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HomeMy WebLinkAboutAug 18, 2020 EDA Packetwww. Cityofstj oseph.com CITY OF ST. JOSEPH St. Joseph Economic Development Authority August 18, 2020 12:00 PM Administrator 1. 12:00 PM Call to order Kris Ambuehl 2. Public Comments 3. Approve Agenda Mayor 4. Consent Agenda a. Minutes — Requested Action: Approve the minutes of June 16, 2020. Rick Schultz b. Financial Report — Requested Action: Accept the July 2020 Financial Reports as presented. 5. Revolving Loan Fund Request — Minnesota Street Market Councilors 6. Business/Development Updates Anne Buckvold 7. Board Member Announcements Troy Goracke Bob Loso 8. Adjourn Brian Theisen 75 Callaway Street East • Saint Joseph, Minnesota 56374 Email cityoffices@cityofst oseph.com Phone 320.363.7201 Fax 320.363.0342 June 16, 2020 Page 1 of 2 Pursuant to due call and notice thereof, the St. Joseph Economic Development Authority met on Tuesday, June 16, 2020 at 12:00 PM at the St. Joseph Government Center. Members Present: Board Members Rick Schultz, Doug Danielson Troy Goracke, Larry Hosch, Dale Wick City Administrator Kris Ambuehl Members Absent: None City Representatives Present: Community Development Director Therese Haffner, Finance Director Lori Bartlett, Planning Intern Josh Storms Schultz called the St. Joseph Economic Development Authority meeting to order at 12:00 PM Agenda Approval: Haffner added item 8a Sale of Property, Outlot C of Liberty Pointe. Wick made a motion to approve the agenda as amended, seconded by Goracke and passed unanimously by those present. Consent Agenda: Goracke made a motion to approve the consent agenda as follows; seconded by Danielson and passed unanimously by those present. a. Minutes - Approved the minutes of May 19, 2020. b. April Financial Report - Accepted the May 2020 Financial Report as presented. Revolvinq Loan Fund Request — Jupiter Moon Ice Cream: Jupiter Moon Ice Cream Owner David Boyer presented background on his current business and future operation of the business to be located in Mill Stream Shops and Lofts in downtown St. Joseph. Bartlett provided an overview of the loan request for $10,000. The Finance Committee reviewed the request and recommended approving a $10,000 loan for a term of five years at a three percent interest rate. Wick asked when the shop would be open. Boyer said likely in August. Goracke made a motion to approve a $10,000 loan for a term of five years at a three percent interest rate, seconded by Wick and passed unanimously by those present. Outdoor Summer Events: Ambuehl presented a proposed plan for five outdoor summer events to be held on Thursdays starting in July. The proposed plan would be to block certain streets and blocks. CVB Director Mary Bruno has reached out to businesses on interest and participation. There would be music, events for kids, and food for sale by businesses. The plan proposes fireworks on July 3rd. Ambuehl shared that Little Falls did this last year and this would emulate that. Ambuehl requested consideration for approval and funding from the EDA for the outdoor summer events and fireworks. Danielson shared that he was in charge of fireworks for Joetown and offered to reach out to his contact. There was discussion on the size of the events. Ambuehl responded that streets would be closed off to manage the number and CDC Guidelines would be followed. Schultz recommended $10,000 total. Ambuehl suggested having a separate fund for the fireworks recommending Mary Bruno contact businesses to sponsor. Danielson said he would also gather information on fireworks, including sponsorship and forward to Ambuehl. Schultz made a motion to approve $2,000 per week for $10,000 total for outdoor summer events, excluding the fireworks, seconded by Wick and passed unanimously by those present. Goracke made a motion to approve $3,500 for fireworks, seconded by Wick and passed unanimously by those present. 2021 Budget: Bartlett presented the proposed 2021 EDA budget and asked for input. Schultz suggested maintaining budget. Wick made a motion to approve the proposed 2021 EDA Budget as presented, seconded by Danielson and passed unanimously by those present. June 16, 2020 Page 2of2 Development Updates: a. Sale of Property, Outlot C, Liberty Pointe Haffner shared that the EDA had previously approved the sale of the property to St. Joseph Vista/Sand Companies for $25,000. The Title Company has requested a formal resolution approving the sale. Haffner presented the resolution approving the sale. Wick made a motion to approve Resolution No. 2020-01 Approving the Conveyance of Certain Property Owned by the City of St. Joseph Economic Development Authority and Ratifying Approval of the Purchase to St. Joseph Vista, LLC, seconded by Hosch and passed unanimously by those present. b. Other Development: Haffner provided the following update: The site plan and building permit review is nearly completed for Vista Apartments. Estimated timeline to start construction is June. Adjourn: Schultz adjourned the at 12:52 PM. Therese Haffner Community Development Director - 1, —2, I.JL& CITY OF ST. JOSEPH MEETING DATE AGENDA ITEM: SUBMITTED BY: August 18, 2020 July Finance Reports Finance EDA Agenda Item 4b BOARD/COMMISSION/COMMITTEE/COUNCIL RECOMMENDATION: N/A PREVIOUS EDA ACTION: None BACKGROUND INFORMATION: Enclosed you will find the reconciled financial reports through July 31, 2020. The ending undesignated balance shows a surplus of $46,248. The designated project balance is $22,235. The capital designated balance includes 2020 capital budget balance of $44,100. Without the unspent capital budget, the net position is a surplus of $65,755. The EDA is mainly funded by tax proceeds. The first half tax proceeds were received in June and July. The final settlement is due in December. The other funds reported include the TIF funds, Lodging Tax, DEED CDAP Grant reimbursement and the Revolving Loan fund. There are two revolving loans to Krewe and Flour to Flower Bakery and Jupiter Moon Ice Cream. The Minnesota Street Market applied for a loan in July and is a separate agenda action for the Board. The current revolving loan fund balance is $220,641 at July 31't', including $189,554 reserved balance from the EDA fund to be used for future economic development; $31,087 is available from the State's RLF fund for future loan requests. The City Council allowed Krewe to delay their RLF loan payments for three months due to the COVID-19 emergency declaration. Jupiter Moon Ice Cream received their loan proceeds on July 9t1i. Their first payment is due August 15'. The Lodging Tax fund has a balance of $27,930 on July 31'. A summary of their activity is enclosed in this report. Staff will monitor collections. The lodging tax revenue in the 2nd quarter decreased with the pandemic. With the State allowing sales tax collections to be delayed, lodging taxes are also delayed. The 2018 Housing Rehab grant administered by Central MN Housing Partnership has a balance of $78,378. Per Ed Zimny at the Partnership, there is an interested person applying for a project and opened the grant area to the phase 2 area. Ed is