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HomeMy WebLinkAboutEDA - October 6, 20201685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING October 6, 2020 6:00 p.m. Council Chambers 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (September 1, 2020) 3. Discuss/Consider Approval Round 2 - Small Business Grant Program —Administration 4. Discuss/Consider Acquisition of Property - Administration 5. Adjournment Some or all members of the Andover EDA may participate in the October 6, 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. NDOVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.AN DOVE RM N.GOV TO: Economic Development CC: Jim Dickinson, City Administrator FROM: Michelle Harmer, Deputy City SUBJECT: Approval of Minutes DATE: October 6, 2020 INTRODUCTION 0 The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: September 1, 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 0 I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING— SEPTEMBER I, 2020 -MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Julie Trude September 1, 2020, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila, Jamie Barthel, Valerie Holthus, Ted Butler and Kari Kafer Absent: Commissioner Greg Mueller Also present: EDA Executive Director, Jim Dickinson Community Development Director, Joe Janish 24 APPROVAL OFMINUTES.,, 25 26 27 August 18, 2020, 28 President Trude stated 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 ayes, August 18, 2020, Closed Motion by Barthel. 1 present (Bukkila Meeting: Correct as amended. ;e 2, line 4 verses should be versus. ided by Butler, to approve the minutes as amended. Motion carried 5 and 1 absent (Mueller). Correct as written. to approve the minutes as written. Motion carried 5 ayes, AL ROUND I —SMALL BUSINESS GRANT PROGRAM Mr. Dickinson reviewed the CARES Act grant program. The City received the funds from the State on July 6, 2020. The City can have discretion to determine what the funds can be used for and decided to put a significant amount of the funds toward a program to help small businesses within the City. The City has until November 15, 2020 to spend down the CARES funds, unspent funds would be returned to Anoka County after November 15, 2020. Anoka County would then have 15 days to spend the funds and any remainder would go back to the State. Mr. Dickinson stated the program funding target is $1.8 million, targeting local businesses and non -profits. Round 1 application deadline was August 17, 2020. The City received 29 applications Andover Economic DevelopmentAuthority Meeting Minutes —September 1, 2020 Page 2 1 from local businesses. Staff reviewed each application to determine if the business qualified and 2 then validate with the business to assure they would be able to proof out those expenses meeting 3 the criteria of the program. The 29 applications received requested a total of $1,088,834. After 4 the application review Staff is recommending grants to businesses totaling $972,834. 5 6 Mr. Dickinson indicated Round 2 will kick off September 2"d with an application deadline of 7 September 15`h. That would allow for review and disbursement of funds October 6ch and if there 8 are funds remaining a Round 3 would take place. 9 10 Mr. Dickinson stated the majority of commonality with the applicants was for lease payments and 11 payroll assistance. He indicated fund requests ranged from $1,000 - $100,000. There was a 12 program cap of $50,000. 13 14 President Trude thanked staff for all their hard work on this program. 15 16 Commissioner Kafer asked if a business applied in Round 1 can they apply for Round 2. Mr. 17 Dickinson answered that is correct. 18 19 Mr. Dickinson indicated it will be identified for Round 2 businesses who did not apply for Round 20 1 would have priority over a business who did receive funds in Round 1. 21 22 Commissioner Bukkila asked about non -profits applying. Mr. Dickinson replied non -profits are 23 eligible to apply for Round 2. 24 25 Motion by Bukkila, Seconded by Butler approving the small business grant application list. 26 Motion carried unanimously. 27 28 Mr. Dickinson reviewed the process for Round 2. The application deadline is September 18, 2020. 29 30 Alyson Reidy Newquist, CEO of Unique Dining addressed the EDA. Ms. Newquist thanked the 31 EDA for this program. The business is very grateful for the funds and the funds will allow the 32 business to stay open through the winter. 33 34 President Trade thanked Ms. Newquist for coming in. 35 36 DISCUSSICONSIDER A CQUISITION PROPERTY 37 38 Mr. Dickinson indicated staff had active negotiations with the property owner of 2556 138" 39 Avenue. The negotiations resulted with a purchase agreement signed by the property owner. 