01-21-2020 EDA Complete AgendaE C O N O MIC D E V E L O P ME N T AU T H O R IT Y ME E T IN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
J AN U ARY 21, 2020
7:15 PM (I MME D I AT ELY FO L L OWI NG THE HRA ME ETI NG)
C all to Order
C onsider the election of officers for the Richfield E conomic D evelopment A uthority for 2020.
S taff Report No. 1
Approval of the Minutes
A pproval of the minutes of the: Regular E conomic D evelopment A uthority meeting of November 18, 2019.
AG E N D A APPR O VAL
1.A pproval of the A genda
2.Consent Calendar contains several separate items which are acted upon by the E D A in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further E D A action on these items is necessary. However, any E D A
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for E D A discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A .C onsider the adoption of a resolution amending the B ylaws of the Richfield E conomic D evelopment
A uthority to revise the "Order of B usiness", including the addition of an "Open F orum."
S taff Report No. 2
B .C onsideration of resolutions designating official depositories for the E conomic D evelopment A uthority for
2020, including the approval of collateral.
S taff Report No. 3
C .A n amendment to the guidelines for the K ids@Home program to remove a requirement of citizenship.
S taff Report No. 4
D .D esignation of C ommunity D evelopment D irector John S tark as the E xecutive D irector of the Richfield
E conomic D evelopment A uthority for 2020.
S taff Report No. 5
3.C onsideration of items, if any, removed from C onsent C alendar
R E S O L U T IO N S
4.A uthorize the E conomic D evelopment A uthority E xecutive D irector to approve expenditures and approve and
execute professional service agreements/contracts in an amount up to $50,000.
S taff Report No. 6
O T H E R B U S IN E S S
5.C onsider the creation of an E nergy E fficient B usiness Grant.
S taff Report No. 7
6.C onsider the creation of a S mall B usiness Revolving L oan F und P rogram for Richfield businesses.
S taff Report No. 8
E D A D ISC U SSIO N IT E MS
7.E D A D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
8.E xecutive D irector's Report
C LAIMS
9.C laims
10.A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9738.
AGENDA SECTION:Call to Order
AGENDA ITEM #
S TAFF REPORT NO. 1
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: L aTonia D uB ois, A dministrative A ssistant
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/13/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the election of officers for the Richfield Economic Development Authority for 2020.
E X E C UT IV E S UM M ARY:
The Bylaws of the Richfield Economic Development Authority (E D A) provide that the E D A hold an annual
meeting in J anuary. The Bylaws further provide that the E D A elect the President, Treasurer, and Secretary
annually.
Officers for 2019 were:
Mary Supple, President
Pat Elliot, Vice-President
Sue Sandahl, Treasurer
Kate Aitchison, Secretary (not required to be an E D A Commissioner)
Chris Regis, Assistant Treasurer (not required to be an E D A Commissioner)
RE C O M M E ND E D AC T I O N:
By Motion: Elect officers for the Richfield Economic Development Authority for 2020.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Provided in the Executive Summary.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The E D A Bylaws provide for the election of officers.
C.C R IT IC AL T IMIN G IS S U E S:
None
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
None
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
November 18, 2019
CALL TO ORDER
The meeting was called to order by President Supple at 7:17 p.m. in the Council Chambers.
EDA Members Mary Supple, President; Pat Elliott; Maria Regan Gonzalez, Sue Sandahl
and Erin Vrieze
Present: Daniels.
EDA Members None
Absent:
Staff Present: John Stark, Executive Director; Julie Urban, Housing Manager and LaTonia
DuBois, Administrative Assistant
APPROVAL OF THE MINUTES OF THE REGULAR ECONOMIC DEVELOPMENT AUTHORITY
MEETING OF AUGUST 19, 2019; 2) THE EDA WORK SESSION ON OCTOBER 21, 2019.
M/Regan Gonzalez, S/Vrieze Daniels to approve the minutes of 1) the regular Economic
Development Authority meeting of August 19, 2019; 2) the EDA work session on October 21, 2019.
Motion carried 5-0.
Item #1
APPROVAL OF THE AGENDA
M/Elliott, S/Sandahl to approve the agenda.
Motion carried 5-0.
Item #2
CONSIDERATION OF THE APPROVAL OF A TRANSFORMATION HOME LOAN
PILOT PROJECT TO EXPAND PROGRAM PARAMETERS TO ACCOMMODATE
UP TO THREE LOANS FOR PROJECTS CONSTRUCTING ACCESSORY
DWELLING UNITS. STAFF REPORT NO. 7
Housing Manager Urban presented staff report No. 7
Commissioner Regan Gonzalez inquired about other resources that could be leveraged to
add to a fund focused on Accessory Dwelling Units (ADU’s). Commissioners Elliott, Sandahl and
Vrieze Daniels all spoke in favor of ADU’s and the pilot program.
Commissioner Elliott inquired about Air B&B’s and how they are registered in the City.
EDA Meeting Minutes -2- November 18, 2019
M/Regan Gonzalez, S/Vrieze Daniels to approve a transformation home loan pilot project to
expand program parameters to accommodate up to three loans for projects constructing accessory
dwelling units.
Motion carried 5-0.
Item #3
EDA DISCUSSION ITEMS
Commissioner Elliott inquired about the Chamber of Commerce and Economic
Development Authority relationship and inviting the Chamber of Commerce to certain meetings.
President Supple inquired about Economic Development Authority goals and timelines,
Executive Director Stark gave updates.
Item #4
EXECUTIVE DIRECTOR REPORT
None
Item #5
CLAIMS
M/Vrieze Daniels, S/Sandahl that the following claims be approved:
U.S. BANK 11/18/19
EDA Checks: 20282-20296 $13,546.23
TOTAL $13,546.23
Motion carried 5-0.
Item #8
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:31 p.m.
Date Approved: January 21, 2020
President
LaTonia DuBois John Stark
Administrative Assistant Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
S TAFF REPORT NO. 2
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: J ohn S tark, E xecutive D irector
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/13/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the adoption of a resolution amending the Bylaws of the Richfield Economic Development
Authority to revise the "Order of Business", including the addition of an "Open Forum."
E X E C UT IV E S UM M ARY:
I n staff's annual review of the Richfield Economic Development Authority (E D A) Bylaws, it was noted that the
"Order of Business" as it is currently stated does not conform to the actual practice of the E D A.
There has also been a suggestion from a member of the City Council for the E D A to include an "Open
Forum" in their meetings. Both the City Council and Planning Commission currently allow for an Open
Forum. As with both of those bodies, the E D A's Open Forum would be limited to items not on the current
meeting's agenda.
The suggested "Order of Business" is as follows:
1. Call to Order/Noting of Attendance
2. Open Forum
3. Approval of Minutes of Previous Meeting(s)
4. Presentations
5. Approval of Agenda
6. Consent Agenda
7. Public Hearings
8. Resolutions
9. Other Business
10. E D A Discussion I tems
11. Executive Director ’s Report
12. Approval of Claims
13. Adjournment
I f, at any particular meeting, there are no items for a specific topic, that topic will be omitted from the agenda
for that meeting.
The Bylaws (as suggested), in their entirety, are attached to this report.
RE C O M M E ND E D AC T I O N:
By Motion: Adopt a resolution amending the Bylaws of the Richfield Economic Development Authority.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The E D A staff routinely reviews the E D A Bylaws to ensure that they meet both current practice
and the future needs of the E D A.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The amendment better reflects current practice.
I ncluding an "Open Forum" would make the E D A more consistent with the City Council and
Planning Commission.
C.C R IT IC AL T IMIN G IS S U E S:
N/A
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
E D A Legal Counsel has been apprised of this recommended action.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve a resolution modifying he E D A Bylaws, or;
Approve a modified version of the attached resolution modifying the E D A Bylaws to better reflect the
direction of the Authority.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
Resolution A mending E D A B ylaws Resolution L etter
EDA RESOLUTION NO.
