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HomeMy WebLinkAboutItem 10December 14, 2012 Proposed Action Overview Item No. JOINT POWERS AGREEMENT WITH THE DAKOTA COUNTY CDA FOR THE OPEN TO BUSINESS PROGAM December 17, 2012 City Council Meeting Staff recommends adoption of the following motion: Move to approve a Joint Powers Agreement with the Dakota County CDA to implement the Open to Business Program. Passage of this motion will result in the implementation of the Open to Business in partnership with the Dakota County CDA, the Metropolitan Consortium of Community Developers (MCCD) and nine other Dakota County cities in 2013. This proposed program was first introduced by the Dakota County CDA at a meeting of City Economic Development professionals and Chamber Executives in May of this year. Representatives of MCCD that currently operate this program in Hennepin County made a presentation at this meeting. The program provides technical assistance and access to capital for small businesses and potential entrepreneurs. This proposed new program was discussed by the EDC at their May and June meetings. The City Council also discussed the program during a budget work session. The proposed cost to operate the program in the cities of Apple Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville, Rosemount, South St. Paul, and West St. Paul as well as the small cities and townships is $130,000. MCCD plans to hire a new full -time person to work exclusively in Dakota County. The CDA proposes to fund 50% of the cost with the participating cities funding the remaining 50 %. The City of Lakeville's share would be $7,500. This amount is proposed to be funded from the City's Economic Development Fund and is included in the proposed 2013 Budget. Staff recommends approval of the Joint Powers Agreement for the Open to Business program as it will resulting in another tool in the City's tool box of incentives to help grow businesses in our community. Primary Issues to Consider • Is the recommended funding for the new program appropriate? As discussed during the Council Budget Work Session, this is an appropriate use of the Economic Development fund. Supporting Information • Joint PoweeAgreemen ith the Dakota County CDA for the Open to Business Program avid L. Olson, Community and Economic Development Director Financial Impact: $ $7,500 Budgeted: Y/N Y Source: Economic Development Fund Related Documents: R I� rt Fquip "I gained so much from it and feel better equipped to now organize the needed information to complete the business plan phase." Susan Piazza Piazza Designs "You answered a few weeks' worth of questions in a few minutes. You offer a priceless service of solid information." Kerry Dikken Blasted Art, Inc TMCCD Metropolitan Cerrorlfum of Corm -nom, r)e.elopent Open to Business is a program of MCCD in partnership with Hennepin County Housing and Redevelopment Authority 3137 Ch oAve u eSout Minneapolis, MN 55407 www.opentobusinessmn. Thank you fo. "Mowing businesses who contribute loan cap al and nantetng support For more information or to get started, call (612) 789 -7337 ext 21, or email info opentobusinessmn.org TO BUSINESS Need a Trusted Advisor? A Free FS iness Consultant? o Start e nd Your Business? Open to Business Loan Program Direct loans range up to $25,000 for startups, larger loans/packages are available for established businesses. Loan repayment terms on direct loans of up to $25.000 generally range from three to five years. "J just want to thank MCCD. Without their help in obtaining financing we wouldn't have been able to purchase our building and expand our business to the level it is at today." MarkAune A&A Millwork "Without MCCD% help our business would not have been possible. More than an organization that provided loans, MCCD is a financial partner in our business." Noelia Garcia La Lana Tamales, LLC` We Provide Assistance in the Following Areas: Financial management What are cashflow projections and why are they important? Bookkeeping set-up and training How do I keep track of sales and expenses? Loan packaging For any size loan, start up or expansion projects. What are the document requirements I need to get a loan? Business plan assistance Do ) need a business plan? If so, what do I include in it? Real estate analysis Should l rent or own my business space? Marketing assistance Who are my customers and how do I reach them? strategic planning How do I evaluate and manage growth? Business regulations What licenses or permits do How do get them? We Help You Answer the Following Questions: How much dot need to borrow? Would a term loan or a line of credit work best for me? How can 1 finance this business with very tittle equity and poor credit? Why does keeping good financial records help ensure mysuccess? What other funding sources are available to me? What if my stall up expenses are more than 1 projected? Open to Business provides one on one business counseling to current and prospective entrepreneurs. Our consultants work with you to develop a strong business plan, identify challenges and opportunities, and