HomeMy WebLinkAboutEDA - July 21, 2020ANL66V9^-
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
July 21, 2020
6:00 p.m.
Council Chambers
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (June 16, 2020 Regular)
3. Discuss CARES Grant Program
4. Approve Acquisition of Property
5. Other Business (if time permits)
a. Review Commercial Project Activity
6. Adjournment
Some or all members of the Andover EDA may participate in the July 21, 2020 EDA meeting by
telephone or video conference rather than by being personally present at the EDA meeting place at the
Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MN 55304. Members of the public can
physically attend, although there is very limited seating in the City Council Chambers as appropriate
social distancing will be done by the Council and visitors.
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: Economic Development Author � L
CC: Jim Dickinson, City Admini
FROM: Michelle Harmer, Deputy City
SUBJECT: Approval of Minutes
DATE: July 21, 2020
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
June 16, 2020 Regular
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
Michelle Harmer
Deputy City Clerk
Attach: Minutes
2
rd
6 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING-
7 JUNE I6, 2020 - MINUTES
9
10 The Meeting of the Andover Economic Development Authority was called to order by President
11 Julie Trude June 16, 2020, 6:00 p.m., at the Andover City Hall 1685 Crosstown Boulevard NW,
12 Andover, Minnesota.
13
14 Present: Commissioners Sheri Bukkila, Jamie Barthel, Valerie Holthus, Ted
15 Butler, Kan Kafer and Greg Mueller
16
17 Absent: None
18
19 Also present: EDA Executive Director, Jim Dickinson
20 Community Development Director, Joe Janish
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24 APPROVAL OFMINUTES_
25
26 June 2, 2020, Regular Meeting: Correct as amended.
27
28 President Trude stated on page 2, line 10 and 22 the word confirming should be conforming. And
29 page 3, line 4 remove the word could before bill.
30
31 Motion by Barthel, Seconded by Butler, to approve the minutes as amended. Motion carried 5
32 ayes and 2 present (Bukkila and Holthus).
33
34 DISCUSSION OF POSSIBLE RESIDENTIAL IMPROVEMENT LOANS/GRANTS
35
36 Mr. Janish indicated at a,previous EDA meeting members discussed the possibility of a residential
37 improvement loan/grant program. Staff spoke with the City of Coon Rapids related to the City of
38 Coon Rapids two programs... Home for Generations II is a program that provides incentives to
39 homeowners who take on larger home improvement projects. Front Door Program is a program
40 where the purpose is to pay a portion of project costs to homeowners who will make certain
41 exterior improvements to the front of their home.
42
43 Mr. Janish reviewed the two City of Coon Rapids programs.
44
45 Mr. Janish stated staff would like to discuss with the EDA the primary goals of a program that the
46 EDA desires.
47
48 President Trude stated she had spoken to a City of Coon Rapids representative who stated the cost
Andover Economic Development Authority Meeting
Minutes —June 16, 2020
Page 2
benefit is very positive and they saw increased home values which lead to increased tax revenues.
Commissioner Barthel asked if the EDA pursued a program will the funding come out of the EDA
budget. Mr. Dickinson answered the funds would have to be internal funds.
6 Commissioner Barthel asked how many grants per year does the City of Coon Rapids give out.
7 Mr. Janish replied in 2019 the City of Coon Rapids received 400 applications for the Front Door
8 Program and 73 of the applicants received funding and the Home for Generations II Program, 20
9 applicants received funding.
10
11 Commissioner Mueller stated he views the programs as one for the inside of the house and one for
12 the outside of the house. Mr. Janish stated that is correct. He wanted to bring both programs to
13 the EDA for review.
14
15 Commissioner Holthus asked if staff has done any number crunching as to what would be the tax
16 revenue increase. Mr. Janish replied those numbers have not been run.
17
18 President Trude suggested staff put together a program on a small scale and see what kind of
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response we get from property owners.
Commissioner Bukkila stated she does not want to see the City getting into the "loan business".
Mr. Dickinson indicated a grant program is much easier than a loan program.
The consensus of the EDA was to have staff draft a program similar to the Front Door program.
Staff will bring a draft program to a future EDA meeting.
Commissioner Bukkila asked if there is anything that prevents a "house flipper" from applying for
the program. Mr. Janish indicated the program would only qualify owner occupied property, rental
properties would not qualify. Mr. Dickinson stated the program could have a "claw back"
provision in it.
President Trude thanked staff for their research on the programs.
CONSIDER COVID-19 PROGRAMS
Mr. Janish stated this is the third time the EDA has looked at this program. The State of Minnesota
did not pass a bill last regular session to distribute CARES Act funding to local communities, it is
expected this would occur during a special session. Staff would like a program ready to go. The
EDA is asked to review the program.
Commissioner Kafer asked if the 50 FTE is per location or companywide. Mr. Janish replied his
understand the EDA indicated 50 FTE per location.
Commissioner Kafer asked is there an estimate on how much the funding could be. Mr. Dickinson
replied the City could see between 1.6 million to 2.4 million with $250,000 of that going to City
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Andover Economic Development Authority Meeting
Minutes —June 16, 2020
Page 3
related COVID costs. There would be dollars available for a small business assistance program.
He continued if the City does not spend the money by November the remaining funds would go to
Anoka County.
Mr. Dickinson reviewed TIF projects and current and past districts. He explained the TIF fund
could be used as seed money for the program if the tax bill in the special session passes. All new
revenue would go back into the TIF fund.
