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HomeMy WebLinkAbout2020-04-16 HRA Regular Meeting PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota VIRTUAL MEETING Thursday, April 16, 2020 7:30 AMListen/make live testimony:800-374-0221, enter code 1078673. Watch meeting: https://www.edinamn.gov/746/Watch-a-City-Meeting or Facebook Live at https://www.facebook.com/edinamn/. I.Call to Order II.Roll Call III.Pledge of Allegiance IV.Approval of Meeting Agenda V.Community Comment During "Community Comment," the Edina Housing and Redevelopment Authority (HRA) will invite residents to share new issues or concerns that haven't been considered in the past 30 days by the HRA or which aren't slated for future consideration. Individuals must limit their comments to three minutes. The Chair may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on today's agenda may not be addressed during Community Comment. Individuals should not expect the Chair or Commissioners to respond to their comments today. Instead the Commissioners might refer the matter to sta. for consideration at a future meeting. VI.Adoption of Consent Agenda All agenda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of such items unless requested to be removed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be removed from the Consent Agenda and considered immediately following the adoption of the Consent Agenda. (Favorable rollcall vote of majority of Commissioners present to approve.) A.Minutes: Draft Minutes of Regular Meeting March 12, 2020 B.Approve Payment of Claims VII.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.Authorizing Small Business Emergency Assistance Program VIII.Correspondence A.Correspondence IX.HRA Commissioners' Comments X.Executive Director's Comments XI.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need assistance in the way of hearing ampli:cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: April 16, 2020 Agenda Item #: VI.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Jennifer Garske, Executive Assistant Item Activity: Subject:Minutes: Draft Minutes of Regular Meeting March 12, 2020 Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve the regular meeting minutes of March 12, 2020. INTRODUCTION: See attached meeting minutes of March 12, 2020. ATTACHMENTS: Description HRA Draft Meeting Minutes March 12, 2020 Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY MARCH 12, 2020 7:30 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:30 a.m. II. PLEDGE OF ALLEGIANCE III. ROLL CALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton and Chair Hovland. Absent: None. IV. APPROVAL OF MEETING AGENDA – AS PRESENTED Motion made by Commissioner Fischer, seconded by Commissioner Anderson approving the meeting agenda as presented. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. APPROVAL OF CONSENT AGENDA – AS PRESENTED VI.A. Minutes of the Regular Meeting of February 13, 2020 Motion made by Commissioner Anderson, seconded by Commissioner Staunton approving the consent agenda as presented. Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. 2020 AFFORDABLE HOUSING PROGRAM POLICY GUIDE – APPROVED AS AMENDED The Board recognized members of the Housing Task Force in the audience. Affordable Housing Manager Stephanie Hawkinson explained the Affordable Housing Program Policy Guide was updated in response to property managers’ questions and feedback received from site visits over the past year. The Guide was intended to assist owners and managers of new multifamily housing developments that include affordable units. On Dec. 13, 2018 the HRA approved the first Guide and directed staff to make changes to tailor the language to fit the City’s New Multifamily Affordable Housing (“Policy”), which was approved by the Edina Housing Foundation. In the year since the Policy was included in lease agreements, the City’s third-party compliance consultant, Affordable Housing Connections (AHC), has met with property managers and reviewed tenant files for the affordable units to confirm compliance with the Policy. Based on questions and concerns that arose, the Guide has been revised in order to add clarity. Ms. Hawkinson said it was important to note that most of the buildings that currently include affordable units were approved prior to the Policy being updated in March 2019 and prior to the approval of the Guide. Therefore, the affordability requirements were based on the resolutions and loan agreements adopted for each individual development and might not include all the requirements in the current Policy or Guide. To assist with these discrepancies, AHC created summary sheets for each development and of note the following updates were shared that included definition of student household, utility allowance and income verification. The Board confirmed building managers were contacted and involved throughout the review then referred to the 60-day notice period in the event of a rent increase and suggested 90 days as an alternative to allow tenants to prepare for a rent increase. Ms. Hawkinson said the time period was discussed by the Task Force but Minutes/HRA/March 12, 2020 2 concluded most of those tenants tend to be over income at 140 percent AMI, which was twice the median income and a longer period would tie up an affordable unit for up to six months for someone who really needs it. The Board thanked everyone for their work on the Guide and asked about the largest area of concern from property owners. They inquired about the calculations table and expenses that could rise and how the property owner would charge less than the regular $1,200 rent to meet the cap. Ms. Hawkinson said most owners wanted to comply and provide the units to the community and said income verification was the most difficult component of the Guide and how to address Social Security income, child support and other incomes, then explained how the rent cap worked which was calculated at rent minus utilities and parking. She explained how changes were based on HUD documents and streamlined to ensure everyone was complying with the same regulations and confirmed the revised document had not been shared with landlords yet but they were aware of the amendments and noted were included with The Laurient at 4500 project and that future recommendations would be brought forward as received. She spoke about housing choice vouchers and how some properties did not want to accept those vouchers because of the additional verification steps required. The Board further discussed the burden of 60-days notice vs. 90-days notice and noted the issue would always be process and could be addressed. Motion made by Commissioner Fischer, seconded by Commissioner Brindle, to approve the proposed changes to the 2020 Affordable Housing Program Policy Guide with the additional modification to Section 1.08 Rent Increases increasing the time period from 60 days written notice to 90 days written notice. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. VII.B. PRESENTATION ON MAXFIELD HOUSING STUDY – RECEIVED Ms. Hawkinson introduced Mary Bujold, President of Maxfield Research and Consulting, LLC, to present the Edina market study. She explained the study approved in 2019 examined and analyzed growth trends, demographic characteristics and economic factors, current housing market conditions (owned and rental formats) and determine the potential demand to support additional housing products in the City. It would also recommend housing strategies designed to maintain and sustain the existing housing stock. Ms. Bujold shared their work for the past several months and said a presentation was made to the Housing Task Force and their comments were incorporated into the report. She shared a background of Maxfield and project scope that included an analysis of housing needs, approach, project deliverables that included short- and long- term housing needs recommendations for guiding future housing development and commented on existing tools/policies to achieve goals with key dates for completion soon. She shared population growth rates of 12 percent from 2010 to 2020, which was higher than expected and spoke about density and the multi-family development that resulted. She then spoke about Primary Market Area that included the adjacent and surrounding cities and included a portion outside that defined area due to mobility across seven-county metro area. The Board commented about statistics in the U.S. growth rate of metro areas and how 50,000 people per week were moving from rural America to metropolitan areas in response to the robust job market. Ms. Bujold shared the City’s highest growth rate would be among seniors ages 65-74 over the next 10 years, which was not unique to Edina and how the housing size increased but was now decreasing and would continue to 2030. She said living alone was the largest group, with married with a child group increasing, which was a little unusual in Edina and how housing prices were higher in Edina. She said reasons for the increase was because people were moving into the community and high ratings of Edina’s school district. The Board asked if older residents were moving out to make room for young families. Ms. Bujold confirmed that was the case and said they expected that shift to continue and move at an earlier age than in the past and confirmed preference among married with children to single-family homes and not multi-family housing. Minutes/HRA/March 12, 2020 3 The Board referred to the 822 tear-downs from 2009-2018 and suggested two-story, four-bedroom homes were created, which accounted for atypical movement of family life and regenerated the City with younger families and how people were not aging in place. Ms. Bujold spoke about median household income that was 39 percent higher than Hennepin County and the Twin Cities area and projected to increase 2 percent annually by 2025 to $118,770, then shared 2020 median income for non-seniors was $154,995 and seniors was $71,096, with income disparity by tenure of $129,670 for owners and $59,886 for renters. She shared employment data of roughly 45,000 jobs and key industries that included education and health services, professional and retail and average annual wage of $65,104, similar to Hennepin County and surrounding areas. Ms. Bujold said 92 percent of jobs were held by commuters and 26 percent commute to Minneapolis, then spoke about residential construction being strong and shared data of an average 265 total units per year from 2010 through 2019. She spoke about tear-downs and average values and how nearly all new homes rebuilt were valued at more than $1 million and if that trend would be expected to continue. The Board asked about price burden on single-family homeowners vs. household income. Ms. Bujold spoke about housing affordability and cost burdens and noted low rental housing vacancy would likely change in the future with 5 percent vacancy equaling market equilibrium. She shared data on the number of market-rate units and affordable/subsidized units and rents and the importance of a vacancy rate that allowed for turnover and households that want to shift. She summarized 42 percent of Edina renters were housing-cost burdened and 22 percent of owners were burdened, which was comparable to the metro area with high proportions being 65+ then shared reasons why, which included lower home values, increased property taxes, and home repairs. She shared senior housing inventory data that included 2,311 units in 23 properties with an 5.8 percent overall vacancy rate and how home prices were the highest in surrounding areas with median home values of $465,000 and active listings that showed low inventory. She spoke about new construction and pricing overall then reviewed naturally occurring affordable housing (NOAH) and demand that included household growth and tenure, turnover, demand by product and preferences. The Board asked what was driving the per-square-foot costs for multi-family compared to the metro area. Ms. Bujold replied some was due to the amenities and much larger units as well as more detached villa styles and underground parking and how the demand was based on both an independent look and Metropolitan Council projections and noted demand was for a fully-developed community, which was not able to be satisfied. She shared recommendations based on home rebuilds in 2019 and how lot supply was highly constrained and the increased demand for multi-family for sale and attached products and how condos were making a comeback. She shared recommendations that included rental housing recommendations of 300 units with 250 affordable and 50 subsidized, senior housing of 1,600 units over the next 10 years across all service levels then summarized findings and ways to produce affordable housing through a mix of tools then commented on economic conditions and unknowns with the current pandemic impacts. The Board discussed gross domestic product and U.S. skepticism, as well as national policies on immigration and jobs and asked questions about demand drivers and overall determining demand. Ms. Bujold outlined the methodology and how it followed industry benchmarks and shared how the metro area had a consistent balance over the past 40 years between ownership and rental, which was just starting to increase now with younger residents staying in rental longer both due to not wanting to own but some who could not afford to own. The Board asked about the recommendation for 3,000 units to 2030 short-term and how that compared to what was in place now and in the pipeline. Ms. Bujold commented about the number of detached single-family homes rented, which tended to be older units and during the 2008 downturn how they went into foreclosure and ended as rental units and the difficulty to move them back to single-family ownership without partnerships or other public intervention and how they were not always successful. She stated Edina would not be able to satisfy all demand itself and how the City needed to be sensitive in terms of recommendations and not flood the market and allow time for units to absorb and create another rent level as well. The Board asked if no changes to additional supply what would happen. Ms. Bujold said prices would just increase because