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EDA Agenda - 12/12/2022AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 14th, 2022 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Charlotte Gabler Staff: Executive Director Jim Thares, Angela Schumann, Sarah Rathlisberger, Hayden Stensgard 1. Call to Order 2. Roll Call 3. Consideration of additional agenda items 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes— October 12, 2022 b. Consideration of Approving Workshop Meeting Minutes — November 9, 2022 c. Consideration of Approving Regular Meeting Minutes— November 9, 2022 d. Consideration of Approving Payment of Bills Regular Agenda 5. Consideration of 2023 Wright County Economic Development Partnership Membership and Dues in the amount of $3,401 6. Consideration of WSB 2022 Qtr. Update and CY 2023 Economic Development Assistance Services Contract in the amount of $12,000 7. Consideration of Update of EDA Legal and Financial Consultants' CY 2023 Fee Rates 8. Economic Development Manager's Report 9. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, October 12th, 2022 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Jim Davidson Staff Present: Executive Director Jim Thares, Hayden Stensgard 1. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:00 p.m. 2. Roll Call Mr. Johnson called the roll. 3. Consideration of additional agenda items None 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes —July 27, 2022 b. Consideration of Approving Workshop Meeting Minutes — August 10, 2022 c. Consideration of Approving Regular Meeting Minutes — August 10, 2022 d. Consideration of Approving Regular Meeting Minutes — August 18, 2022 e. Consideration of Approving Payment of Bills Lloyd Hilgart moved to approve the October 12, 2022 regular meeting consent agenda. Hali Sittig seconded the motion. Motion carried unanimously, 7-0. Regular Agenda 5. Consideration of Resolution No. 2022-29 authorizing a Master Amendment Agreement to the EDA $140,000 GMEF Loan Agreement with Sota Car Wash, LLC dba Due North Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. The amendment to the Loan Agreement between the EDA and Due North Car Wash in Monticello is for site improvements. It also includes an additional partner who will become part of the Loan Agreement. Some examples of site improvement this amendment would support include added vacuums and a new pylon sign. JIM DAVIDSON MOVED TO ADOPT RESOLUTION NO. 2022-29, APPROVING A MASTER AMENDMENT AGREEMENT TO THE EDA'S $140,000 GMEF LOAN TO DUE NORTH. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 6. Consideration of Resolution No. 2022-30 authorizing a Purchase Agreement with Moon Motors for the acauisition of a 1.46 -acre parcel described as Lot 1. Block 1 Oakwood Industrial Park, 3rd Addition (9699 Fallon Avenue), in the amount of $300,00 Mr. Thares provided an overview of the agenda item to the EDA and the public. In relation to the Washburn Computer Group expansion that the EDA had been aware of, Moon Motors is interested in selling the noted property South of the current Washburn site. This item is a companion item to items #7 and #8 on the agenda, as Moon Motors had requested an opportunity to build a warehouse facility on an EDA property located in Otter Creek Business Park. LLOYD HILGART MOVED TO APPROVE RESOLUTION NO. 2022-30, AUTHORIZING A PURCHASE AGREEMENT WITH POWERSPORTS SERVICES, LLC. AND PLATINUM TECHNOLOGIES, LLC. FOR THE ACQUISITION OF 1.46 INDUSTRIAL PARCEL IN THE AMOUNT OF $300,000, CONTINGENT ON THE PLANNING COMMISSION REVIEW FOR CONFORMITY WITH THE COMPREHENSIVE PLAN. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 7. Consideration of Resolution No. 2022-31 authorizing an Option Agreement with Washburn Comauter GrouD for a 1.46 -acre industrial Darcel described as Lot 1. Block Oakwood Industrial Park. 3rd Addition Mr. Thares provided an overview of the agenda item to the EDA and the public. A companion item to item #6 on the agenda, the Option Agreement would provide Washburn Computer Group the opportunity to utilize the lot to the South of their facility for an expansion. Vice -President Jon Morphew asked if Washburn has expressed interest in the Option Agreement. Mr. Thares noted they were aware of all the pertinent land decision steps and the specific option documents. Washburn's feedback about the document indicated that they are okay with the proposed pricing format and crediting against the land purchase price as well as the agreement timeline. Mayor Lloyd Hilgart asked if the option price is renewed every year. Mr. Thares confirmed and noted that they would pay $50,000 this year and if nothing occurred within that year, an additional $50,000 would be paid to the EDA and so forth. TRACY HINZ MOVED TO APPROVE RESOLUTION NO. 2022-31 AUTHORIZING AN OPTION AGREEMENT WITH WASHBURN COMPUTER GROUP, LLC FOR A 1.46 -ACRE INDUSTRIAL PARCEL LOCATED AT 9699 FALLON AVENUE IN THE AMOUNT OF $55,000 OPTION PREMIUM AND A PURCHASE PRICE OF $300,000. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 8. Consideration of Resolution No. 2022-32 Authorizing a Preliminary Development Agreement (PDA) with Moon Motors for a 9.764 -acre parcel in Otter Creek Business Park (OCBP) described as, Lot 1, Block 1, Otter Creek Crossing, 7th Addition, for an industrial warehouse development project Mr. Thares provided an overview of the agenda item to the EDA and the public noting this is a companion item to Items 6 and 7. Moon Motors, is interested in building a warehouse facility in the Otter Creek Business Park, contingent on the sale of the 1.46 - acre lot located at 96799 Fallon Avenue to the EDA. Moon needs a general warehouse facility to serve as a storage and light assembly facility for its dealership and is interested in obtaining an EDA -owned property in Otter Creek for this proposal. Comments from the Moon Motors team related to the PDA were received the day of the meeting. Mr. Thares noted that they had accepted the draft agreement that is included in the agenda. JON MORPHEW MOVED TO ADOPT RESOLUTION NO. 2022-32, AUTHORIZING A PDA WITH MOON MOTOR FOR A 9.764 ACRE DESCRIBED AS LOT 1, BLOCK 1, OTTER CREEK CROSSING 7T" ADDITION, LOCATED IN OTTER CREEK BUSINESS PARK. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 9. Consideration of authorizine a Rieht of Entry for Headwaters Develooment for EDA owned property described at Outlot A, Country Club Manor, 16.71 acres, for the purposes of site excavation and grading activities related to the apartment and twin home development proposals Mr. Thares provided an overview of the agenda item to the EDA and the public. Headwaters Development is preparing to close on the EDA -owned property and has requested a right -of -entry to begin work prior to owning the property. The developers are required to submit a grading plan and apply for their grading permit before they will be able to do any of that work on site. LLOYD HILGART MOVED TO AUTHORIZE A RIGHT OF ENTRY WITH HEADWATERS DEVELOPMENT FOR THE EDA OWNED PROPERTY (COUNTRY CLUB MANOR) ALONG 7T" STREET WEST FOR THE PURPOSE OF EXCAVATION AND GRADING ACTIVITIES, CONTINGENT ON THE STATED CONTINGENCIES. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 10. Economic Development Manager's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. 11. Recognition of Jim Davidson's service on EDA The EDA recognized Councilmember Jim Davidson's 7 years of service on the Monticello EDA. The October 12, 2022 regular meeting was the councilmember's last meeting as an EDA commissioner. 12. Adjourn Tracy Hinz Moved to adjourn the regular meeting of the Monticello EDA. Hali Sittig Seconded the motion. Motion carried unanimously, 7-0. Meeting adjourned at 7:02 p.m. MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) WORKSHOP Wednesday, November 9, 2022 — 5:00 p.m. Academy Room, Monticello Community Center Members Present: President Steve Johnson, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Charlotte Gabler Members Absent: Vice -President Jon Morphew Staff Present: Executive Director Jim Thares, Angela Schumann, Ron Hackenmueller 1. Call to Order President Steve Johnson called the workshop meeting of the Monticello EDA to order at 5:00 p.m. 2. Roll Call Mr. Johnson called the roll. 3. Project Block 52 progress Mr. Thares provided an overview of the agenda item to the EDA and the public. The EDA was updated on the redevelopment project on Block 52. The footings and the foundation of the building were being installed. The EDA was also updated on the exposed wall of the 149 W Broadway Street building (Sleep Concepts), and that the development team is working towards completing necessary improvements of the wall, that was subsequently exposed due to the demolition phase of the redevelopment. Chief Building Official Ron Hackenmueller presented plans for securing and insulating the exposed wall of 149 W Broadway Street to the EDA and the public. No action was taken on the item. 4. Washburn Computer Group option This item was discussed before Item #3 on the agenda. Executive Director Jim Thares provided an overview of the agenda item. This is in relation to the Option Agreement between Washburn Computer Group and the Monticello EDA that was approved at the October 12, 2022 regular meeting. Mike Willard, Owner and Manager of Washburn Computer Group, introduced himself and addressed the EDA and the public. Mr. Willard provided an update on Washburn's plan for growth related to the Option Agreement. Councilmember Charlotte Gabler asked what the timeline for expansion or building was for Washburn. Mr. Willard said that space -wise, Washburn needs to build now. With the recent economic changes in the cost of borrowing and material price increases, it will not be immediate near-term time frame. He is leasing space in available buildings in Monticello to meet the capacity needs. The Washburn Computer Group equity partners and leadership team will continue to monitor the economy and the finance conditions hopefully be able to pursue the expansion in two or three years. Mr. Willard explained his concern with the pricing format of the Land Purchase Option Agreement which was approved by the EDA at its October 12, 2022 meeting. He noted that he had informed Mr. Thares that he was okay with the terms and pricing of the Option Agreement prior to that meeting. He then was informed by some of the equity investors of Washburn Computer that they were not in fact okay with the pricing format. Hence, he is hoping to have the Option Agreement modified to satisfy Washburn's concerns. No action was taken on the item. 5. Facade Improvement Grant Program Mr. Thares provided an overview of the agenda item to the EDA and the public. The program requires a change to the name as state statute does not allow for a grant program, but rather a forgivable loan program. The regular meeting agenda item is a request for the EDA to make the title change to the program to reflect that. The guidelines and regulations for the program will not change. 6. Adjournment TRACY HINZ MOVED TO ADJOURN THE NOVEMBER 9, 2022, EDA WORKSHOP MEETING. HALI SITTIG SECONDED THE MOTION. MOTION APPROVED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 5:51 P.M. MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 9th, 2022 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Treasurer Tracy Hinz, 011ie Koropchak- White, Hali Sittig and Councilmembers Lloyd Hilgart and Charlotte Gabler Commissioners Absent: Vice -President Jon Morphew Staff Present: Executive Director Jim Thares, Angela Schumann 1. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:07 p.m. 2. Roll Call Mr. Johnson called the roll. 3. Consideration of additional agenda items None 4. Consent Aeenda a. Consideration of Approving Regular Meeting Minutes —August 29, 2022 b. Consideration of Approving Regular Meeting Minutes — September 14, 2022 c. Consideration of Approving Payment of Bills LLOYD HILGART MOVED TO APPROVE THE NOVEMBER 9, 2022 REGULAR MEETING CONSENT AGENDA. OLLIE KORPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. Regular Agenda 5. Consideration of Resolution No. 2022-33 Approving an Option Agreement Granting Washburn Computer Group, Inc. the Option to Purchase a Vacant 1.46 -acre Parcel Located at 9699 Fallon Avenue Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. A previously approved option agreement (October 12, 2022) with Washburn Computer Group is being presented for consideration of modifying the pricing format. With the approval of the option agreement, Washburn Computer Group would pay the EDA $55,000 for year one and then $15,000 for years two and three. Washburn is seeking the property to allow it to pursue a warehouse facility expansion in 2025 or 2026. Mayor Lloyd Hilgart noted that given the discussion at the workshop prior to the regular meeting, he would proceed to make a motion with the option price of $50,000 and not $55,000. STEVE JOHNSON MOVED TO APPROVE RESOLUTION NO. 2022-33 AUTHORIZING A RESTATED LAND PURCHASE OPTION AGREEMENT WITH WASHBURN COMPUTER GROUP, LLC. FOR A 1.46 -ACRE INDUSTRIAL PARCEL LOCATED AT 9699 FALLON AVENUE IN THE AMOUNT OF $50,000 OPTION PREMIUM (YEAR ONE) AND A PURCHASE PRICE OF $300,000. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 6. Consideration of Resolution No. 2022-34 Revising the Downtown Facade Imarovement Program's Policies and Procedures This item was presented after item #7 on the agenda. Mr. Thares provided an overview of the agenda item to the EDA and the public. The change is related to the title of the program. It will no longer be considered a grant, but rather a forgivable loan. The guidelines would also need to be adjusted to reflect the practice of a forgivable loan. The proposed change would establish a loan for 5 -years with 20% forgiven each year. Changes to the grants already given out are not expected to change with these revisions. The EDA members stated a willingness to approve the resolution with noted revisions adjusting the term of the loan and the process of forgiveness. The preferred terms are a three-year term with annual forgiven percentages of 50% after the first year, 25% after the second year, and 25% after the third year. HALI SITTIG MOVED TO ADOPT A RESOLUTION NO. 2022-34, APPROVING AMENDED FACADE IMPROVEMENT PROGRAM GUIDELINES CONTAINING LANGUAGE REFORMATTING IT FROM A GRANT TO A FORGIVABLE LOAN. TRACY HINZ SECONDED THE MOTION. MOTION APPROVED UNANIMOUSLY, 6-0. 7. Consideration of Resolution No. 2022-35 Approving an Assignment and Assumption of Purchase and Development Contract and Assignment of Tax Increment Financing Note by Headwaters Development LLC to CHC Monticello Townhomes LLC related to proposed residential development at the Country Club Manor, Second Addition site This item was presented before item #6 on the agenda. Mr. Thares provided an overview of the agenda item to the EDA and the public. The assignment is related to a request by Headwaters to convey the townhome portion of the land to Community Housing Corporation (CHC), a non-profit out of St. Paul, MN. CHC will manage the development property following completion of the project. Wes Butler, Executive Director of CHC, addressed the EDA and the public. CHC plans to take ownership of the townhome portion of the property and is committed to the affordability factor of the approved project. Councilmember Charlotte Gabler asked whether CHC was interested in the apartments portion of the project. Mr. Butler clarified that at the moment, the intention currently is that CHC will be involved in the townhomes, with potential in the future to become involved in the apartment building. Ms. Gabler asked if this project was still slated for residents 55+. Community Development Director Angel Schumann clarified that the entirety of the project was approved as a 55+ residential development. Mr. Butler clarified that this feature was understood early in their involvement of the project. Mr. Johnson asked if two development agreements will be necessary for the project with the addition of CHC. Mr. Thares confirmed that two development agreements will be necessary. Brian Nicholson, Headwaters Development, clarified that these are two separate projects, TIF -wise and development wise. Headwaters also plans to close on the two portions of the same property separately. TRACY HINZ MOVED TO ADOPT RESOLUTION NO. 2022-35 APPROVING THE ASSIGNMENT AND ASSUMPTION AGREEMENT, ASSIGNING, AND TRANSFERRING THE PURCHASE AND DEVELOPMENT CONTRACT FOR TIF DISTRICT 1-43 AND ASSIGNMENT OF TAX INCREMENT FINANCING NOTE BY HEADWATERS DEVELOPMENT, LLC. TO MONTICELLO TOWNHOMES CHC, LLC. AS RELATED TO THE RENTAL TWINHOME DEVELOPMENT OF COUNTRY CLUB MANOR SECOND ADDITION. OLLIE KORPCHAK- WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 8. Consideration of Update of Draft Region 7W 2022 Comprehensive Economic Development Strategy (CEDS) Report Mr. Thares provided an overview of the agenda item to the EDA and the public. Region 7W consists of Wright, Sherburne, Stearns, and Benton County. Region 7W is currently in the process of updating its Comprehensive Economic Development Strategy (CEDS). The public comment portion of the update process is underway. Mr. Thares encouraged the EDA to review the draft document and send any relevant comments to him for submittal to Region 7W. The Industrial and Economic Development Committee (IEDC) had the opportunity to review and provide comment to Mr. Thares, following their regular meeting on November 1, 2022. No action was taken on the item. 9. Economic Development Manager's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. 