Business Improvement District

Gallup Business Improvement District Meeting December 17, 2020, 3 PM Minutes Call to order 3:07 PM Attendance – roll call: Present: A. Biava, A. Baca, M. Menapace, L. Bonaguidi, JM DeYoung. Excused absence: S. Gurley, M. Ustick. Absent: J. Rich. Motion to Approve Agenda: L. Bonaguidi; 2nd: M. Menapace. Roll Call: A. Biava-yes, A. Baca-yes, M. Menapace- yes, L. Bonaguidi-yes. Approved Motion to Approve Minutes from November 19, 2020 meeting: L. Bonaguidi; 2nd: A. Baca. Roll Call: A. Biava-yes, A. Baca-yes, M. Menapace- yes, L. Bonaguidi-yes. Approved Motion to Approve Monthly Financial Report: M. Menapace; 2nd: L. Bonaguidi. Roll Call: A. Biava-yes, A. Baca-yes, M. Menapace- yes, L. Bonaguidi-yes. Approved Voting items: MOU between: Gallup BID and “Regional Economic Development Partners” – Greater Gallup Economic Development Corporation Northwest New Mexico Council of Governments City of Farmington 4 Corners Economic Development Cibola Communities Economic Development to form an alliance to work together and to work with National Development Council to improve the rapidly declining economy in Northwest New Mexico. Please note: MOU, and Agreement with NDC, is attached to this Agenda Motion: A. Baca; 2nd: L. Bonaguidi. Roll Call: A. Biava-yes, A. Baca-yes, M. Menapace- yes, Bonaguidi. Approved Request for Motion to make a request of City of Gallup to reduce the amount charged by City of Gallup to manage the billing and receipt of funds from property owner BID assessment fees. Died for lack of a motion. Discussion: Alley between Aztec and Coal, 2nd and 1st Improvement project update – CB Strain: The electrical work is almost complete, work on the other utilities has been completed. The next step will be the work on the drainage and the surface pavers, which will be done in the spring when it will be warmer. Coal Avenue construction update - CB Strain: the sidewalks on both sides of Coal between 3rd and 2nd have been completed. All of the culverts for drainage have been installed. Right now it is too cold to lay the concrete in the roadway. A change order to the project has been made in order to add the intersection at Coal and 2nd Street to the current phase one of construction. That was originally planned to be done during phase 2 of the project. City has obtained approval from NM Highway Department to perform the work during phase one. Hence, it will not have to go back to the State office and get the approval again. An additional change order was created to complete the work to be performed in the Walkway south of Coal. The phase one project will likely be completed in June. Gallup Retail Study Report and GGEDC recommendations. Please note: PDF of report is attached to this agenda Downtown safety and security. Gallup PD and City of Gallup have created a downtown substation located at the Walkway near Aztec. Public meeting via zoom on December 14th, to discuss downtown safety Red Rock - BID incident statistics for 2020 Railroad crossing safety improvement approved by Gallup City Council. Gallup McKinley County Day brochure – legislative requests Other discussion Reports November 18,19,20 – IEDC/NDC course – Economic Development Credit Analysis November 20 – GEDA meeting November 24 – phone meeting with Evan Williams, NWNMCOG to discuss the terms and conditions of the Agreement between our Regional Economic Development Partners and National Development Council. November 24 – Discussion with David Buchholtz, Rodey Law, about the terms and conditions in the MOU between Regional Economic Development Partners. November 30 – telephone meeting with John Wheeler, Gallup Electric Department November 30 – telephone meeting with Councilor Linda Garcia December 1 – separate telephone meetings to discuss the Regional Economic Development Partners MOU with: 1. Patty Lundstrom (GGEDC); 2. Anna Biava (Gallup BID); 3. Jon Clark (NM EDD). December 2 – phone meeting with David Buchholtz, Rodey Law, to review modifications in latest version of REDP MOU December 2 – zoom meeting with Regional Economic Development Partners – Patty Lundstrom (GGEDC), Bruce Armstrong (GGEDC), Warren Unsicker (City of Farmington), Eileen Yarborough (Cibola Communities ED), Evan Williams (NWNMCOG) to discuss changes to the language in the MOU between us, the members of the REDP alliance. December 2 – telephone meeting with Mayor Bonaguidi – provided update on REDP MOU and Agreement with NDC. December 4 - telephone meeting with Lorraine Ruggels, NM EDD, to discuss the formation of REDP and the ask for NM EDD support December 7 – telephone meeting with GLD Partners to discuss the NM/Gallup Mobility project December 8 – annual report to Gallup City Council presented by Anna Biava – PDF attached to this report December 9 – Zoom meeting with NM EDD: Jon Clark, Mark Roper, Elaine Ruggels and Jacqueline Martinez, NM LFC analyst December 10 – Zoom meeting: ‘Downtown Committee” (committee for downtown improvement, not the safety committee) December 11 – Zoom meeting – Downtown Safety Committee December 11 – GEDA meeting Date of next BID meeting – January 21, 2021, 3 PM James Rich spoke – he said that he joined the meeting late. He asked that the motion to ask City of Gallup to reduce the amount charged to the BID as an administrative fee, which failed for lack of a motion, be placed on the agenda for the January 21, 2021 meeting so that he can make that motion. Motion to Adjourn: L. Bonaguidi, 2nd: M. Menapace. Roll Call: A. Biava-yes, A. Baca-yes, M. Menapace- yes, L. Bonaguidi. Approved Attachments follow: BID_REDP_v.8 _MOU Gallup Retail Market Study, Dec 2020 BID Annual Report 2020  Gallup BID, Inc. Greater Gallup Economic Development Corporation Farmington