President Trude asked when the City could see the funding. Mr. Dickinson answered the CARES
Act funding could be distributed by June 30, 2020.
COMMERCIAL PROJECTACTIVITY
Mr. Janish updated on the following:
Upper Midwest Athletic Construction — The applicant has made a few changes by moving the
pond further to the west. Staff is working with them again as part of the review process of the
Commercial Site Plan.
Hearth Development, 1714 Bunker Lake Boulevard — Two tenant spaces remain to be leased.
Clocktower Commons, 15190 Bluebird Street — The final building pad location interest is
relatively low at this point.
Andover High School, 2115 Andover Boulevard — Phase 2 is underway. Footings are being
completed for outdoor education classrooms and new field house.
Interest in Hughes Industrial Park — Interest in this area comes and goes. A I O -acre property
east of the park has been on the market and City Council reviewed with the landowner desired
roadway connections through the parcel at a past workshop.
Andover Public Works Maintenance Building, 1900 Veterans Memorial Boulevard — Working
on punch list items and the move in process has been initiated.
Andover Community Center, 15200 Hanson Boulevard — Multi-purpose rink floor is in place,
mechanical for hockey facilities are being installed, running track is in and bleachers shop plan is
approved.
YMCA Expansion, 15200 Hanson Boulevard — Is under construction, which will include a new
gymnasium. Mechanical rough -in is complete, structure is in place, fireproofing is complete and
elevator shaft is in place.
Beberg Landscaping (self -storage), 13535 Grouse Street — After staff completed the commercial
site plan review, staff was contacted that the developer desires to adjust each building by six inches
which requires a resubmittal of plan sets. RLS is approved by the City Council. Staff continues
Andover Economic Development Authority Meeting
Minutes —June 16, 2020
Page 4
1 to work with deed transfers and easements.
2
3 Legacy Christian Academy, 3037 Bunker Lake Boulevard — Construction is underway to build a
4 three-story classroom addition between the existing buildings to replace temporary classrooms.
5
6 Riverdale Church, 3210 Bunker Lake Boulevard — Continues to work on their interior remodel
7 which they hope will create an "open design" to provide a more modern appeal and allow for more
8 interaction for all ages.
9
10 Integra Dental, 13783 This Street, Suite 400 — Expansion is underway to add additional
11 workstations, the work is almost complete.
12
13 Casey's, 15246 Bluebird Street — A permit was submitted for a full commercial kitchen and
14 interior remodeling.
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16 Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to
17 locate to in Andover.
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19 Margie's Kitchen and Cocktails, 13735 Round Lake Boulevard, Suite 105 — City Council
20 approved a CUP for on -sale liquor license on February 18, 2020. Permit review is complete. Staff
21 received their sign permit application.
22
23 TCF Site — TCF was approached by private parties about acquiring the lot from them. Staff has
24 heard from three parties who have made offers on the site. Two uses would be allowed according
25 to current zoning regulations. A third party contacted City staff indicating they also made an offer.
26 Staff is unsure at this time if TCF has actually sold the parcel.
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28 Train for Andover Station — Staff is attempting to follow up with a potential business on this
29 particular lot. This lot is owned by the Association.
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31 Hanson Boulevard and 1331 Avenue Monument Sign —This should be underway soon. Some
32 items have been ordered and Demars Signs has taken the lead on this project.
33
34 711 Avenue and Bunker Lake Boulevard — Staff continues to work with Quest Development and
35 CenterPoint Energy on acquiring a roadway easement through the CenterPoint property.
36 CenterPoint has agreed to an alignment. The proposed developer is working on an easement
37 description for the property. The proposed developer is working on an easement description for
38 the property. Surveying work for boundaries have been completed according to the developer.
39
40 2557 Bunker Lake Boulevard - Asbestos removal is expected this week.
41
42 Holasek Property — This parcel has become relatively silent at the moment.
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44 COVID-19 — The City has set up a page with several resources for businesses and residents on the
45 City of Andover website.
Andover Economic Development Authority Meeting
Minutes —June 16, 2020
Page 5
1 Overall Marketing — City staff continues to work with parties interested in investing in Andover
2 and marketing all commercial sites. Staff continues to work with Anoka County Regional
3 Economic Development (ACRED) on marketing of the community and Anoka County.
4
5 OTHER BUSINESS
6
7 Mr. Janish stated two companies have approached staff regarding City Code amendments.
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9 Mr. Janish indicated a business owner contacted staff regarding the property at 15825 7th Avenue,
10 Pack Leader Behavior and Training. The business owner has spoke with the owner of Pack Leader
11 Behavior and Training about purchasing the property to store large equipment and leasing the
12 building to Pack Leader. The property is zoned Neighborhood Commercial and does not allow for
13 this type of storage.
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15 Commissioner Holthus asked where the business's home base is. Mr. Janish answered the
16 company is owned by an Andover resident.
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18 President Trude asked how many acres the property is. Mr. Janish stated 2.5 acres.
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20 Commissioner Holthus asked if the neighbors would be notified.
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22 Mr. Janish stated this would be a two-step process that would take some time. First would be to
23 amend the City Code and second the purchaser of the property would need to apply and go through
24 the Conditional Use Permit (CUP) process.
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26 Mr. Janish explained the process.
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28 The EDA directed staff to put the item on a Council Workshop agenda for discussion.
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30 Mr. Janish stated in the Hughes Industrial Park, 3017 161" Avenue, Upper Midwest Athletic
31 Construction approached staff regarding modifications to an Interim Use Permit. City Code does
32 not allow for fencing closer to the front of the building. The property owner would like to place a
33 fence for screening closer to the front of the building.