10. Adjourn Tracy Hinz Moved to adjourn the regular meeting of the Monticello EDA. Hali Sittig Seconded the motion. Motion carried unanimously, 6-0. Meeting adjourned at 7:18 p.m. EDA Agenda: 12/14/22 4d. Consideration of Approving Payment of Bills A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through November 2022. 2. Motion to approve payment of bills through November 2022 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Accounts Payable Summary Statements Accounts Payable Transactions by Account User: Julie.Cheney Printed: 11/10/2022 - 1:40PM Batch: 00203.11.2022 Account Number Vendor Description GL Date Check No CITYonticello Amount PO No 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-45 - 113 W Broadway - Sept 20: 11/15/2022 126355 1,003.50 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-45 - Block 52 Redevelopment - 11/15/2022 126355 6,518.55 213-00000-220110 KENNEDY AND GRAVEN CHAR] 21TOO 1 -Headwaters Townhomes TIF 11/15/2022 126355 175.00 213-00000-220110 KENNEDY AND GRAVEN CHAR] 21TOO 1 -Headwaters Apartments TIF 11/15/2022 126355 349.70 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-44 - Washburn POS Economic I 11/15/2022 126355 25.00 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-46 - Wiha Tools TIF Project - Sa 11/15/2022 126355 879.00 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-47 - Moon Motors Warehouse E 11/15/2022 126355 620.00 Vendor Subtotal for Dept:00000 9,570.75 213-00000-220110 NORTHLAND SECURITIES INC 21TOO 1 - TIF 1-42 - Headwaters Apar 11/15/2022 126368 752.50 213-00000-220110 NORTHLAND SECURITIES INC 21TOO 1 - TIF 1-43 - Headwaters Villa: 11/15/2022 126368 752.50 Vendor Subtotal for Dept:00000 1,505.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] GMEF Loan Monticello RV -Sept 20: 11/15/2022 126355 382.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Sept 2022 11/15/2022 126355 462.00 Vendor Subtotal for Dept:46301 844.00 Subtotal for Fund: 213 11,919.75 Report Total: 11,919.75 AP -Transactions by Account (11/10/2022 - 1:40 PM) Page 1 Accounts Payable Transactions by Account User: Julie.Cheney Printed: 12/05/2022 - 3:41PM Batch: 00201.11.2022 Account Number Vendor Description CITY3tjMSo!nti cello GL Date Check No Amount PO No 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Oct Lunch (JT) 11/15/2022 0 40.00 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Sept Lunch (JT) 11/15/2022 0 20.00 213-46301-443990 US BANK CORPORATE PMT SYS Queen Bee's - Centerpieces for IEDC ] 11/15/2022 0 501.06 213-46301-443990 US BANK CORPORATE PMT SYS Villa Bar & Grill - IEDC Breakfast 11/15/2022 0 1,289.43 Vendor Subtotal for Dept:46301 1,850.49 Subtotal for Fund: 213 1,850.49 Report Total: 1,850.49 AP -Transactions by Account (12/05/2022 - 3:41 PM) Page I Accounts Payable Transactions by Account User: Julie.Cheney Printed: 11/22/2022 - 3:59PM Batch: 00204.11.2022 Account Number Vendor Description GL Date Check No 213-46301-431990 BOGART, PEDERSON & ASSOCL Locate & Mark Boundary, certificate c 11/29/2022 Vendor Subtotal for Dept:46301 Subtotal for Fund: 213 Report Total: The preceding list of bills payable totaling $15,370.24 was approved for payment. Date: 12/14/2022 Approved by: Tracy Hinz - Treasurer 126416 CITYonticello Amount PO No 1,600.00 1,600.00 1,600.00 1,600.00 AP -Transactions by Account (11/22/2022 - 3:59 PM) Page 1 EDA Agenda: 12/14/22 5. Consideration of Authorizing 2023 Wright County Economic Development Partnership (WCEDP) Membership and approving Annual Dues in the amount of $3,401 (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider approving 2023 membership in the Wright County Economic Development Partnership (WCEDP) and further authorizing the annual dues payment in the amount of $3,401. This amount is an increase of $795.00 over the 2022 dues which is a year over year increase of 31 percent. Jolene Foss, WCEDP Executive Director, has been invited to attend the EDA meeting to provide a high-level summary of the WCEDP programs and benefits for Monticello. The EDA has been a member of the WCEDP for many years. In collaborating with and supporting the WCEDP, it offers the potential to leverage additional funding for projects through the WCEDP Loan Program. The WCEDP also pays membership fees to organizations that allow the EDA -City to gain access to regional events held by MNCAR and CMMA (Central MN Manufacturers Association). Collaboration on economic development efforts is a key strategy noted in the Draft Monticello 2040 + Comprehensive Plan in achieving local progress. It also should be pointed out that the WCEDP has now taken the lead role in a County- wide workforce development program, leading and collaborating with the local school district, businesses, the MN Workforce Center, technical schools, and others on job training awareness building efforts. In addition, in the spring of 2021 the WCEDP launched its County -wide Business Retention and Expansion (BRE) program effort. In that role, WCEDP staff participate with City staff in conducting BRE visits in the City of Monticello. A total of 4 collaborative BRE visits have been conducted over the past 18 months. Al. Staff Impact: There is minimal staff time involved in preparing the staff report for consideration of the 2023 annual WCEDP membership dues. A2. Budget Impact: Funds for the 2023 membership dues to the WCEDP amount to $3,401. These projected expenses were budgeted in the 2023 "Dues, Membership and Subscriptions" budget line, approved by the EDA in August 2022. B. ALTERNATIVE ACTIONS: 1. Motion to approve 2023 membership in WCEDP and the annual dues in the amount of $3,401. 2. Motion to table approval of 2023 membership in WCEDP and the annual dues in the amount of $3,401 for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1 wherein the 2023 membership in the WCEDP and the annual dues in the amount of $3,401 are approved. By participating in the WCEDP, the EDA benefits through marketing and networking opportunities, BRE visitations, information sharing and collaborating in project funding, as well as workforce training efforts that are more effective on a larger geographic scale. D. SUPPORTING DATA: A. 2023 WCEDP Membership Dues Invoice From: Jolene Foss To: Jim Thares Subject: Fw: Invoice 10103 from Wright County Economic Development Partnership Date: Wednesday, December 7, 2022 2:36:04 PM Attachments: Outlook-zij njv20.jDq Jolene Foss Executive Director 320.534.8344 Cell 763-496-5593 Office 3650 Braddock Ave NE Buffalo, MN 55313 0 From: Wright County Economic Development Partnership <admin@wrightpartnership.org> Sent: Wednesday, December 7, 2022 8:52 AM To: Jolene Foss <JoleneF@wrightpartnership.org> Subject: Invoice 10103 from Wright County Economic Development Partnership Wright County Economic Development Partnership Bill to: City of Monticello 505 Walnut Street Suite 1 Invoice Date: Dec 7, 2022 Invoice #10103 Monticello MN 55362- jim.thares@ci.monticello.mn.us Item 2023 Dues To pay invoice by check please mail to: WCEDP 3650 Braddock Ave NE, Suite 1300 Buffalo, MN 55313 Click here to pay online Powered by MembershipWorks Qty Price Subtotal 1 $3,401.00 $3,401.00 Subtotal $3,401.00 Tax $0.00 Total $3,401.00 Due $3,401.00 EDA Agenda: 12/14/22 6. Consideration of 2022 Qtr #3 WSB Update and 2023 Economic Development Assistance Services Contract Proposal in the Amount of $11,880 (JT) A. REFERENCE AND BACKGROUND: This item is presented to the EDA for consideration of the 2023 WSB Economic Development Assistance Services proposal. The 2023 contract includes proposed work activities that includes several core measurable services shown below: 1. Market Engagement Activities [estimated stand-alone value= $4,0001 2. Site Design and Illustrations (4 preliminary design sketch illustrations are provided as part of the fee; no extra cost) [estimated stand-alone value = $7,0001 3. Financial Packaging and Site Selection Work Components [estimated stand-alone value _ $2,500 to $7,500, depending on projects] 4. EDA Interaction and Engagement Components; 2 strategy engagement sessions in the context of EDA meetings (workshop or regular meetings offered as part of the monthly fee, no extra cost) [estimated stand-alone value = $3,3001 5. Quarterly activity and market trend updates [estimated stand-alone value = $850] The proposed monthly fee is $990 per month or a total of $11,880 for the year. This is a year -over -year increase of 10 percent. Staff believe the bullet pointed assistance components, showing stand-alone value make it worthwhile to continuing working with WSB in a retainer contract format. If the EDA decides to re -new the contract with WSB, the contract start date will be January 1, 2023, and have an end date of December 31, 2023. Al. Staff Impact: The Economic Development Manager committed time to review the proposed 2023 WSB Contract proposal and analyzing potential 2023 projects and workload. A2. Budget Impact: The total amount budgeted for Economic Development Assistance Services in 2023 is $11,880. The funds for the 2023 WSB Economic Development Assistance Services Proposal are budgeted in the Miscellaneous Professional Services line item. B. ALTERNATIVE ACTIONS: 1. Motion to approve the proposed 2023 WSB Economic Development Assistance Services Contract in the amount of $11,880. 2. Motion to table consideration of 2023 WSB Economic Development Assistance Services Contract for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1 wherein the EDA approves the proposed 2023 WSB Economic Development Assistance Services Contract. It should be noted that the services individually likely have stand-alone value exceeding the total contract cost. Mr. Gromberg's expertise in State level assistance programs and connections to MN - DEED leadership as well as metro area economic development groups such as Greater MSP and federal agency staff (US -EDA) provides significant value to the EDA. WSB has also been able to provide insights into realistic financial packaging efforts related to several prospect site searches throughout 2022. The ability to call on WSB to carry out the above - noted work components allows for more effective use of in-house time and allocation of resources on current projects and in communications with prospects. Mr. Gromberg is planning to attend the EDA meeting to answer questions about the proposed 2023 Contract and/or services provided in the past year. A copy of the proposed 2023 Contract is attached to this report as Exhibit B. D. SUPPORTING DATA: A. WSB 3rd Qtr. 2022 Services Update B. Proposed 2023 WSB & Associates Economic Development Services Contract w/ Scope of Work C. Adopted 2023 EDA General Fund Budget (8-10-22 EDA Mtg.) 2 0 0 Z W m U) 0 OD a Cl) LO LO LO z 2 Ci J 0 a W Z Z 0 0 Cl) W D CO U) W D z W a a Z W X 0 ws b Memorandum To: Jim Thares, Economic Development Manager From: Jim Gromberg, Economic Development Coordinator Date: December 2, 2022 Re: Project Updates WSB Project No. 013322-00 Thank you for the opportunity to continue to assist the City of Monticello in their continued efforts to provide economic vitality for the community and the residents. Below are updates on some of the projects and insights to the trends currently facing the city. The city currently has several projects in progress for the continued growth the commercial - industrial tax base. In addition to the tax base growth these projects will allow for the continued availability of employment opportunities in Monticello. Project Updates: Twin Cities Die Casting: • The company has met with the city to discuss the potential expansion of their existing facility in Monticello. • The proposed expansion is competing with the potential expansion of the company's facility in Watertown SD. • The expansion in Monticello presents some issues for the company that would not be experienced in South Dakota. • DEED is also involved in the project to assist with potential state assistance to the project. • The company will be reviewing the information in January to determine the future steps. • It should be noted that regardless of the decision on the potential expansion, there would not be any changes to the current operations in Monticello. Project Singularity: • German Manufacturing Company that is looking for 50 -acre site. • RFP was received from the state and was the second round of sites to be reviewed. • Monticello was not part of the first round of sites submitted by the state in 2021 as the city did not meet the criteria for the project. • The criteria have changed to include any sites with a labor shed of 150,000 within 45 - minute drive. • Capex is estimated to be $90 million with a workforce of 500 employees. • The state has been notified that the sites submitted for the project are still being considered with a decision in early 2023. Project Wafer: • Project Wafer is a manufacturing project RFI that was received by the city in October. • The proposed project site requires 100 acres with the expansion possibility of 20 additional acres. Monticello EDA December 2, 2022 Page 2 • Capex would be an estimated $630 million with the creation of 1,500 employees for phase 1. • One of the significant requirements for the project was a location within 20 minutes of an interstate or major highway. • The city submitted a potential site in the newly identified eastern industrial park. Shovel Ready Site Update: • Has been submitted to the state for their review and comments. • The state is currently reviewing the shovel ready program in conjunction with the development of a new contract for site review. • After the state has determined the contract status, they will be arranging for a site visit which should be in early 2023. • Upon the states completion of the review of information , the city will be submitting the application fee for the certification. Outlook: • The inflation rate is currently hovering around 6%. This is down significantly from the high of 9.1 % in early 2022. • Gas prices are moderating and are projected to be below $3.00 per gallon by the start of the new year. This is due to reduced demand and improving supply conditions. • Minnesota's unemployment rate is at an all-time low of 1.8%% compared to the national rate of 3.7%. • Wright County's unemployment rate is 1.5% compared to Sherburne County's 1.7%. • Federal Reserve has indicated that they may be reducing future rate increases as inflation slows. • GDP grew at a 2.9% compared to the projected growth rate of 2.6%. • Residential real estate market remains strong; however, the days on the market are increasing up from 27 days in October 2021 to 35 days in October 2022. In the last 30 days, 29% of the listings have seen a price adjustment. • Black Friday sales traffic was up from 2021 with online sales for the period increasing by 4% to $35.3 Billion. Please let me know if you have any questions concerning the above projects or require additional information on the projects. In addition, let me know if you have additional projects that should be reviewed and included. wsb" December 2, 2022 Jim Thares Economic Development Manager City of Monticello 505 Walnut Avenue, Suite 1 Monticello, MN 56069 Re: Economic Development Services for the City of Monticello Dear Mr. Thares: Thank you for providing WSB the opportunity to submit this proposal to provide Economic o Development Services for the City of Monticello. The community has made considerable progress cD in working towards their goals and project identification over the last year. Z W Based upon our discussions for the focus of the economic development services for 2023 we � have developed the following summary of the proposed Scope of Services for ongoing support. 