031824 EDA AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
MARCH 18, 2024
7:15 PM (IMMEDIATELY FOLLOWING THE HRA MEETING)
Call to Order
Gordon Hanson Oath of Office
Consider the election of officers for the Richfield Economic Development Authority for 2024.
Staff Report No. 2
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. Call into the open forum by dialing 1-415-655-0001 use webinar
access code: 2632 548 1687 and password: 1234.
Appr oval of t he M inut es
Approval of the minutes of the Regular Economic Development Authority meeting of February 20, 2024.
PRESENTATIONS
1. Overview of the Elevate Hennepin program.
Staff Report No. 3
AGENDA APPROVAL
2. Approval of the Agenda
3.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 2024,
including the approval of collateral.
Staff Report No. 4
B. Consideration of an Agreement with the Center for Energy and Environment to administer the Apartment
Remodeling Program.
Staff Report No. 5
4. Consideration of items, if any, removed from Consent Calendar
O T H E R B U S IN E S S
5.D esignation of C ommunity D evelopment D irector Melissa P oehlman as the E xecutive D irector of the Richfield
E conomic D evelopment A uthority.
S taff Report No. 6
E D A D ISC U SSIO N IT E MS
6.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
7.E xecutive D irector's Report
C LAIMS AN D PAYR O L LS
8.C laims
9.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 612-861-9739.
AGENDA SECTION:Call to Order
AGENDA ITEM #
STAFF REPORT NO. 2
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
3/18/2024
REPORT PREPARED BY: LaTonia DuBois, Administrative Assistant
OTHER DEPARTMENT REVIEW: N/A
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
3/8/2023
ITEM FOR COUNCIL CONSIDERATION:
Consider the election of officers for the Richfield Economic Development Authority for 2024.
EXECUTIVE SUMMARY:
The Bylaws of the Richfield Economic Development Authority (EDA) provide that the EDA hold an annual
meeting in March. The Bylaws further provide that the EDA elect the President, Treasurer, and Secretary
annually.
Officers for 2023 were:
Erin Vrieze Daniels, President
Gordon Hanson - Vice President
Sean Hayford Oleary, Treasurer
Dustin Leslie, Secretary (not required to be an EDA Commissioner)
Kumud Verma, Assistant Treasurer (not required to be an EDA Commissioner)
RECOMMENDED ACTION:
By motion: Elect officers for the Richfield Economic Development Authority for 2024.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
Provided in the Executive Summary.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
None
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The EDA Bylaws provide for the election of officers.
D.CRITICAL TIMING ISSUES:
The EDA Bylaws require that an election of officers be held at the annual meeting in March.
E.FINANCIAL IMPACT:
None
F.LEGAL CONSIDERATION:
None
ALTERNATIVE RECOMMENDATION(S):
None
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
February 20, 2024
CALL TO ORDER
The meeting was called to order by President Vrieze Daniels at 7:24 p.m. in the Council
Chambers.
EDA Members
Present:
Erin Vrieze Daniels, President; Sean Hayford Oleary; Mary Supple; John
Young; and Gordon Hanson
EDA Members
Absent:
None
Staff Present: Julie Urban, Assistant Community Development Director; Jan Youngquist,
Economic Development Manager; Dustin Leslie, City Clerk
OPEN FORUM
President Vrieze Daniels gave instructions on how to participate in the open forum. No one
spoke.
APPROVAL OF THE MINUTES
M/Young, S/Hayford Oleary to approve the regular Economic Development Authority
meeting minutes of October 16, 2023.
Motion carried: 5-0
ITEM #1 APPROVAL OF THE AGENDA
M/Hayford Oleary, S/Supple to approve the agenda.
Motion carried: 5-0
EDA Meeting Minutes -2-February 20, 2024
ITEM #2 CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING FOR THE
CONTINUED PARTNERSHIP WITH THE CENTER FOR ENERGY AND THE
ENVIRONMENT IN ADMINISTERING THE RICHFIELD ENERGY EFFICIENT
BUSINESS REBATE PROGRAM
Economic Development Manager Youngquist gave the report.
Commissioner Supple asked about a modification made to the MOU which would stated the
program would be available to businesses or commercial property owners. She asked if this would
exclude non-profits from participating. Youngquist stated staff looked at past recipients and noticed
schools and places of worship were receiving rebates. She further stated that since the program
was funded through taxpayers, it would be best to have the rebates available for property tax
paying parcels on advice from the city attorney.
President Vrieze Daniels stated this was a great program and was happy the city would
continue to offer it.
M/Supple, S/Young to approve a Memorandum of Understanding with the Center for
Energy and the Environment to provide professional services related to the administration of the
Richfield Energy Efficient Business Rebate Program.
