautification improvements to existing buildings. The RLGP will not provide working capital loans nor fund operating expenses. III. PHYSICAL BOUNDARIES OF PROGRAM AREA To be eligible for the RLGP, the property must be located within the City limits. IV. PROGRAM ADMINISTRATION AND STRUCTURE Administration will be shared by the EDA and participating financial institutions. The EDA, as the programÓs administrator, will maintain and update program guidelines and monitor their compliance. Administration of the EDAÓs responsibility will be under the direction of the EDAÓs Executive Director and Assistant Treasurer. Servicing of RLGP loans shall be administered by local banks and savings and loans which make application to the EDA. All such institutions must be within 15 miles of the corporate limits of the City. The RLGP will operate as a public/private sector partnership. The financial base of $50,000 for the public share of RLGP funds will come from Housing and Redevelopment Authority funds, administered by Anoka County on behalf of the City. The fund 3 will be replenished by an annual contribution of $10,000 from HRA income and any interest and principal repayments resulting from outstanding loans. 4 V. IMPROVEMENT REVIEW PROCESS Prior to being given loan or grant approval, the applicant shall receive a positive recommendation from the CVEDA. The EDA shall review proposed plans and the existing exterior condition of the property being improved. The EDA shall base its recommendation upon the projectÓs consistency with program objectives and city code, including, where applicable, design guidelines. The applicant may appeal any recommendation of the EDA to the City Council. In the event of limited funds, priority will be given to projects which score the highest on the programÓs application scoring worksheet. VI. CONTRACTING AND CONSTRUCTION The applicant shall prepare or have prepared a detailed Scope of Work, which will also be the projectÓs bidding document. The Scope of Work will be submitted to the CVEDA and the participating financial institution (for loan projects). The Scope of Work shall include: A detailed description of the work to be undertaken; Estimates of the quantity and materials to be used in the project; Qualified licensed contractor(s) The cost of having the Scope of Work prepared shall be reimbursable to the applicant from the loan or grant proceeds. No RLGP loan or grant will be approved until an adequate Scope of Work/Bidding Document is submitted and approved by designated EDA staff. The applicant must receive and submit at least two itemized competitive bids for all work to be completed and materials to be purchased with the loan or grant funds. The bids will be reviewed and filed by the city (grant program) or financial institution (loan program) to establish that they are competitive and address the work identified in the Scope of Work. The city or financial institution may waive the requirement for two competitive bids if it is impractical to obtain a second bid. The EDA, through the City Building Inspector, shall monitor the quality and progress of all work funded through the Program. Request(s) for payment (up to three partial payments and one final payment) by the applicant for completed work and supplied materials shall be in writing to the financial institution (or city, for grant-only projects). Partial payments shall not exceed 90 percent of the total project amount. The final payment shall be held until a certificate of completion is obtained from the City and submitted to the financial institution. Upon submission and approval of a written request for the release of loan funds, designated EDA staff will, in writing, authorize the financial institution to release the requested funds. All work must be inspected by the City Building Inspector to ensure conformance with code and must be verified for proper completion by City staff to ensure compliance with specifications prior to final payment. The final inspection cannot be scheduled until all permits taken out have been signed off by field inspectors. Upon satisfactory completion, a certificate of completion will be granted. 5 All work must be completed within 12 months of issuance of a building permit unless written permission of an extension is granted by designated EDA staff and financial institution (for loan projects). This action does not constitute an extension to any other deadlines imposed by permits or other regulation. All eligible improvement work performed pursuant to an approved RLGP loan or grant must provide a 12-month warranty from the date of accepted completion by the loan recipient and the EDA. This warranty must cover the quality of materials used and workmanship in performing the work. This warranty is the responsibility of the recipient and shall meet the requirements and definitions in MN State Statute, Chapter 327A. VII. LOAN PROGRAM The Loan portion of the RLGP will provide one-half of each small business loan up to a maximum of $20,000 (from the fund) at an interest rate of two percent, provided that funds are available. Multiple loans may be made to local businesses and non-residential real estate owners, provided that the principal balance does not exceed $20,000 (from the fund) at any time, and also provided that all payments of principal and interest are current. Local banks will execute participation agreements with the EDA to carry out their participation in accord with these guidelines. VIII. LOAN STRUCTURE A. The RLGP shall provide a 100% match to private loans up to a maximum amount of $20,000 RLGP participation. B. The interest rate of the RLGP loan shall be two percent per annum. C. The RLGP loan shall be amortized over a term not to exceed 10 years but shall, at the option of either the lending institution or the local business or non-residential real estate owner, be renegotiable at the end of each three-year period, but no loan including extensions shall exceed 10 years. In no event shall the interest rate on the RLGP loan change from two percent per annum. D. RLGP loans in the amount of $8,000 or greater must be fully secured with a perfected security interest as determined by the lender. E. The City subordinates its position on the RLGP loan to that of the lending institution. IX. UNDERWRITING STANDARDS A. Small and medium sized commercial buildings are defined as those buildings whose gross square footage does not exceed 30,000 square feet. B. Local businesses or non-residential real estate owners receiving RLGP loans shall not have more than five (5) or more locations, franchises, or chains. C. Types of local businesses or non-residential real estate owners receiving RLGP loans shall be legal permitted or legal conditional uses within their respective zoning districts. D.RLGP loans shall be made to fee owners or recorded contract for deed vendees. 6 X. FINANCIAL GUIDELINES A. Applicants shall demonstrate a ratio of net operating income (NOI) to debt service of 1.1:1. NOI = Gross property income less operating expenses and real estate taxes, but not including mortgage payments, income tax depreciation or non-operating expenses. B. Participating financial institutions shall use customary lending practices in determining eligibility for RLGP loans so as to ensure repayment of principal. C. The property shall not be delinquent in the payment of property taxes and special assessments, and shall not become delinquent during the term of the loan. If taxes shall become delinquent, the loan may be called at the option of the financial institution if the delinquency is not remedied in a reasonable time frame. D. The structure shall be fully insured during the term of the loan with the lending institution and City named as mortgagor or covered under a loss payee clause endorsement. E. No loan shall exceed 80 percent of the estimated market value of the property to be rehabilitated upon completion of the rehabilitation, less the principal balance of any prior mortgage existing on the property at the time the loan is made; as required by MSA 469.184, Subd. 4(3). F. All out-of-pocket loan application expenses shall be the responsibility of the applicant. No other fees shall be charged. XI. ANNUAL REPORTING Within 90 days of filing federal tax statements, local businesses or non-residential real estate owners receiving loans shall annually submit to the lending institution the following three items: A. Proof of non-delinquency of property tax payments; B. Profit/loss statement from Schedule C of federal tax statements; and C. Personal financial statement satisfactory to the lender. Participating lending institutions shall annually report to the EDA by March 1 of each year the status of the RLGP loan. The annual report shall include the status and balance of each loan as of December 31 of the previous year. XII. LOAN DISBURSEMENTS Loan funds shall be released by the financial institution, but not before written approval from the EDA is provided, and an RLGP check is issued. A minimum of 10 percent of the total loan will be retained until all work is completed, inspected, and approved, as evidenced by current certificate of completion. XIII. IMPROVEMENTS COMPLETED PRIOR TO LOAN CLOSING Such improvements are not eligible unless the applicantÓs structure requires immediate attention (hazardous code deficiencies, etc.) and the following steps are taken: 7 Applicant must fill out a loan application with the financial institution. Applicant must submit a written request to the financial institution describing the need. Applicant must receive written permission from both the EDA and the financial institution. If the above conditions have been met, the applicant may proceed using his own funds or interim financing from a financial institution. However, this is done at the applicantÓs and/or financial institutionÓs own risk until the total Scope of Work has been approved by the EDA and the loan has been closed. XIV. ELIGIBLE COSTS (LOAN PROGRAM) The following are eligible expenses for either the public or private sector (matching) portion of the loan. Generally, all work on front and sides of - commercial buildings facing public streets Cleaning, painting and staining of exterior surfaces Façade masonry repairs Repairing, replacing and installing of cornices, entrances, exterior doors and windows, decorative details, awnings and exterior lighting New signage Sign removal, repairing and replacement Building identification