marketing the funds to both the phase 1 and 2 areas. Ed informed staff he is leaving the CMHP, his replacement is onboard and will be transitioning into his new role. The 2019 TIF reports and the first half 2020 TIF/Abatement payments were approved by the city council in July. Further, the TIF 3-1 for the Central MN Credit Union will be decertified early on December 31, 2020. The TIF collections met the $125,000 Pay As You Go Note, the gap the Credit Union asked to cover. The tax collections will go back on the tax rolls in 2021 (4 years earlier than projected). BUDGET/FISCAL IMPACT: ATTACHMENTS: For Information Only EDA Financial Summary EDA Balance Sheet EDA Check Register EDA Revenue Report EDA Expenditure Report EDA Summary CIP CVB Financial Summary REQUESTED BOARD ACTION: Consider acceptance of the July financial reports. St. Joseph Economic Development Authority Summary Treasurer's Report - Fund 150 July 2020 Fund 150, EDA Balance as of December 31, 2019 (Audited) 40,700.12 Year to Date Revenue: Interest Earnings 745.28 TIF/MIF Deposit - DEED Housing Federal Grant Proceeds - Abatement Reimbursement (School District) 4,691.00 Ad Valorem Taxes 64,330.33 Surplus Property (Sale of Outlot C) 24,500.00 Total Revenue 94,266.61 Year to Date Expenditures by Object: 68,483.86 Board Stipends - Staff Salaries/Training (19,762.93) Workers Comp Premium - Software Support/Office Supplies (637.96) Professional Services - Legal/Engineering Fees (929.12) Telephone (778.57) Greater St. Cloud Development Investment (5,000.00) Business Round Table Outreach - Advertising (45.00) Abatement Payments (Country Manor) (15,040.24) CM Housing Grant Reimbursement - Computers (670.17) EDA Programs (23,618.88) Transfer to Other Funds - Total Expenses (66,482.87) Fund Summaries as of July 31, 2020: EDA Fund Balance - Fund 150 - unaudited, cash balance 68,483.86 Designated for Capital Programs 22,235.41 Undesignated 46,248.45 TIF 3-1 Central MN Credit Union Fund Balance - Fund 152 16,434.00 TIF 4-1 Fortitude Senior Apts Fund Balance - Fund 153 8,224.48 TIF 2-1 Millstream Shops and Lofts Fund Balance - Fund 157 31,141.95 TIF 2-2 St. Joseph Meat Market Fund Balance - Fund 158 377.26 TIF 2-3 Bayou Blues & Alley Flats Fund Balance - Fund 159 (9,698.25) Lodging Tax Fund Balance - Fund 220 27,930.38 DEED CDAP Grant Fund Balance - Fund 225 50,139.07 Revolving Loan Fund Balance - Fund 250 220,640.59 Designated for Revolving Loan Program 31,086.68 Designated for Economic Development 189,553.91 City of St. Joseph 08/12/20 9:40 AM EDA Balance Sheet Page 1 Current Period: July 2020 CITY OF ST. JOSEPH[ YTD YTD Current FUND Descr Account Descr Begin Yr Debit Credit Balance FUND 150 Economic Development Economic Development G 150-10100 Cash Economic Development G 150-10450 Interest Receivable Economic Development G 150-10500 Accounts Receivable Economic Development G 150-10700 Taxes Receivable - Delinquent Economic Development G 150-13113 Due From other Gov t Units Economic Development G 150-15500 Due From Other Fund Economic Development G 150-20200 Accounts Payable Economic Development G 150-20201 Salaries Payable Economic Development G 150-22204 Deferred Inflow of Resources Economic Development G 150-24415 Design. Fd Bal - Operations Economic Development G 150-25310 Unassigned Fund Balance FUND 150 Economic Development FUND 152 TIF 3-1 CMCU TIF 3-1 CMCU TIF 3-1 CMCU TIF 3-1 CMCU TIF 3-1 CMCU TIF 3-1 CMCU TIF 3-1 CMCU FUND 152 TIF 3-1 CMCU G 152-10100 Cash G 152-10450 Interest Receivable G 152-10500 Accounts Receivable G 152-20200 Accounts Payable G 152-20500 Due To Other Fund G 152-25310 Unassigned Fund Balance FUND 153 TIF 4-1 Fortitude Senior Apts $29,584.19 $100,055.99 $71,456.32 $58,183.86 $159.80 $0.00 $159.80 $0.00 $0.00 $0.00 $0.00 $0.00 $2,089.77 $0.00 $2,089.77 $0.00 $5,589.13 $0.00 $5,589.13 $0.00 $10,300.00 $0.00 $0.00 $10,300.00 -$4,727.88 $4,727.88 $0.00 $0.00 -$205.12 $205.12 $0.00 $0.00 -$2,089.77 $2,089.77 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 -$40,700.12 $77,205.25 $104,988.99 -$68,483.86 $0.00 $184,284.01 $184,284.01 $0.00 $3,130.97 $22,573.59 $9,270.56 $16,434.00 $7.45 $0.00 $7.45 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 -$3,138.42 $9,278.01 $22,573.59 -$16,434.00 $0.00 $31,851.60 $31,851.60 $0.00 TIF 4-1 Fortitude Senior G 153-10100 Cash $6,229.11 $28,388.65 $26,393.28 $8,224.48 TIF 4-1 Fortitude Senior G 153-10450 Interest Receivable $19.71 $0.00 $19.71 $0.00 TIF 4-1 Fortitude Senior G 153-10500 Accounts Receivable $0.00 $0.00 $0.00 $0.00 TIF 4-1 Fortitude Senior G 153-20200 Accounts Payable $0.00 $0.00 $0.00 $0.00 TIF 4-1 Fortitude Senior G 153-20500 Due To Other Fund $0.00 $0.00 $0.00 $0.00 TIF 4-1 Fortitude Senior G 153-25310 Unassigned Fund Balance -$6,248.82 $26,412.99 $28,388.65 -$8,224.48 FUND 153 TIF 4-1 Fortitude Senior Apts $0.00 $54,801.64 $54,801.64 $0.00 FUND 157 TIF 2-1 Millstream TIF 2-1 Millstream G 157-10100 Cash $30,039.91 $23,743.27 $22,641.23 $31,141.95 TIF 2-1 Millstream G 157-10450 Interest Receivable $101.98 $0.00 $101.98 $0.00 TIF 2-1 Millstream G 157-10500 Accounts Receivable $0.00 $0.00 $0.00 $0.00 TIF 2-1 Millstream G 157-13113 Due From other Gov t Units $0.00 $0.00 $0.00 $0.00 TIF 2-1 Millstream G 157-20200 Accounts Payable $0.00 $0.00 $0.00 $0.00 TIF 2-1 Millstream G 157-25310 Unassigned Fund Balance -$30,141.89 $22,743.21 $23,743.27 -$31,141.95 FUND 157 TIF 2-1 Millstream $0.00 $46,486.48 $46,486.48 $0.00 FUND 158 TIF 2-2 Meat Market TIF 2-2 Meat Market G 158-10100 Cash $701.75 $4,359.19 $4,183.68 $877.26 TIF 2-2 Meat Market G 158-10450 Interest Receivable $3.10 $0.00 $3.10 $0.00 TIF 2-2 Meat Market G 158-20201 Salaries Payable $0.00 $0.00 $0.00 $0.00 TIF 2-2 Meat Market G 158-20500 Due To Other Fund -$500.00 $0.00 $0.00 -$500.00 TIF 2-2 Meat Market G 158-25310 Unassigned Fund Balance -$204.85 $4,186.78 $4,359.19 -$377.26 FUND 158 TIF 2-2 Meat Market $0.00 $8,545.97 $8,545.97 $0.00 FUND 159 TIF 2-3 Bayou Blues/Alley Flat TIF 2-3 Bayou Blues/All G 159-10100 Cash $362.69 $7,180.10 $7,441.04 $101.75 TIF 2-3 Bayou Blues/All G 159-10450 Interest Receivable $2.37 $0.00 $2.37 $0.00 TIF 2-3 Bayou Blues/All G 159-13113 Due From other Gov t Units $41.27 $0.00 $41.27 $0.00 City of St. Joseph EDA Balance Sheet Current Period: July 2020 CITY OF ST. JOSEPH[ 08/12/20 9:40 AM Page 2 FUND 220 Lodging Tax Lodging Tax G 220-10100 Cash $34,282.58 YTD YTD Current FUND Descr Account Descr Begin Yr Debit Credit Balance TIF 2-3 Bayou Blues/All G 159-20200 Accounts Payable $0.00 $0.00 $0.00 $0.00 TIF 2-3 Bayou Blues/All G 159-20500 Due To Other Fund -$9,800.00 $0.00 $0.00 -$9,800.00 TIF 2-3 Bayou Blues/All G 159-25310 Unassigned Fund Balance $9,393.67 $7,484.68 $7,180.10 $9,698.25 FUND 159 TIF 2-3 Bayou Blues/Alley Flat $0.00 $14,664.78 $14,664.78 $0.00 FUND 220 Lodging Tax Lodging Tax G 220-10100 Cash $34,282.58 $8,640.69 $14,992.89 $27,930.38 Lodging Tax G 220-10450 Interest Receivable $120.60 $0.00 $120.60 $0.00 Lodging Tax G 220-10500 Accounts Receivable $381.93 $0.00 $381.93 $0.00 Lodging Tax G 220-25310 Unassigned Fund Balance -$34,785.11 $15,495.42 $8,640.69 -$27,930.38 FUND 220 Lodging Tax $0.00 $24,136.11 $24,136.11 $0.00 