HomeMy WebLinkAbout5.a. Approval of Open to Business Joint Powers Agreement
EXECUTIVE SUMMARY
Port Authority Meeting Date: March 15, 2022
AGENDA ITEM: Approval of Open to Business Joint Powers
Agreement
AGENDA SECTION:
New Business
PREPARED BY: Adam Kienberger, Deputy Director AGENDA NO. 5.a.
ATTACHMENTS: Joint Powers Agreement, CDA OTB
Contract, Dakota County Resolution, 2021
Year End Report
APPROVED BY: LJM
RECOMMENDATION: Approve Joint Powers Agreement between Dakota County CDA
and the City of Rosemount Port Authority relating to Open to Business Program.
BACKGROUND
The City has participated in the Open to Business (OTB) program since 2013. The most recent
contract was for a 1-year period following a 3-year contract due to some staff turnover. Based on
feedback from the participating cities the Dakota County Community Development Agency (CDA)
Board recently approved a new 2-year contract (2022-2023).
The payment by Rosemount will be the same for both years ($5,200). The Dakota County CDA will
be paying the other 50% of the city’s costs (for a total annual cost of $10,400). This program is
accounted for in the Port’s approved budget and consistent with previous agreements approved by
the Port Authority. The difference is the length of the agreement.
Previously shared with the Port Authority, attached is the program’s 2021 Year End Report which
highlights a number of successes including the nomination and award of a Rosemount business for
Entrepreneur of the Year.
Later in the year, staff will have our County OTB representative provide a more comprehensive
update on the program and note the success we’ve seen in Rosemount.
RECOMMENDATION
Staff recommends approval of the 2-year Open to Business Joint Powers Agreement.
Joint Powers Agreement
JOINT POWERS AGREEMENT
Open to Business Program
THIS JOINT POWERS AGREEMENT (this “Agreement”), is made as of DATE, by and
between the DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (the “CDA”), a
public body corporate and politic organized and existing under the laws of the State of Minnesota
(the “State”), and each of the BURNSVILLE ECONOMIC DEVELOPMENT AUTHORITY,
CITY OF LAKEVILLE, CITY OF MENDOTA HEIGHTS, INVER GROVE HEIGHTS
ECONOMIC DEVELOPMENT AUTHORITY, APPLE VAL LEY ECONOMIC
DEVELOPMENT AUTHORITY, EAGAN ECONOMIC DEVELOPMENT AUTHORITY,
HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY,
ROSEMOUNT PORT AUTHORITY, FARMINGTON ECONOMIC DEVELOPMENT
AUTHORITY, SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, AND WEST
ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, MIN NESOTA (each individually a
“Local Government Entity” and together the “Local Government Entities”), each a political
subdivision of the State.
RECITALS:
A. In order to pursue common goals of fostering economic development, the CDA and
the Local Government Entity Cities desire to engage the Metropolitan Consortium of Community
Developers, a Minnesota non-profit corporation (“MCCD”) to undertake the “Open To Business
Program” (the “Program”) within Dakota County (the “County”).
B. Pursuant to the Program, MCCD will provide technical assistance and access to
capital to small business and potential entrepreneurs in the County.
C. The CDA and the Local Government Entities propose to jointly exercise their
common economic development powers to undertake the Program.
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the
CDA and each of the Local Government Entities, each party does hereby represent, covenant and
agree with the other s as follows:
Section 1. Representations. Each of t he Local Government Entities and the CDA
makes the following representations as to itself as the basis for the undertaking on its part herein
contained:
(a) It is a political subdivision of the State of Minnesota with the power to enter
into this Agreement and carry out its obligations hereunder.
Joi nt Powers Agreement 2
(b) Neither the execution and delivery of this Agreement, the consummation of
the transactions contemplated hereby, nor the fulfillment of or compliance with the terms
and conditions of this Agreement is pr evented, limited by or conflicts with or results in a
breach of, the terms, conditions or provisions of any restriction or any evidences of
indebtedness, agreement or instrument of whatever nature to which it is now a party or by
which it is bo und, or constitutes an event of default under any of the foregoing.
Section 2. Powers to be Exercised. The powers to be jointly exercised pursuant to
this Agreement are the powers of the CDA and the Local Government Entities under Minnesota
Statutes, Chapter 469, to undertake activities to promote economic development within their
respective jurisdictions.
Section 3. Method for Exercising Common Powers; Funds. The CDA, on its own
behalf and on behalf of the Local Government Entities, will init ia lly enter into an agreement with
MCCD in substantially the form attached hereto as Exhibit A (the “Agreement”) to engage
MCCD to operate the Program within Dakota County. The CDA and each of the Local
Government Entities will make payments to MCCD as described in Exhibit A of the Agreement.
The CDA may from time to time execute and deliver documents amending, modifying or
extending the Agreement as it deems necessary or convenient, provided, that no such document
will adversely affect services provided to, or amounts payable by, any Local Government Entity
without the prior written consent of such Local Government Entity.