to tailor solutions. In addition to direct consulting, Open to Business program staff can link entrepreneurs with additional resources to help them succeed, including training programs, community or governmental services, and industry and business professionals. Well work with you to determine all of your capital needs, and we can help you identify and apply for financing that meets those needs. Finance & Commerce > Print > Open to Business caters to mom - and -p... l of 2 Finance & Commerce Open to Business caters to mom - and -pop entrepreneurs by Mark Anderson Published: December 10th, 2012 Lynh Huynh had been running her little Vietnamese restaurant, Kim Anh's Pastries and Deli, in Brooklyn Park for almost 15 years, and she knew was ready to grow. She also knew that financing a move and build -out of the new space she was eyeing close by would be a challenge for her family business and its five employees. But she found a partner in Rob Smolund, a small business counselor with the Minneapolis -based Open to Business program. Smolund helped Huynh put her business under a microscope and get it ready for expansion. http: / /fmance- commerce. com/wp- content/plugins /tdc- sociable - toolbar... http: / /finance - commerce.com Lynh Huynh knew how to run a restaurant, but coaching and credit from Open to Business and the City of Brooklyn Park enabled her to expand her business into a larger space and double her payroll. (Staff photo: Bill Klotz) "I already knew how to run the business, but Rob helped me go through all the loan paperwork, helped me see what additional information I needed, where I made mistakes. He helped me plan for things I didn't know," Huynh said. All that prepping helped her obtain a $50,000 loan, funded equally by a city of Brooklyn Park small business loan program and Open to Business's parent, the Metropolitan Consortium of Community Developers. Now, a little over a year after moving into its larger home, Kim Anh has doubled its payroll to 10 employees and is making money, Huynh said. It's a story line that Open to Business has been creating for a growing number of businesses in the last two years. The program has grown from a service that the nonprofit MCCD has offered in Minneapolis for over 20 years. Smolund and his Open to Business partner, Lee Hall, provide technical advice, counsel, and channel financing toward mom - and -pop businesses. But since late 2010, MMCD has added another 15 cities to its client list in Hennepin County, and in September it started serving small businesses and startups in Carver County. The agency is negotiating now with Dakota County to serve cities there, and it's started conversations with economic development officials in Coon Rapids. That new turf has added a lot of business. Smolund said that in the first three quarters of 2012 Open to Business served 188 Hennepin County businesses (outside Minneapolis). That's up from 45 in all of 2010. The impetus for that gain is a recognition that supporting very small businesses takes a lot of specialized work and time, and many development agencies don't have that specialization. "We knew that we had a service gap for small businesses," according to Carver County Economic Development Director John Sullivan. County government had reduced its tax levy, forcing staffing cutbacks, and Sullivan said he jumped at the chance to add expertise to his agency that he couldn't otherwise afford. 12/13/2012 8:32 AM Finance & Commerce > Print > Open to Business caters to mom - and -p... http: // fmance - commerce .com /wp- content/plugins /tdc- sociable - toolbar... That's a common story, said Hall, who also is MCCD's director of finance. "A lot of cities and counties have programs in place to support land development. They have TIF financing to help build a plant or expand a larger scale business," Hall said. "But when it comes to owner- operators, the entrepreneurs who might be able to fill an empty retail space, there's not much help." The centerpiece of the Open to Business program is advice. When cities join they get regularly scheduled open business counseling sessions from Smolund and Hall. Businesses can set a time for their meeting or just drop in. Some of those consultations may go no further, but for businesses that are ready to develop an expansion plan Smolund said he often spends up to 40 hours or more coaching and encouraging. All the sessions are free to the entrepreneurs. In Hennepin County, each city pays MCCD annual retainer fees of $10,000 to $20,000, half of which the county compensates. Carver County's cities and fees are much smaller, and the county picks up the tab. Financing sometimes comes as a small direct loan from MCCD programs funded by state, federal or private investment sources. Frequently, MCCD's contributes just a portion of the financing, taking on enough risk to make a bank comfortable with the larger loan. Lending has grown along with the client count. MCCD is on pace to contribute close to $2 million by the end of the year, up from $800,000 loaned in 2011. Hall said each of MCCD's loan dollars is attracting