RESOLUTION AMENDING THE BYLAWS OF THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD, MINNESOTA
WHEREAS, the Economic Development Authority in and for the City of Richfield,
Minnesota (Authority) has established Bylaws; and
WHEREAS, from time to time it is appropriate for the Bylaws to be amended; and
WHEREAS, in accordance with Minnesota State Statutes, the Mayor and the City
Council of the City of Richfield is authorized to create an Economic Development Authority
(Authority) and to determine the composition thereof; and
WHEREAS, the Bylaws of the Authority do not currently reflect or acknowledge the
Composition of Membership as determined by the Mayor and City Council, nor the Manner of
Voting undertaken by the Authority.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and
for the City of Richfield, Minnesota that Article I of its Bylaws be augmented to include:
Section 5. Order of Business. At the regular meetings of the Authority the following
shall be the order of business:
1. Call to Order/Noting of Attendance
2. Open Forum
3. Approval of Minutes of Previous Meeting(s)
4. Presentations
5. Approval of Agenda
6. Consent Agenda
7. Public Hearings
8. Resolutions
9. Other Business
10. EDA Discussion Items
11. Executive Director’s Report
12. Approval of Claims
13. Adjournment
Adopted by the Economic Development Authority in and for the City of Richfield,
Minnesota this 21st day of January 2020.
_________________________________
_______________________, Chair
ATTEST:
_________________________
_________________, Secretary
BYLAWS OF THE
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
ARTICLE I – THE AUTHORITY
Section 1. Name of Authority. The name of the economic development authority shall
be the “Richfield Economic Development Authority” (the “Authority”).
Section 2. Seal of Authority. The seal of the Authority shall be in the form of a circle and
shall bear the name of the Authority.
Section 3. Office of Authority. The offices of the Authority shall be at City Hall in the City
of Richfield, Minnesota, but the Authority may hold its meetings at such other place or places as
it may designate by resolution.
Section 4. Official Newspaper. The official newspaper shall be the official newspaper
designated by the City as its official newspaper each year.
ARTICLE II – BOARD
Section 1. Number and Appointment of Commissioners. The Authority shall consist of a
governing body of five commissioners (the “Board”). Two commissioners shall be members of
the City Council and three commissioners shall be members at large. The terms of the
commissioners who are also members of the City Council shall coincide with their terms of
office as members of the City Council. The three at large commissioners shall be the three at
large commissioners of the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the “HRA”). The terms of the commissioners at large shall be six years.
At any time an at large commissioner of REDA is not also a commissioner of the HRA, such
commissioner’s term on REDA shall terminate.
ARTICLE III – OFFICERS
Section 1. Officers. The officers of the Authority shall be a President, Vice-President,
Treasurer, Secretary, and Assistant Treasurer, each of whom shall have the usual duties and
powers of such offices, the duties and powers given to them by the Board from time to time, and
those duties and powers prescribed by Minnesota law or these bylaws. The President,
Treasurer, and Secretary shall be elected annually by the Board. No commissioner may be
both President and Vice-President simultaneously. No commissioner may be both Treasurer
and Assistant Treasurer simultaneously. The Secretary and the Assistant Treasurer need not
be commissioners.
Section 2. President. The President shall preside at all meetings of the Board. Except
as otherwise authorized by resolution of the Board, the President shall sign all contracts, deeds,
and other instruments made or authorized by the Board. At each meeting the President shall
submit such recommendations and information as he or she may consider proper concerning
the business, affairs, and policies of the Authority.
Section 3. Vice-President. The Vice-President shall perform the duties of the President
in the absence or incapacity of the President. In case of the resignation or death of the
President, the Vice-President shall perform the duties of the President until such time as the
Board shall elect a new President.
Section 4. President Pro Tem. In the event of the absence or incapacity of both the
President and the Vice-President at any meeting, the Board may appoint any remaining
commissioner as President Pro Tem to preside at such meeting.
Section 5. Secretary. The Secretary shall keep the minutes of all meetings of the Board
and shall maintain all records of the Authority and shall have such other duties and
responsibilities as the Board may from time to time prescribe by resolution.
Section 6. Treasurer. The Treasurer shall have the care and custody of all funds of the
Authority and shall deposit the same in the name of the Authority in such national or state bank
or banks in Minnesota as the Board may select. The Treasurer shall sign all Authority orders
and checks for the payment of money and shall pay out and disburse such moneys under the
direction of the Board. The Treasurer shall keep regular books of accounts showing receipts
and expenditures and shall render to the Board, at least annually (or more often when
requested), an account of such transactions and also of the financial condition of the Authority
by filing a detailed financial statement with the Secretary. The Treasurer is responsible for the
acts of the Assistant Treasurer and must give bond as required by law.
Section 7. Assistant Treasurer. The Assistant Treasurer has the powers and duties of
the Treasurer if the Treasurer is absent or disabled.
Section 8. Executive Director. The Authority shall employ an Executive Director who
shall be the chief executive officer of the Authority and shall have general supervision over the
administration of the Authority’s business and affairs, subject to the direction of the Authority.
He or she shall have such additional responsibilities and authority as the Board may from time
to time by resolution prescribe. Regardless of who is appointed as Executive Director, the City
Manager of the City of Richfield shall have ultimate authority in recommending an annual levy
and budget. The Executive Director may designate an acting Executive Director during periods
when the Executive Director is absent or incapacitated.
Section 9. Other Administrative Officers. The Authority may designate a Recording
Secretary who shall keep the records of the Authority, shall act as recorder of the meetings of
the Authority and record all votes, and shall keep a record of the proceedings of the Authority in
a journal of proceedings to be kept for such purpose, and shall perform all duties incidental to
his or her office. He or she shall keep in safe custody the seal of the Authority and shall have
power to affix such seal to all contracts and instruments authorized to be executed by the
Authority.
Section 10. Additional Employees. The Authority may from time to time such personnel
as it deems necessary to exercise its powers, duties, and functions, including but not limited to a
chief engineer, other technical experts and agents, and other employees. The selection and
compensation of such personnel shall be determined by the Board.
Section 11. Advisory Committees. The Authority may by resolution establish one or
more advisory committees to the Authority.
Section 12. Signature Authority. The following signature authority shall be authorized
for transactions executed under direction of the Board:
(A) All orders and checks of the Authority for payment of money as directed
by the Board shall be signed by the President and the Executive Director.
(B) All contracts, deeds, and other instruments made or authorized by the
Board, except as otherwise authorized by resolution of the Board, shall be signed by the
President and the Executive Director.
(C) The Vice-President shall have the capacity to sign as an alternate officer
of the Authority under extenuating circumstances such as lengthy executed absence,
vacancy, termination, resignation, incapacitation or death of the President or of the
Executive Director. The Vice-President may sign as an alternate for only one absent
individual for any Authority matter until the absent individual has returned or a successor
is appointed to fill the office. The Vice-President may not sign in the capacity of more
than one individual for any particular item requiring more than one signature. For
purposes of this definition, absent is defined as a period, usually significant in length,
during which an officer is away and/or unable to fulfill the officer’s role within the
Authority leading to the potential for business issues of the Authority to be delayed
and/or deadlines to be missed.
ARTICLE IV – FINANCIAL MATTERS
Section 1. Fiscal Year. The fiscal year of the Authority shall be the same as the fiscal
year of the City.
Section 2. Accounting System and Audits; Books and Records. The financial records
and financial statements of the Authority shall be prepared, audited, filed, and published or
posted in the manner required for the financial statements of the City. The books and records of
the Authority shall be public records maintained in accordance with state law and with such
rules, regulations, and ordinances adopted by the City for maintaining public records.
Section 3. Public Money; Checks. All Authority money is public money. An Authority
check must be signed as provided in Section 12 under Article III – Officers. The check must
state the name of the payee and the nature of the claim for which the check was issued.
Section 4. Reports to the City. Annually, at a time and in a form fixed by the City
Council, the Authority shall make a written report to the City Council giving a detailed account of
its activities and of its receipts and expenditures during the preceding calendar year, together
with additional matters and recommendations the Authority deems advisable for the economic
development of the City. The Authority shall also submit a report to the City Council annually
within 60 days of the anniversary date of the adoption of the enabling resolution stating whether
and how the enabling resolution should be modified.
Section 5. Financial Statement. Annually, or more often, the Authority shall examine the
Treasurer’s detailed financial statement, together with the Treasurer’s vouchers, filed with the
Secretary. The financial statement must show all receipts and disbursements, their nature, the
money on hand, the purposes to which the money on hand is to be applied, the Authority’s
credits and assets, and the Authority’s outstanding liabilities in a form required for the City’s
financial statements. If the Authority finds that the statement and vouchers are correct, it shall
approve them by resolution and enter the resolution in its records.
Section 6. Budget to the City. The Authority shall annually, at a time fixed by the City,
send its budget to the City Council. The budget must include a detailed written estimate of the
amount of money that the Authority expects to need from the City to do Authority business
during the next fiscal year. The needed amount is what is needed in excess of any expected
receipts from other sources.