0 0 a PROPOSED SCOPE OF SERVICES a M Task 1: Market Engagement: 1.1 Active networking with potential market entrants (on-going). The exact meetings attended would be determined by the Economic Development Manager and the WSB staff some of the possible groups would be: Z • EDAM 2 • GSDC cli • GREATERMSP ° Minnesota Marketing Partnership a • a W Wright County Economic Development Partnership Z Z Other Organizations on an as needed basis. Task 2: Marketing Plan Implementation: 0 0 co W 2.1 Assist City Staff, EDA, and City in implementing the adopted marketing plan. o Aid City staff as needed in developing and/or implementing web or illustrative marketing materials. Cn W Task 3: Financial Packaging and Site Selection Technical Assistance Z > 3.1 Economic Development Opportunities - WSB will identify and assist in identifying a potential economic development opportunities: including the following: a Z o Land acquisition. X o Financial incentive opportunities. o Preliminary proposal development. o Assist in closing. Jim Thares December 2, 2022 Page 2 o Function as a conduit for information and resource for prospects and City staff. o WSB will assist in providing development related information to all qualified leads. o Assistance with financial package preparation in consultation with City staff, policy makers, and financial consultant. o Attendance at pre -design meetings associated with leads. Task 4: Preliminary Site Designs: 4.1 WSB will also assist the city staff in the development of up to four preliminary site plan designs for projects that are requested by the city. o The preliminary site plan designs will be completed by the Landscape Architecture staff. o Complete or signed drawings would be billed separately on a project basis and not included in the retainer fees. Task 5: EDA Interaction: 5.1 WSB will lead a strategy session at 2 EDA meetings focusing on economic development strategy for the city. The sessions are intended to be completed within the structure of the EDA meeting. The resulting strategies will be incorporated into the future work plan for the EDA and economic development staff. FEE FOR SERVICES As outlined in the above Scope of Services, the city has the option to retain WSB for 12 months at the fee of $990.00 per month, starting January 1, 2023. Travel expenses incurred by WSB within Minnesota as part of the Scope Services offering are included in the monthly fee. Travel expenses incurred by WSB for travel outside of Minnesota shall be paid for according to a negotiated price. Additionally, fees for services outside of the above-described scope may be required from time to time shall be completed at an additional hourly rate. If you agree with the proposed project Scope of Services and Fee, please sign below, and return one copy to our office. If you have any questions or comments regarding the above information, please contact me at (612) 400-3569. Sincerely, WSB & Associates Approval Signature By: Jim Gromberg Economic Development Coordinator Title: Date: 2023 Budget Draft EXPENDITURES EDA FUND 2020 2021 2022 2022 2023 % EDA General EDA General ACTUAL ACTUAL BUDGET THRU 7/31 BUDGET CHANGE 213-41911-431990 MISC PROFESSIONAL SERVICES $ - $ 3,170 $ - $ - $ - --- 213-46301-410100 SALARIES, FULL TIME - REG 92,453 89,400 117,707 63,630 124,847 6.07% 213-46301-410200 SALARIES, FULL TIME - OT 206 6 - 373 - --- 213-46301-410300 SALARIES, PART TIME - REG 620 3,230 6,756 2,670 213-46301-411100 SEVERANCE PAY - 631 - - --- 213-46301-411110 SEVERANCE BENEFITS 3,890 (10,621) - - --- 213-46301-412100 PERA CONTRIBUTIONS 6,945 6,641 8,828 4,800 9,364 6.07% 213-46301-412200 FICA CONTRIBUTIONS 6,791 6,719 9,521 4,881 10,096 6.04% 213-46301-413100 HEALTH/DENTAL/LIFE INSURAN 16,054 15,648 25,608 9,659 26,504 3.50% 213-46301-413250 HSA CONTRIBUTIONS 4,292 3,877 - 2,948 - --- 213-46301-413300 LIFE INSURANCE CONTRIBUTIONS 126 83 - 60 --- 213-46301-413400 DISABILITY INS CONTRIBUTIONS 553 513 - 344 - --- 213-46301-415100 WORKERS COMP INSURANCE 2,260 3,206 3,715 2,172 3,793 1 2.10% 213-46301-421990 GENERAL OPERATING SUPPLIES - 54 200 245 50.00% 213-46301-430300 PROF SRV - ENGINEERING FEE 488 228 10,000 -10,500 5.00% 213-46301-430400 PROF SRV - LEGAL FEES 17,318 18,028 22,000 5,928 20,000 -9.09% 213-46301-431990 M ISC PROFESSIONAL SERVICES 61,121 7,769 31,700 47,433 31,700 0.00% 213-46301-431991 MISC PROFESSIONAL SERVICES - PROPERTY MGMT - - 3,000 - 3,000 0.00% 213-46301-431993 MISC PROFESSIONAL SERVICES - ECON DEV SVCS - 14,651 10,600 71,557 2.83% 213-46301-432100 TELEPHONE STIPEND 780 780 780 390 780 0.00% 213-46301-432150 IT SERVICES 2,665 3,002 3,659 1,830 3,530 -3.53% 213-46301-432200 MAIL & DELIVERY SERVICES 133 119 250 38 10.00% 213-46301-433100 TRAVEL/TRAINING EXPENSE 1,348 1,803 1,800 1,436 2.78% 213-46301-434990 ADVERTISING 1,149 501 35,000 26,766 7.14% 213-46301-435100 LEGAL NOTICE PUBLICATION 106 - 600 203 8.33% 213-46301-436100 INSURANCE - LIABILITY/PROPERTY/VEHICLE 1,224 1,664 1,680 1,668 1,650 -1.79% 213-46301-437100 PROPERTY TAXES 1,641 13,682 6,000 13,664 -100.00% 213-46301-438100 UTILITIES - GAS/ELECTRICITY 538 1,171 3,009 50 - 213-46301-438200 WATER/SEWER 1,110 1,180 728 750 -- 213-46301-440100 REPAIR & MTC - BLDG & SYSTEMS - 3,203 - - 213-46301-440200 REPAIR & MTC - FACILITIES MAINTENANCE - - 6,500 3,250 2,360 -63.69% 213-46301-443300 DUES, MEMBERSHIP & SUBSCRIP 5,796 4,996 9,850 7,9916 i' 39.09% 213-46301-461500 REDEVELOPMENT ACTIVITIES 14,571 - 108,246 213,285 134,691424.44% 213-46301-443990 MISCELLANEOUS OTHER EXP 301,172 331,498 1,000 303,182 1,078 7.80% 213-46301-451010 LAND - - - - - --- 213-46301-472030 OPERATING TRANSFER OUT - - 213-46500-430400 PROF SRV - LEGAL FEES - 866 - - --- 213-46601-443990 MISCELLANEOUS OTHER EXP 190,000 - - - --- TOTAL EXPENDITURES $ 735,350 $ 527,696 $ 425,000 $ 794,140 $ 450,000 5.88% EDA Agenda: 12/14/22 7. Consideration of Update of EDA's Legal and Financial Advisory Consultant 2023 Fee Rates (JT) A. REFERENCE AND BACKGROUND: This item is presented to the EDA as an update of the fee rates for the legal and financial advisory consultants used by the EDA for development project contracts, TIF District and model analysis, and program policy review. The attached materials in Exhibits A and B provide information regarding the service fee rates for Kennedy & Graven, Chartered, and Northland Securities, Inc. As can be seen in the Exhibit A, Kennedy and Graven is implementing a very modest 2023 fee increase in the range of 2 to 3 percent for direct bill services and 8 to 12 percent for pass through services. Northland Securities 2023 billing rate shown in Exhibit B is increasing at approximately 5 percent to $225 per hour versus the previous year hourly rate of $215 per hour. The EDA identifies specific line items in its annual General Fund budget for these services every year. Oftentimes, developers, pay a significant portion of the fees billed to the EDA by both of these consultants. Al. Staff Impact: The Economic Development Manager has minimal time in gathering the information related to the consultant fees and presenting to the EDA. A2. Budget Impact: There is a minimal budget impact in review of the 2023 legal and financial advisory fees rates. B. ALTERNATIVE ACTIONS: 1. No motion is needed; this item is for review only. 2. Motion of other as determined by the EDA. C. STAFF RECOMMENDATION: This item is for review only. No approval is needed. The City Council adopts rates as part of their hearing and review on the full ordinance for fee schedule for 2023. Staff believe that the policy makers should have an awareness of the consultant fee rates. If the EDA desires to meet with the consultant staff in the near future to discuss scope of work and fees, that can be arranged at a time of mutual convenience. SUPPORTING DATA: A. Kennedy & Graven 2023 Fees B. Northland Securities 2023 Fees Hayden Stensgard From: Fiorini, Gina A. Sent: Thursday, December 1, 2022 3:20 PM To: Jim Thares; Angela Schumann Subject RE: Request for 2023 Billing rate adjustments -changes for 2023 Hi Jim, Thanks!, I hope you had a wonderful Thanksgiving too! Congratulations to both of you on the Headwaters closing! Below are our current hourly rates and our proposal for adjusted rates commencing January 1. Type of Service Existing Rate Proposed Rate - 2023 Economic Development $220 shareholder $225 shareholders Matters/Non Pass-through $200 associates $205 associates $127 paralegals $130 paralegals Economic Development $250 shareholders $280 shareholders Matters/Pass-through to $210 associates $225 associates developers $147 paralegals $150 paralegals In going through old bills, it looks like our pass-through rate has not increased since at least 2019 which is the reason for the larger jump in that rate. I'd be happy to answer any questions or explain why we believe these rates are reasonable. Please let me know if you have any questions. -Gina Gina Fiorini Kennedy & Graven, Chartered 150 South 5th Street, Suite 700 Minos hs, MN 55402 Phare note that our addrerr has rr e # changed From: Jim Thares Sent: Monday, November 28, 2022 6:22 PM To: Tammy Omdal ; Fiorini, Gina A. Subject: Request for 2023 Billing rate adjustments -changes for 2023 Hi Gina and Tammy. I hope you are both doing well after the Thanksgiving break. Is it possible to get the billing rate adjustments -changes for CY 2023 to provide to the EDA as an information update? Lmk. Thank you. NORTHLAND s -r!@' PUBLIC FINANCE Sent Via Email November 29, 2022 Jim Thares Tim.Thares@ci.monticello.mn.us Monticello Economic Development Authority (EDA) 505 Walnut Street, Suite 1 Monticello, MN 55362 RE: Planning Services to Monticello EDA Dear Jim: Northland Public Finance, a division of Northland Securities, Inc. appreciates the opportunity to continue our services to the Monticello Economic Development Authority (the "EDA"). We value the work that we have done with the EDA in the past and look forward to the opportunity to continue to provide excellent service. Northland desires to furnish planning services to the EDA as described in this letter. PLANNING SERVICES Examples of the type of planning services Northland may provide to the EDA include the following, but not limited to: ■ Creation and management of tax increment financing districts. ■ Creation and management of tax abatement programs. ■ Preparation of tax increment financing payment calculations and annual reporting to the State Auditor. ■ Review and evaluation of proposals for public financial assistance for private development. ■ Assistance with the negotiation and management of development agreements. ■ Creation of strategies and/or policies for the implementation of development and redevelopment projects. COMPENSATION For calendar year 2023, planning services are proposed to be billed at a rate of $225 per hour. For each project, at your request we will provide the EDA with a description of work to be performed and a cost of services. We will not bill for costs -in -excess of the stated amount unless the EDA agrees to a revised scope of work and budget. 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402 Member FINRA and SIPC I Registered with SEC and MSRB Monticello EDA November 29, 2022 Page 2 of 2 We will not surprise the EDA with unexpected billing. We will not seek compensation for services not under contract. Invoices will detail the work performed, requested compensation for the period and show amounts previously billed and amount remaining under the approved budget. Thank you for the opportunity to submit this letter and for the opportunity to continue to provide service to the EDA. I would be happy to answer any questions. Sincerely, NORTHLAND SECURITIES, INC. r-r)� C�� Tammy Omdal Managing Director EDA Agenda: 12/14/22 8. Economic Development Manager's Report (JT) A. MN -DEED Funding Awards - Innovative and Infrastructure Grant Programs: A recent news bulletin from MN -DEED reveals the communities which were announced as receiving funding for various projects. The BDPI (Business Development Public Infrastructure Grant Program) is a potential future source of funding for the EDA to complete additional infrastructure improvements in Otter Creek Business Park. City staff continue to monitor funding levels in this program as well as the appropriate opportunity to apply for this funding. Summary reports related to Manufacturers' Week events are also reported in the bulletin. Finally, the newly formed Growth Loan Fund being rolled out by MN -DEED is summarized in the bulletin as well. See Exhibit A. B. MN -DEED Launch (Entrepreneurial -Start Up Funding Program) and the Small Business Credit Initiative Program roll out: Two relatively new programs targeted to emerging and start-up businesses and those needing additional capital to expand were announced in early November 2022. See Exhibit B. C. Facade Funding Update -Discussion: For the benefit of the EDA Commissioners, staff would like to review the Fagade funding process and as well as the status of recently received applications and the potential need for one-time bid requirement waivers - See Exhibit C. D. Block 52 Update and Progress Photos: Construction work continues on the mixed use residential commercial building in Block 52. The progress photos were taken at 10:30 a.m. on December 8, 2022. See Exhibit D. E. A downtown core area street design and parking layout option has been selected by the City Council. Bolton and Menk the consulting engineering firm completed a report with the design options and presented it to the City Council in a workshop meeting on November 28, 2022. To access the Bolton and Menk Report, see the link below Bolton-Menk = https://www.ci.monticello.mn.us/AgendaCenter/ViewFile/Item/538?f-ileID=6432 EDA Agenda: 12/14/22 F. Prospect List Update: See Exhibit E. G. EDA Commission Appointments and Opening Update: January 2023 will result in an opening for an EDA Commissioner position due to Tracy Hinz winning a Council seat position. Her former EDA commissioner position will need to be posted and filled in January. The EDA typically interviews the applicant candidates and the makes a recommendation to the City Council for appointment -ratification. Presuming that is the process that you want to follow again, it is tentatively contemplated that interview dates would need to be scheduled in mid-January to allow for the Council to appoint the position at its second January meeting. If this timeframe is not optimal, the interviews could occur in late January or early February with a goal of providing a recommendation to the Council for approval and swearing in of the new member for the February 22, 2022 meeting or the March 8, 2023 meeting. Ua Hayden Stensgard From: DEED Communications <MNDEED@public.govdelivery.com> Sent: Sunday, November 6, 2022 1:57 AM To: Jim Thares Subject: Minnesota Department of Employment and Economic Development Weekly Digest Bulletin tinitEMPLOYMENT AND ECONOMIC DEVELOPMENT Six Minnesota Cities Awarded More Than $5 Million in Innovative Business and Infrastructure Grants 10/31/2022 For Immediate Release Alicia Cordes -Mayo 763-406-9965 alicia.cordes-mayo@state.mn.us 1 Oct. 31, 2022 Media Resources Previous Announcements Six Minnesota Cities Awarded More Than $5 Million in Innovative Business and Infrastructure Grants Five greater Minnesota cities awarded Infrastructure Grants; City of Dayton awarded Innovative Business Grant to support public infrastructure improvements for a new Graco, Inc. Facility St. Paul —The Minnesota Department of Employment and Economic Development (DEED) has awarded $3,322,579 in grants to infrastructure projects in Greater Minnesota, and $2,035,101 to fund an infrastructure project for innovative business development in the city of Dayton. "Investing in infrastructure is one of the best ways that cities can lay the groundwork for future economic success," said DEED Commissioner Steve Grove. "These grants will help communities expand their tax base and speed up their growth." The funding awarded through DEED's Greater Minnesota Business Development Public Infrastructure Grant Program (BDPI) was approved for Moorhead, Cokato, Braham, Isle, and St. Michael. It is expected to retain and create 339 full-time jobs and prepare these cities for future growth. The BDPI grant program supports communities outside the Twin Cities metropolitan area. Under the program, DEED 2 awards 50% of eligible capital costs for the qualifying public infrastructure projects. These projects include streets, wastewater collection and treatment, drinking water, storm sewers, and more. Dayton's public infrastructure funding was awarded through DEED's Innovative Business Development Public Infrastructure Grant Program (IBDPI). The IBDPI grant program supports communities by funding new public infrastructure necessary for innovative businesses to locate or expand in Minnesota. Projects must create and/or retain jobs in the area, increase the tax base and enhance economic development for the area. The following