HomeMy WebLinkAbout20240319 Packet
AGENDA
Port Authority Regular Meeting
Tuesday, March 19, 2024
6:00 PM
Council Chambers, City Hall
1. CALL TO ORDER/PLEDGE OF ALLEGIANCE
2. ADDITIONS OR CORRECTIONS TO AGENDA
3. CONSENT AGENDA
a. Minutes of the February 20, 2024 Regular Meeting
4. CHAIRPERSON’S REPORT
5. REPORTS FROM PORT AUTHORITY COMMISSIONERS
6. NEW BUSINESS
a. Approval of Open to Business Joint Powers Agreement
7. OLD BUSINESS
a. Project Updates
8. DISCUSSION
9. ADJOURNMENT
Page 1 of 54
ROSEMOUNT PORT AUTHORITY
REGULAR MEETING PROCEEDINGS
FEBRUARY 20, 2024
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Pursuant to due call and notice thereof, a regular meeting of the Rosemount Port Authority
was held on Tuesday, February 20, 2024, at 6:00 PM. in Rosemount Council Chambers, 2875
145th Street West.
Chairperson Essler called the meeting to order with Commissioners Freske, Essler, Theisen and
Beaudette. Commissioner Klimpel and Weisensel were absent.
ADDITIONS OR CORRECTIONS TO AGENDA
Motion by Theisen Second by Freske
Motion to approve agenda.
Ayes: 5.
Nays: None. Motion Carried.
CONSENT AGENDA
Motion by Ober Second by Theisen
Motion to approve consent agenda.
Ayes: 5.
Nays: None. Motion Carried .
a. Minutes of the January 16, 2024 Regular Meeting
CHAIRPERSON’S REPORT
None.
REPORTS FROM PORT AUTHORITY COMMISSIONERS
Commissioner Ober shared a recent article she saw which highlighted Restaurant Week in
Eagan. Commissioner Ober suggested this event to be a good way for restaurants to showcase
certain menu items and a way to get customers in the door. Staff stated Rosemount has not
done anything like this, except for during COVID (bingo cards) and the Food Truck Fest where
local restaurants with mobile trucks may participate.
NEW BUSINESS
a. Hotel Market Dynamics
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Economic Development Coordinator Van Oss introduced Chris Flagg of TPI Hospitality,
who presented the latest hospitality trends. Mr. Flagg noted there are 8 submarkets in
the greater Minneapolis area. The submarket for Rosemount is Eagan/35E South area,
noting this submarket is 4th in size however ranked 8th in performance and stated the
market has not yet come back to the market standards prior to Covid.
Mr. Flagg stated when it comes to having a hotel in the south, there are limited
primary demands, a glut of new supply in Bloomington and Rosemount is too far away
to capture compression nights from Minneapolis and Minneapolis area. The south
metro is missing a demand generator; i.e. Blaine international sports complex.
Mr. Flagg further discussed the next steps to take to determine the hotel needs in
Rosemount; order a feasibility report, encourage high amenities, mixed-use
developments, consider subsidizing projects that induce new hotel demand, i.e.
Regional sports complex, convention center, entertainment district and to build a hotel
for Monday-Thursday business and not just for the weekends.
b. Minnesota MedTech Hub
Economic Development Coordinator Van Oss explained the Greater MSP region was
designated as one of the leading technology hubs in the U.S. through a national
competition run by the U.S. Department of Commerce. The “Minnesota MedTech 3.0”
effort builds on existing strengths to create a medical device ecosystem that is even
more connected, more strategic and “smarter” by incorporating cutting-edge
technologies, such as artificial intelligence, machine learning and data science. Staff
wanted to bring the awareness of the hubs to the Port Authority as staff is in the
discussions of the steps to continue to drive the opportunity.
The continued membership with Greater MSP puts Rosemount in a greater position
especially being Rosemount has a Port Authority.
OLD BUSINESS
a. Project Updates
Economic Development Coordinator Van Oss highlighted the Rosemount Expo and noted
there is no additional activity on the Isrealson Property at this time.
DISCUSSION
None.
Page 3 of 54
ADJOURNMENT
There being no further business to come before the City Council at the regular council meeting
and upon a motion by Essler and a second by Freske the meeting was adjourned at 6:56 p.m.
Respectfully submitted,
Erin Fasbender
City Clerk
Page 4 of 54
EXECUTIVE SUMMARY
Port Authority Regular Meeting: March 19, 2024
AGENDA ITEM: Approval of Open to Business Joint Powers
Agreement
AGENDA SECTION:
NEW BUSINESS
PREPARED BY: Adam Kienberger, Community Development
Director
AGENDA NO. 6.a.