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35 The EDA directed staff to put the item on a Council Workshop agenda for discussion.
36
37 Mr. Janish indicated both items will be on the June 23rd Council Workshop agenda.
38
39 ADJOURNMENT
40
41 Motion by Bukkila, Seconded by Barthel to adjourn. Motion carried unanimously. The meeting
42 adjourned at 6:58 p.m.
43
44 Respectfully submitted,
45
Andover Economic Development Authority Meeting
Minutes —June 16, 2020
Page 6
Michelle Harmer, Recording Secretary
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissioners
FROM: Jim Dickinson, Executive Din
SUBJECT: Discuss CARES Act Funding
DATE: June 16, 2020
DISCUSSION
The State Governor has approved the distribution of funding from the Federal Coronavirus Aid, Relief,
and Economic Security (CARES) Act to cities. The order distributes money to local governments to
assist with the financial strain caused by COVID-19. The City of Andover received our allocated funds
on July 6, 2020.
Federal guidance indicates that a City can have discretion to determine what the funds can be used for
based on compliance with the broad guidance provided. A program aimed at assisting small businesses
with the costs of business interruption caused by required closure has been tailored to assist those
businesses in need of such assistance. Also, guidance indicates that fund payments may be used for
economic support in the absence of the stay-at-home order if such expenditures are determined by the
City to be necessary. This may include, for example, a grant program to benefit small businesses that
closed voluntarily to promote social distancing measures or that are affected by decreased customer
demand because of the COVID-19 pandemic.
With that being said, the City of Andover can provide the funding to businesses to cover business
interruption. The City of Andover has until November 15, 2020 to spend down the funds. If unable to
meet the November 15, 2020 spenddown deadline, the funding will go to Anoka County. Anoka County
has until December 1, 2020 to spend down the funds. If unable to meet the December 1, 2020 deadline,
Anoka County will have to provide their balance of funds to the State of MN. Staff has consulted with
other municipalities, and Anoka County, to create a draft COVID-19 Emergency Grant Program Policy,
Application, and Agreement package
The EDA is asked to review for approval and discuss any modifications/revisions the EDA would like
to make. Staff would brine the recommendation to the next City Council meeting for formal City
Council approval. After a formal approval by the City Council, Staff will heavily market the program
immediately. To meet the deadlines as before mentioned, Staff would recommend an aggressive
application deadline.in early August 2020. As soon as possible after the deadline, Staff will confer with
Anoka County (or their 3rd party administrator) to align efforts and discuss applications within the City
of Andover. City Community Development and Finance Staff will also meet to generate a
recommendation for approval of eligible grants for a during a Special BLEDA Meeting on September 1
2020.
This timeline will allow the City of Andover the opportunity to possibly conduct a Round Two of
accepting applications and awarding grants in the event the funding is not spend down in Round 1.
Attachments
COVID-19 EMERGENCY GRANT PROGRAM POLICY
Adopted Andover EDA: XXX, XX, 2020
Adopted City Council: XXX, XX, 2020
Andover Economic Development Authority
Table of Contents
Introduction
H. Purpose and Authority
III. Objectives
IV. General Criteria
V. Program Guidelines
VI. Application Process
INTRODUCTION
Small businesses and non -profits are integral and vital to the economic and social fabric of the
City of Andover (City). Accordingly, the Andover Economic Development Authority has
determined to offer locally owned and operated businesses and non -profits, within the
community, a grant opportunity to address working capital needs upon the declaration of a
state of emergency by the State of Minnesota (State) and the City. The COVID-19 Emergency
Grant Program is administered by the Andover EDA.
II. PURPOSE AND AUTHORITY
➢ The purpose of this policy is to establish the Andover EDA's position relating to the use
of the COVID-19 Emergency Grant Program. This policy shall be used as a guide in the
processing and review of applications requesting grant funds.
➢ The criteria are to be used in conjunction with other relevant policies of the City and/or
Andover EDA.
➢ The Andover EDA reserves the right to approve or reject projects on a case-by-case
basis, taking into consideration factors considered appropriate by the City, in addition to
established polices, criteria, and potential benefits. Meeting the criteria does not
guarantee a COVID-19 Emergency Grant Program application shall be approved.
Approval or denial of an application is at the sole discretion of the Andover EDA.
III. OBJECTIVES
The objective of the COVID-19 Emergency Grant Program is to deploy a local pool of funds to
support local small businesses and non -profits in order to ensure viability as they move past the
COVID-19 pandemic and seek to re -open or return to pre -pandemic operations. This may be
accomplished by some or all of the following means:
➢ Provide needed finances to small businesses and non -profits within the community
which have been negatively affected financially as a result of the COVID-19 pandemic;
➢ Ensure the viability of Andover businesses and non -profits moving past this crisis;
➢ Limiting the number of job losses as a direct result of the pandemic by assisting small
businesses and non -profits in returning to their pre -pandemic employment levels;
➢ Limiting the number of small businesses and non -profits which would potentially
permanently close due to COVID-19 pandemic impacts. Thereby also limiting the total
number of potential vacancies in key commercial and industrial areas of the City.
