HRA BOARD AGENDA Meeting: Thursday, November 12, 2020 Place: Buffalo City Center Time: 3:00 PM
1. CALL TO ORDER
2. AGENDA ADDITIONS OR DELETIONS
3. APPROVAL OF OCTOBER 8 MINUTES
4. APPROVAL OF CLAIMS
5. OLD BUSINESS A. Small Cities Development Program Grant Application
6. NEW BUSINESS A. Post Issuance Debt Compliance Policy
7. STAFF UPDATES
8. ADJOURN
HRA MINUTES October 8, 2020
CALL TO ORDER Pursuant to due call and notice thereof, Chairperson Nauman called the HRA regular meeting to order at 3:03 PM in the Pulaski Conference Room of the City Center at 212 Central Avenue. Present were Jill Nauman, John Siffert, and Bryan Brengman. Absent were Michael Anderson and Dustin Grage. Also in attendance were Executive Director Laureen Bodin, Assistant Administrator Alison Matthees, Community & Economic Development Director Jennifer Nash, Finance Manager Ashley Hansen, Tina Anderson, Carlo Cuesta and Julie Sand with Creation in Common (off site), Brad Elo and Erin Walsh with the Arts Center Task Force (off site).
AGENDA ADDITIONS OR DELETIONS- Executive Director Bodin noted one addition to the agenda around potential redevelopment in the downtown area which was added to the end of the agenda.
OLD BUSINESS Creations in Common Feasibility Report for Community Arts Study Carlo Cuesto and Julie Sand, from Creations in Common presented on the recently completed feasibility study considering an Arts Center within the Buffalo Cinema.
Cuesto discussed two phases of scope of work. Phase one included community interviews, benchmarking with other arts centers, developing specific scenarios, formulating Arts Center Task Force, developed renovation and three-year operating projections, and creation of a business plan. Sand presented the results of approximately 20 phone interviews which contained a common message around the creativity and arts focus that exists within the community of Buffalo and supporting the arts in the downtown area. Sand stated there was opportunity to draw people from throughout the region (approximately 5,000-6,000 visitors per year).
Cuesto provided an Arts Center business plan with three stages – formation, launch, and sustain – which intends to be a collaboration between stakeholders and involves developing a governing body and likely an independent 501c3. Cuesto stated that current economic limitations and the changing goals and plans of the current Buffalo Cinema business ownerDRAFT mean use of that space at this time is unlikely but that sustaining partnerships with other community groups, like the Friends of the Community Center to identify additional opportunities.
Elo discussed a go-forward plan to utilize the existing groups into two focuses – one being programming and the other being furthering of the business plan. Walsh stated the Arts Center Task Force members will be combining with the Friends of the Community Center to share goals and work on the two areas of focus.
October 8, 2020 Buffalo HRA Minutes
Nauman asked what the funding source would be. Bodin stated the City Council has directed that any large-scale project would be referendum driven. Siffert stated the goal of expanding to involve many groups including parks and private sector groups to keep making progress and increase support in case a referendum is forthcoming.
Siffert questioned what the next steps would be. Cuesta stated next steps include continuing to advance the business plan and develop programming to ensure sustainability. Nauman questioned what the timeline is. Cuesta outlined a 12-18 month timeline to work on the programming and formation of non-profit entity. This will include revisiting the Buffalo Cinema within 6 months and beginning to look at other opportunities to partner with the community center.
No motion or action required.
APPROVAL OF AUGUST 13 MINUTES Upon motion by Siffert, motion seconded by Nauman to approve of the September 10th minutes.
VOTE Grage Brengman Nauman Siffert Anderson Aye X X X Nay Abstain Absent X X Motion passed.
APPROVAL OF CLAIMS Upon motion by Brengman, motion seconded by Siffert to approve of the following claims.
DRAFT
Buffalo HRA Minutes October 8, 2020
VOTE Grage Brengman Nauman Siffert Anderson Aye X X X Nay Abstain Absent X X Motion passed.