Section 4. Limited Liability. Neither the CDA nor the any of the Local Government
Entities shall be liable for the acts or omissio ns of the other in connection with the activities to be
undertaken pursuant to this Agreement. To the extent permitted by law, (a) the CDA hereby
indemnifies the Local Government Entities for costs associated with claims made against the
Local Government Entities directly relating to actions taken by the CDA, and (b) each Local
Government Entity hereby indemnifies the CDA for costs associated with claims made against
the CDA directly relating to actions taken by such Local Government Entity. Nothing her ein
shall be deemed a waiver by the indemnifying party of the limits on liability set forth in
Minnesota Statutes, Chapter 466; and the indemnifying party shall not be required to pay, on
behalf of the indemnified party, any amounts in excess of the limits on liabilit y set forth in
Minnesota Statutes, Section 466.04, less any amounts the indemnifying party is required to pay
on behalf of itself, its officers, agents and employees for claims arising out of the same
occurrence.
Section 5. Conflict of Interests; Representatives Not Individually Liable. The CDA
and each of the Local Government Entities, to the best of its knowledge, represent s and agrees that
no member, official or employee of their respective bodies shall have any personal interest, direct
or indirect, in this Agreement, nor shall any such member, official or employee participate in any
decision relating to this Agreement which affects his or her personal interests or the interests of any
corporation, partnership, or association in which he or she is directly or indirectly interested. No
member, official or employee of the CDA or any Local Government Entity shall be personally
liable with respect to any default or breach by any of them or for any amount which may become
due to the other party or successor or on any obligations under the terms of this Agreement.
Joi nt Powers Agreement 3
Section 6. Term; Distribution of Property. The term of this Agreement shall expire
on December 31, 2023. There is no property which will be acquired by the CDA or any Local
Government Entity pursuant to the Program which would need to be distributed at the end of the
term hereof.
Section 7. Notices and Demands. A notice, demand or other communication under
this Agreement by any party to another shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt requested or delivered personally to the
person and at the addresses identified on each signature page hereto, or at such other address with
respect to either such party as that party may, from time to time, designate in writing and forward
to the other as provided in this Section.
Section 8. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
[Remainder of page intentionally left blank]
Joint Powers Agreement
S - 1
IN WITNESS WHEREOF, the CDA and the Local Government Entities have caused this
Agreement to be duly executed in their respective names and behalf as of the date first above
written, with actual execution on the dates set forth below.
DAKOTA COUNTY COMMUNITY
DEVELOPMENT AGENCY
Dated:_____________________ By _______________________________
Its Executive Director
Notice Address:
Dakota County Community Development Agency
1228 Town Centre Drive
Eagan, MN 55123
Attn: Lisa Alfson, Director of Community and Economic Development
Joint Powers Agreement
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EAGAN ECONOMIC DEVELOPMENT
AUTHORITY
Dated: ________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
3830 Pilot Knob Road
Eagan, MN 55122
Attn: ______________________________
Joint Powers Agreement
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BURNSVILLE ECONOMIC DEVELOPMENT
AUTHORITY
Dated: _______________ By _________________________________
Its City Manager
By _________________________________
Its ________________________________
Notice Address:
100 Civic Center Parkway
Burnsville, MN 55337
Attn: City Manager
Joint Powers Agreement
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CITY OF LAKEVILLE, MINNESOTA
Dated: __________________ By _________________________________
Its Mayor
By _________________________________
Its City Clerk
Notice Address:
20195 Holyoke Avenue
Lakeville, MN 55044
Att n: Community and Economic Development Director
Joint Powers Agreement
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CITY OF MENDOTA HEIGHTS
Dated: _______________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
1101 Victoria Curve
Mendota Heights, MN 55118
Attn: Community Development Director
Joint Powers Agreement
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APPLE VALLEY ECONOMIC DEVELOPMENT
AUTHORITY
Dated: __________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
7100 147th Street W.
Apple Valley, MN 55124
Attn: ______________________________
Joint Powers Agreement
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INVER GROVE HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
Dated: _____________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
8150 Barbara Avenue
Inver Grove Heights, MN 55077
Attn: ______________________________
Joint Powers Agreement
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HASTINGS ECONOMIC DEVELOPMENT AND
REDEVELOPMENT AUTHORITY
Dated: __________________ By _________________________________
Its:_________________________________
By _________________________________
John Hinzman
Its Executive Director
Notice Address:
101 East 4th Street
Hastings, Minnesota 55033
Attn: Executive Director
Joint Powers Agreement
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ROSEMOUNT PORT AUTHORITY
Dated: _________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
2875 145t h Street
Rosemount, MN 55068
Attn: ______________________________
Joint Powers Agreement
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FARMINGTON ECONOMIC DEVELOPMENT
AUTHORITY
Dated: ________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
430 Third Street
Farmington, MN 55024
Attn: ______________________________
Joint Powers Agreement
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SOUTH ST. PAUL ECONOMIC
DEVELOPMENT AUTHORITY
Dated: __________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
125 Third Ave. No.
South St. Paul, MN 55075
Attn: Executive Director
Joint Powers Agreement
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WEST ST. PAUL ECONOMIC
DEVELOPMENTAUTHORITY
Dated: _____________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
1616 Humboldt Avenue
West St. Paul, MN 55118
Attn: Executive Director
Joint Powers Agreement
A - 1
Exhibit A
Contract for Services for the Open To Business Program
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Contract for Services
for the
Open To Business Program
THIS AGREEMENT is dated ______, and is between the Dakota County Community
Development Agency (“CDA”) and Metropolitan Consortium of Community Developers, a
Minnesota nonprofit corporation (“MCCD”).