ATTACHMENTS: Dakota County OTB Narrative Report - Q4 2023,
CDA_OTB_Agreement_2024.2026_executed, 5D -
Approval Of Three-Year Participation Agreement
For Open To Business Program, CDA Resolution 23-
6776, OTB_joint powers agreement_2024-2026
APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve the Joint Powers Agreement between Dakota County
CDA and the City of Rosemount Port Authority relating to the 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 2-year period following a 1-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 3-year contract (2024-2026).
The payment by Rosemount will be the same for three years ($5,650) which is up from $5,200 during
the last contract. The Dakota County CDA will be paying the other 50% of the city’s costs. 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 along with the slight financial
increase.
As typically shared with the Port Authority, attached is the program’s 2023 Year End Report which
highlights a number of successes throughout Dakota County.
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 3-year Open to Business Joint Powers Agreement.
Page 5 of 54
Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390
Q4 2023 ending 12.31.2023
Clients Served YTD
Client Inquiry 4
Existing - Challenged 19
Existing - Opportunity 45
Pre-start planning 57
Start-up 43
Total 168
Business Owner Demographics YTD
Low-Income Owned 63
BIPOC or Immigrant Owned 86
Woman Owned 82
Financing & Access to Capital YTD
Approved (YRLY Total) $ 604,855.00
Equity (YRLY Total) $ 751,362.00
Facilitated (YRLY Total) $3,166,022.00
Program Hours
TA Program HRS
1st QTR 382.00 159
2nd QTR 299.75 213
3rd QTR 293.25 223
4th QTR 290.25 179
Total 1,265.25 774
TA: Client Meetings, Providing Resources, Client Calls, Client Deliverables, Loan Packaging
Program HRS: City Initiatives, Program Outreach, Public Events, City Meetings, Research, Data/Admin, General Inquiries
Page 6 of 54
Dakota County Q4 Report 12.31.2023
2
Industry Segment YTD
Construction / Real Estate 5
Food 27
Health/Fitness 16
Manufacturing 2
Consulting 11
Retail 32
Service 39
Technology 3
Wholesale / Distribution 3
Other/TBD 13
Total 168
Referral Source YTD
Bank Referral
21
Entrepreneur 8
Friends and Family 20
Municipality 50
MCCD Partner/Staff 14
Other 48
Web 7
Total 168
City YTD Business Resident
Apple Valley 22 15
Burnsville 20 18
Eagan 22 23
Farmington 13 16
Hastings 15 11
Inver Grove Heights 10 10
Lakeville 19 26
Mendota Heights 1 1
Rosemount 12 13
South St. Paul 6 7
West St. Paul 9 7
Other Dakota Co. 0 2
Other/ No Data 19 19
Page 7 of 54
Dakota County Q4 Report 12.31.2023
3
Direct Financing & Access to Capital
Business Type: Thai Grocery Store – Updated Q3
Business Locations: Burnsville & South Saint Paul
Owner Residence: Woodbury
Referred by: Bank Partner & City of South Saint Paul
MCCD Financing: $125,000
Owner Equity: $196,391
Other Financing: $2,455,472
Overview: MCCD approved gap financing for a BIPOC-owned business expansion. The owners currently operate
a Thai grocery store in Burnsville and are expanding the business to include a new wholesale and distribution
business line with a second location in South Saint Paul to include extra storage for the grocery inventory as well
as a deli walk up window. The project is the development of a multitenant building which will include space for
two additional tenants. MCCD financing will be utilized for construction costs. Update: After this loan was
initially approved in Q1 2023 an adjustment to the total project costs increased the project size from
$1,920,000 to $2,455,472. The loan was reapproved by MCCD in August and closed in September 2023.
Business Type: Financial Advisory
Business Location: Hastings & Lakeville
Owner Residence: Lakeville
Referred by: Bank Partner
MCCD Financing: $204,000
Owner Equity: $46,000
Other Financing: $255,000
Overview: MCCD approved permanent term financing for a commercial real estate purchase by a growing
financial advisory business based in Lakeville with a second location in Hastings. The project was brought to
MCCD via a bank partner and the real estate transaction is part of a larger business expansion plan and
ownership transition for the Hastings location. The real estate purchase and eventual business purchase will
retain 6 full-time jobs and create 1 new full-time position.
Business Type: Hair Braiding Salon
Business Location: Eagan
Owner Residence: Eagan
Referred by: MCCD Community Partner
MCCD Financing: $25,000
Owner Equity: $21,000
Overview: MCCD approved financing for this immigrant owned start-up hair braiding salon business. The owner
has been working in the industry for nearly 10 years, always renting chairs at other salons, and splitting her
profits with the salon owner. With startup capital provided by MCCD she will be able to open her own space in
Eagan, expand her clientele, and build wealth for herself and her family. In addition to braiding services, the
salon will have two rental chairs available and will sell high-quality products that cater to the Black and African
community in the area.
