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Home My WebLink About07-28-2020 EDA Packet 0 City of Oak Park Heights Economic Development Authority Tuesday, July 28, 2020 at 5:45 p.m. Oak Park Heights City Hall Council Chambers AGENDA 1. Approve Agenda 2. Approve Minutes from June 3, 2020 3. Consider Request from Chamber of Commerce—"Rally for Your Chamber" 4. Adj ourn Page 1 of 9 ECONOMIC DEVELOPMENT AUTHORITY JUNE 3,2020 MEETING MINUTES 1. Call to Order/Approve of Agenda: President Liljegren called the meeting to order at 6:37 p.m. Present: Vice President Dougherty, Treasurer Runk, Secretary Johnson, and Board Member McComber, City Administrator Eric Johnson, City Attorney Sandstrom, and City Clerk Pinski. Absent: None. Board Member McComber, seconded by Secretary Johnson, moved to approve the Agenda. Roll call vote taken. Carried 5-0. 2. Approve Meeting Minutes —May 18,2020: Board Member McComber, seconded by Secretary Johnson, moved to approve the Minutes. Roll call vote taken. Carried 5-0. 3. Economic Response for Recovery Grant Program—Review Submissions: The EDA Board reviewed the applications and held a discussion. Treasurer Runk, seconded by Board Member McComber, moved to award the grants to the applicants, rounding the award up to the nearest$100 for those that requested less than the maximum allowed. Roll call vote taken. Carried 5-0. City Administrator Johnson asked the Board if they wanted to reopen for additional applications. The Board discussed and determined they would keep the application period closed. 4. Adiourn: Treasurer Runk, seconded by Vice President Dougherty, moved to adjourn at 7:03 p.m. Carried 5-0. Respectfully submitted, Jennifer Pinski City Clerk Page 2 of 9 City of Oak Park Heights 14168 Oak Park Blvd. N•Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574 7-24-20 MEMO TO: Mayor and City Council Members EDA Board Members FROM: Eric Johnson, City Administrator RE: Request for Assistance—USE OF CRF Funds. TWO ITEMS: 1. On June 23rd, 2020 the City Council supported the request of the Chamber of Commerce for$1,000 as they outline in their letter to the City dated June 8th, 2020. The Council did desire the City's EDA to discuss it further and left the final allocation to that body.The City staff memo from June is enclosed. 2. This past week, the City received a request from the Convention and Visitor's Bureau for assistance — being $15,000. Generally, their operations will see a further reduction in activities due to lost revenues and they hope to reposition themselves with updated marketing activities or other approved expenses. While, both entities offer value—both direct and indirect to the City, please note there is a distinction between the CVB and the Chamber, being that the CVB is not a dues-based/"private"entity with an underlying charge to its membership; while the CVB is funded by a duly adopted local lodging tax of 3% and must act as a broader or quasi-public enterprise —this is reinforced as the City serves on the CVB managing board. However, in both instances, based on guidance language from the US TREASURY it appears that the CRF may cover these expenses—excerpts below. Possible Action by EDA BOARD: Consider the approval of each request to be funded by CRF dollars as allocated to the City subject to any final documentation, such as a "disbursement agreement" - as may be required by the City Administrator to effectuate the accurate disbursal and accounting of funds. • The Guidance provides that eligible expenditures may include expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. What is meant by a "small business,"and is the Guidance intended to refer only to expenditures to cover administrative expenses of such a grant program? Governments have discretion to determine what payments are necessary.A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need of such assistance. The amount of a grant to a small business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure under section 601(d)of the Social Security Act, as outlined in the Guidance. • May recipients use Fund payments to remarket the recipient's convention facilities and tourism industry? Yes, if the costs of such remarketing satisfy the requirements of the CARES Act. Expenses incurred to publicize the resumption of activities and steps taken to ensure a safe experience may be needed due to the public health emergency. Page 3 of 9 ,r-t .■a C�'1tfATER 5ti'1,t.WATel 333 Maim Street Na,th,0202 CHAMBER Stillweer,MN 55082 4 f_OMN ERCIE 651.439.4001 —� www.GreaterStiillwuterChdm,ber.com JLIr= 9,2424 Je}--ar}-ieights City CounciI Cit':of w 3k Pa+ Heights 141_-S.3k Perk 6 •,•-. `J. Oa<'DI{ I''i RA '31182 Dear Mayor ane Council Members_ I am proud to sB-.