Edina was a very desirable community with a strong single-family ownership market already. She referred Minutes/HRA/March 12, 2020 4 to one adjustment they would make in the report with regard to one apartment project that would not be moving forward then commented on confidence in lenders and investors in future projects and the Federal Reserve’s reaction to lowering interest rates to stave off significant economic downturns that resulted in vacancy rates rising to 10 percent or above as long as mortgage rates remain this low. The Board thanked for the good work and looked forward to the final report, which would be a valuable tool for the City. VIII. CORRESPONDENCE – RECEIVED IX. HRA COMMISSIONERS’ COMMENTS - RECEIVED X. EXECUTIVE DIRECTOR’S COMMENTS XI. ADJOURNMENT Chair Hovland adjourned the HRA meeting at 8:39 a.m. Respectfully submitted, ___________________________________________ Scott Neal, Executive Director Date: April 16, 2020 Agenda Item #: VI.B. To:Chair & Commissioners of the Edina HRA Item Type: Claims From:Don Uram, Finance Director Item Activity: Subject:Approve Payment of Claims Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Motion to approve payment of claims for HRA Check Register 01.16.20-04.09.20 TOTAL $95,764.52. INTRODUCTION: Payment of claims are attached. ATTACHMENTS: Description Claims Register 4/8/2020CITY OF EDINA 16:15:44R55CKS2LOGIS600V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 4/9/20201/16/2020 - Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 9293 1/30/2020 100858 LOGIS 09210 146103114.95 9210OPENDOORSEDINA DOMAIN 511928 48246 PROFESSIONAL SERVICES HRA ADMINISTRATION 114.95 442909 1/16/2020 100049 EHLERS & ASSOCIATES INC. 09232 146136122.50 9232TIF REPORTING - 2018 510899 81377 PROFESSIONAL SVC - OTHER CENTENNIAL TIF DISTRICT 122.50 443013 1/16/2020 101016 SRF CONSULTING GROUP INC 09232 146710392.70 9232NORTH RAMP EXP - OWNERS REP 511004 10930.00-28 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 392.70 443053 1/23/2020 146661 AFFORDABLE HOUSING CONNECTIONS, INC 09238 1461361,800.00 9238AFFORDABLE HOUSING SYSTEMS 511506 2020-19 PROFESSIONAL SVC - OTHER SOUTHDALE 2 TIF DISTRICT 1,800.00 443232 1/30/2020 100730 DORSEY & WHITNEY LLP 09238 146131852.50 92387075 AMUNDSON 512076 3551474 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 09238 1461311,472.50 92384040 W 70TH 512079 3551475 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 2,325.00 443238 1/30/2020 100049 EHLERS & ASSOCIATES INC. 09210 142066345.00 9210PENT SOUTH - LOOKBACK REVIEW 511994 82541 ESCROW DEPOSITS HRA ADMINISTRATION 09238 146136480.00 9238TIF MEETING 6600 FRANCE 511995 82464 PROFESSIONAL SVC - OTHER SOUTHDALE 2 TIF DISTRICT 09238 1461363,480.00 9238SD 2 TIF MOD - 4040 W 70TH 512077 82542 PROFESSIONAL SVC - OTHER SOUTHDALE 2 TIF DISTRICT 09238 1461365,000.00 9238AMUNDSON TIF CREATION 512078 82594 PROFESSIONAL SVC - OTHER SOUTHDALE 2 TIF DISTRICT 9,305.00 443376 1/30/2020 120784 SIGN PRO 09210 14671091.32 9210CENTER RAMP SIGNAGE 512048 14877 EQUIPMENT REPLACEMENT HRA ADMINISTRATION 09210 146710139.41 9210CENTER RAMP SIGNAGE 512049 14893 EQUIPMENT REPLACEMENT HRA ADMINISTRATION 230.73 443775 2/13/2020 146781 DEED 09210 14610331,250.00 9210DEED REPAYMENT - PENT. PARK 513358 00000586940 PROFESSIONAL SERVICES HRA ADMINISTRATION 31,250.00 443865 2/13/2020 130988 NEUENDORF, BILL 09210 146107288.84 9210MILEAGE REIMBURSEMENT 513197 MILEAGE 2019 MILEAGE OR ALLOWANCE HRA ADMINISTRATION 09210 14610748.72 9210MILEAGE REIMBURSEMENT 513198 MILEAGE 2019 2 MILEAGE OR ALLOWANCE HRA ADMINISTRATION 09210 146107352.64 9210MILEAGE REIMBURSE 513199 MILEAGE 2019 3 MILEAGE OR ALLOWANCE HRA ADMINISTRATION 09210 146104746.76 9210CONFERENCE REIMBURS 513200 EXPENSE 2019 CONFERENCES & SCHOOLS HRA ADMINISTRATION 09210 14610442.00 9210CONF. EXPENSE 513201 EXPENCE 2019 2 CONFERENCES & SCHOOLS HRA ADMINISTRATION 1,478.96 444032 2/20/2020 100730 DORSEY & WHITNEY LLP 09238 146131340.00 92384100 W 76TH LEGAL 513844 3557655 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 4/8/2020CITY OF EDINA 16:15:44R55CKS2LOGIS600V 2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 4/9/20201/16/2020 - Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 09238 1461311,162.50 92384040 W 70TH LEGAL 513845 3557661 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 09238 1461314,874.50 92384040 W 70TH LEGAL 513846 3557654 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 09210 1461313,722.50 9210MARKET ST TIF LEGAL 513847 3557653 PROFESSIONAL SERV - LEGAL HRA ADMINISTRATION 09238 1461311,210.00 9238AMUNDSON AV LEGAL 513849 3557660 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 09238 1461311,746.50 9238SOUTHDALE 2 RH PAD LEGAL 514030 3557652 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 13,056.00 444036 2/20/2020 100049 EHLERS & ASSOCIATES INC. 09240 126136600.00 9240PENT VILL - FIN REVIEW 513852 82910 PROFESSIONAL SVC - OTHER PENTAGON PARK DISTRICT 600.00 444163 2/20/2020 120784 SIGN PRO 09210 14640646.47 9210CENTER RAMP TEMP SIGNS 513871 14967 GENERAL SUPPLIES HRA ADMINISTRATION 46.47 444243 2/27/2020 100664 BRAUN INTERTEC 09232 1467101,848.00 9232NORTH RAMP ENVIRO 3944 RETAIL 514708 B203190 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 1,848.00 444303 2/27/2020 101503 HENNEPIN COUNTY PROPERTY TAX 09238 1461027,798.61 9238HENN CNTY ADMIN 514542 24-2019-AC #2 CONTRACTUAL SERVICES SOUTHDALE 2 TIF DISTRICT 09240 126102974.93 9240HENN CNTY ADMIN 514542 24-2019-AC #2 CONTRACTUAL SERVICES PENTAGON PARK DISTRICT 09242 126102678.85 9242HENN CNTY ADMIN 514542 24-2019-AC #2 CONTRACTUAL SERVICES GRANDVIEW 2 TIF DISTRICT 09241 126102539.68 9241HENN CNTY ADMIN 514542 24-2019-AC #2 CONTRACTUAL SERVICES 66TH WEST HOUSING TIF DIS 09243 126102566.40 9243HENN CNTY ADMIN 514542 24-2019-AC #2 CONTRACTUAL SERVICES 50TH AND FRANCE 2 TIF DIS 10,558.47 444632 3/12/2020 114475 ARMOR SECURITY INC. 09248 122040165.00 92484100 SECURITY 515815 227453 CONTRACTS PAYABLE WEST 76TH STREET TIF DIST 165.00 444661 3/12/2020 146885 CONSTRUCTIVE BUILDING ADVISORS, LLC 09232 1467101,601.25 923250 FR CENTER RAMP INSP 515549 2019-07-1 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 1,601.25 444940 3/19/2020 146951 MIDWEST ART CONSERVATION CENTER 09248 126102545.00 9248ART PRESERVATION 516544 16226 CONTRACTUAL SERVICES WEST 76TH STREET TIF DIST 545.00 445026 3/19/2020 123129 TIMESAVER OFF SITE SECRETARIAL INC. 09210 146136148.50 9210HRA FEB. 13 516557 M25475 PROFESSIONAL SVC - OTHER HRA ADMINISTRATION 148.50 445367 4/2/2020 100664 BRAUN INTERTEC 09232 1467101,577.60 9232NORTH RAMP ENVIRO REMEDIATION 517394 B206285 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 1,577.60 445396 4/2/2020 100730 DORSEY & WHITNEY LLP 4/8/2020CITY OF EDINA 16:15:44R55CKS2LOGIS600V 3Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 4/9/20201/16/2020 - Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 09232 1461311,938.48 9232NORTH RAMP LEGAL 517456 3564909 PROFESSIONAL SERV - LEGAL CENTENNIAL TIF DISTRICT 09238 14613113,895.00 92387075 AMUNDSON LEGAL 517626 3564917 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 15,833.48 445447 4/2/2020 147112 JOHNSON, KEN 09300 1461022,300.00 93104D PROGRAM 517517 4D PARTICIPATION CONTRACTUAL SERVICES HRA AFFORDABLE HOUSING EX 2,300.00 445479 4/2/2020 147113 MINNESOTA HOUSING 09300 146102150.00 93104D PROGRAM 517516 LIRC 2020 APP CONTRACTUAL SERVICES HRA AFFORDABLE HOUSING EX 150.00 445639 4/9/2020 105693 CITYSPRINT 09248 12610319.91 9248COURIER FOR AEON DOCS 518082 44641 PROFESSIONAL SERVICES WEST 76TH STREET TIF DIST 19.91 20200210 2/10/2020 129962 US BANK - CREDIT CARD 09240 126104295.00 9240PENT PARK - EHLERS CONF 514080 WILLIAM 1/22/2020 199 CONFERENCES & SCHOOLS PENTAGON PARK DISTRICT 295.00 Report Totals 95,764.52 Date: April 16, 2020 Agenda Item #: VII.A. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Authorizing Small Business Emergency Assistance Program Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve the local Small Business Emergency Assistance Program and authorize the HRA Executive Director to execute loan agreements with impacted businesses. INTRODUCTION: This item pertains to local efforts to support local businesses as they bear the impacts of temporary business closures and other impacts due to the COVID-19 pandemic. This item intends to modify the HRA budget to fund a temporary program that will support local businesses with forgivable loans in 2020. The program is more fully described in the attached documents. Staff recommends that this new program be approved. ATTACHMENTS: Description Staff Report Program Overview Program Application draft Loan Agreement Template Scorecard Sample April 16, 2020 Chair and Commissioners of the Housing and Redevelopment Authority Bill Neuendorf, Economic Development Manager Proposed Small Business Emergency Assistance Program Information / Background: The disruption to most businesses due to the COVID-19 pandemic is extensive. The vast majority of businesses in Edina are temporarily closed. Those businesses that remain open are experiencing dramatic declines in foot traffic and revenue. In recent weeks, Federal and State lawmakers have authorized financial assistance. These recovery and relief funds are being administered by the US Small Business Administration (SBA) and Minnesota Department of Employment and Economic Development (DEED). The establishment of a local small business emergency assistance fund is recommended to further assist local businesses that may not easily be awarded federal or state assistance yet still make a significant contribute to the vitality of Edina. Proposal: The Small Business Emergency Assistance Program will provide forgivable loans to help local small businesses that operate with between 2 and 25 full-time equivalent (FTE) employees and annual revenue not to exceed $1,000,000. Businesses of this scale are on the lower end of the range covered by the SBA and DEED programs. Although these businesses are small, they add to the vitality of business districts in Edina. Forgivable loans will be provided to eligible businesses to cover 2 months of operating expenses. The maximum loan amount will be $10,000. There is no fee to apply to this program and the loans will bear no interest. The loans will be forgiven for businesses that remain operational two years from the date of the Loan Agreement provided that they remain in Edina and retain at least 75% of their employee positions. STAFF REPORT Page 2 Up to $100,000 from the 2020 HRA property tax levy is recommended to be used to support local businesses. These funds were originally intended to partially fund staff and a new façade improvement program. With the creation of this new program, partial funding for staff will be shifted to the administrative expenses of TIF Districts. The façade improvement program will be placed on hold for a future year. The Small Business Emergency Assistance Program is created based on three simple principles: 1) Provide financial assistance to small businesses in Edina that rely on heavy foot traffic for success 2) Keep the application process and program rules simple 3) Distribute funds as quickly as possible A draft of the application checklist is attached. While the application is fairly simple, the program has also been crafted to filter out businesses that may have been struggling prior to the pandemic. Businesses that were behind in rent payments or vendor payments prior to the COVID-19 pandemic are not eligible. Businesses will also be required to disclose lease terms and annual revenue to ensure they intend to stay in Edina and do not exceed the revenue cap. The program also has mandatory follow-up reporting requirements so that the HRA can evaluate the effectiveness of the program. The attached presentation contains other key details of the program. The need for this type of program and the implementation details have been crafted in consultation with many peer groups including: • Edina Chamber of Commerce • 50th & France Business Association • Open to Business program • Economic development peers from cities and counties in the Twin Cities The attorneys at Campbell Knutson will prepare a Loan Agreement template that can be used to execute the loans. It is recognized that this forgivable loan program will essentially operate like a grant. It is possible that some businesses might fail even with local financial support. In the event of business failure, it is highly unlikely that the HRA will recover the principal loan amount. While this program was not originally anticipated in the 2020 Budget and does not conform to Edina’s typical Business Subsidy policy, staff recommends the program be established in hopes of keeping vibrant businesses open for customers when the pandemic is over. Staff further recommends that the HRA Executive Director be authorized to execute the Loan Agreements so that funds can be distributed as soon as possible. # # # Proposed Small Business Emergency Assistance Program Bill Neuendorf Economic Development Manager Presentation to Housing & Redevelopment Authority April 16, 2020 To provide temporary support to small local businesses adversely impacted by COVID-19 pandemic Purpose EdinaMN.gov 2 •Recommend $100,000 •-forgivable loans to small businesses •2020 HRA Property Tax Levy -Eliminate anticipated Façade Improvement Program Program Funding EdinaMN.gov 3 Minimize Red Tape •Simple application process •Quick payment •Provide local support to help businesses recover and stay in business after consumer spending and public behavior normalizes •Focus on gaps in US and MN economic recovery programs •Help viable businesses but do not bail out businesses that were on the rocks prior to the pandemic Program Goals EdinaMN.gov 4 •2 x average monthly operating expenses •$10,000 maximum •Only one grant per business •Owner of multiple businesses can only receive one grant Small Business Financial Support EdinaMN.gov 5 Acceptable to layer Edina loan in addition to funds from SBA, DEED and others No-interest loan with deferred payments for 24-months Financial Support EdinaMN.gov 6 Forgivable if: 1.Business operating in 24-months 2.At least 75% of FTE retained Repayment required if: 1.Incorrect or false information submitted 2.Closes within 2-years 3.Relocates out of Edina 4.Fails to retain 