another $3 in private equity or bank loans. Hall said interest rates on his loans are set slightly above bank loans, but always below 10 percent. "We want to make sure credit is available, but we aren't in business to take loans away from banks." They are in business to help those business clients get stronger and add jobs, and Smolund said his clients have added or retained 70 jobs in Hennepin County during the first nine months of 2012. "We all need new businesses to be created," Sullivan said. "Before they can grow and become huge they have to get started. And without access to capital none of that happens." Open to Business: Getting busier Year: Clients 2010: 45 2011: 172 2012: 188 (through Sept. 30) Source: Metropolitan Consortium of Community Developers Complete URL: http:/ /finance- commerce.com /2012/12/ open -to- business -of- minneapolis- caters -to- mom - and -pop- entrepreneurs/ of 2 12/13/2012 8:32 AM JOINT POWERS AGREEMENT Open to Business Program THIS JOINT POWERS AGREEMENT (this "Agreement "), is made as of December 1, 2012, by and between the DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (the "CDA "), a public body corporate and politic organized and existing under the laws of the State of Minnesota (the "State "), and each of the CITIES OF BURNSVILLE, AND LAKEVILLE, INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY, EAGAN ECONOMIC DEVELOPMENT AUTHORITY, HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY, ROSEMOUNT PORT AUTHORITY, FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, SOUTH ST. PAUL HOUSING AND REDEVELOPMENT AUTHORITY AND WEST ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA (together, the "Cities "), each, a municipal corporation organized and existing under the laws of the State. RECITALS: A. In order to pursue common goals of fostering economic development, the CDA and the Cities desire to engage the Metropolitan Consortium of Community Developers ( "MCCD ") to undertake the "Open To Business Program" (the "Program ") within Dakota County (the "County "). B. Pursuant to the Program, MCCD will provide technical assistance and access to capital to small business and potential entrepreneurs in the County. C. The CDA and the Cities propose to jointly exercise their common economic development powers to undertake the Program. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the CDA and each of the Cities, each party does hereby represent, covenant and agree with the others as follows: Section 1. Representations. Each of the Cities and the CDA makes the following representations as to itself as the basis for the undertaking on its part herein contained: (a) It is a political subdivision of the State of Minnesota with the power to enter into this Agreement and carry out its obligations hereunder. (b) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms Joint Powers Agreement and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which it is now a party or by which it is bound, or constitutes an event of default under any of the foregoing. Section 2. Powers to be Exercised. The powers to be jointly exercised pursuant to this Agreement are the powers of the CDA and the Cities under Minnesota Statutes, Chapter 469, to undertake activities to promote economic development within their respective jurisdictions. Section 3. Method for Exercising Common Powers; Funds. The CDA, on its own behalf and on behalf of the Cities, will initially enter into an agreement with MCCD in substantially the form attached hereto as Exhibit A (the "Agreement ") to engage MCCD to operate the Program within Dakota County. The CDA and each of the Cities will make payments to MCCD as described in Exhibit A of the Agreement. The CDA may from time to time execute and deliver documents amending, modifying or extending the Agreement as it deems necessary or convenient, provided, that no such document will adversely affect services provided to, or amounts payable by, any City without the prior written consent of such City. Section 4. Limited Liability. Neither the CDA nor the any of the Cities shall be liable for the acts or omissions of the other in connection with the activities to be undertaken pursuant to this Agreement. To the extent permitted by law, (a) the CDA hereby indemnifies the Cities for costs associated with claims made against the Cities directly relating to actions taken by the CDA, and (b) each of the Cities hereby indemnifies the CDA for costs associated with claims made against the CDA directly relating to actions taken by such City. Nothing herein shall be deemed a waiver by the indemnifying party of the limits on liability set forth in Minnesota Statutes, Chapter 466; and the indemnifying party shall not be required to pay, on behalf of the indemnified party, any amounts in excess of the limits on liability set forth in Minnesota Statutes, Section 466.04, less any amounts the indemnifying party is required to pay on behalf of itself, its officers, agents and employees for claims arising out of the same occurrence. Section 5. Conflict of Interests; Representatives Not Individually