WHEREAS, the CDA, on behalf of itself and the 11 political subdivisions of the State of
Minnesota listed on Exhibit A here to (the “Local Government Entities”), which each have
powers with respect to a city with a population over 10,000 (collectively the “Municipalities”),
wishes to engage MCCD to render services under the model known as “Open To Business,” an
initiative providing small business technical assistance and capital to existing businesses and
residents and other parties interested in opening a business within Dakota County (the “County”)
(the “Initiative”); and
WHEREAS, MCCD has successfully provided the services required to administer and carry out
the Initiative in Dakota County from 2013 – 2021; and
WHEREAS, pursuant to CDA Resolution No. 21-6500, adopted on December 14, 2021 (the
“Resolution”), the CDA is authorized to enter into this agreement with MCCD for the Initiative;
and
WHEREAS, pursuant to the Resolution and certain joint powers agreements to be entered into
between the CDA and the Local Government Entities “the “Joint Powers Agreements”), the
CDA will act as fiscal agent for the Local Government Entities in connection with this
Agreement; and
WHEREAS, the CDA will pay from its own funds 50% of the fee charged by MCCD for the
Initiative in the Municipalities and 100% of the fee charged by MCCD for the Initiative in the
small cities and townships within the County with populations less than 10,000 residents (“Small
Cities and Townships”), as further described herein and in Exhibit A; and
WHEREAS, pursuant to the Joint Powers Agreements, the Local Government Entities will be
required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A,
representing the remaining 50% of the fee charged by MCCD for the Initiative in the
Municipalities.
Now therefore, for good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows”
TIME OF PERFORMANCE
The term of this Agreement and the period during which MCCD will provide services
hereunder will commence upon the first day of January 2022, and automatically renew
January 1, 2023. This agreement will terminate on December 31, 2023, subject to earlier
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termination as provided herein. MCCD will perform services necessary to carry out the
Initiative as promptly as possible, and with the fullest due diligence.
COMPENSATION
The CDA will compensate MCCD for its services hereunder an amount equal to One
Hundred Fifty Thousand Dollars ($150,000) (“Contract Amount”). The CDA will pay
such amount in two equal installments, the first no earlier than March 1st and the second
no earlier than September 30th, upon receipt of invoices from MCCD. Subject to the
limits above, payments will be due within 15 days of receipt of the respective invoices.
The portion of the Contract Amount payable from Participation Fees will be payable by
the CDA only from and to the extent such Participation Fees are paid by the respective
Local Government Entities.
In the event a Local Government Entity does not pay the CDA its Participation Fee in
amounts and by deadline described in Exhibit A, the CDA will notify MCCD, and
MCCD will immediately cease the Initiative in that Municipality. Upon such termination,
the Contract Amount will be reduced by an amount equal to the Participation Fee which
such Local Government Entity did not pay and the amount the CDA would have paid as a
matching payment.
SCOPE OF SEVICES
MCCD will provide technical assistance and access to capital to existing businesses,
residents and those parties interested in starting a business in any of the Municipalities,
Small Cities, and Townships within Dakota County as further described on Exhibit B and
Exhibit C hereto, which sets forth the Dakota Open To Business Program Scope of
Services.
REPORTING
MCCD will submit quarterly reports to the CDA in form and substance acceptable to the
CDA. Reports will provide information in the agreement for County and will include a
sub-report for each Municipality and each of the Small Cities and Townships Reports
will include the following information:
➢ Number of inquiries, entrepreneurs, and businesses served
➢ Hours of technical assistance provided
➢ Hours of dedicated program (including but not limited to – city initiatives, program
outreach, public events, city meetings, research, client follow-up, general inquiries)
➢ Type of business/industry
➢ Annual sales revenue
➢ Number of businesses opened
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➢ Number of businesses expanded/stabilized
➢ Number and amount of financing packages
➢ Demographic information on entrepreneurs
➢ Business city and/or resident city
The required reporting schedule is as follows:
1st quarter January – March, report due April 30th
2nd quarter April – June, report due July 31st
3rd quarter July – September, report due October 31st
4th quarter October – December, report due January 31st
In addition to the foregoing, MCCD will provide additional reports as reasonably
requested by the CDA or Local Government Entities.
Client confidentiality being a core component of the service model, MCCD will not
typically report specific client/business information in its regular reporting, However,
where permission from the client, MCCD will produce profiles of successful clients for
publication dissemination and media release.
PERSONNEL
MCCD represents that it has, or will employ or contract for, at its own expense, all
personnel required to perform the services necessary to carry out the Initiative. Such
personnel will not be employees of, or have any contractual relationship with, the
County, the CDA, or any of the Local Government Entities. No tenure or any other rights
or benefits, including worker’s compensation, unemployment insurance, medical care,
sick leave, vacation pay, severance pay, or any other benefits available to County, CDA,
or any of the Local Government Entities’ employees shall accrue to MCCD or employees
of MCCD performing services under this Agreement. MCCD is an independent
contractor.