Economic Development 4 Corners Economic Development Cibola Communities Economic Development Foundation, Inc. Northwest New Mexico Council Of Governments MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (this “MOU”) is made the _____ day of _____, 2020 AMONG: Gallup BID, Inc. Greater Gallup Economic Development Corporation Farmington Economic Development 4 Corners Economic Development Cibola Communities Economic Development Foundation, Inc. Northwest New Mexico Council Of Governments (Each a “Member” and collectively the “Members”). Through this MOU, the Members desire to form an alliance, Regional Economic Development Partners, to advance the Northwest New Mexico Regional Economic Development Effort. Binding obligations will only arise upon the Members’ complete execution and delivery of a definitive agreement in a form acceptable to all Members, which agreement will contain additional terms and conditions not described herein. If an agreement is fully executed, that agreement will supersede all prior discussions and will constitute the entire agreement of the Members. Except as otherwise provided herein, each Member will pay its respective expenses, including attorneys’ fees, incurred in connection with all negotiations associated with said Member. Background: Each Member performs economic development work for its respective community. Each Member agrees that Regional Economic Development Partners is an alliance to act in furtherance of the ongoing regional economic development effort (the “Regional Economic Development Effort”). This effort includes engagement with National Development Council (NDC), which will provide to REDP services listed in Summary of Services section below and detailed within the NDC Scope of Services Proposal. That Proposal is included following the end of this REDP MOU. The Members desire to formalize their agreement and understanding in relation to the Regional Economic Development Effort Alliance and have agreed to enter into this MOU in this regard. Draft Agreement 1 The Members agree that they will cooperate with each other and at all times act in good faith and with the joint objective of successfully and expeditiously carrying out the arrangements and agreements contemplated in this MOU. The Members desire that REDP, on behalf of, and for the benefit of, the Members, enter into a joint contract with National Development Council (“NDC”) to secure professional services from NDC to develop and assist in the implementation of Regional Economic Development Effort through community and economic development programs, including creation of a Regional Investment Fund (“Regional Economic Grow Fund”) The Members understand and agree that NDC focuses its work in two areas: (1) capacity building and (2) finance and development. In both areas, NDC provides resources to the implementation side of development projects through technical assistance or direct capital. REDP will make a scope of services contract with NDC for the services to be provided in the first year and the fee to be charged for the services. Term The term of this MOU shall be one year commencing on___tbd__ and expiring on _____tbd____, unless otherwise agreed or extended by the Members in writing. The term shall be reviewed by the Members not less than three (3) months prior to the expiration of the term subject to the term being reviewed prior to this period. Host Organization Gallup BID, Inc. will serve as the Host Organization. On behalf of the other Members, the Host Organization agrees: Administration The Host Organization will administer REDP in accordance with this MOU. Finances The Host Organization will enter into an agreement with NDC substantially in the form attached hereto as Exhibit A (the “Agreement”), whereby NDC will provide professional services to the Members to develop and assist in the implementation of the Members’ community and economic development programs. The Host Organization agrees to administer, and account to the other Members, the fees associated with the Agreement and to provide to the other Members on a monthly basis an invoice specifying the amount of the fees associated with the Draft Agreement 2  Agreement that each of the other Members are responsible for paying during that period (the “NDC Fee”). Each Member agrees to pay all such invoices received from the Host Organization within ten (10) business days of receipt. The Members have discussed and agreed that the Host Organization will be the entity receiving invoices from NDC for costs associated with the Agreement. The annual NDC fee for the first year will be specified in the Agreement. This fee for one year of services will be divided into twelve (12) equal monthly payments and invoiced to REDP on monthly basis. The Host Organization will establish a bank account solely dedicated to REDP (the “REDP Account”). The Host Organization will receive and deposit into the REDP Account the NDC Fee payments received from each Member and will pay the invoices from NDC for NDC’s monthly fee. Operational Guidelines All Members agree that only the general operational timelines for the Regional Economic Development Effort will be coordinated with the group members and created in consultation with the NDC expert trainer. The Members agree that information about the specifics of any individual project with which a Member collaborates with NDC will not be shared within the group unless that Member desires to do so. All of the Members will have equal access to all of the training and technical and financial assistance that is provided by NDC. The Members will meet, in person or virtually, on a monthly basis. Additional meetings may be scheduled as needed. Meetings, as a group or