FUND 225 DEED CDAP Grant DEED CDAP Grant G 225-10100 Cash $32,937.58 $17,201.49 $0.00 $50,139.07 DEED CDAP Grant G 225-10450 Interest Receivable $122.24 $0.00 $122.24 $0.00 DEED CDAP Grant G 225-25310 Unassigned Fund Balance -$33,059.82 $122.24 $17,201.49 -$50,139.07 FUND 225 DEED CDAP Grant $0.00 $17,323.73 $17,323.73 $0.00 FUND 250 Revolving Loan Fund Revolving Loan Fund G 250-10100 Cash $219,625.50 $11,376.18 $10,100.00 $220,901.68 Revolving Loan Fund G 250-10450 Interest Receivable $1,002.95 $0.00 $1,264.04 -$261.09 Revolving Loan Fund G 250-11900 Notes Receivable $52,500.00 $0.00 $52,500.00 $0.00 Revolving Loan Fund G 250-22204 Deferred Inflow of Resources -$51,373.70 $51,373.70 $0.00 $0.00 Revolving Loan Fund G 250-24415 Design. Fd Bal - Operations -$33,571.12 $0.00 $0.00 -$33,571.12 Revolving Loan Fund G 250-25310 Unassigned Fund Balance -$188,183.63 $12,490.34 $11,376.18 -$187,069.47 FUND 250 Revolving Loan Fund $0.00 $75,240.22 $75,240.22 $0.00 $0.00 $457,334.54 $457,334.54 $0.00 City of St. Joseph 08/12/20 9:41 AM EDA Check Register Page 1 A i , ' _L CITY OF ST. JOSEPH CHECK # Search Name 056415 056416 056417 056419 056421 056423 056428 056430 056430 056460 056467 056470 056470 056470 056470 056486 056493 056493 056534 BRUNO PRESS CENTRAL MN CREDIT UNION COUNTRY MANOR ST. 3OSEPH FORTITUDE SENIOR LIVING KENSINGTON BANK PFANNENSTEIN, HARVEY & CAROL WEST BANK JUPITER MOON, LLC JUPITER MOON, LLC VIKING INDUSTRIAL CENTER, INC MIDCONTINENT COMMUNICATIONS NORTHLAND SECURITIES, INC NORTHLAND SECURITIES, INC NORTHLAND SECURITIES, INC NORTHLAND SECURITIES, INC COUNTRY MANOR ST. 3OSEPH 3OVANOVICH, DEGE & ATHMANN 3OVANOVICH, DEGE & ATHMANN WEST BANK Comments FUND DEPART Amount 3uly 2020 CVB Social Media Ma 220 1st Half 2020 Tax Abatement - 152 1st Half 2020 Tax Abatement - 150 1st Half 2020 Tax Abatement - 153 1st Half 2020 Tax Abatement - 159 1st Half 2020 Tax Abatement - 158 1st Half 2020 Tax Abatement - 157 Revolving Loan - Jupiter Moon 250 Revolving Loan Origination Fee 250 Caution Tape - Fireworks 220 3uly 2020 Telephone/Fiber 150 2019 Annual TIF Reporting 157 2019 Annual TIF Reporting 159 2019 Annual TIF Reporting 152 2019 Annual TIF Reporting 153 Country Manor Tax Abatement 150 RLF Loans - EDA - June 2020 150 RLF Loand - June 2020 250 2nd 3uly TIF 2-1 Millstream set 157 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 46500 $750.00 $8,280.56 $10,349.24 $25,403.28 $6,413.90 $4,122.63 $17,091.59 $10,000.00 -$100.00 $227.88 $114.96 $990.00 $990.00 $990.00 $990.00 $4,691.00 $ 546.00 $100.00 $3,609.64 $95,560.68 City of St. Joseph 08/12/20 9:42 AM EDA Revenue Report Page 1 Current Period: July 2020 CITY OF ST. JOSEPH[ 2020 3uly 2020 Account Descr SOURC YTD Budget 2020 Amt YTD Amt FUND 150 Economic Development R 150-46500-31010 Current Ad Valorem Taxes 31010 $124,530.00 $1,209.41 $64,330.33 R 150-46500-33160 Federal Grants - Other 33160 $0.00 $0.00 $0.00 R 150-46500-34150 TIF/MIF Deposit 34150 $0.00 $0.00 $0.00 R 150-46500-34160 Tax Abatement Reimbursement 34160 $0.00 $4,691.00 $4,691.00 R 150-46500-36210 Interest Earnings 36210 $1,000.00 $22.83 $745.28 R 150-49302-36260 Surplus Property 36260 $0.00 $0.00 $24,500.00 R 150-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00 FUND 150 Economic Development $125,530.00 $5,923.24 $94,266.61 FUND 152 TIF 3-1 CMCU R 152-46500-31050 Tax Increment 31050 $0.00 $0.00 $22,483.65 R 152-46500-36210 Interest Earnings 36210 $0.00 $15.48 $82.49 R 152-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00 FUND 152 TIF 3-1 CMCU $0.00 $15.48 $22,566.14 FUND 153 TIF 4-1 Fortitude Senior Apts R 153-46500-31050 Tax Increment 31050 $0.00 $0.00 $28,225.87 R 153-46500-34150 TIF/MIF Deposit 34150 $0.00 $0.00 $0.00 R 153-46500-36210 Interest Earnings 36210 $0.00 $22.82 $143.07 R 153-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00 FUND 153 TIF 4-1 Fortitude Senior Apts $0.00 $22.82 $28,368.94 FUND 157 TIF 2-1 Millstream R 157-46500-31050 Tax Increment 31050 $0.00 $4,010.71 $23,001.36 R 157-46500-36210 Interest Earnings 36210 $0.00 $52.13 $639.93 FUND 157 TIF 2-1 Millstream $0.00 $4,062.84 $23,641.29 FUND 158 TIF 2-2 Meat Market R 158-46500-31050 Tax Increment 31050 $0.00 $0.00 $4,339.61 R 158-46500-36210 Interest Earnings 36210 $0.00 $3.13 $16.48 R 158-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00 FUND 158 TIF 2-2 Meat Market $0.00 $3.13 $4,356.09 FUND 159 TIF 2-3 Bayou Blues/Alley Flat R 159-46500-31050 Tax Increment 31050 $0.00 $0.00 $7,126.56 R 159-46500-36210 Interest Earnings 36210 $0.00 $3.98 $9.90 R 159-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00 FUND 159 TIF 2-3 Bayou Blues/Alley Flat $0.00 $3.98 $7,136.46 FUND 220 Lodging Tax R 220-46500-31600 Lodging Tax 31600 $14,000.00 $683.62 $2,487.13 R 220-46500-34409 Marketing 34409 $200.00 $0.00 $0.00 R 220-46500-36210 Interest Earnings 36210 $500.00 $38.41 $651.03 R 220-46500-36230 Contributions - General 36230 $0.00 $5,000.00 $5,000.00 FUND 220 Lodging Tax $14,700.00 $5,722.03 $8,138.16 FUND 225 DEED CDAP Grant R 225-46500-34200 DEED Housing Reimbursement 34200 $0.00 $0.00 $16,221.28 R 225-46500-36210 Interest Earnings 36210 $1,000.00 $66.95 $857.97 R 225-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00 FUND 225 DEED CDAP Grant $1,000.00 $66.95 $17,079.25 FUND 250 Revolving Loan Fund City of St. Joseph 08/12/20 9:42 AM Page 2 EDA Revenue Report Current Period: July 2020 CITY OF ST. JOSEPH $151,555.00 $16,250.29 $214,538.78 2020 3uly 2020 Account Descr SOURC YTD Budget 2020 Amt YTD Amt R 250-46500-36210 Interest Earnings 36210 $2,000.00 $329.82 $3,804.73 R 250-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00 R 250-46500-39320 Loan Principal 39320 $6,860.00 $0.00 $4,126.87 R 250-46500-39321 Loan Interest 39321 $1,465.00 $0.00 $954.24 R 250-46500-39322 Loan Origination Fee 39322 $0.00 $100.00 $100.00 FUND 250 Revolving Loan Fund $10,325.00 $429.82 $8,985.84 $151,555.00 $16,250.29 $214,538.78 City of St. Joseph EDA Expenditure Report Current Period: July 2020 CITY OF ST. JOSEPH[ 2020 3uly 2020 Account Descr YTD Budget 2020 Amt YTD Amt FUND 150 Economic Development E 150-46500-101 Salaries E 150-46500-103 Legislative Bodies E 150-46500-121 PERA Contributions E 150-46500-122 FICA Contributions E 150-46500-123 Deferred Comp -Employer E 150-46500-125 Medicare Contributions E 150-46500-130 H S A- Employer Contribution E 150-46500-131 Health Insurance E 150-46500-132 Dental Insurance E 150-46500-133 Life Insurance E 150-46500-134 Disabilty Insurance E 150-46500-151 Workers Comp. Insur. Prem. E 150-46500-171 Clothing Allowance E 150-46500-200 Office Supplies E 150-46500-215 Software Support E 150-46500-300 Professional Services E 150-46500-303 Engineering Fee E 150-46500-304 Legal Fees E 150-46500-308 Community Programs E 150-46500-321 Telephone E 150-46500-322 Postage E 150-46500-328 Marketing E 150-46500-331 Travel & Conference Expense E 150-46500-340 Advertising E 150-46500-433 Dues & Memberships E 150-46500-582 Computer Software E 150-46500-588 EDA Programs E 150-46500-622 TIF/Abatement Payments E 150-49300-720 Transfers to Other Funds FUND 150 Economic Development FUND 152 TIF 3-1 CMCU $33,510.00 $2,648.08 $12,758.83 $4,410.00 $0.00 $0.00 $2,515.00 $198.60 $956.92 $1,925.00 $160.35 $761.08 $455.00 $38.13 $1,214.39 $450.00 $37.51 $177.98 $875.00 $281.25 $562.50 $6,090.00 $331.58 $2,212.69 $415.00 $25.05 $167.09 $25.00 $1.58 $10.67 $285.00 $17.30 $105.15 $215.00 $0.00 $0.00 $70.00 $0.00 $0.00 $500.00 $0.00 $16.74 $1,445.00 $0.00 $621.22 $0.00 $0.00 $0.00 $2,000.00 $0.00 $383.12 $1,000.00 $546.00 $546.00 $0.00 $0.00 $0.00 $1,400.00 $114.96 $778.57 $100.00 $0.00 $0.00 $1,000.00 $0.00 $0.00 $1,750.00 $0.00 $540.63 $200.00 $0.00 $45.00 $5,295.00 $0.00 $5,295.00 $500.00 $0.00 $670.17 $44,100.00 $0.00 $23,618.88 $15,000.00 $15,040.24 $15,040.24 $0.00 $0.00 $0.00 $125,530.00 $19,440.63 $66,482.87 E 152-46500-101 Salaries $0.00 $0.00 $0.00 E 152-46500-121 PERA Contributions $0.00 $0.00 $0.00 E 152-46500-122 FICA Contributions $0.00 $0.00 $0.00 E 152-46500-123 Deferred Comp -Employer $0.00 $0.00 $0.00 E 152-46500-125 Medicare Contributions $0.00 $0.00 $0.00 E 152-46500-132 Dental Insurance $0.00 $0.00 $0.00 E 152-46500-133 Life Insurance $0.00 $0.00 $0.00 E 152-46500-134 Disabilty Insurance $0.00 $0.00 $0.00 E 152-46500-300 Professional Services $0.00 $990.00 $990.00 E 152-46500-301 Audit & Accounting Services $750.00 $0.00 $0.00 E 152-46500-340 Advertising $45.00 $0.00 $0.00 E 152-46500-622 TIF/Abatement Payments $0.00 $8,280.56 $8,280.56 E 152-49300-720 Transfers to Other Funds $0.00 $0.00 $0.00 FUND 152 TIF 3-1 CMCU $795.00 $9,270.56 $9,270.56 FUND 153 TIF 4-1 Fortitude Senior Apts E 153-46500-101 Salaries $0.00 $0.00 $0.00 E 153-46500-121 PERA Contributions $0.00 $0.00 $0.00 E 153-46500-122 FICA Contributions $0.00 $0.00 $0.00 E 153-46500-125 Medicare Contributions $0.00 $0.00 $0.00 08/12/20 9:42 AM Page 1 City of St. Joseph EDA Expenditure Report Current Period: July 2020 CITY OF ST. JOSEPH 08/12/20 9:42 AM Page 2 2020 3uly 2020 Account Descr YTD Budget 2020 Amt YTD Amt E 153-46500-300 Professional Services $0.00 $990.00 $990.00 E 153-46500-340 Advertising $0.00 $0.00 $0.00 E 153-46500-588 EDA Programs $0.00 $0.00 $0.00 E 153-46500-622 TIF/Abatement Payments $0.00 $25,403.28 $25,403.28 E 153-49300-720 Transfers to Other Funds $0.00 $0.00 $0.00 FUND 153 TIF 4-1 Fortitude Senior Apts $0.00 $26,393.28 $26,393.28 FUND 157 TIF 2-1 Millstream E 157-46500-101 Salaries $0.00 $0.00 $0.00 E 157-46500-121 PERA Contributions $0.00 $0.00 $0.00 E 157-46500-122 FICA Contributions $0.00 $0.00 $0.00 E 157-46500-123 Deferred Comp -Employer $0.00 $0.00 $0.00 E 157-46500-125 Medicare Contributions $0.00 $0.00 $0.00 E 157-46500-132 Dental Insurance $0.00 $0.00 $0.00 E 157-46500-133 Life Insurance $0.00 $0.00 $0.00 E 157-46500-134 Disabilty Insurance $0.00 $0.00 $0.00 E 157-46500-300 Professional Services $0.00 $990.00 $1,940.00 E 157-46500-301 Audit & Accounting Services $500.00 $0.00 $0.00 E 157-46500-340 Advertising $45.00 $0.00 $0.00 E 157-46500-622 TIF/Abatement Payments $34,000.00 $20,701.23 $20,701.23 E 157-49300-720 Transfers to Other Funds $0.00 $0.00 $0.00 FUND 157 TIF 2-1 Millstream $34,545.00 $21,691.23 $22,641.23 FUND 158 TIF 2-2 Meat Market E 158-46500-101 Salaries $0.00 $46.48 $46.48 E 158-46500-121 PERA Contributions $0.00 $3.48 $3.48 E 158-46500-122 FICA Contributions $0.00 $2.78 $2.78 E 158-46500-123 Deferred Comp -Employer $0.00 $0.63 $0.63 E 158-46500-125 Medicare Contributions $0.00 $0.65 $0.65 E 158-46500-131 Health Insurance $0.00 $6.58 $6.58 E 158-46500-132 Dental Insurance $0.00 $0.45 $0.45 E 158-46500-133 Life Insurance $0.00 $0.00 $0.00 E 158-46500-134 Disabilty Insurance $0.00 $0.00 $0.00 E 158-46500-300 Professional Services $0.00 $0.00 $0.00 E 158-46500-301 Audit & Accounting Services $500.00 $0.00 $0.00 E 158-46500-340 Advertising $45.00 $0.00 $0.00 E 158-46500-622 TIF/Abatement Payments $4,000.00 $4,122.63 $4,122.63 FUND 158 TIF 2-2 Meat Market $4,545.00 $4,183.68 $4,183.68 FUND 159 TIF 2-3 Bayou Blues/Alley Flat E 159-46500-101 Salaries $0.00 $0.00 $0.00 E 159-46500-121 PERA Contributions $0.00 $0.00 $0.00 E 159-46500-122 FICA Contributions $0.00 $0.00 $0.00 E 159-46500-123 Deferred Comp -Employer $0.00 $0.00 $0.00 E 159-46500-125 Medicare Contributions $0.00 $0.00 $0.00 E 159-46500-132 Dental Insurance $0.00 $0.00 $0.00 E 159-46500-133 Life Insurance $0.00 $0.00 $0.00 E 159-46500-134 Disabilty Insurance $0.00 $0.00 $0.00 E 159-46500-300 Professional Services $0.00 $990.00 $990.00 E 159-46500-301 Audit & Accounting Services $750.00 $0.00 $0.00 E 159-46500-340 Advertising $45.00 $0.00 $0.00 E 159-46500-622 TIF/Abatement Payments $0.00 $6,413.90 $6,451.04 E 159-49300-720 Transfers to Other Funds $0.00 $0.00 $0.00 City of St. Joseph EDA Expenditure Report Current Period: July 2020 CITY OF ST. JOSEPH 08/12/20 9:42 AM Page 3 2020 3uly 2020 Account Descr YTD Budget 2020 Amt YTD Amt FUND 159 TIF 2-3 Bayou Blues/Alley Flat $795.00 $7,403.90 $7,441.04 FUND 220 Lodging Tax E 220-46500-300 Professional Services $3,000.00 $750.00 $5,250.00 E 220-46500-309 Visitors Bureau $9,200.00 $227.88 $7,477.88 E 220-46500-328 Marketing $2,000.00 $0.00 $1,703.35 E 220-46500-331 Travel & Conference Expense $0.00 $0.00 $561.66 E 220-46500-340 Advertising $500.00 $0.00 $0.00 FUND 220 Lodging Tax $14,700.00 $977.88 $14,992.89 FUND 225 DEED CDAP Grant E 225-46500-300 Professional Services $12,500.00 $0.00 $0.00 E 225-46500-340 Advertising $0.00 $0.00 $0.00 FUND 225 DEED CDAP Grant $12,500.00 $0.00 $0.00 FUND 250 Revolving Loan Fund E 250-46500-300 Professional Services $0.00 $0.00 $0.00 E 250-46500-304 Legal Fees $0.00 $100.00 $100.00 E 250-46500-317 Other fees $0.00 $0.00 $0.00 E 250-46500-434 Certification Fee $0.00 $0.00 $0.00 E 250-46500-455 Revolving Loan Proceeds $0.00 $10,000.00 $10,000.00 FUND 250 Revolving Loan Fund $0.00 $10,100.00 $10,100.00 $193,410.00 $99,461.16 $161,505.55 75 Q O rn uq m ra r- 0 N O O W 7 T— LL w U N a a Ll N O N O N O N O Q N O N 0) O N 0) O N W O N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O Ln O Ln 0 0 0 Ln O O O O Ln O O O O O O O O O O O O O O O O O O O N l0 H+ m + N W M b+ tPr t+ M tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr M b+ t+ tPr M tPr tPr tPr l0 HT O N tPr tPr tPr tPr tPr tPr I� t4 tPr .� 01 tPr tPr yr yr tPr tPr 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O Ln O O Ln Ln O O O Ln Ln Ln O O O Ln 0 0 0 0 0 0 0 0 0 Ln O O O O O O O Ln .--i .--i Ln n m l0 W W I, O T -b+ O O -b+ O O O Ln O m O O O O -b+ -b+ 'Zt O Ln O � tPr N .--i -b+ Ln � O O O n N N Ln .--i O Ln Ln M .--i N N tPr tPr tPr Ln tPr tPr tPr tPr .--i N .--i .--i V� .--i .--i V� Ln V+ I Ln ti tPr M tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr tPr � .--i N HT tPr tPr .--i tPr --� O m M W O Ln M l0 m N O O TN O N O O M O O M O O I, W O Ln O O I* O Ln W W N N O Ln I* O O n N O .--i O O N O O l0 O O —! 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N -a 01 O O OC m N 3 a Q .-, .