is a breakdown of the funding: Braham - $135,337 The city of Braham was awarded $135,337 to construct a street and utilities extension within their industrial park that will create four lots. The city estimates 40 jobs will be created and an increase of $2,000,000 in taxable value for the area in 5 years. The total cost of the infrastructure project is $270,674. Cokato - $376,500 The city of Cokato was awarded $376,500 to construct streets and utilities in a new industrial park that will create five new lots. Minkkinen Iron is seeking to expand their current operation and construct a new 18,000 square foot, $2 million steel fabrication facility in the new industrial park. The city expects the industrial park will assist in retaining and creating 54 jobs and increasing the taxable value of the area by $2.4 million in 5 years. The total cost of the infrastructure project is $753,500. Isle- $201,022 The city of Isle was awarded $201,022 to construct streets and utilities for a new 17 acre industrial park. Doppler Gear plans to expand their current operations with two new buildings. The city expects a total of 12 jobs retained and 38 new jobs in the park within 5 years. The city estimates an increased tax base of $1.4 million. The total cost of the public infrastructure project is $652,020. Moorhead - $2,000,000 The city of Moorhead was awarded $2,000,000 to construct streets and utilities within the MCCARA Industrial Park. The city expects five businesses to locate on the proposed lots within 5 years. It is expected that the businesses will create more than 45 jobs and increase the taxable value of the area by $4.6 million. The total project cost is $4.3 million. St. Michael - $609,720 The city of St. Michael was awarded $609,720 to construct a street and utilities for a new 39 -acre business park. The business park will have at least four lots and the city expects that 4 businesses will invest $36 million and create 150 jobs within five years. They also expect the taxable value of the land will increase by $22 million. The infrastructure project will cost $1,219,440. Dayton - $2,035,101 (IBDPI) The city of Dayton was awarded $2,035,101 to support public infrastructure improvements for a new Graco, Inc. facility. The project is expected to retain and create 150 full-time jobs and expand Graco's Minnesota footprint. Graco has developed and continues to develop groundbreaking technologies in transverse flux electric motors, as well as in a variety of fluid handling and controls application. Graco has 1,700 patents worldwide, approximately 1,400 of which were issued from business units in Minnesota, and has additional facilities in Minneapolis, Anoka, and Rogers. Eligible applicants for the BDPI grant program include counties outside of the seven - county metropolitan area or statutory or home rule cities outside of the seven -county metropolitan area. Eligible projects include publicly owned infrastructure that supports economic development projects, including wastewater collection and 4 treatment, drinking water, storm sewers, utility extensions, and streets. Economic development projects include manufacturing, technology, warehousing and distribution, research and development, agricultural processing, and industrial park development. Eligible applicants for the IBDPI grant include counties, cities, towns, special districts, public higher education institutions, or other political subdivisions or public corporations in Minnesota. Funds from this program can be used for public infrastructure that includes wastewater collection and treatment systems, drinking water systems, storm sewers, utility extensions, telecommunications infrastructure, streets, roads, bridges, parking ramps, facilities that support basic science technology and clinical research, and research infrastructure. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website, the JoinUsMn.com website, or follow us on Twitter. Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. An inspiring discussion to wrap up Manufacturing Month 10/31/2022 An inspiring discussion to wrap up Manufacturing Month Today, DEED wrapped up Manufacturing Month with an inspiring virtual roundtable event featuring manufacturing industry leaders from across the state. Governor Tim Walz proclaimed October as Manufacturing Month because manufacturing is the backbone of Minnesota's economy: • Manufacturing accounted for $56 billion or 14% of the state's gross domestic product and provided more than 310,000 jobs or 11.3% of statewide employment in 2021. • Workers took home $23.4 billion in wages from Minnesota manufacturing jobs in 2021, the second-largest total payroll among private sector industries. Average annual wages for workers in manufacturing are $74,630, 10% higher than across all industries in Minnesota. • Demand for manufacturing workers is strong — and competition for workers is intense because of our current historically tight labor market. From September 2021 to September 2022, manufacturing posted 15,937 additional jobs in Minnesota, up 5.1% over the year, compared to 3.7% nationally. Demand for manufacturing workers is projected to remain strong: Minnesota is expected to have more than 75,000 job openings for manufacturing production positions alone through 2030. Today's virtual event, hosted by DEED Commissioner Steve Grove, highlighted the critical importance of manufacturing to Minnesota's economy. It was also a great opportunity to hear from manufacturing industry leaders from across the state. Here are some highlights of what those manufacturing leaders shared today. Traci Tapani, owner of Wyoming Machine in Stacy highlighted the need for accessible and affordable housing and child care to help more people move into the workforce and into manufacturing careers. She also stressed that during our extremely tight labor market we need "all hands on deck," so more needs to be done bring women, young people, people with disabilities, immigrants and formerly incarcerated people into the workforce. "There are some businesses in our economy where hiring someone who was formerly incarcerated is difficult, but in manufacturing there is no reason someone who has been incarcerated can't work in production job and be very successful at it," she said. Tapani went on to say that Wyoming Machine has several formerly incarcerated people on staff and they are great contributors and co-workers. Mark Petersen, operations manager at ITW Heartland in Alexandria and president of the Tri-State Manufacturers Association, said one of the biggest hiring challenges manufacturers face is getting parents to support their children in moving into the field. "When we show the parent and the child around the shop, and ask them, 'is this what you thought it would look likeT they say, 'oh no, look, it's clean and look at this fancy stuff!"' Petersen said. "Getting the kids in front of our senior machinists that know how to program and set up a run and showing them on the computer how they build a program out of a solid model ... that's what gets them excited." Wade Karnes, owner of Zakobe LLC in Bovey and president of the Arrowhead Manufacturers and Fabricators Association, remarked that that, "we need better communication between the [career and technical education] system and manufacturers." Karnes said area manufacturers are excited about the CTE Jamboree coming up on November 17 at St. Michael -Albertville High School that aims to do just that. Reaching kids in high school is critical to connecting with potential future employees in the area, Karnes said. Lance Louis, president and CEO of Louis Industries in Paynesville and vice president of the Central Minnesota Manufacturers Association, said youth apprenticeship programs have been hugely successful for his company and that two of his key staff came up through the ranks after starting as youth apprentices. But a challenge is keeping more of the workers they train. "With a lot of these training programs, us as employers are putting a tremendous amount of resources into training people — for the youth apprenticeship, 50 hours of safety training and 700 hours of youth skills programs — then they leave to go down to metro area for better pay," said Louis, who is also a member of the Governor's Workforce Development Board. "I think we need to take a hard look at, how do we keep these people on the job site with the employers that are spending the time and effort training them." Les Engel, owner of Engel Metallurgical in Sauk Rapids and president of the Central Minnesota Manufacturers Association, said every manufacturer he talks to is facing the same challenges finding workers with the necessary skills. "If we can figure out a way for people to get this basic training then when they show up they have a chance to be hired," he said. George Chapple, training manager at Daikin in Owatonna, agreed that basic skills training is needed both in high school curricula and in community education opportunities. "We did a needs assessment across the board and we've identified what are those skills sets, and we incorporated that into our new hire orientation," he said. "We call it our common skills modules, and that includes hand and power tools, wiring and schematics, blueprint interpretation and precision measurement... common skills almost everyone on the production floor needs to master." Steve Kalina, president and CEO at the Minnesota Precision Manufacturing Association in Plymouth, spoke about how automation can be a game changer for even small manufacturers by filling roles where employers can't find workers and being able to offer higher wages to higher skilled employees they do hire. "Automation is not replacing jobs, it's replacing open positions that we can't fill with people," he said. "It's automating the set-up, automating the work holding, automating the inspection... so instead of having a machinist sit and inspect or sit and load, the machinist is focusing on the programming or running the automation or problem solving." Kalina hopes the state can do more to get the word out about training programs that could help more manufacturers upskill staff to expand automation in their shops. Nicole Hiller, HR manager at Dotson Iron Castings in Mankato, noted that her company has been participating in the Tour of Manufacturing for many years,and that this year they had 200 high school students come through their metal casting shop. She also shared how community engagement is so important in being a great place to work. Hiller recounted how Dotson had a fire several years ago that shut down production for five weeks and during that time "we worked with community partners sending out team members to work with nonprofits and team members got paid full work weeks and those folks were committed to that and enjoyed the opportunity to get out and give back to the community they live and work in." DEED is working to help address workforce challenges, meet training needs and more. We are focused on helping connect people who need work with the employers who need them. DEED engaged in intensive outreach around the state through the Summer of Jobs campaign to help showcase the thousands of jobs available throughout Minnesota. DEED also connects eligible job seekers with training they need to help prepare themselves for work in manufacturing through our employment and training programs. And DEED helps manufacturing employers upskill new and existing employees through Minnesota Job Skills Partnership grants, which provide up to $400,000 for training developed and delivered by an accredited Minnesota education institution to meet specific business needs. Plus, DEED provides funding for employee training in automation through the Automation Training Incentive Program, which provides grants of up to $35,000 available to small businesses in the manufacturing industry to train incumbent workers as quickly and effectively as possible on new automation technology. DEED offers incentives for the creation of good manufacturing jobs through the Minnesota Investment Fund and the Job Creation Fund. Coming soon, DEED will be offering gap financing loans through the State Small Business Credit Initiative (SSBCI) Automation Loan Participation Program. View a recording of today's Manufacturing Month roundtable discussion. Access DEED's Small Business Hub. View Manufacturing Month resources which will live on after October ends. DEED Developments Blog Subscribe to receive more information from DEED. Tomorrow: Join us for Workforce Wednesday! 11/01/2022 Building Bridges: DEI as an Effective Recruitment, Retention & Sustainability Strategy: American Indian Workforce Wednesday, Nov. 2 11 a.m. to 12 p.m. 12 p.m. to 12:30 p.m. Unplugged - Q & A 10 Register now Nearly 80,000 Minnesotans identify as American Indian or Alaska Natives, with seven Ojibwa tribal nations and four Lakota tribal nations located in our great state. In addition, Minnesota has urban communities that are home to native people and cultures. In fact, the Phillips neighborhood of Minneapolis has one of the highest percentages of population who identify as American Indian and Alaska Native of any community in the U.S. The Native cultures of Minnesota are rich with cultural, spiritual, and geographic variety. Celebrating and championing this uniqueness within our organizational cultures and operations is an important step in growing healthy and sustainable communities. Join us for an engaging discussion around strategies that support and strengthen our American Indian Workforce. We will explore resources available on a state and local level, and provide opportunities to connect with community builders who are already invested in our Native communities and workforce. We will also talk with organizations that are currently succeeding at building meaningful connections between our Indigenous and non -Native neighbors, and who are doing the work to strengthen and sustain these valuable relationships. Hear from our panel of subject matter experts on how DEI strategies not only benefit us as employers but provide a roadmap of sustainability for our local economies and communities as well. Panelists for the Nov. 2 discussion include: Kirk Crowshoe — Native American Liaison, Department of Employment and Economic Development Raymond Douha — Director of Veterans Services, Department of Employment and Economic Development Hannah Smith —JEDI Fellow, the Region 5 Economic Development Commission Be sure to check out our optional "Workforce Wednesday: Unplugged" immediately following the event for an extra 30 minutes of Q & A and the opportunity to turn your camera on, unmute yourself, and ask questions directly to the Regional Workforce Strategy Consultants, as well as the session's panelists. This event will be recorded and will be made available for viewing after the event. For general questions and accommodation requests, please email: lames.whirlwindsoldier@state.mn.us Past Workforce Wednesday Session Resources Workforce Wednesday takes place the first Wednesday of every month. You can see a recording of the October session here. 11 Check out all the great employer resources available to you at CareerForceMN.com/WorkforceWednesday Stay in the Know! Be sure to sign up for email updates from your Workforce Strategy Consultant Team! Thank you! Your Workforce Strategy Consultant Team For general questions and accommodation requests, please email iames.whirlwindsoldier@state.mn.us. DEED Launches Second Small Business Funding Stream 11/01/2022 For Immediate Release Alicia Cordes -Mayo Nov. 1, 2022 763-406-9965 Media Resources alicia.cordes-mayo@state.mn.us Previous Announcements DEED Launches Second Small Business Funding Stream Growth Loan Fund Provides Funding for Early -Stage Businesses 12 St. Paul —Today, the Minnesota Department of Employment and Economic Development (DEED) launched the Growth Loan Fund as part of the recently announced $97 million through the State Small Business Credit Initiative (SSBCI) from the U.S. Department of the Treasury. This new program provides direct loans from DEED to technologically innovative seed- and early-stage businesses. "New technology startups are central to Minnesota's overall competitiveness, and this funding will help more Minnesotans build the next big thing," said DEED Commissioner Steve Grove. "The funding will have a significant impact for startups around the state who need it most — especially entrepreneurs of color, women and veterans who are building the future of our economy." The federal government has approved Minnesota for up to $97 million in small business financing support, which allows DEED to carry out its commitment to help small businesses grow and succeed. The Growth Loan