CITY OF GRAND HAVEN BROWNFIELD REDEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT CORPORATION Special Electronic Meeting Monday, May 4, 2020, at 4:00 p.m. Please notify Amy Bessinger at (616) 847-4893 ([email protected]) or Patrick McGinnis at (616) 847-4888 ([email protected]) if you’ll be unable to attend. AGENDA 1. Call to Order / Roll Call 2. Approval of the minutes of the April 21, 2020 meeting. 3. Call to the Audience – first opportunity At this time, members of the audience may address the Brownfield Redevelopment Board and the Economic Development Corporation (BRA/EDC) on any item, whether on the agenda or not. Those addressing the BRA/EDC are asked to provide their name and address and will be limited to three minutes of speaking time. The BRA/EDC will hear all comments for future consideration but will not have a response at this time. Either type in your comment on the Facebook live feed or call (231) 638-4087. If you get a busy signal or the phone is not answered, please wait, watch and call back. We will take all callers. 4. Discussion items - a. Consideration to provide small business loans, up to $5,000 from the revolving loan fund, that will be reviewed by a sub-committee of the EDC and brought to the board for approval. b. EDC & BRA financials are included in the packet. c. Other business as needed. 5. Call to the Audience – second opportunity At this time, members of the audience may address the Brownfield Redevelopment Board and the Economic Development Corporation (BRA/EDC) on any item, whether on the agenda or not. Those addressing the BRA/EDC are asked to provide their name and address and will be limited to three minutes of speaking time. The BRA/EDC will hear all comments for future consideration but will not have a response at this time. Either type in your comment on the Facebook live feed or call (231) 638-4087. If you get a busy signal or the phone is not answered, please wait, watch and call back. We will take all callers. 6. Adjournment
20
Embed
CITY OF GRAND HAVEN BROWNFIELD REDEVELOPMENT … · The EDC/Brownfield Development Authority of the City of Grand Haven wants to help small businesses in the City of Grand Haven by
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
CITY OF GRAND HAVEN
BROWNFIELD REDEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT CORPORATION
Special Electronic Meeting
Monday, May 4, 2020, at 4:00 p.m.
Please notify Amy Bessinger at (616) 847-4893 ([email protected]) or Patrick McGinnis at (616) 847-4888 ([email protected]) if you’ll be unable to attend.
AGENDA 1. Call to Order / Roll Call 2. Approval of the minutes of the April 21, 2020 meeting. 3. Call to the Audience – first opportunity At this time, members of the audience may address the Brownfield Redevelopment Board and
the Economic Development Corporation (BRA/EDC) on any item, whether on the agenda or not. Those addressing the BRA/EDC are asked to provide their name and address and will be limited to three minutes of speaking time. The BRA/EDC will hear all comments for future consideration but will not have a response at this time. Either type in your comment on the Facebook live feed or call (231) 638-4087. If you get a busy signal or the phone is not answered, please wait, watch and call back. We will take all callers.
4. Discussion items -
a. Consideration to provide small business loans, up to $5,000 from the revolving loan fund, that will be reviewed by a sub-committee of the EDC and brought to the board for approval.
b. EDC & BRA financials are included in the packet.
c. Other business as needed.
5. Call to the Audience – second opportunity At this time, members of the audience may address the Brownfield Redevelopment Board and
the Economic Development Corporation (BRA/EDC) on any item, whether on the agenda or not. Those addressing the BRA/EDC are asked to provide their name and address and will be limited to three minutes of speaking time. The BRA/EDC will hear all comments for future consideration but will not have a response at this time. Either type in your comment on the Facebook live feed or call (231) 638-4087. If you get a busy signal or the phone is not answered, please wait, watch and call back. We will take all callers.
6. Adjournment
CITY OF GRAND HAVEN BROWNFIELD REDEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT CORPORATION
Regular Meeting Held Remotely via ZOOM and FaceBook Live
Tuesday, April 21, 2020 at 4:00 p.m.