-that at our falll retreat last year,the F-9 ID r 6•_a =ii_c-•_ 5 ctla_ed our mission ,le tement to a d L--e 4',o-,I-cIurive_Our Vision. The ;r G;r'•"C:_;z:-;-f �^at serves; pi;'1:9C^f£5, or. e:.gter£Sf9,v ..�e5gec',�,;7 _ _`n� �;i�r_ •iit ;�£ C' '�.�r:: :j+.Thisyear has v_v tl.. --- --a erg w it 'n3roj'..B'•,'S: C"-e5 e CO-ni 'LII" I IJv =7'0-ge-a}.I -et-er,anti we will I�res15'_I' ---a e"�-,eS to -._-r cur-in—.: c-'1""}„" -,'a}d -v oe' crIBI'•..e -a'v. t Fzs II"I'serev CLII .C-S3S.._ _.;i-„7 LII".OreCct el"Iter -.'.:3V5.OL -asa SC I)--e- g'ea" a'-e--e-. e Bre = 1 -.etl to -e '•; 'tg our comm4-'-:and }=e.irlg th--n"safe.For this reason ,.= mace-re -I-CS -}tC ]-•S-C••=1} a t1.:0'CF-c=ll a .' O-CLII'C-•TI"}L' PVs l-It5'%.':-hich _?e}e'3+es •e':er_.e-Cr•-LIr OL-C•.'l”"'1„" e'Jert5 1----•_}I} _=rve as staplr5 Ct II" •=LII'area: -g in th .,sa-d= of -eovIe,they also c,- -g revenue into the Ch9i—Ler,which it : r.e •='„s vLlr organiza-on to support our community through our deve•-:1~e--, eatle•51” o and outreach programs. Even witreduced hours,our team has been working--ard and long -CLlrs to bring our business comma-i-'y--e -lost up to-date information,guidanc_, and resources -nese past 13 weeks and has ra""_, -n-tr... .:a;_ .o serve our community.The'v}3n-oer is no--f•- --o'of't 503,c;v.1 3ric unfo --na-e dic -vt tI-e f';'-vl' :LISW __=108"'5 CI''Fe ^c11,''}ent ID,C-e:-C11 0'0=�I3-11 r".I' -g ""'S 1'.31"Ivcl"IC TI"e lo_-'•-- con-"}„"1-'r e':'e'".S res -e{Btive '; h-IB_--d o-' 2323- "a}C e sl the'~-v•e,'•..e a•e S-B r-^o a cau e_. 'R311--i Fc -Vo- ra-q}c r —he.` ar--t}nee lege 5.o d Levels of Support; :sae w:.ach} dflyer foi more retails`,. Chamber Champion -$1,000 and Up gift contribution Chamber Booster-$540 Chlalmbelr Neigi°ibor- $100 We take pride in serving the St. Croix Valley and your city,and we look forward to reopening our bL.s-esses and cor.'ruing to -_n23ae•_ur commLI- -v"If you are intere5-ev -a gift cont•ioition to the Grea-ee S'11 vaterC-aq"ren of }"'-}:rce,ple3Sv Ca cur office at 1. 31.439-=�f~'L,ory'c•_. C2 submit YO_ g f# 0-cur's,ec•s-e L1rce•t}c e..r#5 ta"orjLlSt 1~a a deck. lease -e v s".I.po-t';o_ v-e~Iber so yo v-a r,-•ee CB'" S".I'-p-•t y,av: T'"a'-,'„a -01'VCUe C- }Sid--rBtio- '.'',e ec.r_c a-e 3n: es,-ect OL e par.-ership .:#I"I ;''.L1. Rabin Anthony, IOM Executive Director/President Greater Stillwater Chamber of Commerce Page 4 of 9 m July 22, 2020 Dear Oak Park Heights Mayor and City Council, The Stillwater/Oak Park Heights Convention &Visitor Bureau is solely funded by lodging tax revenue so with the impacts of COVID-19, we estimate that our funding will decrease by at least 50%for 2020. Due to this significant decrease in budget to operate our organization, our tourism Board of Directors would like to request assistance from the City of Oak Park Heights via the Coronavirus Relief Fund. We ask for$15,000 in financial aid (our estimated reduction in lodging tax from OPH's properties for 2020) so that we can continue to promote the area's hotels, restaurants, shops, attractions, and events to outside visitors. Tourism is the largest contributor to our local economy so its vital to keep it healthy. We very much appreciate your consideration to assist to our marketing organization and are grateful for any financial help you can provide. Sincerely, Discover Stillwater BOARD OF DIRECTORS: President-Chuck Dougherty,Water Street Inn/Cover Park Manor Vice President-Heidi Rosebud,Just for Me Spa Treasurer-Tim Ralstad, Lowell Inn Secretary-Larry Loyer, Rivertown Inn Sara Jesperson, Meadowlark Cottage Rachel Jensen, Lora Nikole Diethert, Hotel Crosby Alex Eder,Water Street Inn Sherri Hopfe, Mainstreet Independent Business Association Robin Anthony, Greater Stillwater Chamber of Commerce MARKETING CONTRACTORS: Marketing Director, Christie Rosckes Marketing Assistant,Jen McCormick 4`,".i.,�,-sraF.•r7�k Pti.**k" I-��IC_iIZL: d.�i- Sf-T''i7 �,;n61•,'^—��t j!}r2)!.VIS4Tt'°Y i-?rfi"M?CS 11 thf47iC7.�it t'Q�[,r�rl��`-+.rYtr?..r;ir31 F _. F' =, y i;`c;S :�€t;..I �.i>�e.5€'r8< x�;:_;•,CiSC ,.r..rza111',s.�it^';t.C�!?'