Liable. The CDA and each of the Cities, to the best of its knowledge, represents and agrees that no member, official or employee of their respective bodies shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official or employee of the CDA or any City shall be personally liable with respect to any default or breach by any of them or for any amount which may become due to the other party or successor or on any obligations under the terms of this Agreement. Section 6. Term; Distribution of Property. This Agreement shall be in effect throughout the term of the Agreement (as the same may be extended as provided herein). There is no property which will be acquired by the CDA or any City pursuant to the Program which would need to be distributed at the end of the term hereof. 9298589v1 2 Joint Powers Agreement Section 7. Notices and Demands. A notice, demand or other communication under this Agreement by any party to another shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally to the person and at the addresses identified on each signature page hereto, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 9298589v1 [Remainder of page intentionally left blank] 3 Joint Powers Agreement IN WITNESS WHEREOF, the CDA and the Cities have caused this Agreement to be duly executed in their respective names and behalf as of the date first above written, with actual execution on the dates set forth below. Notice Address: DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By Its Executive Director Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123 Attn: Andrea Brennan, Director of Community and Economic Development S -1 Joint Powers Agreement Notice Address: 20195 Holyoke Avenue Lakeville, MN 55044 Attn: Community and Economic Development Director CITY OF LAKEVILLE, MINNESOTA By Its Mayor By Its City Clerk S -4 Joint Powers Agreement EXHIBIT A Contract for Services for the Open to Business Program THIS AGREEMENT is dated December _, 2012 and is between the Dakota County Community Development Agency ( "CDA ") and Metropolitan Consortium of Community Developers ( "MCCD "). WHEREAS, the CDA, on behalf of itself and the ten municipalities listed on Exhibit A hereto, which each has a population over 10,000 (the "Municipalities "), wishes to engage MCCD to render services under a model known as "Open to Business," an initiative providing small business technical assistance services to existing businesses and residents and other parties interested in opening a business within Dakota County (the "County ") (the "Initiative "); and WHEREAS, MCCD has represented itself as competent to provide the services required to administer and carry out the Initiative and has previous experience working with the Initiative; and WHEREAS, pursuant to CDA Resolution No. 12 -5128, adopted on September 18, 2012 (the "Resolution "), the CDA is authorized to enter into this agreement with MCCD for the Initiative; and WHEREAS, pursuant to the Resolution and certain joint powers agreements to be entered into between the CDA and the Municipalities (the "Joint Powers Agreements "), the CDA will act as fiscal agent for the Municipalities in connection with this Agreement; WHEREAS, the CDA will pay from its own funds 50% of the fee charged by MCCD for the Initiative in the Municipalities and 100% of the fee charged by MCCD for the Initiative in the small cities and townships within the County with populations of less than 10,000 people ( "Small Cities and Townships "), as further described herein and in Exhibit A; and WHEREAS, pursuant to the Joint Powers Agreements, the Municipalities will be required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A, representing the remaining 50% of the fee charged by MCCD for the Initiative in the Municipalities. Now therefore, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: TIME OF PERFORMANCE The term of this Agreement and the period during which MCCD will provide services hereunder will commence upon execution and delivery of this Agreement and will end on December 31, 2013, subject to earlier termination as provided herein. MCCD will perform services necessary to carry out the Initiative as promptly as possible, and with the fullest due diligence. 9293870v3 COMPENSATION Subject to reduction as provided below, the CDA will compensate MCCD for its services hereunder an amount equal to One Hundred Thirty Thousand Dollars ($130,000) ( "Contract Amount "). The CDA will pay such amount in two equal installments, the first no earlier than January 30, 2013 and the second no earlier than June 30, 2013, upon receipt of invoices from MCCD. Subject to the limits above, payments will be due within 15 days of receipt of the respective invoices. The portion of the Contract Amount payable from Participation Fees will be payable by the CDA only from and to the extent such Participation Fees are paid by the respective Municipalities. In the event a Municipality fails to pay to the CDA its Participation Fee in amounts and by the deadline described in Exhibit A, the CDA will notify MCCD, and MCCD will immediately cease the Initiative