Economic Development Authority

AGENDA ECONOMIC DEVELOPMENT AUTHORITY OCTOBER 19, 2020 1. CALL TO ORDER 2. CONSENT ITEMS A. Meeting Minutes— September 21, 2020 Motion by seconded by to approve, table or deny the Consent Items as presented. 3. COVID- 19 Emergency and Recovery Loans A. COVID- 19 Emergency and Recovery Loans Forgiveness - EDA Resolution No. 23 Motion by seconded by to approve, table or deny approving EDA Resolution No. 23 authorizing a process for forgiveness of COVID recovery loan fund and COVID emergency loan fund loans. 4. ADJOURNMENT Motion by seconded by to adjourn. Meeting adjourned at  EDA 2A AGENDA ITEM Maple Grove Economic Development Authority DRAFT Meeting Minutes September 21, 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 1, 2020 at the Maple Grove Government Center/ Public Safety Facility, Hennepin County, Minnesota. Members present were Acting President Karen Jaeger, Secretary Heidi Nelson, Treasurer Judy Hanson, and Commissioners Phil Leith and Kristy Barnett. Absent was President Mark Steffenson. Present also were Joe Hogeboom, Community and Economic Development Director; Peter Vickennan, Planning Manager; Ken Ashfeld, Director of Public Works/ City Engineer; Brett Angell, Economic Development Manager; and Justin Templin, City Attorney. Acting President Jaeger called the meeting to order at 9: 05 p.m. Consent Items A. Meeting Minutes— September 8, 2020 B. CARES Act Funds Motion to approve dispersal of CARES Act funds to Cross for food and financial assistance programs that serve Maple Grove residents. Motion by Commissioner Barnett, seconded by Treasurer Hanson, to approve the September 8, 2020 Economic Development Authority meeting minutes. Upon call of the motion by Acting President Jaeger, there were four ayes and no nays. Motion carried. COVID- 19 Economic Development Manager Angell requested the Commission approve a resolution amending the COVID Recovery DRAFT Maple Grove EDA Minutes September 21, 2020 Page 2 Loan Fund Recovery Loan Fund policy and to allocate an additional COVID RLF) 500, 000 to this program. He explained between April and July the EDA created the COVID- 19 Recovery Loan Fund and the Amendments Emergency Loan Fund. He discussed the purpose of each of and Funding these programs with the EDA. He explained $ 500, 000 in CARES Act funding has been designated to both of these EDA programs and 37 businesses have received their funding. He Resolution No. stated at a previous worksession meeting, adjustments were 22 discussed for this program which would allow a greater number of businesses to apply for the funding. The proposed amendments were discussed in further detail. He commented on the items that were eligible for reimbursement through these programs. Acting President Jaeger questioned if businesses were eligible to apply for the new $ 2500 grant if they received funding in the first or second round of loans. Economic Development Manager Angell reported previously funded businesses would be able to apply if they had eirgrbie expenses. Motion by Commissioner Leith, seconded by Commissioner Barnett, to approve adopting EDA Resolution No. 22 authorizing amendments to and additional funding for the COVID- 19 Recovery Loan Fund. Upon call of the motion by Vice President Jaeger, there were four ayes and no nays. Motion carried. Adjournment Motion by Commissioner Barnett, seconded by Treasurer Hanson, to adjourn to the City Council meeting. Upon call of the motion by Acting President Jaeger, there were four ayes and no nays. Motion carried. The meeting was adjourned at 9: 15 p. m. by Acting President Jaeger. Respectfully submitted, Heidi Nelson EDA Secretary  REQUEST FOR EDA ACTION October 19, 2020 EDA 3A DATE AGENDA ITEM ORIGINATING DEPT. AGENDA ITEM CITY ADMINISTRATOR APPROVAL Community and Economic COVID- 19 Emergency Development and Recovery Loans 1! 1 Forgiveness 4 EDA Resolution No. 23 PREVIOUS ACTIONS: At the meeting of April 20 2020, the EDA approved the creation of the COVID- 19 emergency loan fund and authorized initial funding for the program. At the meeting of July 20, 2020, the EDA approved EDA Resolution No. 20 authorizing the creation of and funding for the COVID- 19 recovery loan fund. At the meeting of September 21, 2020, the EDA approved Resolution No. 22 amending the COVID- 19 recovery loan fund and allocating additional funds to the program. RECOMMENDED COUNCIL ACTION: Motion to approve EDA Resolution No. 23 authorizing a process for forgiveness of COVID recovery loan fund and COVID emergency loan fund loans. COMMENTS: Beginning in May, the EDA has offered businesses the ability to apply for loans of up to $ 10, 000 to be used for business- related expenses in response to the COVID- 19 pandemic through the COVID- 19 emergency loan fund and COVID- 19 recovery loan fund. A total of$ 1, 000, 000 of CARES Act funds were designated to these programs through three separate rounds of funding. The application process for both programs asked businesses if they intended to apply for forgiveness of the loan, if awarded. In