Section 7. Employees, Services, Supplies, and Contracts. The Authority shall have all
of the power and do all of the things permitted by Minnesota Statutes, Section 469.097, as
amended, including but not limited to employing an Executive Director, a chief engineer,
technical experts and other employees as it may require; contracting for the services of
consultants, agents, public accountants, legal services, and such other persons or services as it
may need to perform its duties and exercise its powers; purchasing supplies and materials; and
using City facilities, offices, and staff, including the City engineer and City attorney, in the
exercise of its powers and the performance of its duties.
Section 8. Execution of Contracts. The Authority may make and enter into contracts
pursuant to Minnesota Statutes, Section 469.101, as amended, and other applicable law. All
contracts, notes, and other written agreements or instruments to which the Authority is a party
or by which the Authority may be bound must be executed as provided in Section 12 under
Article III – Officers. If the president or the executive director is absent or otherwise unable to
execute a document, the vice president may execute the document in place of one individual
but not both.
ARTICLE V – MEETINGS
Section 1. Annual Meeting. The annual meeting of the Authority shall be held on the
third Tuesday in January immediately following the adjournment of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, which commences at 7:00
p.m. at the regular meeting place of the Authority.
Section 2. Regular Meetings. Monthly meetings shall be held without notice at the
regular meeting place of the Authority on the third Monday of each month immediately following
the adjournment of the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota, which commences at 7:00 p.m. unless the same shall be a legal holiday, in which
event said meeting shall be held on the next succeeding secular day.
Section 3. Special Meetings. Special meetings of the Authority may be called by the
President or any two commissioners of the Authority for the purpose of transacting any business
designated in the call. The call for a special meeting may be delivered at any time prior to the
time of the proposed meeting to each member of the Authority or may be mailed to the business
or home address of each commissioner of the Authority at least two (2) days prior to the date of
such special meeting. At such special meeting no business shall be considered other than as
designated in the call, but if all of the members of the Authority are present at a special meeting,
any and all business may be transacted at such special meeting.
Section 4. Quorum. The powers of the Authority shall be vested in the commissioners
thereof in office from time to time. Three commissioners shall constitute a quorum for the
purpose of conducting its business and exercising its powers and for all other purposes, but a
smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in
attendance, action may be taken by the Authority upon a vote of a majority of the
commissioners present.
Section 5. Order of Business. At the regular meetings of the Authority the following
shall be the order of business:
1. Call to Order/Noting of Attendance.
2. Open Forum
3. Approval of Minutes of Previous Meeting(s).
4. Presentations.
5. Approval of Agenda.
6. Consent Agenda.
7. Public Hearings.
8. Resolutions.
9. Other Business.
10. EDA Discussion Items.
11. Executive Director’s Report.
12. Approval of Claims.
13. Adjournment.
All resolutions shall be in writing and shall be copied in the journal of the
proceedings of the Authority.
Section 6. Combining Administrative Offices; Compensation. The compensation
of the Executive Director and other personnel of the Authority shall be determined by
the Authority. Any two or more administrative offices may be combined.
Section 7. Additional Duties. The officers of the Authority shall perform such other
duties and functions as may from time to time be required by the Authority or the Bylaws or
rules and regulations of the Authority.
Section 8. Executive Director. The Executive Director shall be appointed by the
Authority. Any person appointed to fill the office of Executive Director or any vacancy therein,
shall have such term as the Authority fixes, but no commissioner of the Authority shall be
eligible for this office.
Section 9. Vacancies. A vacancy is created in the membership of the Authority when a
commissioner who is also a City Council member ends his or her City Council membership. A
vacancy for this or another reason must be filled for the balance of the unexpired term, in the
manner in which the original appointment was made. The City Council may set the term of the
commissioners who are members of the City Council to coincide with their term of office as
members of the City Council. Should the office of President, Vice-President, or Secretary
become vacant, the Authority shall elect a successor from its membership at the next regular
meeting, and such election shall be for the unexpired term of said office.
ARTICLE V – AMENDMENTS
Section 1. Amendments to Bylaws. The Bylaws of the Authority shall be amended only
with the approval of at least three of the members of the Authority at a regular or a special
meeting.
Adopted: May 15, 2017
Amended: October 15, 2018
Amended: January 21, 2020
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.B.
S TAFF REPORT NO. 3
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: C hris Regis, F inance D irector
O THE R D E PA RTM E NT RE V IE W: N/A .
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/13/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of resolutions designating official depositories for the Economic Development Authority
for 2020, including the approval of collateral.
E X E C UT IV E S UM M ARY:
I n compliance with Minnesota statutes, the Economic Development Authority of Richfield (E D A) must
designate on an annual basis those financial institutions it does business with.
The following resolutions for the E D A Board’s consideration, designate U.S Bank/4M Fund as a depository
of E D A funds, and certain savings and loan associations, banks, credit unions and certain financial
institutions as depositories for the investment of E D A funds.
RE C O M M E ND E D AC T I O N:
By Motion: Adopt the attached resolutions designating official depositories, with the understanding
that the E D A could not invest in any of the depositories beyond the level of insurance coverage of the
pledged collateral.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
N/A.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
I n accordance with Minnesota Statutes Section 118A.01 - 118A.06 and 469.099, the E D A of
Richfield must designate financial institutions annually. The institutions must pledge the
collateral over and above the amount of federal insurance, as public depositories.
U.S. Bank acts as the banking institution in the E D A’s banking arrangement with the 4M
Fund. Monies received, checks written, by the E D A, flow through U.S. Bank, however, at
the end of each business day, any proceeds remaining in E D A U.S. Bank accounts are
swept to the 4M Fund to be invested. Therefore, at the end of the business day the E D A
accounts are zero, which means the collateral requirements of Minnesota Statutes Section
118A.03 are not required. Accordingly, U.S. Bank has met all other statutory requirements
and should be considered as a depository for the E D A’s vendor accounts and all savings
deposits.
The E D A must also designate annually, certain savings and loan associations, banks, and
credit unions as official depositories for deposit and investment of certain E D A funds. W ith
approval of these official depositories, the E D A will be able to invest funds in these
institutions, not exceeding the federal insurance of $250,000.
Finally, a designation must be made for certain financial institutions as depositories for the
investment of E D A funds for 2020. These institutions, such as investment brokerage firms,
offer government securities in the manner required by law. These financial institutions
include RB C Capital Markets, Raymond J ames & Associates, Northland Securities,
Oppenheimer & Co., Wells Fargo I nstitutional Retirement and Trust, and the 4M Fund.
C.C R IT IC AL T IMIN G IS S U E S:
N/A.
D.F IN AN C IAL IMPAC T:
N/A.
E.L E GAL C ON S ID E R AT ION:
The E D A is required by Minnesota Statute 118A.01 - 118A.06 and 469.099, to designate
as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is
accompanied by an assignment pledged to the E D A in the amount specified in the
attached resolutions.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None.
AT TAC H ME N T S:
D escription Type
Resolution D esignating certain financial institutions as
depositories for investment of E D A funds Resolution L etter
Resolution designating certain savings & L oan
asociations, banks, and credit unions as depositories for
the investment of E D A funds
Resolution L etter
Resolution designating US B ank a depository of funds for
the E D A Resolution L etter
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2020
WHEREAS, the Economic Development Authority of Richfield has money which is
available for investment; and
WHEREAS, different financial institutions offer different rates of return on
investments; and
WHEREAS, the Economic Development Authority of Richfield shall purchase U. S.
Treasury Bills, U. S. Treasury Notes and other such government securities in the
manner required by law from the institution offering the highest rate to the Economic
Development Authority of Richfield providing greater flexibility in the investment
program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority
of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 –
118A.06, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Economic Development Authority of Richfield funds that
certain financial institutions be designated as additional depositories for
Economic Development Authority of Richfield funds for 2020.
2. The following financial institutions designated as depositories for the Economic
Development Authority of Richfield funds:
RBC Capital Markets. Raymond James & Assoc.
4M Fund Oppenheimer & Co.
Wells Fargo Institutional Retirement & Trust
Northland Securities, Inc.
3. The Finance Director is hereby authorized to deposit the Economic
Development Authority of Richfield funds in any or all of the depositories
herein designated. Such deposits may be made and withdrawn from time to
time by the Finance Director’s judgment and as the interest of the Economic
Development Authority of Richfield dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the
investment of these funds.
Adopted by the Economic Development Authority of Richfield, Minnesota this 21st day
of January, 2020.