OLD BUSINESS CARES Small Business Grant Awards Assistant Administrator Matthees provided an update on the CARES Small Business Grants. Matthees provided a list of additional grantees – 11 additional in round two to add to the 43 business granted in round one bringing the total grants issued to small businesses to $513,832.
Round 2 - October Business Legal Name CARES $ Granted
Custom Cut and Color $ 10,000.00
Youth Investment Foundation $ 10,000.00
B-Z's Oak Grove Dairy $ 10,000.00
DBK of Roseau Inc $ 10,000.00
Deitering McClellan and Rassat Inc $ 10,000.00
Dr. Thomas Hanson DDS AA $ 10,000.00
Gym-Nation and The Dance Academy $ 10,000.00
Olson Chiropractic Clinic, Inc $ 10,000.00
Rotary Club of Buffalo Foundation $ 2,604.63
Secondhand Rose $ 10,000.00
Wright County JourDRAFTnal-Press, Inc. $ 10,000.00
CARES Grants - Round 2 $ 102,605
Matthees stated that on October 5th, the City Council allocated an additional $13,832 to the original pool of funds. Matthees also provided the list of 14 applicants which were not awarded funds as well as the criteria utilized to review businesses.
October 8, 2020 Buffalo HRA Minutes
No Grants Funds Issued Business Operating Name Reasoning
Bankers Advertising Company 2nd business for owner.
Buffalo Cinema Closed prior to COVID-19.
CB Machining and Engineering > $200,000 in other funding.
Cottens NAPA > $200,000 in other funding.
Grindstone Construction Services Inc. > $200,000 in other funding.
Kids Haven Child Care and Preschool Other funding; did not close.
Lil Explorers Buffalo Inc Other funding; did not close.
On Site Lighting & Survey LLC > $200,000 in other funding.
On Site Lighting Products Combined with OSLS.
OPS Assembly Inc < 10% revenue loss.
Puzzles LLC Permanently Closed.
United Faith Community UCC Inelligible per City Attorney.
Wireless Zone of Buffalo > $200,000 monthly revenue.
Zion Lutheran Church of Buffalo < 10% revenue loss.
The final round of grants will be communicated to businesses and issued in mid- October.
No motion required. The HRA already provided the authority needed for City staff to execute the grants. DRAFT NEW BUSINESS Call for the redemption of the remaining Public Facility Lease Revenue Bonds, Series 2011A and terminate the Civic Center lease agreement with the City of Buffalo. Executive Director Bodin reviewed refunding two bonds used to finance civic center improvements and stated that action taken today is contingent on the final sale of the bonds. The transaction includes termination of the lease and calling the 2011A bonds. Current rates are 3.85-4.60, relatively higher, and the transaction would reduce interest rates to an estimated to 1-2% for a savings of $100,000 or more. Buffalo HRA Minutes October 8, 2020
Siffert asked about the current status of the Civic Center. Hansen stated city has lease agreement, and the City pays rent expense to HRA for the bonds. The City will issue abatement bond to pay off lease and then calling HRA bond.
Siffert asked about refunding others to reduce rates. Hansen said the HRA cannot call the downtown common bonds until 2022, so the process to refund wouldn’t start until next summer.
Upon motion by Siffert, motion seconded by Nauman to approve the call for the redemption of the remaining Public Facility Lease Revenue Bonds, Series 2011A and terminate the Civic Center lease agreement with the City of Buffalo.
VOTE Grage Brengman Nauman Siffert Anderson Aye X X X Nay Abstain Absent X X Motion passed.
STAFF UPDATES Wayfinding Signage Executive Director Bodin updated the Board regarding Bolton and Menk plan to meet with MNDOT for monument sign (large sign in the right of way). MNDOT has said no, so the City is looking to obtain remnant parcel which will continue through negotiation with MNDOT.
In the meantime, the City would like to place directional signage downtown. Simple signs to direct to public facilities, parking, parks, and buildings for wayfinding have small estimate. Bodin stated the cost is $200 per sign along with installation time (which would be done internally by the City’s Streets Maintenance Department).
Siffert asked how many signs were being considered. Bodin said we just got the price yesterday, once authorized, staff would identify necessary placement and number. No more than 12-15, so loDRAFTw to moderate price impact.