by individual Members, with NDC TA/trainer/consultant will also take place, with dates and times TBD. Summary of training, technical and financial assistance to be provided As stated in the attached “Agreement By And Between Gallup Business Improvement District and National Development Council Regarding Community And Economic Development” - Evaluate existing available small business lending resources. Evaluate the potential establishment of a small business loan fund – the Regional Economic Grow Fund. This is a leveraged fund whereby NDC leverages the Client’s initial capitalization into the fund. Draft Agreement 3 NDC will provide technical support/financial analysis to the client with respect to its housing development program proposals. NDC will provide technical assistance to the Client utilizing its expertise in economic and community development activities. Conduct a four-day class, Introduction to Community and Economic Development Finance, for select Client staff as well as other invited economic and community development officials throughout the designated service area. Establish the Client’s participation with “NDC New Markets,” a designated Community Development Entity (CDE), through which New Markets Tax Credits (NMTCs) will flow to investors of qualified community development projects that benefit low and moderate-income people. Will provide the Client, upon its request, with other related community and economic development services and products. These services may include establishing Client/NDC joint venture program for industrial and commercial development projects through NDC’s Community Development Group, Inc. (CDG). Upon the request of the Client, and in furtherance of NDC Housing and Economic Development Corporation’s (HEDC) charitable public purpose, NDC agrees to use the not-for-profit development services of its affiliate to undertake sponsored development projects. Acknowledgement The Members acknowledge and agree that each of the Members in its own right may engage the staff of one or multiple other Members for services. However, any agreed upon costs incurred as a result of that Member’s request for services shall be borne solely by the requesting Member. Executed as a memorandum of understanding: Draft Agreement 4 Executed as a Memorandum of Understanding Forming the Regional Economic Development Partners AGREEMENT BY AND BETWEEN Gallup Business Improvement District, Inc. December 17, 2020 Francis Bee, Executive Director Date Draft Agreement 5  EXHIBIT A THE AGREEMENT Draft Agreement 6  AGREEMENT BY AND BETWEEN GALLUP BUSINESS IMPROVEMENT DISTRICT AND NATIONAL DEVELOPMENT COUNCIL REGARDING COMMUNITY AND ECONOMIC DEVELOPMENT ADVISEMENT This Agreement is made and entered into this ____day of _________________ 2020, by and between the Gallup Business Improvement District , An non-profit corporation whose address is 201 East US Route 66 , Gallup NM 8730(the “Client") and NATIONAL DEVELOPMENT COUNCIL (“NDC” or the “Contractor”), a New York non-profit corporation, which is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, whose address is One Battery Park Plaza, 24 Whitehall St, New York, NY 10004. WITNESSETH THAT: WHEREAS, NDC is the oldest national economic development non-profit with a focus on creating housing, jobs, and communities for our clients. From 1969 to the present, our work has been guided by our overarching mission to deliver capital where it is needed most by assisting our clients to leverage available resources for the greatest possible impact. WHEREAS, NDC works with federal, state and local government, local development corporations and non-profit economic development organizations to “lessen the burdens of government” and protect the interest of our municipal partners. WHEREAS, NDC is uniquely suited to provide consulting services because of extensive experience in the field, professional capacity and depth, and a deep knowledge of federal and state resources. WHEREAS, NDC undertakes our work through two areas of activity focus: capacity building and financing and development In both areas, we bring resources to the implementation side of development projects through either technical assistance or direct capital. WHEREAS, the Gallup Business Improvement District (“Client”) desires to receive professional services from NDC to develop and assist in the implementation of the Client’s community and economic development programs; WHEREAS, the Gallup Business Improvement District is the lead entity of a to be formed non- profit regional economic development organization that includes representation from the Gallup Business Improvement District, Greater Gallup Economic Development Corporation, Cibola’s Communities Economic Development, Farmington Economic Development, 4 Corners Economic Development, Northwest New Mexico Council of Governments. WHEREAS, the Gallup Business Improvement District will provide NDC a memorandum of understanding (MOU) sufficient to NDC signed by all the entities in the to-be-formed non- profit regional economic development alliance, further the (MOU) will identify the 12 month financial obligation each entity has to the to-be-formed non-profit regional economic Draft Agreement 7 development organization, WHEREAS, NDC is willing to provide, on such terms and conditions as are hereinafter proposed, technical assistance to the Client utilizing its expertise in economic and community development activities and housing. NOW THEREFORE, in consideration of the above-mentioned premises and of the mutual covenants contained herein, the parties hereto agree as follows: I. SCOPE OF SERVICES NDC agrees to perform the services detailed in Exhibit A, attached hereto and incorporated herein