HomeMy WebLinkAboutEDA - March 17, 2015ANLb6W^-
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
March 17, 2015
6:00 p.m.
Conference Rooms A & B
1. Call to Order — 6:00 p.m.
2. Approval of Minutes (February 2, 2015 Regular)
3. Discuss The Farmstead/Presbyterian Homes Assisted Living Facility
4. Consider Participation in the Metropolitan Consortium of Community Developers "Open To
Business" Program
5. Economic Development Updates (verbal)
6. Redevelopment Updates (verbal)
7. Other Business
8. Adjournment
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV
TO: Economic Development Authority
CC: Jim Dickinson, City Administrator
FROM: Michelle Hartner, Deputy City Clerk
SUBJECT: Approval of Minutes
DATE: March 17, 2015
O
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
February 2, 2015 Regular
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
L�-
Michelle Hartner
Deputy City Clerk
Attach: Minutes
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ANDOVER ECONOMIC DEVELOPMENTAUTHORITYMEETING
FEBRUARY 2, 2015 - MINUTES
A meeting of the Andover Economic Development Author
Trude, February 2, 2015, 7:00 p.m., at the Andover City
Andover, Minnesota.
Present:
Absent:
Also present:
APPROVAL OF
January 6, 2015,
Motion by Twistol,
Motion by Ki
unanimously.
No one wished to
Motion by Holthus,
unanimously.
Commissioners She
James Goodrich, V;
Twistol =
None
Community Develo
Executive Director,
Holthus,
called to order by President Julie
85 Crosstown Boulevard NW,
at 7:03 p.m.), Mike Knight,
5thy Cleven and Joyce
Dave
the Minutes as presented. Motion carried
1, BLOC% 1, ANDOVER STATION
open the public hearing at 7:01 p.m. Motion carried
by Cleven, to close the public hearing at 7:02 p.m. Motion carried
Mr. Carlberg indicated State Statute requires a public hearing prior to any EDA land sale.
Mr. Carlberg stated the owner of Foundation Hill Montessori School located at 1750 139th Lane
is interested in purchasing the property located at 1730 139d' Lane to expand their current facility.
Mr. Nagwani, Foundation Hill Montessori School indicated with the purchase of this property he
will be constructing a 5,700 square foot expansion to the current 6,600 square foot facility,
almost doubling the square footage, but will not be doubling the enrollment. The reason for that
Andover Economic Development Authority Meeting
Minutes — February 2, 2015
Page 2
1 is they will keep some common areas in the new building and in the current building. Currently
2 there are 94 children enrolled, with the expansion they plan to enroll between 148 and 158
3 children. The children range in age from 6 weeks to 6 six years old. Enrollment has been full
4 since they opened six years ago. The expansion will create 10 -12 new full time jobs.
5 Construction is planned for 2015.
7 Motion by Holthus, seconded by Bukkila, to approve the land sale resolution of Lot 1, Block 1,
8 Andover Station North 3`a Addition. Motion carried unanimously. (See EDA Resolution R001-
9 15)
10
11 APPROVE PURCHASE AGREEMENT — GRIFFENPROPERTY HOLDINGS, LLC
12
13 Mr. Carlberg indicated there is a minor correction on the Purchase Agreement on page 1 under
14 Parties. The zip code is listed as 553311, it should be 55331.
15
16 Mr. Carlberg stated the Purchase Agreement is based on a sale price of $215,000 and all of the
17 sewer and water connection charges are being paid for by the buyer. The water and sewer area
18 charges have already been paid for.
19
20 Motion by Bukkila, Seconded by Knight to approve the Purchase Agreement for the sale of Lot
21 1, Block 1, Andover Station North P Addition, with the correction listed above. Motion carried
22 unanimously.
23
24 EDA WORK SESSION
25
26 Bunker Lake Boulevard Redevelopment
27
28 Mr. Dickinson handed out a map of the area, a parcel by parcel listing and a Cash Flow Analysis.
29
30 Mr. Dickinson explained the redevelopment area is on Bunker Lake Boulevard between
31 Crosstown Boulevard and Crosstown Drive. Mr. Dickinson indicated on the map 138" Avenue
32 acts as a dividing line. The parcels to the north of the dividing line will be referred to as "north"
33 and the parcels south will be referred to as "south ". He suggested the EDA focus on the parcels
34 on the south side.