every application, each business selected that they did intend to seek forgiveness of the loan. Based upon the approved policies for both the COVID ELF and RLF programs, forgiveness was based upon two factors with 50% of the loan being forgiven if the business stays in operation within Maple Grove and the remaining 50% forgiven if the business is able to return to pre- pandemic employment levels. The forgiveness period mirrors the deferment period for each loan with the intention that an awarded business would not have to snake a repayment if granted forgiveness. As of now, one business which had received funds through the program has since closed. The loan funds they had received were returned in full to the city. Per the State of Minnesota and the Treasury Department guidance and regulations, local jurisdictions have until November 15 to incur eligible expenses of CARES Act funds. Based upon this timeline, it is recommended that any outstanding COVID ELF/ RLF are forgiven by this date. Brett Angell, Project Manager— X6003 COVID RLF/ ELF Forgiveness Request for EDA Action October 19, 2020 Page 2 The attached resolution creates a forgiveness review committee comprising of the economic development manager and the director of community and economic development. Businesses seeking forgiveness will be asked to fill out a brief application which will be reviewed by the committee. Upon completion of the review, recommendations on forgiveness will be given to the EDA secretary( city administrator) who would have authorization to make final approval or denial of forgiveness requests. ATTACHMENTS: Attachment A: EDA Resolution No. 23  Attachment A RESOLUTION NO. 23 ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MAPLE GROVE A RESOLUTION AUTHORIZING A PROCESS FOR FORGIVENESS OF COVID RECOVERY LOAN FUND AND COVID EMERGENCY LOAN FUND LOANS WHEREAS, the federal Coronavirus Aid, Relief, and Economic Security(" CARES") Act, passed by Congress and signed into law on March 27, 2020, was intended to provide economic relief to state and local governments negatively impacted by the COVID- 19 pandemic; WHEREAS, the City of Maple Grove received funding under the CARES Act and used a portion of that funding to provide loans to Maple Grove businesses negatively impacted by the ongoing COVID- 19 pandemic under COVID Recovery Loan Fund( COVID RLF) and COVID Emergency Loan Fund ( COVID ELF); WHEREAS, the Economic Development Authority recognized that ( a) the expenditures contemplated in those programs and the measures taken are, in the sound and reasonable judgment of the Board, reasonably necessary to respond directly to the COVID- 19 emergency, including expenditures incurred to respond to second order effects of that emergency, by providing economic support to those suffering as a result of employment or business interruptions due to COVID- 19 related business closures; ( b) the costs of these expenditures were not accounted for in the City' s budget most recently approved as of March 27, 2020; and( c) delivery of the assistance will occur during the covered period of March 1, 2020 to November 15, 2020; WHEREAS, according to the terms set by the programs; the loans were intended to be forgivable provided the recipients met specified conditions; and NOW THEREFORE, IT IS RESOLVED by the Board of Commissioners of the EDA, based on the above recitals, information provided by City staff, and information received at the meeting, as follows: 1. The EDA designates a review committee to consist of the following City staff members: Economic Development Manager and Director of Community and Economic Development (" Review Committee"). 2. The Review Committee will review the individual loans and determine which, if any, of the loans made under the COVID RLF and COVID ELF programs have met the requirements of the respective programs for forgiveness of each of the individual loans. 3. Upon recommendation by the Review Committee, the Secretary will determine whether loan forgiveness is appropriate in each individual case. 1  4. The EDA authorizes the Secretary, on the FDA' s behalf, to make the final determination regarding forgiveness of any individual loan, and to direct staff to issue all necessary documentation of the same. Motion to approve the foregoing findings, conclusions, and decisions was made by and seconded by upon a vote being duly taken thereon, the following voted in favor thereof. and the following were against: and the following were absent: whereupon, the resolution was declared duly passed and adopted this 19t" day of October, 2020. STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) ss. CITY OF MAPLE GROVE ) 1, the undersigned, being the duly qualified Secretary of the Economic Development Authority in and for the City of Maple Grove, a public body corporate and politic and a political subdivision of the State of Minnesota, hereby certify that the above Resolution No. 23 is a true and correct copy of the Resolution as adopted by the EDA Board on the 19th day of October, 2020. Secretary 2