by this reference, as requested by the Client and to provide such services, as it deems necessary to accomplish the goals requested, in a timely manner. Exhibit A attached hereto fully describes the services to be offered to the Client by NDC. In performing the requested services, NDC shall consult with officers and employees of the Client and shall meet, as appropriate, with such representatives or other entities when necessary, including, without limitation, State and Federal officials and other local organizations. II. DURATION, TERMINATION NDC agrees to commence work for the Client effective TBD , 2020 and shall continue providing technical assistance for twelve (12) months. This agreement may be extended by mutual agreement for a period of not greater than twelve (12) months. Either party may, at any time, terminate this Agreement with or without cause by sending written notice to the other party, in which event this Agreement shall be terminated effective 30 days after receipt of such notice. III. COMPENSATION NDC proposed the Client shall compensate NDC for performance of services received in the total amount of seventy-eight thousand U.S. dollars ($78,000.00), payable in monthly installments of six thousand five hundred U.S. dollars ($6,500). The base fee amount includes all of NDC’s time, supplies, postage, telephone, and other similar expenses. The base fee excludes travel expenses for NDC personnel to and from Client. Client shall be billed for these expenses separately following in person visits to Client by NDC personnel. As an independent contractor, NDC is responsible for all taxes and other benefits of the employees of NDC and nothing contained herein shall be interpreted as creating a relationship of servant, employee, partnership, or agency between the Client and the NDC. IV. MISCELLANEOUS PROVISIONS 4.1 Confidentiality of Reports. NDC shall keep confidential all reports, information and data given to, prepared or assembled by NDC pursuant to NDC’s performance hereunder and Client designates in writing as confidential. Such information shall not Draft Agreement 8  be made available to any person, firm, corporation or entity without first obtaining the prior written consent of Client unless otherwise mandated by applicable law. 4.2 Equal Opportunity and Anti-Discrimination. NDC shall comply with all provisions of Title VI of the Civil Rights Act of 1964 and of the rules, regulations and relevant order of the New Mexico Secretary of Labor and City of Gallup Code of Ordinances regarding discrimination. In the event a party is determined by the final order of an appropriate agency or court to be in violation of any non-discrimination provision of federal, state, or local law, this Agreement may be cancelled, terminated or suspended in whole or in part by the Client, and that party may be declared ineligible for further Client contracts. NDC shall not discriminate against any person in employment or public accommodation because of race, religion, color, creed, gender identity, sex, national origin, sexual orientation, mental or physical disability, marital status or age. "Employment" shall include but not be limited to hiring, accepting, registering, classifying, promoting, or referring to employment. "Public accommodation" shall include but not be limited to providing goods, services, facilities, privileges and advantages to the public. 4.3 Conflicts of Interest. No board member, officer or employee of Client or its designees or agents, and no other public official who exercises any functions or responsibilities with respect to any requested technical assistance, shall be permitted to financially benefit from this Agreement or have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with this Agreement. 4.4 Notices. All notices shall be sent by certified mail, hand-delivery or overnight mail and in all events with a written acknowledgment of receipt to the address set forth at the beginning of this Agreement. 4.5 Responsibility for Claims-Mutual Indemnification. NDC agrees to indemnify and save harmless Client, their agents, officials, and employees from any liability, damage, expense, cause of action, suit, claim, judgment or expenses (including attorneys’ fees) arising from injury to person, including death or personal property or otherwise, caused by or resulting from the activities in furtherance of the work described herein. Client agrees that such indemnity shall not apply to any actions, claims or damages arising as a result of Client’s bad faith, willful misconduct or gross negligence. 4.6 Release of News Information. Except as required by New Mexico OMA, no news release, including photographs, public announcements or confirmation of same, or any part of the subject matter of this Agreement or any phase of any program hereunder shall be made without prior written approval of the Client. Draft Agreement 9 4.7 Compliance with Laws. NDC agrees to comply with all applicable federal, state and local laws in the conduct of the work hereunder. This Agreement shall be construed, interpreted and the rights of the parties determined, in accordance with the laws of the State of New Mexico. 4.8 Assignment. Neither this Agreement nor any rights, duties or obligations described herein may be assigned by either party without the prior expressed written consent of the other party. 4.9 Severability. A determination that any part of this Agreement is invalid shall not invalidate or impair the force of the remainder of this Agreement. 