-, L.L 0 C C Iy 41 0) 0) i w E E a, E Q Q C CL O O OJ L a 0) 0) L C C C O U m m r N N 41U 01 � r r r •° � a a a CL Z D D D W W W w co co co 0 LO LO LO V1 0 1 1 0 0 41 o 0 0 C LO LO LO O I a o 0 0 LO LO LO N 4, U c Q U o a, E LU p t J a ~ w 0 0 L OF-- O W W � a CVB 2020 Financial Summary As of July 31, 2020 Beginning Fund Balance 1-1-20 $ 34,785.11 Customer YTD Rev 2020 Interest Earnings $ 651.03 T-shirt Sales $ - Beanie Hat Sales $ - Fireworks Donations $ 5,000.00 Rodeway Inn Lodging Tax $ 2,234.79 CSB Lodging Tax $ - Estates B&B Lodging Tax $ 252.34 $ 8,138.16 YTD Exp Vendor 2020 Bruno Press - social media campaign $ 5,250.00 Explore Minnesota Conference $ 561.66 Rubinski Works - Videos $ 2,250.00 Website Hosting $ 1,703.35 Res Pyro - Fireworks $ 5,227.88 Think Tourism USA - Magazine Ad $ - Minnesota Public Radio Ad $ - 87 Lumens - Event Photos $ - Krillan, Inc. -T-shirts $ - Krillan, Inc. - Beanie Hats $ - Newcomer Service - Magazine Ad $ - C 1 A QQ-) QQ Ending Cash Balance 7-31-20 $ 27,930.38 ,WLLAMM& EDA Agenda Item 5 CITY OF ST..IOSLPH MEETING DATE: August 18, 2020 AGENDA ITEM: Revolving Loan Request- MN Street Market SUBMITTED BY: Community Development/Finance STAFF RECOMMENDATION: The Finance Committee recommends approval of issuance of the loan. PREVIOUS BOARD ACTION: BACKGROUND INFORMATION: MN Street Market is a member -owned cooperative with a Board of Directors that opened in 2011 with 229 members, and 27 student members. Currently, they have about 500 active members. Pia Lopez, Manager of St. Joseph Food Cooperative/Minnesota Street Market has requested a loan from the City's Revolving Loan Fund for a 16 -foot long produce cooler, 4 -foot grab and go cooler, installation of the coolers, and relocation of an existing deli cooler and condenser unit. The purpose of the loan is to replace an existing 1994 cooler that has major annual repair expenses and replace a smaller grab and go cooler that they retired a couple of years ago. The estimated project costs are $30,000. The applicant has requested a loan in the amount of $25,000 for a term of 10 years at a 0% interest rate. The proposed collateral is as follows: New equipment: $12,000 Existing office equipment: $15,700 Existing store equipment: $74,000 Inventory: June 30 Cost Valuation = $45,984 (Suggested Retail Price Valuation = $75,063) The Finance Committee has reviewed the loan application and is recommending approval of a $25,000 loan for a term of seven years at a 3% interest rate. The terms are consistent with other loans issued by the City. BUDGET/FISCAL IMPACT: ATTACHMENTS: $25,000 RLF Loan Quote for costs of equipment MN Street Market Business Plan REQUESTED BOARD ACTION: Approve a loan in the amount of $25,000 from the Revolving Loan Fund for a term of 7 years at a 3% interest rate. 'ja K APPLICATION FOR REVOLVING LOAN FUND CITY OF ST. JOSEPH APPLICANT AND PROPERTY OWNER INFORMATION: Applicant Pia Lopez, General Manager, Minnesota Street Market Phone: 320-309-4630 Email: generalmanager@mnstreetmarket.com Mailing Address:. PO Box 397, St. Joseph MN 56374 Property Owner: Stacie Stone PROJECT INFORMATION: Business Name: St. Joseph Food Cooperative dba Minnesota Street Market Business Address: 27 West Minnesota St, St. Joseph MN 56374 Business Phone: 320-363-7733 Cell: 320-309-4630 Principal(s) of Business: Member -owned cooperative with board of directors State ID #: Fed ID #: Business is a: Proprietorship Partnership Corporation Date of Incorporation _X_ Cooperative Association (formed under MN Chapter 308B) Type of Business: Grocery (food & art cooperative) 27 West Minnesota Street Present location: Owned X Rented Proposed Location (if different from above): 3,336 sq ft retail space; Sq. ft. of present building: 5,452 sq ft total rented space including kitchen and storage Owned Rented Sq. ft. of present building: City of St. Joseph — Revolving Loan Fund Program Application Page 1 Type of project: Construction/New Business X Equipment/Machinery/Fixture Other: Expanding/Existing Business Remodel/Commercial/Retail/Ind. Describe Project: Project: Purchase and install two new coolers. A Produce Cooler (1 6ft L x 6ft H) and a small Grab -and -Go Cooler (2ft L x 5ft H). -We have increasing repair costs for our existing 1994 Produce Cooler. We seek to retire that cooler and replace it. -We also seek to replace a cooler that was retired and removed from the building two years ago. The company had gone out of business 30 years ago and getting replacement parts was near -impossible. We have not yet replaced that cooler. Other: The cost of this project will involve moving our Deli Cooler (8ft L x 6ft H) four feet to make room for a new 16ft Produce Cooler. It also involves moving a condensing unit located at ground level on the west side of the building to the roof. [That unit is too close to the building, not allowing proper air flow, causing repair problems. The property line does not allow for moving the unit further from the building.] See attached for more in-depth description. Estimated Project Costs: Proposed Financing: Land: $ Source Terms/Interest Amount Site Improvement: $ Construction/Rehab: $ Machinery/Equip.: $ See attached Bldg.: $ Other (Specify): $ See attached TOTAL: $ $30,000 Bank Equity Other -describe See attached City See attached TOTAL: $ $25,000 See attached Describe of collateral available to secure loan, including market value and prior liens: Collateral -New equipment: Approximately $12,000 -Existing office equipment: $15,700 -Existing store equipment: $74,000 -Inventory: June 30 Cost Valuation = $45,984 (Suggested Retail Price Valuation = $75,063). Prior liens: Stearns Electric (owe $28,497 on 7 -year loan originated Aug 2018) City of St. Joseph — Revolving Loan Fund Program Application Page 2 Purpose of loan: Replace 1994 Produce Cooler: Aim is to reduce a major annual repair expense and save on utility costs through improved efficiency. Local, in -season, natural, organic produce is a key - nichc for us ir; a highly competitive grocery marketplace. We have an exper1Pnced Produce Coordinator who makes our produce shine. We see this project as a good opportunity to set _ the store up to grow sales in the future. Replace a retired cooler with a small Grab -and -Go Cooler: Aim is to have a small front -of- _ store display case to take advantage of consumer interest in natural, convenient options. Drinks, and pre-packaged, ready -to -eat soups, salads, wraps and sandwiches attractively presented — with reduced energy consumption. Amount requested: $$25,000 Terms requested: $ 0% interest, 10 years Present number of full-time employees: 0 (811 employees are p8rt91 Anticipated jobs created or retained within twelve (12) months of project completion: See attached If redevelopment: estimate market value of the subject parcel(s) prior to project and estimated market value following project completion. EMV Present: EMV Post Project Completion: Attach and include the following if requested: X A. Written Business Plan Narrative • Description of Business • Ownership City of St. Joseph – Revolving Loan Fund Program Application Page 3 • Date established • Products/Services • Management • Future plans B. Financial statements for the past two (2) years C. Financial projects for three (3) years D. Resume of all principals E. Personal financial statements of proprietor, partners, guarantors F. Letter of commitment for applicant pledging to complete during the proposed project duration G. Letter of commitment from other sources of