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CR 11-096 Application for Open to Businessis -.4m October 13, 2011 City of tlopkin5 Council Report 2011-096 APPLICATION FOR OPEN TO BUSINESS Proposed Action Staff recommends adoption of the following motion: Move to approve Resolution 2011-056, authorizing the application to Hennepin County's Open to Business Program. With this motion the resolution will be forwarded to Hennepin County to be included with the City's application to the program. Overview Hennepin County has made available funding to help provide a business assistance program called Open to Business. The program offers one-on-one consultation services to new, existing, or expanding businesses, as well as access to a variety of loan programs. The cost to offer the services is proposed to be $10,000 for a one-year membership. Hennepin County has set aside funds to provide $5,000 as match, and the City is responsible for the remaining $5,000. The Hopkins Business & Civic Association has committed to providing 50 percent of the local match, leaving $2,500 that the City of Hopkins would be asked to provide. There is no cost to the business owner to receive • the consultation services. The City's responsibility under the program is to market the program and make sure it is utilized. We will work closely with HBCA, the Blake Road Community Collaborative and other community partners to accomplish this and will utilize all of our communication tools to get the word out. The program will be evaluated after one year. Primary Issues to Consider For a relatively low fee, the City of Hopkins will be able to offer business owners a valuable service that will be evaluated based on number served, loan activity and customer satisfaction. Funds for the program will come from the Think Hopkins budget. Supporting Information • Resolution 2011-056 Hennepin County 2011 Economic Development Initiative "Open to Business" Request for Matching Funds Kersten Elverum Director of Planning & Development i Financial Impact: $2500 Budgeted: Y Source: #204 Account — marketing budget Related Documents (CIP, ERP, etc.): Notes: • Hennepin County 2011 Economic Development Request for Matching Funds Initiative "Open to Business" Instructions Please complete the following questions and return completed form along with a copy of the city council resolution described above to the following address by mail or e-mail no later than October 15, 2011. Patricia L. Fitzgerald, Principal Planning Analyst Hennepin County Department of Housing, Community Works and Transit 417 North Fifth Street Minneapolis, Minnesota 55401-1397 DIRECT: 612-543-0864 E-MAIL: patricia.I.fitzgerald@co.hennepin.mn.us Applicant(s): City of Hopkins Street address: 1010 1" St S Zip code: 55343 Primary contact person: Tara Beard Phone: 612-722-2022 E-mail: tbeard@hopkinsmn.com • Amount of HCHRA funds requested: $ $5,000 Population size of participating municipality/municipalities: 17,300 Annual fee for "Open to Business" per above fee schedule: $10,000 Source of funds for local match: Hopkins Civic and Business Association, City of Hopkins marketing funds. Proposed timeframe for "Open to Business": Start date March 1, 2012 End date Feb 28, 2013 Explain the need for entrepreneur development and small business technical assistance services in your community and the location(s) in your community that would most likely receive this development assistance. Hopkins is known for its community of small businesses, largely centered on Downtown Hopkins' Mainstreet. The city does not currently offer any sort of formal business assistance, though inquiries from the business community are made frequently. Hopkins businesses have been affected by the current economic downturn, and have always seeked to be more competitive in an increasingly "big box" world. For these reasons the need for entrepreneur development and small business assistance is very high. 2. How would your community promote the "Open to Business" initiative to your entrepreneurs and small businesses? The city has a close relationship with the Hopkins Civic and Business Association (HBCA), whose membership includes many potiential "Open to • Business" users. Through monthly meetings, events and a newsletter "Open to Business" would be heavily promoted to HBCA members. The City also has multiple tools to promote initiatives such as "Open to Business": Connections, an email newsletter, Highlights, a print newsletter, two websites and a promotional campaign, Think Hopkins! 2 • 3. How does the "Open to Business" strategy complement other economic development initiatives in your community, or would this be a new venture for your community? If this is a new venture, explain how the initiative fits your community's goals and plans. "Open to Business" would be a new venture for the community, one that would allow the city to direct its many inquiries for small business assitance to a useful tool. In the past the city has provided small business loans for property acquisition and improvement, but the funds for this program have not been available for some time. Hopkins is known for its small town feel, and the personalized, human scale of "Open to Business" is a great fit for the type of assistance that is needed. 4. Which staff would oversee the "Open to Business" strategy and how would the outcomes and experiences of this initiative be tracked and utilized? Planning and Economic Development (PED) staff, primarily the Community Development Coordinator and the PED Director, would oversee the "Open to Business" strategy in close partnership with the NBCA. The city would seek data from "Open to Business" about the number of calls received and assisted from Hopkins, and would pursue a evaluation process for participating businesses. The city would also ellicit anecdotal feedback from participating businesses, and all information would be used to determine the need to continue the program or ways to modify the program that would work better for users. 0 0 • • CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2011-056 RESOLUTION AUTHORIZING APPLICATION TO THE HENNEPIN COUNTY OPEN TO BUSINESS PROGRAM WHEREAS, the Hennepin County Housing and Redevelopment Authority is sponsoring a business assistance program offered through the Metropolitan Consortium of Community Developers and providing financial assistance for the service; and WHEREAS, the City of Hopkins has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration, and WHEREAS, the sources and amounts of local match identified in the applications are committed to the project, and WHEREAS, the City and the Hopkins Business and Civic Association have a common goal of strengthening the viability of Hopkins businesses, and WHEREAS, the City of Hopkins believes the Open to Business program will help to achieve this goal. THEREFORE, BE IT RESOLVED, that the City of Hopkins supports the Hennepin County Open to Business grant application submitted on October 15, 2011. BE IT FURTHER RESOLVED that upon approval of its application, the City of Hopkins may enter into an agreement with Hennepin County for the above referenced project. Adopted this 18th day of October 2011. Attest: Kristine A. Luedke, City Clerk Eugene J. Maxwell, Mayor