in that Municipality. Upon such termination, the Contract Amount will be reduced by an amount equal to the Participation Fee which such Municipality failed and the amount the CDA would have paid as a matching payment. SCOPE OF SERVICES MCCD will provide technical assistance to existing businesses, residents and those parties interested in starting a business in any of the Municipalities and Small Cities and Townships as further described on Exhibit B [and Exhibit C] attached hereto, which sets forth the Dakota Open to Business Program Scope of Services. REPORTING MCCD will submit quarterly reports to the CDA in form and substance acceptable to the CDA. Reports will provide information in the aggregate for the County and will include a subreport for each Municipality and each of the Small Cities and Townships. Reports will include the following information: 9293870v3 ➢ Number of inquiries ➢ Hours of technical assistance provided ➢ Type of assistance provided ➢ Type of business ➢ Annual sales revenue ➢ Number of businesses opened ➢ Number of business expanded /stabilized ➢ Number and amounts of financing packages ➢ Demographic information on entrepreneurs 9293870v3 ➢ Business address or resident address ➢ Number and wage of FTEs created ➢ Number and wage of FTEs retained The required reporting schedule is as follows: 1 quarter January — March, report due April 30 2nd quarter April — June, report due July 31 3 quarter July — September, report due October 31 4 quarter October — December, report due January 31 of 2012 In addition to the foregoing, MCCD will provide additional reports as reasonably requested by the CDA. PERSONNEL MCCD represents that it has, or will employ or contract for, at its own expense, all personnel required to perform the services necessary to carry out the Initiative. Such personnel will not be employees of, or have any contractual relationship with, the County, the CDA or any of the Municipalities. No tenure or any other rights or benefits, including worker's compensation, unemployment insurance, medical care, sick leave, vacation pay, severance pay, or any other benefits available to the County's, the CDA's or any of the Municipalities' employees shall accrue to MCCD or employees of MCCD performing services under this agreement. The MCCD is an independent contractor. All of the services required to carry out the Initiative will be performed by MCCD and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. USE OF CDA OFFICE SPACE The CDA will make available a cubicle space for MCCD personnel at the CDA office building for use by MCCD in carrying out the Initiative. MCCD personnel will have access to the CDA's meeting rooms, wireless internet service, copy machines and printers. MCCD personnel shall comply with all CDA office rules and policies regarding the use of CDA office space, equipment and internet access. If the CDA, in its sole discretion, determines that MCCD Personnel have failed to comply with CDA office rules and policies, MCCD Personnel will be required to vacate the CDA office and the CDA will cease to provide MCCD office space to carry out the Initiative. INTEREST OF MEMBERS OF THE CDA AND OTHERS No officer, member, or employee of the CDA and no member of its governing body, and no other public official or governing body of any locality in which the Initiative is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Initiative, will participate in the decision relating to this Agreement which affects his/her personal interest or the interest of any corporation, partnership, or association in which he /she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement. ASSIGNABILTY MCCD will not assign any interest in this Agreement, and will not transfer any interest in the same without the prior written approval of the CDA. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal laws, statutes and applicable regulations of the State of Minnesota and the ordinances of the Municipalities. INSURANCE MCCD agrees at all times during the term of this Agreement, and beyond such term when so required, to have and keep in force the following insurance coverages: 9293870v3 1. Commercial General Liability on an occurrence basis with contractual liability coverage: General Aggregate $2,000,000 Products — Completed Operations Aggregate 2,000,000 Personal and Advertising Injury 1,500,000 Each Occurrence— Combined Bodily Injury and Property Damage 1,500,000 2. Workers' Compensation and Employer's Liability: Workers' Compensation In the event that MCCD should hire employees or subcontract this work, MCCD shall obtain the required insurance. Limits Statutory Employer's Liability. Bodily injury by: Accident —Each Accident 500,000 Disease — Policy Limit 500,000 Disease —Each Employee 500,000 INDEMNIFICATION MCCD agrees to defend, indemnify, and hold harmless the County, the CDA, the Municipalities, and each of their respective officials, officers, agents, volunteers and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of MCCD, its subcontractors, anyone directly or indirectly employed by MCCD or any of its