40 41 Motion by Butler, Seconded by Holthus approving the purchase agreement for the acquisition of 42 2556 1381h Avenue. Motion carried unanimously. 43 44 Mr. Dickinson reviewed the redevelopment area. 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Andover Economic Development Authority Meeting Minutes —September 1, 2020 Page 3 Mr. Dickinson indicated staff is in active negotiations with the property owner of 2513 Bunker Lake Boulevard. He believes they are within $5,000 of closing the deal. Motion by Kafer, Seconded by Barthel authorizing the Executive Director to exceed the previously approved purchasing price for 2513 Bunker Lake Boulevard buy up to $5,000. Motion carried unanimously. OTHER BUSINESS There was none. Motion by Butler, Seconded by Holthus to adjourn. Motion carried unanimously. The meeting adjourned at 6:35 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary /06W (D 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 Director SUBJECT: Discuss/Consider Approval Round 2 - Andover Small Business Grant Program DATE: October 6, 2020 REQUESTED ACTION The EDA is requested to receive a presentation and consider approval of the Andover Small Business Grants to local businesses. DISCUSSION The Governor 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. The City of Andover has until November 15, 2020 to spend down the CARE 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. 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 was tailored by the EDA to assist those businesses in need of such assistance, the program funding target is $1.8 million. The application deadline for Round 1 funding for that program was August 17`h City Staff reviewed the small business grant applications to determine if the business has qualifying expense, validating the data submitted to determine if the business meets the guidelines of the program. For Round 1 the EDA received 29 applications with requests totaling $1,088,834. Upon Staff recommendation the EDA awarded $972,834 to the qualifying businesses. Round 2 for this program was kicked off on September 1", with an application deadline on September 18'. Staff has conferred with Anoka County to align efforts relative to applications within the City of Andover. For Round 2 the EDA received 27 applications with requests totaling $925,850. City Community Development and Finance Staff did meet to generate a recommendation for approval of $829,650 in eligible grant awards for EDA consideration at an October 6 " Special EDA Meeting. Based on the Round 2 applications utilizing slightly more than the program funding target ($1,802,484), there will be no need to conduct a Round 3. Attachment: Small Business Emergency Grant Applications Summary — Round 2 CITY OF ANDOVER Small Business Emergency Grant Application - Round 2 Business Own/tease Year Started Requested Capped Justification Documentation Included DBA Custom Smiles Dentistry Lease 2020 $ 25,000 $ 25,000 $15,470 - rent (3 mths) -lease agreement $6,600 - payroll (3 mths) -payroll ledgers $1,440- utilities (3 mths) -lease invoice$5,156 due -W-9 Andover Auto Care Inc Own 1997 $ 50,000 $ 30,000 $1,970- payroll (per week) -mortgage pymt $1,000- insurance (per mth) -insurance invoice $2,133 - mortgage pymt -monthly charges & bills -accounting services charge $600 4-5 months -W-9 (unsigned) Pizza Ranch Lease 2013 $ 50,000 $ 40,000 $52,147- payroll (per mth) -payroll ledgers -utility bills -hlth insurance invoice -W-9 Willy McCoys Lease 2015 $ 50,000 $ 50,000 $56,860 - rent (3 mths) -lease agreement -W-9 Pure X Hale LLC Lease 2016 $ 10,000 $ 10,000 $3,000- payroll(bi monthly) -rentinvoice$2,242 $2,182- rent (per mth) -W-9 -payroll ledger Farrell's Extreme Bodyshaping Lease 2012 $ 50,000 $ 50,000 -lease pymts ($8,799 per mth) - P / L (2019) -utilities -HJ Dev A/R -wages ($9,111 per mth) -comcast bill -payroll detail -lease agreement -W-9 Anytime Fitness Lease 2012 $ 20,726 $ 20,726 $1,189 - last pay per visit (per mth) -lease agreement $2,860- memberships lost (per mth) -payroll ledgers/detail -comcast bill -membership cancellations - pay per visit summar -W-9 10 11 12 13 14 15 CITY OF ANDOVER Small Business Emergency Grant Application - Round 2 Business Own/Lease year Started Requested Capped Justification Documentation Included DBA Beef'O'Brady's Lease 2008 $ 45,000 $ 45,000 $30,000 - rent (3 mths) -rent invoice $15,000 - payroll -lease agreement -payroll ledger -W-9 Subway Lease 2004 $ 50,000 $ 50,000 $6,805 - rent (per mth) -rent invoices -W-9 Round Lake Auto Sales Lease 2017 $ 50,000 $ 23,800 $2,200 - lease/utilities (per mth) -P/L $15,000 - inventory payoff -W-9 "wasn't licensed in Andover for 2020 until July, but was licensed in other years** -AFC Corp Receivable Detail $35k due Healthy Vibe Lease 2018 $ 20,000 $ 20,000 $6,700 - rent (4 mths) -lease /landlord letter $948 - internet IS