Minutes - Economic Development Authority - 07/16/2020

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Chairperson Steffen aye Motion carried. 4.01: Consider Guidelines for Business Grant Program – Phase 2 COVID-19 Business Assistance Program Using CARES Act Funding Allocation Economic Development Manager Sullivan presented the staff report. Deputy City Administrator Gladhill provided background information on the CARES Act and funding received by the State that has been allocated to the City. He provided details on the expenses the City incurred due to COVID that would be eligible for reimbursement. He stated that many communities are allocating ten percent of their funding to use for business grants. He stated that it is possible that a second allocation could be made to the EDA for additional business grants, but that decision would not be made until additional work is done by staff and the Council to determine eligible expenditures. He asked if the EDA would like to do the business grant program and broad parameters for the program that the EDA would like the Council to consider. Economic Development Manager Sullivan explained that the funding was received by the State and the State completed its own business grant program, noting that the State’s program providing funding ability for targeted areas and businesses. He stated that in speaking with staff from Anoka County and other communities, he has been able to gather input and noted that many communities are going to have their own business grant program, similar to this request. He stated that if the City chooses to move forward with the grant program, the City Council has allocated $200,000 of the CARES Act funding for that purpose. Chairperson Steffen asked how this $200,000 would be spent if the grant program was not approved. Deputy City Administrator Gladhill stated that from an accounting standpoint, when you figure in public safety staffing, the City would have more expenses than the allocation. Chairperson Steffen confirmed the consensus of the group to move forward with a business grant program. Member Cords stated that he supports the business grant program and would like to see additional funds available for this purpose. He stated that he does have concerns with how the remaining allocation of $2,000,000 is going to be spent. Economic Development Manager Sullivan reviewed some of the different criteria beginning with business size, noting that the typical business size for this type of program seems to be 50 employees or less. He stated that the intent would be to focus on the small businesses that have struggled through the COVID challenges. Chairperson Steffen confirmed the consensus of the EDA to support that business size of 50 employees or less. Economic Development Authority/ July 16, 2020 Page 4 of 11