� Page 5 of 9 Oak Park Heights Request for Council Action Meeting Date: June 23rd, 2020 Agenda Item Title: Consider Request from Chamber of Commerce—"Rally for Your Chamber" Time Required: 5 minutes Agenda Placement: New Business Originating Department/Requestor: Eric Johnson, City Administrator Requester's Signature moi` Action Requested: Discussion/Possible Action Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). The City has received the enclosed request for support from the Greater Stillwater Chamber of Commerce —"Rally for Your Chamber". It is of course unknown what the deep financial position may be of the Chamber and/or its ability to remain financialy viable in these type of economic environments as it is largely member driven;what Staff does know is that the Chamber was(and remains) deeply engaged in the COVID-19 response to the general business community—offing a number of support options, acting as a data clearing-house and perhaps most importantly acting as a vital "listener" and advocate for all local businesses—whether they were a member or were not. From a legal perspective,the State Auditor /Attorney General positions have been that cities should not pay "dues"to such entities—see the enclosed document from 2007. However, cities may allocate funds to entities that provide and clear public-purpose. Chambers of commerce do fullfill such a roll in many communities(as community advocates and resource) and in the most recent example noted above,this is the case under the COVID-19 episode. So, all this said,if the Council desired to provide a contribution to the Chamber it would meet a public purpose rationale. Staff would recommend TWO caveats: 1. That the Chamber continues to help any and all businesses in the City and not solely its members during the general COVID-19 era. 2. That the funding and allocation is channeled through the City's EDA Note: Of the $50,000 allocated to the previous COVID-19 Grant program; only $36,500 was expended. Page 6 of 9 GREATER STILLWATER CHAMBER OF COMMERCE GREAYER Sr ILLWAF ER CHAMBER RALLY FOR YOUR CHAMBER! ,f COMhERCE - ; Support your Chamber so your Chamber can support YOU! 'N,.dr fura�»stt�l:nxr.�ua.rr.. jr V, rA WHY RALLY? g� The Chamber of Commerce is committed to serving our community and keeping them _ H"PION safe;for this reason all of our upcoming Community Events offerings have been cancelled or postponed until further notice.Our Community Events not only serve as staples of commerce and camaraderie in our area,drawing in hundreds and thousands, they also bring revenue into the Chamber,which in turn allows our organization to « « « « support our community through our development,leadership and outreach programs. ««r + « r + Due to the impact of COVID-19,we are facing unprecedented and uncertain times as we adapt and develop new ways to reach out and connect with aur community-As with many organizations during this time,we are facing financial challenges-In addition,as e Nonprofit 501c6,we do not qualify for any federal or state business support. We can only continue to support our community in the way we have been if our CHAMBER community rallies for us-Please consider a donation to our Rally for The Chamber campaign-Embrace Our Future! IMBOOSTER DID YOU KNOW? As a Chamber We Are: Community Leaders we are continually gathering and sharing information from local,state and national resources Quickly Adapting CHAM to the changing circumstances-always keeping our Mission in the forefront,as an min inclusive organization,of serving,advocating and promoting the interests of our businesses,while enriching the life of our community 6ecomIng Experts $100+ in the areas of small business loans,state and federal disaster relief,human resources and virtual communications Embracing and Developing new i n itiatives,community engagement•,tools, ma rketing ca m paigns a nd vi rtua I events Strengthening and Growing local,regional,stare and national relationships •-r.com 0 651-439-4001 0 333 North Main Stirmt#202 Page 7 of 9 :ipiro •:.ti ST' .TE F II NESOT'A )FFIC-E OF TfiE NATE iUDIT It SUITE 500 (651)2M-2551(Voice) 525 PARK STREET (651)29664755(Fax) REBECCA OTTO SANT PAUL,MN 55103-2,139 �+tA.ar�;t� ate. (E-mail) STATE AUDITOR 1-Sf11.1-627-3529(Relay Senice) Statement of Position Public Expenditures Donations and Dues Public entities are often asked to give funds to support various groups and activities. While the causes may be worthwhile, public, entities need to be cautious when making anv financial comnutments invoking pubic funds_ Generally, in order to spend money on something, a public entity must have authority to do so. Authority for an expenditure may be specifically stated in a statute or charter,or it may be implied as necessary to do what an express poli;ver authorizes_ In addition_ the expenditure must be for a -public purpose- Gift s.iD onations urpose_'Gifts.Donations to Private Iudivzduals.Organizations Following these general principles_ donations to people, non-profits- charities, or other groups are not permitted unless they are based