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042125 EDA Work Session Agenda PacketECONOMIC DEVELOPMENT AUTHORITY WORK SESSION RICHFIELD MUNICIPAL CENTER, BARTHOLOMEW ROOM APRIL 21, 2025 6:00 PM Call to order 1.Staff will present an overview of past and current business assistance programs and facilitate a discussion of the proposed Richfield Economic Vibrancy, Investment, and Visual Enhancements Program. 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:Work Session Items AGENDA ITEM #1. STAFF REPORT NO. 12 WORK SESSION 4/21/2025 REPORT PREPARED BY: Jan Youngquist, Economic Development Manager EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director 4/15/2025 OTHER DEPARTMENT RE VIEW: N/A ITEM FOR WORK SESSION: Staff will present an overview of past and current business assistance programs and facilitate a discussion of the proposed Richfield Economic Vibrancy, Investment, and Visual Enhancements Program. EXECUTIVE SUMMARY: Much of Richfield developed in the post-World War II era. Although redevelopment has occurred over time, there are commercial corridors and nodes in Richfield that have the original buildings, many of which are 30- 75 years old. Some of these older commercial corridors are gateways to the City and can shape people's impression of the community's economic vibrancy. The proposed Richfield Economic Vibrancy, Investment, and Visual Enhancements (REVIVE) Program is a pilot program designed to support eligible businesses in making visual enhancements to their buildings and sites to encourage revitalization of older commercial nodes and corridors. The proposed REVIVE Program guidelines are included in the attached exhibit. DIRECTION NEEDED: Discuss the proposed REVIVE Program. Staff would like the Economic Development Authorities (EDA) feedback on the following: Are there any types of businesses that should be ineligible for the REVIVE Program, such as sexually oriented businesses, pawn shops, tobacco or cannabis shops, gun shops, check cashing businesses, self storage facilities, or others? Should the REVIVE Program have a geographic focus or property size limitations? BACKGROUND INFORMATION: A.HISTORICAL CONTEXT The EDA was formed in 2017 to promote and to provide incentives for economic development in Richfield. The EDA has partnered with the Center for Energy and the Environment to implement the Energy Efficient Business Rebate Program since 2020. In 2020, the EDA created the Displaced Business Program to help businesses displaced by redevelopment projects to relocate within the City of Richfield. In 2022, the E D A contracted with J ohn S tark of E nduring C ities to evaluate Richfield's business assistance services and accepted the Richfield B usiness A ssistance A nalysis and Recommendations Report in A pril 2023. The E D A and Hennepin C ounty have been partnering on the implementation and promotion of the E levate Hennepin business assistance initiative since March 2023. The E D A created the S mall B usiness S ewer Availability C harge (S A C ) A ssistance P rogram in October 2023. B .E QU ITAB L E OR S T R AT E GIC C ON S ID E R AT ION S OR IMPAC T S The proposed RE V IV E P rogram is designed to reduce barriers to participation by offering a forgivable loan with no payments, interest, or financial match required, and by providing financial assistance to eligible business owners, regardless of whether they own the property. The RE V IV E P rogram helps support the S trategic P lan desired outcomes of a vibrant downtown and a diversified tax base. C .P OL IC IE S (resolutions, ordinances, regulations, statutes, exc): Minnesota S tatutes 469.090 through 469.1082, the enabling legislation for economic development authorities, allows an E D A to create business assistance programs. D .C R IT IC AL T IMIN G IS S U E S: A summer launch would help maximize utilization of the RE V IV E P rogram, since warm weather is conducive to many of the eligible improvements to commercial sites and the exterior of buildings. E .F IN AN C IAL IMPAC T: The E D A 's 2025 budget includes $60,000 for a new small business assistance program. F.L E GAL C ON S ID E R AT ION: The RE V IV E P rogram guidelines that are informed by the E D A 's work session discussion will be reviewed by the E D A A ttorney prior to staff bringing the RE V IV E P rogram to the E D A for adoption. The E D A A ttorney will also prepare a forgivable loan agreement for the RE V IV E P rogram. ALTE R N AT IV E(S): N/A 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 D raft RE V IV E P rogram E xhibit Map of C ommercial B uildings Older than 1995 B ackup Material Richfield Economic Vibrancy, Investment, and Visual Enhancements (REVIVE) Program PURPOSE The Richfield Economic Development Authority (EDA) recognizes the importance of local businesses to our economy and that attractive business districts enhance the vibrancy of the community. The EDA is launching a pilot Richfield Economic Vibrancy, Investment, and Visual Enhancement (REVIVE) Program to support eligible businesses in making visual enhancements to their buildings and sites and to encourage revitalization of older commercial nodes and corridors. OBJECTIVES The REVIVE Program is designed to provide forgivable loans of between $2,000 to $5,000 to eligible businesses for projects that help achieve the following objectives: Stimulate investment in older commercial building exteriors and sites to improve the aesthetic appearance and vitality of commercial nodes and corridors. Encourage business and property owners to make visual enhancements to their buildings and sites. Support local small business owners, regardless of whether they own the property. Enhance and activate the space in between commercial buildings and the public realm to create more desirable bicycle and pedestrian environments. Support projects that increase the vibrancy of Richfield businesses and improve local economic conditions. Make commercial nodes and corridors more welcoming to attract and retain customers. ELIGIBILITY Eligible