Economic Development Authority

AGENDA ECONOMIC DEVELOPMENT AUTHORITY JUNE 1, 2020 1. CALL TO ORDER 2. APPROVAL OF MINUTES A. May 4, 2020 Motion by seconded by to approve, table or deny approving the minutes of the May 4, 2020 Economic Development Authority Meeting. 3. COVID ELF A. COVID- 19 Emergency Loan Fund ( COVID ELF) Update 4. ADJOURNMENT Motion by seconded by to adjourn. Meeting adjourned at  EDA 2A AGENDA ITEM Maple Grove Economic Development Authority DRAFT Meeting Minutes May 4, 2020 DRAFT Delete this when final edits are complete) Call to Order Pursuant to call and notice thereof, an Economic Development Authority Meeting of the Maple Grove City Council was held at 7: 30 p. m. on May 4, 2020 at the Maple Grove Government Center/ Public Safety Facility, Hennepin County, Minnesota. Members present were President Mark Steffenson, Vice President Karen Jaeger, Secretary Heidi Nelson, Treasurer Judy Hanson, and Commissioners Phil Leith and Kristy Barnett. Absent was none. Present also were Joe Hogeboom, Community and Economic Peter Development Director; Vickerman, Planning Manager; Ken Ashfeld, Director of Public Works/ City Engineer; Economic Development Manager Brett Angell; and Justin Templin, City Attorney. President Steffenson called the meeting to order at 8: 55 p. m. Approval of Motion by Vice President Jaeger, seconded by Commissioner Barnett, to approve the April 20, 2020 April 20, 2020 Economic Development Authority meeting minutes. Upon Minutes call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. EDA Economic Development Manager Angell requested the EDA approve a TIF Development Agreement for ProMed. He Resolution No. explained this agreement included $ 577, 000 in TIF and has 19 been reviewed by the City Attorney. It was noted the proposed ProMed Tax TIF District would last nine years. ProMed was proposing to construct a 71, 000 sf medical technology facility that would Increment create 104 jobs. Staff commented further on the proposed Financing request and recommended approval of the agreement. Development Vice President Jaeger asked what would happen if ProMed DRAFT Maple Grove EDA Minutes May 4, 2020 Page 2 Agreement could not complete the building. Economic Development Manager Angell discussed the building date requirements noting an amendment would be required if specific requirements were not met by certain dates. He noted the TIF funds would not be triggered until the building was complete. Vice President Jaeger asked if this was a pay- as- you- go note. Economic Development Manager Angell reported this was the case. Motion by President Steffenson, seconded by Treasurer Hanson, to approve adopting Resolution No. 19 authorizing the execution of a development agreement between the City of Maple Grove, Economic Development Authority, and Rocky Mountains, LLC in regards to the tax increment financing for the approved project. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. COVID- 19 Economic Development Manager Angell requested the EDA Emergency approve the COVID- 19 Emergency Loan Fund. He explained Loan Fund this fund was being established after discussions with the EDA. He noted the city was proposing to provide up to $ 10, 000 forgivable loans with six month deferred payments with 0% interest and a max term of five years. He explained the Council approved a transfer of$ 250, 000 from the Revolving Loan Fund to the EDA for this program. He stated the city would be able to provide 22 loans. He commented on the loan application process that would be followed noting the city would be going with a first come, first served review process for the funding. He explained all applications would receive a date and time stamp upon submittal in order to assist staff with the review process. It was noted all applications and required documentation would be uploaded via a Laserfiche form. Commissioner Leith asked when this program would go live. Economic Development Manager Angell reported the program would go live on Thursday, May 71h. Commissioner Leith questioned how the first come, first served timing would work. Economic Development Manager Angell explained his goal would be to have the program open on Thursday at 9: 00 a. m. Vice President Jaeger inquired if the application for Maple DRAFT Maple Grove EDA Minutes May 4, 2020 Page 3 Grove was the same as other cities. Economic Development Manager Angell stated Maple Grove had a slightly modified application and it was a little more intensive based on the documentation that was required. Vice President Jaeger asked how much other cities were offering in loans. Economic Development Manager Angell reported each city varied stating most loans ranged from $ 7, 500 to $ 10, 000. Vice President Jaeger questioned if applicants could apply for PPP funding and the city' s COVID ELF loan. Economic Development Manager Angell stated this would be allowed. Commissioner Barnett thanked staff for their tremendous efforts on this loan program. Motion by Commissioner Leith, seconded by Vice President Jaeger, to approve the revised COVID- 19 Emergency Loan Fund (" COVID ELF") policies which offers forgivable loans to assist businesses affected by COVID- 19. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. Adjournment Motion by Treasurer Hanson, seconded by Commissioner Barnett, to adjourn to the City Council meeting. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. The meeting was adjourned at 9: 08 p. m. by President Steffenson. Respectfully submitted, Heidi Nelson EDA Secretary  REQUEST FOR EDA ACTION June 1, 2020 3A DATE AGENDA ITEM ORIGINATING DEPT. AGENDA ITEM CITY ADMINISTRATOR APPROVAL Community and Economic COVID- 19 Emergency Development Loan Fund ( COVID ELF) Update PREVIOUS ACTIONS: At the April 20th meeting, the EDA approved the creation of the COVID- 19 Emergency Loan Fund COVID ELF") program which established a forgivable loan program to assist businesses. At the May 41h meeting, the EDA approved the revised COVID- 19 Emergency Loan Fund program policies. RECOMMENDED COUNCIL ACTION: None at this time. COMMENTS: The COVID- 19 Emergency Loan Fund was created with the intention of providing funds to local businesses which faced mandated full or partial closures as they are allowed to re-open. Funding through the program could be used for many business- related expenses including payroll, accounts payable, rent/mortgage, utilities, inventory and other expenses. Application Process Beginning on May 1 lth at 10: 00 A.M. businesses were able to submit applications for funding through the EDA' COVID ELF. The application window was kept open for approximately 30 hours. A total of 35 applications were received during this time, with a majority of the applications ( 22) submitted in the first hour of the application being live. All but one application requested the maximum loan amount of 10, 000. Following submission, each application was evaluated to determine completeness and eligibility. Many applications required minor additional information or clarification during this phase. Of the additional information requested, this was primarily focused on additional information related to their payroll reports/ employment information and inclusion of new programs, such as the Paycheck Protection Program, on their debt schedule attachment. Initial reactions to the application process were very positive with many applicants citing that the online application process worked very well. Many applicants also noted that the application process and required documentation was very thorough, as compared to other Federal, State, and County programs. Additionally, many applications were appreciative that they were able to view the application and prepare the attachments needed prior to the application going live. Brett Angell, Project Manager— X6003 COVID ELF Policy Request for EDA Action June 1, 2020 Page 2 CMDC Review A total of 32 applications were deemed complete and eligible and were forwarded on to CMDC for underwriting. To date, 18 applications have been recommended for approval and 3 have been recommended for denial. Approved Businesses The businesses which have been approved through the program are a wide range of uses. Of the approved businesses, a breakdown of the uses is as follows: Food/ Beverage: 5 Salons/ Spas: 5 Dental/ Vision/ Chiropractic: 3 Fitness: 2 Retail Goods: 2 Animal Related: 1 Approved businesses are currently in the process of completing loan agreements. Once the loan agreements are finalized, funds can begin to be disbursed. It is anticipated that funds will begin to be disbursed beginning this week. Funding Update At the May 41h City Council meeting, the Council approved the transfer of$250, 000 from the City' s Revolving Loan Fund into the EDA for this program. Through the issuance of funds for the approved loans as mentioned above and associated underwriting costs, there is enough remaining funds to allow for three additional applicants to be funded at the full amount requested. With the assumption that there would not be an application recommended for denial, there will be $ 4, 000 remaining in the fund after the three additional loan awards. This would be a total of 21 total loans being issued through the program, which was the original anticipated number as the program was being created. Program Future Should the EDA consider additional funding for the COVID ELF program, to evaluate and fund the remaining applications which have been received would require an additional $ 92, 000, at a maximum. The program could also be re- opened for additional applications in the future. Through the Federal CARES ACT, the City has the ability to allocate funds to this program for an additional funding round, as well as reimburse the Revolving Loan Fund for the initial funds that were added to the program.