upon specific statutory or charter authority- For example. the Minnesota Attorney General's Office has issued opuuons finding that cities have no authority to donate city funds to 4-H Clubs, the Red Cross,or the Boy Scouts. The assumption is that a gift of public funds to an individual or private entity necessarily serves a private rather than a public purpose. Before a public entity makes a contribution, it is important for that entity to determine that it has specific authorization to make the expenditure. Here are some examples of specific, statutorily authorized appropriations: + Artistic Organizations. A county, city or tovim may appropriate money to support artistic organizations_ + Historical Causes. A town and most cities may annually appropriate a specified amount to a county historical society affiliated v�ith, and approved by, the Minnesota Historical Society. The Attorney General's Office recognizes that a city can sponsor a centennial celebration. Cities have express authority to commemorate important and outstanding events in city history- Senior./youth istory.Senior/youth Centers. A county, city or town may appropriate money to support the facilities,programs, and services of a public or private. not-for-profit senior citizen center or youth center. + Promotion. A city or urban tovm may appropriate up to 550,000 annually to an incorporated development society or organization of this state, for promoting, advertising, improving, or developing the economic and agricultural resources of Reviewed_ February 2008 Revised: March 2007 2007-1017 Page 8 of 9 the city or urban town.t Similarly,a county may appropriate an unlimited amount of money to such an entity for promoting, advertising, improving or developing the economic and agricultural resources of the county_ + Public Recreation Programs. Counties, cities, towns and school districts may spend fimds to operate programs of public recreation, recreational facilities, and playgrounds. These programs may be conducted independently or with any nonprofit organization. Public entities should consult with their attorney and cities should review the League of Minnesota Cities research memo "Public Ptupose Expenditures- for a more comprehensive list of authorized city expenditures. If the public entity wants to make other donations,the entity may wish to seek specific statutory authority for them_ Additionally, public entities may enter into contracts with an organMation to accomplish tasks that the entity is authorized to perform by statute or charter. For example, a city could not give money to the Boy Scouts for a recycling program, but the city could enter a contract with the Boy Scouts to do part of its recycling program_ The amount of money paid to the Boy Scouts must be related to the value of the services they provide to the City. Memberships and Dues There is no general authorization for cities to join"private"organizations,but there may be specific statutory or charter authority to join specific organizations. For example, cities and urban towns in Minnesota may pay dues to became members of the League of Minnesota Cities. Similarly. cities. counties, and towns may appropriate money for membership in county,regional, state,and national associations of a civic,educational,or governmental nature_ These associations must have as their purpose the betterment and improvement of municipal governmental operations. This authorization also allows public entities to participate in the meetings and activities of these associations. The Attorney General's Office has determined that local units of government may not pay dues to a local chamber of commerce. However, because cities may appropriate up to 550,000 to an incorporated development society or organization for promotional activities,a city could contract with a local chamber of conunerce for one of the purposes authorized by statute,such as promoting the city_2 The chamber's use of the public funds would be limited to the statutorily authorized activities. We urge cities to review documents submitted by the chamber of commerce to verify- that the money is spent for contracted statutory purposes. In addition,Economic Development Authonties(EDAs)have authority to conduct activities advancing the city and its economic development,and to carry out other public relations activities to promote the city and its economic development. `An EDA has broader authoritc to join an officiaL industrial commercial or trade association.or other organization concerned with one of the EDA's authorized purposes. Reviewed: February 2008 2 Revised- March 2007 2007-1017 Page 9 of 9