4.10 Acknowledgement. The Client expressly acknowledges that all opinions and advice (written or oral) given by NDC to the Client in connection with NDC’s engagement are intended solely for the benefit and use of the Client considering the financing and the Client agrees that no such opinion or advice shall be used for any other purpose without the prior consent of NDC, except as required by New Mexico statues. 4.11 Disclaimer. The Client is a sophisticated business enterprise and has retained NDC for the purposes set forth in this Agreement and the parties acknowledge and agree that their respective rights and obligations are contractual in nature. Each party disclaims an intention to impose fiduciary agency rights or obligations on the other by virtue of the engagement hereunder. 4.12 Entire Agreement. This Agreement contains the final agreement between the parties regarding the matters covered and supersedes any and all other agreement, either oral in writing, regarding the matters contained herein. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first written above. Gallup BID NATIONAL DEVELOPMENT COUNCIL: By: _____________________________ By: ______________________________________ Daniel Marsh, President Name: __________________________ Date:_____________________________________ Its:_______________________________ Draft Agreement 10  EXHIBIT A NDC TECHNICAL ASSISTANCE SCOPE OF SERVICES The Scope of Services describes the assistance available during the specified contract period. The Client and NDC, by mutual agreement, may revise this Scope of Services from time to time. The assistance within this Scope of Services includes: First 12-Month Contract Period: A. NDC will review the Client’s existing goals, objectives, policies and procedures, and activities for economic and community development programming B. NDC will review the Client’s future goals, objectives, policies and procedures, and activities for economic and community development programming C. Assist the Client in evaluating staff capacity and determine training needs to effectively deliver existing and future goals, objectives, policies and procedures, and activities for economic and business development. D. At the Client’s request, review and evaluate the use of small business loan programs. This assistance provided by NDC may include, but not be limited to: Draft Agreement 11  • Evaluating existing available small business lending resources. • Evaluate the potential establishment of a small business loan fund – the Regional Economic Grow Fund (see I under Other potential NDC services or benefits of affiliation below). E. NDC will provide technical support or financial analysis to the Client with respect to its economic and housing development program proposals. F. NDC will provide technical assistance and advocacy in the Client’s efforts to seek funding or leverage existing resources through governmental programs including, but not limited to: Federal Resources • Community Development Block Grant (CDBG) program • HOME Investment Partnership program • HUD Section 108 loans, including Brownfields Economic Development Initiative (BEDI) grants • U.S. Department of Commerce Economic Development Administration (EDA) • U.S. Environmental Protection Agency (EPA) Brownfields Program, including Targeted Assessments, Supplemental Pilot Program, and Brownfields Revolving Loan Fund • U.S. Small Business Administration 7(a), 504, and Microenterprise programs • New Markets Tax Credit Program • Federal Home Loan Bank Community Investment Program • Rehabilitation Tax Credits (Historic Tax Credits) • Low Income Housing Tax Credit (LIHTC) With a minimum twelve (12) month contract: G. At the Client’s election, provide two (2) scholarships to be used by Client staff for attendance in NDC’s “Economic Development Finance Professional Certification” training program or provide “in-house” staff training to Client staff. H. Conduct four-day class, Introduction to Community and Economic Development Finance, agenda attached, for select Client staff as well as other invited economic and community development officials throughout designated service area. Other potential NDC services or benefits of affiliation I. Establishment of a Regional Economic Grow Fund small-business lending program via NDC’s Grow America Fund. NDC’s Grow America Fund (GAF) is a national small business (SBA 7a) lending program designed to catalyze job creation in underserved communities. With Preferred Lender status granted by the Small Business Administration, we have provided loans to more than 710 small businesses nationwide over the past 20 years. a. This is a leveraged fund whereby NDC leverages the Client’s initial capitalization into the fund. This investment will be used solely for funding eligible SBA - guaranteed loans within the targeted areas identified by the Client within an agreed upon time frame. Draft Agreement 12  b. The Client’s initial capitalization, for example, $1,000,000 funds the unguaranteed portion of each Regional Economic Grow Fund borrower. Note: i. The potential for loss of capitalization exists ii. GAF prefers the capitalization deployed in loans is a grant to GAF c. GAF funds the “guaranteed portion” of each outstanding loan funded under the program. The parties acknowledge that the intent of the Client investment is to realize total loans funded of $1,000,000 (approximately 3 times the amount of the initial Client investment). d. GAF and Client will jointly create an Economic Development Financing system that recognizes the purpose of bringing the Regional Economic Grow Fund to the community is to provide sound financing to healthy, growing small businesses, which is critical to the creation of permanent jobs and retention of businesses within the community. As such, fully trained professional staff (referred to as Economic Development Professionals (EDP – see e. below)) provided by the Client