IV. GENERAL CRITERIA
A. ELIGIBLE EXPENDITURES
The COVID-19 Emergency Grant Program may be used for working capital purposes defined as:
1. Paying fixed debts;
2. Payroll costs;
3. Accounts payable;
4. Utility payments;
5. Inventory costs;
6. Paying other direct business-related bills.
B. ELIGIBLE BUSINESS DETAILS
To be eligible to receive a COVID-19 Emergency Grant, a business or non-profit must
demonstrate that its operations have been directly and adversely, negatively, affected by the
COVID-19 Health Pandemic and/or that it operates in a category named in Executive Orders 20-
04 and 20-08. All applicants must meet the following criteria:
1. Have been "in business by March 1, 2020" (Andover EDA shall have authority to
determine "been in business");
2. Be considered an eligible business type, as defined in IV. C of this policy;
3. Have no more than 50 FTE (full-time equivalent) employees at the location address.
Special consideration may be given to businesses and non -profits which utilize
independent contractors and sole proprietors within their business;
4. The small business or non-profit must have a physical address within the City. Proof
of address shall be required when applying;
5. All small business or non-profit applicants must be an allowed use through zoning of
the property or be a legally non -conforming use;
6. The small business or non-profit must be a legal entity registered with the
Minnesota Secretary of State, and be in good standing;
7. Any applicant must not have delinquent taxes, bills, or charges due to the City from
February 1, 2020 or prior.
8. The applicant must demonstrate, through their narrative, how grant funds will assist
their operational response to being negatively impacted by COVID-19.
9. Applicants are strongly encouraged to claim all applicable private and public
insurance and utilize all other sources of applicable assistance available from other
private and public sources. Applicants are strongly encouraged to apply for an
Economic Injury Disaster Loan through the Small Business Administration (SBA), a
Small Business Emergency Loan through the Minnesota Department of Employment
and Economic Development (DEED), and for a grant through Anoka County prior to
applying for this grant.
C. ELIGIBLE BUSINESS TYPES
Eligible small businesses which may apply for the COVID-19 Emergency Grant Program include
businesses which have been deemed non-essential by the State of Minnesota or those which
have faced mandated closures per State of Minnesota orders.
The Andover EDA may allow for non -profits to apply to the COVID-19 Emergency Grant
Program if they also have been deemed non-essential by the State of Minnesota or which have
faced mandated closures per State of Minnesota orders.
D. INELIGIBLE ACTIVIES
The COVID-19 Emergency Grant Program may not be used for the following activities:
1. Agriculture (crop or livestock production, etc.);
2. Purchasing of machinery or vehicles;
3. Moving expenses;
4. Land acquisition for speculation.
REQUIRED DOCUMENTS
Application requirements include:
1. Basic details about the business;
2. Basic employment and annual gross revenue information;
3. Information on current operations including whether the business is currently closed
or is providing reduced services;
4. Narrative descriptions and estimated calculations of the negative impacts on the
business due to COVID-19;
5. Articles of Incorporation, or proof of business existence;
6. Information on the intended use of the grant funds.
H. CONFLICT OF INTEREST
An officer of the City will not have a personal financial interest or personally benefit financially
from the business to be assisted. Minn. Stat. 471.87 and 471.88 provide guidance on conflict of
interest.
GOVERNMENT DATA PRACTICES
Information contained in the application for assistance will become a matter of public record
with the exception of those items protected under Minn. Stat. 13.591.
V. PROGRAM GUIDELINES
::►_u• ► ,
o Actual loss (subject to total funds available and number of application
submitted).
➢ PROOF OF NEED
o All applicants shall be required to provide proof of financial need for grand funds
prior to approval. This includes but is not limited to the previous year's annual
gross revenue, average monthly gross revenue prior to COVID-19, and projected
monthly gross revenue for the next two months.
➢ PROOF OF EXPENSES
o Applicant shall provide proof of eligible expenses requested to be paid with
grant funds (see eligible expenses in IV. A).
➢ DISBURSEMENT OF FUNDS:
o Funds shall be distributed within one to two weeks after a fully executed grant
agreement has been received depending on how grant recipients elect to receive
funds.
➢ TERMINATION:
o The Andover EDA retains the right to terminate any agreement under the COVID-
19 Emergency Grant Program if a grant recipient is found to be in violation of any
conditions set forth in the grant guidelines or grant agreement.
➢ RIGHT TO DENY:
o The Andover EDA retains the right to deny any application for grant funding.
➢ GRANTAGREEMENT:
o Upon a successful grant application being awarded funds, the grant recipient
shall enter into a Grant Agreement with the Andover EDA. Funds will not be
distributed for any grant award until a grant agreement has been executed by all
required parties.
7
➢ REPORTING:
o Asa condition for receiving grant funding, all grant recipients are required to
submit a brief report to the Andover EDA within 60 -days after an executed grant
agreement, specifying how the entirety of the grant funds were utilized and
providing evidence in the form of paid invoices, statements, or similar
documentation.
➢ FUNDING AVAILABILITY:
o The COVID-19 Emergency Grant Program has a limited amount of funds
available. Awards will be provided after an application deadline and selection
process has occurred.
➢ INDEMNIFICATION:
o All grant recipients shall be required to indemnify the City, the Andover EDA, and
any officers acting on their behalf.
VI. APPLICATION PROCESS
All applications for funding from the COVID-19 Emergency Grant Program will be accepted until
4 pm on XX/XX/2020. Applications will be required to be submitted to the Andover EDA
(contact information is listed below). Upon submission of an application, Andover EDA Staff will
review the application to ensure complete information is provided. If additional information is
needed, Staff will request the needed information.