Streetscape costs on private property Landscaping visible from the street Decks or patios used for business purposes Parking lot improvements Handicapped accessibility improvements Health and safety improvements The following may be funded with the private sector (matching) loan portion only; Any of the items listed as public sector loan-eligible, above. Generally, all interior fixed improvements including the repair and/or construction of walls, ceilings, floors, lighting, windows, doors and entrances Heating, ventilating and air conditioning improvements Wall and floor finishes and tenant fixtures Roof repairs and replacement 8 XV. INELIGIBLE COSTS (LOAN PROGRAM) The following costs are ineligible: Refinancing of existing debts Non-fixed improvements Working capital Inventory Sweat equity (payment for the applicantÓs own labor and performance for construction of improvements) Internal improvements to mixed use buildings that involve the residential portion of the structure XVI. GRANT PROGRAM In order to encourage building façade and streetscape improvements that are more aesthetic in nature, grants between $2,000 and $5,000 are available provided there is a 1:1 match of private investment. For example, to qualify for a grant of $2,000, a total of $4,000 must be spent. For a $10,000 project, the maximum of $5,000 in grant money may be awarded. Multiple grants are permitted consistent with the above outlined formula, but shall not exceed $5,000 per project, or a total of $5,000 per property, in a 5-year period. For signage, 50% of the cost toward the sign will be paid on day one and the other 50% will be paid after one year, on day 366 if the business is still operational. XVII. ELIGIBLE COSTS (GRANT PROGRAM) The following are eligible expenses for either the public or private sector (matching) portion of the grant. Generally, all work on front and sides of commercial buildings facing public streets Façade masonry repairs Repairing, replacing and installing of cornices, entrances, exterior doors and windows, decorative details, awnings and exterior lighting New signage Sign removal, repairing and replacement Building identification Streetscape costs on private property Landscaping visible from the street Decks or patios used for business purposes 9 The following may be funded with the private sector (matching) funds portion only; Any of the items listed as grant-eligible, above. Parking lot improvements Handicapped accessibility improvements Health and safety improvements XVIII. INELIGIBLE COSTS (GRANT PROGRAM) The following costs are ineligible: Heating, ventilating and air conditioning improvements Wall and floor finishes and tenant fixtures Roof repairs and replacement Refinancing of existing debts Non-fixed improvements Working capital Inventory Sweat equity (payment for the applicantÓs own labor and performance for construction of improvements) Internal improvements to mixed use buildings that involve the residential portion of the structure Prior to incurring expenses for which a grant is sought, applicants must have the proposed work approved in writing by the City EDA staff. Grant monies are not available for Ðsweat equityÑ. Grants will be distributed upon final inspection by the City and submittal of a paid invoice. 10 CENTERVILLE REVOLVING LOAN PROGRAM APPLICATION FORM I. APPLICANT INFORMATION Local Business Owner or Non-Residential Real Estate Owner Name(s): Home Address: Phone: ________________ E-Mail Address: Name of Business: Business Address: Phone: ________________ Business Structure: _____ Sole Proprietorship _____ Partnership (all partners must sign this application) _____ Corporation (list officers on separate sheet) Type of Business (describe): II. PROPERTY INFORMATION Local Business or Non-Residential Real Estate Owner: Address: Phone: ________________ E-Mail Address: 11 Does the applicant occupy the total building? Yes _____ No _____ 12 If NO, what percentage does the applicant occupy and what occupies the balance of space? __________________________________________________________________ __________________________________________________________________ III. REHABILITATION PROPOSED Briefly describe the proposed work and purpose. Exterior: Interior: *Note: A detailed Scope of Work document is required prior to approval. IV. BUILDING INSPECTION Building owner grants permission for the city inspector to inspect all work to be performed as outlined in Scope of Work. _______________________________________ _______________________ Signature of Owner Date V. FINANCIAL INSTITUTION INFORMATION Name: Address: Loan Officer: Phone: ___________________________________________ ____________________ Local Business or Non-Residential Real Estate OwnerÓs Signature Date ___________________________________________ ____________________ Local Business or Non-Residential Real Estate OwnerÓs Signature Date 13 2% REVOLVING LOAN PROGAM SCOPE OF WORK See pages 3 and 4 of the Guidelines and Regulations Handbook for information on eligible expenses. PROGRAM ELIGIBLE EXPENSES Item Amount 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOTAL $ AMOUNT REQUESTED FROM EDA $ AMOUNT REQUESTED FROM BANK $ Note: Wall and floor finishes and tenant fixtures may be funded with