are essential to imbue the program with credibility in the local community and to complete the team necessary for the program’s success. e. EDP’s will perform the following services: i. Participate in developing a marketing program and establishing periodic goals ii. Assist in establishing a database of potential referral sources for the Regional Economic Grow Fund program iii. Assist in preparation of marketing materials iv. Disseminate the application package provided by GAF to potential borrowers. v. Gather the application information and perform a review for package completeness and preliminary qualification of potential borrowers vi. Assist GAF loan officer in scheduling meetings and site visits with potential borrowers’ places of business. vii. Provide support to the GAF closing and servicing teams when needed and requested. f. Staff provided by GAF will perform the following services: i. Assist in marketing the Regional Economic Grow Fund program ii. Assist in originating and packaging loans iii. Underwrite all loans iv. Obtain GAF and SBA approvals v. Close, service, and collect loans vi. Perform appropriate periodic reviews of each loan vii. Provide reporting as required by the Client in a form acceptable to the Client. (The parties will agree that acceptable form and format for this documentation is the complete GAF quarterly portfolio status report to the Client for each Regional Economic Grow Fund borrower. Draft Agreement 13  J. Establish the Client’s participation with “NDC New Markets,” a designated Community Development Entity (CDE), through which New Markets Tax Credits (NMTCs) will flow to investors of qualified community development projects that benefit low and moderate- income people. Such participation in the CDE will enable Client the opportunity to access, through NDC’s CDE or another CDE, low-cost long-term debt and equity sources for qualified community development projects. K. NDC, alone and/or via authorized sub-contractors, will provide the Client, upon its request, with other related community and economic development services and products. These services may include establishing Client/NDC joint venture program for industrial and commercial development projects through NDC’s Community Development Group, Inc. (CDG). L. Establish Client’s participation in NDC’s “Corporate Equity Fund,” a syndicated investment pool that provides equity to eligible projects with housing and historic tax credits. M. At the request of the Client, and in furtherance of NDC Housing and Economic Development Corporation’s (HEDC) charitable public purpose, NDC agrees to use the not-for-profit development services of its affiliate to undertake sponsored development projects. Public Facility projects undertaken by HEDC will require the active participation of the Client and will only be undertaken if HEDC’s Board of Directors determines that the development of the project is financially feasible, “lessens the burden of government”, and meets HEDC’s “charitable public purpose.” HEDC’s activities will be undertaken as a separate program activity with fees for services rendered determined on a case-by-case basis. Development fees to the greatest extent possible will be included in the project’s capital budget and financed as part of the project. Eligible project development fees shall include, but not be limited to, development risk fees, legal and accounting fees, asset management fees, and project management fees. Draft Agreement 14  2020 GALLUP RETAIL MARKET STUDY Greater Gallup Economic Development Corporation Final Report to the City of Gallup December 10, 2020  SPECIAL THANKS: PARTNERS SPONSORS  Greater Gallup Economic  Pinnacle Bank Development Corporation  NWNM Council of Governments  Hospitality Group, LLC  Gallup-McKinley Chamber of  New Mexico Gas Company Commerce Gallup BID FUNDING   gallupARTS City of Gallup, Tourism &  Marketing Department  New Mexico Finance Authority  Gallup Main Street / Arts &  New Mexico Economic Cultural District Development Department  Place Dynamics, LLC  Jeff Kiely, Consulting Services ANALYSIS BY PLACE DYNAMICS [PRE-COVID-19] 1. Size of Gallup Trade Area is Underestimated Gallup retail businesses  $611.9 M – Primary capture less than 1/3 of  $1.263 B – Secondary the market available to 2. Area Income is Underestimated them from the primary  $72.9 Million = Unreported income & secondary trade  $74.7 Million = Health / Housing Support areas, and visitors. 3. Potential Retail Market = $2.03 Billion per Year  Amount currently captured = $623.9 Million How Can Gallup Capture the $1.5 Billion It Is Missing Out on in Retail Revenues? RECOMMENDED RETAIL TARGETS Once the economy gets back on its feet, many innovative local businesses & entrepreneurs can take advantage of this list. PLACE DYNAMICS’ RECOMMENDATIONS PLACE DYNAMICS’ RECOMMENDATIONS GGEDC RECOMMENDATIONS CREATING A RECOVERY AGENDA FOR THE CITY OF GALLUP 1. FOCUS AGENCY FUNDING ON RECOVERY . The City needs to set the agenda and direction for recovery and retention of retail businesses and other economic stakeholders in the community. It should:  RE-OPEN: Create a targeted program to re-open local businesses & services. The program could include: • A range of strategies to support local entrepreneurs • Adjusting certain business regulations and processes • Clear protocols to ensure the health and safety of employees, customers and general public • Specific measures to facilitate retention and recovery of existing businesses, including helping them to innovate to meet new market opportunities and access resources.  SUPPORT BUSINESSES: Help business owners weather and survive pandemic-related economic shutdowns and slowdowns. • Plan & invest in a Downtown “Enterprise Center” that can provide a full range of services to the business community.  