Andover Economic Development Authority
Attn: Jim Dickinson, Executive Director
1685 Crosstown Blvd. N.W.
I•dickinson@andovermn.gov
763.767.5110
Application Timeline:
Deadline 4:00 pm on XX/XX/2020
Review Week of XX/XX/2020
Approval Andover EDA Meeting XX/XX/2020
Andover Economic Development Authority
Small Business Emergency Grant Application
Program Information: All grants awarded are for the purpose of working capital and intended to
replace cash flow used for operating costs that existed at the time of the peacetime emergency
declaration made through Executive Order 20-01. Such costs may include current payroll obligations,
lease or mortgage payments, utilities, accounts payable, and other critical business expenses that can't
be paid as a direct result of the current health emergency. This program is subject to applicable state
and local peacetime emergency executive orders.
Eligibility Notes: All applicants must be eligible businesses with physical operations located in the City
of Andover that have been operating long enough to demonstrate financial viability. Applicants must
demonstrate that they were directly and adversely affected by the COVID-19 related peacetime
emergency Executive Orders 20-04 and 20-08, including being in an industry specifically named by
those executive orders.
Please review and complete entire application prior to submittal.
Applicant Information
1. Business legal name:
Business operating name
(if different)
Type of Business:
NAICS Code (if available):
Business street address:
City:
Mailing address (if different):
City:
Telephone:
Business website:
(Name should be the officially registered name of the business entity.)
State: Zip Code:
State:
Email:
Zip Code:
2. Individual completing the application:
Name:
Title:
Address:
Telephone:
(Owner, Founder, CEO, General Manager, Partner, etc.)
Email:
3. Is your business registered with the Minnesota Secretary of State?
❑ Yes ❑ No
4. Do you own the building where your business is located or have a lease for the space?
❑ Own ❑ Lease
Applicants will need to provide a copy of a lease or statement of lease terms, mortgage
statement, property tax statement, or other documentation to show site control within the city.
S. Business description (product, hours, customers, clients, number of locations, etc.), type (industry)
and brief history of business:
6.
What year did this business begin operating in Andover?
a. Does the business operate (have a physical presence) in another city?
❑ Yes ❑ No
If yes, please specify other location(s):
7. Employment (please include all W-2 employees):
On March 1, 2020:
# Full-time employees: # Part-time employees:
K
Current:
# Full-time employees: # Part-time employees:
Financial Information
8. Annual gross revenue last year?
9. Average monthly gross revenue prior to March 16th?
10. Projected monthly gross revenue?
(Average of next three months)
11. Estimated monthly gross revenue loss due to COVID-19: $
12. Insurance claims filed? ❑ Yes ❑ No ❑ Not Applicable
13. Evidence of submittal, acceptance, approval and/or denial of State and federal emergency
financing program application. Has applicant applied for an Economic Injury Disaster Loan through
the SBA and Small Business Emergency Loan through the Minnesota Department of Employment
and Economic Development (DEED) and/ or other government financing prior to applying for this
grant? ❑ Yes ❑ No
14. Evidence of submittal, acceptance, approval and/or denial of a grant opportunity through Anoka
County. Has applicant applied for a grant through Anoka County?
❑ Yes ❑ No
Please explain below:
COVID-19 Impact
15. Was your business ordered to close or had to significantly reduce its operations by a State of
Minnesota Emergency Executive Order in 2020?
❑ Yes ❑ No
16. Current operating status of business:
❑ open for business and/or operating online
❑ open for business but with reduced hours
❑ reduced operations and/or operating online
❑ closed but still operating onsite, online or remotely
❑ closed but products and or services redeployed to assist current health crisis
❑ completely closed
❑ Other: please explain current status of business if none of the above apply.
17. Briefly explain how the business has been impacted by COVID 19 health pandemic and/or related
Executive Orders and what challenges it is facing.
18. What are your plans to reopen and/or resume operations following the COVID-19 crisis?
19. Grant amount requested
20. Please describe how you intend to use awarded grant funds to support your business during the
COVID-19 crisis. Eligible expenses include current payroll obligations (i.e. may not include
employees who have been laid off), lease or mortgage payments, utilities, accounts payable, and
other critical business expenses that can't be paid as a direct result of the current health
emergency. Please specify eligible expenses expected to be paid with funds. Include proposed
expenses requested to be paid using total amount of grant. For example: Payroll — 2 employees,
2 weeks: $3,000, May Rent - $2,000.
21. Is there anything else that we should be aware of in relation to your application or business?
Preference for Receipt of Funds
Upon notification of any award of funds, how would you prefer to receive payment?
Please choose one of the following options:
❑ Option 1— Check (allow 14 days for processing once application is approved and fully -
executed grant agreement has been received)
Please provide payee name and mailing address:
Check payable to:
Mailing address:
❑ Option 2 — Wire Transfer/Direct Deposit
(allow 72 hours for processing once application is approved)
Please provide all bank information listed below:
Bank name:
Bank address:
Bank routing number (9 digits):
Account name:
Account address:
Checking account number:
Your contact phone number or e-mail for questions:
You can also contact our city finance department directly with this information by e-mail
at L.Brezinka@andovermn.gov
Supporting Documents
The following documents must accompany an application for it to be deemed complete:
Evidence that you own or lease the space your business is located in. Example documentation
includes: copy or statement of lease including terms, mortgage statement, property tax
statement or other document to show proof of occupancy within City of Andover. This could
also include photograph or web map street image of the business location with evidence of
business signage, if applicable.
2. Proof of eligible expense requested to be paid with grant funds. This includes, but is not limited
to, payroll, rent/mortgage/utility/ property tax statements, accounts payable, and other critical
business expenses that can't be paid as a direct result of the current health emergency.