All of the services required to carry out the Initiative will be performed by MCCD and all
personnel engaged in the work shall be fully qualified and shall be authorized or
permitted under State and local law to perform such work.
Natalie Mouislo shall be the dedicated MCCD Initiative advisor for the County, CDA,
and Local Government Entities for the duration of this Agreement. If there are material1
changes to Ms. Mouilso’s position with MCCD during the time of this Agreement, the
CDA will be informed by MCCD immediately.
1 Material is defined as any event or events that would prohibit Ms. Mouislo from being the full -time Initiative
Advisor for Dakota County.
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USE OF CDA OFFICE SPACE
The CDA will make available a cubicle space for MCCD personnel at the CDA office
building for use by MCCD in carrying out the Initiative. MCCD personnel will have
access to the CDA meeting rooms, wireless internet services, copy machines, and
printers. MCCD personnel shall comply with all CDA office rules and policies regarding
the use of CDA office space, equipment, and internet access. If the CDA, in its sole
direction, determines that MCCD personnel has failed to comply with CDA office rules
and policies, MCCD personnel will be required to vacate the CDA office and the CDA
will cease to provide MCCD office space to carry out the Initiative.
INTEREST OF MEMBERS OF THE CDA AND OTHERS
No officer, member, or employee of the CDA and no member of its governing body, and
no other public official or governing body of any locality in which the Initiative is
situated or being carried out, who exercises any functions or responsibilities in the review
or approval of the undertaking or carrying out of the Initiative, will participate in the
decision relating to this Agreement which affects he/she is, directly or indirectly,
interested or has any personal or pecuniary interest, direct or indirect, in this Agreement.
ASSIGNABILITY
MCCD will not assign any interest in this Agreement and will not transfer any interest in
the same without the prior written approval of the CDA.
COMPLIANCE WITH LOCAL LAWS
MCCD agrees to comply with all federal laws, statutes, and applicable regulations of the
State of Minnesota and the ordinances of the Local Government Entities.
INSURANCE
General Terms. In order to protect itself and to protect the CDA under the indemnity
provisions set forth above Contractor shall, at Contractor's expense, procure and maintain
a policy of Professional Liability (PL) insurance covering the term of this Contract. Such
policy of PL insurance shall apply to the extent of, but not as a limitation upon or in
satisfaction of, the indemnity provisions herein. All retentions and deductibles under such
policies of insurance shall be paid by Contractor. Each such policy of insurance shall
contain a clause providing that such policy shall not be cancelled by the issuing insurance
company without at least 30 days’ written notice to the CDA of intent to cancel.
Certificates. Prior to or concurrent with execution of this Contract, Contractor shall file
certificates of such policies of insurance with the CDA.
Failure to Provide Proof of Insurance. The CDA may withhold payments or immediately
terminate this Contract for failure of Contractor to furnish proof of insurance coverage or
to comply with the insurance requirements as stated above.
INDEMINFICATION
MCCD agrees to defend, indemnify, and hold harmless the County, the CDA, the Local
Government Entities, and each of their respective officials, agents, volunteers and
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employees from any liability, claims, causes of action, judgements, damages, losses,
costs, or expenses, including reasonable attorney’s fees, resulting directly or indirectly
from any act or omission of MCCD, its subcontractors, anyone directly or indirectly
employed by MCCD or any if its subcontractors, and/or anyone for whose acts and/or
omissions MCCD may be liable in the performance of the services required by this
Agreement, and against all loss by reason of failure of MCCD to perform any obligation
under this Agreement.
NOTICES
A notice, demand, or other communication under the Agreement by either party to the
other shall be sufficiently given or delivered if it is dispatched by mail, portage prepaid,
return receipt requested, or delivered personally; and
(a) In the case of MCCD is addressed or delivered personally to:
Tyler Hilsabeck
Metropolitan Consortium of Community Developers
3137 Chicago Avenue South
Minneapolis, MN 55407
(b) In the case of the CDA is addressed or delivered personally to:
Lisa Alfson, Director of Community and Economic Development
Dakota County Community Development Agency
1228 Town Centre Drive
Eagan, MN 55123
Or at such other address with respect to any party as that party may designate in writing
and forward to the other as provided in this Section.
MODIFICATION
This Agreement may not be modified, changed, or amended in any manner whatsoever
without the prior written approval of all the parties hereto.
NON-DISCRIMATION
In connection with its activities under this Agreement, MCCD will not violate any
Federal or State laws against discrimination.
DEFAULT AND CANCELLATION
Failure of the MCCD to perform any of its obligations under this Agreement to the
satisfaction of the CDA will constitute in a default hereunder.
If a default occurs, MCCD will have 60 days to cure any and all defaults and come into
compliance with this Agreement. MCCD will immediately notify the CDA of any
default. MCCD and the CDA will develop agreed upon milestones that must be met
within the 60-day period to avoid cancellation of this Agreement.