RE-SCOPE CONTRACTS: Re-evaluate all contracts with external agencies and service providers, mandating that they adjust their scopes of work to be responsive to COVID-related impacts and that they re-tool, communicate, and deliver services that support the City’s Recovery Agenda.  TEST CASE: Identify a “test case” for retention and recovery of an existing Gallup asset, such as the Gallup InterTribal Indian Ceremonial, and focus resources into it. GGEDC RECOMMENDATIONS CREATING A RECOVERY AGENDA FOR THE CITY OF GALLUP 2. LEAD THE RECOVERY AGENDA  MAYOR’S CONFERENCE: Mayor and Council should lead the charge by convening a “Mayor’s Conference on Recovery” to: • Get all parties on board with the Recovery Agenda • Identify how they will contribute to the Agenda • Gain consensus on a Recovery Plan that can get all parties pulling together toward common recovery objectives. • Mandate attendance by key City staff, and encourage high attendance by business owners.  INVEST IN RECOVERY: Use the City’s purse strings and its mandate to promote the health and welfare of the public to lead and coordinate the Recovery initiative.  THE RECOVERY AGENDA: Organize the Recovery Agenda utilizing City staff, partners, and consultants as needed. • Invest in a full-time Recovery Program Coordinator to manage communications with all parties, keep agencies’ feet to the fire, and facilitate the movement and coordination of resources. GGEDC RECOMMENDATIONS CREATING A RECOVERY AGENDA FOR THE CITY OF GALLUP 3. FOLLOW THROUGH ON RETAIL DEVELOPMENT STRATEGIES ESTABLISH FRAMEWORK CONTINUE RETAIL DEVELOPMENT INITIATIVE  ACTIVATE VOLUNTEERS: Implement Work Groups as  ORGANIZE: Establish Lead proposed in Economic Roundtable on Retail Attraction. Organization with oversight authority.  STAFF UP: Find & Hire a Retail Program Coordinator  TAP THE EXPERTS: Identify and task subject experts & technical providers to implement the strategy.  ENGAGE BUSINESSES: Involve the business community on advisory committees, such as for retail & restaurant businesses. QUESTIONS? Bruce Armstrong Economic Development Manager GGEDC bruce@gallupedc.com (505) 722-2980 ANNUAL REPORT An Important Partnership City of Gallup & Gallup Business Improvement District Presented to City of Gallup Council Anna Biava, Presidnet December 17, 2020 A Message To The City of Gallup Council and Mayor: One year ago, my husband came into the kitchen and said, “I think this virus in China is going to be a big deal.” I laughed out loud. By February, I realized that was the understatement of the year. Around that time, it became obvious. If Downtown Gallup was going to stay afloat, the Business Improvement District (BID) needed to seek out and find ways to jump start a revival of Downtown once this thing is over. As council knows, the BID budget took a financial hit, just like everyone else. But, the BID board knows that we cannot “just sit back and see how this thing turns out.” Our first task was to consider our priorities in light of the current crises. It was obvious that although the events we sponsor would be canceled and tourist season lost, the need for security patrols downtown was pressing. It is of utmost importance to support the existing property and business owners in this way. But beyond that, came the realization that the limitations we are currently experiencing also present new opportunities. Our solution: National Development Council (NDC). In a nutshell, NDC consults with organizations all over the United States on how to apply for Federal funding. NDC expertly helps to navigate the daunting application process for USDA funds and other monies for building improvements and economic Devlopment that are otherwise far beyond the scope of what the BID would be able to accomplish on its own. Representative Lundstrom also realized the benefit NDC’s expertise presents on a larger scale. Over the past several months BID manager, Francis Bee, has successfully coordinated regional participation by GGEDC, Northwest New Mexico Council of Governments, City of Farmington, 4 Corners Economic Development and Cibola Communities Economic Development Corporation to cooperate in an expanded version of this effort along side Gallup BID. This cooperative agreement, allows the services and the expenses to be shared by all 6 entities. Downtown Property Owners are getting tremendous bang for their buck. Each participating member community will pay only $388 per month to be exact. At some point, life will go on. Through the BID’s leadership and Representative Lundstrom’s support, Downtown Gallup’s foresight will mean economic opportunity for the all of North West NM when it does. Anna Biava, President Gallup Business Improvement District Message from Francis Bee, Executive Director Gallup Business Improvement District Economic Reactivation in the Era of Covid-19 Gallup, along with most New Mexico cities and towns, has closed down much of its economy in order to protect the local population from the health effects of the Covid-19 pandemic. It is possible to identify phases of the effects of Covid-19. First there is the “lock down” phases we have been living in; then there will be a “transition” from lock down to elements of normality; following the transition will be the “recovery” phase, when jobs, investments and normal levels of trade will come back; eventually, we will see some sort of “next normal”. What are the implications of this crisis? What weaknesses in the Gallup-McKinley economy have been revealed as a result of this crisis? Which things that are happening in our economy now will be cyclical? Which ones will be structural? Which