12-21-2020 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
V IR T U AL ME E TIN G H E L D V IA W E B E X
D E C E MB E R 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
A ttendance
Open F orum: Opportunity to address the E D A on items not on the A genda; dial phone number 612-8610651. A s you
call in, a moderator will assist you.
Approval of the Minutes
A pproval of the Regular E conomic D evelopment A uthority meeting minutes of October 19, 2020.
AG E N D A APPR O VAL
1.A pproval of the A genda
R E S O L U T IO N S
2.C onsideration of a resolution implementing a D isplaced B usiness Grant.
S taff Report No. 18
E D A D ISC U SSIO N IT E MS
3.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
4.E xecutive D irector's Report
C LAIMS AN D PAYR O L LS
5.C laims
6.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.
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
October 19, 2020
CALL TO ORDER
The meeting was called to order by President Supple at 7:53 p.m. via Webex.
EDA Members Mary Supple, President; Maria Regan Gonzalez; Sue Sandahl; and
Present: Erin Vrieze Daniels.
EDA Members Pat Elliott
Absent:
Staff Present: John Stark, Executive Director; Julie Urban, Housing Manager; and LaTonia
DuBois, Administrative Assistant.
OPEN FORUM
President Supple provided the phone number and instructions to call in for open forum. No
callers.
APPROVAL OF MINUTES
M/Vrieze Daniels, S/Regan Gonzalez to approve the minutes of the regular Economic
Development Authority meeting of September 21, 2020
Motion carried 4-0
Item #1
APPROVAL OF THE AGENDA
M/Vrieze Daniels, S/Sandahl to approve the agenda.
Motion carried 4-0
Item #2
AN AMENDMENT TO THE GUIDELINES FOR THE KIDS @ HOME PROGRAM TO
EXPAND PARTICIPATION IN CASES OF UNFORSEEN EVENTS CAUSING
FINANCIAL HARDSHIP. (S.R. NO. 17).
Housing Manager Urban presented Staff Report No. 17.
Commissioners Vrieze Daniels spoke of appreciation for the changes.
EDA Meeting Minutes -2- October 19, 2020
M/Sandahl, S/Regan Gonzales to amend the guidelines of the Kids @ Home Program to
expand participation and/or allow flexibility in the work requirement due to unforeseen events that
cause financial hardship.
Commissioner Sandahl offered kudos to Susan Rosenberg for implementation of the
program 15 years ago and for all commissioners who supported the program.
President Supple thanked staff for being flexible and finding ways to help people during
difficult times.
Motion carried 4-0
Item #5
EDA DISCUSSION ITEMS
Commissioner Vreize Daniels inquired about the second round of Covid Small Business
Loans.
Executive Director Stark provided an update on the Covid Small Business Loan and
applications received to date. Executive Director Stark provided information on changes made to
the guidelines for the Covid Business Loans, the possibility of loans being forgiven, and deadlines.
Item #6
EXUCTIVE DIRECTOR’S REPORT
Provided during EDA Discussion.
Item #
CLAIMS
M/Vrieze Daniels, S/Regan Gonzalez that the following claims be approved:
U.S. BANK 10/19/2020
EDA Checks: 20502-20516 $9,588.76
TOTAL $9,588.76
Motion carried 4-0
Item #8
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:08 p.m.
Date Approved: December 21, 2020
Mary B. Supple
President
LaTonia DuBois John Stark
Administrative Assistant Executive Director
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
S TAFF REPORT NO. 18
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
12/21/2020
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
12/16/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of a resolution implementing a Displaced Business Grant.
E X E C UT IV E S UM M ARY:
On March 16, 2020, the Richfield Economic Development Authority (E D A) discussed the creation of a
Displaced Business Grant. At that meeting E D A Commissioners agreed that they wanted to ensure
that funding is made available to businesses that are displaced as a result of redevelopment projects
that receive funding from the City of Richfield, the Richfield Housing and Redevelopment Authority
(H R A) or the Richfield E D A. In some cases, that funding will be provided by the developer as
formal "Relocation Benefits" as proscribed by the Uniform Relocation Act (U R A). In some cases,
however, the timing and nature of a developers actions to purchase a property and redevelop it does
not legally obligate the developer to provide any such relocation benefits. In these instances, the
EDA's Displaced Business Grant would offer some degree of assistance.
The implementation of creating the Displaced Business Grant was ceased in late March when it became
evident that the most pressing need for E D A business assistance was related to the C OV I D pandemic. At this
time, however, there is a potential that businesses could be displaced by redevelopment in the coming months
and staff believes it is important to have this Displaced Business Grant program in place so that affected
businesses could be made aware of available funding before beginning their search for a replacement
location.
Other than the per business funding, staff is continuing to recommend the same guidelines that were
proposed by staff, and generally agreed upon by the E D A, in March. The recommended funding, however,
has been slightly increased (from a maximum of $3,000 per business to a maximum of $3,600 per business).
The recommended guidelines are as follows:
Eligibility
Businesses must be required to move due to the approval of a redevelopment project that is receiving at
least $100,000 in funding from the Richfield HRA or E D A pursuant to a Development Agreement
executed by the developer and either the E D A or HRA (not a Preliminary Development Agreement);
I n order to receive funding, the business must have been in place at least three months prior to signing
of Development Agreement (and 1 year prior in order to receive full funding);
The business must relocate within Richfield’s corporate boundary;
The business must be open for business within six months of displacement from former location.
The business must provide a valid lease (or other similar documentation) from the property from which
it is being displaced.
The business must provide an Employer I dentification Number (E I N) assigned by the U.S. Department
of Revenue.
Funding
Up to $3,600 in total grant funding comprised of:
Up-front payment for 1 year of increased lease rate (based on documentation of most recent
lease rate from location of displacement and a signed copy of lease with replacement
location); and/or,
Reimbursement for actual moving costs, fixture installation and/or signage costs (copies of
paid invoices required);
I f the business has received Relocation Assistance under the Uniform Relocation and Real Property
Acquisition Act, it cannot receive assistance under this grant program for the same costs paid with
relocation assistance;
Businesses in place for less than 1 year (but more than 3 months) could receive 8.33% of the above
payments for each month they were open to the public at the subject property prior to the HRA’s formal
approval of the Development Agreement.
Grant recipients are responsible for determining the tax liability, if any, of receiving this grant.
RE C O M M E ND E D AC T I O N:
By motion: Approve a resolution implementing a Displaced 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 a Displaced Business Grant for Richfield businesses at its
October 21, 2019 work session and, at its March 16, 2020 meeting directed staff to formalize
grant guidelines and procedures for E D A consideration at a future meeting (originally intended to
occur in April).
At the April 20, 2020 Meeting the E D A decided to pause other Business Development activities to
focus on providing funding to businesses impacted by C OV I D-19.
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:
As proposed the Displaced Business Grant could cost up to $40,000 related to the acquisition of a
building with 11 commercial tenants.
The E D A's 2021 budget includes $40,000 for the Displaced Business Grant.
E.L E GAL C ON S ID E R AT ION:
J ulie Eddington, the E D A's legal counsel from Kennedy and Graven, has reviewed the proposed
program guidelines.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Provide staff with amended program guidelines or funding amounts to analyze prior to formal E D A
consideration at a later date.
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 IMPLEMENTING A DISPLACED BUSINESS GRANT PROGRAM
WHEREAS, pursuant to a resolution adopted by the City Council of the City of Richfield, Minnesota
(the “City”), the City established the Richfield Economic Development Authority (the “City”) to promote and
to provide incentives for economic development in the City; and
WHEREAS, the Authority has determined a need to provide financial assistance to businesses
located within the City that are displaced due to redevelopment projects that receive funding from the City,
the Authority, or the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota; and
WHEREAS, the Authority proposes to create the Displaced Business Grant Program (the “Grant
Program”) to assist area businesses with the expenses incurred and specifically caused by displacement or
relocation resulting from redevelopment projects; and
WHEREAS, the Grant Program is expected to be funded in an amount of up to $40,000; and
WHEREAS, guidelines for the Grant Program are on file with the Executive Director and have been
presented before the Board of Commissioners of the Authority; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Richfield
Economic Development Authority as follows:
1. The implementation of the Grant Program by the Authority is hereby approved.
2. 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 December, 2020.
Mary B. Supple, President
John Stark, Executive Director