MINUTES- draft Call to Order / Roll Call Present: Chair Joy Gaasch, Mayor Pro-Tem Mike Fritz, Brook Bisonet, John Hierholzer, Eric Schmidt, Mayor Bob Monetza, Geri McCaleb, Jim Bonamy, Tom Braciak Also Present: Amy Bessinger, Ashley Latsch, Elizabeth Butler, Pat McGinnis, Trina Robinson Call to Audience Viewers were welcome to enter comments into FaceBook Live or call (231) 638-4087 Approval of the minutes of the March 2, 2020 meeting. Motion by Mike Fritz, second by Joihn Hierholzer to accept the minutes of March 2, 2020 mintues. Yes: Joy Gaasch, Mike Fritz, Brook Bisonet, John Hierholzer, Eric Schmidt, Bob Monetza, Geri
McCaleb, Jim Bonamy, Tom Braciak No: None. Motion Carries. Notos Payment Relief Tony Noto requested a postponement of principal payments until the economy re-opens and the restaurant is creating cash flow. Motion by Hierholzer, second by Fritz, to approve Noto’s interest only payments until business re-opens for at least one month. Motion carries. Yes: Joy Gaasch, Mike Fritz, Brook Bisonet, John Hierholzer, Eric Schmidt, Bob Monetza, Geri
McCaleb, Jim Bonamy No: None. Motion Carries. Burzurk Loan Request Consideration of a Loan Request from Burzurk Brewing Company. Tyler Forbes, owner, explained that he had submitted a full application for $75,000 gap financing to get his small business open. The business experienced a delay of seven months of unexpected developments, including requirement of a $20,000 firewall. Now the virus quarantine has stopped everything while expenses continue to accrue. Most construction is complete. Everything is pre-approved including health department, mechanical inspections and site plan. Parking lot will be paved before opening. Board Members asked questions about projected cash flow and repayment expectations.
Motion by Bob Monetza, second by John Hierholzer, to approve a loan to Burzurk Brewery in the amount of $60,000 for five years at 3% with a waiver of principal payments until the business has been fully open and running for one month or six months from issuance of loan, whichever happens first and authorizing signatures as needed. Yes: Joy Gaasch, Mike Fritz, Brook Bisonet, John Hierholzer, Eric Schmidt, Bob Monetza, Geri
McCaleb, Jim Bonamy, Tom Braciak No: None. Motion Carries. COVID 19 Joy led a discussion about faltering businesses and possible assistance we might be able to offer. Eric, Brook and Bob volunteered to meet with Joy and Elizabeth to review need and available resources to see if the EDC can come up with a means and method to offer assistance. Adjourn Motion by Brook Bisonet to adjourn at 5:06 p.m., second by Mike Fritz. Motion carries.
EDC Revolving Loan Fund – Small Business Economic Assistance Loan [DRAFT]
The EDC/Brownfield Development Authority of the City of Grand Haven wants to help small businesses in the City of Grand Haven by utilizing its existing Revolving Loan Fund for relief loans. Twenty area small businesses will be able to access a $5,000 loan to use as Working Capital.
Qualifications for the loan include:
• the business must be located within the City of Grand Haven • have 5 or fewer Full Time Equivalent Employees • have experienced a loss caused by COVID-19 • have been unsuccessful in getting any other relief packages (such as PPP, EIDL, SBA, MEDC, or
any other relief loan from a banking institution) • be in good standing with the City of Grand Haven • local owner(s) • financially stable before the Pandemic • be a for-profit company • for local business owners with multiple small businesses, only one business per owner will be
eligible to receive any loan proceeds
Priority Businesses
The Small Business Emergency Assistance Loan is designed to support small, vulnerable businesses including:
• Service businesses: A service-based business sells something they do, rather than a physical product. This could include, but is not limited to, lawn care, cleaning, hair care, graphic design and consulting.
• Makers: Makers produce, build, sew or craft the products that they sell. These can include, but are not limited to, jewelry, clothing, furniture and home goods. Makers must have a brick & mortar location within the City of Grand Haven limits
• Small businesses with a physical location in the City of Grand Haven • Restaurants and other prepared food businesses: A business that sells prepared food in a fixed,
physical location • Retail businesses with a physical location in the City of Grand Haven.
What businesses are NOT eligible to apply?
• Businesses that are franchises and chains are not eligible to apply, unless the franchisee is a local City of Grand Haven resident
• Independent contractors operating multilevel or network marketing businesses (such as Avon, Mary Kay, 5LINX, Pampered Chef, etc.) are not eligible to apply.
• Independent contractors working on gig platforms (such as Airbnb, Fiverr, Uber, Lyft, Instacart, etc.) are not eligible to apply.