35
36 Mr. Dickinson reviewed the area and the Cash Flow Analysis.
37
38 Commissioner Bukkila asked about the relocation costs. Mr. Dickinson explained the relocation
39 process and costs that may be associated.
40
41 Mr. Dickinson reviewed the parcels on the south side, identifying the different types of structures
42 and ownership. Mr. Dickinson also reviewed with the EDA advertised rents for the properties.
43
44 Commissioner Bukkila asked what the goal would be if the city were to acquire these properties.
Andover Economic Development Authority Meeting
Minutes — February 2, 2015
Page 3
Mr. Dickinson answered resale of the property to a developer for a mixed use development with
better housing stock.
4 President Trude asked approximately how much land is needed for a 70 unit apartment building.
5 Mr. Carlberg answered at least 3 acres is needed.
7 The area was discussed. The EDA concurred the goal is mixed use with commercial and high
8 density housing for the area.
10 President Trude suggested staff put together a drawing of the area showing what type of
11 commercial may work, traffic flow, street access and address housing affordability.
12
13 Commissioner Goodrich stated his concern with the project is accruing debt. Mr. Dickinson
14 indicated his proposal is being presented with zero debt for the EDA. Mr. Dickinson indicated
15 that cash flow management will be monitored closely to achieve the goal of having a large
16 enough area for a development.
17
18 Mr. Dickinson stated staff will continue to pursue parcels in the south area based on using
19 current market pricing, he cautioned against premium pricing.
20
21 Mr. Dickinson asked if the EDA is interested in staff marketing the Stop N Shop property, 13725
22 Crosstown Drive. Commissioner Bukkila and President Trude indicated they are not ready for
23 the parcel to be marketed.
24
25 Mr. Carlberg reviewed a list of EDA involved projects dating back to 2011 as requested by
26 Commissioner Twistol.
27
28 7'h Avenue and Bunker Lake Boulevard
29
30 Mr. Carlberg reviewed the properties 14259 & 14327 7s' Avenue. He noted the property owner
31 of 14327 has retained a Commercial Real Estate Broker.
32
33 President Trude stated she would like to see this area become commercial, 14259 7' Avenue is
34 zoned M -2. She would prefer to see it zoned general business and move the M -2 somewhere else
35 in the city. She stated this would take work with the Met Council. She asked the EDA if they
36 would support staff pursuing the rezoning of this property to commercial.
37
38 Commissioner Bukkila stated she would like to see it zoned commercial, however when you
39 remove the M -2 zoning you need to put it somewhere else in the city and she is not sure where
40 that would be.
41
42 Commissioner Holthus noted 5 acres of the property is currently zoned commercial.
43
44 President Trude stated the Met Council does not run the city and the city has moved zoning
Andover Economic Development Authority Meeting
Minutes — February 2, 2015
Page 4
1 around in the past. Mr. Carlberg indicated there are not a lot of areas for M -2 zoning that have
2 sewer and water availability.
4 President Trade stated she would like to move the M -2 zoning to the Rural Reserve.
5
6 Commissioner Bukkila stated she has never seen a city that tucks their high density housing in
7 the middle of the city with no way to get to it. She stated she sees it as a shuffle game and it
8 keeps getting pushed around the city. She noted she is not ok with it being in the center of the
9 city, she would prefer to see it on main corridors and arterial roads. President Trade indicated it
10 is a way to get something that we want for the community.
11
12 Commissioner Goodrich asked how binding the Comprehensive Plan is. Mr. Carlberg answered
13 the Comprehensive Plan is what the city has to follow. The city zoning maps and codes need to
14 be consistent with the Comprehensive Plan.
15
16 President Trade asked what the process would be to change the zoning. Mr. Carlberg stated an
17 amendment to the Comprehensive Plan to change the land use designation would need to go
18 through the city review process. If approved by the City Council, then submit the request to the
19 Met Council for approval or you could include the amendment in the 2018 Comprehensive Plan
20 update. He noted in his opinion if this is what the Council would like to do, including it in the
21 2018 update would the better option.
22
23 Mr. Carlberg stated moving the high density to the Rural Reserve is probably not going to be
24 received well by the Met Council since it is not in the current metropolitan urban service area
25 (MUSA).