financing, stating terms and conditions of their participation in project X H. Written quotes from contractors and vendors for all cost estimates listed above I. Site plan for new construction J. Authorization for release of information K. Other: L. Other: M. Fee: (1% of amount of loan request) Attach an explanation if any answer to the following is yes: 1. Have you or any officer or owner of your company ever been involved in bankruptcy or insolvency proceedings? Yes x No City of St. Joseph — Revolving Loan Fund Program Application Page 4 2. Are you or any officer or owner of your business involved in any pending lawsuits or judgments? Yes X No 3. Does your business have any subsidiaries or affiliates? (INCLUDE: financial statements with explanations as requested) Yes X N 4. Do you buy from, sell to, or use the services of any concern in which someone in your company itself has a significant financial interest? Yes X No To the best of my knowledge, the information provided in this application is true and correct. fltA�Date: July 15, 2020 Applicant Signature Date: Owner(s) Signature NOTE. If this application is for leasehold improvement, the owners(s) of the building must also sign this application. Submit application to: St. Joseph Government Center 75 Callaway St. E St. Joseph, MN 56374 City of St. Joseph — Revolving Loan Fund Program Application Page 5 Minnesota Street Market. ESTIMATED PROJECT COSTS Estimated Project Costs Description Quantity Estimated Cost Cost Total Hill Phoenix Model OHP 2 -deck, 1 $9,957.00 $9,957.00 16 -foot long wet produce case Installation 1 $7,295.00 $7,295.00 Move Grab -and -Go Deli Cooler 4 1 $7,836.00 $7,836.00 feet to accommodate new 16 -foot Produce Cooler. Move condensing unit to roof. Refrigerated Merchandiser 1 $1993.00 $1993.00 Freight 1 $2,100.00 $2,100.00 TOTAL $29,181.00 Other/Contingency $819.00 $819.00 TOTAL $30,000.00 See also next 3 gages: St. Cloud Refrigeration quote for project cost. We have added $819 for other costs/contingency. TOTAL PROJECT COST. $30,000 Project: Minnesota Street Market Att: Pia Lopez genera lmanager@ mnstreetma rket. com 27 West Minnesota Street St. Joseph, MN 56374 Job Reference Number: 2858 Quote From: SCR Todd Lambrecht 604 Lincoln Avenue NE St. Cloud, MN 56304 320-258-5122 (Contact) 07/15/2020 Item Qty Description Sell Sell Total 1 1 ea 2 DECK PRODUCE $9,957.00 $9,957.00 Custom Model No. OPH Hill Phoenix Model OHP 2 deck wet produce, 16'-0" long, 2 - 8' units, high multi -deck product, Synerg-E DX, 120 volt, 16' of 27" front sill, square left and right ends, PVC -trim, painted/bright stainless, 16' of black full master bumper, vented black PVC kickplate, front baffle spray hose, quick disconnect, right hand mount, 15' spray nozzle, 16' of 05DMH 13" mirror with scoop, 16' of telescopic wire rack, black, no lip or tag molding, 4 solid shelves, 16" x 48", custom color, 0/17 degree with shelf tag molding, slotted, 4 - 4' clear plexiglass shelf product stops, 2 rows cornice LED light rods, bright ss, clearvoyant LED lights 1 ea INSTALLATION ITEM TOTAL: $9,957.00 $7,295.00 $7,295.00 Custom Model No. INSTALLATION Installation: Re -using existing line set and condensing unit located on the back roof. Disconnect old case and remove. Hook up and start up the new case. Add condensate pump and drain hose back to the kitchen 4 1 ea RELOCATE ITEM TOTAL: $7,295.00 $7,836.00 $7,836.00 Custom Model No. RELOCATE Relocate Grab & Go condensing unit to roof. Disconnect and move Grab & Go case from current location, pipe line set from kitchen area to roof over walk in cooler. Remove existing air handler and set condensing unit for Grab & Go in it's place. Start case. Craning unit to roof included. Re -using existing line set in store area. ITEM TOTAL: $7,836.00 NOTE NOTE: ELECTRICAL WIRING BY OTHERS 6 1 ea REFRIGERATED MERCHANDISER $1,993.00 $1,993.00 Initial: Minnesota Street Market Page 1 of 3 SCR Item Qty Description True Manufacturing Co., Inc. Model No. GDM-I2-HC—TSL01 Refrigerated Merchandiser, one -section, True standard look version 01, (3) shelves, (1) Low -E thermal glass hinged door, LED interior lights, powder coated steel exterior, white interior with stainless steel floor, R290 Hydrocarbon refrigerant, 1/6 HP, 115v/60/1 -ph, 2.0 amps, NEMA 5-15P, (depth does not include 1" for rear bumpers), cULus, UL EPH Classified, Made in USA 1 ea NOTE: Commonly stocked model in black exterior, and white exterior; verify availability with factory lea Self-contained refrigeration standard lea Warranty - i year compressor (self-contained only), please visit www.Truemfg.com for specifics (updated warranty sheet pending from True) 1 ea Warranty - 3 year parts and labor, please visit www.Truemfg.com for specifics 1 ea Door hinged right standard 1 ea Exterior: Black powder coated steel, standard lea Interior: White aluminum, standard 1 ea Decal: 5 -TS -01 "TRUE Stripe" graphic, standard 8 1 ea FREIGHT Custom Model No. FREIGHT Freight for produce case Tota I 07/15/2020 Sell Sell Total ITEM TOTAL: $1,993.00 $2,100.00 $2,100.00 ITEM TOTAL: $2,100.00 Unless noted sales tax, freight and installation are not included. SCR Quote Declarations The above quoted prices do not include: * Electrical wiring * Control wiring * Plumbing * Roof work and penetrations * Structural work * Roof flashing * Permits * Premium time * Tax * Engineered Drawings * Equipment Disposal * Floor cutting & patching * Refrigeration under floor * PVC, pits and trenching * Freight * Normal cleaning & maintenance * 4 year extended compressor warranties - quoted separately Date: Initial: Warranty Statement In all cases, unless otherwise noted, equipment manufacturer's warranties will apply and be honored by SCR and it is the customer's responsibility to be aware of warranty time periods and start dates. Food product is the customer's responsibility and is not covered under any warranty. • New equipment:_90 days Labor _1 year Parts Per manufacturer - typical 1 year parts • Refurbished equipment: Labor Parts • Existing and owner provided equipment - No warranty $29,181.00 Initial: Minnesota Street Market Page 2 of 3 010 • 90 day SCR warranty on LED labor, 5 yr. Innovative Lighting manufacturer's warranty on parts Notes: - Electrical information or plan is not an engineered design, it is provided in good faith and is for electrical contractor to design, not for bidding or building purposes - Lost product/business due to any refrigeration malfunction is the owner"s responsibility as temp checks are owner's responsibility. - Installation prices can vary depending upon what equipment is purchased. - Any alteration or deviation from above specifications involving extra costs will be above the estimate. - Installation is also dependent upon contractor being ready at job site upon our arrival. This correlates closely with electricians, plumbers, and carpenters. - All work to be completed in a workmanlike manner according to standard practices. - This agreement is contingent upon accidents or delays beyond our control. - Owner is to carry necessary construction insurance. All manufacturers have strict guidelines on how to operate and maintain