• Nonprofit organizations are not eligible to apply. • Business owners who have received any loan or grant relief packages (such as PPP, EIDL,
SBA, MEDC or any other relief loan from a banking institution) are not eligible to apply • Restaurants and other prepared food businesses without a physical, brick and mortar
location (for example: food trucks) are not eligible to apply
The EDC will partner with the Chamber of Commerce’s local Economic Development arm to evaluate the loan applications. Terms of the loan include 5 years at 0% interest, automatic monthly withdrawals. There will be a one-time loan processing fee in the amount of $25, which will be payable when the loan documents are signed. Interest only payments may be granted upon request for up to the first 6 months of the loan. One personal guarantee will be required for the loan.
Application for EDC Small Business Emergency Assistance Loans [DRAFT] Note: The idea is to have this application be online and submitted directly to the Economic Development Director at the Chamber Business Name Business Address Business Phone & alternate phone (cell) Contact and email Tax ID or SSN How many years have you been in business? Owner information – name, address, phone, email (for each owner) Number of Full Time Equivalent Employees (weekly average in 2019) Is your business Seasonal or Year-Round? Current status of operation – open (state % open) or closed (give date closed) Has your company received any relief funds from the SBA, MEDC, PPP, EIDL or any other financial institution during this Pandemic? Describe how your business has been impacted by COVID-19. Monthly sales April 2019 Monthly sales April 2020 Please email 3 years of income statements (preferably in a comparable format), or 3 years of tax returns for the years 2019, 2018 and 2017 to Elizabeth Butler ([email protected]) Director of Economic Development Strategic Directions at the Chamber. If you have not been in operation for 3 years, please upload the requested documents for each of the years in operation. Please describe the planned use for the funds you are applying for. I certify that the information I provided is accurate and truthful. If awarded, I will only use the funds for working capital (including payroll, healthcare, rent, utilities and general operations). I am in good standing with the City of Grand Haven for taxes and utilities as of March 2020. __________________________________ ____________________________ ___________ Signature Title Date
INTERNAL Scoring Rubric [DRAFT] __________ Financial Health (Up to 20 points). During normal operations, what has the financial
health of the company been? Profit Loss $100k - $1.2MM Revenue 20 15 $1.21MM - $5MM Revenue 15 10 $5MM - $12MM Revenue 10 5 $12MM + 5 1 __________ Type of Business (Up to 20 points). Consumer facing Industry 20 points (interacts personally with customers) Industrial Industry 10 points Professional Services 10 points __________ Layoff Status (Up to 25 points). Since the Stay at Home orders were issued, how many
employees have been laid off? For businesses with 5 employees: All employees laid off 25 points 4 employees laid off 22 points 3 employees laid off 18 points 2 employees laid off 15 points 1 employee laid off 10 points For businesses with 4 employees: All employees laid off 25 points 3 employees laid off 22 points 2 employees laid off 18 points 1 employee laid off 15 points For businesses with 3 employees: All employees laid off 25 points 2 employees laid off 22 points 1 employee laid off 18 points For businesses with 2 employees: All employees laid off 25 points 1 employee laid off 22 points For businesses with 1 employee: All employees laid off 25 points
__________ Is the business in the DDA or Commercial Corridor? (Up to 5 points) Yes = 5 points No = 0 points __________ What is the multiplier effect of this business? (Up to 10 points) Manufacturing & Agriculture 10 points Transportation 9 points Construction 8 points Hospitality, entertainment, recreation 7 points Information 6 points Education, Healthcare, Social assistance 5 points Retail Trade 4 points Other 3 points
Ideal company guideline [DRAFT] [INTERNAL]
