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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 S - 2 EAGAN ECONOMIC DEVELOPMENT AUTHORITY Dated: ________________ By _________________________________ Its ________________________________ By _________________________________ Its ________________________________ Notice Address: 3830 Pilot Knob Road Eagan, MN 55122 Attn: ______________________________ Joint Powers Agreement S - 3 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 S - 4 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 S - 5 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 S - 6 APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY Dated: __________________ By _________________________________ Its ________________________________ By _________________________________ Its ________________________________ Notice Address: 7100 147th Street W. Apple Valley, MN 55124 Attn: ______________________________ Joint Powers Agreement S - 7 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 S - 8 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 S - 9 ROSEMOUNT PORT AUTHORITY Dated: _________________ By _________________________________ Its ________________________________ By _________________________________ Its ________________________________ Notice Address: 2875 145t h Street Rosemount, MN 55068 Attn: ______________________________ Joint Powers Agreement S - 10 FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY Dated: ________________ By _________________________________ Its ________________________________ By _________________________________ Its ________________________________ Notice Address: 430 Third Street Farmington, MN 55024 Attn: ______________________________ Joint Powers Agreement S - 11 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 S - 12 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 1 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 2 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 3 ➢ 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. 4 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 5 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. 6 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. 7 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By:_______________________________ Tony Schertler, Executive Director Date: _____________________________ MCCD By: Printed Name: Elena Gaarder Printed Title: Chief Executive Officer Date: 8 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 9 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. 10 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