Fund supports entrepreneurial growth throughout Minnesota. Businesses seeking funding through this program need to be engaged in, or be committed to engage in, technological innovation in Minnesota. Qualified high- technology fields include: aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical devices, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, or similar. The primary business activity must include one or more of the following: • Using proprietary technology to add value to a product, process or service in a qualified high-technology field • Researching or developing a proprietary product, process, or service in a qualified high-technology field • Researching, developing, or producing a new proprietary technology for use in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation 13 • Researching or developing a proprietary product, process or service in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation (no technology component required) Informational webinar Businesses interested in participating in the Growth Loan Fund Program are invited to loin a webinar with DEED officials on Friday, November 4 at 1:00 p.m. Applicants must be seeking equity investments in a funding round that includes at least one venture capital fund or accredited investor. Loans range from $100,000 to $400,000 based on 20% of the total investment in the defined funding round, not to exceed 12 months subsequent to loan approval. The business must complete at least 70% of the proposed equity raise to remain eligible for the loan. DEED is now accepting applications from businesses seeking financing from the program. Eligible businesses must meet one of the following criteria: 1) been certified to participate in the Angel Tax Credit (ATC) Program; 2) be identified by a venture or angel fund for investment; or 3) be identified by an individual accredited investor for investment. Launch Minnesota grantees are strong candidates for this funding. Loan Guarantee Launched In October, DEED opened the Loan Guarantee program for banks and Community Development Financial Institutions (CDFI) to apply to be enrolled lenders. DEED has allocated $12.5 million for the program with $4 million available in the first disbursement. Interested banks and CDFI's may apply here. DEED will post enrolled lenders on the website. More SSBCI programs coming throughout the fall The other small business funding streams launching in the weeks ahead include automation loans and purchased loan participations. Additionally, a partnership with 14 the University of Minnesota will provide opportunities for direct investment venture capital and venture capital fund investments. Bringing it all together: a new online Small Business Hub To help small businesses and startups navigate these new programs and understand the breadth of DEED's existing resources for small businesses, the agency recently launched a new online Small Business Hub. The Hub is designed to help entrepreneurs navigate agency resources to start and grow their businesses. It provides resources and expertise for small business owners looking to launch in Minnesota, along with a comprehensive list of DEED program offerings to help entrepreneurs thrive. It can be found at joinusmn.com/smalIbusiness. The creation of one-stop shop resources was one of the recommendations of the Governor's Council on Economic Expansion, which advocated for increased focus from the agency to help small business growth. That recommendation will remain a key priority of the Walz -Flanagan administration across the enterprise. For more information about SSBCI, visit Treasury's SSCBI page or learn more at DEED. About the State Small Business Credit Initiative SSBCI was part of the American Rescue Plan Act (ARPA) of 2021 and included $10 billion for state, territory and tribal business finance programs. This is the second SSBCI initiative — Minnesota received $15 million through the Small Business Jobs Act of 2010. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website, the JoinUsMn.com website, or follow us on Twitter. 15 Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. DEED launches Growth Loan Fund to provide funding for early-stage businesses 11/01/2022 DEED Launches Growth Loan Fund to provide funding for early-stage businesses The Minnesota Department of Employment and Economic Development (DEED) launched the Growth Loan Fund today as part of the recently announced $97 million through the State Small Business Credit Initiative (SSBCI). This program provides direct loans from DEED to technologically innovative seed- and early- stage businesses. The federal government has approved Minnesota for up to $97 million in small business financing support, which allows DEED to carry out its commitment to help small businesses grow and succeed. The Growth Loan Fund supports entrepreneurial growth throughout Minnesota. DEED is now accepting applications from businesses seeking financing from the program. Informational webinar Businesses interested in participating in the Growth Loan Fund Program are invited to join a webinar with DEED officials on Friday, November 4 at 1:00 p.m. Applicants must be seeking equity investments in a funding round that includes at least one venture capital fund or accredited investor. Loans range from $100,000 to $400,000 based on 20% of the total investment in the defined funding round, 16 not to exceed 12 months subsequent to loan approval. The business must complete at least 70% of the proposed equity raise to remain eligible for the loan. Eligible businesses must meet one of the following criteria: 1) been certified to participate in the Angel Tax Credit (ATC) Program; 2) be identified by a venture or angel fund for investment; or 3) be identified by an individual accredited investor for investment. To qualify for funding through the Growth Loan Fund, businesses need to be engaged in, or be committed to engage in, technological innovation in Minnesota. The primary business activity must include one or more of the following: • Using proprietary technology to add value to a product, process or service in a qualified high-technology field; • Researching or developing a proprietary product, process, or service in a qualified high-technology field; • Researching, developing, or producing a new proprietary technology for use in the fields of: agriculture, tourism, forestry, mining, manufacturing, or transportation; or • Researching or developing a proprietary product, process or service in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation (no technology component required). More SSBCI programs coming throughout the fall The other small business funding streams launching in the weeks ahead include automation loans and purchase loan participations. Additionally, a partnership with the University of Minnesota will provide opportunities for direct investment venture capital and venture capital fund investments. Bringing it all together: a new online Small Business Hub To help small businesses and startups navigate these new programs and understand the breadth of DEED's existing resources for small businesses, the agency recently launched a new online Small Business Hub. The Hub is designed to help entrepreneurs navigate agency resources to start and grow their businesses. It provides resources and expertise for small business owners looking to launch in Minnesota, along with a comprehensive list of DEED program offerings to help entrepreneurs thrive. It can be found at joinusmn.com/smalIbusiness. The creation of one-stop shop resources was one of the recommendations of the Governor's Council on Economic Expansion, which advocated for increased focus 17 from the agency to help small business growth. That recommendation will remain a key priority of the Walz -Flanagan administration across the enterprise. For more information about SSBCI, visit Treasury's SSCBI page or learn more at DEED. Find and Pay for STEM Interns with Free Funding 11/03/2022 SciTech INTERNSHIP PROGRAM_.. Building Minnesota's STEM workforce one internship at a time Free Resource to Find and Pay for STEM Interns Your small company can build its future workforce, source great talent AND access a wage match to cover 50% of a college STEM intern's wages through the SciTech Internship Program. • Employers receive a wage match of 50% of the intern's wages, worth up to $2,500. • SciTech is free for students and small employers. • At least 200 wage matches are available on a first-come, first -hire basis. • Industries include tech, biotech, engineering, manufacturing, energy, aerospace, ag and more! Want to know more? Check out this short recording to see how the program works. You'll hear directly from employers that have used the SciTech program about their experiences. To apply, go to SciTechMN.or� 18 Questions? Contact the SciTech Program Director at the Minnesota Technology Association: Becky Siekmeier SciTech is a state funded workforce development program. Reminder of Tomorrow's Webinar for Early Stage Businesses 11/03/2022 Growth loan Fund Webinar Details The Minnesota Department of Employment and Economic Development (DEED) launched the Growth Loan Fund this week as part of the recently announced $97 million through the State Small Business Credit Initiative (SSBCI). This program provides direct loans from DEED to technologically innovative seed- and early- stage businesses. Informational webinar Businesses interested in participating in the Growth Loan Fund Program are invited to loin a webinar with DEED officials on Friday, November 4 at 1:00 p.m. Applicants must be seeking equity investments in a funding round that includes at least one venture capital fund or accredited investor. Loans range from $100,000 to $400,000 based on 20% of the total investment in the defined funding round, not to exceed 12 months subsequent to loan approval. The business must complete at least 70% of the proposed equity raise to remain eligible for the loan. Eligible businesses must meet one of the following criteria: 1) been certified to participate in the Angel Tax Credit (ATC) Program; 2) be identified by a venture or angel fund for investment; or 3) be identified by an individual accredited investor for investment. To qualify for funding through the Growth Loan Fund, businesses need to be engaged in, or be committed to engage in, technological innovation in Minnesota. The primary business activity must include one or more of the following: 19 • Using proprietary technology to add value to a product, process or service in a qualified high-technology field; • Researching or developing a proprietary product, process, or service in a qualified high-technology field; • Researching, developing, or producing a new proprietary technology for use in the fields of: agriculture, tourism, forestry, mining, manufacturing, or transportation; or • Researching or developing a proprietary product, process or service in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation (no technology component required). DEED is now accepting applications from businesses seeking financing from the program. Limited Space Available! Join our Minnesota Delegation at Arab Health 2023 11/03/2022 INNESOTw EMPLOYMENT AND MEDICAL M� ECONOMIC DEVELOPMENT ALLEY 117/ III � Join the Minnesota Booth at Arab Health! January 30 - February 2, 2023 Dubai World Trade Centre, UAE Do you have medical products to sell? The Middle East is buying! Arab Health brings healthcare decision -makers from across the world together to learn, network and collaborate for a more sustainable, positive impact industry. By attending, exhibitors receive the 20 opportunity to showcase innovative products and solutions to more than 57,000 healthcare and trade professionals from 170 countries. Co -Exhibitor Benefits • Shared exhibit space at the Minnesota booth. Booth will be staffed, giving you free time to walk the show floor or a dozen other exhibit halls. • One display counter with company logo recognition, per co -exhibitor. • One trade show pass included. Additional passes subject to availability. • USA Pavilion meeting space amenities. • A basic listing in the show online directory. How to Apply, Questions about travel, health safety, and exhibiting? Contact: Aeli Wiebolt, International Marketing Specialist & STEP Grant Administrator + Protocol Officer Aeli.Wiebolt@state.mn.us 651-336-2650 Questions? Contact Us fl 1 SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help DEED is an equal opportunity employer and program provider. This email was sent to jim.thares@ci.monticello.mn.us using GovDelivery Communications Cloud on behalf of: Minnesota Department of Employment and Economic Development - 332 Minnesota Street Suite E-200 - Saint Paul, MN 55101 - (800) 657- 3858 21 �OVDFLIVERY50 Hayden Stensgard From: DEED Communications <MNDEED@public.govdelivery.com> Sent: Sunday, October 30, 2022 11:43 AM To: Jim Thares Subject: Minnesota Department of Employment and Economic Development Weekly Digest Bulletin Launch Minnesota Awards Over $1 M in Innovation Grants to Startups 10/25/2022 For Immediate Release Alicia Cordes -Mayo Oct. 25, 2022 aIicia.cordes-mayo@state.mn.us Media Resources Previous Announcements Launch Minnesota Awards Over $1M in Innovation Grants to Startups 43 startups receive Innovation Grant funding Aimee barza is the Founder and CEO of Coravie Medical, a Twin Cities -based company that received both a Business Operations grant and SBIR/STTR matching grant this round. St. Paul —Today the Minnesota Department of Employment and Economic Development (DEED) announced $1,189,500 in Launch Minnesota Innovation Grant awards to startups across the state. The grants were awarded to 43 startups, over half of which are led by entrepreneurs of color, veterans, women, or located in Greater Minnesota. Launch Minnesota Innovation Grants target the most promising, innovative and scalable technology businesses in Minnesota. The grants help reduce the risk for Minnesota technology startups and entrepreneurs who are solving problems and growing the state's innovation ecosystem. "The launch of new technology startups is central to Minnesota's overall competitiveness, because our startup ecosystem has an outsized impact on our state," said DEED Commissioner Steve Grove. "These grants encourage more Minnesotans to build the next big thing — creating jobs and opportunities in industries of the future." Since its inception during the 2019 legislative session, Launch Minnesota has awarded 245 Innovation Grants totaling $6M to 176 unique grantees — accelerating the growth of startups and amplifying Minnesota as a national leader in innovation. The program has $3M this biennium, $1.5M each fiscal year to provide grants to high- growth startups. Launch Minnesota has $310,500 remaining this fiscal year, which ends June 2023. "Putting capital in the hands of founders is making a difference," said Launch Minnesota Executive Director Neela Mollgaard. "These businesses are growing and solving big problems that will define our state's next chapter." Innovation Grants include business operations, which provide up to $35,000 for research and development, direct business expenses and technical assistance, and Small Business Innovation Research / Small Business Technology Transfer (SBIR/STTR) Matching Grants, for first time Phase I and Phase II awardees and that are based on sliding scales of their federal awards. Businesses are eligible to receive one of each grant over the two-year period. The following companies received grants: Adapt Design Works LLC (Business Operations): Developing an app -connected system that monitors and prevents pressure injuries for wheelchair users. Agitated Solutions Inc (Business Operations): Provides agitated saline as contrast during ultrasound procedures. Astrin Biosciences Inc (SBIR/STTR): Developing single -cell diagnostic tools and precision therapies to transform cancer mortality. Binary Bridge SBC (Business Operations): Bringing health equity and clinic modernization to emerging economies with an innovative digital health records system. Bus Stop Mamas LLC (Business Operations): Workforce engagement tool that provides businesses access to an untapped talent pool of educated stay-at-home moms. C Drager LLC (Business Operations): Online platform for farmers and independent meat market producers to sell directly to consumers. Canomiks Inc (SBIR/STTR): Developing an AI -based platform to test and certify biological efficacy and safety for the food, beverage and dietary supplement industry. Carba Inc (Business Operations): Permanently removes and buries large quantities of carbon monoxide from the atmosphere. Cerovations LLC (SBIR/STTR): Medtech development focused on neurosurgical, urologic/gynecologic and cardiac inventions. Clean Chickens and Co. LLC (Business Operations): Mobile Poultry Processing Unit that is both USDA inspected and Halal Certified. CoraVie Medical: (Business Operations and SBIR/STTR) Developing a subcutaneous, continuous blood pressure monitor. Daynamica Inc (SBIR/STTR): Application for collecting, processing and understanding human activity and travel behavior data. Detect Auto Inc (Business Operations): Computer vision -based analytics platform for auto repair shops providing analytics and insights on shop performance with Al. Empower Independence Company LLC (Business Operations): Developing a shower system that enables individuals with physical limitations to provide self-care, increase independence and enhance safety in the shower. Exergi Predictive Inc (SBIR/STTR): Developing machine learning software products for hybrid and electric vehicles. Frontline Biotechnologies Inc (Business Operations): Researching a novel eDNA sorbent kit for use as a diagnostic tool for aquatic disease and invasive species. 