• But, for financing (they have not been able to get funding from any other source) • Local owners • Franchise ok if the franchisee is local • Smaller businesses rate higher than larger businesses • Weighted toward the consumer facing businesses (tourism, hospitality) • Weighted toward businesses in the DDA or Commercial Corridor • Business needs to be financially stable before COVID-19 • # of years open is not a criteria to consider • Business has been negatively impacted financially from COVID-19
o Simple Test – April 2019 sales compared to April 2020 sales • Weighted toward businesses who have laid off employees. The more laid off, the more points • This is for businesses with 5 or fewer Full Time Equivalent Employees (avg for year) • The business must be current with their obligations to the City of Grand Haven (taxes/water)
and in good standing • $100,000 available initially for the City of Grand Haven businesses only • Business applications will be scored and the top 20 business scores will be selected for the loans • The loan review committee will review all applications. The top 20 will be presented to the full
EDC Board for approval. • Applications will be online, using the Chamber of Commerce’s website. Financial statements
must be emailed to Elizabeth Butler, the Director of Economic Development Strategic Directions at the Chamber ([email protected])
• If a local business owner has multiple businesses within the City, they will only be eligible to receive the loan funds for one of the businesses
COMPARATIVE BALANCE SHEET FOR CITY OF GRAND HAVEN 1/5Page:05/01/2020 02:00 PMUser: abessingerDB: City Of Grand Haven Fund 251 Economic Development Corp
PERIOD ENDED04/30/2020
PERIOD ENDED04/30/2019DescriptionGL Number
*** Assets ***
185,101.82 179,669.67 Cash251-000-001.00121,969.75 155,764.60 Economic Development Loan251-000-061.02
307,071.57 335,434.27 Total Assets
*** Liabilities ***
0.00 0.00 Total Liabilities
*** Fund Balance ***
336,215.99 343,761.32 Fund Balance251-000-390.00
336,215.99 343,761.32 Total Fund Balance
336,215.99 343,761.32 Beginning Fund Balance
(29,144.42)(8,327.05)Net of Revenues VS Expenditures307,071.57 335,434.27 Ending Fund Balance307,071.57 335,434.27 Total Liabilities And Fund Balance
COMPARATIVE BALANCE SHEET FOR CITY OF GRAND HAVEN 2/5Page:05/01/2020 02:00 PMUser: abessingerDB: City Of Grand Haven Fund 252 Brownfield Redevelop. Fd. Close 063020
(2,130.02)12,422.62 Net of Revenues VS Expenditures118,055.63 123,384.03 Ending Fund Balance118,055.63 123,384.03 Total Liabilities And Fund Balance
COMPARATIVE BALANCE SHEET FOR CITY OF GRAND HAVEN 3/5Page:05/01/2020 02:00 PMUser: abessingerDB: City Of Grand Haven Fund 253 Brfd LSRRF TIF Rev Fund
PERIOD ENDED04/30/2020
PERIOD ENDED04/30/2019DescriptionGL Number
*** Assets ***
69,428.39 25,737.52 Cash253-000-001.00
69,428.39 25,737.52 Total Assets
*** Liabilities ***
0.00 0.00 Total Liabilities
*** Fund Balance ***
53,927.04 45,586.20 Fund Balance253-000-390.00
53,927.04 45,586.20 Total Fund Balance
53,927.04 45,586.20 Beginning Fund Balance
15,501.35 (19,848.68)Net of Revenues VS Expenditures69,428.39 25,737.52 Ending Fund Balance69,428.39 25,737.52 Total Liabilities And Fund Balance
COMPARATIVE BALANCE SHEET FOR CITY OF GRAND HAVEN 4/5Page:05/01/2020 02:00 PMUser: abessingerDB: City Of Grand Haven Fund 255 Brfd TIF Grand Landing Rev Fund
31,440.29 (154,718.32)Net of Revenues VS Expenditures77,281.54 (27,569.19)Ending Fund Balance
5,978,352.59 5,883,404.53 Total Liabilities And Fund Balance
COMPARATIVE BALANCE SHEET FOR CITY OF GRAND HAVEN 5/5Page:05/01/2020 02:00 PMUser: abessingerDB: City Of Grand Haven Fund 355 Brfd TIF Grand Landing Debt Fund
PERIOD ENDED04/30/2020
PERIOD ENDED04/30/2019DescriptionGL Number
*** Assets ***
0.00 0.00 Total Assets
*** Liabilities ***
0.00 0.00 Total Liabilities
*** Fund Balance ***
0.00 333.36 Fund Balance355-000-390.00
0.00 333.36 Total Fund Balance
0.00 333.36 Beginning Fund Balance
0.00 (333.36)Net of Revenues VS Expenditures0.00 0.00 Ending Fund Balance0.00 0.00 Total Liabilities And Fund Balance
REVENUE AND EXPENDITURE REPORT FOR CITY OF GRAND HAVEN 1/6Page: 05/01/2020 12:34 PMUser: abessingerDB: City Of Grand Haven
PERIOD ENDING 04/30/2020
% BDGTUSED
UNENCUMBEREDBALANCE
ENCUMBEREDYEAR-TO-DATE
ACTIVITY FORMONTH 04/30/20
INCR (DECR)
YTD BALANCE04/30/2020
NORM (ABNORM)2019-20
AMENDED BUDGET
2019-20ORIGINAL
BUDGETDESCRIPTIONGL NUMBER
Fund 251 - Economic Development CorpRevenuesDept 040 - Revenue Accounts