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HomeMy WebLinkAboutItem 06.i January 4, 2021 Item No. AMENDMENT TO THIRD ROUND OF SMALL BUSINESS EMERGENCY GRANT PROGRAM Proposed Action Staff recommends adoption of the following motion: Adopt a resolution approving an Amendment to the Third Round of Small Business Emergency Grant Program Guidelines to allow non-profit organizations with on-sale liquor licenses to be eligible for the program, Overview At the December 21 Council Meeting, the City Council approved grant guidelines for a Third Round of Small Business Emergency Grants for businesses impacted by Minnesota Executive Order 20-99 and Executive Order 20-103 and recommended utilization of up to $400,000 from the City’s General Fund. The businesses impacted by this Executive Order include restaurants with dine-in areas, gyms, fitness clubs, instructional businesses including dance, martial arts, swim schools and entertainment businesses. The grant guidelines adopted on December 21 stated that non-profit organizations were not eligible for the program. Dakota Curling Club is a 501c3 non-profit organization that has an on-sale liquor license from the City that was forced to close and thus was directly impacted by Executive Order 20-99 and 20- 103. Since they have been impacted in a manner similar to bowling alleys and restaurants, they are requesting that the guidelines be re-considered to allow them to be eligible for a grant. Staff recommends approval of the proposed amendment to the guidelines for the Third Round of Small Business Emergency Grants to allow non-profit organizations with an on-sale liquor license to be eligible for the program. Primary Issues to Consider This proposed amendment will allow the Dakota Curling Club to be eligible for Third Round of Small Business Emergency Grants. The Curling Club has also been determined to be eligible for the Dakota County grant program for businesses that have a liquor license. Financial Impact: $ Budgeted: Y☐ N☒ Source: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community & Economic Development Director 400,000, City General Fund (Reserved for Dakota County Recording Information) CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 20- ______ RESOLUTION APPROVING AN AMENDMENT TO THE THIRD ROUND OF SMALL BUSINESS EMERGENCY GRANTS WHEREAS, on December 21, 2020 the City Council approved a Third Round of Small Business Emergency Grants for businesses ordered closed by Executive Orders 20-99 and 20-103; and WHEREAS, the approved grant guidelines determined that non-profit organizations are not eligible for the grant program; and WHEREAS, non-profit organizations that operate commercial entertainment type businesses that also have a license for on-sale liquor were ordered closed; and WHEREAS, the closure of these types of non-profit entertainment uses has caused significant financial hardship to the organizations that operate them; and NOW, THEREFORE, BE IT RESOLVED, That the Lakeville City Council hereby approves an amendment to the Program guidelines and authorizes that non-profit organizations that operate entertainment uses with an on-sale liquor license that were ordered closed by Executive Orders 20-99 and 20-103 are eligible to receive a grant under the Third Round of Small Business Emergency Grants. ADOPTED by the Lakeville City Council this 4th day of January 2021. ________________________________ Douglas P. Anderson, Mayor _____________________________ Charlene Friedges, City Clerk 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 • 952-985-4499 fax www.lakevillemn.gov City of Lakeville Small Business Emergency Grant Program Guidelines Third Round December 2020 The purpose of the City of Lakeville Small Business Emergency Grant Program – Third Round is to provide emergency assistance to small local businesses in Lakeville, pursuant to The City’s Local Emergency Declaration under Minnesota Statute Chapter 12. Eligible for-profit business applicants will have been adversely impacted by the COVID-19 pandemic. The Third Round will provide grants of $5,000 to small businesses that experienced economic injury related to Minnesota Executive Order 20-99. Funds will help businesses pay for critical expenses such as payroll, rent, mortgage payments, utility bills, and other operational expenses. Providing this support will increase the capacity of small businesses with a physical location in Lakeville to survive the current crisis and will help prevent potential future blight scenarios. The Grant Program’s third round will be administered by the City of Lakeville Community and Economic Development Department. Grant funds will be distributed until the program allocation is exhausted, up to $400,000. The City Administrator is authorized to approve grant payments directly to businesses that comply with all Third Round Grant Program Guidelines. Terms • $5,000 grant based on economic injury from Minnesota Executive Order 20-99. • Funds can be used for operating expenses, including rent payments, mortgage payments, payroll, utilities, payments to suppliers, or other critical business expenses (including expenses related to reopening and personal protective equipment). Eligible Businesses Businesses must meet all of the following criteria to be eligible: • Permanent, physical location within Lakeville city boundaries • Business closed to the public from November 20 through December 18, 2020 in response to Minnesota Executive Order 20-99, including those businesses closed but providing solely take-out • Be a private for-profit business • Be in good standing with the City of Lakeville, Dakota County and the State of Minnesota May not be an ineligible business as provided below 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 • 952-985-4499 fax www.lakevillemn.gov Certain businesses are ineligible, including: • Businesses that do not have a physical address in Lakeville city boundaries • Restaurants with drive-thru windows • Restaurant that did not have dine-in seating for eight or more prior to March 1, 2020 • Non-profit organizations (Except non-profit organizations with a City issued on-sale liquor license) • Businesses engaging in activities prohibited by federal, state or law or regulations • Businesses engaging in gambling enterprises, unless the business earns less than 50% of its annual net revenue from lottery sales NOTE: Third Round applicants will not be disqualified if the business previously received funds from the City of Lakeville Small Business Emergency Grant Programs, Dakota County Business Relief Programs, State of Minnesota Business Relief Programs or federal relief funds (Paycheck Protection Program, Economic Injury Disaster Loan). Application Process • Application Forms will be accepted beginning Dece mber 22 through December 31, 2020. • Application forms can be completed and submitted on lakevillemn.gov. • The City will notify applicants by email within 10 business days of the submittal of a complete application. • Upon notice of an approved application, applicants will be required to submit the following within 10 business days: o A W-9 and Direct Deposit Form o Any additional information deemed necessary by the Community & Economic Development Department to determine eligibility, generate loan documents, disburse loan proceeds, or meet program reporting requirements. o Failure to submit required documentation will result in forfeiture of a grant award. Any forfeited grant money will be awarded to the next business application on the list. Note: The Lakeville City Council reserves the right to revise these guidelines as needed to best address the impact of the current pandemic.