26
27 Commissioner Ideas or Comments
28
29 President Trade asked for ideas or comments from the Commissioners.
30
31 Commissioner Twistol indicated she would like to see staff continue to focus on the Bunker Lake
32 Boulevard redevelopment area. Commissioner Knight agreed.
33
34 Mr. Carlberg stated staff believes the next area for development will be around the Kottkes bus
35 area. There has been interest in that area.
36
37 President Trade asked how the city could recruit a restaurant into the city. Mr. Carlberg
38 answered the problem with recruiting a restaurant is the low number of lunch crowd and traffic
39 count in the city.
40
41 Commissioner Holthus stated there is a small percentage of land that is zoned commercial in the
42 city, she would be willing to rezone for more businesses.
43
44 Commissioner Goodrich stated he would like to see more commercial zoning.
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Andover Economic Development Authority Meeting
Minutes — February 2, 2015
Page 5
Commissioner Bukkila indicated she has seen steady progress and does not want to see too much
pushed at one time.
President Trude thanked the EDA Commissioners for their input.
ADJOURNMENT
Motion by Holthus, Seconded by Goodrich to adjourn. Motion carried unanimously. The meeting
adjourned at 9:02 p.m.
Respectfully submitted,
Michelle Hartner, Recording Secretary
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: President and Commissioners
FROM: Jim Dickinson, Executive Director
David L. Carlberg, Community Development Director
SUBJECT: Discuss the Farmstead/Presbyterian Homes Assisted Living Facility
DATE: March 17, 2015
The EDA is requested to consider extending the life of Tax Increment Financing District 1 -3, a
Housing District as requested by Presbyterian Homes. The purpose of the request is to extend
the tax benefits derived from the district an additional 10 years and by doing so insuring that
twenty percent (20 %) of the senior housing units remain affordable.
Background
TIF District 1 -3 was created in the late 1990's for The Farmstead Project, a 140 unit senior
housing development that provides memory care, assisted and independent living located on
Bunker Lake Boulevard NW between Marigold Street and Quay Street proposed by Presbyterian
Homes. The TIF Housing District has a certification life of 25 years. However, in the case of
the Farmstead project, a "pay as you go" revenue note of fifteen (15) years was issued. This
means that for the past 15 years 90% of the property taxes generated from the new building have
been refunded to Presbyterian Homes and by doing so a rent reduction has been applied of
roughly $360 /unit for 20% of the units. The affordable units also have to be occupied by
individuals whose income is 50% or less of the area median gross income. By the City agreeing
to the 10 year extension of the note, 28 of the 140 units will continue to remain affordable as
originally intended. If the extension is not approved Presbyterian Homes is no longer obligated
to provide for affordable units.
ACTION REQUESTED
Receive presentation from Presbyterian Homes representative and direct staff on how the EDA
would like to proceed with the extension request of TIF 1 -3 as requested by Presbyterian Homes.
submitted,
�24�
David L. Carlberg
A L66, Y - - - - (:D
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN. US
TO: President and Commissioners
Jim Dickinson, Executive Director
FROM: David L. Carlberg, Community Deve opment Director
SUBJECT: Consider Participation in the Metropolitan Consortium of Community Developers
"Open to Business" Program
DATE: March 17, 2015
INTRODUCTION
Representatives from the Metropolitan Consortium of Community Developers (MCCD) recently
approached city staff on the interest of the City of Andover to participate in their "Open to
Business" Program. The program promotes entrepreneurism and provides one on one business
counseling to current and prospective entrepreneurs. The program also provides business loans
and can link the entrepreneur to additional resources, services, and business professionals to help
them succeed.
The MCCD has partnered with Anoka County for 2015 and has established walk -in consultation
office hours at the Anoka County Government Center of two hours a month. In addition to the
established office hours clients can also meet with a business advisor by appointment. Office
hours could also be established at the Andover City Hall under the County's contract if the EDA
is interested for the rest of this year.
If the City would like to participate in the program in 2016 the cost would range from $5,000-
$7,500 annually which is a 50/50 cost share with the MCCD. Office hours would be established
at two hours a month and be held in the front conference room at City Hall. MCCD staff would
also assist City Staff in developing materials that brand the program to Andover. If the EDA
chooses to participate in the program information would be placed in the Andover Today
newsletter as well as the City's website to promote the program. Attached please find additional
information on the Open to Business Program. Kathleen DuChene, the Anoka County Business
Advisor from the MCCD will be at the meeting to provide an overview of the program and
answer questions.