Applicants: To be considered for the program, the business must: Be located in a commercial building within the City of Richfield that was built before 1995. Be located on a site that is zoned commercial or mixed use. Own the property or be a commercial tenant with written permission from the property owner. Be a legal entity registered and in good standing with the Minnesota Secretary of State. Be in compliance with the Richfield City Code and not have any delinquent bills, fines, or other charges due to the City. If the property or business is not in compliance, correction of any outstanding issues or orders of noncompliance must be incorporated into the broader project. Ineligible Applicants: Home based businesses. Businesses located on sites with delinquent property taxes, regardless of whether the business owns the property. Corporate chains. Sexually oriented businesses, pawn shops, tobacco or cannabis shops, gun shops, or check cashing businesses. (For discussion) The EDA encourages all eligible Richfield businesses to apply for the REVRIVE Program, especially those owned or managed by women, persons of color, veterans, and Richfield residents. Eligible Improvements Eligible improvements must be located on the exterior of a building, and publicly visible from the adjacent street or sidewalk. Eligible improvements include: Exterior painting Canopy or awning installation or repair Exterior building or accent lighting (overhead parking lot lighting ineligible) Repair or replacement of exterior signage (subject to City approval of design and size) Decorative bicycle parking Outdoor seating Installation of window boxes and permanent planters Improvements to building access for pedestrians and people with disabilities Landscaping Permanent public art such as murals and sculptures (subject to City approval of design and location) Trash and mechanical enclosures Conversion of excess impervious surfaces to a patio or landscaped area Other improvements deemed similar by the EDA Executive Director or designee Ineligible Improvements The following improvements are not eligible: •Improvements already in progress or completed prior to forgivable loan approval •Improvements to a building’s interior, rear, or side not visible from a public street •Improvements to non-commercial buildings •Roofing •HVAC systems, building mechanical or security systems •Fencing (excludes decorative fencing as part of landscaping improvement) •Billboards, roof signs or temporary signs •Dynamic display or electronic message signs •Seasonal decorations or temporary improvements •Purchase or rental of tools and equipment or for labor performed by the building or business owner, family members, employees or any other person with a financial interest in the property or business Any other improvement not deemed eligible FORGIVABLE LOAN Amount: A business or property owner may apply for a forgivable loan award between $2,000 and $5,000. The award will be limited to the identified eligible expenses. Interest: All loans shall have an interest rate of 0 percent. Forgiveness: The loan will be forgiven and the loan agreement terminated by the EDA upon satisfactory completion of the following requirements: 1.Proof of passing final inspection for any work requiring a permit. 2.The program administrator will inspect the work for conformance with the approved application. 3.Loan recipient shall submit a report of how the loan funds were used and evidence of paid invoices, statements, or other supporting documentation. 4.Loan recipient shall: Subscribe to the Richfield Business Bulletin e-newsletter. Subscribe to the Elevate Hennepin e-newsletter. Take part in an educational opportunity sponsored by SCORE (chose one): o In person event o Live webinar o Recorded webinar TERMS AND CONDITIONS: 1.Funds for the REVIVE Program are limited and shall be awarded to qualifying applicants on a first-come, first-serve basis. 2.Business or property owners may only receive one forgivable loan through the REVIVE Program per calendar year. 3.The EDA may consider granting the funds on a case-by-case basis. At any time, the EDA may discontinue the option to provide any forgivable loans and approval is contingent upon funding. 4.Approvals are granted by the EDA Executive Director. An application that was denied by the EDA Executive Director may be appealed by the applicant to the EDA Board. 5.The EDA reserves the right to determine and limit the amount of assistance that is granted to any one applicant, allowing for the maximum utilization and benefit of the program. Nothing herein shall imply or suggest that the EDA is under any obligation to provide loan funds to any business owner or property owner. 6.All work must be done in accordance with applicable state and local building codes and the Richfield Zoning Code. Forgivable loan recipients must obtain all applicable permits and approvals for the project prior to starting the work. 7.If qualified to do so, loan recipients may perform the work on their own. Forgivable loan funds may be used for materials; however, the funds cannot be used to pay for tools and/or equipment purchase or rental, or for labor provided by the applicant, friends, relatives, or anyone with a financial interest in the business or the building. Permit requirements still apply and need to be met. 8.Projects must be completed within nine (9) months of forgivable loan approval unless an extension request is approved by the EDA Executive Director or designee. 9.The EDA retains the right to terminate any agreement for the REVIVE Program funds and demand repayment of the loan if a loan recipient is found to be in violation of any conditions set forth in the eligibility guidelines or loan agreement. DATA PRIVACY: The EDA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Practices Act”). Under the Minnesota Government Data Practices Act, the names and addresses of applicants for or recipients of assistance under this program and the amount of assistance received under this program are public data.