4 Hayaa LLC (Business Operations): Providing culturally appropriate sanitary wear for Muslim healthcare workers. Heart Failure Solutions Inc (Business Operations): Assisting heart failure patients that have been diagnosed with heart failure with preserved ejection fraction. Isola Therapeutics Inc: Business Operations and SBIR/STTR) Developing a local drug delivery platform to treat lung cancer and esophageal cancer. Loon Medical LLC (SBIR/STTR): Developing a mobile application with a quality - controlled collection of clinical signs and outcome monitoring meant for infants and preschoolers with respiratory illnesses. MarPam Pharma LLC (SBIR/STTR): Developing a one-time treatment for HIV that eliminates the need to take daily antiretroviral medications. Morari Inc (Business Operations): Developed a chemical -free Bluetooth -enabled wearable patch for the treatment of premature ejaculation. NeuraWorkx Medical Technologies Inc (Business Operations): Developing a non- invasive bioelectronic and digital health solution by enhancing the brain's glymphatic system to slow its aging process. Neurotype Inc (Business Operations): Researching and developing portable brain sensing tools to support the recovery of people who struggle with substance use disorders. Nightware Inc (SBIR/STTR): Prescription digital therapeutic system for the reduction of sleep disturbance related to nightmare disorder or nightmares from post-traumatic stress disorder. NovoClade Inc (SBIR/STTR): Working to bring chemical -free environmentally friendly insect control to market. Nucleic Sensing Systems LLC (SBIR/STTR): Developing technology for the autonomous detection and verification of biological organisms. Parkpoolr LLC (Business Operations): Offering modern parking management including property management, advertising, payment collection and more. REMastered Sleep LLC: (Business Operations and SBIR/STTR) Myofunctional therapy water bottle providing a simple solution to improve airway health and get better sleep. Sasya Inc (SBIR/STTR): Developing low-cost, high -performing feed additives for the swine feed market. Sarcio Inc (Business Operations): Developing an osteoarthritis regenerative cell therapy. Shape Medical Systems Inc (SBIR/STTR): Validating new methods developed by Shape to detect early-stage pulmonary arterial hypertension. SIID Technologies LLC (Business Operations): Applies principles of machine learning and data science to develop SaaS software products that mitigate algorithmic bias within legal practices. Superior Nano LLC (SBIR/STTR): Developing nano -dosage forms of drug molecules and nano -drug delivery technology. TearRestore Inc (Business Operations): At-home device replacing in -office treatment for dry eye sufferers. Tegnizan Inc (Business Operations): Offers a patented music earring that connects to Bluetooth -enabled devices. Tiumed LLC (Business Operations): Creating an electro -surgical device targeting benign prostatic hyperplasia surgeries. TriOxLLC (Business Operations): Developing an at-home appliance that sterilizers a prosthetic sleeve. TurnSignl Inc (Business Operations): On -demand legal guidance from an attorney to drivers. Weathervane Labs LLC (SBIR/STIR): App with personalized weather insights. Visit LaunchMinnesota.org or the Launch Minnesota grants section of the DEED website to learn more about grant opportunities, see a listing of grant recipients and access application materials. Launch Minnesota, spearheaded by the Minnesota Department of Employment and Economic Development (DEED), empowers and elevates our state's innovation ecosystem. By convening and catalyzing efforts statewide, Launch Minnesota helps make Minnesota the best place to start and scale new ventures by providing access to capital, statewide connectivity, and expertise. Find additional details at LounchMinnesoto.org, the DEED website, and the JoinUsMn.com website, or follow us on Twitter. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website, the JoinUsMn.com website, or follow us on Twitter. Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. Announcing $97 Million in Small Business Financial Support 10/25/2022 FXI Announcing $97 Million in Small Business Financial Support By: Commissioner Steve Grove Last Friday, Governor Tim Walz and I announced nearly $100 million in new funding to support small businesses through the State Small Business Credit Initiative (SSBCI) at Flava Cafe in St. Paul. We were joined by Damon Jenkins, Senior Vice President and Twin Cities Regional Market President of First Independence Bank; Lachelle Cunningham, Board Co -Chair of the Neighborhood Development Center (NDC) and Chelles Kitchen owner; Shaunie Grigsby, Founder and CEO of Flava Cafe; and Myron Frans, University of Minnesota Senior Vice President for Finance and Operations. At DEED, we have heard from hundreds of Minnesota businessowners about how to make it easier to start a small business. One hurdle that comes up often is a persistent gap in funding for businesses that are just getting started. We took this feedback and identified six new funding streams to help fill the gaps facing small businessowners. 8 Now, help is on the way. The federal government has approved Minnesota for $97.5 million in small business funding through the State Small Business Credit Initiative (SSBCI). "Neighborhood entrepreneurs have great and beneficial ideas, and they want to invest in their communities with their businesses," Cunningham said at Friday's event. "In turn, we need to invest in them with access to services and resources such as the Small Business Loan Participation program. NDC is excited to see local entrepreneurs receive a new resource to support their businesses." Based on research and dozens of listening sessions with stakeholders over the last year, DEED is committed to addressing significant market gaps in financing with this funding. Before the end of 2022, the agency will launch six Treasury -approved programs under the new initiative to benefit small businesses. In most cases, businesses will access funding through approved lenders or other external financial institutions. "I've had numerous conversations with business owners across the state and a common theme I've heard is, 'show me the money, where's the access to capital.' I'm excited and fortunate to be part of this partnership because this is a reflection that we heard you, we're listening," Jenkins said. "We're part of this ecosystem that will bring resources and capital, to allow the businesses owners to grow, to scale, and put them on the path to success and to be here for the long term. It also provides us additional reach and to be a part of the community solution and make business owners that we serve, better. I'm committed to continuing the conversations with the business owners and inquiring about how we can continue to make this better and ensuring that they have access to the resources." The other small business funding streams launching in the weeks and months ahead include loans to early stage technologically innovative businesses, automation loans and purchase loan participations. In addition, a partnership with the University of Minnesota will provide opportunities for direct investment venture capital and venture capital fund investments. "Entrepreneurs, especially women and BIPOC entrepreneurs, need access to capital and resources that are right for them and their businesses. Through community support, the Neighborhood Development Center, and programs such as these, I've had the opportunity to start and develop my business into what it is today," Grigsby said at Friday's event. The Walz -Flanagan Administration is deeply committed to helping small businesses grow and succeed in Minnesota. That's why we're also unveiling our new online Small Business Hub to help entrepreneurs start and grow their small businesses. The Hub provides details on our upcoming SSBCI programs, as well as resources and expertise for small business owners looking to launch in Minnesota. The new Hub can be found at joinusmn.com/small business. Small business is who we are as an economy, and these new funding streams are critical to bolstering small businesses and helping our economy thrive and become more equitable for all. DEED Developments Bloq Subscribe to receive more information from DEED. Minnesota Economic Trends: Quarterly Issue 10/26/2022 10 Minnesota Economic Trends: Quarterly Issue Every quarter, the Labor Market Information (LMI) Office of the Minnesota Department of Employment and Economic Development (DEED) publishes a slate of research articles that offer insights into important labor market trends. The latest quarterly issue of Minnesota Economic Trends features articles that: examine Minnesotans' job mobility before and after the pandemic recession; analyze demographic, economic, and educational trends and disparities regarding Minnesota's Black labor force; take a closer look at Minnesota's labor force participation changes; and forecast short-term job growth by industry and occupation. Select a title below to view the full article. Job mobility in the post-COVID labor market This study examines job mobility patterns of Minnesota workers before and after the COVID-19 recession, with a focus on wage impacts. By adjusting wages for inflation, this study examines how job mobility interacts with inflation across different groups of workers and industries. Minnesota's Black Labor Force This report provides an analysis of demographic, economic, and educational trends and disparities impacting Black Minnesotans, with comparisons over time and to other states. Minnesota's Job Recovery Continues: An updated analysis of projected job growth 11 Minnesota's economy is projected to continue to grow over the next year, with our short-term jobs forecast surpassing pre -pandemic February 2020 employment levels by the second quarter of 2023. Will a Record -Setting Hot Labor Market Bring Labor Force Participation Back to Pre -Pandemic Levels? This report takes a closer look at the short-term pandemic and long-term demographic impacts on labor force participation. You can see an archive of past Minnesota Economic Trends articles on the DEED website. DEED Developments Blog Subscribe to receive more information from DEED. DEED Celebrates Immigrant Integration Day 10/26/2022 For Immediate Release Alicia Cordes -Mayo 763-406-9965 alicia.cordes-mayo@state.mn.us October 26, 2022 Media Resources Previous Announcements DEED Celebrates Immigrant Integration Day 12 Today's a time to recognize all that immigrants bring to Minnesota's history, culture D Governor Tim Walz proclaimed today as Immigrant Integration Day in Minnesota. The Minnesota Department of Employment and Economic Development (DEED) is marking the day by recognizing the achievements of New Americans and highlighting the need for greater integration of immigrants and refugees in all aspects of Minnesota life. "Welcoming New Americans to our great state is the right thing to do — and it's also the smart thing to do," said DEED Commissioner Steve Grove. "New Americans bring extraordinary talents that grow our economy, and their contributions extend much further. Immigrants & refugees bring new ideas and new perspectives that strengthen Minnesota's culture." "Immigrants and refugees arrive in Minnesota with the hope for a better future for themselves and their children — and we all benefit when they have full opportunity to 13 make those hopes a reality," said DEED Assistant Commissioner for Immigrant and Refugee Affairs Abdiwahab Mohamed. "At DEED, we are working hard to support New Americans in navigating barriers that hold them back from entrepreneurial success and employment that fully utilizes their skills and experience." Nearly one in ten Minnesotans were born in another country and many other Minnesotans are children of immigrants or refugees. Just over 50% of Minnesota's recent labor force growth has been driven by recent immigrants, with more than 80,000 foreign -born Minnesotans joining the workforce between 2010-2018. New Americans also drive a considerable amount of small business creation and growth in Minnesota. In 2018, 20,219 immigrant business owners accounted for 7% of all self- employed Minnesota residents — and in the Twin Cities metro, 11% of all business owners were immigrants. In today's proclamation, Governor Walz recognized the contributions New Americans and previous generations of immigrants and refugees have made to Minnesota's neighborhoods, schools, businesses, and community organizations over the years. The Governor also stated Minnesota's commitment to ensuring that the immigrant communities who call this state home have every opportunity to achieve their dreams and feel welcomed and embraced. DEED's immigrant and refugee efforts are focused on helping state government bring together New Americans, employers, local governments, nonprofits and other partners to create welcoming communities and engage all Minnesotans more fully in the state economy. Staff in DEED's Office of Immigrant and Refugee Affairs work across state agencies and with the governor's office, as well as with community and business leaders throughout Minnesota to break down barriers and build connections. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website, the 1oinUsMn.com website, or follow us on Twitter. 14 Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. Putting out the call for community reviewers 10/27/2022 0 Putting out the call for community reviewers By Interim Director of the Office of Public Engagement Deven Bowdry The Minnesota Department of Employment and Economic Development (DEED) is looking to recruit about 100 community members to serve as grant reviewers for competitive workforce development grant programs during the fall of 2022 and winter of 2022-23. We're committed to including more voices and perspectives in our grantmaking process — and including community reviewers is an important way to do 15 this. We value the community reviewer process across the agency. We will involve community reviewers in our grantmaking decisions for other DEED divisions in the near future. We believe a more inclusive process can help us make funding decisions that will better support our commitment to reducing employment disparities in Minnesota. We want community reviewers who are aware of the current challenges that job seekers face. People with this experience bring an important voice to the table in our decision-making. DEED has recruited community reviewers for our employment and training grants before, and we are eager to continue to leverage their experience and perspectives in the process. In addition to that very important personal experience, prospective community reviewers should have an interest in workforce development, as well as experience in grantmaking, education, training, workforce, and/or a related area. DEED also requires community reviewers to participate in a short online training session. We are seeking individuals who can dedicate 20-40 hours to read grant proposals over the course of 2-3 weeks. Grant reviewers will read approximately 6-12 proposals during November and/or December. Proposals are generally 12-15 pages in length, with additional supporting and budget documents that should also be reviewed. DEED will provide a small stipend to community reviewers who meet eligibility requirements, complete training and review on time, and complete the required process to receive payments. Ready to apply as a community reviewer? Please complete this short online application form to let us know you're interested in participating. But act fast! The application will close at 11:45 p.m. on November 10, 2022. Have more questions? 