HomeMy WebLinkAbout5.a. Open to Business Final Report 4ROSEMOUN1" EXECUTIVE SUMMARY
PORT AUTHORITY
Port Authority Meeting Date: February 18, 2014
AGENDA ITEM: Open to Business Final Report AGENDA SECTION:
Old Business
PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 5.a.
ATTACHMENTS: Final Report; Event Press Release APPROVED BY:
P
RECOMMENDED ACTION: Information and Discussion
ISSUE
As the Port Authority is aware, the City participates with Dakota County and the other cities in the county
in the Open to Business program. I recently received the final report for the 2013 year and wanted to
forward the information to the Port members. This is a good opportunity to remind the group that there is
a free event on March 6 highlighting the Open to Business service. If you are out and about in Rosemount
please mention it to various businesses as we continue to try to drive traffic to the program.
RECOMMENDATION
Information and Discussion.
___ _, ,
OPEN
TO BUSINESS
Dakota County
2013 Final Report
Clients Served: Hours of Direct Service:
New/Existing Entrepreneurs 136 1St Quarter- 263
Existing Business 36 2nd Quarter- 426
(Of those clients served) 3rd Quarter- 384
4th Quarter- 251
Inquiries: 322 Total Direct Service: 1,324
(*Requests for information/referral,not a formal
client)
Office Hours/Events/Marketing:
1St Quarter- 567
Financing: 2nd Quarter- 219
Provided: (Dakota County Businesses) 3rd Quarter- 258
Number 4 4th Quarter- 236
Amount $195,000 Total Office/Marketing: 1,280
Provided: (Dakota County Residents)
Number 8 Total Hours: 2,604
Amount $79,374
Microgrants: Industry Segment:
Number 3 Retail 28
Amount $3,000 Service 83
Credit Builder Loans Food 33
Number 4 Manufacturing 1
Amount $1,055 Technology 1
Total: Number: 19 Real Estate/Related Trades 3
Amount $278,429
Client City:
Apple Valley 8
Requests/In Process: Burnsville 15
Number 1 Eagan 16
Total Request $30,000 Farmington 10
Facilitated Loans: Hastings 10
Number 2 Inver Grove Hts 5
Amount $50,000-100,000 Lakeville 11
Mendota Heights 0
Referral Source: Rosemount 10
CDA 9 S. St. Paul 5
City 107 W. St. Paul 2
Internet 4 Townships 2
Chamber 5 Undecided Location 42
Other(Banks, Schools, etc.) 65
Financing Provided -Summary
Direct Loans
In 2013, MCCD has made direct loans totaling $195,000.00 to five businesses located in
Dakota County. In addition, four of the business owners live in Dakota County
communities. Altogether these businesses will create or retain 40 jobs. In addition,
MCCD financing leveraged another$646,873 in equity and private bank financing.
JR. Wood Quality Finishing, Inc. (Eagan)
Jose Ramon Santarriaga started JR. Wood Quality Finishing, Inc. in 2005. The
business provides spray painting, polishing, and other wood finishing services to
construction contractors, home remodelers, residential developers, and the
occasional home owner. With sales growing and space tightening, Jose had the
opportunity to lease additional space in an adjacent bay at his location in Burnsville.
MCCD's loan of$35,000 will allow JR WOOD to fix up the new space and purchase
additional equipment to meet growing customer demand.
Hilltop Family Chiropractic Clinic, P.A. (Eagan)
Chiropractor Marla Faye has owned and operated Hilltop Family Chiropractic Clinic
in Eagan since 1989. Dr. Faye recently had the opportunity to move her clinic to
larger and more attractive space in Eagan that was also offered cheaper rent than
what she had been paying. While Sunrise Banks provided a portion of the financing
that Dr. Faye needed to relocate her clinic, MCCD's $25,000 loan completed the
financing for leasehold improvements and new equipment.
Skyhawk Companies LLC (Burnsville)
A licensed residential building and plumbing contractor, Skyhawk Companies LLC
provides residential property management and general contracting repair and
restoration services to banks and government agencies holding real estate owned
(REO) and foreclosed properties. Skyhawk's comprehensive service, 24 hour
response times, and consistent quality has made it the fastest growing property
preservation and management companies for REO and foreclosed properties in
Minnesota. MCCD's loan of$105,000 will allow this Burnsville company to purchase
and staff three additional vehicles to meet its growing demand.
Extreme Sandbox, LLC (Hastings)
Have you ever reminisced about your childhood days playing in the sandbox with your
Tonka trucks? Extreme Sandbox is the first and only recreational heavy equipment
adventure in the Midwest. It's essentially a playground for big kids, allowing customers
the opportunity to experience the thrill of operating heavy equipment in a safe and
controlled environment. With MCCD's $30,000 loan filling a financing gap, owner
Randall Stenger was able to purchase the 10 acres he had been leasing for the
business.
KMR Design Group, LLC (Lakeville resident owner; business in Minneapolis)
Kristin Radford, a resident of Lakeville in Dakota County, started her landscape
design and construction business in 2010, after a decade as a free-lance landscape
designer. KMR Design Group recently received a contract with Global Specialty
Contractors Inc. to complete a short-term landscaping project at the Avenue of the
Arts Bridge over Interstate 94 just south of the Minneapolis Convention Center. To
facilitate that work, MCCD provided a transactional loan of$5,966 to KMR Design
Group. The loan allows the company to pay for upfront costs related to its contract
with Global Specialty, which will issue a two-party check to MCCD and KMR Design
Group to facilitate repayment.