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Dakota County Q4 Report 12.31.2023
4
Business Type: Adult Daycare Homes and Services
Business Locations: Business Office in Burnsville with homes owned in Inver Grove Heights (2), Apple Valley (1),
Farmington (1), Crystal (1), and newest location in New Hope (1)
Owners Residences: Eagan & Prior Lake
Referred by: Bank Partner
MCCD Financing: $37,200
Owner Equity: $37,200
Bank Financing: $297,600
Overview: MCCD partnered with Amplio and a local bank on this real estate transaction for a growing adult
daycare and homecare business. Our participation (which is considered equity by the SBA) at 10% of the total
project costs allowed the business owners to meet Amplio’s 20% equity requirement and retain much needed
working capital in the business. Through the real estate purchase, the owners are adding a new residential
home in New Hope, MN to the existing roster of home care facilities where the business operates throughout
the Twin Cities region. One of the business’s owners is Native American and the new location will create new
opportunities for the community of New Hope.
Business Type: Trucking
Business Location: Hastings
Owner Residence: Hastings
Referred by: Bank Partner
MCCD Financing: $25,000
Bank Financing: $44,450
Owner Equity: $16,545
Overview: MCCD approved financing for this startup transportation business. This industry veteran has worked
for decades driving trucks for other businesses. He finally took the leap to establish himself as an owner
operator in January 2023 when he approached his bank about his business idea. The bank referred him to OTB
to help with a business plan and financial projections. After a few months of planning the project was ready to
move forward in July. This new business will create one job for the business owner, who is a low-income
individual, and allow him the opportunity to build wealth for himself and his family.
Business Type: Restaurant
Business Location & Owner Residence: Inver Grove Heights
Referred by: Community Outreach
MCCD Financing: $110,000
Partner Financing: $110,000
Owner Equity: $129,490
Overview: MCCD approved financing for this immigrant owned business expansion in Inver Grove Heights in July
2023. This full-service, family-owned Mexican restaurant has been a community staple in IGH since 2015 with a
solid local following. The business embarked on an expansion to a larger location in 2021 but due to unforeseen
costs and logistics, the project had been stalled for quite a while. Having exhausted their available funds, the
owners were stuck paying rent at both locations with a partially completed renovation. The business connected
with MCCD advisor Vicky Gonzalez in summer of 2022 at a community event and she worked tirelessly to find a
path forward for this family business. MCCD brought in a non-profit lending partner and together the
organizations collaborated on the final funding package. The business has three existing employees and when
the expansion is complete, three new jobs will be created.
Page 9 of 54
Dakota County Q4 Report 12.31.2023
5
Business Type: Restaurant
Business Location: Apple Valley
Owner Residence: Rosemount
Referred by: Municipality
MCCD Financing: $67,935
Owner Equity: $290,000
Overview: This husband-and-wife team of seasoned entrepreneurs contacted OTB for startup financing to
complete leasehold improvements and provide working capital. After years of successfully operating a sushi
franchise, the business owners decided to start a new food business which could appeal to a wider variety of
customers. The new restaurant is in a prime retail and commercial area of Apple Valley and will serve fried fish,
seafood, and chicken, as well as sandwiches, fried fish tacos, and freshly hand cut fries. This immigrant owned
business opened January 11, 2024, and created two full time jobs for the owners and two part time jobs for
kitchen helpers.
Business Type: Hair Braiding Salon
Business Location: Apple Valley
Owner Residence: Lakeville
Referred by: Bank Partner
MCCD Financing: $10,000
Owner Equity: $5,500
Overview: This business owner was referred to OTB by Royal Credit Union, Apple Valley. The business was
poised for growth although the owner did not have the working capital on hand to bring in new products and
make important equipment upgrades. With a loan from MCCD the business will be able to book new services
and raise prices, increasing income for the owner and her family. As a single parent of four children, this hard-
working and dedicated business owner is now set up for success in 2024.
Credit Builder Loans
In collaboration with nonprofit partners who provide credit building & financial awareness counseling, MCCD provides
$240 Credit Builder Loans (CBLs) to qualified applicants seeking to improve their personal credit. Credit Builder
applicants complete financial training through MCCD’s partners and are then referred to MCCD for a CBL. MCCD
generates and services the CBLs in-house.