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The primary default would be the loss of Ms. Mouilso as the dedicated MCCD Initiative
advisor. If Ms. Mouilso is no longer the dedicated MCCD Initiative advisor, MCCD will
be expected to meet the following milestones within the 60-day period –
1. MCCD will inform the CDA within 48 hours of Ms. Mouilso’s employment
departure notice.
2. The name and contact information of the interim MCCD Initiative advisor for
Dakota County will be shared with CDA and Local Government Entities within
three business days of Ms. Mouilso’s departure notice.
3. MCCD will continue to actively work with Dakota County clients on a full-time
basis in the event of a default and respond to client communication in a timely
manner as defined elsewhere in this Agreement.
4. MCCD will continue to track and input client data to ensure the quarterly report is
accurate when generated (see REPORTING section, page 2, for details).
5. MCCD staff, including the interim MCCD Initiative advisor, will meet with CDA
staff weekly (at a minimum) to provide updates on clients, Initiative work in
Dakota County, etc. Local Government Entities will be invited to these meetings.
6. MCCD will continue to actively market the MCCD Initiative in the same capacity
as prior to the default.
7. Hiring a new dedicated MCCD Initiative advisor for Dakota County is not
expected within 60 days of the default; however, steps to securing a new,
qualified, full-time MCCD Initiative advisor will occur within the 60 days. Steps
taken to secure a new advisor will be regularly communicated to CDA.
If a default is not remedied in 60 days, and/or the agreed upon milestones are not met
within the 60 days, the CDA may cancel this Agreement in its entirety by five additional
days’ written notice to MCCD.
MINNESOTA LAWS GOVERN
The Laws of the State of Minnesota shall govern all questions and interpretations
concerning the validity and construction of this Agreement and the legal relations
between the parties and their performance. The appropriate venue and jurisdiction for any
litigation will be those courts located within the County. Litigation, however, in the
federal courts involving the parties will be in the appropriate federal court within the
State of Minnesota. If any provision of this Agreement is held invalid, illegal or
unenforceable, the remaining provisions will not be affected.
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DAKOTA COUNTY COMMUNITY
DEVELOPMENT AGENCY
By:_______________________________
Tony Schertler, Executive Director
Date: _____________________________
MCCD
By:
Printed Name: Elena Gaarder
Printed Title: Chief Executive Officer
Date:
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Exhibit A
2022 & 2023 Local Government Entity Annual Participation Fee
Schedule
Municipality Local Government
Entity
Total
Fee
CDA
Share of
Fee
Local Government
Entity Participation
Fee
Lakeville
City of Lakeville $18,900 $9,450 $9,450
Eagan
Eagan Economic Development
Authority $18,900 $9,450
$9,450
Burnsville
Burnsville Economic
Development Authority $18,650 $9,325 $9,325
Apple Valley
Apple Valley Economic
Development Authority $16,200 $8,100
$8,100
Inver Grove
Heights
Inver Grove Heights Economic
Development Authority $13,000 $6,500 $6,500
Rosemount
Rosemount Port Authority $10,400 $5,200 $5,200
Farmington
Farmington Economic
Development Authority $10,300 $5,150 $5,150
Hastings
Hastings Economic
Development and
Redevelopment Authority
$10,300 $5,150 $5,150
South St. Paul
South St. Paul Economic
Development Authority $10,100 $5,050 $5,050
West St. Paul
West St. Paul Economic
Development Authority $10,100 $5,050 $5,050
Mendota
Heights City of Mendota Heights $5,600 $2,800 $2,800
Small Cities
and Townships
n/a $7,550 $7,550 $0
Total $150,000 $78,775 $71,225
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Exhibit B
Dakota Open To Business Program Scope of Services
Open To Business (“OTB”) Technical Assistance Services
MCCD will provide intensive one-on-one technical assistance to Municipalities’ and Small
Cities’ and Townships’ businesses, residents and aspiring entrepreneurs intending to establish,
purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota
County. MCCD will dedicate one full time staff person based in Dakota County to provide the
Technical Assistance Services (“Dakota OTB Staff”). In addition, MCCD will make available
the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open
to Business Program. Technical assistance includes, but is not limited to, the following:
➢ Business plan development
➢ Feasibility analysis
➢ Marketing
➢ Cash flow and other financial projection development
➢ Operational analysis
➢ City and State licensing and regulatory assistance
➢ Loan packaging, and other assistance in obtaining financing
➢ Help in obtaining competent legal advice
MCCD Dakota OTB Staff will be available to meet clients at the CDA office building, various
Municipality city halls or at the client’s place of business. During the COVID-19 pandemic,
MCCD Dakota OTB staff will only meeting clients in-person if the MCCD Dakota OTB staff are
comfortable; otherwise, client meetings will be held virtually and/or on the phone.
Open To Business Access to Capital
Access to capital will be provided to qualifying businesses through MCCD’s Emerging Small
Business Loan Program (see Exhibit C Small Business Loan Program Guidelines below).
MCCD also provides it’s financing in partnership with other community lenders, banks or Local
Government Entities interested in making capital available to residents and/or businesses in their
community.
