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ED112497 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes November 24, 1997 Meeting #13 CALL TO ORDERPresident Pro tem Otten called the meeting of the Economic Development Authority to order at 7:47 p.m. ROLL CALLPresent: Cassen, Collier, Norby Otten Absent: Enck Staff Present: Malecha, Hanson, Donahue, Leone, McDonald, Cavanagh APPROVE MINUTESMotion was made by Commissioner Cassen, seconded by Commissioner Norby, to approve the EDA minutes of November 10, 1997. Voting in favor: All. Motion carried. RESOURCE CENTER President Pro Tem Otten introduced for discussion Item 4, Discussion PROGRAM Regarding Greater Minneapolis Metropolitan Housing Corporation (IMP. PROJECT 624) (GMMHC) Home Ownership Resource Center Program (Improvement Item 4 Project No. 624). Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, explained that over the past year the Greater Minneapolis Metropolitan Housing Corporation (GMMHC) has been working with city staff from the cities of Brooklyn Center, Brooklyn Park, Crystal, New Hope and Robbinsdale to discuss a “Homeownership Resource Center” program for the 5-city group. GMMHC has submitted several grant requests to secure funding operations of the “Homeownership Resource Center.” In recent conversations with the McKnight Foundation, the Foundation indicated that it is waiting for the 5-city group, or as many cities as are going to participate, to finalize their respective funding commitments for the “Homeownership Resource Center,” prior to the Foundation making a final commitment of financial support. At this time he stated it is necessary to determine whether the EDA desires to make a financial commitment to support the program or not. Early in 1996, Hennepin County contacted GMMHC and indicated that the county staff had met with elected officials from suburban Hennepin County communities, and many of these communities had requested assistance from the County in coordinating programs to provide a one-stop approach to assist homeowners with their housing needs. At the same time, the County Board authorized staff to identify approaches for strengthening the county’s coordinating role in addressing housing issues and stabilizing the tax base. Hennepin County engaged GMMHC to look into the possibility of establishing a Home Ownership Center, like its Northeast Minneapolis model, in a suburban setting. The county targeted the Northwest area of the county for this probe. The request was reviewed by the GMMHC Board and they agreed to consider the feasibility of expanding the program. In February of 1997, GMMHC entered into a Professional Services Agreement with Hennepin County whereby they would share the cost, up to $7,400, to undertake a suburban Hennepin County housing resource center feasibility New Hope EDA November 24, 1997 Page 1 study. Since that time there have been numerous meetings with staff, city planners and managers, as well as elected officials and other interested parties in the communities of Brooklyn Center, Brooklyn Park, Crystal, New Hope and Robbinsdale. They have also had other meetings with the McKnight Foundation and the Metropolitan Council in regard to funding such an initiative. The “center” would be structured to be a “one-stop resource” for home ownership and home improvement programs and services needed to intervene in neighborhoods on the edge; those neighborhoods poised to change from high homeownership to absentee ownership and from stable housing stock to disrepair and disinvestment. All home ownership and improvement resources, public, private and non-profit would be invited to operate out of this “one-stop resource center” and have their respective products and/or services available for the homeowner, home buyers, and renters. The “center” would provide one-stop shopping for comprehensive housing information, tailored to the circumstances of each family and property. Information and applications would be available for all of the dozens of mortgage and home improvement loan programs available. GMMHC states that the “center” would not duplicate programs and services, rather would provide an opportunity to collaborate with other providers to make existing programs and services available at the “center.” Each of the 5-city group is invited to become a sponsor of the “Homeownership Resource Center.” GMMHC requests participation in the program and a city funding commitment as per the initial budget amount of $5,000 in 1998, $6,000 in 1999, and $7,000 in 2000. This request for each member of the 5-city group to commit its respective funding is subject to sufficient funding becoming available from other sources, e.g., the McKnight Foundation, etc. If projected funding cannot be achieved in 1998, the operation and related budget will have to be modified to the satisfaction of the city participants. In addition, there may be other potential funding resources that may be available for this project, and GMMHC is prepared to attempt to access these resources on behalf of the 5-city group. GMMHC is prepared to move forward with its commitment to operate the suggested 5- city “Homeownership Resource Center” and awaits only the commitment of the cities to partner with GMMHC on this program. Mr. McDonald stated staff is requesting direction from the EDA on this request and wants to know if the EDA is interested in participating in this 5- city venture. Staff is generally supportive of the program on a pilot project or trial basis. There are adequate EDA funds available to participate in 1998 and staff would recommend that only a one-year approval for participation be considered at this time and that funding for subsequent years be considered with the annual budget process. Commissioner Collier inquired of the compilation of the list of contractors. Mr. McDonald stated the planners group would prefer that local contractors be recommended first. Commissioner Cassen asked how the