2023 Credit Builder Loans YTD
Resident City Loan Amount
Rosemount $240
West Saint Paul $240
West Saint Paul $240
TOTAL $720
Business Grants
Business Type: Driving School Business
Location: Apple Valley
Referred by: Google Search
MicroGrant: $3,500 (Grant Application Facilitated by MCCD)
Owner Equity: ~$10,000
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Dakota County Q4 Report 12.31.2023
6
Overview: This low-income, women business owner learned of the Open to Business program by searching
online for resources. After working as a driving instructor for a few years and falling in love with the work, this
entrepreneur recognized the opportunity to establish her own school. After pouring every spare dollar into the
startup costs, the business owner had a gap of ~$3,000 which MCCD was able to fill through a MicroGrant. The
grant covered the remaining costs for equipment, supplies, and technology. With the additional funding the
business owner opened her doors in June with a fully equipped classroom space. As the head of a household
with 6 children, this business owner is on the path to building a strong business and a successful future.
Highlights, Networking, & Outreach
Funding & Policy Updates
• November 9 – Along with clients and partners, MCCD held our Annual Meeting to celebrate collective
community impact. Read the accompanying Annual Report which summarizes achievements in policy,
advocacy, field building, small business development, lending, and shared ownership.
• December 13 – MCCD was recognized as a recipient of DEED’s Small Business Assistance Partnership Grant
designed to support organizations dedicated to empowering BIPOC entrepreneurs and small business owners.
Programming, Partnerships, & Trainings
• October 10 – The Open to Business team participated in the first annual teambuilding retreat. The team
gathered to reflect on 2023 and look ahead to 2024.
• November 8 – In partnership with accounting firm Tax Actions of Minneapolis, MCCD hosted a bookkeeping and
accounting Q&A webinar. The event provided an overview of bookkeeping practices for small businesses as well
as a Q&A section.
• November 14 – MCCD, alongside Mni Sota Fund and Shared Capital Cooperative, collaborated with the MN
Small Business Administration District Office to organize a Capital Strategies Symposium to discuss constructing
a more inclusive finance system. The event featured remarks by Geri Sanchez Aglipay, Regional Administrator,
SBA, Neela Mollgaard, Executive Director, DEED Office of Small Business Innovation, and St. Paul Mayor Melvin
Carter.
• November 17 – In partnership with the UMN Law School, MCCD hosted a Small Business Law Q&A webinar
where legal experts provide transaction-based legal assistance to small businesses on a variety of subject
matters including entity formation, owner distributions, and commercial lease review.
• December 1 – MCCD rolled out a Holiday Shopping Guide which featured clients and businesses in our
community.
• January 19 – Join the Open to Business team as we host our first in person Small Business Planning Workshop of
2024 at the MCCD Office. The training is open to entrepreneurs throughout the region and will provide
attendees with the tools and resources needed to write a business plan.
Advertising & Outreach
• Banker and lender outreach occurred specifically with Merchants Bank, Minnwest Bank, Northeast Bank, Royal
Credit Union, Scale Bank, Sunrise Bank, Think Bank, and US Bank.
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Dakota County Q4 Report 12.31.2023
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• Written or in-person presentations were made and/or networking efforts were made including Minnesota
Minority Goods & Services Association on October 3, CMDC Business Financing on October 16, West Saint Paul
Workforce Development Center on October 20, St. Thomas Small Business Development Center on November
20, Dakota County Bi-Monthly City/County Meeting on December 14. Regular updates / meetings occurred with
the Workforce Development Board’s Business Services/Economic Development Committee, the University of
MN Law School, Dakota County CDA, the City of Burnsville, the City of Eagan, and the City of Farmington.
• The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. Access the
Ad Library here.
Client Highlight
Meet Mireya Sanchez, owner of El Rincon Mexicano of Inver Grove Heights. This full-service, family-owned Mexican
restaurant has been a community staple in IGH since 2015 with a solid local following. The business serves healthy,
freshly prepared, and unprocessed food and even has a vegetarian menu! Mireya started the business when she felt
called to sell her enchiladas to the community. As the business grew, Mireya looked to expand to accommodate
additional dining spaces for both customers as well as her employees during their lunch breaks. The business embarked
on an expansion to a larger location in 2021 but due to unforeseen costs and logistics, the project stalled. Having
exhausted available funds, she was stuck paying rent at both locations with a partially completed renovation. The
business connected with MCCD advisor Vicky Gonzalez in summer of 2022 at a community event and Vicky worked
tirelessly to find a path forward providing in-depth technical assistance and sound professional resources. MCCD
brought in a non-profit lending partner and together the organizations collaborated on the final funding package. MCCD
approved financing in July 2023. The business has three existing employees and when the expansion is complete, three
new jobs will be created.