ACTION REQUESTED
Direct staff on how the EDA would like to proceed in participating in the Open to Business
Program offered by the MCCD.
Respectfully submitted,
David L. Carlberg
Myo MC CD is K
in your community
Promoting entrepreneurism. Entrepreneurs are starting and growing small businesses
in your community. By helping them gain access to financing and other business
assistance, you can encourage small business development that grows your tax base,
creates local jobs and increases community vitality.
How we can help. MCCD's Open to Business program brings on -site business services
specialists to your city that can expand your community development staffs expertise in
such areas as start-up financing and business plan development. We can respond to
requests for business assistance when those requests are beyond the range of the
services normally provided by your municipal agencies.
How we work. Our staff can provide one -on -one assistance customized to meet the
needs of your small business owners and operators. Many of our clients receive help in
planning and organizing their business ventures. We can also assist with financial
management, marketing and regulatory compliance.
Accessing capital for your businesses. MCCD operates a small business loan fund
that can help your entrepreneurs access the capital they need to grow their businesses.
We can also draw on our long- standing partnerships with area banks to help your
businesses obtain bank loans and revolving lines of credit. As a participant in MCCD's
"Open to Business" program, your community development agency can help promote
more effective access to capital for your local businesses.
How we partner with you. MCCD will work with city staff to develop materials that
brand this as a program of your city and assist with outreach ideas to the business
community. Or staff can meet clients at our office or their place of business. In addition,
we can schedule on -site hours at your city hall or other public venue for walk -in
consultations. This fee - for - service arrangement can provide you with a cost- effective
alternative to an "in- house" business development program staffed and funded by your
agency.
Who we are. The Metropolitan Consortium of Community Developers is an association
of 48 non - profit community development agencies that work to improve housing and
economic opportunity throughout the Twin Cities metropolitan area. During this past
year, our team of business development specialists has provided access to more than
$2 million in business capital for our clients and technical assistance services for more
than 400 area businesses. You can find our Web site at www.oaentobusinessmn.ora.
For more Information, contact
Rob Smolund
Metropolitan Consortium of Community Developers
rsmolund()mccdm n.ora
612 - 789 -7337, ext 260
RMCCO
lcelirala ?�
Open to Business (OTB)
Loan Product Summary -Jan 2014
Open to Business- a program of the Metropolitan Consortium of Cof
direct lending and loan servicing as an enhancement to the entrepre
provides. Financing packages are available to both Start-up and Exis
available for a variety of uses; including; acquisition, property, equip
working capital. Loan terms and limits vary by use, but can be very f
the needs of the individual business. Examples of the financing OTP
• Loan Packaging/Facilitation
OTB staff can assist potential borrowers with the preparation
flow and other financial projections and loan application mate
entrepreneurs in identifying borrowing needs and accessing c
programs that provide favorable terms and conditions for sm
We work with our clients to help them find the financing that
unique needs
• Micro Loans
Direct loans from OTB for a variety of business purposes, in(
capital, asset and equipment purchases, and start-up costs.
years, loan sizes up to $25,000 for retail /service businesses,
manufacturing businesses. This program is targeted to start
businesses that cannot secure financing from traditional coi
Participation Financing
OTB loans in partnership with private lenders for physical imi
asset /equipment purchases. OTB can provide financing of up
with interest rates and term generally set to match the Bank
entity. In most cases, OTB will subordinate collateral and rep
lender. Loan size and term vary from project to project, but c
$5,000 to as much as $100,000 or more depending on use.
nity Developers- offers
-ial support services it
businesses, and
t, inventory and
le in structure to meet
provide includes:
business plans, cash
als. Our staff can assist
imunity lending
business borrowers.
!st meets their own
ling inventory, working
>ical loan terms of 3 -5
$50,000 for
i and early stage
ercial lenders.
and hard
50% of a given project,
other partner financing
ment to the private
be from as little as
Real Estate Gap Financing
OTB loans in partnership with private lenders to provide gap i
acquisition projects — including projects financed through the
interest rate will be at or near the bank's rate, and will match
that the term does not exceed 10 years- though we may amo
Real Estate Acquisition Financing
OTB- in partnership with private lenders- provides permanent
commercial real estate acquisition- up to 90% of the property,
will provide the difference between the bank's LTV cap and 9[
appraised value. OTB will generally match the bank's rate witl
(though amortizations may be longer).