16 Please join us for one of our two optional community reviewer information sessions. Both of these online sessions will contain the same information. Sessions will be recorded and posted on our YouTube page if you aren't able to attend. November 1, 2022 at 10:00 a.m. Join on your computer, mobile app or room device Click here to join the meeting Meeting ID: 231 722 662 243 Or call in (audio only) +1651-395-7448,,565162622# United States, St. Paul Phone Conference ID: 565 162 622# Me November 7, 2022 at 4:00 p.m. Join on your computer, mobile app or room device Click here to ioin the meetin Meeting ID: 216 622 887 848 Or call in (audio only) +1651-395-7448,,908112827# United States, St. Paul Phone Conference ID: 908 112 827# If you have any questions, please email AskDEED@state.mn.us. Please share this opportunity with your friends and networks. We need your help in finding community members who want to get involved! DEED Developments Bloq Subscribe to receive more information from DEED. Small Business Development Center Announces Regional Host Centers for 2023-2025 10/27/2022 17 For Immediate Release Alicia Cordes -Mayo 763-406-9965 October 27, 2022 Media Resources aIicia.cordes-mayo@state.mn.us Previous Announcements Small Business Development Center Announces Regional Host Centers for 2023-2025 Regional centers provide no -cost services to businesses throughout the state 18 Ribbon cutting at opening of RAEDI's SBDC Regional Center St. Paul —The Minnesota Small Business Development Center (SBDC) in the Department of Employment and Economic Development (DEED) today announced the results of a Request for Proposal (RFP) to host SBDC regional centers throughout Minnesota. A total of nine regional hosts were selected, including seven returning SBDC regional hosts and two newly awarded regional hosts. Minnesota State Community and Technical College (M State) in Moorhead is the new West Central regional host, and Rochester Area Economic Development, Inc. (RAEDI) will serve as the new Southeast regional host. These nine SBDC regional centers (complete list below) will provide business services for a three-year period beginning January 1, 2023. Another outcome of the RFP is that the African Development Center (ADC) will now cooperate with the University of St. Thomas Minneapolis Campus as a satellite center 19 to bring SBDC services to the ADC network in the Twin Cities, Willmar, St. Cloud and Rochester. "Minnesota's Small Business Development Centers are an extraordinary resource for businesses throughout the state of Minnesota — and I don't think enough small businesses know about them," said DEED Commissioner Steve Grove. "We're thrilled to expand their footprint in Greater Minnesota and to the African Development Center — making sure we reach people and businesses who face systemic barriers to growth." "The African Development Center is excited to work with the State and the University of St. Thomas to bring SBDC services to our clients and community," said African Development Center CEO Nasibu Sareva. "Helping small business owners grow businesses and build wealth within their communities is the mission we have been fostering in the African communities of Minnesota since our inception." Created in 1979 to help small businesses start, grow and succeed, the SBDC offers one-on-one professional business consulting services, provides training to entrepreneurs and business owners and helps to secure investment capital for business ventures. The SBDC is supported by the U.S. Small Business Administration, DEED, these regional hosts and a variety of other local partners. SBDC helps facilitate an economic environment that produces job growth and supports the economic success of individuals, businesses and communities. SBDC can help business owners identify new opportunities, increase profits, build resilience and greater stability, provide long-term growth and compete in the worldwide market. Services are available at no cost to clients anywhere throughout Minnesota. "Hosting the regional SBDC office at M State will bring exciting opportunities to our students, our community partners, and anyone in the region with an interest in starting or growing a business," said M State President Carrie Brimhall. "M State is uniquely suited to this task, with our long history of educating and serving students in the region as well as our proven success at building relationships with communities and working together with area businesses." 20 Concordia College in Moorhead has been the SBDC West Central regional host since 2011 and will continue to host through the end of 2022. M State will serve as host beginning January 1, 2023. On July 1, 2022, the Southeast SBDC transitioned its host of over 25 years from Rochester Community and Technical College (RCTC) to Rochester Area Economic Development, Inc. (RAEDI). This transition will allow the SBDC to expand its offerings as it continues to serve business owners across southeast Minnesota through its network of sub -regional SBDC partners. "We are thrilled to be hosting the southeast Minnesota SBDC," said John Wade, President of RAEDI. "Bringing together the services of both organizations under one roof will enable us to better serve entrepreneurs in Rochester and across our 11 - county region." You can find further information about the services provided by the SBDC, locate the service center nearest you, and register to receive consulting services at www.mnsbdc.com. Visit DEED's new Small Business Hub — our online one -stop -shop for everything you need to know about resources for small businesses. DEED's Hub is where you can find the latest information about funding programs, view the five steps to starting a small business in Minnesota, learn about all the resources for small business owners, and more. SBDC Regional Centers selected from the RFP process include: Region Host Institution Host City Northwest Northwest Minnesota Foundation Bemidji Northeast Northland Foundation Duluth West Central Minnesota State Community and Technical College Moorhead North Central Central Lakes College Brainerd 21 Central St. Cloud State University St. Cloud Southwest Southwest Minnesota State University Marshall South Central Minnesota State University Mankato Mankato Southeast Rochester Area Economic Development, Inc. Rochester Twin Cities Metro University of St. Thomas Minneapolis Campus DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website, the Join UsMn.com website, or follow us on Twitter. Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. Last -Minute opportunity to JoinUs in the Minnesota Booth at MEDICA 2022! 10/28/2022 .loin the Minnesota Booth at MEDICA November 14-17, 2022 Dusseldorf, Germany Join forces with the Minnesota Trade Office and exhibit your company at MEDICA, the largest medical trade show in the world. Whether your goal is to find new clients and markets, build on relationships, access the competition, make new industry connections, or understand emerging needs, Minnesota companies can expect MEDICA 2022 to be a cost-effective business opportunity. 22 Co -Exhibitor Benefits • Shared exhibit space at the Minnesota booth. Booth will be staffed, giving you free time to walk the show floor or a dozen other exhibit halls. • One display counter with company logo recognition, per co - exhibitor. • One exhibitor pass included. One Wi-Fi access code per exhibitor, per day. A basic listing in the show catalog. Check out the concurrent COMPAMED, the show for suppliers in two of the Halls, at no extra cost. Financial Assistance You may request a STEP Grant application to qualify for the free booth space ($7,500 value). Space is limited! First come, first served based on STEP application. Apply now! Questions about applying or exhibiting? Contact: Aeli Wiebolt, STEP Grant Administrator Aeli.Wiebolt@state.mn.us Join us for Workforce Wednesday! 10/28/2022 23 Building Bridges: DEI as an Effective Recruitment, Retention & Sustainability Strategy: American Indian Workforce Wednesday, Nov. 2 11 a.m. to 12 p.m. 12 p.m. to 12:30 p.m. Unplugged - Q & A Register now Nearly 80,000 Minnesotans identify as American Indian or Alaska Natives, with seven Ojibwa tribal nations and four Lakota tribal nations located in our great state. In addition, Minnesota has urban communities that are home to native people and cultures. In fact, the Phillips neighborhood of Minneapolis has one of the highest percentages of population who identify as American Indian and Alaska Native of any community in the U.S. The Native cultures of Minnesota are rich with cultural, spiritual, and geographic variety. Celebrating and championing this uniqueness within our organizational cultures and operations is an important step in growing healthy and sustainable communities. Join us for an engaging discussion around strategies that support and strengthen our American Indian Workforce. We will explore resources available on a state and local level, and provide opportunities to connect with community builders who are already invested in our Native communities and workforce. We will also talk with organizations that are currently succeeding at building meaningful connections between our Indigenous and non -Native neighbors, and who are doing the work to strengthen and sustain these valuable relationships. Hear from our panel of subject matter experts on how DEI strategies not only benefit us as employers but provide a roadmap of sustainability for our local economies and communities as well. Panelists for the Nov. 2 discussion include: Kirk Crowshoe — Native American Liaison, Department of Employment and Economic Development Raymond Douha — Director of Veterans Services, Department of Employment and Economic Development • Hannah Smith —JEDI Fellow, the Region 5 Economic Development Commission Be sure to check out our optional "Workforce Wednesday: Unplugged" immediately following the event for an extra 30 minutes of Q & A and the opportunity to turn your camera on, unmute yourself, and ask questions directly to the Regional Workforce Strategy Consultants, as well as the session's panelists. This event will be recorded and will be made available for viewing after the event. 24 i X1 For general questions and accommodation requests, please email: fames.whirlwindsoldier@state.mn.us Past Workforce Wednesday Session Resources Workforce Wednesday takes place the first Wednesday of every month. You can see a recording of the October session here. Check out all the great employer resources available to you at CareerForceMN.com/WorkforceWednesday Stay in the Know! Be sure to sign up for email updates from your Workforce Strategy Consultant Team! Thankyou! Your Workforce Strategy Consultant Team For general questions and accommodation requests, please email james.wh irlwindsoldier@state.mn.us. Questions? Contact Us �0 J SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help DEED is an equal opportunity employer and program provider. 25 This email was sent to jim.thares@ci.monticello.mn.us using GovDelivery Communications Cloud on behalf of: Minnesota Department of Employment and Economic Development - 332 Minnesota Street Suite E-200 - Saint Paul, MN 55101 - (800) 657- Fx1 3858 26 For Immediate Release Alicia Cordes -Mayo 763-406-9965 aIicia.cordes-mayo@state.mn.us Nov. 29, 2022 Media Resources Previous Announcements New DEED automation funding program to bring more robots to Minnesota economy St. Paul — Today, the Minnesota Department of Employment and Economic Development (DEED) announced a new program to support automation at manufacturers, the latest component of the $97 million State Small Business Credit Initiative (SSBCI). As part of the Automation Loan Participation Program, DEED will make companion loans to cover financing gaps and expand financing opportunities for businesses purchasing machinery, equipment, or software to increase productivity and automation. "Facing the tightest labor market in America, we know Minnesota businesses can't create a larger workforce out of thin air," said DEED Commissioner Steve Grove. "A key strategy has to be automation — which is why DEED's new Automation Loan Participation Program will help manufacturers automate more quickly to drive innovation and productivity gains that will help our economy grow." DEED seeking applicants now DEED loans through the new program can be worth up to $500,000 and need to be made in conjunction with private financing. Applications are open now. The new program is designed to support manufacturing, distribution, technology, and warehousing businesses with 500 or fewer employees. These businesses have historically been less likely to pursue automation and are more likely to be unable to 2 secure full financing for automation improvements from other lenders. Full terms and requirements are available on DEED's website. The new loan program joins other DEED initiatives to help manufacturers implement automation. DEED's Automation Training Incentive (ATIP) program provides grants to small businesses for the purpose of training existing workers on new automation technology. Grants of up to $35,000 are available to small businesses in the manufacturing or skilled production industry to train workers as quickly and effectively as possible on new automation technology. DEED staff will host an informational webinar about the new program on Thursday, Dec. 1 at 9:30 am at this link. Five of six SSBCI programs announced The U.S. Department of Treasury has approved Minnesota for up to $97 million in small business financing support, which allows DEED to carry out its commitment to help small businesses grow and succeed. The Automation Loan Participation Program is the fifth of six programs so far announced as part of the new initiative. Other programs include: • The Growth Loan Fund, providing direct loans to innovative seed- and early- stage technology businesses; • The Minnesota Loan Guarantee Program, providing 80% loan guarantees for qualified loans made by enrolled institutions; and • The Direct Investment and Multi -Fund Investment Programs, two venture capital programs offered by the University of Minnesota investing in Minnesota-based seed- and early-stage businesses in the advanced manufacturing, agtech/foodtech, climate tech, life sciences, software, and technology sectors. Bringing it all together: a new online Small Business Hub To help small businesses and startups navigate these new programs and understand the breadth of DEED's existing resources for small businesses, the agency recently launched a new online Small Business Hub. The Hub is designed to help entrepreneurs navigate agency resources to start and grow their businesses. It provides resources and expertise for small business owners looking to launch in Minnesota, along with a comprehensive list of DEED program offerings to help entrepreneurs thrive. It can be found at joinusmn.com/smaIIbusiness. The creation of one-stop shop resources was one of the recommendations of the Governor's Council on Economic Expansion, which advocated for increased focus from the agency to help small business growth. That recommendation will remain a key priority of the Walz -Flanagan administration across the enterprise. For more information about SSBCI, visit Treasury's SSCBI page or learn more at DEED. About the State Small Business Credit Initiative SSBCI was part of the American Rescue Plan Act (ARPA) of 2021 and included $10 billion for state, territory and tribal business finance programs. This is the second SSBCI initiative — Minnesota received $15 million through the Small Business Jobs Act of 2010. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website, the JoinUsMn.com website, or follow us on Twitter. Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. Questions? Contact Us DDD i I� IF �� �e�s �R � �� � _� , s ,h�,°_ � _ -,- ,� �,� _ - , ; _ - ,1 �/ _ �_ - �_�_ �- -- .