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HomeMy WebLinkAbout2025-09-22 EDA Meeting Packet - Special Meeting AGENDA MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 5:30 P.M. Monday, September 22, 2025 City Hall, Council Chambers Pursuant to Minn. Stat. 13D.02, one or more councilmembers may be participating remotely A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. APPROVAL OF MINUTES 1. September 8, 2025 Economic Development Authority Meeting Minutes E. PUBLIC HEARING None F. UNFINISHED BUSINESS None G. NEW BUSINESS 1. Rice Larpenteur Alliance Presentation 2. Loan Administration Agreement between the Maplewood Economic Development Authority and Community Neighborhood Housing Services dba NeighborWorks Home Partners H. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at the Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK D1 MEETING MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITYMEETING 6:00 P.M. Monday, September 8, 2025 City Hall, Council Chambers A.CALL TO ORDER A meeting of the Maplewood Economic Development Authority (EDA)was heldin the City Hall Council Chambers and was called to order at 6:00 p.m. by President Abrams. B.ROLL CALL Marylee Abrams, PresidentPresent Rebecca Cave, Vice PresidentPresent Kathleen Juenemann, CommissionerPresent Chonburi Lee, CommissionerPresent Nikki Villavicencio,CommissionerPresent C.APPROVAL OF AGENDA CommissionerLeemoved to approve the agendaas submitted. Seconded by CommissionerCave Ayes – All The motion passed. D.APPROVAL OF MINUTES 1.August 25, 2025, Economic Development AuthoritySpecial Meeting Minutes CommissionerJuenemannmoved to approve the August 25, 2025 Economic Development AuthoritySpecial Meeting Minutes as submitted. Seconded by CommissionerCave Ayes – All The motion passed. E.PUBLIC HEARING None F.UNFINISHED BUSINESS 1.Resolution Adopting the 2026 Preliminary EDA Property Tax Levy Assistant Treasurer Rueb gave the staff report. Executive Director Sable shared additional information. CommissionerLeemoved to approve the resolution setting a preliminary EDA tax levy for taxes payable in 2026 of $636,000. September 8, 2025 Maplewood Economic Development AuthorityMeeting Minutes 1 EDA Packet Page Number 1 of 20 D1 Resolution 25-09-0030 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITYRESOLUTION REQUESTING CITY APPROVALOF THE 2026 PRELIMINARY MEDA LEVY WHEREAS, in accordance with its bylaws, the Maplewood Economic Development Authority (“MEDA”) has approved an annual budget of $636,000 for 2026 and has submitted the budget to the Maplewood City Council for inclusion and incorporation in the City’s annual budget and tax levy; and WHEREAS, MEDA is a special taxing district within the meaning of Minnesota Statutes, section 275.066; and WHEREAS, Minnesota Statutes, section 275.065 requires that special taxing districts and cities set their preliminary tax levy for the following year by September 30 of the current year; and WHEREAS, Minnesota Statutes, section 469.107 authorizes MEDA to request that the City levy a tax for the benefit of MEDA; and WHEREAS, MEDA has complied with the requirements of Minnesota Statutes, section 275.067 by notifying the Ramsey County Auditor by July 1, 2025 of its intent to levy a tax for 2026. NOW THEREFORE BE IT RESOLVED that the Maplewood Economic Development Authority approves the 2026 Preliminary MEDA Levy in the amount of $636,000, and requests the Maplewood City Council to levy a tax in the amount of $636,000 for fiscal year 2026 for the benefit of MEDA. Seconded by CommissionerCaveAyes – All The motion passed. G.NEW BUSINESS 1.Call for Special EDA Meeting on September 22, 2025 Assistant Executive Director Parr gave the staff report. CommissionerJuenemannmoved to call a special meeting of the EDA on September 22, 2025, at 5:30pm. Seconded by CommissionerLeeAyes – All The motion passed. H.ADJOURNMENT President Abramsadjourned the meeting at6:08p.m. September 8, 2025 Maplewood Economic Development AuthorityMeeting Minutes 2 EDA Packet Page Number 2 of 20 G1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITYSTAFF REPORT Meeting Date September 22, 2025 REPORT TO:Michael Sable, Executive Director REPORT FROM: Danette Parr, Assistant Executive Director PRESENTER:Kim O’Brien, Rice Larpenteur Alliance Executive Director Rice Larpenteur Alliance Presentation AGENDA ITEM: Action Requested:MotionDiscussionPublic Hearing Form of Action:ResolutionOrdinanceContract/AgreementProclamation Policy Issue: The City of Maplewood participates in the Rice Larpenteur Alliance (RLA) along with Roseville, St. Paul, and Ramsey County. Kim O’Brien, RLA Executive Director, will be present at the EDA meeting to provide information related to the RLA’s most recent efforts and request continued financial support. Recommended Action: No action is necessary. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $17,500 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: Currently, the City of Maplewood contributes $10,000 per year for RLA program expenses and $7,500 towards the Winter Warmup events. Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment The vision for the Rice Street and Larpenteur Avenue Gateway Corridor is a safe, engaging, and inviting neighborhood center that includes common space, a high-quality pedestrian environment, and robust reinvestment for the diverse people of the surrounding communities to live, conduct business, and play together. Background: The cities of Maplewood, Roseville, and Saint Paul, and Ramsey County have been working collaboratively to bring attention to the Rice Street and Larpenteur Avenue neighborhoods. After completion of the multi-jurisdictional visioning plan in 2018 for the Rice Larpenteur neighborhood, the cities and the county collectively approved a cooperative funding agreement in 2019 and retained the St Paul Area Chamber of Commerce to lead the implementation phase of the vision EDA Packet Page Number 3 of 20 G1 plan.The funding agreement details that each agency partner will contribute financial support to satisfy contractual fees and expenses incurred by the Professional Services Agreement. Maplewood contributes 8 percent to the overall RLA expenses, while St Paul contributes 60 percent and Roseville contributes 32 percent. The 2025 cooperative funding agreement is attached. In addition, to support an enhanced experience at the Winter Warm Up event held in Maplewood each December, an additional $7,500 was provided to assist with expenses in 2024. The 2026 Cooperative Funding Agreement for the Rice Larpenteur Alliance will be brought to the EDA at a future date for consideration. However, this agenda item is to allow the RLA Executive Director, an opportunity to update the EDA on the work of the RLA over 2025 and discuss funding. Attachments: 1.2025 Cooperative Funding Agreement for Rice St and Larpenteur Ave Gateway Alliance Consulting Services (approved February 24, 2025) EDA Packet Page Number 4 of 20 G1, Attachment 1 EDA Packet Page Number 5 of 20 G1, Attachment 1 EDA Packet Page Number 6 of 20 G1, Attachment 1 EDA Packet Page Number 7 of 20 G1, Attachment 1 EDA Packet Page Number 8 of 20 G1, Attachment 1 EDA Packet Page Number 9 of 20 G1, Attachment 1 EDA Packet Page Number 10 of 20 G2 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date September 22, 2025 REPORT TO: Michael Sable, Executive Director REPORT FROM: Danette Parr, Assistant Executive Director PRESENTER:Danette Parr, Assistant Executive Director AGENDA ITEM: Loan Administration Agreement between the Maplewood Economic Development Authority and Community Neighborhood Housing Services dba NeighborWorks Home Partners Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: Staff is seeking authorization to execute an agreement between the Maplewood Economic Development Authority (EDA) and NeighborWorks Home Partners, an experienced partner in managing municipal home rehabilitation programs across the metro, to help administer the Maplewood Housing Rehabilitation Program. Recommended Action: Motion to authorize the execution of the loan administration agreement between the Maplewood Economic Development Authority and Community Neighborhood Housing Services doing business as Home Partners. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $525,000 Financing source(s):Adopted BudgetBudget ModificationNew Revenue Source Use of Reserves Other: $300,000 was previously approved for transfer from the EDA general fund into the newly created Maplewood Local Housing Trust Fund. Combined with a $225,000 grant from MN Housing, this provides an initial $525,000 for the revolving loan fund for the future housing rehabilitation program. Additional funds could be added later if the Economic Development Authority wishes to increase the funding. Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment The EDA supports reinvestment and the leveraging of resources to expand opportunities to create programs that encourage reinvestment and tax base growth. In addition, the City promotes opportunities for investments that increase environmental stewardship through efficiencies. EDA Packet Page Number 11 of 20 G2 Background: As the City Council and EDA have previously discussed, the City of Maplewood would benefit from a housing rehabilitation program to assist households in need of reinvestment. The program would be for households at income levels at or below 115% of the state median income and focus on the following reinvestment areas: Improve the conditions of the exterior of the home including, but not limited to roofs, siding, windows, driveways, structural retaining walls, existing fences and other components of the property; and or Improve handicap accessibility; and or Improve energy efficiency (insulation, water heater, mechanical improvements, windows, etc.) Eligible projects