subcontractors, and /or anyone for whose acts and/or omissions 9293870v3 MCCD may be liable in the performance of the services required by this Agreement, and against all loss by reason of the failure of MCCD to perform any obligation under this Agreement. NOTICES A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail, postage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD, is addressed or delivered personally to: (b) Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis, MN 55407 In the case of the CDA is addressed or delivered personally to: Andrea Brennan, Director of Community and Economic Development Dakota County Community Development Agency 1228 Town Centre Dr. Eagan, MN 55123 or at such other address with respect to any party as that party may designate in writing and forward to the other as provide in the Section. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. NON - DISCRIMINATION In connection with its activities under this Agreement, MCCD will not violate any Federal or State laws against discrimination. DEFAULT AND CANCELLATION Failure of the MCCD to perform any of its obligations under this Agreement to the satisfaction of the CDA will constitute a default hereunder. Unless MCCD's default is cured within 15 days following notice by the CDA, the CDA may (i) cancel this Agreement in its entirety by 5 additional days' written notice to MCCD, or (ii) withhold payment from MCCD as long as such default continues. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County. Litigation, however, in the 9293870v3 federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 9293870v3 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By: Executive Director MCCD By: Printed Name: Printed Title: Date: Municipality Total Fee CDA Share of Fee Municipality Participation Fee Participation Fee Amount Due 1/30/2013 Participation Fee Amount Due 6/30/2013 Eagan $15,000 $7,500 $7,500 $3,750 $3,750 Burnsville $15,000 $7,500 $7,500 $3,750 $3,750 Lakeville $15,000 $7,500 $7,500 $3,750 $3,750 Apple Valley $15,000 $7,500 $7.500 $3,750 $3,750 Inver Grove Heights $12,500 $6,250 $6,250 $3,125 $3,125 Hastings $10,000 $5,000 $5,000 $2,500 $2,500 Rosemount $10,000 $5,000 $5,000 $2,500 $2,500 Farmington $10,000 $5,000 $5,000 $2,500 $2,500 South St. Paul $10,000 $5,000 $5,000 $2,500 $2,500 West St. Paul $10,000 $5,000 $5,000 $2,500 $2,500 Small Cities and Townships $7,500 $7,500 $0 $0 $0 Total $130,000 $68,750 $61,250 $30,625 $30,625 Exhibit A Municipality Participation Fee Schedule 9293870v3 Exhibit B Dakota Open to Business Program Scope of Services Open to Business ( "OTB ") Technical Assistance Services MCCD will provide intensive one -on -one technical assistance to Municipality's and Small Cities' and Township's businesses, residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota County (the "County "). MCCD will dedicate one full time staff person based in the County to provide the Technical Assistance Services ( "Dakota OTB Staff'). In addition, MCCD will make available the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open to Business Program. Technical assistance includes, but is not limited to, the following: ➢ Business plan development ➢ Feasibility analysis ➢ Marketing ➢ Cash flow and other financial projection development ➢ Operational analysis ➢ City and State licensing and regulatory assistance ➢ Loan packaging, and other assistance in obtaining financing ➢ Help in obtaining competent legal advice MCCD Dakota OTB Staff will be available to meet clients at the CDA office building, various Municipality city halls or at the client's place of business. MCCD Dakota OTB Staff will provide technical assistance on a walk -in basis monthly in each Municipality, if requested. MCCD will also hold two -hour "Test Drive Your Business Idea" sessions once a month in various Municipality locations. Open to Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD's Emerging Small Business Loan Program (see Exhibit C Small Business Loan Program Guidelines below). MCCD also provides its financing in partnership with other community lenders, banks or Municipalities interested in making capital available to residents and/or businesses in their community. 9293870v3 Loan Amounts: EXHIBIT C Small Business Loan Program Guidelines • Up to $25,000 for start-up businesses • Larger financing packages for established businesses • Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: • Borrowers must be a "for- profit" business. • Business must be complimentary to existing business community. • Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds: • Loan proceeds can be used for working capital, inventory, building and equipment and general business operations. Interest Rates: • Loan interest rate is dependent on use, term and other factors, not to exceed 10 %. Loan Term Length: • Loan repayment terms will generally range from three to five years, but may be substantially longer for major asset financing such as commercial property. Fees and Charges: • Borrowers are responsible for paying all customary legal and other loan closing costs. 9293870v3