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EXHIBIT C
Small Business Loan Program Guidelines
Loan Amounts:
• Up to $25,000 for start-up businesses
• Larger financing packages for established businesses
• Designed to leverage other financing programs as well as private financing provided by
the commercial banking community.
Eligible Projects:
• Borrowers must be a “for-profit” business.
• Business must be complimentary to existing business community.
• Borrowers must have equity injection as determined by fund management.
Allowable Use of Proceeds:
• Loan proceeds can be used for working capital, inventory, building and equipment and
general business operations.
Interest Rates:
• Loan interest rate is dependent on use, term and other factors, not to exceed 7%.
Loan Term Length:
• Loan repayment terms will generally range from three to five years, but may be
substantially longer for major asset financing such as commercial property.
Fees and Charges:
• Borrowers are responsible for paying all customary legal and other loan closing costs.
Page 1 of 1
DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY
BOARD OF COMMISSIONERS
Meeting Date: December 14, 2021 Resolution No. 21-6500
Motion by Commissioner Hamann-Roland Seconded by Commissioner Atkins
Approval Of Two-Year Participation Agreement For Open To Business Program
WHEREAS, the Dakota County Community Development Agency (CDA) was granted the powers of an
economic development authority in 2000 by Minnesota Law and an authorizing resolution adopted by the
Dakota County Board of Commissioners (Resolution No. 00-543); and
WHEREAS, the CDA in conjunction with the 11 largest cities in Dakota County launched the countywide Open
To Business program in 2013 to provide business advisory services and access to capi tal to entrepreneurs and
small businesses in Dakota County; and
WHEREAS, the CDA and 11 cities have annually renewed participation in the Open To Business program since
2013, with the CDA acting as the fiduciary agent and administrator of the contract wit h the Metropolitan
Consortium of Community Developers and joint powers agreements executed between each participating city
and the CDA; and
WHEREAS, the cost for the 2022 Open To Business program is $150,000 and the cost for the 2023 Open To
Business program is $150,000; and
WHERAS, the CDA portion of the annual cost of the program is fifty percent (50%) to match each participating
city, as well as to cover the total cost of serving the small cities and townships; and
WHEREAS, the Open To Business program is consistent with the Economic Development Strategy and Guiding
Principles adopted by the Dakota County CDA Board of Commissioners, in that it results from a collaborative
approach; it is a response to a need for specialized expertise and economies of scale; it serves a need that is
located in more than one community; and it is non-duplicative of other services.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of
Commissioners, hereby:
1. Approves CDA participation in the Open To Business program for 2022 and 2023 subject to
participation of the Dakota County cities.
2. Authorizes the Executive Director to execute a two-year contract with the Metropolitan Consortium of
Community Developers for an amount not to exceed $150,000 annually, of which the CDA’s portion of
the fee shall not exceed $78,775.
3. Authorizes the Executive Director to execute a joint powers agreement between the CDA and the
participating cities, designating the CDA as fiscal agent for the contract with the Metropolitan
Consortium of Community Developers and requiring each city to submit a participation fee to the CDA.
I, Sarah Jacobson, as designee of the Executive Director, pursuant to the
Dakota County Community Development Agency bylaws, do hereby certify
that I have compared the foregoing copy of a resolution with the original
minutes of the proceedings of the Dakota County Community Development
Agency Board of Commissioners, at their regular session held on the 14th
day of December 2021, now on file in the in the CDA Administration
Department, and have found the same to be a true and correct copy
thereof. Witness my hand and official seal of Dakota County CDA this 15th
day of December 2021.
Administrative Coordinator
Aye Nay Absent Abstain
Slavik
Gaylord
Halverson
Atkins
Workman
Holberg
Hamann-Roland
Cummings
Clients Served YTD
Client Inquiry 13
Existing - Challenged 29
Existing -Opportunity 56
Pre-start planning 51
Start-up 35
Total 184
Business Owner Demographics YTD
Low-Income Owned 46
BIPOC or Immigrant
Owned 68
Woman Owned 95
Financing & Access to Capital YTD
Approved (YRLY Total) $ 5,000.00
Equity (YRLY Total) $133,000.00
Facilitated (YRLY Total) $268,600.00
Program Hours
TA Program HRS
1st QTR 288.25 318
2nd QTR 266.27 235
3rd QTR 250.25 241
4th QTR 264.00 274
Total 1,068.77 1,068
TA: Client Meetings, Providing Resources, Client Calls,
Client Deliverables, Loan Packaging
Program HRS: City Initiatives, Program Outreach, Public
Events, City Meetings, Research, Client Follow Up,
Data/Admin, General Inquiries
Dakota County Quarterly Report – 12.31.2021
Open to Business
3137 Chicago Ave
Minneapolis, MN 55407
612-789-7337
Industry Segment YTD
Construction / Real Estate 11
Food 30
Health/Fitness 13
Manufacturing 7
Consulting 20
Retail 41
Service 42
Technology 5
Wholesale / Distribution 4
Other 11
Total 184
Referral Source YTD
Bank Referral
11
Entrepreneur 7
Friends and Family 8
Municipality 87
MCCD Partner 22
Other 14
Web 35
Total 184
City YTD Business Resident
Apple Valley 19 15
Burnsville 23 19
Eagan 22 15
Farmington 22 21
Hastings 22 17
Inver Grove Heights 7 8
Lakeville 19 18
Rosemount 11 10
Mendota Heights 5 4
South St. Paul 13 10
West St. Paul 15 9
Other Dakota Co. 4 3
Other/ No Data 7 12
Dakota County Quarterly Report
2
Direct Financing & Access to Capital*
Loan Closed Q2 - 2021:
Business Type: Dessert Vendor with Food Trailer
Location: Inver Grove Heights
Referred by: Partner Organization
OTB Financing: $5,000.00
Owner Equity: $6,000.00
Other Financing: $25,000.00
Overview: This 100% BIPOC-woman-owned dessert business sells sweets at festivals and pop-up events on a seasonal
basis. The business owner is growing her business by investing in a fully equipped food trailer. This investment will
result in new efficiencies for the business as she has been operating as a food stand and spends valuable time and
resources setting up, loading equipment, traveling back and forth to events, and packing up when weather is bad. The
new trailer will allow her to focus more time on her customers and give her increased flexibility.