3. A W-9 Form (with signature).
4. Other supporting documentation deemed necessary by the EDA to assist in understanding the
applicant's situation.
Grant Report
All grant recipients are required to submit a brief report to the Andover EDA 60 days after the
date of the executed grant agreement, specifying how the entirety of the awarded grant funds
were utilized. Grant Recipients will be required to provide substantially the following
information:
Business name:
Business street address:
City:
State: Zip Code:
Name and title of person completing form:
1. What was the total amount of grant you received? $,
2. Did you utilize the funds as expected and stated in your application?
❑ Yes ❑ No, please explain
3. Please specify how grant funds were utilized. Include expenses and amounts up to total amount
of grant. For example: Payroll — 2 employees, 2 weeks: $3,000, May Rent - $2,000.
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4. Please describe benefits received from the awarded funds.
5. Briefly explain any ongoing business impacts from the COVID-19 pandemic:
Applicant Acknowledgements
1. The Applicant shall hold the Andover EDA, its officers, consultants, attorneys, and agents harmless
from any and all claims arising from or in connection with the Grant Program or its Application,
including but not limited to, any legal or actual violations of any State or Federal laws.
2. The Applicant recognizes and agrees that the Andover EDA retains absolute authority and discretion
to decide whether or not to accept or deny any particular Grant Application, and that all
expenditures, obligations, costs, fees, or liabilities incurred by the Applicant in connection with the
Grant Application are incurred by the Applicant at its sole risk and expense.
3. The Applicant acknowledges that it has read the COVID-19 Emergency Grant Program guidelines and
understands that if the application is approved for funding, grant funds awarded must only be used
to pay eligible expenses.
4. Financial Assistance Certification: I hereby certify that the Small Business Emergency Assistance is
necessary due to direct and adverse effects related to Executive Orders 20-04 and 20-08.
The undersigned, a duly authorized representative of the Applicant, hereby certifies the foregoing
information is true, correct, and complete as of the date hereof; and agrees that:
All proceeds from the grant will be used for eligible business expenses under the COVID-19
Emergency Grant Program;
Applicant will file a report with the Andover within 60 -days after the date of the executed
grant agreement stating how awarded funds were spent;
Applicant shall be bound by all terms and provisions of the COVID-19 Emergency Grant
Program.
Name/Title of Authorized Business Representative
Signature of Authorized Business Representative
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Date
COVED -19 EMERGENCY GRANT AGREEMENT
This Grant Agreement ("Agreement") is made this _ day of 2020, between
the Andover Economic Development Authority, a public body corporate and politic and political
subdivision of the State of Minnesota ('Grantor"), and a Minnesota
('Grantee").
RECITALS
A. Grantor has duly established its COVID-19 Emergency Grant Program (the
"Program") and has approved policy and guidelines for said Program (the "Program Guidelines").
B. Grantee has submitted an application for a grant (the "Grant Application") pursuant
to the Program Guidelines, and Grantor has approved a grant to the Grantee in the maximum principal
amount of $ (the "Grant") to pay a portion of the costs of qualifying expenditures under the
Grant Guidelines as set forth in the Grant Application, in connection with Grantee's
business located at in the City of Andover, Minnesota (the "City") (the "Grant
Activities").
C. The Grantor and Grantee have negotiated the terms of the Grant, and now desire to
memorialize such terms in this Agreement.
ACCORDINGLY, to induce Grantor to make the Grant to Grantee, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:
1. The Grant Amount. Subject to and upon the terms and conditions of this Agreement,
the Program Guidelines, and the Grant Application (together, the "Grant Documents"), Grantor
agrees to grant to Grantee the sum of and no/100ths Dollars ($ ).
Proceeds of the Grant shall be disbursed for the Grant Activities approved pursuant to the Grant
Documents in accordance with Section 2 hereof.
2. Disbursement of Grant Proceeds.
(a) All Grant proceeds shall be paid to Grantee in accordance with the terms and
conditions of the Grant Documents. Notwithstanding anything to the contrary herein, any
costs of the Grant Activities exceeding the amount to be reimbursed under this Agreement
shall be the sole responsibility of the Grantee.
(b) On the date of closing on the Grant, all Grant proceeds shall be disbursed to
the Grantee. The disbursement of proceeds of the Grant will be made subject to the conditions
precedent that prior to or as of the date of disbursement:
(i) The Grantor has received from Grantee, without expense to Grantor,
an executed copy of this Agreement;
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(ii) Grantee is in compliance with the terms of the Grant Documents.
3. Representations and Warranties. Grantee represents and warrants to Grantor that:
(a) Grantee is duly authorized and empowered to execute, deliver, and perform
this Agreement and to receive the Grant from Grantor.
(b) The execution and delivery of this Agreement, and the performance by
Grantee of its obligations under the Grant Documents, do not and will not materially violate
or conflict with any applicable provision of law and do not and will not materially violate or
conflict with, or cause any default or event of default to occur under, any material agreement
binding upon Grantee.
(c) The execution and delivery of this Agreement has been duly approved by all
necessary action of Grantee, and this Agreement has in fact been duly executed and delivered
by Grantee and constitutes its lawful and binding obligation, legally enforceable against it.
(d) Grantee warrants that it shall keep and maintain books, records, and other
documents relating directly to the receipt and disbursements of Grant proceeds and that any
duly authorized representative of Grantor shall, with reasonable advance notice, have access
to and the right to inspect, copy, audit, and examine all such books, records, and other
documents of Grantee pertaining to the Grant until the completion of all closeout procedures
and the final settlement and conclusion of all issues arising out of this Grant.
