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HomeMy WebLinkAboutII.A - REVISED - HEART COVID Business Assistance HEDRA Memorandum To: HEDRA Board of Commissioners From: Rusty Fifield, Economic Development Coordinator John Hinzman, Community Development Director Date: May 4, 2020 Subject: HEART Grant Program - Revised Action Requested Adopt Resolution No. 05-1-20 A Resolution Establishing the Hastings Economic Assistance for Recovery Together Grant Program (see Attachment C). Background At the end of last week, we received feedback from Downtown businesses about the proposed HEART grant program. The consensus of this feedback was the desire for a broader range of uses for the grant funds. In response to this input, we have revised the description and application form for the grant program. The changes maintain the objective of the program to fund activities directly related to COVID-19, but allow businesses to make broader use of these funds. The revised Grant Program Description appears in Attachment A. The changes are concentrated in Page 2 under Eligible Activities. The list has been expanded to include printing, advertising, and supplies needed to restart operations, and other extraordinary costs related to COVID- nineteen. The Eligible Activities specifically exclude routine operating expenses. We have clarified that HEDRA will make the determination of eligible activities and approval of grant funds. The revised Application Form can be found in Attachment B. The primary changes in the Form can be found on Page 3. The changes include:  New entry for the amount of grant requested, recognizing that a business could request less than the maximum $4,000.  Add clarification requiring documentation for reimbursement of expenses.  New eligible activities added to the table on Page 3. The revised Form also contains additional information in the Internal Use section of the form on Page 5. HEART Grant Program - Revised May 4, 2020 Page 2 - An updated resolution is included in Attachment C. The substance of the resolution is not changed from the May 1 memorandum. The resolution has been adjusted to match the details of the revised Program. HEART Grant Program - Revised May 4, 2020 Page 3 - Attachment A Hastings Economic Assistance for Recovery Together Grant Program Description Hastings Economic Development and Redevelopment Authority Applications Must Be Submitted By 5:00 PM, May 12, 2020 The Need for Assistance The Hastings City Council has determined that the encouragement and the financial support of economic development and redevelopment in the City is vital to the orderly development and financing of the City and in the best interests of the health, safety, prosperity and general welfare of the citizens of the City. The City Council established the Hastings Economic Development and Redevelopment Authority (HEDRA) to address economic development and redevelopment issues facing the community. In 2020, the critical economic development issue is the impacts of the Coronavirus. In March 2020, the World Health Organization declared the worldwide outbreak of Coronavirus to be a pandemic (the “Pandemic” or “COVID-19”). The Governor of Minnesota has issued a series of executive orders to help limit the spread of the Pandemic, including declaring a peacetime public emergency, directing the closure of all schools, and ordering the closure of bars, restaurants and other places of public accommodation (the “Executive Orders”). The U.S. Center for Disease Control and Prevention (the “CDC”) has issued a series of directives to limit personal interaction to slow the spread of the Pandemic. These actions have had significant adverse effects on local businesses, including closure, significant reduction in revenues, and loss of employees. The continuation of these events will have devastating short-term and long-term effects on the well-being of the community. After evaluating alternative means of assistance, HEDRA has established the Hastings Economic Assistance for Recovery Together (HEART) Program. The objective of HEART is to help local businesses adapt business practices to protect the health of customers and employees and thereby establishing the means for successful operation. This assistance conforms with City policies on Financial Assistance and Business Subsidy and with state law governing business subsidies. HEART Grant Program - Revised May 4, 2020 Page 4 - Program Description Qualifying businesses are eligible to receive a grant in an amount not to exceed $4,000 to pay for changes in business practices for customer and employee safety due to COVID-19. The total amount of HEART grants is $200,000. Eligible Activities The grant may only be used for costs directly related to activities needed to adapt the business to operations related to COVID-19. Eligible activities include:  Building improvements, equipment and furnishings  Personal protective equipment  Sanitizing supplies  Signage  Employee training  Transition to online sales  Printing  Advertising  Supplies needed to restart operations  Other extraordinary costs directly related to COVID-19. Grant funds may be used to reimburse for expenditures made for the activities after March 25, 2020 (Governor’s Stay at Home