No motion required.
AGENDA ADDITIONS Bodin provide background about a discussion with Larson builders who are looking to grow their company, either build up or move to a different location. Larson wanted the City and HRA to know that if they were interested in acquiring the property in part or in whole, he would be open to negotiations. City has talked about redevelopment of the October 8, 2020 Buffalo HRA Minutes parcel, but soils may not be viable for construction due to Willow Creek. Bodin requested allowing City to keep negotiating with the owner and asked the HRA to approve funding for soil borings to determine if building on the site is feasible. If the property could be acquired for parking or public uses, it would be nice.
Brengman asked what potential ideas for building there would be. Bodin mentioned Economic Development staff was in contact with the Post Office to consider relocating them there. Bodin also mentioned a preference for moving parking away from the lake.
Brengman asked what was happening with the NAPA building. Bodin mentioned the lease had ended (Havenwood leased for construction) and the building may be for sale but there is no action or communication with the City yet. Bodin shared a vision for two story parking since the site is on a hill. Last time for sale, price was too high to consider so it will likely sit for a while.
Bodin requested funding ($5,000-$10,000) for soil borings. Siffert requested we asked Larson building to split the cost since he would get the benefits. Siffert stated he does not think that property is ideal for City ownership. Brengman requested the City continue discussion with Postmaster on feasibility and discuss with Larson building to identify how serious they are about selling before funding soil borings.
No motion was made at this time.
General Updates Bodin introduced Tina, the meeting guest, who currently works in the OutDo Work building who was interested in seeing what the HRA board does and considering serving on the board.
Nash updated the Board on the small cities development program. The program is a block grant to perform funding for exterior, code related projects to maintain the older buildings (70% forgivable loan in residential; 80% in commercial) paired with owner funding. There has been good response and a high level of interest in both residential and commercial targeted areas.
Bodin mentioned Alo apartments are fully leased and intend to open soon which demonstrates the needDRAFT for that type of housing in the City.
Buffalo HRA Minutes October 8, 2020
ADJOURN Upon motion by Brengman, seconded by Siffert, Chair Nauman adjourned the meeting at 4:06 PM.
VOTE Grage Brengman Nauman Siffert Anderson Aye X X X Nay Abstain Absent X X Motion passed.
Chairperson
Executive Director
DRAFT
Return to Agenda 10-09-2020 1:22 PM A/P PAYMENT REGISTER PAGE: 1 PACKET: 06536 HRA CARES GRANTS 10.09.20 VENDOR SET: 02 VENDOR SEQUENCE
VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING DISC DT BALANCE DISCOUNT ------
02-000067 BUFFALO AMERICAN LEGION POS
I CARES SMB GRANT BUFFALO AMERICAN LEGION POS HRA R 9/24/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 BUFFALO AMERICAN LEGION POST 2
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-1B0008 BUFFALO AREA CHAMBER OF COM
I CARES SMB GRANT BUFFALO AREA CHAMBER OF COM HRA R 10/19/2020 7,000.00 7,000.00CR G/L ACCOUNT 7,000.00 551 46324-4600 CARES ACT EXPENDITURES 7,000.00 BUFFALO AREA CHAMBER OF COMMER
REG. CHECK 7,000.00 7,000.00CR 0.00 7,000.00 0.00 ------
02-000084 IMAGINATION PLAY PARKS