Motion carried: 5-0
ITEM #3 EDA DISCUSSION ITEMS
None.
ITEM #4 EXECUTIVE DIRECTOR’S REPORT
No report.
ITEM #5 CLAIMS
M/Hanson, S/Supple that the following claims be approved:
U.S. BANK 11/20/2023
EDA Checks # 23378-23393 11,721.99
TOTAL $11,721.99
U.S. BANK 12/18/2023
EDA Checks # 23394-23411 55,217.50
TOTAL $55,217.50
U.S. BANK 1/16/2024
EDA Checks # 23412-23435 12,941.36
TOTAL $12,941.36
EDA Meeting Minutes -3-February 20, 2024
U.S. BANK 2/20/2024
EDA Checks # 23436-23453 26,144.00
TOTAL $26,144.00
Motion carried: 5-0
ITEM #7 ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:30 p.m.
Date Approved: March 18, 2024
Erin Vrieze Daniels
President
Dustin Leslie Melissa Poehlman
Secretary Executive Director
AGENDA SECTION:PRESENTATIONS
AGENDA ITEM #1.
STAFF REPORT NO. 3
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
3/18/2024
REPORT PREPARED BY: Jan Youngquist, Economic Development Manager
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Overview of the Elevate Hennepin program.
EXECUTIVE SUMMARY:
The Richfield Economic Development Authority (EDA) partners with Hennepin County on the Elevate
Hennepin program, which provides resources to support businesses and entrepreneurs as they plan to
launch, grow, and evolve.
Through this program, businesses in Richfield and other Hennepin County communities can access
no-cost professional advising, cohort learning, business events, and other resources to support their
business goals.
Elevate Hennepin has more than 30 professional businesses advisors under contract. Businesses can get up
to 25 hours of insight, technical assistance, or consulting from each advisor.
Staff from Hennepin County will provide an overview of the Elevate Hennepin program, including information
on its impact in Richfield.
RECOMMENDED ACTION:
None; this is an informational presentation.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
Elevate Hennepin (formerly known as Elevate Business) was started during the COVID-19 pandemic
as part of Hennepin County's economic relief and recovery efforts.
Elevate Hennepin has evolved and expanded its services since then, and has established partnerships
with local communities to help provide financial and promotional support for the program.
The EDA and Hennepin County entered into an Agreement for Elevate Hennepin Programming on
March 22, 2023.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Equity considerations
Elevate Hennepin includes professional advisor organizations that are women led, BIPOC led, and
provide culturally specific, multi-lingual services.
Strategic Plan considerations
By providing professional resources for business owners and entrepreneurs, Elevate Hennepin helps
Melissa Poehlman, Executive Director
3/13/2024
N/A
support the Strategic Plan outcomes of a vibrant downtown and a diverse, inclusive and thriving
hometown.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Minnesota Statute 383B.79 authorizes a multijurisdictional reinvestment program involving Hennepin
County and cities within Hennepin County. The multijurisdictional program may include plans for
economic development, as well as other reinvestment activities.
D.CRITICAL TIMING ISSUES:
None.
E.FINANCIAL IMPACT:
The EDA and Hennepin County are parties to the Agreement for Elevate Hennepin Programming,
which requires the EDA to pay $5,000 to Hennepin County in 2024 for these services.
F.LEGAL CONSIDERATION:
None.
ALTERNATIVE RECOMMENDATION(S):
N/A.
PRINCIPAL PARTIES EXPECTED AT MEETING:
Brandon Bell, Senior Planning Analyst, Hennepin County
ATTACHMENTS:
Description Type
Elevate Hennepin Presentation Presentation
Elevate HennepinSM
Welcome to Elevate HennepinSM
www.elevatehennepin.org
•Curated hub representing multiple agencies
(SBA, DEED, Local)
•Small business events
•Services and resources
•Lending pathways
•Content connector
•Professional business resources
•Provided by Hennepin County and its
partner Cities for Hennepin County
BusinessesDante Williams,
Owner of Vent
Services for Businesses
•Provided by Hennepin County for Hennepin
County Businesses
•Curated 1:1 business advisory services
•30+ professional advisors
•Peer learning
•Content connection (SBA, DEED, Library,
Advisors)
•Personal navigation – 15 minute consult
•Standardizing intakeVanessa Drews,
Owner of Cheesecake Funk
•Elevate Hennepin consulting, advising, and mentorship
•Lending Pathways
•Elevate Hennepin consulting, advising, and mentorship
•Cohort based and on-demand learning
•The Coven digital membership
Startup
Microenterprise
(1-4 employees)
Early growth
(5-9 employees)
Second stage
(10-99 employees)
•Tech Essentials
One-on-One Consulting
Professional Advisors
•Mission driven for-profit or non-profits
•Community-based
•Culturally-specific, multi-lingual
•Specialized, practical and professional
business advisory services
Advisor Services
•Business planning
•Legal
•Marketing
•Financial management / projections
•Lending and preparation to access capital
•Human resources
•Technology supports
All consulting costs are paid for by Hennepin
County, no cost to you!