The financing secured comes after working closely with Open to Business for approximately 24 months. In that time, the
business owner has built her branding, social media presence, budgeting skills, and financial projections in preparation
for the loan request with her credit union. The total funding is $36,000. OTB is directly financing the purchase of baking
equipment for the build-out of the trailer, as well as working capital for the overall project.
Loan Closed Q4 - 2021:
Business Type: Ethiopian Restaurant & Event Space
Location: Eagan
Referred by: Local Bank
Owner Equity: $99,000.00
SBA Financing through MCCD Partner, African Development Center: $231.000.00
Loan Packaged & Facilitated by MCCD
Overview: With more than 30 years of combined experience in the service and hospitality industries both in the US and
abroad, these BIPOC and immigrant entrepreneurs were driven to pursue their dream of opening an Ethiopian
restaurant, event space, and catering business in Eagan, Minnesota. The business owners were referred to MCCD’s
Open to Business by a banker contact in December 2020. The owners worked closely with MCCD for 8 months to flesh
out their ideas, prepare a well-researched business plan, produce startup financial statements and budget projections,
along with other documents necessary for underwriting the loan request. When the loan package was ready, the MCCD
team brought in a partner with SBA lending capabilities, the African Development Center (ADC), and facilitated the loan
request. ADC received approval from the SBA in late October and the loan was closed shortly thereafter in early
November. The business owners expect to create 6 jobs when the business opens in 2022.
Business Expansion Grants Received Q4 - 2021:
Business Type: Beauty Business
Location: Burnsville
Referred by: Municipality
Owner Equity: $28,000.00
MicroGrant: $2,600.00
Comcast Rise Investment Grant: $10,000.00
Grant Applications Facilitated by MCCD
Dakota County Quarterly Report
3
Overview: Seeing a need for a local beauty supply store which caters to textured hair, this business owner felt that it
was her calling to open her beauty business in Burnsville. Her business ownership journey began when she opened her
first Burnsville location in 2019. Due to a combination of factors, she chose to close her brick and mortar space and
focus on her online store in hopes of reopening in a new and better suited location as soon as possible. The business
owner began working with Open to Business in fall of 2020 with the goal of obtaining funding and reestablishing her
physical store. Since that time, she’s worked closely with her OTB business advisor to achieve her goals. In April of 2021
the business re-opened in Burnsville and in Fall of 2021 two grants were received which will give the business owner the
capacity to grow her business and purchase supplies, inventory, new technology, and marketing materials.
“I just want to say thank you so much for everything you have done for me, and the business!
I am extremely grateful for everything!”
-- Burnsville Business Owner
*Does not capture COVID relief loans/grants/funding facilitated by MCCD staff.
Q4 Highlights, Networking, & Outreach
Fulbright Scholar at MCCD
• MCCD welcomes Eman Alaghbari, Humphrey Fellow and Fulbright Exchange Scholar from Yemen. Eman joins MCCD
on a part time basis until March 31, 2022 and will work closely with MCCD leadership and the Open to Business
team to learn about community and economic development strategies, tools, and resources. Eman will bring the
knowledge she gains in Minnesota back to Yemen to provide new strategies for Yemeni entrepreneurs who are
working to rebuild in light of the war that has been ongoing in the country for the past 7 years.
Staffing Updates
• MCCD is pleased to welcome our newest Business Advisor, Yoni Reinharz, who joins MCCD with a strong background
in digital content creation, communications, and marketing. Yoni is a business owner and long-time entrepreneur
and has worked with both for-profit and non-profit organizations and social enterprises. Yoni will be advising
businesses throughout the OTB service area with a focus on Minneapolis and the City of Northfield.
Programming, Partnerships, & Trainings
• Oct. 4 – 8: MCCD co-hosted the annual conference of the National Alliance of Community Economic Development
Associations (NACEDA) which was held virtually. MCCD organized sessions spotlighting economic development in
Minnesota on October 6th including a keynote address by Minnesota’s Lt. Governor Peggy Flanagan and a session on
Building a Business Advisor Pipeline.