I CARES SMB GRANT IMAGINATION PLAY PARKS HRA R 9/23/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 IMAGINATION PLAY PARKS
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000086 JLC FOODS OF ROCHESTER
I CARES SMB GRANT JLC FOODS OF ROCHESTER HRA R 10/09/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 JLC FOODS OF ROCHESTER
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000085 LOVE IN THE NAME OF CHRIST
I CARES SMB GRANTS LOVE IN THE NAME OF CHRIST HRA R 9/18/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 LOVE IN THE NAME OF CHRIST - B
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------10-09-2020 1:22 PM A/P PAYMENT REGISTER PAGE: 2 PACKET: 06536 HRA CARES GRANTS 10.09.20 VENDOR SET: 02 VENDOR SEQUENCE
VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING DISC DT BALANCE DISCOUNT ------
02-000087 WELSTORES OF MN
I CARES SMB GRANT WELSTORES OF MN HRA R 9/25/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 WELSTORES OF MN
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------10-09-2020 1:22 PM A/P PAYMENT REGISTER PAGE: 3 PACKET: 06536 HRA CARES GRANTS 10.09.20 VENDOR SET: 02
======R E P O R T T O T A L S ======
F U N D D I S T R I B U T I O N
FUND NO# FUND NAME AMOUNT ------551 H.R.A. GENERAL FUND 57,000.00CR
** TOTALS ** 57,000.00CR ======
---- TYPE OF CHECK TOTALS ----
GROSS PAYMENT OUTSTANDING NUMBER BALANCE DISCOUNT
HAND CHECKS 0.00 0.00 0.00 0.00 0.00
DRAFTS 0.00 0.00 0.00 0.00 0.00
REG-CHECKS 57,000.00 57,000.00CR 0.00 57,000.00 0.00
EFT 0.00 0.00 0.00 0.00 0.00
NON-CHECKS 0.00 0.00 0.00 0.00 0.00
ALL CHECKS 57,000.00 57,000.00CR 0.00 57,000.00 0.00
TOTAL CHECKS TO PRINT: 6 ------
ERRORS: 0 WARNINGS: 0 10-13-2020 10:26 AM A/P PAYMENT REGISTER PAGE: 1 PACKET: 06539 HRA 10.13.20 VENDOR SET: 02 VENDOR SEQUENCE
VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING DISC DT BALANCE DISCOUNT ------
02-1B0005 BOLTON & MENK INC
I 256960 BOLTON & MENK INC HRA R 10/18/2020 260.00 260.00CR G/L ACCOUNT 260.00 551 46324-3030 ENGINEERING FEES 260.00 DTWN WAYFINDING SIGNAGE 2019-3
REG. CHECK 260.00 260.00CR 0.00 260.00 0.00 ------
02-1E0005 EHLERS & ASSOCIATES INC.
I 84506 EHLERS & ASSOCIATES INC. HRA R 10/09/2020 250.00 250.00CR G/L ACCOUNT 250.00 551 46324-3020 PROFESSIONAL SERVICES 250.00 2019 TIF REPORTING
REG. CHECK 250.00 250.00CR 0.00 250.00 0.00 ------
02-1L0011 LHB, INC.
I 200067.00-7 LHB, INC. HRA R 9/08/2020 1,485.00 1,485.00CR G/L ACCOUNT 1,485.00 551 46324-3020 PROFESSIONAL SERVICES 1,485.00 PROFESSIONAL FEES
REG. CHECK 1,485.00 1,485.00CR 0.00 1,485.00 0.00 ------10-13-2020 10:26 AM A/P PAYMENT REGISTER PAGE: 2 PACKET: 06539 HRA 10.13.20 VENDOR SET: 02
======R E P O R T T O T A L S ======
F U N D D I S T R I B U T I O N
FUND NO# FUND NAME AMOUNT ------551 H.R.A. GENERAL FUND 1,995.00CR
** TOTALS ** 1,995.00CR ======
---- TYPE OF CHECK TOTALS ----
GROSS PAYMENT OUTSTANDING NUMBER BALANCE DISCOUNT
HAND CHECKS 0.00 0.00 0.00 0.00 0.00
DRAFTS 0.00 0.00 0.00 0.00 0.00
REG-CHECKS 1,995.00 1,995.00CR 0.00 1,995.00 0.00
EFT 0.00 0.00 0.00 0.00 0.00
NON-CHECKS 0.00 0.00 0.00 0.00 0.00
ALL CHECKS 1,995.00 1,995.00CR 0.00 1,995.00 0.00
TOTAL CHECKS TO PRINT: 3 ------
ERRORS: 0 WARNINGS: 0 10-27-2020 3:42 PM A/P PAYMENT REGISTER PAGE: 1 PACKET: 06566 Regular Payments VENDOR SET: 02 VENDOR SEQUENCE
VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING DISC DT BALANCE DISCOUNT ------
02-000088 BUFFALO ROTARY CLUB
I CARES SMB GRANT BUFFALO ROTARY CLUB HRA R 10/27/2020 2,604.63 2,604.63CR G/L ACCOUNT 2,604.63 551 46324-4600 CARES ACT EXPENDITURES 2,604.63 BUFFALO ROTARY CLUB
REG. CHECK 2,604.63 2,604.63CR 0.00 2,604.63 0.00 ------
02-000089 BZ'S OAK GROVE DAIRY
