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IV.5. Contract for Services for the Open to Business Program; Youngquist 1 Contract for Services Between the City of Hopkins & Metropolitan Consortium of Community Developers for the Open to Business Program THIS AGREEMENT, is made and entered into as of the 1st day of January, 2019, between the City of Hopkins and Metropolitan Consortium of Community Developers, (herein called “MCCD”). WHEREAS, the City of Hopkins wishes to retain an entity with the capacity to provide small business technical assistance to existing businesses and those parties interested in opening a business in Hopkins(the “Initiative”) and WHEREAS, MCCD has represented itself as competent to provide the services required to administer and carry out the Initiative; and WHEREAS, the City of Hopkins wishes to engage MCCD to provide said services necessary to carry out the Initiative; NOW THEREFORE, it is agreed between the parties hereto that; 1. TIME OF PERFORMANCE The service to be provided by MCCD shall commence on January 1, 2019 and unless canceled by either party, automatically renew January 1, 2020 and January 1, 2021. Either party may, at their sole discretion and without cause, cancel any remaining years covered under this agreement by providing written notice to the other party at least 30 days prior to renewal. Each Party agrees that a Party that opts out of the contract under these terms shall be subject to no penalty, and held harmless for future liability or obligation related to the terms of this agreement. All services, documents, and information to be furnished or performed by MCCD in order to carry out the Initiative shall be furnished or performed as promptly as possible, and with the fullest due diligence. 2. COMPENSATION Total compensation to MCCD shall be $10,000 for a one year period (the Contract Amount) to manage the Hopkins Open to Business program. The Contract Amount will be paid in two equal installments: $5,000 due and payable by the City of Hopkins upon execution of this Agreement, and $5,000 invoiced and dated on or about 6 months from the agreement date, payable by Hennepin County Housing Redevelopment Authority. 3. SCOPE OF SERVICES 2 MCCD will use the Contract Amount to provide technical assistance to existing Hopkins businesses, residents and parties interested in starting a business in Hopkins; (See Exhibit A Scope of Services-Hopkins Open to Business Program). 4. REPORTING MCCD agrees to submit reports related to its operation of the Hopkins Open to Business program. Items to be reported on include, but are not limited to, the following:  Number of inquiries  Hours of technical assistance provided  Type of assistance provided  Type of business  Annual sales revenue  Number of businesses opened  Number of business expanded/stabilized  Number and amounts of financing packages  Demographic information on entrepreneurs The required reporting schedule is as follows: January – June activity, report due July 31st January – December activity, report due January 31st MCCD will provide additional reports as requested by the City of Hopkins. 5. PERSONNEL MCCD represents that it has, or will secure, at its own expense, all personnel required in performing the services to carry out the Initiative. Such personnel shall not be employees of or have any contractual relationship with the City of Hopkins. No tenure or any other rights or benefits, including worker’s compensation, unemployment insurance, medical care, sick leave, vacation pay, severance pay, or any other benefits available to City of Hopkins employees shall accrue to MCCD or employees of MCCD performing services under this agreement. The MCCD is an independent contractor. 3 All of the services required to carry out the Initiative will be performed by MCCD, and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. 6. INTEREST OF MEMBERS OF THE CITY, EDA AND OTHERS No officer, member, or employee of the City of Hopkins, and no member of its governing body, and no other public official or governing body of the locality in which the Initiative is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Initiative, shall participate in the decision relating to this Agreement which affects his/her personal interest or the interest of any corporation, partnership, or association in which he/she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement or proceeds thereof. 7. ASSIGNABILTY MCCD shall not assign any interest in this Agreement, and shall not transfer any interest in the same without the prior written approval of the City of Hopkins thereto. 8. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal and state laws, statutes and applicable regulations and the ordinances of the City of Hopkins. 9. INSURANCE MCCD agrees to provide proof of workers’ compensation and comprehensive general liability insurance. Comprehensive general liability insurance shall be in the minimum amount of $1,500,000 10. HOLD HARMLESS MCCD agrees to defend, protect, indemnify and hold harmless the City of Hopkins, their agents, officers and employees harmless from and against all liabilities, losses, damages, costs, and expenses, whether personal, property, or contractual, including reasonable attorney’s fees, arising out of, or related to the administration and operation of the Initiative, and from any act of negligence of MCCD, its officers, employees, servants, agents, or contractors. The City of Hopkins agree to defend, protect, indemnify and hold harmless the MCCD, its agents, officers and employees harmless from and against all liabilities, losses, damages, costs, and expenses, whether personal, property, or contractual, including reasonable attorney’s fees, arising out of, or related to the administration and operation of the Initiative, and from any act of negligence of the City of Hopkins, their officers, employees, servants, agents, or contractors. 11. NOTICES 4 A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail, postage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD, is addressed or delivered personally to: Lee Hall, Chief Operating Officer Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis, MN 55407 (b) In the case of the City of Hopkins: Kersten Elverum Director of Economic Development City of Hopkins 1010 1st S Hopkins, MN 55343 or at such other address with respect to any party as that party may designate in writing and forward to the other as provide in the Section. 12. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first written above. CITY OF HOPKINS METROPOLITAN CONSORTIUM OF COMMUNITY DEVELOPERS By: By: Jim Roth, Its President/CEO And by; By _________________________________ 5 Exhibit A Scope of Services Open for Business Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Hopkins businesses, Hopkins residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Hopkins. Technical assistance includes, but is not limited to, the following:  Business plan development  Feasibility analysis  Marketing,  Cashflow and other financial projection development  Operational analysis  City and State licensing and regulatory assistance  Loan packaging, and other assistance in obtaining financing  Help in obtaining competent legal advice MCCD will also provide technical assistance on a walk-in basis monthly in Hopkins City Hall or as requested at a place of business within Hopkins. Open for Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD’s Emerging Small Business Loan Program (see Exhibit B Small Business Loan Program Guidelines below). MCCD also provides its financing in partnership other community lenders, banks or both. 6 EXHIBIT B Small Business Loan Program Guidelines Loan Amounts:  Up to $25,000 for start-up businesses  Larger financing packages for established businesses  Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects:  Borrowers must be a “for-profit” business.  Business must be complimentary to existing business community.  Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds:  Loan proceeds can be used for working capital, inventory, building and equipment and general business operations. Interest Rates:  Loan interest rate is dependent on use, term and other factors, not to exceed 10%. Loan Term Length:  Loan repayment terms will generally range from three to five years, but may be substantially longer for major asset financing such as commercial property. Fees and Charges:  Borrowers are responsible for paying all customary legal and other loan closing costs.