President
ATTEST:
Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS,
BANKS
AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF ECONOMIC
DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2020
BE IT RESOLVED, by the Economic Development Authority of Richfield,
Minnesota:
WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 – 118A.06,
municipal funds may be deposited in any Savings and Loan Association, Bank or Credit
Union which has its deposits insured by the Federal Deposit Insurance Corporation
(FDIC), or National Credit Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA
insurance covering such deposits which insurance amount is presently $250,000; and
WHEREAS, the deposit of Economic Development Authority funds in Savings
and Loan Associations and Banks would provide greater flexibility in the Economic
Development Authority’s investment program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Economic Development
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Economic Development Authority funds that certain Savings
and Loan Association and Banks be designated as additional depositories for
Economic Development Authority funds for 2020.
2. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investments of
Economic Development Authority funds and that such designation is not
exclusive nor does it preclude the deposit of any Economic Development
Authority funds in other officially designated depositories of the Economic
Development Authority.
3. The Finance Director is hereby authorized to deposit Economic Development
Authority funds in various depositories up to the amount of $250,000, or such
other amount as may be subsequently permitted by law, such deposits to be
in the form of demand accounts, payable to the Economic Development
Authority of Richfield on the signatures of the Economic Development
Authority Finance Director. Such deposits may be made and withdrawn from
time to time by the Finance Director as his best judgment and the interests of
the Economic Development Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies of the Economic
Development Authority regarding the investment of Economic Development
Authority funds.
Adopted by the Economic Development Authority of Richfield, Minnesota this 21st day
of January, 2020.
President
ATTEST:
Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE EDA OF RICHFIELD
FOR THE YEAR 2020
BE IT RESOLVED, by the Economic Development Authority of Richfield as
follows:
That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S.
Bank be, and hereby is designated a depository of the funds of the Economic
Development Authority of Richfield, subject to modification and revocation at any time
by said Economic Development Authority, and subject to the following terms and
conditions:
The said depository shall not be required to give bonds or other securities for
such deposits provided that the total sum thereof shall not at any time exceed in any
depository the sums for which its deposits are insured under the Acts of Congress of the
United States relating to insurance of bank deposits; but that in case such deposits in
any such depository shall at any time exceed such insured sum, said depository shall
immediately furnish bonds or other security for such excess according to law, approved
by the Economic Development Authority of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all
time deposits, at or after the end of the period for which the same shall be deposited, on
demand.
BE IT FURTHER RESOLVED, that there shall be maintained a general account
in which shall be deposited all monies. The following officers or their facsimile
signatures shall sign checks on this account;
, PRESIDENT
JOHN STARK, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that all funds remaining in the account at the end
of each business day will be transferred from U.S. Bank to the 4M Fund where funds
deposited are invested and insured.
Adopted by the Economic Development Authority of Richfield, Minnesota this 21st
day of January, 2020.
President
ATTEST:
Secretary
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.C.
S TAFF REPORT NO. 4
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: J ohn S tark, E xecutive D irector & J ulie Urban, Housing & Redevelopment
Manager
O THE R D E PA RTM E NT
RE V IE W:
E X E C UTIV E D IRE C TO R
RE V IE W: J ohn S tark, E xecutive D irector
1/14/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
An amendment to the guidelines for the Kids@ Home program to remove a requirement of citizenship.
E X E C UT IV E S UM M ARY:
Kids@Home is a shallow rent subsidy program designed to help families with children in Richfield schools
attain a stable housing situation, as studies show this is a key factor in educational success. The Kids@Home
program is now celebrating its fifteenth year of serving the community. To date, over 150 families have
benefited from the program.
At the inception of the program, a set of guidelines was established and is attached for review. Among the
original requirements was that the head of household must be a citizen or permanent resident. Staff has
interpreted this to require that the head of household should be in the process of seeking some sort of
permanent residency.
The citizenship requirement was brought to staff's attention by a group of residents who questioned the need
for the requirement. This program is the only locally funded and administered program to have any citizenship
requirement. The guidelines were originally based on federal Section 8 Housing Choice Voucher rules, which
do require citizenship. The source of funds for the program is the Economic Development Authority (E D A)
property tax levy. Property taxes are paid, either directly or indirectly, by anyone who owns or rents property
in Richfield. The requirement that program participants must be a Richfield resident, therefore, ensures that
participants would be counted among the people who fund the program.
RE C O M M E ND E D AC T I O N:
By Motion: Amend the guidelines of the Kids@ Home program to exclude any citizenship requirement.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The Kids@Home program began on December 1, 2004.
The original guidelines for the program included a requirement that the head of household of a
participating family must be a citizen or permanent resident.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
This program is the only locally funded and administered housing program to have any citizenship
requirement.
The guidelines were based on federal Section 8 Housing Choice Voucher rules, which do require
citizenship.
The source of funds for the program is the E D A property tax levy. Property taxes are paid, either
directly or indirectly, by anyone who owns or rents property in Richfield. The requirement that
program participants must be Richfield residents, therefore, ensures that participants would be
counted among the people who fund the program.
C.C R IT IC AL T IMIN G IS S U E S:
The Kids@Home program is expected to open to new families beginning February 4. I f
approved, the amended guidelines would apply immediately.
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
Kids@Home is funded solely by the Richfield E D A and is under no obligation to include a
citizenship requirement.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not amend the guidelines.
Continue the item to seek further information or clarification.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
K ids@Home guidelines B ackup Material
Kids @ Home – Rental Assistance Program
Kids @ Home is a 48 month rent assistance program. Families must fit the criteria to enter the program and maintain this
criterion to continue to receive rental assistance under the program.
Criteria for families:
♦ must currently be housed in unsubsidized rental housing in Richfield (no shared housing)
♦ have a child or children in Richfield schools (K – 12)
♦ child or children need to be enrolled and attend a Richfield school
♦ one parent (or adult in family) is employed for a minimum of 30 hours a week (pay checks stubs for 2 months
of work needed to provided verification of this income)
♦ not receiving any other housing assistance
♦ annual income must fall at or below income guideline
♦ rental payments must be current or no more than one month’s total rent owed to landlord
♦ Families must be willing to attend 10 Parent Share meetings a year (Parent Share meetings are held Thursday
evenings from 6:00 p.m. to 8:00 p.m. at Hope Presbyterian Church in Richfield. Families must attend 5 of the
Parent Share meetings by June 30th of each year and the remaining 5 must be completed by December 15th of
each year)
♦ family must be citizens, permanent residents or seeking proper immigration status
Income Limits Effective 04/24/2019
50% of Area Median Income
Persons Income Limit Persons Income Limit
2 $40,000 6 $58,000
3 $45,000 7 $62,000
4 $50,000 8 $66,000
5 $54,000
Occupancy Standards – Family Size determines the
Occupancy Size (bedroom size for your family) and the bedroom
size determines your rent assistance. You may live in a unit that
is larger than the Occupancy Size determined by Richfield HRA,
rent assistance in that case will be determined by actual family
size. If your family lives in a unit smaller than the occupancy
standard the assistance determined by Richfield HRA is the
bedroom size of the unit.
Number of Persons
Bedroom Size
2 - 4 2
5 -7 3
8 -10 4/5
Rent Assistance (effective 9/1/2019) – Families receive rent assistance based on the following flat payment. Each year
rent assistance decreases, families responsibility will increase)
Bedroom Size
1st Year
2nd Year
3rd Year
4th Year
One $450 $400 $350 $250
Two $550 $500 $450 $350
Three $650 $550 $500 $450
Four/Five $750 $700 $650 $550
The Kids @ Home Program will open in February 2020 for applications. Interested individuals will need to download an
application from the City of Richfield’s website (www.cityofrichfield.gov). There will be a link on the first page of the website
that will direct you to the application. The application will be available for download from 10:00 a.m. Tuesday February 4, 2020
through 4:00 p.m. Friday February 14, 2020. Complete the entire application and return it along with a copy of your current
lease and paystubs that reflect 6 – 8 weeks of payment (check stubs must be dated December 2019, January 2020 or February
2020). The application, current lease and appropriate paystubs must be submitted to Richfield HRA no later than 4:00 p.m. on
Monday February 24, 2020. (FAX AND E-MAILS WILL NOT BE ACCEPTED)
If there are more qualified candidates than openings available Richfield HRA will conduct a random lottery drawing.
Letters/E-mails for the qualified candidates who have been pulled for the lottery will be sent out no later than March 6, 2020.
Those applications not selected in the lottery draw will have their applications shredded. Applicants selected from the lottery
draw must complete the required process to become participants on the Kids @ Home Program as well as attend a scheduled
briefing in April or May of 2020. Rent assistance for qualified candidates who have successfully completed the application
process will begin June 1, 2020.