(e) Grantee warrants that to the best of its knowledge, it has fully complied with
all applicable state and federal laws reasonably relevant to this Agreement and will continue
to comply throughout the terms of this Agreement. If at any time Grantee receives notice of
noncompliance from any governmental entity, Grantee agrees to take any necessary action to
comply with the state or federal law in question.
(f) Grantee warrants that it will use the proceeds of the Grant made by Grantor
solely for the Grant Activities, and that within 90 days after the date of this Agreement,
Grantee shall provide to Grantor in writing a brief report in substantially the form included in
the Grant Application, specifying how the entirety of the Grant funds have been utilized and
providing evidence in the form of paid invoices, statements, or similar.
4. No Business Subsidy. The parties agree that the Grant is not a business subsidy as
defined in Minnesota Statutes, Sections 1161993 to 1161995, as amended (the "Business Subsidy
Act"), because the assistance is in an amount less than $150,000.
5. Event of Default by Grantee. The following shall be Events of Default under this
Agreement:
(a) failure to complete any part of the Grant Activities within 60 days after the
date of this Agreement;
(b) any representation or warranty made by Grantee herein is false when made;
(d) any material breach or failure of Grantee to perform any material term or
condition of this Agreement not specifically described as an Event of Default in this
Agreement and such breach or failure continues for a period of thirty (30) days after Grantor
has given written notice to Grantee specifying such default or breach, unless Grantor agrees
in writing to an extension of such time prior to its expiration; provided, however, if the failure
stated in the notice cannot be corrected within the applicable period, Grantor will not
unreasonably withhold its consent to an extension of such time if corrective action is instituted
by Grantee within the applicable period and is being diligently pursued until the Event of
Default is corrected, but no such extension shall be given for an Event of Default that can be
cured by the payment of money (i.e., payment of taxes, insurance premiums, or other amounts
required to be paid hereunder).
6. Grantor's Remedy upon Grantee's Default. Upon an Event of Default by Grantee and
after provision by Grantor of written notice, Grantor shall have the right to suspend or terminate its
performance under this Agreement. In addition, Grantee will be ineligible for future grants under the
Program.
7. Indemnification.
(a) Grantee shall and does hereby agree to indemnify against and to hold Grantor,
and its officers, agents, and employees, harmless of and from any and all liability, loss, or
damage that it may incur under or by reason of this Agreement, and of and from any and all
claims and demands whatsoever that may be asserted against Grantor by reason of any alleged
obligations or undertakings on its part to perform or discharge any of the terms, covenants, or
agreements contained herein.
(b) This indemnification and hold harmless provision shall survive the execution,
delivery, and performance of this Agreement and the payment by Grantor of any portion of
the Grant.
(c) Nothing in this Agreement shall constitute a waiver of or limitation on any
immunity from or limitation on liability to which Grantee is entitled under law.
8. Miscellaneous.
(a) Waiver. The performance or observance of any promise or condition set forth
in this Agreement may be waived, amended, or modified only by a writing signed by Grantee
and Grantor. No delay in the exercise of any power, right, or remedy operates as a waiver
thereof, nor shall any single or partial exercise of any other power, right, or remedy.
(b) Assi ent. This Agreement shall be binding upon the parties, their
successors, and assigns. All rights and powers specifically conferred upon Grantor may be
transferred or delegated by Grantor to any of its successors and assigns. Grantee's rights and
3
obligations under this Agreement may be assigned only when such assignment is approved in
writing by Grantor; except that if such assignment is made to an affiliate or subsidiary of
Grantee, Grantee may assign any of its rights or obligations to such affiliate or subsidiary
upon written notice to the Grantor.
(c) Governing Law. This Agreement is made and shall be governed in all respects
by the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of
this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this
Agreement waive any objection to the jurisdiction of these courts, whether based on
convenience or otherwise.
(d) Severabilitv. If any provision or application of this Agreement is held
unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect
other provisions or applications that can be given effect, and this Agreement shall be construed
as if the unlawful or unenforceable provision or application had never been contained herein
or prescribed hereby.
(e) Notice. All notices required hereunder shall be given by depositing in the U.S.
mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or
such other addresses as either party may notify the other):
To Grantor: Andover Economic Development Authority
1685 Crosstown Boulevard
Andover, MN 55304
Attn: Executive Director
To Grantee:
Attn:
(f) Termination. Upon the date of receipt by the Grantor of Grantee's written report on
Grantee's expenditure of Grant proceeds as described in paragraph 3(f) of this Agreement, this
Agreement shall terminate and neither party shall have any further obligation to the other.
(g) Entire Agreement. This Agreement, together with the Grant Documents, which are
incorporated by reference, constitutes the complete and exclusive statement of all mutual
understandings between the parties with respect to this Agreement, superseding all prior or
contemporaneous proposals, communications, and understandings, whether oral or written,
concerning the Grant.
(h) Headings. The headings appearing at the beginning of the several sections contained
in this Agreement have been inserted for identification and reference purposes only and shall not be
used in the construction and interpretation of this Agreement.
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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the
proper officers thereunto duly authorized on the day and year first written above.