Credit Builder Loans
In 2013, MCCD has provided credit builder loans to four residents of Dakota County. MCCD
works in partnership with several nonprofit organizations to offer the credit building program.
Our partners provide financial counseling in conjunction with small personal loans from MCCD.
This combination of counseling with loans is helping program participants improve their credit
scores. Better credit scores can mean lower interest rates on car and other loans, and better
access to affordable insurance and housing.
Other Loans
In addition to the five direct loans and two credit builder loans described above, MCCD made
loans totaling $73,407.50 under the Central Corridor Forgivable Loan Program to six businesses
located in Minneapolis and Saint Paul that were owned by residents of Dakota County. The
Central Corridor Forgivable Loans helped businesses that were negatively impacted by the
construction of the light rail along University Avenue and Stadium Village.
2013 Central Corridor Loans to Businesses Owned by Dakota County Residents
Borrower Residence of Loan Amount
Owner(s)
Hong Kong Noodle Restaurant, Inc. Eagan $20,000.00
Max Computers LLC Burnsville _ $12,433.00
Jasmine Orchid Restaurant Apple Valley $21,435.50
Hosannah, Inc. dba Shin Hair Salon Eagan $16,668.00
Rosvold Enterprises, Inc. dba Campus Pizza West St. Paul $1,435.50
Take One Enterprises, Inc. dba Big Ten Restaurant Apple Valley $1,435.50
Total $73,407.50
Approved Loans
Finally, MCCD has approved a $30,000 loan (part of a $480,000 package) to a fitness
facility that will open in Apple Valley.
Other Significant Non-Loan Achievements
Company: Meridian Blue Construction (Apple Valley)
Achievement: New Start Up— Financial Facilitation
After multiple meetings we are pleased to announce that effective December 2013 Meridian-
Blue has opened its doors! Meridian Blue Construction, LLC (Meridian Blue) is a Woman-
Owned start-up venture positioning itself to become a leading provider of construction and
technical services to the Wireless Communications Industry. Wireless is the future of
communication, web access, shopping, and more. Cell towers are continuously being erected,
repaired, maintained, and replaced in order to support worldwide consumer demand for
coverage. Meridian Blue will serve this ever-growing industry by upgrading and maintaining cell
phone towers in the Twin Cities area and greater Minnesota.
Company: Delectable Designs (Farmington)
Achievement: New Start Up
Delectable Designs is another proudly started Woman Owned Business! It features beautiful,
gourmet greeting cards, giftware, and artwork for Foodies! Feed the senses with a card and gift
from Delectable Designs. Perfect for those who love food cooking & dining!
Company: Ricky's Gym (Farmington)
Achievement: New Start Up - Business Expansion
Ricky's Gym is a supplemental Physical Education program that contributes to the total growth
and development of all preschool and elementary school children primarily through physical
activity and exercise. Children participate in a variety of physical activities in a supportive
learning environment. Motor skills, fitness development, fair play, and cooperation will be
emphasized.
Company: Lulu Bea's Upcycling Lounge (Lakeville)
Achievement: New Start Up— Business Structure— Lease Review
Lulu Bea's offers handmade products with "upcycled materials" by artisans who are proud of
their work. They offer fun and creative classes in a wide variety of areas, bringing new guest
instructors to share their expertise. They believe that we are all creative beings that sometimes
just need a little nudge to remember the joy of making something out of nothing. Lulu Bea's is
not just a store, but a community of people who love what they do and are excited to share their
creativity with you!
no 4Ell Dakota County
Community Development
Agency
CDA
February 5, 2014
FOR IMMEDIATE RELEASE
Contact: Andrea Brennan Sarah Kidwell
Director of Community and Assistant Director of Administration
Economic Development (65 I) 675-4434
(651) 675-4464
Open To Business Dakota County: New Tools for Lenders,
Entrepreneurs & Small Business
The Dakota County Community Development Agency (CDA), in partnership with Dakota
County Cities and the Dakota Scott Workforce Investment Board, will host Open To Business
Dakota County: New Tools for Lenders, Entrepreneurs & Small Business on Thursday, March 6, 2014
at the Valleywood Golf Course in Apple Valley. This free breakfast workshop will cover new
financial tools and resources available to entrepreneurs and small business owners through the
Open To Business Dakota County Program and Dakota Scott WorkForce Centers, and
highlight Open To Business partnerships with private commercial lenders.
In 2013, the CDA and I I cities partnered with the non-profit organization Metropolitan
Consortium of Community Developers (MCCD) to launch Open To Business in Dakota
County. Open To Business provides business advisory services and access to capital to Dakota
County entrepreneurs and small businesses. The 2013 results of Open To Business
demonstrate that there is strong demand for this program. MCCD served 136 Dakota County
businesses and entrepreneurs, provided $278,429 of direct capital for 19 businesses, and
facilitated capital for another 2 businesses. Open To Business demonstrates one of the ways in
which Dakota County is good for business.
Join us for Open To Business Dakota County: New Tools, New Successes to hear about a variety of
essential tools available for small business owners, entrepreneurs, lenders and other business
service providers in Dakota County. Open To Business can enhance private commercial lending
opportunities by better preparing the entrepreneur to borrow and shoring up gaps in capital
needs. For every $1 MCCD lends, $4 of private financing is leveraged. In addition, Open To
Business and Workforce Investment Board program participants will present their personal
success stories and discuss the resources they utilized through these programs.
For more information about this event or to register, visit
http://opentobusiness2014.eventbrite.com or call 651-675-4432. Registration closes at noon on
Monday, March 3.
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