10-21 EDA Work Session
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
EDA Work Session
October 21, 2019
CALL TO ORDER
The meeting was called to order by Housing and Redevelopment Authority Chair Supple at
5:48 p.m.
ATTENDANCE
EDA Members Present: Mary Supple, President; Pat Elliott; Erin Vrieze Daniels; Sue Sandahl
EDA Members Absent: Maria Regan Gonzalez
Staff Present: John Stark, Director of Community Development/EDA Executive
Director; Katie Rodriguez, City Manager; and Julie Urban, Housing
Manager
ITEM #1 DISCUSSION OF BUSINESS DEVELOPMENT ACTIVITIES AND PROGRAMS
Executive Director Stark explained the background of the City’s business development
activities and reviewed the current programs.
President Supple shared comments from Commissioner Regan Gonzalez, who was unable
to be in attendance. Commissioner Regan Gonzalez wrote in support of the programs suggested
by staff and agreed that additional staff is not the answer. She also asked what would outreach to
small businesses look like and encouraged building off the existing partnership with the Chamber
of Commerce. She also expressed her desire to see the City work collaboratively with partners to
move business development work forward.
Executive Director Stark explained that staff turnover made consistent work with the
Chamber more challenging and reminded Commissioners that the Chamber represents its
members, not all Richfield businesses. A discussion followed regarding ways to work together on
business development with the Chamber.
Rob Smolund from the Metropolitan Consortium of Community Developers (MCCD)
described his work with Richfield residents and businesses through the Open to Business
Program. Executive Director Stark explained that we’re working on more consistent market of the
program and exploring social media and other ways of creating awareness about the program.
Executive Director Stark stated that the Economic Development Authority (EDA) has
$170,000 available for business development and that there are several potential uses for the
funds, including a business assistance loan.
EDA Work Session -2- October21,2019
Lee Hall, Chief Operating Officer at MCCD, talked about their lending experience and how
they're using that capacity to assist communities with loan products. He explained that cities can
structure the business loans however they want, and MCCD will administer, underwrite and service
the loans.
Executive Director Stark reviewed potential terms of a Richfield loan program, explaining
that the maximum loan would be $75,000, in order to comply with the State's business subsidy law.
He described a second option for EDA funds would be to create a displaced business fund specific
to businesses being displaced by any City/HRA project. In response to a question from
Commissioner Vrieze Daniels, Executive Director Stark explained that the program could apply to
all displaced businesses but reminded Commissioners that resources are limited. He explained
that a tiered program could be available to all but would prioritize and give greater funds to
businesses displaced by a City/HRA project.
A third possible program would be to promote energy-efficiency loans through the Center
for Energy and Environment. The EDA could also use its funds to buy down the interest rate.
Executive Director Stark described additional options for business development, including
moving the façade improvement grant to a different geographic area, e.g., East 66th Street, and/or
expanding banners to other areas, e.g., Cedar Point. The Commissioners discussed recognizing a
business on an annual basis and marketing all resources to local businesses. Given the positive
interest in all the options, Executive Director Stark explained that staff would come back to the
EDA with one program at a time, providing more specifics, and asking for approval.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:45 p.m.
Date Approved: November 18, 2019
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