I CARES SMB GRANT BZ'S OAK GROVE DAIRY HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 BZ'S OAK GROVE DAIRY
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000090 CUSTOM CUT & COLOR
I CARES SMB GRANT CUSTOM CUT & COLOR HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 CUSTOM CUT & COLOR
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000091 DAIRY QUEEN
I CARES SMB GRANT DAIRY QUEEN HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 DAIRY QUEEN
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000092 DEITERING MCCLELLAN & RASSA
I CARES SMB GRANT DEITERING MCCLELLAN & RASSA HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 DEITERING MCCLELLAN & RASSAT I
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------10-27-2020 3:42 PM A/P PAYMENT REGISTER PAGE: 2 PACKET: 06566 Regular Payments VENDOR SET: 02 VENDOR SEQUENCE
VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING DISC DT BALANCE DISCOUNT ------
02-000093 GYM NATION
I CARES SMB GRANT GYM NATION HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 GYM NATION
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000094 HANSON DENTAL
I CARES SMB GRANT HANSON DENTAL HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 HANSON DENTAL
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000095 OLSON CHIROPRACTIC CLINIC
I CARES SMB GRANT OLSON CHIROPRACTIC CLINIC HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 OLSON CHIROPRACTIC CLINIC
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-000096 TIMBER BAY
I CARES SMB GRANT TIMBER BAY HRA R 10/27/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 TIMBER BAY
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------
02-1W0001 WRIGHT COUNTRY JOURNAL PRES
I CARES SMB GRANT WRIGHT COUNTRY JOURNAL PRES HRA R 11/26/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 WRIGHT COUNTRY JOURNAL PRESS I
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------10-27-2020 3:42 PM A/P PAYMENT REGISTER PAGE: 3 PACKET: 06566 Regular Payments VENDOR SET: 02
======R E P O R T T O T A L S ======
F U N D D I S T R I B U T I O N
FUND NO# FUND NAME AMOUNT ------551 H.R.A. GENERAL FUND 92,604.63CR
** TOTALS ** 92,604.63CR ======
---- TYPE OF CHECK TOTALS ----
GROSS PAYMENT OUTSTANDING NUMBER BALANCE DISCOUNT
HAND CHECKS 0.00 0.00 0.00 0.00 0.00
DRAFTS 0.00 0.00 0.00 0.00 0.00
REG-CHECKS 92,604.63 92,604.63CR 0.00 92,604.63 0.00
EFT 0.00 0.00 0.00 0.00 0.00
NON-CHECKS 0.00 0.00 0.00 0.00 0.00
ALL CHECKS 92,604.63 92,604.63CR 0.00 92,604.63 0.00
TOTAL CHECKS TO PRINT: 10 ------
ERRORS: 0 WARNINGS: 0 11-05-2020 11:56 AM A/P PAYMENT REGISTER PAGE: 1 PACKET: 06581 HRA CARES GRANT 11.05.20 VENDOR SET: 02 VENDOR SEQUENCE
VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING DISC DT BALANCE DISCOUNT ------
02-000097 SECONDHAND ROSE
I CARES SMB GRANT SECONDHAND ROSE HRA R 11/03/2020 10,000.00 10,000.00CR G/L ACCOUNT 10,000.00 551 46324-4600 CARES ACT EXPENDITURES 10,000.00 SECONDHAND ROSE
REG. CHECK 10,000.00 10,000.00CR 0.00 10,000.00 0.00 ------11-05-2020 11:56 AM A/P PAYMENT REGISTER PAGE: 2 PACKET: 06581 HRA CARES GRANT 11.05.20 VENDOR SET: 02
======R E P O R T T O T A L S ======
F U N D D I S T R I B U T I O N
FUND NO# FUND NAME AMOUNT ------551 H.R.A. GENERAL FUND 10,000.00CR
** TOTALS ** 10,000.00CR ======
---- TYPE OF CHECK TOTALS ----
GROSS PAYMENT OUTSTANDING NUMBER BALANCE DISCOUNT
HAND CHECKS 0.00 0.00 0.00 0.00 0.00
DRAFTS 0.00 0.00 0.00 0.00 0.00
REG-CHECKS 10,000.00 10,000.00CR 0.00 10,000.00 0.00
EFT 0.00 0.00 0.00 0.00 0.00
NON-CHECKS 0.00 0.00 0.00 0.00 0.00
ALL CHECKS 10,000.00 10,000.00CR 0.00 10,000.00 0.00
TOTAL CHECKS TO PRINT: 1 ------