“MCCD has helped where I couldn’t and wouldn’t. It’s important that other Hispanic and other Latin people
know about MCCD’s existence.” - Mireya, Owner of El Rincon
Mireya Sanchez, Owner of El Rincon Mexicano, Inver Grove Heights
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1
Contract for Services
for the
Open To Business Program
THIS AGREEMENT is dated December 29, 2023, 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 hereto (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,” a
program 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 “Program”); and
WHEREAS, MCCD has successfully provided the services required to administer and carry out
the Program in Dakota County from 2013 – 2023; and
WHEREAS, pursuant to CDA Resolution No. 23-6776, adopted on December 19, 2023, (the
“Resolution”), the CDA is authorized to enter into this agreement with MCCD for the Program;
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 percent of the fee charged by MCCD for
the Program in the Municipalities and 100 percent of the fee charged by MCCD for the Program
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 percent of the fee charged by MCCD for the Program 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 2024, and automatically renew
January 1, 2025, and January 1, 2026. This agreement will terminate on December 31, 2026,
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
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subject to earlier termination as provided herein. MCCD will perform the services necessary
to carry out the Program as promptly as possible, and with the fullest due diligence.
COMPENSATION
The CDA will compensate MCCD annually for its services hereunder an amount equal to
One Hundred Sixty-Five Thousand Dollars ($165,000) (“Contract Amount”). The CDA will
pay such an 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 Program 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 and Municipalities in form and substance
acceptable to the CDA and Municipalities. 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
Number of businesses expanded/stabilized
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
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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, with 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 Program. 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 Program 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 Program advisor for the County, CDA, and
Local Government Entities for the duration of this Agreement. If there are material 1 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 Program
Advisor for Dakota County.
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
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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 Program. 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 Program.
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 Program 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 Program, 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 employees
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
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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.
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
Page 17 of 54
6
The primary default would be the loss of Ms. Mouilso as the dedicated MCCD Program
advisor. If Ms. Mouilso is no longer the dedicated MCCD Program 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 Program 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 Program advisor, will meet with CDA
staff weekly (at a minimum) to provide updates on clients, Program work in
Dakota County, etc. Local Government Entities will be invited to these meetings.
6. MCCD will continue to actively market the MCCD Program in the same capacity
as prior to the default.
7. Hiring a new dedicated MCCD Program advisor for Dakota County is not
expected within 60 days of the default; however, steps to secure a new, qualified,
full-time MCCD Program 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.
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
Page 18 of 54
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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:
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
12/29/2023
12/29/2023
Page 19 of 54
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Exhibit A
2024, 2025 & 2026 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 $21,380 $10,690 $10,690
Eagan
Eagan Economic Development
Authority $21,280 $10,640 $10,640
Burnsville
Burnsville Economic
Development Authority $21,000 $10,500 $10,500
Apple Valley
Apple Valley Economic
Development Authority $18,000 $9,000 $9,000
Inver Grove
Heights
Inver Grove Heights Economic
Development Authority $14,000 $7,000 $7,000
Rosemount
Rosemount Port Authority $11,300 $5,650 $5,650
Farmington
Farmington Economic
Development Authority $11,000 $5,500 $5,500
Hastings
Hastings Economic
Development and
Redevelopment Authority
$11,000 $5,500 $5,500
South St. Paul
South St. Paul Economic
Development Authority $10,800 $5,400 $5,400
West St. Paul
West St. Paul Economic
Development Authority $10,800 $5,400 $5,400
Mendota
Heights City of Mendota Heights $6,000 $3,000 $3,000
Small Cities
and Townships
n/a $8,440 $8,440 $0
Total $165,000 $86,720 $78,280
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
Page 20 of 54
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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, County libraries, or at the client’s place of business. Client meetings
may also 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.
Ribbon Cuttings & Grand Openings
MCCD Dakota OTB staff will assist the CDA and Local Government Entities with the
coordination of ribbon cuttings and grand openings for Program clients within Dakota County
who wish to participate to ensure that all Program clients receive the option of this introduction
into their communities. Coordinating efforts may include promoting the event, finalizing
date/time of event with Program client, sending out invitations, and taking photographs.
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
Page 21 of 54
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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:
• The 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.
DocuSign Envelope ID: 743DDAE5-4022-44F9-A734-05B673C5AB0C
Page 22 of 54
Board of Commissioners
Request for Board Action
Meeting Date: December 19, 2023 Agenda #: 5D
DEPARTMENT: Community and Economic Development
FILE TYPE: Regular - Consent
TITLE
..title
Approval Of Three-Year Participation Agreement For Open To Business Program
..end
PURPOSE/ACTION REQUESTED
Approve participation in the Open To Business program for 2024, 2025 and 2026.
Authorize Executive Director to enter into a contract with Metropolitan Consortium of Community
Developers for the Open To Business program, and enter into joint powers agreements with
participating cities.
SUMMARY
The CDA and the 11 largest cities in Dakota County launched Open To Business (OTB) in 2013, a
program that provides business advisory services and access to capital for entrepreneurs and small
businesses in Dakota County. The participating cities and CDA share the cost of the program. The
CDA enters into a joint powers agreement (JPA) with the 11 participating cities to act as the fiduciary
agent and to administer the contract with the Metropolitan Consortium of Community Developers
(MCCD), the OTB non-profit service provider.