cities would promote the program. Mr. McDonald stated it would be marketed through the City’s newsletter, New Hope EDA November 24, 1997 Page 2 local newspaper, resident guide, and cable television. He also confirmed that the program would not present a conflict with CHODO and PPL. He noted both groups are supportive of the proposal. Commissioner Cassen questioned whether income levels restrict usage of the program. Mr. McDonald stated the program would be open to all residents regardless of income. Commissioner Collier asked whether the program would provide alternatives to senior citizens who may be challenged by economic situations. Mr. McDonald acknowledged that the program does offer that type of referral service as well as a wide variety of other resources. MOTION Motion was made by Commissioner Norby, seconded by Commissioner Item 4 Collier, Voting in supporting New Hope participation of $5,000 for 1998. favor: All. Motion carried. ENTERPRISE President Pro Tem Otten introduced for discussion Item 5, Discussion FACILITATION Regarding Establishment of Enterprise Facilitation Program in New Hope PROGRAM and Crystal and Authorization to Proceed (Improvement Project No. 625). IMP. PROJECT 625 Item 5 Mr. McDonald stated at the February 24, 1997, City Council public hearing regarding the use of 1997/98 Urban Hennepin County Community Development Block Grant (CDBG) funds, the Council authorized the allocation of $15,000 for a potential joint-city pilot project with the City of Crystal for the establishment of an enterprise facilitation program. At that time, staff indicated that the City had been discussing the project with Crystal and the Hennepin County Department of Jobs and Training and that the Hennepin County Office of Planning and Development had indicated that the cities could utilize CDBG funds to finance their portion of the program due to the micro business/job creation aspect of the project. Staff requested that the Council set aside the funds for this project with the understanding that this action would not formally authorize City participation in the program and that staff would come back to the Council/EDA for formal authorization to proceed once funding commitments from other agencies had been made and the program was ready to proceed. Over the past nine months, staff has coordinated with Crystal, Hennepin County and Metro HRA to secure funding commitments and staff requests to discuss this program with the EDA and receive authorization to proceed with the establishment of the joint-agency program. Enterprise facilitation is an alternative approach to economic development which uses a grass-roots, bottom-up strategy. This model spurs economic development by working with individuals to create business opportunities rather than relying on the more traditional approach of a city attracting large businesses to a community. The program would help nurture local business development and expansion in order to stabilize the local economy and create new jobs. The program supports local entrepreneurs and encourages growth within the community. New Hope EDA November 24, 1997 Page 3 Enterprise facilitation is based on the belief that entrepreneurs need technical assistance (rather than financial) to pursue their ideas. In order to offer the assistance, an enterprise facilitator would be hired and shared between the two cities and act as a catalyst to assist/encourage local business innovation. A local advisory board would be created to oversee the activities of the facilitator and it is anticipated that the TwinWest New Hope/Crystal Business Council could potentially serve as a portion of the board. A tentative budget for a two-year pilot project is estimated at $50,000 - $60,000 per year. Metro HRA has made a commitment of $15,000 for a two- year period and Hennepin County will be making a similar contribution. Each of the two cities will be making equivalent contributions of $15,000 each for a two-year period and New Hope’s share is proposed to be with CDBG funds and this use of the funds has been approved by Hennepin County. Staff will also seek contributions for the program from local businesses. The cities believe that this program will greatly benefit the many residents in our communities who operate businesses out of their home. Generally speaking, the home-based businesses are successful and provide needed services in the community. In many cases, however, the businesses have outgrown the parameters of the home and, preferably, should be located in a separate location so as not to violate local zoning ordinances and disrupt the neighborhood. This transition may be prohibitive for several reasons: inability to raise capital, unfamiliarity with the real estate industry, lack of formal accounting and business skills, and so forth. With Metro HRA’s participation, the cities hope to demonstrate how enterprise facilitation can serve as another tool for self-sufficiency in the current welfare-to-work movement. The City of New Hope has a local Section 8 housing representative who provides contract services for the cities of Golden Valley, Maple Grove, Osseo, and Edina and will be actively involved in communicating the enterprise facilitation program to these low to moderate income residents. Mr. McDonald stated staff is requesting authorization to proceed with the initiation of this program and to utilize the CDBG funds allocated for this purpose. Mr. Donahue, City Manager, indicated that the program has been successful in other parts of the country. MOTION Motion was made by Commissioner Collier, seconded by Commissioner Item 5 Cassen, Voting in favor: All. authorizing funding of $15,000 for 1998. Motion carried. ADJOURNMENT Motion was made by Commissioner Collier, seconded by Commissioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:17 p.m. Respectfully submitted, New Hope EDA November 24, 1997 Page 4 Valerie Leone City Clerk New Hope EDA November 24, 1997 Page 5