ones will be transformational? Things will not just automatically pop back to normal after the health and economic crises have passed. What is done locally over the course of the next 12 to 18 months will matter greatly to the safety of Gallup, the public health of our workers, and to our economic rebound. Communities like Gallup that have protected their downtown commercial districts will have a decisive competitive advantage as we return to normalcy. Gallup BID is working with legal, financial and economic development experts to expand the scope of its existing programs in order to provide assistance to Gallup’s property and business owners. Investors and developers who were interested in economic development projects in Gallup prior to the Covid-19 crisis remain interested today. They see this period as a delay in their work, not a cancellation. These projects will bring millions of dollars of outside investment into Gallup. In time, Gallup will proper again, as it always has after crises. Gallup BID Programs Façade Grant West Coal Avenue & 2nd Street  Sign Grants 100 East Aztec 615 W. Hwy 66  Downtown Security Gallup BID hired private security firm to provide well-trained unarmed bicycle patrols for July & August 2020 Guards are in constant contact with City of Gallup Police, Community Service Patrols and other emergency service personnel. Over 900 interventions in downtown incidents per month during July & August 2020 Gallup BID is a member of Mayor’s Committee to Improve Public Safety & Security  Downtown Arts Crawl Over 2,500 visitors per event- paused during the Covid 19 epidemic  Programs Paused due to Covid-19 pandemic Sidewalk improvement program Vacant second floor program Expanded façade improvement program Code compliance support program  Collaboration & Support Gallup BID organizes and represents private sector support for public-private projects & fund seeking; also provides funds towards private sector “match” required by government or foundation grantors u Gallup BID provides ongoing support for Gallup Main Street Arts & Cultural District - $10,000 in 2020 u Regional Economic Development Partnership Gallup BID, GGEDC, NWNMCOG, City of Farmington, 4 Corners Economic Development and Cibola Communities Economic Development Corporation have created an alliance (via MOU) to pursue a regional economic development effort with the assistance of National Development Council. Gallup BID is lead entity and fiscal agent.  Downtown Parking Lot Improvement Gallup BID sponsored the repainting of the art elements, walls and the asphalt striping at 4th & Rt. 66 City parking lot. Gallup Parks & Recreation Director Vince Alonzo oversaw the work, executed by Gallup artist Prentiss Archuleta  Improvement Concept West Coal Avenue from 8th to 9th Gallup BID plans to improve the attractiveness of the west side of the BID District to increase public safety while also stimulating more commerce Installation of replica antique style street poles and overhead decorative lighting along West Coal between 8th and 9th will enhance the appearance of this area and create a user-friendly environment for potential patrons at the three restaurants located there. Installation of a traffic signal at 9th & W. Coal, or at 9th & Rt. 66 will also improve traffic and pedestrian safety conditions in this area. Gallup BID also plans to install a welcome to downtown Gallup monument on West Coal Avenue as the western entry to the downtown district.  Development Concepts 4th & Aztec 8th & Aztec E. Coal & Puerco  Economic Development Gallup BID, GGEDC, NWNMCOG, City of Farmington, 4 Corners Economic Development and Cibola Communities Economic Development Corporation have created an alliance to pursue a regional economic development effort with the assistance of National Development Council. Gallup BID is lead entity and fiscal agent. “Regional Economic Development Partners” alliance members will participate in and bring to their communities: Advanced training in economic and community development finance programs and community development Process improvement Improvement of existing buildings, especially in downtown districts Business attraction Low to Middle Income Housing, including participation with “NDC New Markets” for tax credit flow to investors of qualified community development projects that benefit LMI Potential to participate with NDC’s Community Development Group, Inc. to further industrial and commercial development projects Potential for our regional alliance to create a “Regional Economic Grow Fund”, leveraged up 3 to 1 with funds from NDC’s “Grow America Fund” – a small business lending program designed to catalyze job creation. NDC will provide technical assistance and advocacy in the Client’s efforts to seek funding or leverage existing resources through governmental programs including, but not limited to: Federal Resources • Community Development Block Grant (CDBG) program • HOME Investment Partnership program • HUD Section 108 loans, including Brownfields Economic Development Initiative (BEDI) grants • U.S. Department of Commerce Economic Development Administration (EDA) • U.S. Environmental Protection Agency (EPA) Brownfields Program, including Targeted Assessments, Supplemental Pilot Program, and Brownfields Revolving Loan Fund • U.S. Small Business Administration 7(a), 504, and Microenterprise programs • New Markets Tax Credit Program • Federal Home Loan Bank Community Investment Program • Rehabilitation Tax Credits (Historic Tax Credits) • Low Income Housing Tax Credit (LIHTC)  Financial Report See attached financial reports for: June 2020 report – end of FY 20 October 2020 report – reviewed during November 2020 regular monthly BID Board meeting