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03202023 EDA AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS MARCH 20, 2023 7:15 PM (IMMEDI ATE LY FOLLOWING THE HRA MEETING) Call to Order Oath of Office Richfield Economic Development Authority, Commissioner Hayford Oleary. Oath of Office Richfield Economic Development Authority, Commissioner Supple. Consider the election of officers for the Richfield Economic Development Authority for 2023. Staff Report No. 1 Open Forum Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the EDA. Please refer to the EDA agenda and minutes web page for additional ways to submit comments. You may also call 612-861-9764 or email ldubois@richfieldmn.gov with questions. Call into the open forum by dialing 1-415-655-0001 Use webinar access code: 2463 428 6730 and password: 1234. Appr oval of t he M inut es Approval of the minutes of the 1) Regular Economic Development Authority meeting of December 19, 2022; and 2) the Economic Development Authority work session of January 17, 2023. AGENDA APPROVAL 1. Approval of the Agenda 2.Consent Calendar contains several separate items which are acted upon by the EDA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further EDA action on these items is necessary. However, any EDA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for EDA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consider resolutions designating official depositories for the Economic Development Authority for 2023, including the approval of collateral. Staff Report No. 2 3. Consideration of items, if any, removed from Consent Calendar OTHER BUSINESS 4. Designation of Community Development Director Melissa Poehlman as the Executive Director of the Richfield Economic Development Authority for 2023. Staff Report No. 3 EDA DISCUSSION ITEMS 5. EDA Discussion Items EXECUTIVE DIRECTOR REPORT 6.Executive Director's Report CLAIMS 7.Claims 8.Adjournment 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 612-861-9739. 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 3/20/2023 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: Melissa P oehlman, E xecutive D irector 3/8/2023 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 2023. 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 March. The Bylaws further provide that the E D A elect the President, Treasurer, and Secretary annually. Officers for 2022 were: Mary Supple, President Erin Vrieze Daniels - Vice President Maria Regan Gonzalez, Treasurer Kari Sinning, Secretary (not required to be an E D A Commissioner) Kumud Verma, Assistant Treasurer (not required to be an E D A Commissioner) The office of the Secretary states that they shall keep the minutes and maintain the records of the E D A. Staff recommends that City Clerk Dustin Leslie be appointed as the Secretary of the E D A. The office of the Assistant Treasurer has historically been held by the Finance Director. Staff recommends that Finance Director, Kumud Verma be appointed as the Assistant Treasurer. 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 2023. 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: The E D A Bylaws require that an election of officers be held at the annual meeting in March. 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 December 19, 2022 CALL TO ORDER The meeting was called to order by President Supple at 7:19 p.m. in the Council Chambers. EDA Members Present: Mary Supple, President; Erin Vrieze Daniels; Lee Ohnesorge and Gordon Hanson EDA Members Absent: Maria Regan Gonzalez Staff Present: Melissa Poehlman, Executive Director/Community Development Director; LaTonia DuBois, Administrative Assistant; and Kamud Verma, Finance Manager. OPEN FORUM President Supple provided instructions to call in for the open forum and there were no participants. APPROVAL OF THE MINUTES M/Vrieze Daniels, S/Ohnesorge to approve the regular Economic Development Authority meeting minutes of August 15, 2022. Motion carried: 4-0 ITEM #1 APPROVAL OF THE AGENDA M/Vrieze Daniels, S/Hanson to approve the agenda. Motion carried: 4-0 ITEM #2 CONSIDER THE ELECTION OF FINANCE MANAGER KUMUD VERMA AS ECONOMIC DEVELOPMENT AUTHORITY ASSISTANT TREASURER. (STAFF REPORT NO. 9) Executive Director Poehlman presented Staff Report No. 9 EDA Meeting Minutes -2- December 19, 2022 M/Vrieze Daniels, S/Ohnesorge to elect Finance Manager Kumud Verma as the Economic Development Authority Assistant Treasurer. Motion carried: 4-0 ITEM #3 INTRODUCTION TO HENNEPIN COUNTY ELEVATE BUSINESS PROGRAM. CONSIDERATION OF A PRELIMINARY LETTER OF SUPPORT AND INTENT TO PARTNER. (STAFF REPORT NO. 10) Executive Director Poehlman presented Staff Report No. 10 Commissioner Vrieze Daniels requested clarification about the program. Executive Director Poehlman explained the specifics. Commissioner Vrieze Daniels inquired about how this program is different from the open to business program. Executive Director Poehlman explained what would change in relation to open to business navigator component. Commissioner Hanson expressed excitement about the program. President Supple applauded the program. M/Hanson, S/Ohnesorge to direct staff to prepare and submit a preliminary letter of support and financial commitment for partnership with Hennepin County in the Elevate Business Program. Motion carried: 4-0 ITEM #4 EDA DISCUSSION ITEMS President Supple inquired about the Economic Development manager hiring status and upcoming Economic Development report. Executive Director Poehlman provided an update on the timeline for the hiring of the Economic Development manager. ITEM #5 EXECUTIVE DIRECTOR REPORT No report. ITEM #6 CLAIMS M/Vrieze Daniels, S/Hanson that the following claims be approved: U.S. BANK 9/19/2022 EDA Checks: 20875 – 20887 $29,750.00 TOTAL $29,750.00 EDA Meeting Minutes -3-December 19, 2022 U.S. BANK 10/17/2022 EDA Checks: 20888 – 20900 $29,057.50 TOTAL $29,057.50 U.S. BANK 11/21/2022 EDA Checks: 20901 - 20925 $15,842.67 TOTAL $15,842.67 U.S. BANK 12/19/2022 EDA Checks: 20817 – 20887 $23,767.97 TOTAL $23,767.97 Motion carried: 4-0 ITEM #7 ADJOURNMENT The meeting was adjourned by unanimous consent at 7:30 p.m. Date Approved: March 20, 2023 President LaTonia DuBois Melissa Poehlman Administrative Assistant Executive Director ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Economic Development Authority Work Session January 17, 2023 The work session was called to order by Vice President Vrieze Daniels at 5:45 p.m. in the Bartholomew Room. EDA Members Erin Vrieze Daniels, Vice President; Mary Supple, Lee Ohnesorge, Gordon Present: Hanson; and Sean Hayford Oleary Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant Community Development Director; and LaTonia DuBois, Administrative Assistant Others Present: John Stark, Enduring Cities Item #1 PRESENTATION OF PRELIMINARY RESULTS OF ECONOMIC DEVELOPMENT PROGRAMMING REVIEW. Executive Director Poehlman introduced John Stark, Enduring Cities John Stark presented the purpose of the Business Assistance Analysis and reviewed past and present Economic Development Authority (EDA) business assistance programs. Commissioner Supple inquired about spending limits of the EDA fund balance reserve. Vice President Vrieze Daniels inquired about state reimbursements due to the pandemic. Commissioner Hanson inquired about the underutilization of the displaced business grant program. John Stark reported on activity in peer cities’ business assistance, shared general goals of business assistance programming, and types of assistance that can be offered. Commissioners inquired about Sewer Availability Charge (SAC) fees charged to business upon startup. Commissioner Hayford Oleary inquired about surrounding cities’ grant funding programs. Commissioner Supple inquired about environment-based grants and loans. Vice President Vrieze Daniels inquired about ways to search for locally located businesses. CALL TO ORDER Commissioner Hayford Oleary expressed interest in SAC assistance and capital improvement programs. Vice President Vrieze Daniels expressed interest in finding out what obstacles deter businesses from operating in Richfield, or what causes businesses to leave and the desire to discover what the needs are of businesses. John Stark shared information on a small business survey that was offered on the Richfield website that will hopefully offer answers to some of Vice President Vrieze Daniels’ inquiry. There is an upcoming focus group to discuss the survey. Commissioner Hanson inquired about rent costs for business owners and how to keep costs affordable for small business owners to enable then to occupy spaces in new developments. Commissioner Supple offered support to all the suggested programs mentioned by Commissioners and stated desire for a shared office space, networking with local businesses and organizations and job creation. John Stark asked Commissioners if there were any programs mentioned they would not be interested in. Commissioner Hayford Oleary inquired if the need for co-working spaces had declined since the pandemic. Commissioner Hanson inquired about the different types of co-working spaces that currently exist. Vice President Vrieze Daniels inquired about how the city fits into current state and county programs. Vice President Vrieze Daniels shared information about a Hennepin County program that could be utilized to search for local businesses. John Stark shared the next steps in the process and that a report will be shared with the commission. Vice President Vrieze Daniels requested that John Stark include previous and current programs and their rates of utilization. Executive Director Poehlman shared the goal of hiring an Economic Development Manager to implement the programs that will be utilized by the EDA and that programs would be implemented individually and based on need. The work session was adjourned by unanimous consent at 6:55 p.m. Date Approved: March 20, 2023 ADJOURNMENT President LaTonia DuBois Melissa Poehlman 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 3/20/2023 RE P O RT P RE PA RE D B Y: K umud Verma, F inance Manager 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: Melissa P oehlman, E xecutive D irector 3/8/2023 I T E M F O R C O UNC IL C O NS ID E RAT I O N: Consider resolutions designating official depositories for the Economic Development Authority for 2023, 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 attached 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 Economic Development Authority 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 2023. 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., Principal Custody Solutions, Moreton Capital Markets, Pershing Wealth Solutions B NY Mellon 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 C ertain F inancial Institutions as D epositories for the E D A Resolution L etter Resolution D esignating US B ank a depository of funds for the E D A Resolution L etter Resolution D esignating C ertain S &L A ssociations, banks & credit unions as depositories Resolution L etter RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2023 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 2023. 2. The following financial institutions designated as depositories for the Economic Development Authority of Richfield funds: RBC Capital Markets Raymond James & Assoc. Principal Custody Solutions 4M Fund Northland Securities, Inc. Oppenheimer & Co. Moreton Capital Markets Pershing Wealth Solutions BNY Mellon 3. The Finance Manager 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 Manager’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 20th day of March, 2023. President ATTEST: Executive Director RESOLUTION NO. RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FOR THE YEAR 2023 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 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 20th day of March, 2023. President ATTEST: Executive Director 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 2023 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 2023. 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 Manager 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 Manager. Such deposits may be made and withdrawn from time to time by the Finance Manager 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 20th day of March, 2023. President ATTEST: Executive Director AGENDA SECTION:OTHER BUSINESS AGENDA ITEM #4. STAFF REPORT NO. 3 ECONOMIC DEVELOPMENT AUTHORITY MEETING 3/20/2023 LaTonia DuBois, Administrative AssistantREPORT PREPARED BY: OTHER DEPARTMENT RE VIEW: N/A EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director 3/7/2023 ITEM FOR COUNCIL CONSIDERATION: Designation of Community Development Director Melissa Poehlman as the Executive Director of the Richfield Economic Development Authority for 2023. EXECUTIVE SUMMARY: On February 23, 2022 Community Development Director, Melissa Poehlman was appointed as the Economic Development Authority (EDA) Executive Director until the regular EDA meeting in March 2023. That term has now expired and it would be appropriate for the EDA to designate an Executive Director for the year 2023. RECOMMENDED ACTION: By motion: Designate Community Development Director Melissa Poehlman as the Richfield Economic Development Authority Executive Director until the March 2024 regular meeting is conducted by the Economic Development Authority. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT See Executive Summary B.POLICIES (resolutions, ordinances, regulations, statutes, etc): The Bylaws of the Richfield EDA require the designation of an Executive Director. C.CRITICAL TIMING ISSUES: Executive Director Poehlman's term has now expired and a new Executive Director must be appointed in order to conduct regular EDA business. D.FINANCIAL IMPACT: N/A E.LEGAL CONSIDERATION: The Bylaws of the Richfield EDA require the designation of an Executive Director. ALTERNATIVE RECOMMENDATION(S): Appoint Community Development Director Melissa Poehlman as Executive Director of the Richfield EDA for a longer period (the EDA 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: N/A