Natalie Mouilso has been the Dakota County OTB business advisor since August 2020. Ms. Mouilso
provides one-on-one technical assistance to business owners and aspiring entrepreneurs on a wide
range of topics including business plan development, feasibility analysis, marketing, licensing, and
cash flow and other financial projection development. The participating cities have expressed
enthusiastic support for Ms. Mouilso continuing as the dedicated OTB advisor for the next three
years.
The annual cost of the OTB program for the next three years is $165,000. This reflects a 10 percent
increase from the last contract; however, the annual contract amount has been $150,000 since 2018.
The cost covers the direct and indirect staffing needs for the program. The CDA’s portion of the fee
will not exceed $78,280 to match the 11 participating cities’ fees plus the $8,440 to cover service for
the small cities and townships for a total CDA investment not to exceed $86,720 (Attachment A).
The CDA’s continued financial support of the countywide OTB program is supported by the CDA’s
economic development powers which were established by the Minnesota Legislature and the Dakota
County Board of Commissioners in 2000. The OTB program is consistent with several Economic
Development Strategy Guiding Principles including: (1) it is a collaborative approach to economic
development; (2) it serves a need located in more than one community; (3) it responds to the need for
specialized expertise and economies of scale; and (4) it is non-duplicative of other services.
RECOMMENDATION
..recommendation
Staff recommends entering into an agreement with MCCD for Open To Business services for 2024,
2025 and 2026, and executing joint powers agreements with the 11 participating cities.
..end
Page 23 of 54
Meeting Date: December 19, 2023 Agenda #: 5D
EXPLANATION OF FISCAL/FTE IMPACTS
The annual cost for the OTB program is $165,000. The costs will be split between the CDA and the
11 participating cities, with the CDA’s portion of $78,280 to match the 11 participating cities’ fees plus
the $8,440 to cover service for the small cities and townships for a total CDA investment not to
exceed $86,720. Participating cities will be invoiced for their portions of the cost.
☒ None ☐ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
..body
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 provides business advisory services and access to
capital to entrepreneurs and small businesses in Dakota County; an
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 with
the Metropolitan Consortium of Community Developers and joint powers agreements executed
between each participating city and the CDA; and
WHEREAS, the annual cost for the Open To Business program for 2024 – 2026 is $165,000; and
WHEREAS, 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 is 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 2024, 2025 and 2026
subject to participation of the Dakota County cities.
2. Authorizes the Executive Director to execute a three-year contract with the Metropolitan
Consortium of Community Developers for an amount not to exceed $165,000 annually, of
which the CDA’s portion of the fee shall not exceed $86,720.
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.
PREVIOUS BOARD ACTION
12-5128; 9-18-2012
13-5290; 10-17-2013
14-5467; 12-16-2014
Page 24 of 54
Meeting Date: December 19, 2023 Agenda #: 5D
15-5655; 12-15-2015
17-5830; 1-24-2017
17-5945; 12-12-2017
21-6387; 2-16-2021
21-6500; 12-14-2021
ATTACHMENTS
Attachment A: Proposed 2024-2026 agreement and fee schedule
BOARD GOALS
☐ Focused Housing Programs ☒ Collaboration
☐ Development/Redevelopment ☐ Financial Sustainability ☐ Operational Effectiveness
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☐ N/A
CONTACT
Department Head: Lisa Alfson, Director of Community and Economic Development
Author: Lisa Alfson
Page 25 of 54
1
Contract for Services
for the
Open To Business Program
THIS AGREEMENT is dated ______, 2023, 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,” a
program 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 “Program”); and
WHEREAS, MCCD has successfully provided the services required to administer and carry out
the Program in Dakota County from 2013 – 2023; and
WHEREAS, pursuant to CDA Resolution No.____, adopted on ____________ (the
“Resolution”), the CDA is authorized to enter into this agreement with MCCD for the Program;
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 percent of the fee charged by MCCD for
the Program in the Municipalities and 100 percent of the fee charged by MCCD for the Program
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 percent of the fee charged by MCCD for the Program 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 2024, and automatically renew
January 1, 2025, and January 1, 2026. This agreement will terminate on December 31, 2026,
Page 26 of 54
2
subject to earlier termination as provided herein. MCCD will perform the services necessary
to carry out the Program 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 Sixty-Five Thousand Dollars ($165,000) (“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 Program 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
Page 27 of 54
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,
with 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 Program. 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 Program 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 Program 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 Program
Advisor for Dakota County.
Page 28 of 54
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 Program. 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 Program.
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 Program 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 Program, 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
Page 29 of 54
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.
