Coversheet

Housing and Redevelopment Authority Board Action Request
18-HCHRA-0012


Item Description: Agmts A188760 with Scott and A188761 with Ramsey counties for Economic Gardening, 5/9/18-8/31/20, combined recv $175,000; Agmts PR00000261 with Edward R. Lowe Foundation for Economic Gardening, 5/9/18-8/31/20, NTE $265,000, PR00000263 with MCCD for Open to Business, 5/9/18-12/31/20, NTE $135,000

Resolution:

BE IT RESOLVED, that Agreements A188760 with Scott County in the receivable amount of $75,000 and A188761 with Ramsey County Housing and Redevelopment Authority in the receivable amount of $100,000 for participation in a regional Economic Gardening Program serving businesses in Hennepin, Scott and Ramsey counties, during the period May 9, 2018 through August 31, 2020, be approved; that the Chair be authorized to sign the agreements on behalf of the authority; and that the Controller be authorized to receive and disburse funds as directed; and

BE IT FURTHER RESOLVED, that Agreement PR00000261 with Edward R. Lowe Foundation to provide a regional Economic Gardening Program serving businesses in Hennepin, Scott and Ramsey counties, during the period May 9, 2018 through August 31, 2020, with the not to exceed amount of $265,000, be approved; that 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 Agreement PR00000263 with the Metropolitan Consortium of Community Developers to operate the Open to Business Program providing technical assistance and support for entrepreneurs in suburban communities, during the period May 9, 2018 through December 31, 2020, with the not to exceed amount of $135,000, be approved; that 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: History: Hennepin County and the Hennepin County Housing and Redevelopment Authority (HCHRA) support the creation of jobs and a stable and diversified regional economy. Resolution 17-HCHRA-0055 approved the 2018 HCHRA budget which included Economic Gardening and Open to Business programs funding to promote strategic and sustained growth of companies, support entrepreneurs, and retain and create jobs. Economic Gardening - Through the Edward R. Lowe Foundation, a nationally recognized entrepreneurship development organization, the Economic Gardening Program 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. The program provides leadership forums, peer-to-peer executive roundtables, and focused research in areas of marketing, customer service, supply chain and management team development. In Hennepin County, 84 businesses have participated in the Economic Gardening Program from 2011 to 2017, and these businesses have retained 1,700 jobs and created over 650 new jobs. Additionally, 14 businesses in the county are currently participating and will complete the program in June 2018. This year, Ramsey ($100,000) and Scott ($75,000) counties will join the HCHRA ($90,000) to form the 2018 regional program. The HCHRA will serve as the fiscal agent and program coordinator, contracting with the Edward R. Lowe Foundation for $265,000. Under Agreement PR00000261, Edward R. Lowe Foundation will provide intensive Economic Gardening services for up to 26 businesses and include employment reporting at six months, at end of program delivery, and one year post-program delivery. Open to Business - The Open to Business Program provides technical assistance and support for entrepreneurs in suburban communities. Services include business plan development, business startup and expansion feasibility studies, cash flow and financing projections, marketing, preparation of loan requests, and access to capital through a variety of small business loan funds unavailable through traditional lenders. HCHRA support provides one-to-one matching funds for suburban communities to sponsor Open to Business through a master agreement with the Metropolitan Consortium of Community Developers (MCCD). MCCD is a local nonprofit community development organization with a successful track record of direct lending and technical assistance to entrepreneurs, startup and expanding small businesses since 1989. Open to Business is now available in 21 participating suburban Hennepin County communities. Since 2012, Open to Business has assisted 1,900 entrepreneurs in suburban Hennepin County and created or retained 932 jobs as a result of financing. Under Agreement PR00000263, MCCD will provide one-on-one direct technical assistance to participating communities' entrepreneurs and existing businesses and will include reporting of employment outcomes, lending activity, and services provided on an annual basis. The HCHRA's investment will be matched dollar for dollar by participating suburban communities. Current Request: Approve Agreements A188760 with Scott County with a receivable amount of $75,000 and A188761 with Ramsey County HRA with a receivable amount of $100,000 to participate in a regional Economic Gardening Program during the period May 9, 2018 through August 31, 2020; approve Agreements PR00000261 with the Edward R. Lowe Foundation to provide a regional Economic Gardening Program in Hennepin, Scott and Ramsey counties during the period May 9, 2018 through August 31, 2020, with a not to exceed amount of $265,000; and PR00000263 with MCCD to operate the Open to Business Program, during the period May 9, 2018 through December 31, 2020, with a not to exceed amount of $135,000. Impact/Outcomes: Economic Gardening and Open to Business programs are anticipated to serve up to 300 entrepreneurs and growth companies, creating or retaining up to 300 jobs.


Recommendation from County Administrator: Recommend Approval