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.D.
S TAFF REPORT NO. 5
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: J ohn S tark, E xecutive D irector
O THE R D E PA RTM E NT RE V IE W:
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/13/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Designation of Community Development Director John Stark as the Executive Director of the Richfield
Economic Development Authority for 2020.
E X E C UT IV E S UM M ARY:
I n September 2018, Community Development Director J ohn Stark was appointed by the Richfield Economic
Development Authority (E D A) to serve as its Executive Director until the first regular E D A meeting conducted
in 2020.
That term has now expired and it would be appropriate for the E D A to designate an Executive Director for the
year 2020.
RE C O M M E ND E D AC T I O N:
By Motion: Designate Community Development Director John Stark as the Economic Development
Authority Executive Director until the first regular meeting is conducted by the Economic Development
Authority in 2021.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
I n September 2018, Community Development Director J ohn Stark was appointed as the E D A
Executive Director.
Prior to that point, the Richfield City Manager had served as its Executive Director.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Bylaws of the Richfield E D A require the designation of an Executive Director.
C.C R IT IC AL T IMIN G IS S U E S:
The term of the current Executive Director will terminate on J anuary 21, 2020.
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
The Bylaws of the Richfield E D A require the designation of an Executive Director.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Appoint Community Development Director J ohn Stark as Executive Director of the Richfield E D A for a
longer period (the E D A Bylaws do not stipulate the term of appointment).
Appoint someone else as the E D A Executive Director.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Community Development Director J ohn Stark
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #4.
S TAFF REPORT NO. 6
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: J ohn S tark, E xecutive D irector
O THE R D E PA RTM E NT RE V IE W: K atie Rodriguez, C ity Manager
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/13/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Authorize the Economic Development Authority Executive Director to approve expenditures and
approve and execute professional service agreements/contracts in an amount up to $50,000.
E X E C UT IV E S UM M ARY:
I n the day-to-day business of administering the Economic Development Authority (E D A), there are frequently
agreements/contracts to be approved and/or invoices to be paid for professional services and other
contractual arrangements. To the best of staffs' knowledge there is no formal guideline to differentiate which
contracts/invoices staff has the authority to approve versus those requiring formal E D A pre-authorization.
Currently, therefore, staff uses its discretion on which of these contracts or invoices should be preapproved
by the Board of the E D A.
The City of Richfield has a policy stating that the City Manager has authority to approve contracts or
purchases of up to $175,000 and that any such expense over $175,000 must be approved by the City
Council.
Staff is suggesting a similar, albeit scaled-back, policy to be adopted by the E D A in which the Executive
Director would have the authority to approve expenditures, contracts and/or agreements of up to $50,000
without pre-approval of the E D A Board. All expenses of the E D A are reported to the Board, after
expenditure, in the form of the Approval of Claims by the E D A at each of its regular meetings.
RE C O M M E ND E D AC T I O N:
By Motion: Approve a resolution authorizing the Economic Development Authority Executive Director
to approve expenditures and approve and execute professional service agreements/contracts in an
amount up to $50,000.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Staff is unaware of any existing E D A approval/expenditure policy;
I n the past, the E D A staff has used its discretion in determining which contracts and/or
expenditures should go before the E D A Board.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The City of Richfield allows its City Manager the discretion to approve expenditures and contracts
of up to $175,000.
C.C R IT IC AL T IMIN G IS S U E S:
None
D.F IN AN C IAL IMPAC T:
Any expenditure, professional service agreement or contract approved by the E D A would be
within the limits of the E D A budget.
E.L E GAL C ON S ID E R AT ION:
All professional service agreements/contracts are either prepared by or reviewed by legal counsel.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Authorize the Executive Director to approve expenditures, professional service agreements/contracts
up to a lesser amount.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. ______
RESOLUTION DELEGATING EXECUTIVE DIRECTOR TO EXECUTE CERTAIN
DOCUMENTS AND AUTHORIZE EXPENDITURES ON BEHALF OF THE RICHFIELD
ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS, the Richfield Economic Development Authority (the “Authority”) was established by
the City of Richfield, Minnesota (the “City”) in 2017 to promote and to provide incentives for economic
development in the City; and
WHEREAS,the President (or his or her designee) of the Authority and the Executive Director of the
Authority execute all documents and contracts on behalf of the Authority for which action has been taken;
and
WHEREAS,the Authority has determined to authorize the Executive Director of the Authority to
approve and execute documents or agreements on behalf of the Authority related to the routine business of
the Authority or related to projects approved by the Board of Commissioners of the Authority (the “Board”)
and potential future projects, including but not limited to professional services agreements,nondisclosure
agreements, right of entry agreements, and consultant agreements, so long as such documents or agreements
do not provide for the expenditure of funds in an aggregate amount of more than $50,000, all without prior
action by the Authority; and
WHEREAS, the Authority has also determined to authorize the Executive Director of the Authority
to approve expenditures of funds in a maximum aggregate amount of $50,000 without prior action by the
Authority; and
WHEREAS,the Authority finds that the execution and approval of documents or agreements by the
Executive Director and the expenditures of funds by the Executive Director as described herein will be
beneficial to the affairs of the Authority; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Richfield
Economic Development Authority as follows:
1.The approval and execution of the documents and agreements and the expenditure of funds
on behalf of the Authority as described herein is hereby authorized and delegated to the Executive Director of
the Authority.
2.All documents and agreements executed by the Executive Director of the Authority pursuant
to the authority delegated by this resolution shall be reported to the Board.
3.All expenditures shall be reported to the Board, after expenditure, in the form of the
Approval of Claims by the Authority at each of its regular meetings.
4.This resolution shall be in full force and effect as of the date hereof.
Adopted by the Richfield Economic Development Authority this 21st day of January, 2020.
_______________,President
___________________,Secretary
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #5.
S TAFF REPORT NO. 7
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: J ohn S tark, E xecutive D irector
O THE R D E PA RTM E NT RE V IE W: K atie Rodriguez, C ity Manager
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/14/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the creation of an Energy Efficient Business Grant.
E X E C UT IV E S UM M ARY:
The Richfield Economic Development Authority (E D A) has been budgeting funds for "Business Assistance"
programming since its inception in 2018. Based on staff's recommendation, however, these funds have been
accumulating instead of being expended in order to create an adequate source of funding for programs.
At the October 21, 2019 E D A work session, staff proposed a number of programs recommended for
implementation in 2020. Among these was an Energy Efficient Business Grant (Grant) program. This Grant
would provide an incentive for Richfield businesses to participate in several programs administered by the
Center for Energy and the Environment (C E E) intended to help businesses save both money and natural
resources by making energy efficient upgrades. The C E E programs work with, and receive funding
from, metro area utility companies as well. Specifically, the C E E programs focus on:
Lighting Efficiency, Refrigeration, and Rooftop Units (see attached handouts).
Staff is proposing that the E D A provide a grant to cover 20% of the cost of installation of qualified energy
efficient upgrades for Richfield businesses in a maximum amount of up to $2,500 per business. I n the first
year, staff is contemplating a budget of $20,000 for the grants plus $1,000 for marketing the program. This
would allow at least eight Richfield businesses to participate.
The details of how C E E would administer this program are outlined in the attached Memorandum of
Understanding (MOU).
RE C O M M E ND E D AC T I O N:
By Motion: Approve a Memorandum of Understanding with the Center for Energy and the
Environment for the use of $21,000 of Economic Development Authority funds for the implementation
of an Energy Efficient Business Grant.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The Richfield E D A was founded in J anuary 2018.
Since its inception the E D A has been budgeting funds for business development activities.
The E D A supported the concept of an Energy Efficient Business Grant at its October 21, 2019
work session.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed Grant program is an appropriate activity for an E D A as defined in Minnesota State
Statutes.
C.C R IT IC AL T IMIN G IS S U E S:
N/A
D.F IN AN C IAL IMPAC T:
The E D A budget was approved including:
2018: $75,000
2019: $95,000
2020: $95,000
To date, none of the funds set aside for Business Assistance have been expended.
E.L E GAL C ON S ID E R AT ION:
Legal counsel from Kennedy and Graven have reviewed the attached Memorandum of Understanding.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Approve a modified version of the Energy Efficient Business Grant.
Do not approve.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Staff from the Center for Energy and the Environment.