Order) and prior to the receipt of the grant. Grant funds may not be used to pay for regular business expense including payroll, rent, utilities, and taxes. The grant application will include a description of the plan for operating under the restrictions of COVID-19, the proposed use of grant funds and the relationship to COVID-19. Documentation of expenses requested for reimbursement must accompany the application. In submitting the application, the business will commit to using the grant funds only for these uses. HEDRA will make the final determination of eligibility and the amount of the requested grant to approve. Eligible Businesses Businesses that meet the following criteria are eligible to submit grant applications: 1. The business must be in operation at the current location within the City of Hastings at the time of application. 2. The business must be registered with the Minnesota Secretary of State unless it is a sole proprietorship or partnership that is not required to file with the Secretary of State’s Office to do business in Minnesota 3. The business cannot be delinquent on any fees or charges with the City of Hastings. 4. The business must have employed the equivalent of 20 or fewer full-time employees (FTE) on March 1, 2020. (A full-time employee = 1 FTE. Each part-time employee = 0.5 FTE.) 5. The grant application must be signed by the business owner. HEART Grant Program - Revised May 4, 2020 Page 5 - Reporting Grant recipients must agree to complete and submit the Grant Report Form provided by HEDRA. The report will include documentation of activities paid for with grant funds and a description of how these activates affected operations and the response to COVID-19. Application Process The application form for the HEART grant will be available on the City of Hastings website (www.hastingsmn.gov) beginning on May 6. Completed applications must be submitted via email to HEART@hastingsmn.gov no later than 5:00 PM CDT on May 12, 2020. Only complete grant applications will be considered for funding. The applications will be reviewed and evaluated by a Grant Review Committee established by HEDRA. The Committee will decide the recipients and amounts of the HEART grants. Businesses receiving grants will be contacted via email on May 14, 2020. Grant funds will be available for disbursement on May 15. The Grant Review Committee will assign a score to each application based on the following factors:  Overall completeness of grant application (maximum 15 points).  Explanation of impact of COVID-19 on business practices (maximum 25 points).  Description of plan to address these impacts (maximum 25 points).  Effectiveness of proposed activities to be undertaken with grant funds (maximum 25 points).  Lack of other financial assistance from Federal, State and City sources (maximum 10 points). This score will be used to allocate grant funds in the event that the total amount of applications exceeds the $200,000 limit. HEART Grant Program - Revised May 4, 2020 Page 6 - Attachment B Hastings Economic Assistance for Recovery Together Grant Application Form Hastings Economic Development and Redevelopment Authority Please read the Grant Program Description Applications Must Be Submitted By 5:00 PM, May 12, 2020 Applicant Information Business Legal Name: Business Operating Name (if different): Street Address: City: State: Zip Code: Mailing Address (if different): Primary Contact Information Name: Phone: Email: Legal Structure of Business: Limited Liability Entity Corporation Sole Proprietorship Partnership Federal EIN: State Tax ID Number: Number of Employees on March 1, 2020 Full-time Part-time Please provide a brief description of your business: HEART Grant Program - Revised May 4, 2020 Page 7 - How has COVID-19 affected your business? Briefly, what is your plan to reopen/recover when the Governor lifts the current restrictions? What changes to your business practices and facilities are needed to provide a safe environment for employees and customers and to otherwise operate in this environment? HEART Grant Program - Revised May 4, 2020 Page 8 - Amount of grant requested (not more than $4,000): $ How will you use the HEART Grant? Provide estimated costs and source of estimate. If any of the Eligible Activities are to reimburse for expenses made after March 25, please enter “Reimbursement” in the Source of Estimate column and attach appropriate documentation to this application. Eligible Activities Estimated Cost Source of Estimate Building improvements, equipment and furnishings Personal protective equipment Sanitizing supplies Signage Employee training Transition to online sales Printing Advertising Supplies needed to restart operations Other extraordinary costs directly related to COVID-19 Other Explain Purpose of Other: HEART Grant Program - Revised May 4, 2020 Page 9 - Have you applied for any Federal or State assistance? If Yes, please complete the table. Program Use of Program If Submitted Payroll Protection Program (SBA) Not aware of program Chose not to apply Not eligible Submitted application Amount requested $ Amount received $ Economic Injury Disaster Loan (SBA) Not aware of program Chose not to apply Not eligible Submitted application Amount requested $ Amount received $ Economic Injury Disaster Loan Advance (SBA) Not aware of program Chose not to apply Not eligible Submitted application Amount requested $ Amount received $ Small Business Emergency Loan (DEED) Not aware of program Chose not to apply Not eligible Submitted application Amount requested $ Amount received $ Small Business Loan Guarantee (DEED) Not aware of program Chose not to apply Not eligible Submitted application Amount requested $ Amount received $ Have you received any other financial assistance related to COVID-19? Yes No If Yes, please describe. HEART Grant Program - Revised May 4, 2020 Page 10 - Certification By signing below, I certify that: 1. I have read the HEART Grant Program Description and I agree to abide by all of the terms and conditions of the Program. 2. Grant funds will only be spent on the eligible activities described in this application and I will provide a report to HEDRA on the use of grant funds no later than October 31, 2020. 3. The information provided in this application and in any supporting material that accompanies this application is true and complete to the best of my knowledge. 4. The Hastings Economic Development and Redevelopment Authority (HEDRA) and its staff have the right to verify any information contained in this application, including credit reports on the individuals and the business, and may contact any individuals and institutions involved with the proposed project. Signature: ___________________________________ Date: _________________ Printed Name: _______________________________________ Title: _______________________________________________ Completed applications must be submitted via email to HEART@hastingsmn.gov no later than 5:00 PM CDT on May 12, 2020. Only complete grant applications will be considered for funding. HEART Grant Program - Revised May 4, 2020 Page 11 - Application Number: Application Received Date: Time: Applicant is not delinquent on any City fees or charges. Yes No Comments Applicant is registered with Minnesota Secretary of State. Yes No Comments Amount requested: $ Amount awarded: $ Date notified of award: Date grant funds disbursed: Date report received: FOR INTERNAL USE ONLY HEART Grant Program - Revised May 4, 2020 Page 12 - Attachment C HASTINGS ECONOMIC AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 2020-06 A RESOLUTION ESTABLISHING THE HASTINGS ECONOMIC ASSISTANCE FOR RECOVERY TOGETHER GRANT PROGRAM Board member ___________________________ introduced the following Resolution and moved its adoption: WHEREAS, the World Health Organization has declared the worldwide outbreak of Coronavirus to be a pandemic (the “Pandemic”); and WHEREAS, the Governor of Minnesota has issued a series of executive orders to help limit the spread of the Pandemic, including declaring a peacetime public emergency, directing the closure of all schools, and ordering the closure of bars, restaurants and other places of public accommodation (the “Executive Orders”); and WHEREAS, the U.S. Center for Disease Control and Prevention (the “CDC”) has issued a series of directives to limit personal interaction to slow the spread of the Pandemic; and WHEREAS, these actions have had significant adverse effects on local businesses, including closure, significant reduction in revenues, and loss of employees; and WHEREAS, local businesses will be required to implement changes in business practices related to the Pandemic in order to return to operation and such changes place an additional economic burden on these businesses; and WHEREAS, the City Council has determined that the encouragement and the financial support of economic development and redevelopment in the City is vital to the orderly development and financing of the City and is in the best interests of the health, safety, prosperity and general welfare of the citizens of the City and has established the Hastings Economic Development and Redevelopment Authority (HEDRA) to accomplish these objectives; and WHEREAS, City Financial Assistance and Business Subsidy Criteria state that retaining existing jobs, enhancing economic stability and addressing changes in the economy are public purposes. NOW THEREFORE BE IT RESOLVED as follows: 1. The Hastings Economic Assistance for Recovery Together Grant Program is approved pursuant to the Grant Program Description in the May 4, 2020 memorandum “HEART Grant Program – Revised”. 2. The total amount of grants awarded may not exceed $200,000. 3. The Executive Director is authorized to prepare an application form and to solicit applications from eligible businesses. HEART Grant Program - Revised May 4, 2020 Page 13 - 4. A Grant Review Committee is established to review, evaluate and award funds to the applications. John Hinzman, Kristy Barse and Bruce Goblirsch will serve on the Committee. Board member ______________________ moved a second to this resolution and upon being put to a vote it was unanimously adopted by all Board Members present. Adopted by the Board of Commissioners of the Hastings Economic Development and Redevelopment Authority on May 5, 2020 by the following vote: Ayes: Nays: Absent: __________________________ Martha Sullivan, President ATTEST: ________________________________ Rusty Fifield Secretary