mths) -profit sharing info $400- supplies (per mth) -comcast $3,000 - inventory -expense summary $3,500 - sales tax $6,000 - payroll (per mth) Complete Auto Services Inc. Lease 2016 $ 25,500 $ 25,500 $25,500 - rent (3 mths) -lease(partial) -rent invoices -W-9 Dancin'Feet Own 2006 $ 50,000 $ 40,000 $27,000- mortgage (Nov -Jul) -property tax statement $9,243- association dues (Nov -Jul) -Bus truck lease summary $12,866- utilities / insurance (Nov -Jul) -Comm Loan summary $5,400- bus vehicle lease (Nov -Jul) -West Bend statement $4,556- hith insurance(Nov-Jul) -Building Assoc Fees invoice $21,600- contract instructors (Nov -Jul) -Hlth/Dental invoices $13,500- business expenses -bank acct summary of transactions -W-9 DST] Lease 2008 $ 50,000 $ 50,000 $50,000 - inventory -vendor invoices$52k -W-9 Discovery Dental Lab Lease 2005 $ 50,000 $ 40,000 $2,869 - rent (per mth) -lease $268 -utilities (per mth) -comcast/phone bill $27,360- payroll (per mth) -payroll ledgers $12,000- misc. bills (per mth) -W-9 1E 19 2C 21 22 COY OFANDOVER Small Business Emergency Grant Application - Round 2 Business Own/Lease year Started Requested Capped Justification Documentation Included DBA Roger's Auto Body Inc Own 1973 $ 19,414 $ 19,414 $7,580- Accountant(6 mths) -property tax statement $2,218- compressor loan IS mths) -insurance summary(gtrly) $6,500- multiple utilities(3 mths) -muliple utility copies $1,577 -truck lease (3 mths) -3'ee pay stubs $1,334- software(6 mths) -payroll detail $206 - Cintas (6 mths) -truck lease -W-9 For Kids Only Inc. Own 1990 $ 38,621 $ 38,621 $50,944- payroll(avg. mthly) -property tax statement $4,250 - utilities -P/L $3,729- cleaning supplies -utility bills -payroll ledgers -W-9 Heil Chiropractic Center PA Lease 2012 $ 8,286 $ 8,286 $4,832 - rent (2 mths) -lease agreement $3,454 - payroll (2 mths) -note from building owner -copies of cks - payroll / rent -multiple monthly invoice copies -payroll ledger -W-9 Inspire Academy of Music Lease 2017 $ 44,519 $ 44,519 $44,519- Ind. contractors (Jun -Sep) -lease agreement -monthly CAM invoice -quickbooks detail of contractors -contractor invoices(3) -W-9 Massage &Wellness w/Megan Me Lease 2019 $ 13,571 $ 13,571 $800- rent (2 mths) -lease agreement $70- cleaning supplies -W-9 $101 - thermometer & survey printing -excel activity report $12,600-loss of income -excel monthly budget Andover Lanes Lease 2004 $ 50,000 $ 50,000 $24,000- payroll (per mth) -tax statement $14,000 - rent (per mth) -lease agreement $5,000 - utilities (per mth) $20,000-AP average (per mth) $24,000 - property tax (1/2 yr) Dover Kennel Own 1990 $ 34,000 $ 34,000 $10,200- mortgage(6 mths) -payroll ledger $28,535 - payroll (5mths) -mortgage invoice 23 24 25 26 27 CRYOFANDOVER Small Business Emergency Grant Application -Round 2 Business Own / Lease year Started Requested Capped Justification Documentation Included DBA Lessons Learned Solutions LLC Own 2017 $ 2,213 $ 2,213 $653 - laptop -Illinois Cent of Good Standing $800- annual membership -muliple monthly invoice copies $200- annual mtg/forum -W-9 $560- mthly expenditures -property tax statement -invoices -receipts Courtyards of Andover Lease 2013 $ 50,000 $ 40,000 $36,668- payroll (per pay period) -lease agreement -P/L -rent payment summary -payroll summary -W-9 Fitaholic Fitness - Andover Lease 2018 $ 50,000 $ 40,000 $15,940 - Rent (mthly) -lease agreement $3,720- equipment rental(mthly) -club deposit ledger -equipment lease summary -invoices -W-9 North Forty Digital, Inc. Own 2014 $ 9,000 $ 9,000 $2,500 - payroll (mthly) -property tax statement -payroll (quickbooks) -W-9 North Metro Animal Care & Control 2007 $ 10,000 $ 10,000 $4,260- paryoll (3 mths) -payroll detail $2,669- insurances(3 mths) -W-9 $1,590 - fuel, supplies, vehicle maint $ 925,850 $ 829,650 •�; `C IT 0 0 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners FROM: SUBJECT: DATE: Jim Dickinson, Executive Direct Approve Acquisition of Property October 6, 2020 REQUESTED ACTION The EDA is requested to receive a presentation, consider acquisition of 2513 138th Avenue NW, authorize the Executive Director to sign a purchase agreement and secure the seller's signature as well. The Executive Director is in active negotiations with various properties in the Bunker Lake Boulevard Redevelopment Area. Based on progress to date on negotiations the Executive Director would like to seek authorization to acquire a specific property, 2513 138th Avenue NW. The negotiated purchase price is within the parameters set by the EDA and a purchase agreement is currently being prepared by the City Attorney. Details of other negotiations will be presented at the meeting. In the event the EDA needs to discuss the fine details of acquisition negotiations, the EDA may go into a closed session to discuss that specific parcel.