their equipment. It is very important the owner/operator familiarizes themselves with the manufacturer's owner's manuals that are provided with the equipment when delivered. If the owner/operator need s additional information or is unclear on use of equipment SCR will assist with this or provide additional training. Manufacturer's warranties will be'void if owner/operator use equipment in a manner that is inconsistent with operation manual. When dealing with equipment that is not serviced by SCR, it is up to the owner/operator to contact manufacturer to get an approved service agent for equipment in question. Warranty claims need to be handled between end user and manufacturer for proper coverage of warranty. SCR is not responsible for manufacturer warranty policies. *All freight delivered to site must be checked in by owner or owner"s representative. Any damage must be noted on the bill of lading. After receipt all equipment becomes the owner"s full responsibility. *By accepting this proposal, owner accepts financial liability for engineering, drawings, cancellation fees and any other costs incurred in the project process. *Pricing is valid for 30 days from date of quote. Sincerely, SCR Todd Lambrecht Todd Lambrecht TL/km Note: Payment will be made as follows: 50% down 150% upon delivery Acceptance: Date: Printed Name: Project Grand Total: $29,181.00 07/15/2020 Initial: Minnesota Street Market Page 3 of 3 Minnesota Street Market. PROPOSED FINANCING FOR COOLER PROJECT Raised Jan 1 -Jun 30 New Members (Regular): 26 $2,600 New Members (Student): 4 $80 Member Loans: 1 $1000 Member C -Shares $2000 Sale of COVID Masks (Donation by $612 MaryAnn Friedrichs) Sale of St. John's Abbey Adirondack $5200 Chairs Donations/Register Round -up Donations $1011 TOTAL $12503 Repairs to coolers: SCR Date Cost Compressor not pumping. Replaced. 4/18 $3,343.79 Bad condenser fan motor. Replaced. 4/28 $533.42 Drain line plugged. Blew out drain line. 5/22 $334.00 Fans not running. Replaced pressure 6/2 $414.93 switch. Fixed leaky Shrader valve. Added refrigerant. Fans not running. Too much 6/8 $0.00 refrigerant which was causing "stripping on high head pressure." Technician took out 2lbs of refrigerant. No charge to fix. TOTAL $4626.14 INVENTORY SPENDING January February March April May June Total Inventory Spending $24517.07 $23683.27 $28809.62 $39945.82 $31135.69 $40676.53 Total Sales (includes Consignment & $30339.00 $32759.00 $53441.00 $49197.00 $64071.00 $51523.00 May Consignment plant sale) We have been raising and setting aside funds for the Cooler Replacement Project: $12,500 since January. However, a lot of what we have raised has had to be transferred to some unanticipated costs: -Cooler Repairs: More than $4,600 -COVID-19 Related Inventory Costs: More than $8,000. As an essential food business, we have seen increased sales since the pandemic began. But we have had to spend a lot upfront to boost our Inventory (and to spend on pandemic -related items, such as Plexiglass shield, disinfectant, disposable masks and gloves for customers, etc). Bottom line: The $12,500 we hoped to put toward this project is now $5.000. We are asking for $25,000 from the City of St. Joseph Revolving Loan Fund. Minnesota Street Market. ANTICIPATED JOBS 2020 Anticipated jobs created or retained within 12 months of Project Completion Position Name Total # of Jobs Weekly hours Current Annual Anticipated Hiring Date Hours/Job General Manager 1 20 1040 Existing employee Purchasing Manager 1 30 1560 Existing employee Produce Coordinator 1 30 1560 Existing employee Data Entry/Cashier 1 20 1040 Existing employee Produce Assistant/Cashier 1 4 208 Existing employee r j Cashier 1 4 208 Existing employee Student Workers 3 17 884 Existing employees Display/Merchandiser Coordinator 1 5 260 Existing employee 10 The table shows existing jobs for 2020. With project completion. we would hope to increase invento , sales and work hours: -Increase General Manager hours to 30/hours/week (from 20/hours/week). That would be 1560 hours/year. -increase Data Entry/Cashier position hours to 30/hours/week (from 20/hours/week), adding responsibilities. That would be 1560 hours/year. We would expect to have a total of 10 employees — perhaps 12. BUSINESS PLAN Description of Business: Food & Art Cooperative A locally owned, independent grocery store. Buying from local growers and suppliers. Supplying natural, healthy foods. Providing art and crafted goods from local artisans. Ownership We are a cooperative association under Minnesota Statutes Chapter 308B. Individuals and organizations become member -owners by buying $100 worth of voting stock on a "one member, one vote" basis. The member -owners elect a Board of Directors, which must be "no less than five (5) and no more than twenty (20)" according to the bylaws. Our Member -Owners We began in 2011 with 229 paid member -owners ($100 equity owners) and 27 student members ($20 student non- equity members). As of the end of 2019, we had 604 paid member -owners ($100 equity owners) and 144 student members ($20 student non- equity members). As a college community, however, we do have regular turnover in student members -- and some turnover in faculty. Currentlym we have about 500 active members. 800 600 400 200 Regular Cumulative Student Cumulative 144 2011 2012 2013 2014 2015 2016 2017 2018 2019 Date Established: July 2011 We have all seen headlines like these: "Another small-town Minnesota grocery store calls it quits." In St. Joseph, we were one of those headlines in 2010: "Longtime St. Joseph grocery store to close." The Minnesota Street Market (St. Joseph Food and Art Cooperative) came about after Loso's Grocery Store, owned and operated by the Loso family from 1899 and located on St. Joseph's historic main street, closed in 2010. The community came together and re -opened the store in July 2011 as a cooperative, with area residents putting up $100 each to become member -owners. Many also put forward funds for a capital campaign: St. John's Abbey, College of St. Benedict, the Sisters of the Order of St. Benedict, local businesses and individuals. The City of St. Joseph loaned funds. Products/Services We provide locally sourced bread, cheese, eggs, flour, honey, maple syrup, meat and poultry, milk, vegetables, soaps, candles and more from dozens of small local growers and artisans. We provide natural and organic food and grocery items. Other: The Minnesota Street Market also is a locus of community. We reach out to the community with events ranging from seed -shares and how-to sessions to documentaries to "Meet the Producer" and food sampling events. These have been put on hold since mid-March due to the COVID-19 pandemic. We provide food to the St. Joseph Food Shelf. We order organic produce for the Local Blend coffee shop. Management See organizational chart and current board of directors. U 4-1 U rn r-4 Cd 9 .O 4-0 Cd u N M d ,44 A Minnesota Street Market. Board of Directors. January 2020. Bylaws: "The number of directors of this association shall be no less that five (5) and no more than twenty (20), each of whom shall be a member of the association." Term: 