AT TAC H ME N T S:
D escription Type
C E E - Memorandum of Understanding C ontract/A greement
C E E P rogram handouts B ackup Material
CEE- Richfield MOU #3175
MEMORANDUM OF UNDERSTANDING
Between: Center for Energy and Environment and the Richfield Economic Development Authority
Re: Additional Rebates for Completed Energy Efficiency Upgrades
Date: January 13, 2020
This Memorandum of Understanding (MOU) stipulates the intentions of Center for Energy and
Environment (CEE) and the Richfield Economic Development Authority (EDA), collectively the Parties, to
collaborate on the abovementioned additional rebate program. This MOU is effective as of January 1,
2020 and ends on December 31, 2020. The MOU can be cancelled by either party with 30 days written
notice to the enclosed representatives.
Services
The EDA has earmarked funds for business owners who own businesses in the City of Richfield who
complete upgrades through the One-Stop Efficiency Shop® or Xcel Energy’s Commercial Refrigeration
program. If a business follows through on making rebate qualifying upgrades, CEE will provide the
business with a form to send into the EDA to receive its additional rebate.
The EDA has agreed to offer additional rebates of 20% of the cost of rebated measures up to $2,500 to be
paid upon completion of the upgrades.* The EDA will cut the check and send to the business.
* If participating business installs a case as a part of the Refrigeration Program and all we're rebating is a
component of the case, and not the entire case, the business will receive the applicable component rebate.
Additional EDA funds will be based on the cost of the component not the case.
CEE Obligations
• CEE will work with the EDA to market the program offerings to businesses within the City of
Richfield
• CEE will carry out audits to qualifying businesses within the City of Richfield as a part of the One-
Stop Efficiency Shop and Xcel Energy Commercial Refrigeration programs
• Assessments will include information about the EDA’s additional rebate offering
• CEE will complete all paperwork for participating businesses as is already standard through
program practice
• Once business completes the qualifying upgrade, CEE will send the EDA form to the business to
submit for additional EDA rebate
EDA Obligations
• The EDA shall assist in marketing the program offering to businesses within the City of Richfield
• The EDA will provide an additional rebate to businesses of 20% of the cost of program eligible
energy efficiency measures in an amount of up to $2500.
CEE- Richfield MOU #3175
• The EDA will cut checks to qualifying businesses once a form requesting the rebate has been
received
Budget
A total of $20,000 is available from the EDA for rebates through December 31, 2020 under this MOU.
Release/Waiver/Indemnification
The parties agree that each shall be responsible for its own acts, errors and omissions and those of its
officers, directors, employees and agents, as well as any representations, warranties and agreements,
made in the performance of this MOU, and neither CEE nor the EDA will be liable in any way for the
activities of the other party or the other party’s officers, directors, employees and agents arising out of or
in connection with: (a) any failure to perform any of the terms, covenants or conditions of this
Agreement; (b) any act, error, omission, misrepresentation or misconduct; (c) the failure to comply with
any applicable laws, rules or regulations; or (d) any accidents, claims, damages, losses, injuries or
expenses.
Contact Information
CEE:
Ashley Robertson
612.335.5869
arobertson@mncee.org
212 3rd Avenue N, Suite 560
Minneapolis, MN 55401
Richfield Economic Development Authority
John Stark
612.861.9775
jstark@richfieldmn.gov
6700 Portland Ave S
Richfield, MN 55423
CEE- Richfield MOU #3175
Center for Energy and Environment
By: __________________________________ Title: _______________________________
Date: _________________________________
Richfield Economic Development Authority
By: __________________________________ Title: President
Date: _________________________________
By: __________________________________ Title: Executive Director
Date: _________________________________
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #6.
S TAFF REPORT NO. 8
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
1/21/2020
RE P O RT P RE PA RE D B Y: J ohn S tark, E xecutive D irector
O THE R D E PA RTM E NT RE V IE W: K atie Rodriguez, C ity Manager
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/15/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the creation of a Small Business Revolving Loan Fund Program for Richfield businesses.
E X E C UT IV E S UM M ARY:
The Richfield Economic Development Authority (E D A) has been budgeting funds for "Business Assistance"
programming since its inception in 2018. Based on staff's recommendation, however, these funds have been
accumulating instead of being expended in order to create an adequate source of funding for programs.
At the October 21, 2019 E D A work session, staff proposed a number of programs recommended for
implementation in 2020. Among these was the creation of a Small Business Revolving Loan Fund for
Richfield businesses. Lee Hall, the Chief Operating Officer for the Metropolitan Consortium of Community
Developers (MC C D) attended the October 21 work session and discussed MC C D's ability to help a
community establish and administer a revolving loan program for local businesses. The E D A already works
with MC C D as a participant in its Open to Business program.
Based on the outcome of the work session and ongoing discussions with MC C D, staff is proposing that the
E D A establish a Small Business Revolving Loan Fund Program (Program). As proposed, MC C D would
underwrite and administer loans for businesses located in Richfield. MC C D recommends that the
underwriting criteria should be a little more lenient than typical loans that a business would get from a large
bank, but the interest rate should be marginally higher to compensate for the increased lending risk. Staff is
proposing that the E D A provide a maximum contribution of $15,000 to the loan and the MC C D would match,
or exceed, the E D A's participation in the loan. Staff's recommendation is that no more than 25% of any loan
issued under this program be used for operating costs (with the remainder being used for capital/equipment
costs).
For 2020, staff would consider this a "pilot" program and is recommending that $60,000 be deposited with
MC C D (in accordance with the attached Contract) for dispersal to loan recipients and an additional $1,250
be budgeted for marketing of the program. There are no costs associated with MC C D's administration and
underwriting of the loans as they charge an industry-standard loan origination fee to the borrower to cover
their costs. MC C D states that a typical loan has a term of 5 years. The E D A would earn back approximately
$3,900 per year on a 5 year loan of $15,000. These funds would be reused (or "revolved") for future loans.
RE C O M M E ND E D AC T I O N:
By motion:
1. Approve the use of $61,250 of Economic Development Authority funds for the implementation of
a Small Business Revolving Loan Fund Program, and;
2. Approve a Contract with the Metropolitan Consortium of Community Developers for the
administration of a Small Business Revolving Loan Fund Program for Richfield businesses.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The Richfield E D A was founded in J anuary 2018.
Since its inception the E D A has been budgeting funds for Business Development activities.
The E D A supported the concept of a Small Business Revolving Loan Fund Program for Richfield
businesses at its October 21, 2019 work session.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed grant program is an appropriate activity for an E D A as defined in Minnesota State
Statutes.
C.C R IT IC AL T IMIN G IS S U E S:
N/A
D.F IN AN C IAL IMPAC T:
The E D A budget was approved including:
2018: $75,000
2019: $95,000
2020: $95,000
To date, none of the funds set aside for Business Assistance have been expended.
E.L E GAL C ON S ID E R AT ION:
Legal counsel from Kennedy and Graven have reviewed the attached Contract.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Approve a modified version of the Small Business Revolving Loan Fund Program for Richfield
businesses.
Do not approve.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Staff from the Metropolitan Consortium of Community Developers.
AT TAC H ME N T S:
D escription Type
C ontract with MC C D C ontract/A greement
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SMALL BUSINESS REVOLVING LOAN FUND
SERVICES AGREEMENT
BY AND BETWEEN THE
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
AND
THE METROPOLITAN CONSORTIUM OF
COMMUNITY DEVELOPERS
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SMALL BUSINESS REVOLVING LOAN FUND
SERVICES AGREEMENT
THIS AGREEMENT is entered into this _____ day of ____________ 2020 by and between the
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY (the “EDA”), and METROPOLITAN
CONSORTIUM OF COMMUNITY DEVELOPERS, a Minnesota nonprofit corporation (the “MCCD”).
WHEREAS, the EDA wishes to establish a revolving fund to support small business development
and growth within the City of Richfield; and
WHEREAS, MCCD is a Community Development Financial Institution and as the operator of
the Open to Business program in Hennepin County and the City of Richfield, has established lending
programs and infrastructure, and currently provides loans to small businesses within the City of Richfield.
WHEREAS, on January __, 2020, the EDA Board approved an extension of the City’s
partnership with MCCD/Open to Business to include MCCD’s management of EDA funds in the amount
of $60,000, for the purpose of providing and servicing small business loans; and
WHEREAS, MCCD has agreed to provide services as described in this Agreement;
NOW, THEREFORE, it is agreed between the parties hereto that:
SECTION I. PURPOSE
The purpose for entering into and making this Agreement is to establish the respective roles and
obligations of the EDA and MCCD in order to provide funding and an array of related services to
originate and service Small Business loans within the City of Richfield.
SECTION II. DEFINITIONS
The following terms shall have the following meanings:
Administrative Costs means loan origination and servicing costs incurred by MCCD with respect
to administering the Program.
Agreement means this agreement between the EDA and MCCD to fund, administer and provide
the origination, underwriting, closing and servicing of loans made through the Program.
Borrower means a recipient of a Loan under the Program.
Closing means the event where MCCD originates a Program Loan and the Borrower executes a
Note and any security instruments.
Contract Amount means the funds allocated by the EDA to MCCD to manage under the terms of
this agreement.
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EDA means Richfield Economic Development Authority, a political subdivision organized under
the laws of Minnesota.
Interest Income means any interest paid by Borrowers of Program Loans.
MCCD means Metropolitan Consortium of Community Developers, a Minnesota nonprofit
corporation.
Note means a promissory note by which the Borrower acknowledges its contractual obligation
to repay a Program Loan, substantially in the form of Exhibit B attached hereto or another form
approved by the EDA.
Program means the “Small Business Loan Program” as described in the Program Guidelines
attached hereto as Exhibit A.
Program Guidelines means the limitations, restrictions and obligations associated with the
Program described in Exhibit A attached hereto and incorporated herein by reference, which
may be modified from time to time by the EDA.
Program Income means any amounts that MCCD receives from payments or collections on
Program Loans including Borrower-paid interest and loan principal recovery.
Program Loan means a loan made through the Program consistent with the Program Guidelines
or any loan made by MCCD prior to the date of this Agreement.
Revolving Fund means a separate fund in MCCD’s accounting records where all Program Income
is to be credited.
Security Documents means the documents evidencing collateral for any Program Loan as
reasonably deemed necessary and prudent by MCCD.
SECTION III. SCOPE OF SERVICE
1. General. MCCD will collect Program Loan applications and originate and service the Program
Loans in compliance with the terms of this Agreement, the Program Guidelines, and federal, state
and local laws and regulations.
2. MCCD's Services. MCCD shall, at all times and with respect to all Program Loans, perform the
following services in a manner consistent with normal and prudent loan underwriting, origination
and servicing practices as follows:
(a) Information. MCCD will receive telephone and walk-in inquiries from, and provide
advice to, parties who seek information regarding the Program, including eligibility
limitations and permitted use of loan funds.
(b) Loan Processing. MCCD will create application forms for Program Loans. MCCD will
accept completed applications for Program Loans from potential Borrowers and verify
eligibility requirements including, but not limited to, credit history. MCCD will
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underwrite each application in compliance with MCCD’s small business loan underwriting
standards attached hereto as Exhibit D. MCCD will have the sole responsibility of
determining a potential Borrower’s credit risk. MCCD will originate the Program Loans
in the name of the EDA.
(c) Program Loan Closing. Each Program Loan shall be evidenced by a Note and secured
with collateral as deemed appropriate by MCCD staff.
(d) Program Funding. MCCD will use the Program Income to make additional Program
Loans. MCCD will be responsible for all Administrative Costs but may retain all
Origination Fees paid by Borrowers as compensation.
(e) Reporting Requirements. The reporting requirements related to this Agreement are
identified on the attached Exhibit C (the “Reporting Requirements”) and the format and
frequency of such reporting shall be as reasonably determined by the EDA. Failure to
comply with these reporting requirements is considered a material default and may result
in EDA termination of this Agreement in accordance with the terms of Section VIII.
SECTION IV. PROGRAM ADMINISTRATION
1. MCCD will keep all necessary books and records and pay all Administrative Costs incurred by
it in relation to the Program. MCCD shall segregate the obligations and expenditures related to
the Program. No part of the Contract Amount or Program Income shall be used for a purpose
other than that of making Loans as allowable under this Agreement.
2. MCCD shall observe and comply with the Program Guidelines for any new Program Loans and
all applicable laws, ordinances, and regulations of the City of Richfield, the State of Minnesota,
and the United States of America. Specifically, but not by way of limitation, MCCD agrees to
comply with all licensing and regulatory laws and regulations that apply to MCCD in its
capacity as making and servicing loans.
3. MCCD shall obtain the written consent of the EDA prior to subcontracting any activities under
this Agreement.
4. MCCD shall maintain Program Loan applicant and recipient data. Such data shall include, but
not be limited to, applicant and recipient name, address, and related loan underwriting data.
The data maintained by MCCD pursuant to this Section will be made available to the EDA
upon request.
5. MCCD understands that the use or disclosure of applicant or recipient data, when not directly
connected with the administration of the EDA or MCCD's responsibilities under this
Agreement, may be prohibited by the Minnesota Government Data Practices Act or other state
and federal laws and regulations on data privacy unless written consent is obtained from such
applicants and recipients. MCCD agrees to comply with the Minnesota Government Data
Practices Act and all other applicable state and federal laws relating to data privacy or
confidentiality. MCCD shall immediately report to the EDA any requests from third parties for
information relating to this agreement. The EDA agrees to promptly respond to inquiries from
MCCD concerning data requests. MCCD agrees to hold the EDA, its officers, department
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heads and employees harmless from any claims resulting from MCCD’s unlawful disclosure or
use of data protected under state and federal laws unless such disclosure was done at the
direction of the EDA.
6. MCCD shall notify the EDA of any 90-day delinquent Program Loans.
SECTION V. TIME OF PERFORMANCE
The time of performance of the services funded through this Agreement shall commence as of the 1st day
of March 2020 and shall continue until February 28, 2030, unless terminated earlier as provided in Section
VIII. Notwithstanding the termination of this Agreement for any reason, the responsibilities of MCCD to
the EDA shall not terminate until all closeout requirements specified under Section VIII have been
completed.
SECTION VI. DISBURSEMENT OF CONTRACT AMOUNT
1. It is agreed and expressly understood that the EDA shall disburse the full contract amount of
$60,000 to MCCD in connection with this Agreement prior to commencement of lending
activities, and that MCCD shall hold all contract funds and Program Income throughout the term
of this Agreement.
2. All Administrative Costs shall be borne by MCCD, but MCCD may retain all Borrower-paid fees,
including Loan Origination, as compensation.
SECTION VII. REVOLVING FUND; PROGRAM INCOME
MCCD shall maintain the Revolving Fund in trust for the EDA. All Program Income shall be deposited
into the Revolving Fund and used to originate additional Program Loans. MCCD shall account for the
Revolving Fund as a separate fund in its accounting records.
SECTION VIII. TERMINATION; TRANSFER OF BALANCES; REMEDIES.
1. Unless extended pursuant to an amendment executed by the parties, this Agreement shall
terminate as of February 28, 2030, or upon the termination of MCCD as a legal entity, or upon
termination of the EDA’s or Hennepin County’s contractual participation in MCCD’s Open to
Business program, or upon the failure of MCCD to satisfactorily perform the services required
herein as determined by the EDA. Either party may terminate this Agreement for any reason upon
giving sixty (60) days’ prior written notice of termination.
2. Upon termination of this Agreement, MCCD shall immediately transfer any Revolving Fund
balances, including any Program Income, to the EDA; shall execute and deliver such assignments,
files, and other documents as the EDA may deem necessary or desirable to close out the Program;
and shall provide the EDA with a final accounting. Activities during this close-out period shall
include, but are not limited to: making final payments, returning Program assets and income,
determining the custodianship of records, submission of a final report as required herein and
resolution of any audit findings.
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3. Upon termination, MCCD will continue to service all existing Program loans to their conclusion
as detailed in each Program Loan’s individual loan agreement and will remit to the EDA all
Program Income collected no less than 1 month from the date of receipt from Program Borrowers.
The EDA may, however, assume responsibility for loan serving, in which event MCCD shall
cooperate with the EDA in the transfer of loan servicing, and shall provide all data and files
needed by the EDA to service the loan(s).
It is expressly understood and agreed by the EDA that funds committed and deployed to
Borrowers as Program Loans are governed by the terms of each Borrower’s loan agreement, and
will remain committed for the duration of that Note. In the event this Agreement is severed,
MCCD shall be under no obligation to buy back these participations, or refinance the debt to free
EDA fund encumbrance.
4. The EDA shall be entitled, upon breach by MCCD, to any remedies available at law or in equity,
including but not limited to actions for damages and/or specific performance. In any action to
enforce or obtain any remedy with respect to this Agreement, the EDA shall be entitled to recover
reasonable attorneys' fees from MCCD.
SECTION IX. COOPERATION
MCCD and the EDA shall furnish all necessary information and support to the other party in carrying
out the intent of this Agreement. MCCD shall recommend to the EDA any changes in the Program
Guidelines, which may only be amended upon written agreement of the parties.
SECTION X. RELATIONSHIP OF THE PARTIES
1. Independent Contractor. MCCD shall be an independent contractor of the EDA. All personnel
required for the services undertaken by MCCD under this Agreement will be employees or
agents of MCCD and shall not, by virtue of their work on the Program, be deemed to be
employees of, nor have any contractual or agency relationship with the EDA, or the City of
Richfield. None of the work or services covered by this Agreement shall be subcontracted
without the prior written approval of the EDA.
2. Hold Harmless. MCCD agrees to defend, indemnify, and hold harmless the EDA and their
respective officers and employees, from any liability, claim, damage, cost, judgment, or
expense, including reasonable attorney’s fees, resulting directly or indirectly from any act or
omission of MCCD and its officers, employees, agents or contractors, while performing under
this Agreement, and against all losses claimed by a Borrower, any third party or MCCD by
reason of MCCD’s failure to perform, in any respect, all obligations under this Agreement.
Notwithstanding anything to the contrary in this Agreement, nothing herein shall be construed
to obligate MCCD to hold harmless, defend or indemnify the EDA from claims arising from
the EDA’s negligent acts or omissions.
SECTION XI. NOTICES
Communication and details concerning this Program shall be directed to the following contract
representatives:
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EDA: Richfield Economic Development Authority
6700 Portland Ave
Richfield, MN 55423
Attention: John Stark- Executive Director
MCCD: Metropolitan Consortium of Community Developers
3137 Chicago Ave. S.
Minneapolis, MN 55407
Attention: Lee Hall- Director of Lending & Technical Assistance
SECTION XII. EDA ADMINISTRATIVE REQUIREMENTS.
1. Workers’ Compensation and Liability Insurance – Prior to starting the services described herein,
MCCD shall provide evidence of and continually maintain throughout the term of this Agreement,
workers’ compensation insurance in accordance with statutory requirements. MCCD shall also
provide evidence of (including endorsements to policies) and continually maintain: (i)
commercial general liability insurance, which shall include contractual liability coverage; and (ii)
automobile insurance including hired/non-owned coverage, all in amounts no less than $1,000,000
per occurrence with aggregate coverage of $1,000,000. Said insurance policy(ies) shall name the
EDA as an additional insured. MCCD shall forward to the EDA any notices it receives of
cancellation of any of the above policies.
2. Accounting Standards – MCCD shall maintain the necessary source documentation and enforce
sufficient internal controls as dictated by normally accepted accounting practices to properly
account for expenses incurred under this Agreement.
3. Records
(a) Retention – MCCD shall retain all records pertinent to expenditures incurred under this
Agreement as directed by the EDA in accordance with the EDA’s Records Retention
Policy. Upon the termination of this Agreement, MCCD shall transfer the records to the
EDA or the EDA’s designee for its retention.
(b) Audits & Inspections – MCCD shall make available to the EDA and any EDA designee all
records regarding and matters covered by this Agreement whether held by MCCD or by a
subcontractor, at any time by appointment during normal business hours, as often as the
EDA deems necessary, to audit, examine, and make excerpts or transcripts of all relevant
data. Any deficiencies noted in audit reports must be fully cleared by MCCD within a
reasonable time period after a request has been received from the EDA.
SECTION XIII. MISCELLANEOUS.
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1. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Minnesota.
2. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which taken together shall constitute one and the same
Agreement.
3. No Discrimination. MCCD agrees not to discriminate in providing products and services under
this Agreement on the basis of race, color, sex, creed, national origin, disability, age, sexual
orientation, status with regard to public assistance, or religion. Violation of any part of this
provision may lead to immediate termination of this Agreement. MCCD agrees to comply with
Americans with Disabilities Act as amended (“ADA”), Section 504 of the Rehabilitation Act of
1973, and the Minnesota Human Rights Act, Minnesota Statutes, Chapter 363A. MCCD agrees to
hold harmless and indemnify the EDA and the City from costs, including but not limited to
damages, attorney's fees and staff time, in any action or proceeding brought alleging a violation of
these laws by the MCCD or its guests, invitees, members, officers, officials, agents, employees,
volunteers, representatives and subcontractors. Upon request, the MCCD shall provide
accommodation to allow individuals with disabilities to participate in all services under this
Agreement. MCCD agrees to utilize their own auxiliary aid or service in order to comply with
ADA requirements for effective communication with people with disabilities.
4. Entire Agreement. This Agreement, any attached exhibits and any addenda or amendments signed
by the parties shall constitute the entire agreement between the EDA and the MCCD and
supersedes any other written or oral agreements between the EDA and the MCCD. This
Agreement can only be modified in writing signed by the EDA and the MCCD. If there is any
conflict between the terms of this Agreement and referenced or attached items, the terms of this
Agreement shall prevail.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Signature pages follow.
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(Signature page to Small Business Revolving Loan Fund Services Agreement)
IN FURTHERANCE WHEREOF, the parties hereto have executed this Agreement as of the date
first written above.
RICHFIELD ECONOMIC DEVELOPMENT
AUTHORITY
By
Its President
By
Its Executive Director
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(Signature page to Small Business Revolving Loan Fund Services Agreement)
METROPOLITAN CONSORTIUM OF COMMUNITY
DEVELOPERS
By
_____________________________
Its
Federal Taxpayer ID#:
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LIST OF ATTACHED EXHIBITS
Exhibit A Program Guidelines
Exhibit B Note
Exhibit C Reporting Requirements
Exhibit D MCCD’s Small Business Loan Underwriting Standards
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EXHIBIT A
Small Business Revolving Loan Fund
Program Guidelines
Purpose To provide affordable financing to small Richfield neighborhood retail, service and light
manufacturing businesses that are not able to obtain adequate financing from traditional financing sources.
Program Structure The Small Business Revolving Loan Fund (SBRLF) will provide EDA financing in
partnership with MCCD’s other lending programs. The Metropolitan Consortium of Community
Developers (MCCD), referred to as “Lender” will administer the Borrower. All Program Loans will be
made in the name of the Richfield Economic Development Authority.
Loan amount The maximum amount of a SBRLF loan will be the lesser of 50% of total financing
approved and provided to the Borrower by MCCD, or $15,000.
Term The term will normally be between three and five years, and will be matched to the purpose of the
loan. The maximum term will be ten years. The loan will usually be fully amortizing, but may be
structured differently on a case by case basis.
Interest Rate MCCD shall at its sole discretion determine the interest rate of individual Borrower loans
based on a number of factors, including credit risk, loan term, collateral, and usage; Typically the rate will
fall between 2-4% above the WSJ published Prime rate.
Eligible uses Loan Proceeds can be used to finance the acquisition and/or improvement of physical
assets, including building acquisition and improvements, equipment, furniture and fixtures, and inventory.
Up to 25% of Loan Proceeds may be used to finance operating costs and working capital. Refinancing of
existing debt is not an eligible use.
Eligible Applicants The applicant must be a for-profit business located in the geographic boundaries of
the City of Richfield. The applicant must have the ability to repay the loan and be an acceptable credit
risk as determined by Lender. If the loan is to acquire or make improvements to a building the applicant
must:
Be in compliance with all city code/licensing with no building or health code violations
Meet Richfield city code for all rehab work or equipment installation
Use contractors licensed in Richfield
An applicant’s property status must be a conforming use or a legal non-conforming use
under the City’s Zoning Ordinance
Underwriting Loans must comply with the Lender’s small business loan underwriting standards. The
Lender shall have the sole responsibility of determining the applicant's credit risk through accessing a
credit bureau report and through any other type of investigation typically used or deemed necessary.
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Collateral The Lender shall determine the type and amount of collateral the Borrower will provide.
When participating with a traditional financing institution the Lender will normally be in a junior lien
position on collateral. The Lender shall file any liens required on collateral.
Origination and servicing The Lender will originate and service the loans. The Lender will credit the
principal and Interest of each payment received back into the loan pool. When participating with a private
lender in providing financing the private lender may sometimes originate and service the SBRLF loans on
behalf of the Lender.
Fees Lender will charge its standard application, closing and origination fees.
Recourse Should a business default and is not able to pay the Lender, the EDA will not hold the Lender
responsible for the loss of the defaulted loan funds. The Lender shall use all reasonable efforts to obtain
the full or partial repayment of defaulted loans through workouts, extensions, or foreclosure on collateral
provided by the business to secure the loan.