HomeMy WebLinkAboutItem 06.kDecember 30, 2014 0 Item No.
JOINT POWERS AGREEMENT WITH THE DAKOTA COUNTY CDA FOR THE
OPEN TO BUSINESS PROGAM
January 5, 2015 City Council Meeting
Proposed Action
Staff recommends adoption of the following motion: Move to approve a Joint Powers Agreement
with the Dakota County CDA to operate the Open to Business Program in 2015.
Passage of this motion will result in the continued operation of the Open to Business Program in
partnership with the Dakota County CDA, the Metropolitan Consortium of Community Developers
(MCCD) and ten other Dakota County cities in 2015.
Overview
This program was first implemented in 2013 in most of the larger cities in Dakota County through a
Joint Powers Agreement with Dakota County CDA. The program provides technical assistance and
access to capital for small businesses and potential entrepreneurs.
The cost to operate the program in 2015 in the cities of Apple Valley, Burnsville, Eagan, Farmington,
Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, and West St.
Paul as well as the small cities and townships is $135,000. MCCD hired a new full-time person to work
exclusively in Dakota County in January of 2013. This person has office hours in Lakeville City Hall one
day a month and meets regularly with clients in Lakeville outside of these office hours.
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 the same as last year and is proposed to
be funded from the City's Economic Development Fund and is included in the proposed 2015 Budget.
Staff recommends approval of the Joint Powers Agreement for the Open to Business program.
Primary Issues to Consider
Has the program been successful in 2014? Attached is a summary Program Report for the first
nine months of 2014 which documents the number of clients served and the hours of direct
service provided by Open to Business staff. Also attached is a summary of the program from
January 2013 through September 2014.
Supporting Information
• Joi ;Trs Agr ment with the Dakota County CDA for the Open to Business Program
Rick Howden, Economic Development Specialist
Financial Impact: $ $7,500 Budgeted: Y/N Y
Source: Economic Development Fund Related Documents:
µ�
Ilk
TO BUSINESS
Dakota County
1/1/2014 — 9/30/2014
Clients Served:
Client City:
New Entrepreneurs
95
Apple Valley
25
Burnsville
32
Existing Business
81
Eagan
22
Farmington
18
Total Entrepreneurs
176
Hastings
10
Inver Grove Hts
17
Lakeville
11
Inquiries
200
Mendota Heights
5
(Requests for information/referral,
not a formal client)
Rosemount
14
Financing:
S. St. Paul
3
W. St. Paul
8
Provided (Dakota County Businesses)
Townships
2
Number
1
Undecided Location
9
Amount
$30,000
Industry Segment:
Provided (Dakota County Residents)
Retail
16
Number
1
Service
87
Amount
$12,000
Food
36
Health/Fitness
12
Microgrants
Manufacturing
5
Number
4
Construction
5
Amount
$4,000
Referral Source:
Credit Builder Loans
Number
10
CDA Staff/Website
5
Amount
$2,400
Chamber
3
City Staff/Website
51
Total
$48,400
Bank Referral
10
Media
9
Requests/In Process
Other
24
Number
1
Total Request
$25,000
Hours of Direct Service:
Facilitated/Leveraged Loans
1s' Quarter
546.5
Number
3
2nd Quarter
510.0
Amount
$1,350,000
3rd Quarter
505.0
4th Quarter
0
SUM
LIN r
as
TO BUSINESS
Dakota County
1/1/2013 — 9/30/2014
Client City:
Clients Served:
Apple Valley
33
New Entrepreneurs 231
Burnsville
47
Existing Business 81
Eagan
38
Total Entrepreneurs 312
Farmington
28
Hastings
20
Inver Grove Hts
22
Inquiries 522
Lakeville
22
(Requests for information/referral, not a formal client)
Mendota Heights
5
Rosemount
24
Financing:
S. St. Paul
8
W. St. Paul
10
Provided (Dakota County Businesses)
Townships
4
Number 5
Undecided Location
51
Amount $225,000.00
Industry Segment:
Provided (Dakota County Residents)
Retail
44
Number 9
Amount $91,373.50
Service
174
Food
69
Microgrants
Health/Fitness
12
Number 7
Manufacturing
6
Amount $7,000.00
Construction
5
Credit Builder Loans
Referral Source:
Number 14
Amount $3,455.00
CDA Staff/Website
14
Chamber
g
City Staff/Website
158
Total $326,828.50
Bank Referral
10
Media
13
Requests/In Process
Other
89
Number 2
Total Request $55,000
Hours of Direct Service:
Facilitated/Leveraged Loans
1St Quarter
1113.5
Number 5
2nd Quarter
729.0
Amount $1,425,000
3rd Quarter
763.0
4th Quarter
235.5
JOINT POWERS AGREEMENT
Open to Business Program
THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of January 1,
2015, 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 CITY OF BURNSVILLE, CITY OF LAKEVILLE, CITY
OF MENDOTA HEIGHTS, 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 (each individually a "Local Government
Entity" and together the "Local Government Entities"), each a political subdivision of the State.
RECITALS:
A. In order to pursue common goals of fostering economic development, the CDA and
the Local Government Entity Cities desire to engage the Metropolitan Consortium of Community
Developers, a Minnesota non-profit corporation ("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 Local Government Entities 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 Local Government Entities, each party does hereby represent, covenant and
agree with the others as follows:
Section 1. Representations. Each of the Local Government Entities 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.
Joint Powers Agreement
(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
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 Local Government Entities 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 Local Government Entities, 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 Local
Government Entities 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 Local Government Entity
without the prior written consent of such Local Government Entity.
Section 4. Limited Liability. Neither the CDA nor the any of the Local Government
Entities 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 Local Government Entities for costs associated with claims made against the
Local Government Entities directly relating to actions taken by the CDA, and (b) each Local
Government Entity hereby indemnifies the CDA for costs associated with claims made against
the CDA directly relating to actions taken by such Local Government Entity. 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 Local Government Entities, 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 Local Government Entity 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.
2
Joint Powers Agreement
9298589v1
Section 6. Term; Distribution of Property. The term of this Agreement shall expire
on December 31, 2015. There is no property which will be acquired by the CDA or any Local
Government Entity pursuant to the Program which would need to be distributed at the end of the
term hereof.
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.
[Remainder of page intentionally left blank]
Joint Powers Agreement
92985890
IN WITNESS WHEREOF, the CDA and the Local Government Entities 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.
DAKOTA COUNTY COMMUNITY
DEVELOPMENT AGENCY
By
Its Executive Director
Notice Address:
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
CITY OF LAKEVILLE, MINNESOTA
Dated: By
Its Mayor
By
Its City Clerk
Notice Address:
20195 Holyoke Avenue
Lakeville, MN 55044
Attn: Community and Economic Development Director
S-4
Joint Powers Agreement