• Transactional Financing
cing for real estate
504 program. OTB's
bank's term provided
over a longer period.
erm financing for
appraised value. OTB
6- up to 40% of the
terms up to 10 years
Short term loans, for businesses with a clear short term borrowing
need, but whose
cash flow cycle inhibits them from making regular monthly loan
payments.
Transactional loans are targeted to contractors, vendors and manufacturers
who have
received a contract or order but need working capital to fulfill
the order, and payment is
structured to concede with completion of the contract. Typically
Transaction financing
is available for needs of less than 6 months, and for $25,000 0
less, though larger loans
are also available for businesses with performance bonds and
scrow payment
arrangements.
To learn more about financing options and other services available to
to Business, visit www.Opentobusinessmn.org, or contact an OTB Bus
E -mail: info @oaentobusinessmn.ore
Phone: 612 - 789 -7337
preneurs from Open
Advisor at:
TO BUSINESS
,
Anoka County Business Owner To
Staff New OTB Project
Kathleen DuChene knows what it is like to start and run a small business." I
have experienced many of the challenges that owners face when they first start
out. I have walked in their shoes," says Kathleen who has owned and operated
two Anoka County businesses with her husband.
Kathleen will put her experience to good use as the Business
Advisor for OTB's new project in Anoka County.
IF-
"My role as a Business Advisor will be to work with existing small businesses and prospective
entrepreneurs to make them aware of the issues they will need to face. I want to help them better
understand the opportunities, responsibilities and requirements of business ownership, and I
want to guide them to the resources they will need to be successful," Kathleen said.
Karen Skepper, Anoka County's Director of Community and Government Relations explains that
her commissioners have made economic development a high priority for 2015. 'This means
finding ways to help business owners large and small. The Open to Business program is an
exciting new opportunity to help businesses in our county solve problems and grow. When
businesses are successful, everyone wins."
OTB Champion Moves on to Fergus Falls
FiAmy Baldwin, the City of Brooklyn Park's former Economic Development Director
has relocated to Fergus Falls, where she now serves as Executive Director of
that city's Economic Improvement Commission.
"Amy was an early and consistent champion for Open to Business," said
OTB Business Advisor Rob Smolund. 'With her help, we were able to launch
Open to Business in 2010. Brooklyn Park was our first community partner. Now
we are in 67 metro area communities."
We wish Amy well in her new position.
OTB Loans
Here is how three of our recent borrowers used their OTB funds
Therapy OPS. This business obtained financing for a new outpatient speech therapy clinic in
Inver Grove Heights from Venture Bank and the SBA 504 program. OTB provided a working
capital loan for Therapy OPS to cover operating costs at the new clinic while insurance
reimbursement payments are being processed.
Yellow Brick Trading Company. Cara Hobbs used her OTB loan to purchase additional
inventory for her shop in downtown Chaska. Cara's Yellow Brick Trading Company offers
furniture, antiques and home decor items along with unique clothing and gifts.
Doggie Doo's Spa and Retreat. Starla Tyree and her business partner Carrie Engh, an Edina
resident, needed more space for their growing dog grooming business in Shakopee. They used
their OTB loan to renovate their new site in a freestanding building just outside of Shakopee's
downtown.
Expert's Corner
Candace Wagner is an attorney who specializes in tax and regulatory
compliance issues. With a new tax year now underway, Wagner provides the
following reminders about the impact of the Affordable Care Act in 2015.
The Patient Protection and Affordable Care Act or " Obamacare" is the biggest tax
law change in the last twenty years. This piece of legislation has brought about
much confusion in the minds of Americans. In a nutshell, Obamacare expands the
affordability and availability of insurance coverage, either through private
insurance or through Medicaid.