75% of employees 5.Sold to an unrelated party for a profit •Must have at least 2 FTE but no more than 25 FTE at the Edina location •Maximum annual revenue of $1.0 million •Revenue severely impacted by pandemic •Located within City of Edina •Located within commercial or industrial zoning districts •Must be physical brick and mortar facility with foot traffic •Chamber or Association membership NOT required Eligible Small Businesses EdinaMN.gov 7 •Brick and mortar businesses whose primary revenue is based on walk-in traffic •Viability to reopen after expiration of Stay at Home Executive Orders •Examples: restaurants, retail, beauty services, salons, massage, chiropractors, dentists, fitness, etc. Targeted Small Businesses EdinaMN.gov 8 •Non-for-profit enterprises •Government owned/operated enterprises •Businesses owned/operated by elected City officials •New businesses not in operation prior to July 31, 2019 •Corporate chains •Multi-state chains •Businesses in default conditions prior to February 29, 2020 Ineligible Businesses EdinaMN.gov 9 Tentative Schedule 1) HRA Board Approval Thursday, April 16, 2020 2) Program Roll Out Monday, April 20, 2020 3) Application Period April 20 to 27 4) Review & Selection May 1 5) Announcement May 6 6) Distribution of Funds mid May 7) Reporting 60 days, 1 and 2 year anniversary EdinaMN.gov 10 •Alert local businesses •Chamber of Commerce •50th & France Association •City’s website •City’s social media accounts Monday20 April Program Roll Out EdinaMN.gov 11 •Applications accepted online only •City staff will review applications received by 4:30 PM Monday April 27 -Early applications encouraged -Incomplete applications will be eliminated Monday27 April Application Acceptance EdinaMN.gov 12 •Panel will convene to rank and select recipients: -City staff, -Chamber of Commerce, -50th & France Association, and -Open to Business advisor Friday 01 May Selection Process EdinaMN.gov 13 •Applications ranked based on: -level of foot traffic, -number of employees, -length of lease, -tenure of business, -business plan to recover, -application to other programs, -extent of business disruption, and -residency of business owners Friday 01 May Selection Process EdinaMN.gov 14 •All applicants will be notified of status •Press release issued Wednesday06 May Announcements EdinaMN.gov 15 •City Finance Department will prepare checks week of May 11th •Checks available for contact-less pick up at City Hall Thursday morning May 14 (must bring ID) •Checks mailed on Thursday afternoon (3:00 PM) Thursday14 May Distribution of Funds EdinaMN.gov 16 •City of Edina reporting form must be filed electronically by deadline -Status of business and other incentives •Each recipient must provide detail of how the grant funds were actually used -Copies of receipts must be provided -Sensitive information can be redacted 202030 July Reporting -Initial EdinaMN.gov 17 Recipients must return City reporting form on the 1st and 2nd anniversary of the grant award •Business status •Status of other financial support •Employment status •Effectiveness of grant 2021 & 202230 July Reporting –Follow Up EdinaMN.gov 18 Questions and Discussion EdinaMN.gov 19 Edina Small Business Emergency Assistance Program Page 1 Edina Small Business Emergency Assistance Program Application Form and Checklist GENERAL BUSINESS INFORMATION 1) Formal Business Name (as registered with State) 2) Casual Business Name (dba) 3) Business Street Address, Suite No. & Zip Code 4) Business Website 5) Business Email Address 6) Number of locations outside of Edina 7) Mailing Address (if other than above) 8) Brief Description of Business (products sold or services provided) 9) Was your business ordered to close or significantly reduce operations by Minnesota Emergency Executive Order related to COVID-19 pandemic in 2020? OWNERSHIP INFORMATION 10) Provide information about each business owner with more than 10% ownership stake in the business. Name City, State Phone Email Primary Owner Secondary Owner NA NA Other Owner NA NA Other Owner NA NA Other Owner NA NA Edina Small Business Emergency Assistance Program Page 2 Other Owner NA NA APPLICANT INFORMATION 11) Name of Person filling out Application 12) Applicant Title/Role in Business 13) Applicant Email Address 14) Applicant Phone Number DETAILED BUSINESS INFORMATION 15) Date business established 16) Date established in Edina (if different than above) 17) Provide Employment Information Edina Location All Locations No. of full-time employees No. of part-time employees No. of contract employees Total FTE positions (optional) 18) Is the business structured as a ‘for profit’ or ‘not-for-profit’ entity? 19) Is the business a franchise? 20) Is the business reliant on walk-in customer traffic for at least 70% of annual sales? 21) What is the estimated amount of foot traffic on a typical business day? 22) Provide the term of the lease (beginning, end and option dates) 23) Provide name and contact information for your landlord or property manager 24) Was the business delinquent in rent or mortgage payments, including CAM as of 2/29/2020? 25) Was the business delinquent in any tax payments (property, income, payroll, etc) as of 2/29/2020? Edina Small Business Emergency Assistance Program Page 3 26) Was the business more than 30-days delinquent in any other business-related payments as of 2/29/2020? 27) Were any of the business owners identified above delinquent in any tax payments for any Minnesota business as of 2/29/2020? BUSINESS CONDITIONS RELATED TO COVID-19 28) Describe the reduction in hours, staffing and customer traffic due to COVID-19: 29) Describe the current year-over-year business loss related to COVID-19: 2019 vs 2020 Revenue Change Percent Change January February March April (if available) 30) Estimate the total business loss to date related to COVID-19 (January 1, 2020 to present) 31) Estimate the total business loss related to COVID-19 IF business disruptions continue into the summer months (January 1 to June 30, 2020) 32) Describe how you modified operations to sustain your business during this time? 33) Describe how you intend to modify your business model or day-to-day operations when the stay-at-home order is lifted 34) What is the business’ average monthly operating cost? Calculated as annual 2019 operating costs divided by 12 months. Include expenses such as rent, CAM, mortgage, equipment rental or payments, overhead costs attributed to staff, etc. Exclude supplies, temporary staff and other items that vary from month-to-month 35) Amount of Emergency Assistance Funding requested (2 x average monthly operating costs, but not to exceed $_____) 36) Describe how the business intends to use the Emergency Assistance provided from Edina. Description of Expense Time Period Amount Edina Small Business Emergency Assistance Program Page 4 37) Describe any other financial relief sought by this business related to COVID-19: Type of Relief Type and Amount Status Landlord rent relief Lender relief US Small Business Administration (SBA) MN Dept. of Employment & Economic Development (DEED) Other Other 38) Describe any special conditions that should be considered