ERRORS: 0 WARNINGS: 0
Return to Agenda
HRA AGENDA REPORT ITEM #5A
MEETING DATE: November 12, 2020 PREPARED BY: Community & Economic Development Director Jennifer Nash PRESENTED BY: Community & Economic Development Director Jennifer Nash AGENDA ITEM: Small Cities Development Program Grant Application Update
BACKGROUND SUMMARY: The HRA authorized City staff in late 2019 to begin working with Central Minnesota Housing Partnership (CMHP) on an application for rehabilitation grant funding through the Small Cities Development Program (SCDP). SCDP is a competitive grant process through the Minnesota Department of Employment and Economic Development (DEED) that has an annual schedule for pre-application, application and awarding of funds received through a federal program allocation. In summer 2020, CMHP in consultation with City staff defined neighborhoods for both commercial and residential owner-occupied aspects of the comprehensive application being prepared utilizing a “windshield survey” tour of existing conditions that meet program criteria. A map is attached showing the areas included with the application. Surveys were mailed to property owners in the NW residential neighborhood and the commercial downtown asking for respondents to let us know of their interest in the program, which is one of the items included for preliminary application.
The pre-application phase for SCDP is due on November 17th and is being finalized for submittal to DEED. Messina Owings of CMHP will be present at the HRA meeting via Zoom attendance to discuss with the HRA the impressive reply to the survey request demonstrating interest in the program. She will also be available to answer any questions from HRA members, and to discuss with HRA the leverage funding aspect of the application where a budget should be defined for a small matching program to help the application continue to move forward to the full application phase.
RECOMMENDATION: Staff recommends HRA receive presentation from CMHP staff regarding pre-application submittals being prepared for SCDP and discuss a budget allocation program and amount that will be set aside for matching if the grant is awarded.
ATTACHMENT: Map of SCDP Application Commercial and Residential Neighborhoods Return to Agenda
HRA AGENDA REPORT ITEM #6A
MEETING DATE: November 12, 2020 PREPARED BY: Alison Matthees, Assistant City Administrator PRESENTED BY: Alison Matthees, Assistant City Administrator AGENDA ITEM: Policy Update – Post-Issuance Debt Compliance Policy
BACKGROUND SUMMARY: Policy and procedures relating to post issuance compliance were last adopted or approved on December 3, 2012 for the City and December 13, 2013 for the HRA. The documents were prepared by Ehlers. Since this date, significant changes have taken place which has led us to revise our policy and procedure document templates. Numerous Industry experts have suggested updating policies and procedure documents to ensure Issuers are ready to comply with their disclosure obligations, which includes new rules detailed below. Updating the documents provides underwriters and current security holders assurance that the City is prepared to comply with your post issuance obligations.
Updated Areas of Focus Due to increased underwriter scrutiny (the Municipalities Continuing Disclosure Cooperation initiative "MCDC" in March of 2014 and afterward) regarding disclosure practices we are now including several procedural items in our policy templates that are intended to assist the obligated person with how to monitor compliance with each unique Continuing Disclosure Agreement.