3 years ( Name of Director Position Occupation Date Nominated Jim Degiovanni President Retired Attorney/Farmer May 2016 j Corrie Grosse Vice President University Teacher + May 2018 Patricia Weishaar Secretary University Administrator May 2015 Theresa Johnson Director Retired university May 2015 department coordinator IJohn Merkle Director University Teacher May 2017 Rachel Brodeur Director University Sustainability May 2019 Coordinator Ray Sjogren Director Social Worker May 2018 Grant Stromgren Director Information Technology May 2017 Specialist Lisa Lindgren Director Retired Business May 2018 Professor Kathy Doyle Director Bookkeeper, Local May 2018 Small Business Derik Weldon Director Physician May 2018 j Danee Voss Director College Student May 2018 Brigid Mark Director College Student May 2018 L_ _- --- Changes to Minnesota Street Market Board of Directors over the past year. Elissa Brown, CSB/SJU University Sustainability Coordinator, moved to another job. Replaced by Rachel Brodeur, the new University Sustainability Coordinator. Pia Lopez, who was Board President, was hired January 2020 as the Minnesota Street Market General Manager. She resigned from the Board. Jim Degiovanni was elected president. Board of Directors and management: We have a strong, committed and engaged board of directors that works well as a team. This is a board that is committed to the success of the co-op — as shown in volunteerism beyond monthly board meetings and in contributing financially to the well-being of the cooperative. All are among our top shoppers. All but the two student board members have invested in $1,000 C -Shares or made donations of $500 or more. This team has the fiscal and administrative capability to deliver results — to grow sales and net income. Future Plans A consultant in January 2019 told us: "With the facility you have, reaching $1,000,000 in annual sales is very achievable. But you'll have to buy enough to sell to get there. It's not too early to start thinking about what working at a million -dollar store will be like." That is our aim. Finances Our 10 -Year Pro -Forma done by CDS Consulting in 2011 projected that we would have negative net income in our first five years, then break even, then have positive net income. As with many food co-ops, and the grocery industry generally, we had a dip in sales in 2016 and 2017. We took the opportunity during this major disruption nationally in the grocery industry to refocus on our niche (fresh, local convenience with a distinctive offer of food and art on a historic small town main street). We reined in expenses and worked on growing sales. In 2017, we had a very small net profit ($4,500) and in 2018 a small net loss (-$3,600). Through all this, it has been money -in, money -out. We have had no reserves and we have had to be enterprising in raising working capital to expand inventory and complete capital projects. We also have had to be enterprising in tapping the skills, talents and enthusiasm of individuals in our community. After stabilizing our finances in 2017 and 2018, we approached 2019 with a spirit of fearlessness and willingness to take risks. We had our best sales year ever in 2019 — but also hit some very rough patches. There was a major "credit card snafu" in mid-August when we updated software for our Point of Sale system. The Market experimented with new inventory spending and staffing structure and more. Some things worked, some didn't. We ended the 2019 year with a big net loss — and cash flow problems. The Market learned some hard lessons. We changed management structure in 2020, moving Pia Lopez from Board President to General Manager, hiring Danielle Taylor as Purchasing Manager. We have been working hard on product mix and margin analysis. 2020 Turnaround Year We have been working on a number of fronts, again, to stabilize finances and get working capital to expand inventory. --Goal 1: Increase average "basket size" (sales per customer transaction). -- Goal 2: Increase daily foot traffic (average # customers per day) Since the pandemic, our sales have increased substantially year -over -year Sales Increase/ Decrease since Twin Cities food Food co-ops pandemic MnStMkt co-ops nationally March 51.6% April 48.2% -3.0% -5.7% May �F 70.7% 1.0% -1.4% June 55.4%1 1 This is in contrast to co-op's in the Twin Cities and nationally: htt s://www.startribune.com/twin-cities-food-co-o s-haven-t-fared-as-well-as- su ermarkets-in- andemic/571359302/ —Safety. No crowds or lines. We also were early to wear masks, encourage handwashing and provide gloves to customers, disinfect high -use surfaces often, socially distance as much as possible. —People making fewer shopping trips to minimize public exposure: We have been helped by this. Our average sale ("basket size") has increased by a lot (50%). —Online ordering: We were quick to offer home delivery and curbside pickup. Yes, it is labor-intensive, but we recruited volunteers to help. We did the "low -rent" version of online ordering: free Google Form. Not a high percentage of our sales, but a nice boost: "basket size" is higher than the average in-store purchase. —Organics, local and regional items: We find that our customers do want to support local. Many others specifically ask for organic foods: They want to avoid chemicals, additives, pesticides in their foods to boost their immunity during the pandemic. Many have told us that even though they spend more on groceries at MnStMkt, they still are saving money compared to pre -pandemic because they are not spending dollars on eating out. They do seem to understand why our prices may be a little higher -- quality does matter (as with a mobile phone or tennis shoes) and the little guys just don't have the "economies of scale" that the mega -marts have. We seem to have been better supplied than the big guys on a lot of items -- we are able to just call up our local folks to get stuff. We go get it ourselves if they can't deliver right away. We hope to build on this sort of "return to basics" -- cooking at home, supporting local -- beyond the pandemic. We expect to see some drop-off in sales as more restaurants and food outlets re -open. We believe $495,000-$500,000 is an attainable sales goal for the year. Current indebtedness As of June 30, we owe $28,500 on Stearns Electric loan. Monthly payments of $462.47 have been suspended until November. We have $6,000 in Member Loans. No monthly payments. These 4 loans mature between 2022 and 2025. We have a $10,000 Line of Credit with Central Minnesota Credit Union. Paid off in April. Currently no payments. $10,000 available as of June 30. We have a forgiveable SBA Paycheck Protection Program loan of $14,900. We have met requirements to make this forgiveable. Partnership with St. Joseph The City of St. Joseph has been a partner with the Minnesota Street Market from the beginning in 2011 — with a $26,000 loan (paid off in August 2018). We would like to extend that partnership with a new $25,000 loan from the City's Revolving Loan Fund, contributing "to a vibrant,friendly downtown in the Central Business District." Thank you for this opportunity!