Coversheet

Housing and Redevelopment Authority Board Action Request
22-HCHRA-0030


Item Description: Neg Agmts with Dakota, Ramsey, Carver and Scott counties for CEO Next Business Institute, total recv $390,000; PR00004490 with Edward Lowe Foundation, 07/19/22-06/30/26, NTE $468,000; PR00004558 with Minneapolis Business Mentors, 07/19/22-12/31/25, NTE $240,000

Resolution:

BE IT RESOLVED, that the Executive Director be authorized to negotiate Agreements A2211302 with Dakota County Community Development Agency in the receivable amount of $90,000, A2211303 Ramsey County Housing and Redevelopment Authority in the receivable amount of $240,000, A2211300 with Carver County Community Development Agency in the receivable amount of $30,000, and A2211301 with Scott County in the receivable amount of $30,000, for participation in a regional CEO Next Business Institute program serving second stage businesses in Hennepin and partner counties within the metropolitan region, during the period July 19, 2022 through December 31, 2025; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreements on behalf of the authority; and that the Controller be authorized to accept and disburse funds as directed; and

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Agreement PR00004490 with Edward Lowe Foundation to provide integrated customized research as an essential component of the CEO Next Business Institute Program serving second stage businesses in Hennepin and partner counties within the metropolitan region, during the period July 19, 2022 through June 30, 2026 with the not to exceed amount of $468,000; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Agreement PR00004558 with the Minneapolis Business Mentors to provide facilitated CEO roundtables and speaker forums as essential components of the CEO Next Business Institute Program serving second stage businesses in Hennepin and partner counties within the metropolitan region, during the period July 19, 2022 through December 31, 2025, with the not to exceed amount of $240,000; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement on behalf of the authority; and that the Controller be authorized to disburse funds as directed.


Background: Entrepreneurs and small businesses are the backbone of our economy: businesses with less than 100 employees represent 95 percent of the total businesses and provide over 40 percent of the jobs in Hennepin County, according to a recent Minnesota Department of Employment and Economic Development (DEED) analysis of Quarterly Census of Employment and Wages data. Supported by the Hennepin County Housing and Redevelopment Authority (HCHRA) since 2011, the CEO Next Business Institute Program (prior years’ programming was known as Economic Gardening) has provided support for second stage businesses. CEO Next provides high-end technical assistance and resources to companies that have grown beyond the startup phase but need access to additional tools to continue their growth. Since 2011, 142 Hennepin County businesses have participated in the second-stage business cohort program, and these businesses have retained over 1,700 jobs and created over 650 new jobs. CEO Next has expanded to become a regional program funded in partnership with other counties within the metropolitan region. The 2022 HCHRA budget (Resolution 21-HCHRA-0046, adopted December 14, 2021) includes funding for CEO Next Business Institute. In 2022, a procurement plan to directly select the Edward Lowe Foundation to deliver a proprietary advanced research program component of CEO Next was approved. The HCHRA released a competitive request for proposals (RFP) seeking a consultant to deliver peer to peer roundtable, program speakers, and associated program administration. Minneapolis Business Mentors was selected by an evaluation committee consisting of representatives from Hennepin, Dakota, Ramsey, and Scott counties and the City of Brooklyn Park. The HCHRA will serve as the fiscal agent and program coordinator for the program, contracting with the Edward Lowe Foundation for $468,000 and Minneapolis Business Mentors for $240,000 for program years 2022-2023/2023-2024/2024-2025, contingent upon annually approved budget authority and partner resources. Dakota County ($30,000 per program year/$90,000 total), Ramsey County ($80,000 per program year/$240,000 total), Carver County ($10,000 per program year/$30,000), and Scott County ($10,000 per program year/$30,000 total) will join the HCHRA ($190,000 per program year/$570,000 total) to form the regional program. Current Request: Authorization to negotiate Agreements A2211302 with Dakota County CDA with a receivable amount of $90,000, A2211303 with Ramsey County HRA with a receivable amount of $240,000, A2211300 with Carver County CDA with a receivable amount of $30,000, and A2211301 with Scott County with a receivable amount of $30,000, to participate in the CEO Next Business Institute Program during the period July 19, 2022 through December 31, 2025; PR00004490 with the Edward Lowe Foundation to provide integrated customized research as an essential component of the CEO Next Business Institute Program during the period July 19, 2022 through June 30, 2026, with a not to exceed amount of $468,000; PR00004558 with Minneapolis Business Mentors to provide facilitated CEO roundtables and speaker forums as essential components of the CEO Next Business Institute Program during the period July 19, 2022 through December 31, 2025, with a not to exceed amount of $240,000. Impact/Outcomes: CEO Next Business Institute is anticipated to serve up to 72 second stage businesses and growth companies in the region, creating or retaining a minimum of 720 jobs.