Also, effective February 27, 2019, the Securities and Exchange Commission (SEC) required amendments to Rule 15c2-12 of the Securities Exchange Act (the "Rule") to include two additional reportable events, increasing the number of required event notices to 16. The two additional reportable events are as follows: - Incurrence of a financial obligation of the issuer or obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the issuer or obligated person, any of which affect security holders, if material; and, - Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties.
RECOMMENDATION: Staff recommends HRA adopt the updated policy and approve the related resolution.
ATTACHMENTS: 1. Post-Issuance Debt Compliance Policy 2. Post-Issuance Debt Compliance Resolution Housing and Redevelopment Authority of the City of Buffalo, Minnesota Post-Issuance Debt Compliance Policy
The Board of Commissioners (the “Board”) of the Housing and Redevelopment Authority of the City of Buffalo, Minnesota (the “HRA”) has chosen, by policy, to take steps to help ensure that all obligations will be in compliance with all applicable federal regulations. This policy may be amended, as necessary, in the future.
IRS Background The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code (the “Code”) and regulations promulgated thereunder (“Treasury Regulations”) governing certain obligations (for example: tax-exempt obligations, Build America Bonds, Recovery Zone Development Bonds and various “Tax Credit” Bonds). The IRS encourages issuers and beneficiaries of these obligations to adopt and implement a post-issuance debt compliance policy and procedures to safeguard against post-issuance violations.
SEC Background The Securities and Exchange Commission (SEC) is responsible for enforcing compliance with the SEC Rule 15c2-12 (the “Rule”). Governments or governmental entities issuing obligations generally have a requirement to meet specific continuing disclosure standards set forth in continuing disclosure agreements (“CDA”). Unless the issuer, obligated person, or a specific obligation is exempt from compliance with CDAs, these agreements are entered into at the time of obligation issuance to enable underwriter(s) to comply with the Rule. The Rule sets forth certain obligations of (i) underwriters to receive, review and disseminate official statements prepared by issuers of most primary offerings of municipal securities, (ii) underwriters to obtain CDAs from issuers and other obligated persons to provide material event disclosure and annual financial information on a continuing basis, and (iii) broker-dealers to have access to such continuing disclosure in order to make recommendations of municipal securities transactions in the secondary market. The SEC encourages issuers and beneficiaries adopt and implement a post-issuance debt compliance policy and procedures to safeguard against Rule violations.
When obligations are issued, the CDA commits the issuer or obligated person to provide certain annual financial information and material event notices to the public. Issuers and other obligated persons may also choose to provide periodic, voluntary financial information and filings to investors in addition to fulfilling the specific responsibilities delineated in their CDA. It is important to note that issuers and other obligated persons should not give any one investor certain information that is not readily available to all market participants by disseminating information to the marketplace, at large. Issuers and other obligated persons should be aware that any disclosure activities determined to be “communicating to the market” can be subject to regulatory scrutiny.
Post-Issuance Debt Compliance Policy Objective The HRA desires to monitor these obligations to ensure compliance with the IRS Code, Treasury Regulations and the SEC Rule. To help ensure compliance, the HRA has developed the following policy (the “Post-Issuance Debt Compliance Policy”). The Post- Issuance Debt Compliance Policy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to compliance.
Post-Issuance Debt Compliance Policy The Finance Manager of the City is designated as the HRA’s agent who is responsible for post-issuance compliance of these obligations.
The Finance Manager shall assemble all relevant documentation, records and activities required to ensure post-issuance debt compliance as further detailed in corresponding procedures (the “Post-Issuance Debt Compliance Procedures”). At a minimum, the Post- Issuance Debt Compliance Procedures for each qualifying obligation will address the following:
1. General Post-Issuance Compliance 2. General Recordkeeping 3. Arbitrage Yield Restriction and Rebate Recordkeeping 4. Expenditure and Asset Documentation to be Assembled and Retained 5. Miscellaneous Documentation to be Assembled and Retained 6. Additional Undertakings and Activities that Support Sections 1 through 5 above 7. Continuing Disclosure Obligations 8. Compliance with Future Requirements
The Finance Manager shall apply the Post-Issuance Debt Compliance Procedures to each qualifying obligation and maintain a record of the results. Further, the Finance Manager will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis.