Page 30 of 54
6
The primary default would be the loss of Ms. Mouilso as the dedicated MCCD Program
advisor. If Ms. Mouilso is no longer the dedicated MCCD Program 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 Program 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 Program advisor, will meet with CDA
staff weekly (at a minimum) to provide updates on clients, Program work in
Dakota County, etc. Local Government Entities will be invited to these meetings.
6. MCCD will continue to actively market the MCCD Program in the same capacity
as prior to the default.
7. Hiring a new dedicated MCCD Program advisor for Dakota County is not
expected within 60 days of the default; however, steps to secure a new, qualified,
full-time MCCD Program 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.
Page 31 of 54
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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:
Page 32 of 54
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Exhibit A
2024, 2025 & 2026 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 $21,380 $10,690 $10,690
Eagan
Eagan Economic Development
Authority $21,280 $10,640 $10,640
Burnsville
Burnsville Economic
Development Authority $21,000 $10,500 $10,500
Apple Valley
Apple Valley Economic
Development Authority $18,000 $9,000 $9,000
Inver Grove
Heights
Inver Grove Heights Economic
Development Authority $14,000 $7,000 $7,000
Rosemount
Rosemount Port Authority $11,300 $5,650 $5,650
Farmington
Farmington Economic
Development Authority $11,000 $5,500 $5,500
Hastings
Hastings Economic
Development and
Redevelopment Authority
$11,000 $5,500 $5,500
South St. Paul
South St. Paul Economic
Development Authority $10,800 $5,400 $5,400
West St. Paul
West St. Paul Economic
Development Authority $10,800 $5,400 $5,400
Mendota
Heights City of Mendota Heights $6,000 $3,000 $3,000
Small Cities
and Townships
n/a $8,440 $8,440 $0
Total $165,000 $86,720 $78,280
Page 33 of 54
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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.
Ribbon Cuttings & Grand Openings
MCCD Dakota OTB staff will assist the CDA and Local Government Entities with the
coordination of ribbon cuttings and grand openings for Program clients within Dakota County
who wish to participate to ensure that all Program clients receive the option of this introduction
into their communities. Coordinating efforts may include promoting the event, finalizing
date/time of event with Program client, sending out invitations, and taking photographs.
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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.
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Board of Commissioners
Request for Board Action
Meeting Date: December 19, 2023 Resolution #: 23-6776
Motion by Commissioner Hamann-Roland Second by Commissioner Atkins
STATE OF MINNESOTA
County of Dakota
YES NO ABSENT ABSTAIN
Slavik ☒ ☐ ☐ ☐
Atkins ☒ ☐ ☐ ☐
Halverson ☐ ☐ ☒ ☐
Droste ☒ ☐ ☐ ☐
Workman ☒ ☐ ☐ ☐
Holberg ☒ ☐ ☐ ☐
Hamann-Roland ☒ ☐ ☐ ☐
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 19th day of December, 2023 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 20th day of December,
2023.
Administrative Coordinator
Approval Of Three-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
countrywide Open To Business program in 2013 to provide business advisory services and access to
capital 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 with
the Metropolitan Consortium of Community Developers and joint powers agreements executed
between each participating city and the CDA; and
WHEREAS, the annual cost for the Open To Business program for 2024 – 2026 is $165,000; and
WHEREAS, 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 is 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;
Page 36 of 54
1. Approves CDA participation in the Open To Business program for 2024, 2025, and 2026
subject to participation of the Dakota County cities.
2. Authorizes the Executive Director to execute a three-year contract with the Metropolitan
Consortium of Community Developers for an amount not to exceed $165,000 annually, of
which the CDA’s portion of the fee shall not exceed $86,720.
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.
Page 37 of 54
Joint Powers Agreement
JOINT POWERS AGREEMENT
Open to Business Program
THIS JOINT POWERS AGREEMENT (this “Agreement”), is made as of January 1,
2024, 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 VALLEY 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, MINNESOTA (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 others as follows:
Section 1.Representations. Each of the 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.
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Joint Powers Agreement2
(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 prevented, 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 bound, 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 initially 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 any of the Local Government
Entities shall be liable for the acts or omissions 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 herein
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 liability 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, represents 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.
