Background:
History: The 2017-2021 Capital Improvement Program (Resolution 16-0338R1, adopted December 13, 2016) authorized capital project 1004499 - Business District Initiative and included $200,000 to support small business districts in suburban Hennepin County. A competitive Request for Proposals (RFP) was released in February 2017 with proposals due in March 2017. Communities were encouraged to develop proposals consistent with previously developed criteria (a similar RFP was issued by the Hennepin County Housing and Redevelopment Authority in 2015; five projects were funded totaling almost $195,000 – targeting business districts in the cities of Hopkins, Long Lake, Maple Plain, Osseo, and Robbinsdale).
Eligible strategies include, but are not limited to:
- business recruitment
- district-wide marketing, branding, and/or promotion initiatives
- district-wide wayfinding planning, design, and implementation
- technical assistance for business districts or individual businesses (including but not limited to special service district or business association establishment; financial, legal, or tax-related services; merchandising, marketing, and social media assistance)
- small business incubators
- design and/or implementation of street furniture
- building facade improvements
Three proposals were received and reviewed by Hennepin County staff based on the following criteria:
- expected outcomes, impacts for businesses, and proposed metrics for tracking outcomes
- significance of the business district to the community
- need for financial assistance
- leverage of funds
- organizational capacity and plan for accomplishing the objectives
- demonstrated support from businesses and property owners
Two of the three proposals rated highly in terms of matching the goals of the program, timeliness, and capacity. These two recommended awards are described below:
City of Hopkins - Agreement A177372 for $30,000
The City of Hopkins will implement a storefront placemaking program for Main Street Hopkins businesses. The program will involve working with 20 businesses to implement a toolkit of activities designed to activate their storefront spaces and enhance the vibrancy of downtown Hopkins. County funding will support program development and outreach to businesses. The City of Hopkins will fund micro-grants to implement the improvements. This award anticipates approximately $21,125 in leverage through direct and in-kind investments by City of Hopkins.
City of Richfield – Agreement A177373 for $50,000
The City of Richfield will implement façade improvement and marketing initiatives for the Penn Avenue business district (Crosstown Highway to 68th Street). Previous investments by the city include public streetscaping and lighting improvements in this corridor. County funding will support continued physical improvements to corridor businesses and district-wide marketing materials. This award anticipates approximately $63,094 in leverage through direct investments by the City of Richfield and a 50 percent local match by participating businesses.
Contract terms include eligible expenditures, project milestones, and reporting of outcomes. Contracts will be reimbursement based.
Current Request: The request is to authorize two grant agreements totaling $80,000 under the Business District Initiative.
Impact/Outcomes: The authorization of these agreements will support economic vitality of business districts and strengthen small businesses in suburban Hennepin County. Combined, these awards leverage approximately $84,000 in matching investments by municipalities, businesses, and other organizations and will impact up to 80 businesses in two suburban business districts.