would not include recreational or luxury improvements. On September 8, 2025, the City Council approved the Maplewood Housing Rehabilitation Program. Jason Peterson, NeighborWorks Home Partners CEO, provided background of the program that was created in partnership with city staff and longstanding NeighborWorks Home Partners staff. The attached agreement would authorize the city to hire NeighborWorks Home Partners to assist with implementing the future housing rehabilitation program. Under the agreement, NeighborWorks Home Partners will be compensated as follows: A loan origination fee of 10 percent of the principal amount of the loan or $2,000, whichever is greater; and $15.00 per loan per month for standard loan servicing activities for all loans serviced in a given month. NeighborWorks Home Partners will invoice the EDA monthly, and EDA staff will review and approve the invoices as appropriate to ensure payment within 35 days of receipt. As EDA meetings are scheduled, ledgers of paid invoices will be supplied to the EDA. Staff recommend authorization to execute the attached loan administration agreement. If approved, it’s anticipated that the program will be advertised in upcoming communication tools and be available for Maplewood residents in early winter. Attachments: 1.Loan Administration Agreement for Maplewood Housing Rehabilitation Program EDA Packet Page Number 12 of 20 G2, Attachment 1 LOAN ADMINISTRATION AGREEMENT This Loan Administration Agreement (the “Agreement”) is entered into this_____ day of ____________, 2025 (the “Effective Date”), by and between the Maplewood Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the “EDA”), and Community Neighborhood Housing Services dba NeighborWorks Home Partners, a Minnesota non-profit corporation (the “Consultant”), each of whom is a Party and, collectively, the Parties. RECITALS A.The City of Maplewood (the “City”) has established the Maplewood Local Housing Trust Fund pursuant to Minnesota Statutes, section 462C.16 and adopted the Maplewood Housing Rehabilitation Program (the “Program”) to offer loans to qualified owners for certain home improvements. B.The EDA will administer the Program on behalf of the City. C.The Consultant has experience and expertise in administering local housing programs. D.The EDA desires to hire the Consultant to render technical, professional, and marketing assistance in connection with the Program. E.Th e Consultant is willing to provide such services on the terms and conditions set forth in this Agreement. In consideration of the foregoing recitals and the terms, conditions and mutual promises contained herein, the Parties agree as follows: 1.Scope of Services. The Consultant agrees to provide the following services (the “Services”) in connection with the Program: a)Ad minister the Program by: i)Provide information upon request to residents about the Program; ii)Receive and receipt loan applications; iii)Process, evaluate and underwrite loan applications; iv)Provide homeownership counseling or refer interested parties to HUD- certified counseling agencies; v)Close loans or coordinate loan closings of qualified applicants with a title company in accordance with the Program; vi)Oversee the draw process for the funds, including, as necessary, review draws, review the progress of the work and collect lien waivers and certificates of occupancy and may, for this purpose, rely on third-party representations and certifications; 1 MA745-4-1038202.v5 EDA Packet Page Number 13 of 20 G2, Attachment 1 vii)Provide regular reports about the number of loans closed, demographic information of borrowers, pending loans and general application activity; and viii)Provide standard loan servicing activities including payment processing, billing notices, customer service, investor reporting and payment remittance. b)Assist Maplewood residents considering housing rehabilitation, including consultations, communicating with homeowners and potential contractors, suggest alternatives for rehabilitation to homeowners, educate homeowners on the construction bid process, assist homeowners with evaluating bids and work completed and construction progress. c)Provide referral and other support for Maplewoodresidents wishing to pursue financing via the Minnesota Housing Finance Agency. d)Serve as a housing resource to Maplewood residents upon request, including provision of information and/or referrals regarding emergency assistance, housing rehabilitation and first time homebuyer options. 2.Term. This Agreement shall be in full force and effect from the Effective Date and shall continue through December 31, 2026, unless otherwise terminated as set forth herein. The Effective Date is the date this Agreement is executed by the second party to sign. This Agreement shall automatically be extended for succeeding periods of one year unless, not less than 90 days prior to the date of automatic extension, one Party gives written notice to the other Party of termination of the Agreement. 