GRANTOR:
ANDOVER ECONOMIC DEVELOPMENT
AUTHORITY
By:
Its President
By:
Its Executive Director
[SIGNATURE PAGE TO GRANT AGREEMENT - GRANTOR]
GRANTEE:
Title:
[SIGNATURE PAGE TO GRANT AGREEMENT — GRANTEE]
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissioners
CC: Jim Dickinson, Executive Director
FROM: Joe Janish, Community Development Director
SUBJECT: Approve Acquisition of Property
DATE: July 21, 2020
INTRODUCTION
Andover EDA and staff have discussed acquisition strategy for the redevelopment area of Bunker Lake
Blvd. A recent conversation with the owner of 2527 Bunker Lake Blvd. NW allowed staff to make an
offer on their property. Staff has continued to follow the direction provided by the EDA, and will provide
updated information at our regular meeting including up to the approval of acquisition. This acquisition
would utilize a Purchase Agreement prepared and reviewed by the City Attorney.
ACTION REQUESTED
EDA should consider the ratification of the Purchase Agreement and also include authorization for EDA
Executive Director to sign the Purchase Agreement.
Sk)NDOVE^
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissioners
CC: Jim Dickinson, Executive Directo
FROM: Joe Janish, Community Development ctor
SUBJECT: Other Business - Review Commercial Project Activity
DATE: July 21, 2020
INTRODUCTION
Staff will provide a progress report on ongoing commercial project activity at the meeting.
ANDOVER COMMERCIAL PROJECTS
• Upper Midwest Athletic Construction —The applicant has made a few changes by moving the
pond further to the West. Staff is working with them again as part of the review process of the
CSP. The applicant is working on the property and awaiting the outcome of the potential fence
amendment or will just provide vegetative screening.
• Hearth Development, 1714 Bunker Lake Blvd. NW — Two tenant spaces remain to be leased.
• Clock Tower Commons —The final building pad location interest is relatively low at this point.
• Andover High School, 2018 Additions and Renovations —Second Phase is underway.
• Interest in Hughes Industrial Park— Interest in this area comes and goes. A 10 acre property
east of the park has been on the market and City Council reviewed with the landowner desired
roadway connections through the parcel at a past work session.
• Andover PW Maintenance Building, 1900 Veterans Memorial Blvd. — Working on punch list
items and the move in process has been completed and in full operation, fuel is expected to be
active the week of July 27, 2020. Some final grading and seeding yet to take place. The
Memorial is underway, some finishing materials will be completed by city staff, plaques are
coming in a little slower than anticipated once several are ordered then they will be installed.
• Andover Community Center, 15200 Hanson Blvd. NW — Interior work is occurring. Some site
work is still needed.
• YMCA Expansion — Is under construction, which will include a new gymnasium. Mechanical
rough in is complete, structure is in place, fireproofing is complete, elevator shaft is in place.
• Beberg Landscaping (self -storage) — City Council approved a CUP for additional Mini -storage
on a portion of this location on February 5`h. The buyers of the property had intended to expand
the mini -storage. After staff completed the CSP we were contacted that the developer desires to
adjust each building by 6 inches which requires a resubmittal of plan sets. Developer has been
attempting to record RLS and deed transfers.
• Legacy Christian Academy, Additions & Remodeling, 3037 Bunker Lake Blvd NW —
Kinghom Construction is underway to build a three-story classroom addition between the
existing buildings to replace temporary classrooms.
• Riverdale Church, 3210 Bunker Lake Blvd NW —Continues to work on their interior
remodel which they hope will create an "open design" to provide a more modern appeal and
allow for more interaction for all ages.
• Integra Dental, 13783 Ibis St NW Suite 400 — Expansion is underway to add additional work
stations, the work is almost complete.
• Casey's, 15246 Bluebird St. NW — A permit was submitted for a full commercial kitchen and
interior remodeling.
• Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to
locate in Andover.
• Margie's Kitchen and Cocktails, 13735 Round Lake Blvd NW Suite 105 — City Council
approved a CUP for ON Sale Liquor License on February 18, 2020. Permit review is complete.
• TCF Site — Apparently TCF approached private parties about acquiring the lot from them. Staff
has heard from three parties who have made offers on the site. Two uses would be allowed
according to current zoning regulations. A third party contacted city staff indicating they also
made an offer. Staff is unsure at this time if TCF has actually sold the parcel.
• Train for Andover Station — A few EDA Members had spoke with the St. Cloud Area Rail
Legacy Museum, additional research will continue to be conducted. City staff is attempting to
follow up with a potential business on this particular lot as well. This lot is owned by the
association.
• Hanson and 1331 Ave Monument Sign —This should be underway soon. Some items have been
ordered and Demars signs has taken a lead on this project.
• 7`h Avenue and Bunker — Staff continues to work with Quest Development and CenterPoint
Energy on acquiring an easement through the CenterPoint Property. CenterPoint has agreed to an
alignment. The proposed developer is working on an easement description for the property.
Surveying work for boundaries have been completed according to the developer.
• Hanson Blvd. & 1331 Avenue Welcome Sign — Electric is expected to be run to the site.
• 2557 Bunker Lake Blvd. — Asbestos removal is complete. An adjacent owner has indicated that
their well is tied into ours at this property. This has slowed the demolition as we are investigating
the well situation at this time.
• Holasek Property (near City Hall) —This parcel has become relatively silent at the moment.
• COVID-19 — The city has set up a page with several resources for businesses and residents. City
of Andover Website. See also CARES Grant Program.
• Overall marketing - City Staff continue to work with parties interested in investing in Andover
and marketing all commercial sites. Staff continues to work with the Anoka County Regional
Economic Development (ACRED) on marketing of the community and Anoka County.