when reviewing this application. I certify under penalty of applicable laws that the information provided in this application is true, accurate and complete. I further certify that the Applicant has been authorized and empowered to submit this application on behalf of the business named above. On behalf of the business, I declare that the COVID-19 pandemic has caused and is causing substantial unexpected business disruption and that this disruption threatens the short and long term viability of the business. I request that the Edina Housing and Redevelopment Authority provide a one-time loan to help the business sustain itself through this business disruption. It is the owner’s intention to continue operating the business at the current Edina location in substantially the same form for at least 24-months from the date of the loan agreement. If awarded emergency funds, we certify that the monies will only be used to pay for operating expenses incurred at this Edina business. We understand that the funds will only be forgiven if used for an eligible purpose and if the business remains in operation in substantially the same size and form 24-months from the date of loan agreement. We agree to submit follow up reports as required by the Edina HRA 60-days, 1-year and 2-years from the date of the loan agreement. We understand that Minnesota Data Practice Laws apply to the information provided in this application and that most information will be considered “public” data unless it can be classified as “non-public” in accordance with Minnesota Law. Edina Small Business Emergency Assistance Program Page 5 We also understand that the Edina HRA or City of Edina may use the name, photographs and other images of this business in follow up reporting regarding the use of emergency assistance funds. Submitted by: applicant name and title Submitted on behalf of: business name: Date: DOCUMENTATION TO INCLUDE: 1) Copy of current MN Secretary of State registration, if applicable 2) Proof of occupancy (copy of lease, if tenant; copy of mortgage statement or property tax statement, if owner) 3) Proof of annual gross revenue such as: 2019 federal income tax return, profit & loss statements (certified by MN CPA), point-of-sales reports, other sales reports, quarterly sales tax filings or bank statement 4) IRS W-9 form 5) Completed Edina application form 6) Signed sworn statement to the accuracy of the application form Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 1 CITY OF EDINA EDINA HOUSING AND REDEVELOPMENT AUTHORITY SMALL BUSINESS EMERGENCY ASSISTANCE FORGIVABLE LOAN AGREEMENT This Loan Agreement (“Agreement”) is made and entered into as of the ______ day of ____ , 2020, by and between ____________ (“Borrower”), and the HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, a public body corporate and politic of the State of Minnesota (“Lender”). RECITALS A. On March 11, 2020, the World Health Organization (“WHO”) characterized the COVID-19 outbreak as a pandemic. B. On March 13, 2020, the Governor of the State of Minnesota (the “Governor”) issued Executive Order 20-01 declaring a peacetime emergency because of the COVID-19 pandemic. C. On March 16, 2020, the Governor issued Executive Order 20-04 ordering the closure of bars, restaurants, and other places of public accommodation. D. On March 17, 2020, the City of Edina approved Resolution 2020-36 which recognized and declared a local peacetime emergency pertaining to the COVID-19 pandemic. D. On March 25, 2020, the Governor issued Executive Order 20-20, which directed Minnesotans to stay at home except for certain exempted activities and work. E. On April 8, 2020, the Governor issued Executive Order 20-33 which extended the stay at home order through May 3, 2020. F. On April 13, 2020, the Governor issued Executive Order 20-35 which extended the peacetime emergency to May 13, 2020. G. The COVID-19 pandemic has resulted in financial hardship for small businesses in the City of Edina which have been required to close or significantly limit the services they provide requiring emergency assistance. H. Lender has duly established a Small Business Emergency Assistance Program (the “Program”) and has approved guidelines for said Program (the Program Guidelines”). Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 2 I. Borrower has submitted an application to Lender for a forgivable loan (the “Loan Application”) pursuant to the Program Guidelines, and Lender has approved a loan to the Borrower in the maximum principal amount of $ (the “Loan”) to pay a portion of the qualifying expenditures under the Program Guidelines as set forth in the Loan Application in connection with Borrower’s business located at _____________ in the City of Edina, Minnesota (the “Loan Activities”). J. Lender and Borrower now desire to memorialize the terms and conditions of the Loan in this Agreement. NOW THEREFORE, in consideration of the mutual covenants hereinafter contained, it is hereby agreed as follows: 1. Basic Loan Terms. (a) Subject to and upon the terms and conditions of this Agreement, the Program Guidelines, and the Loan Application (together the “Loan Documents”), Lender agrees to loan to Borrower the sum of _______________ and No/100ths Dollars ($ _________ ). Proceeds of the Loan shall be disbursed for the Loan Activities approved pursuant to the Loan Documents. The Loan shall bear interest at the rate of zero percent (0%) per annum and no payments shall be due towards the principal amount of the loan unless a portion of the Loan is not forgiven based on a breach of Subsection (e) herein. The Loan shall be forgiven by the Lender upon satisfaction by the Borrower of the terms of Subsection (e) herein. The term of the Loan shall be two (2) years. In the event that all or a portion of the Loan is not forgiven, the unforgiven portion of the Loan shall be payable based on the terms and interest rate set forth in Subsection (g) hereof. (b) Goals. Borrower agrees that it will meet the following goals: (i) use the Loan to fund normal operating expenses of the business; and (ii) maintain the business in operation in the City of Edina for twenty-four (24) months from the date of execution of this Agreement; and (iii) maintain at least seventy-five percent (75%) of its full-time equivalent employee count as identified in the Loan Application. (c) Eligible Expenses. The Loan shall only be used for normal operating expenses of the Borrower’s business at the Edina location. Normal expenses include: rent, mortgage payments, common area charges, equipment rental or payments, overhead expenses. No extraordinary expenses shall be allowed without the prior authorization of the Lender. Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 3 (d) Reporting. The Borrower shall report on the actual use of the Loan and the status of the Borrower’s business in the format prescribed by the Lender on July 31, 2020, July 31, 2021 and July 31, 2022. (e) Loan Forgiveness. The Loan will be forgiven as set forth below if Borrower meets all of the following requirements: (i) Location/Existence. Borrower’s business is now, and remains continuously in, the City of Edina for twenty-four (24) months from the date of execution of this Agreement. (ii) Job Maintenance. Borrower has retained at least seventy-five percent (75%) of its full-time equivalent employee count as identified in the Loan Application throughout the period of the Loan. A reduction in full-time equivalent employee count to less than seventy-five percent (75%) for more than two consecutive months shall be considered a default of the Loan. (iii) No Defaults. As of the Determination Date, there are no defaults under this agreement which is beyond any notice and cure period. (f) Completion. Within a reasonable time after the 2nd Anniversary of the execution of this Agreement, Lender will determine, in its sole and absolute discretion, whether Borrower has fully and timely complied with the requirements of this Section. Borrower will promptly provide all such documentation as Lender reasonably requests in Lender’s effort to determine whether Borrower has fully and timely complied with the requirements of this Section. The date upon which Lender gives Borrower written notice of its determination of Borrower’s compliance with the requirements of this Section is the “Determination Date”. If Borrower has timely and completely complied with all the requirements of this Section, as strictly interpreted, Lender will forgive all outstanding principal and interest due and owning pursuant to the Loan as of the Determination Date. (g) Loan Repayment. If the Goals established in Subsection (b) are not met as of the 2nd Anniversary of the Commencement Date, then Borrower shall upon thirty (30) days written notice repay the Loan as follows: (i) if business has less than seventy-five percent (75%) employment for any two (2) consecutive months, the business shall repay the full principal of the Loan in twelve (12) monthly installments; (ii) if the business is relocated outside the City of Edina or sold, the business shall repay the full principal of the Loan in lump sum at year two (2) or on the date of relocation or sale whichever occurs first; Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 4 (iii) if the business is in default because it provided false information in its Loan Application, the business shall repay the full principal of the Loan within thirty (30) days of notice from the Lender. (iv) if the business fails to file the reports required by this Section on the dates specified, or if the Lender or if Borrower uses the Loan funds for expenses other then those authorized in this Section, the Lender may declare a default and demand Borrower repay the Loan within thirty (30) days of notice from Lender. (h) Prepayment. If the Loan is not forgiven, prepayment of the Loan may occur at any time during the Loan without penalty. (i) Subordination. This Loan shall be subordinate to all of Borrower’s pre- existing loans. 2. Disbursement of Loan Proceeds. (a) All Loan proceeds shall be paid to Borrower in accordance with the terms and conditions of the Loan Documents. Notwithstanding anything to the contrary herein, any costs of the Loan Activities exceeding the amount to be reimbursed under this Agreement shall be the sole responsibility of Borrower. (b) On the date of closing on the Loan, all Loan proceeds shall be disbursed to the Borrower. The disbursement of proceeds of the Loan will be made subject to the conditions precedent that prior to or as of the date of the disbursement: (i) The Lender has received from Borrower, without expense to Lender an executed copy of this Agreement. (ii) Borrower is in compliance with the Loan Documents. 3. Representation and Warranties. Borrower represents and warrants to Lender that: (a) Borrower is duly authorized and empowered to execute, deliver, and perform this Agreement and to receive the Loan from Lender. (b) The execution and delivery of this Agreement and the performance by Borrower of its obligations under the Loan Documents, do not and will not materially violate or conflict with any applicable provision of law and do not and will not materially violate or conflict with, or cause any default or event of default to occur under, any material agreement binding upon Borrower. Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 5 (c) The execution and delivery of this Agreement has been duly approved by all necessary action of Borrower, and this Agreement has in fact been duly executed and delivered by Borrower and constitutes its lawful and binding obligation, legally enforceable against it. (d) Borrower warrants that it shall keep and maintain books, records, and other documents relating directly to the receipt and disbursements of Loan proceeds and that any duly authorized representative of Lender shall, with reasonable advance notice, have access to and the right to inspect, copy, audit, and examine all such books, records, and other documents of Borrower pertaining to the Loan until the completion of all closeout procedures and the final settlement and conclusion of all issues arising out of this Loan. (e) Borrower warrants that to the best of its knowledge, it has fully complied with all applicable state and federal laws reasonably relevant to this Agreement and will continue to comply throughout the term of this Agreement. If at any time Borrower receives notice of noncompliance from any governmental entity, Borrower agrees to take any necessary action to comply with the state or federal law in question. (f) Borrower warrants that it will use the proceeds of the Loan made by Lender solely for the Loan Activities, and that within 60 days after the date of this Agreement, Borrower shall provide to Lender in writing a brief report in substantially the form provided by the Lender, specifying how the entirety of the Loan funds have been utilized and providing evidence in the form of paid invoices, statements, or similar. 4. No Business Subsidy. The parties agree that the Loan is not a business subsidy as defined in Minnesota Statutes, Sections 116.993 to 116.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000. 5. Event of Default by Borrower. The following shall be Events of Default under this Agreement: (a) Failure to complete any part of the Loan Activities within 60 days after the date of this Agreement; (b) Any representation or warranty made by Borrower herein is false when made; (c) Use of Loan proceeds for an ineligible use; (d) Borrower shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 6 substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action to authorize any of the foregoing; (e) An involuntary case or other proceeding shall be commenced against Borrower seeking liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of 60 days; or an order for relief shall be entered against Recipient under the federal bankruptcy laws as now or hereafter in effect; or (f) Any material breach or failure of Borrower to perform any material term or condition of this Agreement not specifically described as an Event of Default in this Agreement and such breach or failure continues for a period of thirty (30) days after Lender has given written notice to Borrower specifying such default or breach, unless Lender agrees in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, Lender will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Borrower within the applicable period and is being diligently pursued until the Event of Default is corrected, but no such extension shall be given for an Event of Default that can be cured by the payment of money (i.e. payment of taxes, insurance premiums, or other amounts required to be paid hereunder). 