� -. �- �a 1 a 411 �% i �I r I. I ,a \ _= t ��_"// �; -� , "�� � .,: #�' ,,_. _..;ice v =, , -- - s TY LMonticello MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY DOWNTOWN FACADE IMPROVEMENT FORGIVABLE LOAN PROGRAM GUIDELINES AMENDED NOVEMBER 9, 2022 POLICY PURPOSE The City of Monticello Economic Development Authority ("EDA") recognizes the need to encourage investment in commercial and retail buildings in the Downtown area in order to maintain the economic viability of the City and the Downtown/Central Community District. The purpose of this forgivable loan program is to support a visually and financially appealing Downtown and greater Monticello community by providing forgivable loans to improve the fagades of existing Downtown commercial and retail buildings. ELIGIBLE BUSINESSES Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may be eligible for a Downtown Fagade Improvement Forgivable Loan (" Loan') as further defined herein. The area illustrated in Exhibit A of these guidelines is amended to include the buildings to remain on Block 52 following redevelopment. It is the goal of the EDA that 70% of the buildings within the eligible area complete improvements to their properties. The EDA has allocated a maximum of $250,000 for the initial Loan program. This is a pilot program, and additional areas and allocations will be considered at a future date. FORGIVABLE LOAN FUND TERMS & CONDITIONS Loan Amount * Structure Individual loans may be made in an amount ranging from $5,000450,000. Forgiveness of a loan generally takes place over a five-year period with twenty percent (20%) of the award forgiven annually. The EDA may extend or reduce the forgiveness period based on the dollar amount of the loan. If the benefitting building is sold within the period of the loan, the loan must be repaid. The Applicant must provide at least 5% of the project cost in cash. The Applicant percentage shall be used as the project down -payment, as may be required. Eligibility Requirements Tenants and property owners should discuss the Loan program to determine responsibilities and commitment for application and its components. The owner of the property must be a 1 I Page cosignatory to the application and Loan agreement. The property owner must carry current property insurance both at the time of application and through completion of approved Loan improvements. Property taxes on the subject site must be current for the duration of the Loan. Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible to receive assistance if currently involved in bankruptcy proceedings. Applicants may apply for only one Loan per building. The EDA reserves the right to approve or reject applications on a case-by-case basis, taking into consideration factors considered appropriate by the EDA, in addition to established polices, criteria, and potential benefits. Meeting the criteria does not guarantee an application will be approved. Approval or denial of an application is at the sole discretion of the EDA. Concurrent Loans The concurrent use of different EDA loan programs by any one borrower or for any one project is permitted. Business subsidy agreements may be required. Permitted Loan Uses Exterior renovation of front and corner side facades of principal use retail or commercial buildings. An architectural rendering supplied by one of the following is required: an EDA selected architect, applicant contractor or architect, or a qualified architect accepted by the EDA. This item is required for use in determining the final scope of work in consultation with the applicant and the applicant's selected contractor for any project. The cost of the rendering shall not be included in the Loan amount. Architectural renderings will be considered for preparation after an initial letter of interest by an applicant. Fagade renovation may include, but is not limited to: windows, doors, siding, brick, stucco, masonry, painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components and such improvements shall be guided by the architectural rendering. - Interior side renovation proposals may be considered on a case-by-case basis. The applicant will work with a contractor to define final selected improvements using the architectural rendering as a guide. The architectural rendering with final selected improvements must be reviewed and approved by the EDA and will be included in final Loan documentation. The improvements must be completed in substantial conformity to the approved architectural rendering. MN325\40\836794.v1 2 1 P a g e The cost of the building permit for the approved Loan project will be included in the final Loan amount. CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE As applicable, buildings for which public funds will be used within this program are to be brought into conformity with city ordinances and state building codes in effect for the area in which the building is located. It is the intent of the Downtown Fagade Improvement Loan Program to comply with the City's building standards for the Downtown/Central Community District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards governing this program's design guidelines. TIMING OF PROJECT EXPENSES No project may commence until the EDA has approved the Loan application and the Loan agreement. Any costs incurred prior to execution of the Loan agreement are not eligible expenditures. No building construction may commence until the required city permits are secured. Loan disbursements shall be as provided for within the Loan agreement and shall be made directly to the Applicant/owner's contractor. The Loan agreement shall reference final contracts for improvements. COMMUNICATION Success of the project depends on the completeness of applications and good communication between all parties. Applicants should feel free to reach out to EDA staff with any questions at any time. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the Loan program, discuss the project, and obtain application forms. The applicant shall complete and submit a letter of interest to the EDA. After review, the EDA will consider authorization of the facade rendering by the EDA's architectural consultant. Once the architect and applicant have completed the rendering process, the applicant must submit a formal application to the EDA for review. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An inspection of the building may be required. MN325\40\836794.v1 3 1 P a g e The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal Loan application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, timelines, and capacity to implement the project. b. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. c. Evidence of applicant's ability to meet the 5% cash requirements. d. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. e. All other information as required in the application and/or additional information as may be requested by the EDA staff. f. Project compliance with all applicable city codes and policies. 3. The EDA Commissioners will review each application in terms of: a. Its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study. b. Whether it is desirable and in the best interests of the public to provide funding for the project. c. The project's overall potential impact on the community's economy. 4. The EDA Commissioners will approve or deny the application, or request a resubmission with clarifications, at the EDA's sole discretion. APPROVAL OR DENIAL OF LOAN APPLICATION The EDA, at its sole discretion, may deny any application on a case-by-case basis, taking into consideration factors such as: consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study, the project's overall impact on the community's economy, and the above criteria. LOAN POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. MN325\40\836794.v1 4 1 P a g e COMPLIANCE WITH BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject to the City's Business Subsidy Policy as amended, and the provisions and requirements set forth under Minnesota Statutes, Sections 116J.993 to 116J.995. LOAN AGREEMENT If the application for a Loan is approved, the applicant/property owner will be required to enter into a Loan agreement to proceed. The Loan agreement will specify the terms and conditions of the Loan as identified herein. DISBURSEMENT OF LOAN FUNDS Upon approval of a Loan application, applicants are required to provide executed contracts with qualified, licensed contractors for work per the approved Loan plans. Contracts shall be consistent with the procedures and requirements herein. Loan funds will be disbursed to the contractor based on completion of work as outlined below. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount for the work completed based on submitted invoice. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Fagade Improvement Loan Program must have a contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration and license number and bond. B. BID/QUOTE SOLICITATION: To participate in the Downtown Facade Improvement Loan Program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received does not exceed 20%. C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the property owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; MN325\40\836794.v1 5 1 P a g e 3. Project Completion Date; 4. General Conditions; 5. Building Elevations and Architectural Drawings; 6. Special Conditions; 7. Project Warranties; 8. Change Order Procedures; 9. Payment Terms; 10. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Loan agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. The 180 -day time period shall not be exceeded except through the issuance of a change order. Failure to complete any work within 180 days will be grounds to terminate the Loan agreement. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: Pre -payments for contracted services may be disbursed from an escrow account established with the EDA's specified agency. Such escrow account shall be administered per the Loan agreement. 2. Lien waivers are required for all contractors and sub -contractors before payment will be made. 3. Final payment for work completed, including any retainage amounts, will be made after work by a contractor is completed with verified receipts and costs incurred, the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. F. CHANGE ORDERS: Change orders to the approved Loan project require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. MN325\40\836794.v1 6 1 P a g e PROJECT COMPLETION The City's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved Loan plans. MN325\40\836794.v1 7 1 P a g e EXHIBIT A Geographic Program Limit Downtown Facade Improvement Grant Program Eligibility Area Created by: City of Monticello MN325\40\836794.v1 EXHIBIT B Permitted Fund Uses — Visual Reference MN325\40\836794.v1 MN325\40\836794.v1 Elements of the Facade Overview of the Program y9 1939. �o� - F F 1 E� Cornerstone one �ee� Drsrn+Pi�G +a. -Town.. � MN325\40\836794.v1 Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development Lr i y Y•— a t�i t" poll 7A Downtown Facade Improvement Loan Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown CITY OF n The Monticello EDA has developed a Downtown Facade Im- Cornice--- -. -- provement Loan Program to support property owners in their Upper Frieze- _ .,._ --� �:» ¢• ": •� efforts to reinvest in their buildings and in the historic building := fabric of downtown Monticello. The purpose of the loan pro - Lintel gram is to improve the aesthetics of the Downtown and to make Upper Windows - - - -� it a place that is comfortable and appealing to more people _ throughout the day, week and year. Sill ------ The loan program offers up to $50,000 in loan funding to Middle Frieze ---;W;- '` -:._, 4i individual building property owners or building tenants to make a.. front and corner side building facade improvements in the eligi- Transom ---- ti ble area shown below. Door.... • • "- �` -- The funds are provided as forgivable loans, with the loans Display Window generally forgiven over a 5 -year period with 20% of the __ _E rt: principal amount forgiven each year. The EDA's goal is for at Base Panel least 70% of the proper- ty owners in the area to take advantage of the loan. y9 1939. �o� - F F 1 E� Cornerstone one �ee� Drsrn+Pi�G +a. -Town.. � MN325\40\836794.v1 Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development Lr i y Y•— a t�i t" poll 7A Downtown Facade Improvement Loan Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown CITY OF n Possible Improvements to building on Broadway City of Monticello, MN Monticello 763-271-3224 Angela. Schuman n@ci.monticel lo. mn.us MN325\40\836794.v1 Monticello Design Threads General Design Considerations Facade Improvement Possibilities The following design threads can be incorporated into facade improvements. Doing so will help create a lively and distinctive environment. Transparency and Openness Broadway should be welcoming and inviting. Facades with large windows and well-designed storefronts are comfortable to walk along side and intriguing to look into. They create visual interest to both drivers and walkers. Three Dimensionality/ Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings or vertically from the sidewalk are encouraged. Proportion and Order All elements of the facade should be proportional and orderly to create a harmonius composition. The underlying building should provide the basic order of the composition and ele- ments such as awnings, signage and lighting should respond to the underlying building. Of its Time Downtown Monticello was built over time. Today's buildings reflect a variety of eras and no one particular style. Improvements to the buildings that are in keeping with the spirit of a particular era will create an environment that is of its time. South side of Broadway, Block 36 MN325\40\836794.v1 }- ��,�� •_ oma..:... A renovation or facade improvement project can provide the architectural and human -scale qualities to improve the aesthet- ics of Downtown. The following design considerations highlight key elements that will provide guidance in restoring or enhanc- ing architectural value to building. - Most facades consist of an architectural framework designed to identify individual storefronts. Each storefront should respect this framework. - Facades should present a visually balanced composition ac- cording to the original architectural intent. - In cases where original building elements have been removed or substantially altered, contemporary treatments respecting the original and historic details are suitable. However, they should not appear to be of poor quality, of temporary nature, or ill-suited for the area (vinyl or aluminum siding). - If a building has historic or architectural merit, improvements should be designed to reveal the buildings original style form and materials, whenever possible. - Architectural services will be offered at no charge to loan fund applicants. paint and signage corner treatments integrated signage BIKE AND TRIXF j T `� 1, restored brickwork murals welcoming fronts Sample Illustration MN325\40\836794.v1 Date of Company Name Business Category Project Description Contact IL Retained lobs New lobs 5/22/2018 Karlsburger Foods Food Products Mfg. Facilty Expansion 11/29/2018 Project Blitzen Precision Machining Exist Bldg or New Const. 3/28/2019 Project Nutt Co -Working Space Existing Building 5/9/2019 Project FSJP Light Mfg -Res. Lab New Construction 8/16/2019 Project Jaguar Office New Construction 1/20/2020 Project Panda v3 Service -Child Care New Construction .2/23/20- 6- Project TDBBST Industrial New Construction 30-22 20+/- $1,400,000 Active Search 11/5/2020 Project Flower Office Existing 2/16/2021 Project Cold Industrial -Warehouse -Di New Construction $4,100,000 Active Search stri 0 3/19/2021 Project Orion Warehouse-Distributi New Construction on 2/28/2022 Project Emma II Light Ind -Assembly New Construction 6/16/2021 Project UBAA Child Care Services New Construction or Exist 6/30/2021 Project Ecosphere Industrial Tech Mfg. New Construction 7/29/2021 Project BA710 Lt Assem-Distribute New Construction 10/28/2021 Project Stallion New Construction 2/7/2022 Project Shepherd Lt Assembly Distribution New Construction III 12/09/2022 10 $650,000 Active Search 42,000 sq. ft. Building -Facility i Retained lobs New lobs Total Investment Project Status 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 12,000 sq. ft. 10 $1,200,000 Concept Stage ? ? ? ? Concept Stage 20,000 sq. ft. 0 20+/- $1,400,000 Active Search 22,000 sq. ft. 22 4 $2,700,000 Active Search 10,500 sq. ft. 0 21 $4,100,000 Active Search 10,000 to 15,000 sq. 0 9 $1,850,000 Concept Stage ft. 7,000-8,000 sq. ft. 0 12 $750,000 Concept Stage 80,000 sq. ft. 0 21 $12,000,000 Concept Stage 832,500 sq. ft. 0 500 $125,000,000 Active Search 20,000 sq. ff. 0 4 $1,350,000 Active Search 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search 6,500 to 7,000 sq. ft 0 10 $650,000 Active Search 42,000 sq. ft. 40 $3,600,000 Active Search 75,000 sq. ft. 75 $10,500,000 Active Search 4/28/2022 Project Cougar Precision Machining -Mfg. New Construction 35,000 to 45,000 sq. ft. 38 $4,700,000 Active Search 8/11/2022 Project Sing Precision Machining New Construction 400,000 sq. ft. 0 500 $90,000,000 Active Search 10/28/2022 Project IAG Mfg. New Construction 300,000 sq. ft.? 0 50? $70 to $80,000,000 Active Search 11/9/2022 Project Tea Mfg New Construction 25,000 sq. ft. 55 20 $5,800,000 Active Search Contacts: M = 04 YTD = 31