HomeMy WebLinkAbout03/23/2017 EDA Meetingcity of AppleVlle
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Meeting Location: Municipal Center
7100 147th Street West
Apple Valley, Minnesota 55124
March 23, 2017
ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA
6:00 p.m.
1. Call to Order
2. Approve Agenda
3. Approve Consent Agenda Items
Consent Agenda Items are considered routine and will be enacted with a single motion,
without discussion, unless a commissioner or citizen requests to have any item separately
considered. It will then be moved to the regular agenda for consideration.
A. Approve Minutes of January 26, 2017
4. Regular Agenda Items
A. "Open to Business" Program
1. Update on "Open to Business" Program
2. Authorize JPA with Dakota County Community Development Agency
5. EDA Items and Communications
(For items EDA wishes to discuss)
6. Staff Updates
A. Update on the Use of Tax Increment for Soil Correction and Reclamation
7. Adjourn
Regular meetings are broadcast, live, on Charter Communications Cable Channel 180 and on the City's
website at www.cityofapplevalley.org
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
January 26, 2017
Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota
County, Minnesota, held January 26, 2017, at 6:00 p.m., at Apple Valley Municipal Center.
PRESENT: Commissioners Bergman, Goodwin, Hamann -Roland, Hooppaw, Maguire and
Melander
ABSENT: Commissioners Grendahl
City staff members present were: Executive Director Tom Lawell, City Attorney Michael
Dougherty, Community Development Director Bruce Nordquist and Department Assistant Joan
Murphy.
Meeting was called to order at 6:30 p.m. by President Goodwin.
APPROVAL OF AGENDA
President Goodwin asked if there were any changes to the agenda.
Executive Director Tom Lawell reported that the item 4.0 — public hearing for Outlot C, Valley
Business Park was requested by the applicant to be removed and will be rescheduled at a later
date.
MOTION: of Bergman, seconded by Hamann -Roland, approving the agenda as amended.
Ayes - 6 - Nays - 0.
CONSENT AGENDA
MOTION: of Hamann -Roland, seconded by Hooppaw, approving the minutes of the meeting
of December 8, 2016, as written. Ayes - 6 - Nays - 0.
2017 BOARD OFFICERS
MOTION: of Bergman, seconded by Hamann -Roland, adopting Resolution No. EDA 2017-01
appointing 2017 officers of the Economic Development Authority as: President —
Goodwin, Vice -President — Melander, Secretary — Gackstetter, Treasurer —
Hooppaw, and Assistant Treasurer — Gackstetter. Ayes - 6 - Nays - 0.
2017 MEETING CALENDAR
MOTION: of Hamann -Roland, seconded by Bergman, approving the dates on the 2017
calendar and the first meeting of 2018. Ayes - 6 - Nays — 0.
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
January 26, 2017
Page 2
ADJOURNMENT
MOTION: of Hooppaw, seconded by Melander, to adjourn. Ayes - 6 - Nays - 0.
The meeting was adjourned at 6:45 p.m.
Respectfully Submitted,
J . Murphy, Department Ass
Approved by the Apple Valley Economic
Development Authority on Tom Goodwin, President
city of Apple II
Valley
ITEM:
EDA MEETING DATE:
SECTION:
4.A
March 23, 2017
Regular
PROJECT NAME:
Open To Business Program
PROJECT DESCRIPTION:
Joint Powers Agreement with Dakota County CDA
STAFF CONTACT:
Joan Murphy, Department Assistant
DEPARTMENT/DIVISION:
Community Development Department
APPLICANT:
City of Apple Valley
PROJECT NUMBER:
PC13-09-M
Action Requested
• Approve the Joint Powers Agreement with Dakota County CDA and various participating
communities to participate in the "Open to Business" program.
Project Summary/Issues
Attached for your consideration is a Joint Powers Agreement with the Dakota County Community
Development Agency (CDA) for the "Open to Business" program in Dakota County. The program is
offered through the Metropolitan Consortium of Community Developers (MCCD), and helps small
businesses and entrepreneurs that need individual advice and counseling, and access to capital that is
not available from the commercial banking system. Small businesses and entrepreneurs generate a
significant number of jobs and income, but are often unable to obtain traditional funding because they
are considered too risky by many lending institutions. The technical assistance and financing network
offered by MCCD can make a difference in creating a successful business.
The "Open to Business" program supports on-site business services specialist Laurie Crow who is
available for one-on-one consultations at regular office hours one day every month, as well as. Ms.
Crow provides expertise in start-up financing and business plan development, as well as meeting with
businesses at other locations at their convenience. In addition to Apple Valley, the participating
communities include Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville,
Mendota Heights, Rosemount, South St. Paul, West St. Paul, and small cities and townships in the
County.
Open to Business Coordinator Laurie Crow will attend and present an update on the program in Apple
Valley.
Budget Impact
The CDA will continue to administer the program and fund half of MCCD's $140,000 fee;
participating cities fund the other half of the fee. Apple Valley's cost to participate in this program
for 2017 is $7,767, which represents 50% of the total cost for the City's participation of $15,533. The
funds have been allocated in the EDA's 2017 budget.
Attachment(s)
1. 2017 Joint Powers Agreement 2. Contract for Services with MCCD
JOINT POWERS AGREEMENT
Open to Business Program
THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of January 1,
2017, 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 CITY OF BURNSVILLE, 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.
Joint Powers Agreement
(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 the 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.
2
Joint Powers Agreement
Section 6. Term; Distribution of Property. The term of this Agreement shall expire
on December 31, 2017. 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]
3
Joint Powers Agreement
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
S - 1
Joint Powers Agreement
Dated:
Notice Address:
7100 147th Street W.
Apple Valley, MN 55124
Attn:
APPLE VALLEY ECONOMIC DEVELOPMENT
AUTHORITY
By
Its
By
Its
S - 6
Joint Powers Agreement
Exhibit A
Contract for Services for the Open To Business Program
A-1
Joint Powers Agreement
Contract for Services
for the
Open to Business Program
THIS AGREEMENT is dated January 25, 2017 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 eleven 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 a model known as "Open to Business," an
initiative providing small business technical assistance services 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 - 2016; and
WHEREAS, pursuant to CDA Resolution No. 17-5830, adopted on January 24, 2017 (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 of less than 10,000 people
("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 on January 1, 2017 and will end on December 31, 20.17,
1
subject to earlier 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
Subject to reduction as provided below, the CDA will compensate MCCD for its services
hereunder an amount equal to One Hundred Forty Thousand Dollars ($140,000)
(-Contract Amount"). The CDA will pay such amount in two equal installments, the first
no earlier than January 30, 2017 and the second no earlier than June 30, 2017, upon
receipt of invoices from MCCD. Subject to the limits above, payments will he 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 to the CDA its Participation Fee in
amounts and by the 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 SERVICES
MCCD will provide technical assistance to existing businesses, residents and those
parties interested in starting a business in any of the Municipalities and Small Cities and
Townships as further described on Exhibit B and Exhibit C attached hereto, which sets
forth the Dakota Open to Business Program Scope of Services.
IMPORT I NG
MCCD will submit quarterly reports to the CDA in form and substance acceptable to the
CDA. Reports will provide information in the aggregate for the 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
Hours of...technical assistance provided
's>. Type of assistance provided
• Type of business
Annual sales revenue
Number of businesses opened
• Number of business expanded/stabilized
2
\i> Number and amounts of financing packages
• Demographic information on entrepreneurs
.),› Business address or resident address
Number and wage of FTEs created.
• Number and wage of FTEs retained
The required reporting schedule is as follows:
Iquarter January — March, report due April 30th
2" quarter April * June, report due July 31't
3rd quarter July — September, report due October 31'
4th quarter October — December, report due January 3 Is', 2018
In addition to the foregoing, MCCD will provide additional reports as reasonably
requested by the CDA.
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 the County's,
the CDA's or any of the Local Government Entities' employees shall accrue to MCCD or
employees of MCCD performing services under this agreement, The 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,
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 Cak's meeting rooms, wireless interne/ service, 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. Tithe CDA, in its sole
discretion, determines that MCCD Personnel have 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.
3
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 his/her personal interest or the interest
of any corporation, partnership, or association in which heishe is, directly or indirectly,
interested or has any personal or pecuniary interest, direct or indirect, in this Agreement
ASSIGNABWTY
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 win" LOCAL LAWS
MCCD agrees to comply with all federal laws, statutes and applicable regulations of tie
State of Minnesota and the ordinances of the Local Government Entities*
INSURANCE
MCCD agrees at ail times during the term of this Agreement, and beyond such term when
so required, to have and keep in force the following insurance coverages:
Commercial General Liability on an occurrence
basis with contractual liability coverage:
General Aggregate $2,000,000
Products—Completed Operations Aggregate 2,000,000
Personal and Advertising injury 1,500,000
Each Occurrence—Combined Bodily
Injury and Property Damage 1,500,000
Workers' Compensation and Employer's Liability:
Workers' Compensation
in the event that MCCD should hire employees or
subcontract this work, MCCD shall obtain the
required insurance.
Statutory
Employer's Liability. Bodily injury by:
Accident—Each Accident 500,000
Disease Policy Limit 500,000
Disease Each Employee 500,000
4
INDEMNIFICATION
MCC) agrees to defend, indemnify„ and hold harmless the County, the CDA, the Local
Government Entities, and each of their respective officials, officers, agents, volunteers
and employees from any liability, claims, causes of action, judgments, 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 of 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 the 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, postage prepaid,
return receipt requested, or delivered personally; and
(a)
In the case of MCCD, is addressed or delivered personally to:
Metropolitan Consortium of Community Developers
3137 Chicago Avenue South
Minneapolis, MN 55407
(h) 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 Dr,
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 provide in the 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-DISCRIMINATION
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 a default hereunder.
Unless MCCD's default is cured within 15 days following notice by the CDA, the CDA
may (i) cancel this Agreement in its entirety by 5 additional days' written notice to
MCCD, or (ii) withhold payment from MCCD as long as such default continues,
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.
DAKOTA C . NT COMMUNITY
DEVELOPMENT AGENCY
Acting Execut Director
CCD
e�
13)..
Printed Nai:
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rinted Title:
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Exhibit A
2017 Local Government Entity Participation Fee Schedule
Municipality
Eagan
B urnsvi 1 le
Lakeville
Local Government
Entity
Total
Fee
CDA
Share of
Fee
$7,767
agan Economic Development
Authority
S15,533
Local Government
Entity Participation
Fee
$7,766
Apple Valley
Inver Grove
Heights
City Burnsville
City of I ,akevil lc
Apple Valley Economic
Development Authority
Inver Grove Heights Economic
Development Authority
S15,533
$15,533
S15,533
$7,767
$12,956 $6,478
$7,766
Hastings
Rosemount
Ilastings Economic
Development and
Redevelo ment Authority
Rosemount Port Authority
Farmington
q 4 -q
Farimngton Economic
Development Authority
$10,342 $5,171
$10,342 $5,171
$I0,342
$5,171
$7,766
$7,766
$6,478
$5,171
$5,171
$5,171
South St. Paul Economic
Development Authority
West St. Paul
Mendota
Small Cities
and Townslai
Total
West St. Paul Economic
Development Authority
City of Mendota Heights
$5,170 $2,585
$10,342
$5,171
$10,342 $5,171
• • • ' •••• • •
$5,171
$5,171
$2,585
$8,032 $8,032
$140,000
$74,018
$65982
8
Exhibit B
Dakota Open to Business Program Scope of Services
Open to Business ("OTB") Technical Assistance Set -vices
MCCD wili 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 (the "County"). MCCD \yin dedicate one fun time staff person based in the 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
lielp 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. MCCD Dakota OTB Staffwill
provide technical assistance on a walk-in basis monthly in each Municipality, if requested,
MCCD will also hold two-hour "Test Drive Your Business Idea" sessions once a month in
various Municipality locations.
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.
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.
• 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 10%.
Loan Terni 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 CI a -gr...L
• Borrowers are responsible for paying all customary legal and other loan closing costs.
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MCCD Direct Loans — Total
How many direct loans did we
make in 2016?
How much of our own funds
have we lent out?
How much other money did our
loan fund leverage?
How many jobs will our small
businesses create or retain?
$184,576 $391,028
$258,411
36 100
$418,200 $829,625
$624,500 $5,800,739
84.5 90
Direct Loans generally of $25,000 or less (to new and emerging businesses)
How many micro -loans did we
make in 2016? 11 8 10
How much of our own funds did
we lend out as micro -loans? $120,576 $102,028 $98,200
How
much other money did our
micro -loan program leverage? $82,173 $81,603 $237,000
How many jobs will our micro -
loan borrowers create or retain? 25 50 15.5
Direct Loans generally greater than $25,000 (to second stage and growing businesses)
How many second stage
business loans did we make in
2016?
How much of our own funds did
we lend out as second stage
loans?
How much other money did our
second stage loan program
leverage?
How many jobs will our second
stage borrowers create or
retain 11 50 69
$176,238 $459,926 $387,500 $5,769,375
Credit Builder Loans
How many credit builder loans
did MCCD make in 2016? 39 28 17
What share of our credit builder
loans went to minorities? 90% 100%
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City of ApplValley
MEMO
Community Development
TO: Apple Valley Economic Development Authority and Executive Director
FROM: Bruce Nordquist, AICP, Community Development Director
MEETING
DATE: March 23, 2017
SUBJECT: Update on the Use of Tax Increment for Soil Correction and Reclamation
On April 1, 2016 Fischer Sand and Aggregate (Rockport LLC) made application to the Apple
Valley EDA for consideration of tax increment financing and business assistance in the mining
area. The proposed project is the reclamation of a gravel mining site and site preparation for
mixed use development. Special legislation in 2013 allows the sand and gravel area to be
qualified as a project area, which would lead to the establishment of a tax increment district in
the future. The project area was established in May 2016.
Since then, staff continues working and meeting with the Fischer team on the proposed financial
and development aspects of the 384 acres. The first phase of that development, planning 40
acres of retail at 157th Street and Pilot Knob and medical office north of 155th Street and Pilot
Knob, are key next steps. The attached master plan prepared by Fischer and their consultant
Kimley-Horn is being presented to the Planning Commission at a special informal meeting on
March 30. The intensity of development, value created and resulting jobs will be the basis for
evaluating the use of tax increment.
At the March 23 EDA meeting, staff and the EDA Financial Consultant, Tammy Omdal from
Northland, will review the points of agreement and ongoing discussion with the developer,
Rockport LLC. The process for establishment of a TIF District will also be further discussed as
a request to proceed with the first phase of development is anticipated this summer. The
proposed District would need to be established by the time development begins.
amu,--