6. Lender’s Remedy upon Borrower’s Default. Upon an Event of Default by Borrower and after provision by Lender of written notice, Lender may at its option exercise any and all of the following rights and remedies: (a) Lender may suspend or terminate its performance under this Agreement. (b) Lender may bring appropriate action to enforce such performance and the correction of such Event of Default. Borrower agrees to pay the costs of collection, including but not limited to reasonable attorneys’ fees and expenses, incurred by the Lender in enforcing this obligation. (c) Lender may take whatever action at law or in equity as may appear necessary or appropriate to collect the amounts then due and thereafter to become due under this Agreement. Borrower agrees to pay the costs of collection, including but not limited to reasonable attorneys’ fees and expenses, incurred by the Lender in enforcing this obligation. Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 7 (d) Lender, in the event Borrower goes out of business or files for bankruptcy, shall retain the right to repayment of the Loan at at least the same level as Borrower’s other lenders. (e) Borrower will be ineligible for future loans funded from the Lender. 7. Fees and Expenses. Borrower agrees to pay to Lender immediately upon demand all costs and expenses, including, without limitation, all attorneys’ fees, incurred by Lender in connection with the enforcement of the Lender’s rights and/or the collection of any amounts which become due to Lender under this Agreement and the prosecution or defense of any action in any way related to this Agreement other than the gross negligence or willful misconduct of Lender in the creation and/or implementation of its forgivable loan program. 8. Indemnification. (a) Borrower shall and does hereby agree to indemnify against and to hold Lender, and its officers, agents, and employees, harmless of and from any and all liability, loss, or damage that it may incur under or by reason of this Agreement, and of and from any and all claims and demands whatsoever that may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained herein. (b) This indemnification and hold harmless provision shall survive the execution, delivery, and performance of this Agreement and the payment by Lender of any portion of the Loan. (c) Nothing in this Agreement shall be construed as a waiver by the City of any immunities, defenses, or other limitations on liability to which City is entitled by law, including but not limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466. 8. Miscellaneous. (a) Waiver. The performance or observance of any promise or condition set forth in this Agreement may be waived, amended, or modified only by a writing signed by Borrower and Lender. No delay in the exercise of any power, right, or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. (b) Assignment. This Agreement shall be binding upon the parties, their successors and assigns. All rights and powers specifically conferred upon Lender may be Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 8 transferred or delegated by Lender to any of its successors and assigns. Borrower’s rights and obligations under this Agreement may be assigned only when such assignment is approved in writing by Lender; except that if such assignment is made to an affiliate or subsidiary of Borrower, Borrower may assign any of its rights or obligations to such affiliate or subsidiary upon written notice to the Lender. (c) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Minnesota, without giving effect to any choice or conflict of law provision or rule. (d) Severability. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. (e) Notices. All notices given hereunder shall be in writing and shall be deemed to have been given when delivered personally or three (3) days after deposited in the United States mail, registered, postage prepaid, addressed as follows: If to Borrower: _____________________________ Name _____________________________ Street Address _____________________________ City, State & Zip Code If to Lender: Scott Neal, Executive Director Edina Housing and Redevelopment Authority 4801 West 50th Street Edina, MN 55424 (f) Nondiscrimination. Borrower shall not discriminate against any person by reason of any characteristic or classification protected by law. (g) Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, both oral and written. This Agreement may be amended only in a writing signed by the parties hereto. Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 9 (h) Headings. The headings appearing at the beginning of the several sections contained in this Agreement are for convenience only and do not define, limit or construe the contents of this Agreement. (i) Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be an original and all of which shall constitute the same agreement. (j) Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, both oral and written. This Agreement may be amended only in a writing signed by the parties hereto. IN TESTIMONY WHEREOF, each of the parties hereto has caused these presents to be effective as of the day and year first above written. BORROWER: (full business name) By: (signature) (printed name) Its: (title) Edina Small Business Emergency Assistance Forgivable Loan Agreement Page 10 HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA By: Name: Scott Neal Its: Executive Director Application No.Quadrant Name of Business Category Unpaid Expenses 0 Low Medium High 1 3 10 2-3 FTE 4-12 FTE 13-25 FTE 1 3 5 Expires by July 2022 Expires Aug 2022 to July 2025 Extends past July 2025 1 3 5 Established in 2019 Established in 2015 to 2018 Established earlier than 2015 1 3 5 One or less Applied to 2 Applied to 3 or more 1 3 5 Still operational Voluntary closure Ordered to close 3 8 10 Not in MN Greater MN 7 county TC metro 1 3 10 Little change or effort Some change and effort Substantial change and effort 1 5 10 0 100 Amount of Daily Foot Traffic Number of Employees Length Remaining in Lease Tenure / Age of Business in Edina Application to other financial assistance program Extent of business disruption Residency of majority of owners Business Plan to recovery Total Points Earned = 10 10 10 5 5 5 5 10 Business Stability Prior to Pandemic 40 No atypical unpaid expenses 40 Description and Points Application Score Card Max Points Points Earned Sample for Review Date: April 16, 2020 Agenda Item #: VIII.A. To:Chair & Commissioners of the Edina HRA Item Type: Other From:Jennifer Garske, Executive Assistant Item Activity: Subject:Correspondence Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: There has been no correspondence since the last meeting.