3.Compensation. For Services provided under this Agreement, the EDA shall pay to the Consultant the following: a)A loan origination fee of 10 percent of the principal amount of the loan or $2,000, whichever is greater; and b)$15.00 per loan per month for standard loan servicing activities for all loans serviced in a given month. The Consultant will invoice the EDA monthly. The EDA agrees to pay the invoice within 35 days of receipt. 4.Termination. Notwithstanding any other provision herein to the contrary, this Agreement may be terminated as follows: a)The Parties, by mutual written agreement, may terminate this Agreement at any time. Upon termination of this Agreement there shall be no other compensation 2 MA745-4-1038202.v5 EDA Packet Page Number 14 of 20 G2, Attachment 1 paid to the Consultant for work in progress or Services performed other than payments already made under the provisions of paragraph 3 herein. b)Either Party may terminate this Agreement by providing written notice to the other Party at least 90 days prior to termination. The EDA will be required to pay the Consultant all fees as noted in paragraph 3 herein during such notice period. c)The EDA may terminate this Agreement upon the breach by the Consultant of any of its material covenants contained herein, where such breach shall have continued for a period of 30 days following the receipt by the Consultant of a written notice from the EDA, specifying the alleged breach; provided, however, if the nature of a non-monetary breach is such that the Consultant cannot reasonably cure same in the 30 day period, the Consultant shall not be deemed to be in breach if it commences to cure within the 30 day period, and diligently pursues same to completion within 90 days following receipt by the Consultant of such written notice. In the event of termination by the EDA hereunder, the Consultant shall be entitled to fees due to the date the notice of breach is sent by the EDA. d)The Consultant may terminate this Agreement upon the breach by the EDA of any of its material covenants contained herein, where such breach shall have continued for a period of 30 days following the receipt by the EDAof a written notice from the Consultant, specifying the alleged breach; provided, however, if the nature of a non-monetary breach is such that the EDA cannot reasonably cure same in the 30 day period, the EDA shall not be deemed to be in breach if it commences to cure within the 30 day period, and diligently pursues same to completion within 90 days following receipt by the EDA of such written notice. In the event of termination by the Consultant hereunder, the Consultant shall be entitled to retain the entire fee under this Agreement. e)If the Consultant (i) files a voluntary petition in bankruptcy (ii) files a voluntary petition for reorganization under any bankruptcy law, statute or regulation or other similar statute or regulation, (iii) is adjudicated a bankrupt, (iv) makes an assignment for the benefit of creditors or applies for or consents to the appointment of a receiver or trustee as part of or in conjunction with a “creditor plan” with respect to any substantial part of its assets, or (v) a receiver or trustee is appointed, or an attachment or execution levied with respect to any substantial part of its assets, and said appointment is not vacated, or the attachment or execution not released, within 60 days, then this Agreement shall, effective as of such date, without notice or further action by either Party, immediately terminate. 5.Ins urance. a)During the term of this Agreement, the Consultant shall obtain and maintain workers compensation, comprehensive general liability, and automobile liability insurance. Comprehensive general liability insurance shall have an aggregate limit of $2,000,000.00. b)Upon request by the EDA, the Consultant shall provide a certificate or certificates of insurance relating to the insurance required. Such insurance secured by the Consultant shall be issued by insurance companies licensed in Minnesota. The insurance specified may be in a policy or policies of insurance, primary or excess. c)Such insurance shall be in force on the Effective Date of this Agreement and shall remain continuously in force for the duration of the Agreement. 