• November 17: MCCD hosted the 2nd virtual Q&A with the University of MN Law School. This free virtual event was
open to businesses at any stage. The event was at capacity with 15 businesses in attendance. The Q&A session was
recorded and is available for viewing here. Additional Q&As will be held in 2022.
• November 18: MCCD and Amplio (formerly Spedco) co-hosted a virtual panel discussion on non-traditional business
financing. The event was well attended by more than 60 people including many community bankers, city/county
employees, and community development non-profits. Presentations were made by MCCD, Amplio, the African
Development Center, the City of Minneapolis, and the City of South Saint Paul. The event was recorded and is
available for viewing here. We’re planning a similar event in Spring / Summer 2022, hopefully in person.
Dakota County Quarterly Report
4
• January 28: We are pleased to invite our community partners to join a virtual community development focused
policy and advocacy training on January 28th from 10:00 AM – 12:00 PM. MCCD's Co-Directors of Public Policy and
Field Building, Kadra Abdi and Kari Johnson, will walk through how to navigate local, regional, and state government
and guest speaker lawmakers will be present to provide their insights also. Additional information and registration
info here.
• February: In partnership with the MN Dept. of Labor, MCCD is hosting a live virtual Q&A session in February on
labor policies, regulations, and resources for small business owners. The event is open to businesses in any stage.
Event date and time to be announced. Registration information is forthcoming soon.
Advertising & Outreach
• Thank you for sharing out the recent ads about our programs and services. We are currently working on creating an
Ad Library with fresh ads on a variety of topics that can be used as you see fit. The library will be shared out soon
and will give our partners new flexibility to choose the ad and format that suits their needs.
• Meetings, presentations, and events that occurred in Q4 continued to focus on bank outreach to build and
strengthen those relationships and increase awareness around MCCD’s lending program. Meetings or outreach
occurred specifically with 21st Century Bank, American Investors Bank and Mortgage, Bremer Bank, Choice Bank,
Frandsen Bank, Genisys Credit Union, Home Federal Savings Bank, HomeTown Bank, Key Community Bank,
Merchants Bank, Minnwest Bank, Prime Security Bank, Spire Credit Union, Sunrise Bank, Think Bank, and Wells
Fargo. As a direct result of continued engagement and outreach, my Dakota County loan pipeline currently has 7
potential deals pending!
• In addition to banker outreach, I was a panelist at the NECEDA conference’s Building a Business Advisor Pipeline
session on October 6th and made presentations for the City of Farmington’s Coffee Connection event on Dec 2nd, the
Dakota County CDA on Dec 14th, and the City of Lakeville City Council on Dec 20th. Regular meetings occurred with
the Workforce Development Board’s Business Services/Economic Development Committee. Partnership or update
meetings occurred with the University of MN Law School, the Dakota County Regional Chamber of Commerce,
African Development Center, the City of Eagan, the City of Farmington, the City of Burnsville, and the City of West
Saint Paul.
• Ongoing concerns around COVID variants has prompted MCCD to continue our virtual meeting policy for the time
being. The policy will be reevaluated on a month-to-month basis. My office hours will continue virtually although I
am available to meet in person with clients and partners on a case-by-case basis.
Selected Program Feedback
“We are blessed with having such great partners like MCCD.” – Local Banker, SBA Division Manager
“Thank you for offering such detailed feedback on the business plan. It really helped us to reevaluate and add additional
details based on your feedback that will make this a stronger business proposal.” – Apple Valley Business Owner
“As a small business owner, it’s great to have a place you feel can add value to your business and help with ideas.”
– Lakeville Business Owner
“Wow. Thanks so much for being so welcoming to us. We can’t wait to work with you guys!!!”
– Farmington Business Owner
Dakota County Quarterly Report
5
MCCD Client Profile
Meet Open to Business client Annie Qaiser, owner of Silk Road Wellness (SRW) and the Dakota-Scott County Workforce
Development Board’s Entrepreneur of the Year for 2021. SRW is the first Halal certified natural skincare line made in
the United States. All products are handmade by this family-owned business based in Rosemount, Minnesota. SRW
products are sold at www.silkroadwellness.com and numerous brick and mortar locations locally.
Silk Road Wellness was built out of a desire to bring handmade, natural, high quality wellness products that are Halal
certified to Annie’s own family, the Muslim community, and beyond. In the 11 years since the launch of the business,
Annie has steadily and tirelessly committed to its growth in the face of challenges and adversity.
As a direct result of her tireless efforts, this family business has experienced tremendous growth particularly in the past
1.5 years including 8 new product placements locally. Earlier this year the business applied for and won a course-
changing opportunity: a retail space at the Mall of America’s Community Commons. Through these efforts a wider
audience was garnered for the products and Annie’s role in the business community grew exponentially. Today, Annie is
a small business leader, advocate, and innovator and Silk Road Wellness is paving the way for future entrepreneurs.
Annie receives the Entrepreneur of the Year Award presented by Natalie, Dec. 2021.
Watch the award presentation here.
“We consider ourselves fortunate and blessed to be surrounded by amazing
resources like MCCD and supportive people like you!”
– Annie Qaiser, Silk Road Wellness