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Joint Powers Agreement3
Section 6.Term; Distribution of Property. The term of this Agreement shall expire
on December 31, 2026. 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]
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Joint Powers AgreementA - 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
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Joint Powers AgreementA - 2
EAGAN ECONOMIC DEVELOPMENT
AUTHORITY
Dated: ________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
3830 Pilot Knob Road
Eagan, MN 55122
Attn: ______________________________
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Joint Powers AgreementA - 3
BURNSVILLE ECONOMIC DEVELOPMENT
AUTHORITY
Dated: _______________ By _________________________________
Its City Manager
By _________________________________
Its ________________________________
Notice Address:
100 Civic Center Parkway
Burnsville, MN 55337
Attn: City Manager
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Joint Powers AgreementA - 4
CITY OF LAKEVILLE, MINNESOTA
Dated: __________________ By _________________________________
Its Mayor
By _________________________________
Its City Clerk
Notice Address:
20195 Holyoke Avenue
Lakeville, MN 55044
Attn: Community and Economic Development Director
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Joint Powers AgreementA - 5
CITY OF MENDOTA HEIGHTS, MINNESOTA
Dated: _______________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
1101 Victoria Curve
Mendota Heights, MN 55118
Attn: ______________________________
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Joint Powers AgreementA - 6
APPLE VALLEY ECONOMIC DEVELOPMENT
AUTHORITY
Dated: __________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
7100 147th Street W.
Apple Valley, MN 55124
Attn: ______________________________
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Joint Powers AgreementA - 7
INVER GROVE HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
Dated: _____________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
8150 Barbara Avenue
Inver Grove Heights, MN 55077
Attn: ______________________________
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Joint Powers AgreementA - 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
Page 48 of 54
Joint Powers AgreementA - 9
ROSEMOUNT PORT AUTHORITY
Dated: _________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
2875 145th Street
Rosemount, MN 55068
Attn: ______________________________
Page 49 of 54
Joint Powers AgreementA - 10
FARMINGTON ECONOMIC DEVELOPMENT
AUTHORITY
Dated: ________________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
430 Third Street
Farmington, MN 55024
Attn: ______________________________
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Joint Powers AgreementA - 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
Page 51 of 54
Joint Powers AgreementA - 12
WEST ST. PAUL ECONOMIC
DEVELOPMENTAUTHORITY
Dated: _____________ By _________________________________
Its ________________________________
By _________________________________
Its ________________________________
Notice Address:
1616 Humboldt Avenue
West St. Paul, MN 55118
Attn: Executive Director
Page 52 of 54
EXECUTIVE SUMMARY
Port Authority Regular Meeting: March 19, 2024
AGENDA ITEM: Project Updates AGENDA SECTION:
OLD BUSINESS
PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 7.a.
ATTACHMENTS: APPROVED BY: LJM
RECOMMENDED ACTION: Information Item
BACKGROUND
Ongoing and New Projects
Israelson properties: Preliminary and final plats will be considered in April by the Planning
Commission.
Akron/42: Staff is meeting with several other users interested in the remaining parcels adjacent to Life
Time. State Bank of Rosemount has submitted an application for a development on the Lennar side.
This development will include a new bank facility with a large community gathering space. This will also
include a coffee shop and lounge area. They will not be closing the downtown location, this will be a
second spot for them in town.
Enclave of Rosemount: A proposal for rental townhomes will be considered at the March 18th Planning
Commission meeting. This includes a request to rezone the site from R4 to R3.
Speedway: The Minnesota Pollution Control Agency has completed the final environmental review and
has not referred the site for additional remediation. Wells Fargo is planning to foreclose on the
property and take it into Wells Fargo’s REO portfolio. Staff is working with Lighthouse management to
engage directly with Wells Fargo on next steps.
CA Gear: The request for additional expansion space was approved in February. Construction is
planned for spring 2024.
Ribbon Cuttings and Events
Bigfoot/Jimnist: A kickoff ceremony hosted by the City's partner Greater MSP was held on March 14th.
Spectro Alloys: A ground-breaking for the 75 million expansion will be held on March 27th at 1:30pm.
New Horizon Academy: A ground-breaking will be held on April 10th at 2pm.
Page 53 of 54
Schafer Richardson: A ground-breaking ceremony will be held on April 16th at 3:30pm.
MREJ: The City of Rosemount has been nominated for two awards by the Minneapolis Real Estate
Journal. The event will take place from 4-7:30pm on April 18th. Staff would like to confirm Port
attendance before reserving table.
General Updates
Downtown Updates: Staff will update the Port on ongoing discussions regarding downtown.
RFI Trends: Staff will update the Port on recent RFI user trends and current site status.
MVTA Update: Staff will update Port on recent engagements with MTVA.
Rosemount Expo Recap: The revamped Rosemount Community Expo was a success. There were over
860 attendees this year, which is the highest number recorded for this event. Overall, the vendors and
workshop organizers gave positive feedback. All the survey responses ranked the event as either
"excellent" or "very good." The majority of vendors found the event length of 5 hours to be "about
right." Staff has provided a handout of the budget break down for Port members. Looking towards next
year, staff would like to build upon this success and continue to transition the Business Expo to a
Community Expo focused on local businesses, community groups and performances/classes.
RECOMMENDATION
None
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