the private sector (matching) loan portion only. 14 CITY OF CENTERVILLE EDA REVOLVING LOAN PROGRAM OWNER AGREEMENT Owner Certification DATE: OWNER: ADDRESS: PROPERTY ADDRESS TO BE REHABILITATED: BUSINESS NAME(S): As owner of the above property, I hereby agree that I will adhere to the following conditions of the City of Centerville EDA Revolving Loan Program (the ÐProgramÑ): 1. Each loan from the Program will be requested on an individual property and will not exceed one-half the cost of the eligible building improvement or $20,000, which is less. 2.It is understood that the loan from the Program is for contract construction and is only for eligible expenses. No refinancing and no acquisition will be done utilizing the City of Centerville EDA loan. 3. Hazard insurance will be maintained on the property at all times in an amount sufficient to cover the full amount of the loan and will be paid by myself and will not be paid out of the loan proceeds. 4. At least two detailed and legible competitive bids based upon a work specification prepared by the owner and approved by a participating financial institution prior to approval will be submitted. 15 5. Change orders will be issued only with the written approval of the City of Centerville EDA staff. No change order will be issued decreasing the private loans such that the private loan is less than the loan from the CVEDA Revolving Loan Fund. 6. I agree to abide by the regulations as listed, and the City of Centerville EDA Revolving Loan Program Handbook. Upon failure to comply with any or part of the above, the City of Centerville EDA may enforce the Revolving Loan Program and note/lien through any lawful suit or action as permitted under the laws of the State of Minnesota. 7. I understand that any inspection made by the City of Centerville under this program is for purposes of determining the applicantÓs eligibility under this program, and it is not intended to represent or warrant the condition of the premises. 8. I further understand that making application in no way insures approval of loans or guarantees funding. 9. I understand that ÐapprovalÑ means specific, written approval from both the City and my financial institution. 10. I understand any work performed prior to specific written approval from both the financial institution and the City will be considered ineligible unless otherwise waived in writing by the City EDA and the financial institution according to the guidelines. Fee Owner/Contract Purchaser: Signature Print Name Witness Date 16 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT APPLICATION Local Business or Real Estate Owner(s): Business Name: Business Address: Phone: Qualifying work description: Total cost of project (attach detailed bid): Facade Improvement(s): Facade Improvement Cost: Grant Amount Requested: _____________________________________ _______________ Signature of Owner Date _____________________________________________ ______________ Signature of Executive Director EDA Authorizing Grant Date 17 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT REIMBURSEMENT REQUEST Local Business or Real Estate Owner(s): Business Name: Business Address: Phone: Qualifying project work complete (this request): Cost of work (this request): Grant amount requested (this request): Total project cost to date (including this request): Total grant reimbursed (including this request): I hereby acknowledge that the facade work and/or materials referenced above have been completed and paid for at the above address, and documentation for that work is attached. _____________________________________________ _______________ Signature of Owner Date _____________________________________________ ______________ Signature of Executive Director EDA, Date Authorizing Reimbursement 18 Centerville Revolving Loan & Grant Program Rating Criteria The following criteria are eligible expenditures of Loan and Grant funds. In the case of multiple qualifying applications for the program, the applications will be ranked according to their conformance with the following rating scale. Centerville Revolving Loan & Grant Program Rating Criteria Improvement Type Priority List 1 Repairing, replacing, or installing cornices, entrances, windows, decorative details, awnings and exterior lighting 2 Sign removal, repairing or replacement 3 New signage 4 Streetscape or landscape improvements on private property 5 Handicapped accessibility improvements 6 Health and safety improvements 7 Parking lot improvements 8 Cleaning, painting and staining of exterior surface 9 Building identification 10 Decks or patios used for business purposes 19 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: May 15, 2024 Administration/EDA IX.3 TITLE OF ISSUE: Rescheduling June Meeting BACKGROUND AND SUPPLEMENTAL INFORMATION: The city's Planning and Zoning Commission and City Council are in the process of reviewing the LaLonde proposal. Since the EDA may be asked to provide input on the use of TIF, it makes sense to move the June EDA meeting up ahead of the June 12th public hearing at council COST AND SOURCE(S) OF FUNDING: n/a REQUESTED ACTION: Discussion. Motion to move the June meeting to X date. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular