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HomeMy WebLinkAbout09-24-20 EDA MinutesECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota September 24, 2020 Minutes of the Meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held September 24, 2020, at 6:00 p.m., at Apple Valley Municipal Center. PRESENT: President Clint Hooppaw, Commissioners John Bergman, Tom Goodwin, Ruth Grendahl, Mary Hamann-Roland, Ken Johnson, and Tom Melander. ABSENT: NONE City staff members attending virtual meeting: Executive Director Tom Lawell, Community Development Director Bruce Nordquist, Finance Director Ron Hedberg, Planner/Economic Development Specialist Alex Sharpe, and City Attorney Mike Doughtry. Meeting was called to order at 6:00 p.m. by President Hooppaw. APPROVAL OF AGENDA MOTION: by Hamann-Roland, seconded by Grendahl, approving the agenda. Ayes - 7 - Nays - 0. CONSENT AGENDA - NONE - REGULAR AGENDA A. Discuss Resolution Approving Preliminary 2020/2021 EDA Budget 1. Bill Gray, Uponor CEO, on Greater MSP Partnership 2. Review and Discussion on Greater MSP Partnership Bruce Nordquist introduced Uponor CEO Bill Gray, and a leader in Greater MSP. Mr. Gray requested the EDA to continue to support the Greater MSP Partnership as part of the EDA budget. He provided opening remarks. Commissioner Grendahl comments that with Gray’s appearance (in front of the EDA), she will (recommend) support for the Greater MSP. Commissioner Bergman commends Mr. Gray on his (Uponor) organization that is recognized throughout the world and asks, how he as an international organizer would convince a smaller business to come to Minnesota, and to Apple Valley to open their business. Mr. Gray offered a brief history of how Uponor came to Apple Valley, including a look at the Nordic Initiative. When it was time to look for “the next Uponor,” it was the Greater MSP that was the “handshake” between the parent company and Minnesota (through tradeshows in Helsinki, Oslo, and Copenhagen), providing Apple Valley as its next viable location. Economic Development Authority City of Apple Valley Dakota County, Minnesota September 24, 2020 Page 2 Commissioner Hamann-Roland recognized Mr. Gray and Uponor as the leverage between the Nordic countries and the City of Apple Valley. She also commented that Uponor, as a lean manufacturer, ensures return on investment is always key to the decision making. Mr. Gray considers the long-term relationship and the visibility of the City in mind, when investing. Discussion of those cities in Dakota County that are members of the Greater MSP, includes Apple Valley, Rosemount and Eagan. Lakeville and Burnsville have withdrawn support. Mr. Gray informed the Commissioners that cities will come and go, depending on their particular situations, political climate, budget, etc. It would be a matter of how the cities choose to work with their economic development. It is his opinion that those that choose not to join may have a weaker economic development. Nordquist points out that Apple Valley has 400 acres, under one ownership, only 15 minutes from MSP, that can (be developed to) provide rapid delivery of manufacturing, medical devices, etc. This is what is being discussed with Greater MSP. Commissioner Bergman wanted to know if the 400 acres slated to be developed for manufacturing and such is a reason for membership in Greater MSP, when other cities with more available land and transportation hubs are not seeking membership with Greater MSP. How does Apple Valley compete? Commission Hamann-Roland responds that AV is the only city with 400 contiguous acres with only one owner. Something really great should happen there. Staff response – staff is working with 70 others within the Twin Cities that recognize the uniqueness of the 400 acres, including Medical Alley in Plymouth, which is looking to expand and is considering Apple Valley. Hamann-Roland cites “just in time” and the need for a strategic location. MOTION: by Hamann-Roland, seconded by Grendahl, to approve 2021 membership of Greater MSP. Ayes - 7 - Nays - 0. B. Approve 2020 / 2021 Budget 1. Adopt Resolution Approving 2020 EDA Budget 2. Adopt Resolution Approving 2021 EDA Budget Ron Hedberg presented the resolutions for the 2020 and 2021 EDA budgets. Both budgets are similar in that they include wages and benefits for the recording secretary (for the EDA), membership with Greater MSP, assistance with the mixed-business campus owned by Rockport, Economic Development Authority City of Apple Valley Dakota County, Minnesota September 24, 2020 Page 3 assisting with re-aligning and positioning properties County 42 and Cedar, and participation in Open to Business with the County CDA. MOTION: by Hamann-Roland, seconded by Grendahl, to approve preliminary 2020 and 2021 EDA budgets. Ayes - 7 - Nays - 0. C. Small Business Grant Program Update Bruce Nordquist presented. Of the 36 Applications Received:  75% of businesses had 20% or greater loss of revenue  Small business target was achieved o 45% of businesses had 2 – 5 employees o 30% of businesses had 6 – 15 employees o 22% were single-employee businesses o 1 applicant had 16 – 25 employees  About ½ of the businesses are addressing incomplete information (this does not mean they have been disqualified)  Business expenditures are Complete, Partially Complete, or Still to Complete City Council AV Grant Feedback (as of September 10th)  What is the grant amount? Could it be more?  Addressing income cap for priority sections (i.e., hospitality and entertainment sector)?  Does the EDA want to increase the FTE?  Will there be further discussion about: Fairview, Allina, Health Partners, Open Door, 360, ALF Ambulance, and Chamber? This doesn’t mean that it is CARES dollars to be used, but whatever can be used to help the organizations should be identified?  Does EDA want to modify or add to eligible expenses? Presently: capital improvement, signage, digital improvements, PPE, and advertising expenses during COVID period?  Other things to talk about? Feedback from EDA Workgroup (on 9/21/2020) – President Hooppaw, Commissioner Grendahl, and Commissioner Bergman EDA Motions related to Grant Program changes:  Waive the income requirement for the entertainment/hospitality sector  Increase the grant amount to $20,000 for the entertainment/hospitality sector and all present applicants. Having talked to 36 applicants, it was identified that there are greater needs.  Use same eligible expenses and FTE Economic Development Authority City of Apple Valley Dakota County, Minnesota September 24, 2020 Page 4 EDA Motions that make recommendations to the City Council:  Request the City Council to consider a $500,000 grant cap, adding $100,000.  Transfer $10,000 from CVB (Convention & Visitors’ Bureau) to Chamber in response to COVID Open for discussion Commissioner Goodwin – wanted to know if Public Safety Personal Service funds could/should be used for part of this grant. Commissioner Grendahl – would like to know where the added $100,000 is coming from. Tom Lawell responds – due to the back and forth by the Federal Government as to how (CARES Act) money will be allocated, it will not be until the next informal City Council meeting that an amount for allocation of Public Safety funds will be known. He reiterates that the economic health of the City is very important and when (the pandemic) is over: businesses remain healthy, they continue to contribute to the tax base, and they continue to contribute to the workforce of our community. Discussion continues on where the added $100K will come from. Recommendation for the City Council to consider a $500,000 grant cap, adding $100,000 will be made at the October 8th CC meeting. Commissioner Grendahl is informed that the $275,000 requested is a “hard” amount. Staff is just waiting for clarification from the businesses. MOTION: by Hamann-Roland, seconded by Grendahl, to approve transfer of $10,000 from CVB to the AV Chamber of Commerce in response to COVID. Ayes - 7 - Nays - 0. MOTION: by Grendahl, seconded by Hamann-Roland, to waive the income requirement for the entertainment and hospitality sector, increase the grant amount to $20,000 for the entertainment and hospitality sector and all present applicants, and to use same eligible expenses and FTE. Ayes - 7 - Nays - 0. No ED Staff updates at this time ADJOURNMENT MOTION: by Grendahl, seconded by Goodwin, to adjourn. Ayes - 7 - Nays - 0. The meeting was adjourned at 6:44 p.m.