3 MA745-4-1038202.v5 EDA Packet Page Number 15 of 20 G2, Attachment 1 6.Indemnification. a)Notwithstanding anything to the contrary in this Agreement, the EDA, its officers, agents, and employees shall not be liable or responsible in any manner to the Consultant, the Consultant’ssuccessors or assigns, the Consultant’s subcontractors, or to any other person or persons for any third party claim, demand, damage, or cause of action of any kind, nature, or character, including intentional acts, arising out of or by reason of the performance of this Agreement by the Consultant. The Consultant, and the Consultant’s successors or assigns, agree to protect, defend and save the EDA, and its officers, agents, and employees, harmless from all third party claims, demands, damages, and causes of action, to the extent caused by the negligence or wrongful acts of the Consultant, and the costs, disbursements, and expenses of defending the same, including but not limited to, attorney’s fees, consulting services, and other technical, administrative or professional assistance. b)Nothing in this Agreement shall constitute a waiver of any immunity or limitation on liability to which the EDA is entitled under Minnesota Statutes, Chapter 466, or otherwise. 7.Assignment. This Agreement shall not be assigned, sublet, or transferred, in whole or in part without the prior written approval of the EDA. 8.Conflict of Interest. The Consultant shall use best efforts to meet all professional obligations to avoid conflicts of interest and appearances of impropriety in representation of the EDA. In the event of a conflict, the Consultant, with the prior written consent of the EDA, shall arrange for suitable alternative for performance of the Services. 9.Compliance with Laws. The Consultant shall comply with all applicable Federal, State, and local laws, rules, ordinances, and regulations at all times and in the performance of the Services pursuant to this Agreement. 10.Notices. Any notices permitted or required by this Agreement shall be deemed given when personally delivered or upon deposit in the United States mail, postage fully prepaid, certified, return receipt requested, addressed to: Consultant: NeighborWorks Home Partners 533 Dale Street North St. Paul, MN 55103 EDA: Maplewood Economic Development Authority 1830 County Road B E Maplewood, MN 55109 Attn: Executive Director or such other address as either Party may provide to the other by notice given in accordance with this paragraph. 4 MA745-4-1038202.v5 EDA Packet Page Number 16 of 20 G2, Attachment 1 11. Entire Agreement. This Agreement, any attached exhibits and any addenda or amendments signed by the Parties shall constitute the entire agreement between the EDAand the Consultant and supersedes any other written or oral agreements between the EDA and the Consultant. This Agreement may only be modified in writing signed by the EDA and the Consultant. 12. Third Party Rights. The Parties to this Agreement do not intend to confer on any third party any rights under this Agreement. 13. Counterparts. This Agreement may be signed in one or more counterparts but all of which taken together shall constitute one instrument. 14. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and the Parties waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 15. Data Practices Act Compliance. Data provided to the Consultant or created by the Consultant under this Agreement shall be administered in accordance with the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended. 16. Agreement Not Exclusive. The EDAretains the right to hire other housing program consultants, in the EDA’s sole discretion. 17. Records – Availability and Retention. The Consultant agrees that the EDAor any of its duly authorized representatives at any time during the normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of the Consultant and invoice transactions relating to this Agreement. The Consultant agrees to maintain these records for a period of three years from the date of termination of this Agreement. The EDAmay, at the EDA’s expense, obtain copies of any of the Consultant’s records relevant to this Agreement. 18. Nondiscrimination. During the performance of the Services under this Agreement, the Consultant agrees that no person shall, on the grounds of race, color religion, age, sex, disability, marital status, public assistance status, criminal record, creed or national origin be excluded from full employment rights in, participation in, be denied the benefits of or be otherwise subjected to discrimination under any and all applicable federal and state laws against discrimination. \[Signature Page Follows\] 5 MA745-4-1038202.v5 EDA Packet Page Number 17 of 20 G2, Attachment 1 IN WITNESS WHEREOF, the Parties hereto have executed, orcaused to be executed by their duly authorized officials, this Agreement on the respective dates indicated below. EDA: By: Marylee Abrams, President Date: _________________, 2025. By: Michael Sable, Executive Director Date: _________________, 2025. 6 MA745-4-1038202.v5 EDA Packet Page Number 18 of 20 G2, Attachment 1 CONSULTANT: COMMUNITY NEIGHBORHOOD HOUSING SERVICES DBA NEIGHBORWORKS HOME PARTNERS By: Its: Executive Director Date: ____________________, 2025. 7 MA745-4-1038202.v5 EDA Packet Page Number 19 of 20 G2, Attachment 1 EXHIBIT A Maplewood Housing Rehabilitation Program \[to be completed\] A-1 MA745-4-1038202.v5 EDA Packet Page Number 20 of 20