Hennepin County contracts
with 39 Business Advisors to
provide cohort learning
opportunities, professional
consulting services, and 1:1
business advising –all at no-
cost to local businesses.
92% Locally Led
69% Women Led
69% BIPOC Led
8
Advisor Network
•A&M Associates
•ACER
•African Development
Center
•Asian Media Access
•Backpocket Strategy
•Better Business Bureau
•Clear Talk Accounting
•ConnectUp! Institute
•Co-Starters
•Davis Law Office
•Edward Lowe
Foundation
•Enviro-Tech
•Hmong American
Partnership
•Hortensia Law Office
•IFRI, LLC
•Impact Hub
•Interise
•JLLB Media
•Kharis Consultants
•Khoo Consulting
•Latino Economic
Development Center
•Led by Truth
•LegalCORPS
•Makee Company
•MBMentors
•Minnesota Social
Impact Center
•Neighborhood
Development Center
•New American
Development Center
•New Publica
•NextStage
•Propel Nonprofits
•Raven Construction
•Sigma Consulting
•Springboard for the
Arts
•Technologist
Computers SBC
•The Coven
•The Activate Network
•Victor Jones
Consulting
•Women Venture
Workshops & Peer Learning
Helping Businesses Grow
✓Strengthen infrastructure
✓Expand customers/brand/markets
✓Path to the next level
✓Opportunities based on business stage
✓Peer learning, education, research
CEO Growth Series
Heidi Oas, Air Quality Engineering
CEO Next Alum
Elevate Tech Essentials
•Support to incorporate technology into
business
•Tech needs assessment
•Online marketing and social media
•CRM, Software, time-saving technology
•Cohort delivery by two entities
•75% reimbursement for implementation
Elevate Construction
•1:1 consulting, specialized services from
trusted construction industry experts
•Construction Intensive Workshop
Specialized Support
Certified Access Academy
•Supporting Women of Color entrepreneurs
contracting with government and corporate entities
www.elevatehennepin.org
14
Elevate Hennepin 2023 Overview
February 2024
businesses
served through
Elevate
HennepinSM
14,809
hours of
consulting
services
provided
33
Hennepin
cities
represented
13.2
average hours
of service per
client
1,122
15
Financing results (2022 –2023 Q4)
Financing
$19.5 million
111
businesses
Jobs
405 jobs
105 businesses
New Businesses Launched
135
February 2024
16
Demographic characteristics (2023)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Race / Ethnicity of Business Owner Gender of Business Owner
42% - Black / African
American
26% - White
10% - Hispanic / Latino
6% - Asian
6% - Multiracial / Other
9% - Unknown
34% - Male
56% - Female
2% - Non-Binary
8% - Unknown
Total =1,122 businesses
1% - Multiple Owners
Location of businesses served (2020 Q4 –2023 Q4)
Total = 2,444 businesses / 26,427 hours
City Biz’s Hours City Biz’s Hours
Minneapolis 1,237 14,439 Rogers 11 38
Brooklyn Park 144 2,090 Excelsior 10 149
Bloomington 137 1,687 Wayzata 10 105
St Louis Park 68 711 Champlin 9 145
Brooklyn Center 63 761 Osseo 5 16
Richfield 63 718 St Anthony 5 57
Eden Prairie 52 473 Dayton 4 29
Edina 51 658 Mound 4 57
Minnetonka 50 531 Deephaven 3 32
Hopkins 46 524 Long Lake 3 57
Maple Grove 46 399 Medina 3 77
Plymouth 46 406 Orono 3 6
Golden Valley 37 530 Maple Plain 2 1
Crystal 30 411 Shorewood 2 45
New Hope 24 263 Other Hennepin*5 21
Robbinsdale 19 157 Other / Incomplete data 252 710
* Corcoran, Loretto, Rockford, Spring Park, Tonka Bay
Bloomington -Elevate Hennepin snapshot (Q3 2023)
11528 Hours of
assistance
Businesses
receiving
service
220 1,187
Q3 2023 Since Q4 2020 Q3 2023 Since Q4 2020
35%
21%
10%
15%
10%
8%
46%
48%
2%
4%
Race & Ethnicity Gender
Black
Latino
Idea Stage
Male
No. Employees
13%
33%
33%
10%
10%
Self EmployedFemale
1 to 4
5 or more Next Stage 128
New Publica 58
Khoo Consulting 54
Davis Law Office 45
MCCD 34
Women Venture 29
JLLB Media 28
ADC 26
Victor Jones Consulting 26
Hours by top vendors (2023)
Total hours = 556
Asian
White
Business data (since January 2023 / n = 48)
N/A N/A N/A
Other
Other
Questions?
Brandon Bell, Senior Planning Analyst
Brandon.bell@hennepin.us
AGENDA SECTION:Consent Calendar
AGENDA ITEM #3.A.
STAFF REPORT NO. 4
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
3/18/2024
REPORT PREPARED BY: Kumud Verma, Finance Director
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consider resolutions designating official depositories for the Economic Development Authority for
2024, including the approval of collateral.
EXECUTIVE SUMMARY:
In compliance with Minnesota statutes, the Economic Development Authority of Richfield (EDA) must
designate on an annual basis those financial institutions it does business with.
The attached resolutions for the EDA Board’s consideration, designate U.S Bank/4M Fund as a depository
of EDA funds, and certain savings and loan associations, banks, credit unions and certain financial
institutions as depositories for the investment of EDA funds.
RECOMMENDED ACTION:
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.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
N/A
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Regular business transaction.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
In accordance with Minnesota Statutes Section 118A.01 - 118A.06 and 469.099, the EDA 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 EDA’s banking arrangement with the 4M Fund. Monies
received, checks written, by the EDA, flow through U.S. Bank, however, at the end of each business
day, any proceeds remaining in EDA U.S. Bank accounts are swept to the 4M Fund to be invested.
Therefore, at the end of the business day the EDA 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 EDA’s vendor
accounts and all savings deposits.
The EDA must also designate annually, certain savings and loan associations, banks, and credit unions
as official depositories for deposit and investment of certain EDA funds. With approval of these official
Melissa Poehlman, Executive Director
N/A
3/5/2024
depositories, the EDA 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
EDA funds for 2023. These institutions, such as investment brokerage firms, offer government securities
in the manner required by law. These financial institutions include RBC Capital Markets, Raymond
James & Associates, Northland Securities, Oppenheimer & Co., Principal Custody Solutions, Moreton
Capital Markets, Pershing Wealth Solutions BNY Mellon and the 4M Fund.
D.CRITICAL TIMING ISSUES:
N/A
E.FINANCIAL IMPACT:
N/A
F.LEGAL CONSIDERATION:
The EDA 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 EDA in the amount specified in the attached resolutions.
ALTERNATIVE RECOMMENDATION(S):
None
PRINCIPAL PARTIES EXPECTED AT MEETING:
None
ATTACHMENTS:
Description Type
Resolution Designating Certain Financial Institutions as
Depositories for the EDA Resolution Letter
Resolution Designating US Bank a depository of funds for
the EDA Resolution Letter
Resolution Designating Certain S&L Associations, banks
& credit unions as depositories Resolution Letter
RESOLUTION NO. 48
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2024
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 2024.
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 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 18th day
of March, 2024.
President
ATTEST:
Executive Director
RESOLUTION NO. 49
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF
RICHFIELD FOR THE YEAR 2024
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
18th day of March, 2024.
President
ATTEST:
Executive Director
RESOLUTION NO. 50
RESOLUTION DESIGNATING CERTAIN SAVING AND LO AN ASSOCIATIONS,
BANKS AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF
ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2024
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 2024.
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 18th day
of March, 2024.
President
ATTEST:
Executive Director
AGENDA SECTION: Consent Calendar
AGENDA ITEM # 3.B.
STAFF REPORT NO. 5
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
3/18/2024
REPORT PREPARED BY:
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of an Agreement with the Center for Energy and Environment to administer the
Apartment Remodeling Program.
EXECUTIVE SUMMARY:
In 2018, the Economic Development Authority (EDA) created the Apartment Remodeling Program (Program)
to encourage investment in the City's rental community. Since its inception, the EDA has issued 12 loans in
the amount of $443,000 and leveraged an equal amount in private investment.
To date, EDA staff have administered the Program, but staff no longer has the capacity to continue
administering all housing programs in-house. In order to continue offering quality services to this Program,
staff is recommending that these loans be originated by the Center for Energy and Environment (CEE) on
behalf of the EDA. A Multi-Family Origination Agreement (Agreement) for $100,000 with CEE
provides funding for loans, $2,500 for a one-time set-up fee, and $750 per loan in administration
fees. The Agreement would run through 2025. Because the EDA budget is only approved through
2024, an amendment would be approved to authorize additional funds in 2025 if the EDA chooses to
continue funding the Program.
RECOMMENDED ACTION:
By motion: Approve a Multi-Family Improvement Program Origination Agreement with the Center for
Energy and Environment for the administration of the Apartment Remodeling Program.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In March of 2018, the EDA approved the Program to encourage investment in the City's apartment
properties. In 2023, the EDA expanded the eligibility to include 1-3 unit rental properties when sufficient
funds are available.
The Program provides zero interest, deferred loans, with a 15-year term and is focused
on properties with rents affordable at 60% of the Area Median Income (AMI) or less (i.e.,
Naturally Occurring Affordable Housing or NOAH).
The City has partnered with CEE on a variety of programs in the past 25 years, including an earlier
version of Apartment Remodeling, Home Energy Squad Enhanced, Remodeling Advisor, Fix-Up Fund,
and Energy Efficient Business Program.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Investing in the City's apartment and rental housing community advances equity for residents with lower
Julie Urban, Asst. Community Development Director
N/A
Melissa Poehlman, Executive Director
3/5/2024
incomes and those who are Black, Indigenous, and People of Color (BIPOC). Fifty-four percent of the
City's rental housing community are BIPOC residents.
One of the Strategic Plan initiatives is to maintain Richfield as an affordable place to live. Public
investment in rental properties can help to maintain affordability.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The Agreement incorporates the Program guidelines that were adopted by the EDA in 2018 and
amended in 2023.
D.CRITICAL TIMING ISSUES:
The Agreement would be in effect from May 1, 2024, through December 31, 2025.
E.FINANCIAL IMPACT:
The EDA 2024 Budget allocates $100,000 to the Program. The amount will cover loans, a $2,500 one-
time set-up fee, and a $750 administration fee for each loan processed.
F.LEGAL CONSIDERATION:
The EDA Attorney has reviewed the Agreement.
ALTERNATIVE RECOMMENDATION(S):
Decide not to approve the Agreement with CEE to administer the Apartment Remodeling Program.
PRINCIPAL PARTIES EXPECTED AT MEETING:
NA
ATTACHMENTS:
Description Type
Agreement Contract/Agreement
Exhibit A - Guidelines Exhibit
Exhibit B - Budget Exhibit
CONTRACT between RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT CEE #Page 1
MULTI-FAMILY IMPROVEMENT PROGRAM ORIGINATION AGREEMENT
This MULTI-FAMILY IMPROVEMENT PROGRAM ORIGINATION AGREEMENT (“Agreement”), dated
this day of March, 2024, is made by and between the Richfield Economic Development
Authority, with offices at 6700 Portland Ave, Richfield, MN 55423 (“Authority”), and CENTER FOR
ENERGY AND ENVIRONMENT, with offices at 212 3rd Avenue North, Suite 560, Minneapolis,
Minnesota 55401 (“CEE”).
RECITALS
A.The Authority has a need for certain professional services and desires to retain CEE to
provide said services, all subject to the terms and conditions contained in this
Agreement.
B.CEE is qualified to provide the desired professional services and desires to provide said
services for the Authority, all subject to the terms and conditions contained in this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this
Agreement, the parties agree as follows:
1.Services/Scope of Work
1.1 CEE shall in conjunction with the Authority develop and deliver the City of
Richfield Multi-Family Improvement Program (hereinafter the “Program”) and more
fully described in Exhibit A attached hereto. All activities delivered under the Program
shall be coordinated with the Authority’s Executive Director’s designee.
1.2 CEE shall assist the Authority staff in marketing the Program. This will include being
on the CEE website and creating an information sheet about the loan program.
1.3 The funding source is exclusively from the Authority.
2.Compensation
2.1 The Authority shall compensate CEE for services provided under this agreement
according to the schedule in Exhibit B attached hereto.
The Authority shall compensate CEE only for services completed.
2.2 Upon request, CEE will provide additional marketing services. Hourly rates are
inclusive of all overhead expenses and will be charged only for hours directly related to
marketing. CEE will be reimbursed by the Authority for any non-labor, out-of-pocket
expenses, relating to these services on a dollar-for-dollar basis with no mark-up.
2.3 CEE shall invoice the Authority not more than once each month. The Authority shall
pay CEE within 30 days of receipt of the invoice.
CONTRACT between RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT CEE #Page 2
3.CLIENT’s Obligations
3.1 If requested by CEE, the Authority shall make reasonable efforts to respond
promptly to requests from CEE for information and approvals regarding the
services to be provided under this Agreement.
3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain
information and or permission for access from clients which may be necessary
for CEE to provide the services under this Agreement.
3.3 The Authority shall provide sufficient funding to fund eligible Authority funded
loans. The Authority shall determine the amount of funds allocated to the
Program.
3.4 The Authority shall establish eligibility for the Program and shall provide these
criteria in writing to CEE prior to commencement of any mark eting efforts.
3.5 The Authority shall make reasonable efforts to respond promptly to requests from
CEE for information and approvals regarding the services to be provided under
this Agreement.
4.CEE’s Obligations
4.1 CEE shall use its best efforts to provide services under this Agreement in a
professional manner consistent with the care and skill used by reputable
members of CEE’s profession.
4.2 CEE, and all of its employees or agents, shall comply with all statutes,
ordinances, rules, regulations and other laws applicable to the provision of
services under this Agreement.
4.3 CEE shall secure all permits and licenses required for performance of the
services under this Agreement.
4.4 CEE shall not engage in discriminatory employment practices against any
employee or applicant for employment and shall in all respects comply with all
federal, state and local laws, regulations and orders, including without limitation,
Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure
to comply with the provisions hereof shall be deemed a material default under
this Agreement.
5.Term and Termination
5.1 Unless earlier terminated as provided in the following paragraphs, this
Agreement shall become effective on 05/01/2024 and continue through
12/31/2025.
CONTRACT between RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT CEE #Page 3
5.2 This Agreement may be terminated by either party, for any reason or no re ason,
immediately upon written notice to the other party. In the event this Agreement
is terminated by CEE prior to the expiration of the term set forth in paragraph
5.1, the Authority shall compensate CEE for all services delivered up the date of
termination and CEE shall provide the Authority with such information as the
Authority may request regarding the status of the Program.
5.3 Any termination of this Agreement shall not release either party from their
respective obligations under sections 7 and 8 of this Agreement.
6.Insurance
6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the
amounts listed below:
General Liability $2,000,000 Aggregate Limit
Automobile Liability $1,500,000 Combined Single Limit
Excess Liability $1,000,000 Aggregate Limit
Workers Compensation Statutory Limit
7.Liability and Indemnification
7.1 CEE represents that the services to be provided under this Agreement are
reasonable in scope and that CEE has the experience and ability to provide the
services.
7.2 CEE warrants that any services provided hereunder shall be done in a
professional and workmanlike manner.
7.3 CEE shall indemnify, defend and hold harmless Authority and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and propert y damage) which Authority may incur as a
result of any act or omission by CEE in providing services under this Agreement.
7.4 Authority shall indemnify, defend and hold harmless CEE and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which CEE may incur as a
result of any act or omission by Authority in discharging its duties under this
Agreement.
8.Confidentiality
Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and
not disclose to any third party any information obtained regarding the Authority
and/or any of Authority’s clients for which CEE is providing services; provided,
however, that this obligation to maintain confidentiality shall not apply to:
a)Information in the public domain at the time of disclosure;
CONTRACT between RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT CEE #Page 4
b)Information which becomes part of the public domain after disclosure
through no fault of CEE; or
c)Information which CEE can demonstrate was known by it prior to the date
of this Agreement.
Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client
information covered by this paragraph to governmental authorities to the extent CEE
reasonably believes it has a legal obligation to make such disclosures and to the extent
CEE reasonably deems to be necessary; provided, however, that if CEE believes that any
such disclosure is required by law, it shall provide advance notice to the Authority to
provide the Authority with a reasonable opportunity to attempt to obtain an injunction or
other protective order preventing such disclosure.
9.Relationship of Parties
CEE will provide services as an independent contractor under this Agreement.
Neither CEE, nor any of its employees or agents, shall be considered employees of the
Authority for any purpose, and neither shall CEE be eligible for any compensation or
benefits which the Authority may provide to its employees from time to time. CEE shall
be solely responsible for all employment and other taxes applicable to providing
services hereunder, and the Authority will not withhold any taxes or contributions from
the compensation payable to CEE under this Agreement.
10.Notices
All notices, requests, demands and other communications required to be given in
writing under this Agreement shall be given to the ot her party in person or by mail as
provided in this section. If delivered personally, notice shall be deemed to have been
duly given on the date of delivery. If delivered by mail, such notice shall be sent via
first class U.S. mail, postage prepaid, to the address set forth at the beginning of this
Agreement or such other address as a party may otherwise request by written notice,
and notice shall be deemed duly given three (3) business days after mai ling.
11.Assignment
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, successors and assigns; provided, however, that neither party shall
assign or transfer in any manner, this Agreement or any portion hereof without the
prior written consent of the other party, and any attempt to assign or transfer without
prior written consent shall be void and of no effect.
12.Governing Law
This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
13.Miscellaneous
CONTRACT between RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT CEE #Page 5
13.1 Headings and captions used in this Agreement are for convenience only and
shall not affect the meaning of this Agreement.
13.2 This Agreement contains the entire agreement of the parties and supersedes all
prior agreements, discussions and representations, written or oral, concerning
the subject matter hereof.
13.3 No waiver by the Authority of any term or condition of this Agreement or any
document referred to herein shall, whether by conduct or otherwise, be
construed as a waiver or release of any other term or condition of this
Agreement.
13.4 This Agreement may only be amended in a written agreement signed by both
parties.
13.5 Except as expressly set forth in section 7, the rights and benefits under this
Agreement shall inure solely to the benefit of the Authority and CEE, and this
Agreement shall not be construed to give any rights, benefits or causes of
action to any third party.
13.6 The invalidity or partial invalidity of any provision of this Agreement shall not
invalidate the remaining provisions, and the remainder shall be construed as of
the invalidated portion shall have never been a part of this Agreement.
13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13
(Government Data Practices) that are applicable to the Authority and shall not
disseminate any information concerning loan requests of the borrowers without
the prior written approval of the Authority.
13.8 This Agreement may be signed in any number of counterparts, each of which
shall be deemed an original and one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
CONTRACT between RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT CEE #Page 6
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
By: ________________________________________ Its: PRESIDENT
ERIN VRIEZE DANIELS
Date: ________________________________________
By: ________________________________________ Its: EXECUTIVE DIRECTOR
MELISSA POEHLMAN
Date: ________________________________________
CENTER FOR ENERGY & ENVIRONMENT
By: Its: Chief Operating Officer
Stephanie Haddad
Date: Tax ID # 41-1647799
Exhibit A Page 1
Agreement between Richfield Economic Development Authority and Center for Energy and Environment
EXHIBIT A
PROGRAM GUIDELINES
Exhibit A Page 2
Agreement between Richfield Economic Development Authority and Center for Energy and Environment
RICHFIELD LOAN PROGRAM GUIDELINES
The ECONOMIC DEVELOPMENT AUTHORITY is making funds available to rental property owners to assist
with property maintenance and improvements of rental properties. Center for Energy and Environment
shall serve as the administrator for the Richfield Multi-Family Improvement Loan Program.
Multi-Family Improvement Loan
Interest Rate: 0%
Amortization Type: Deferred
Loan Amount: Loan must be matched 1:1
Minimum of $5,000 and Maximum of $50,000 for properties with 4+ units
Minimum of $3,000 and Maximum of $25,000 for 1-3 unit properties
$5,000 maximum per unit for properties with at least 4 units
$3,000 maximum per unit for 1-3 unit properties
Additional funds of $1,000/unit up to $10,000 for Energy Improvements identified through a
Energy Audit or for accessibility improvements to accommodate tenants with disabilities
Loan term: 15 years. The loan is 100% forgiven after 15 years if the Borrower retains ownership,
continues to rent the property, and maintains a current rental license. If the borrower sells or transfers
the title of a 1-3 unit property to an existing renter with a household income no more than 80% AMI the
loan will be 100% forgiven at time of sale or transfer. If the property is sold or no longer holds a current
rental license prior to 15 years from the date of the loan the loan is due in full.
Eligible Properties: Residential rental properties located within the geographical boundaries of the City
of Richfield. Properties must be AT LEAST 30 years old AND have a current rental license. Properties
can be owned by a Contract-for-Deed, but the owner of the Contract-for-Deed must sign the mortgage
document. If the property is 1-3 units it must have had a rental license for at least 3 years. Properties
with 1-3 units are NOT eligible until August 1st of each year.
Ineligible Properties: Single-family owner-occupied properties, cooperatives, manufactured homes, or
properties used for commercial purposes. Properties held in a Trust.
Eligible Borrowers: All borrowers must be legal residents of the United States OR a registered business
with the MN Secretary of State. A business must have been in business for at least 2 years.
Ineligible Borrowers: A person or business with no ownership of the property.
Exhibit A Page 3
Agreement between Richfield Economic Development Authority and Center for Energy and Environment
Ownership/Occupancy: Owner- occupied (must be at least 2 units) or Absentee-owned. If the property
is owner-occupied the loan funds can only be used for the rental unit(s).
Loan - to - Value Ratio: 110%. Half of the improvement value may be added to the initial property
value. Value can be established by the Property Tax Statement, or an Appraisal dated within the past 12
months.
Income Limit: None.
Debt - to - Income Ratio: N/A.
Credit Requirements: The Borrower must be current on all Mortgages and Property Taxes.
Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed,
however, the outstanding balance(s) for this loan CANNOT exceed the maximum loan amount allowed.
Eligible Use of Funds: Improvements that correct city code violations or health and safety concerns.
Permanent Exterior Improvements including, but not limited to roofing, siding, windows, painting,
doors, driveways, parking lots if doing with other eligible improvements, awnings, sidewalks/steps,
garage repair, permanent landscaping and tuck pointing. Interior improvements including but not
limited to structural work, accessibility improvements, plumbing, electrical, insulation, lawn sprinkler
systems, flooring, permanent fixtures (cabinets/counters). Energy Star rated HVAC and Water Heaters,
Solar Systems and Insulation. Questionable improvements will be brought to the city for approval. Note:
If a property has open work orders from a rental licensing inspection report, the items must either be
addressed before a loan application is submitted or as part of the loan rehabilitation plan.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, playground equipment, saunas, whirlpools,
etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working
capital, debt service, homeowner labor or refinancing existing debts are NOT allowed.
Bids: Only 1 bid is required. All contractors must be properly licensed or registered and permits must
be obtained when required.
Sweat Equity / Owner Labor: NOT PERMITTED
Post Installation Inspection: Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by a City representative to
ensure the work has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the Richfield Economic Development
Authority.
Borrower Fees: Borrower will be responsible for a 1% origination fee, title report, document
preparation fee, mortgage filing and service fees, credit report fees and any applicable closing fee.
Exhibit A Page 4
Agreement between Richfield Economic Development Authority and Center for Energy and Environment
Work Completion: All work must be completed within 180 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case-by-case basis.
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify.
1-3 unit properties are NOT eligible until August 1st of each year. Applicants must provide a completed
application package including the following in order to be considered for funding.
Completed and signed application form
Proof of Identity (drivers license, passport, etc.)
Bids or estimates for proposed projects
Other miscellaneous documents that may be required.
Program Costs: Loan origination will be paid out of the Program Budget. Loan program marketing
efforts will be billed directly to the City of Richfield and is a separate expense should the city choose to
commission CEE for marketing support.
Disbursement Process: Funds are disbursed to the borrower(s) on a reimbursement basis after work is
completed and permits are closed/final.
Exhibit B
EXHIBIT B
TOTAL PROGRAM BUDGET $100,000
RICHFIELD LOAN PROGRAM BUDGET
A.
Multi-Family Improvement Loan Budget (includes One Time Set -Up Fee and Loan
Origination Fees : 2024: $100,000
Budget Notes:
1.CEE shall submit monthly invoices for loan program and administrative fees for that
period.
2.Services performed by CEE will be funded from the Total Program Budget as stated
above and paid in accordance with the following schedule.
(1)Annual Administration Fee None (included in Residential
Program)
(2)Remodeling Advisor Visit $250 per visit
(3) Multi-Family Improvement Loan Origination Fee
$750 per loan closed
(4) One time Set-Up Fee for Multi-Family Improvement Loan Program
$2,500
3.Marketing
Marketing efforts will be supported by CEE and marketing costs are not included in the
administrative budget. Hourly rates are inclusive of all overhead expenses and will be
charged only for hours directly related to the labor of all program marketing. CEE will
also be reimbursed by City of Richfield for any non-labor, out-of-pocket expenses
relating to these services on a dollar-for-dollar basis.
AGENDA SECTION: OTHER BUSINESS
AGENDA ITEM # 5.
STAFF REPORT NO. 6
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
3/18/2024
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.
EXECUTIVE SUMMARY:
The Economic Development Authority (EDA) Bylaws require an Executive Director to be appointed to
conduct regular EDA business. On March 20, 2023 Community Development Director, Melissa Poehlman
was appointed as the Executive Director until the regular EDA meeting in March 2024. Staff recommends
the reappointment of Director Poehlman.
The EDA Bylaws do not stipulate a term for the Executive Director. Since 2018, this has been done annually,
although the reason for the annual consideration is unclear. EDA Attorney Eddington has confirmed that this
is unusual and typically an Executive Director is appointed indefinitely; effectively coinciding with employment
in a particular position such as the Community Development Director.
The EDA could continue to appoint an Executive Director annually or could decide to appoint for a different
term:
specific number of years;
tied to Director Poehlman's employment as the Community Development Director; or
other term determined by the EDA.
At any time, the Board could bring an item to appoint a different employee as Executive Director.
RECOMMENDED ACTION:
By motion: Designate Community Development Director Melissa Poehlman as the Richfield Economic
Development Authority Executive Director.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
See Executive Summary
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
None
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The Bylaws of the Richfield EDA require the designation of an Executive Director.
D .C R IT IC AL T IMIN G IS S U E S:
A n E xecutive D irector must be appointed in order to conduct regular E D A business.
E .F IN AN C IAL IMPAC T:
None
F.L E GAL C ON S ID E R AT ION:
The B ylaws of the Richfield E D A require the designation of an E xecutive D irector.
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