Beginning in 2015, large employers must insure full -time employees or pay a per employee
fee.Small businesses will not be required to provide health insurance, but small businesses with
less than 25 full -time equivalent employees will have access to tax credits to reduce premium
costs if they choose to offer group health insurance plans
Individuals will face a tax penalty if they do not have health insurance. However, individuals may
be exempt from the tax penalty due to income or may be offered cost assistance, including tax
credits, to obtain health insurance. Adults who are under 26 years of age may qualify to stay on a
parent's health insurance plan.
For more information, contact Candice Wagner at Wagner Accounting and Tax, 612 - 309 -9755.
Feel free to forward this information on to businesses in your community.
Year End Results- 2014
Our year -end numbers provide a quick snapshot of our on -going efforts to provide counseling
and access to capital for aspiring entrepreneurs who are moving on to the next stage in the
development of their business ventures.
During 2014, we loaned over $1.65 million to 57 small businesses which leveraged more than
$20 million dollars from outside funds for these businesses. Nearly 400 jobs were either created
or retained by our borrowers. OTB business advisors worked with over 740 entrepreneurs and
provided nearly 4,000 hours of technical assistance.
Contact us: info(a)opentobusinessmn.orq
612/789 -7337
ream
TO BUSINESS
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TO BUSINESS
2013 Highlights
• MCCD helped 51 entre-
preneurs secure capital
to start, expand or►m-
preve their businesses.
• These 51 entrepreneurs
were located In 20 com-
munides throughout the
metro area.
• MCM support enabled
our entrepreneurs to
access over $17.4 mil-
lion In capital for their
business projects.
• MCCD staff provided
valuable technical assis-
tance to 465 entrepre-
neurs.
• SevenW41ve metro-area
residents received credit
indicting loans.
• Credit building borrow,
em who completed the
program saw their credit
scores Increase an ever-
age of 35 points.
2013 Open to Business
and Lending Report
Open to Business Impact
When MCCD launched the
Open to Business Program
in 2011, we knew it would
benefit metropolitan com-
munities. What we didn't
realize was how big an im-
pact it could have.
Open to Business describes
our on -going efforts to pro-
vide business advice and
financing to both emerging
and maturing small busi-
nesses in partnership with
metro -area municipalities.
Through these partnerships,
we help local governments
create their own business
support programs targeted
at residents and entrepre-
neurs in their communities.
The original four municipali-
ties served in 2011 have
expanded to 48 by the end
of 2013. More importantly,
Open to Business has
helped hundreds of entre-
preneurs with technical as-
sistance and provided
scores of them with financ-
ing.
In 2012, we started target-
ing some of our lending to
help second stage busi-
Teresa Fox and Arwyn Birch, owners of Glam Doll Do-
nuts LLC, show off two kinds of their outrageously
good donuts. Read more about Glam Doll Donuts on
page 3.
nesses succeed. Those sec-
ond stage businesses that
received MCCD loans in 2012
were already showing aver-
age sales growth of 10% in
2013 and were contributing
over $5 million in payroll to
their communities.
In 2013, Open to Business
continued our work of helping
the newest entrepreneurs
along with seasoned busi-
nesses to build strong com-
munities.
.t;
• •
ro Buso+css
MCCD's Mission:
To work
collectively to
build strong
communities by
leveraging
resources for the
development of
people and
places.
Lending and Technical Assistance Impact
MCCD's Lending Program
provides a continuum of
products tailored to the
needs of small business.
We provide micro -loans to
help a brand new entre-
preneur start a business to
loans of $150,000 or more
to help a growing business
fill a financing gap on a
multi - million dollar real
estate project, and any-
thing in between.
In 2013, MCCD helped 51
entrepreneurs obtain capi-
tal to start, expand or im-
prove their businesses.
Forty -seven of these en-
trepreneurs also received
nearly $1.5 million in direct
loans from MCCD. While
most of MCCD's borrow-
ers were new and emerg-
ing entrepreneurs receiv-
ing loans of $25,000 or
less, one -third of our loans
were made to second
stage businesses that re-
ceived larger loans aver-
aging nearly $70,000.
MCCD's $1.5 million in
direct loans to businesses
leveraged another $14.6
million in capital from oth-
Credit Building Program
Poor credit can be a terri-
ble burden and a cause of
great stress. Partnering
Wth five nonprofit credit
counseling agencies,
MCCD offers credit build-
ing loans to help their
clients immediately begin
improving their credit
scores.
In 2013 we made 75 credit
building loans, bringing
the total to 200 since the
program started in 2009.