The Finance Manager or any other individuals responsible for assisting the Finance Manager in maintaining records needed to ensure post-issuance debt compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance.
Most of the provisions of this Post-Issuance Debt Compliance Policy are not applicable to taxable governmental obligations unless there is a reasonable possibility that the HRA may refund their taxable governmental obligation, in whole or in part, with the proceeds of a tax-exempt governmental obligation. If this refunding possibility exists, then the Finance Manager shall treat the taxable governmental obligation as if such issue were an issue of tax-exempt governmental obligations and comply with the requirements of this Post- Issuance Debt Compliance Policy.
Private Activity Bonds The HRA may issue tax-exempt obligations that are “private activity” bonds because either (1) the bonds finance a facility that is owned by the HRA but used by one or more qualified 501(c)(3) organizations, or (2) the bonds are so-called “conduit bonds”, where the proceeds are loaned to a qualified 501(c)(3) organization or another private entity that finances activities eligible for tax-exempt financing under federal law (such as certain manufacturing projects and certain affordable housing projects). Prior to the issuance of either of these types of bonds, the Finance Manager shall take steps necessary to ensure that such obligations will remain in compliance with the requirements of this Post-Issuance Debt Compliance Policy.
In a case where compliance activities are reasonably within the control of a private party (i.e., a 501(c)(3) organization or conduit borrower), the Finance Manager may determine that all or some portion of compliance responsibilities described in this Post-Issuance Debt Compliance Policy shall be assigned to the relevant party. In the case of conduit bonds, the conduit borrower will be assigned all compliance responsibilities other than those required to be undertaken by the HRA under federal law. In a case where the Finance Manager is concerned about the compliance ability of a private party, the Finance Manager may require that a trustee or other independent third party be retained to assist with record keeping for the obligation and/or that the trustee or such third party be responsible for all or some portion of the compliance responsibilities.
The Finance Manager is additionally authorized to seek the advice, as necessary, of bond counsel and/or its financial advisor to ensure the HRA is in compliance with this Post- Issuance Debt Compliance Policy.
Adopted this date______by the Housing and Redevelopment Authority of the City of Buffalo, Minnesota
212 Central Avenue Buffalo, MN 55313
RESOLUTION 2020-1
Motioned by: Seconded by:
Adopting Post-Issuance Debt Compliance Policy for Tax-exempt and Tax- advantaged Governmental Bonds
WHEREAS, the Housing and Redevelopment Authority of the City of Buffalo, Minnesota (the “HRA”) from time to time will issue tax-exempt and tax-advantaged governmental bonds; and
WHEREAS, under the Internal Revenue Code of 1986, as amended and related regulations (the “Code”), and Securities and Exchange Commission (the “SEC”) the HRA is required to take certain actions after bond issuance to ensure that interest on those bonds remains in compliance with the Code and SEC; and
WHEREAS, the HRA has determined to adopt a policy regarding how the HRA will carry out its compliance responsibilities via written procedures, and to that end, has caused to be prepared documents titled Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures; and
WHEREAS, The Board of Commissioners (the “Board”) of the HRA has reviewed the Post-Issuance Debt Compliance Policy in connection with the Post-Issuance Debt Compliance Procedures and has determined that it is in the best interest of the HRA to adopt the Policy.
NOW THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BUFFALO, MINNESOTA; the Board approves the Policy as shown in the form attached; and
BE IT FURTHER RESOLVED; the HRA staff is authorized to take all actions necessary to carry out the Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures.
Passed and adopted by the Buffalo Housing and Redevelopment Authority this 12th day
of November 2020.
VOTE Grage Brengman Nauman Siffert Anderson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐
______ATTEST: Chairperson Executive Director
HRA Resolution 2020-1 Return to Agenda November 12, 2020