VII.3. Resolution Approving Economic Support to Businesses & Individuals; BishopAugust 18, 2020 Council Report 2020-060
RESOLUTION APPROVING ECONOMIC SUPPORT
TO BUSINESSES & INDIVIDUALS
Proposed Action.
Staff recommends that the Council approve the following motion: Motion to Approve Resolution
2020-042 Approving Economic Support to Businesses & Individuals.
Overview:
Due to the COVID-19 pandemic, Minnesota Governor Walz has issued needed executive orders
that have impacted businesses and individuals. In recognition of these impacts staff is proposing
a plan to provide economic support to Hopkins’ businesses and residents. The City has also
received $1.485 million of Coronavirus Aid, Relief, and Economic Security (CARES) Act
funding. The CARES funding must be used for eligible expenditures, including providing
economic support to businesses and individuals.
Staff recommends authorizing the City Manager to create programs or enter into agreements for
the following three purposes:
1.Establish the Hopkins Small Business Emergency Assistance Loan Program. The
eligibility requirements, loan guidelines and application process are still being finalized.
The resolution is authorizing a maximum of $100,000 for this program, with individual
loans of up to $5,000. The loans are non-interest bearing and forgivable.
2.Establish an Emergency Housing Assistance Program. The eligibility requirements are
still being determined. The City would enter into an agreement with ICA Food Shelf to
administer the program. The resolution is authorizing a maximum of $50,000 for this
program.
3.Enter into a service agreement with Hopkins Public Schools to provide child care for
essential workers for an amount of up to $50,000. The terms of the agreement are still
being established.
The total amount of programs and agreements being considered is $200,000.
Primary Issues to Consider:
•CARES Act
•Financial Impacts
Supporting Information:
•Draft Resolution 2020-042
_________________________
Nick Bishop, Finance Director
CARES Act
The City has received a $1.485 million distribution of CARES act funding. A broad range of
uses are permissible, which include medical expenses, public health expenses, payroll expenses,
compliance with public health measures and economic support. Any expenses in these
categories that are considered necessary due to COVID-19, not included in the City’s most
recent budget and spent between March 1 and November 15 are eligible. Any unexpended funds
will be transferred to Hennepin County Medical Center. The City has previously refunded
$37,401of on-sale liquor licenses to be reimbursed through the CARES act.
Financial Impacts
The resolution authorizes expenditures of $200,000 for economic support purposes within
Hopkins. Staff believes that all expenditures are eligible for reimbursement.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLTUION 2020-042
RESOLUTION APPROVING ECONOMIC SUPPORT
TO BUSINESSES & INDIVIDUALS
WHEREAS, Novel Coronavirus Disease 2019, commonly known as “COVID-19,” which is a
respiratory disease that can result in serious injury or death, is spreading globally and has been
identified by the World Health Organization (“WHO”) as a pandemic; and
WHEREAS, on March 13, 2020, President Donald Trump declared that the COVID-19 outbreak
in the United States constitutes a National Emergency; and
WHEREAS, on March 13, 2020, Governor Tim Walz declared a Peacetime State of Emergency
to authorize any and all necessary resources to be used in support of the COVID-19 response;
The Governor has subsequently issued 80 additional Executive Orders to combat the impacts of
COVID-19 within the State of Minnesota, which have created a great deal of uncertainty and
dramatically impacted local businesses and residents.
WHEREAS, on March 16, 2020, the City of Hopkins declared that the COVID-19 pandemic
constitutes a local emergency within the City of Hopkins, effective March 16, 2020, with all the
powers and responsibilities attending thereto as provided in Minn. Stat. Ch. 12, and as otherwise
provided for in the City of Hopkins’ Charter, City Code and Emergency Operations Plan (EOP);
and
WHEREAS, due to these needed actions, many businesses have been greatly impacted by a
significant loss of revenue and have caused individuals to experience financial and other
hardships; and
WHEREAS, a request has been made to consider refunds of liquor license fees during the time
of closure of bars and restaurants.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, that:
1.The City will establish a “Small Business Emergency Forgivable Loan Program”. The
City authorizes a total of $100,000 to be used for the loan program with individual loans
of up to $5,000.
2.The City will establish an “Emergency Housing Assistance Program” to provide
temporary relief for households in the City that are experiencing financial hardships. The
City authorizes up to $50,000 to be used for the program.
3. The City will enter into an agreement with Hopkins Public Schools to provide child care
for essential workers. The City authorizes a contract amount of up to $50,000 for this
program.
2. The City Manager and staff are hereby authorized and directed to create such programs
and enter into agreements.
Adopted by the City Council of the City of Hopkins on this 18th day of August, 2020.
__________________________________
Jason Gadd, Mayor
ATTEST
_______________________________
Amy Domeier, City Clerk