The typical credit building
loan applicant is low in-
come and a minority.
About 41 % have no credit
score and another 28%
have scores under 600.
Hilltop Family Chiropractic Clinic, P.A.
Chiropractor Marla Faye
has owned and operated
Hilltop Family Chiropractic
Clinic since 1989. Dr.
Faye recently had the op-
portunity to move her clin-
ic to a larger and more
attractive space in Eagan
that also offered more af-
fordable rent.
t
er sources including
banks, our community
lending partners and own-
er equity.
Starting a small business
is not easy. Often the
technical assistance that
MCCD offers is as valua-
ble as financing. In 2013
our staff provided over
3,500 hours of technical
assistance to 465 entre-
preneurs in the metropoli-
tan area, helping them
improve their planning,
marketing, and financial
management skills.
Despite facing many chal-
lenges, most borrowers
work hard to pay their
credit builder loans on
time. On average they are
increasing their scores by
35 points, with some bor-
rowers seeing even larger
gains.
While Sunrise Banks pro-
vided a portion of what Dr.
Faye needed to relocate
her clinic, MCCD's
$25,000 loan completed
the financing for leasehold
improvements and new
equipment.
Glam Doll Donuts, LLC
Since opening its vintage,
1950s style shop at 26th and
Nicollet in Minneapolis in
February 2013, Glam Doll
Donuts has sold lots and lots
of colorful donuts in outra-
geous flavor combinations
(peanut butter and sirarcha
donuts anyone ?) The brain-
child of Teresa Fox and
Alwyn Birch, the caf6 has
received rave reviews in the
local press.
Every daring and delicious
recipe comes direct from
Teresa's imaginative brain
and every donut is made
from scratch. No mixes are
allowed at Glam Doll.
MCCD provided technical
assistance along with a
$30,000 loan for working
capital, which helped lever-
age additional financing.
Location of Businesses that Received Financing
Y r
� rn�
County
4 of Busi-
nesses
Financed
MCCD Financin
Total Project
Cost
Anoka
2
33,350
693,900
Carver
2
30,000
81,000
Dakota
4
195,000
841,873
Henne in
40
1,157,106
15,757,484
Ramse
3
55,000
55,365
Total
51
$1,470,456
$17,429,622
Get Happy Oriental Food, Inc.
Nick Her and his wife Pa-
daly have operated their
Oriental grocery store in
north Minneapolis since
2001. They have survived
the reconstruction of Low-
ry Avenue, which blocked
access to their building,
and the May 2011 torna-
do, which caused signifi-
cant damage.
The business is an im-
portant asset to north Min-
neapolis and MCCD's
small loan of $5,900
helped the Hers comply
with Minneapolis building
code requirements.
"We honestly
could not have
gotten this far
without all the
help from Open
to Business."
Robbinsdale
Entrepreneur
Metropolitan Consortium
of Community Developers
3137 Chicago Avenue
Minneapolis, MN 55407
612 - 789 -7337
www.mecdmn.org
www.opentobusinessmn.org
For more information:
Open to Business Program
Rob Smolund,
612-789-7337. ext. 260
Credit Building Program
Greg Gramza
612-789-7337. ext. 815
TOM
2013 MCCD Open to Business Program Activity
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Partnerships
• BankCherokee
• Brooklyn Park Development Corporation
• BuildWealth Minnesota
• Central Bank
• CommonBond Communities
• Community Development Financial Insti-
tution (CDFI) Fund
• Highland Bank
• Infinia Bank
• Latino Economic Development Center
• Lutheran Social Services East Side Fi-
nancial Center
• Minneapolis Department of Community
Planning and Economic Development
• Minnesota Department of Employment
and Economic Development
• Neighborhood Development Alliance
Legend
Cm•i Ma y t..c -.
• Onerl rein
• i•{•tYN LOn
- ietMfYlFViW[t
• Neighborhood Development Center
• Northside Economic Opportunity Network
(NEON)
• Northeast Bank
• Project for Pride in Living Center for
Working Families
• Security Bank Waconia
• Sunrise Banks
• U.S. Bancorp Community Development
Corporation
• Venture Bank
• Vision Bank
• Wells Fargo Community Development
Corporation
• Wells Fargo SBA Lending
• William C. Norris Institute