Coversheet

Housing and Redevelopment Authority Board Action Request
20-HCHRA-0013


Item Description: Neg Agmt PR00002172 with MCCD to provide technical assistance and small business emergency funds, 04/15/20-04/14/21, NTE $2,040,000; supp app to 2020 HCHRA budget

Resolution:

BE IT RESOLVED, that the unused portion of the 2017 Transit Oriented Development (TOD) program allocation (Resolution 17-HCHRA-0021) to Lander Group (Agreement A177307) for the 38th Street Station project, in the amount not to exceed $400,000 and the 2018 TOD program allocations (Resolution 18-HCHRA-0013) to Newport Midwest LLC (Agreement PR00000365) for The Mariner project, in the amount not to exceed $450,000, and to Clement LLC (Agreement PR00000387) for the 318 Lake Street project, in the amount not to exceed $100,000, be rescinded and reallocated for distribution under the Hennepin County Small Business Relief Program as described herein; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that $950,000 in prior year TOD program project awards as detailed above, $590,000 in TOD program loan repayment proceeds, and $500,000 in 2020 TOD Program budget authority be reallocated for distribution under the Hennepin County Small Business Relief Program as described herein; that a supplemental appropriation to the 2020 Hennepin County Housing and Redevelopment Authority budget in the amount of $1,540,000 be authorized; 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 PR00002172 with the Metropolitan Consortium of Community Developers (MCCD) to provide small business technical assistance and emergency loan funding to assist local businesses survive/recover from the economic impacts of the COVID-19 pandemic under the Hennepin County Small Business Relief Program (CP 1008072), during the period April 15, 2020 through April 14, 2021, with a not to exceed amount of $2,040,000 (including $50,000 for MCCD administration); 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: History: Beyond the repercussions to the health and safety of county residents, the unprecedented economic environment created by the COVID-19 pandemic has resulted in massive business shutdowns, income loss, and unemployment. The necessary closure of businesses during the COVID-19 crisis threatens to devastate a generation of small businesses in Hennepin County. Some of the deepest impacts are likely felt by Hennepin County’s main street businesses, including the 4,500 foodservice, retail, and personal care businesses impacted by the first closures. The Metropolitan Consortium of Community Developers (MCCD) is currently under contract with the Hennepin County Housing and Redevelopment Authority (HCHRA) and 21 municipalities in Hennepin County to operate Open to Business and provide technical assistance and access to capital to small businesses throughout the county. Under the current state of emergency, MCCD is also one of several community-based nonprofit lenders administering the State of Minnesota’s Small Business Emergency Loan (SBEL) Program. MCCD is therefore uniquely positioned to partner with the HCHRA to administer the newly created Hennepin County Small Business Relief Program (CP 1008072), providing up to $7,500 in one-time emergency forgivable loan funding to sustain operations in for-profit businesses that: · are locally owned and operated; · have a physical establishment in Hennepin County; · have at least one and no more than 20; and · under $1 million in annual revenue. The Hennepin County Small Business Relief Program will impact approximately 265 small businesses and will improve their capacity to survive/recover from the current crisis. Funds will help businesses pay for critical operating expenses such as utilities, rent payments, mortgage payments, and payments to suppliers. Preservation of existing small businesses with a physical location in Hennepin County prevents potential future blight scenarios. Funding for Agreement PR00002172 will come from the 2020 HCHRA Fund 37 Transit Oriented Development (TOD) program funds ($500,000) and prior years TOD program loan repayments and unused project awards ($1,540,00). Current Request: This request is for authorization to negotiate Agreement PR00002172 with the MCCD to administer the newly created Hennepin County Small Business Relief Program (CP 1008072) during the period April 15, 2020 through April 14, 2021, with the not to exceed amount of $2,040,000 (including $50,000 for MCCD administration). Impact/Outcomes: Approval of this agreement will assist approximately 265 Hennepin County small businesses and prevent future blight.


Recommendation from County Administrator: Recommend Approval