Greater Minnesota Business Development Public Infrastructure Grant Program (BDPI)

Minnesota Statute 116J.431

Application Packet Revised 4/27/17

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BACKGROUND/PURPOSE The Minnesota Department of Employment and Economic Development (DEED) has the authority to award grants to assist eligible applicants with the development of public and private infrastructure for eligible business improvement projects and industrial parks.

ELIGIBLE APPLICANTSEligible applicants for the Greater Minnesota BDPI Grant Program include statutory home rule charter cities and counties located outside the metropolitan area.1 Note: The owner of the Public Infrastructure must be the applicant. If an application is awarded, DEED will enter into a grant agreement with the eligible applicant in order to provide construction funds. If the project involves any privately- owned infrastructure, the applicant must then provide the appropriate BDPI funds for the infrastructure to the private entity for construction.

ELIGIBLE PROJECTSEconomic development projects relating to manufacturing, technology, warehousing and distribution, research and development, agricultural processing or industrial park development that would be used for eligible projects . Projects cannot relocate their operation from another location in the state, unless the DEED Commissioner determines the project cannot be reasonably accommodated within the county or city in which the business is currently located, or the business would otherwise relocate to another state.

Those interested in the BDPI program are strongly encouraged to contact the appropriate community finance staff at DEED before completing this application. Interaction with DEED staff could provide valuable input regarding eligibility, selection, and availability of funds.

INELIGIBLE PROJECTSProjects that have already been awarded to a contractor, retail development or office space development, except as incidental to an eligible purpose. Medical clinics, hotels, casinos and sports facilities are also ineligible for funds.

Retail is defined as a business that is primarily engaged in selling goods or services directly to consumers at the site.

ELIGIBLE PUBLIC INFRASTRUCTUREEligible public infrastructure for BDPI funds is defined as publicly owned, physical infrastructure necessary to support economic development projects, including, but not limited to sewers, water supply systems, utility extensions, streets, wastewater treatment systems, storm water management systems and facilities for pretreatment of wastewater to remove phosphorus.

ELIGIBLE PRIVATE INFRASTRUCTURE Storage ponds and site preparation of property owned and to be used by private entities are eligible as private infrastructure. TYPE OF FUNDING DEED can provide funds to eligible applicants as a grant for not more than 50 percent of the total eligible public infrastructure costs.

MATCH/FULL FUNDING REQUIREMENTS Eligible applicants shall provide evidence of non-state matching funds equal to or exceeding 50% of the total project’s eligible costs. Eligible match is limited to eligible public infrastructure, as outlined above, and the value of site preparation for the infrastructure.

BDPI funds will be the last funds committed to a project. The match, and any other funds that are necessary in order for the project to be completed, will need to be committed and documented as full funding. Full funding documentation for the project will need to be approved by DEED and, if necessary, the Department of Management and Budget (MMB) prior to an award notice.

1 Cities and counties located outside the metropolitan area are defined in Minnesota Statues, Section 473.121, subdivision 2.2

Examples of Documentation of other funds include:

Cash in hand – bank statements for segregated accounts, copies of checks Federal funds – line items in approved federal budgets, grant award letters from federal agencies Local government match – line items in approved local government budgets, executed loan agreements with lenders Private contributions – pledges which have been received in cash (see documentation for “Cash” above) or that are

backed by a loan or irrevocable letter of credit; future pledges by themselves are not sufficient In-kind contributions (acquisition) – documentation must be received with the name of the contributor, a description and

the value of the contribution, and details of how the value was determined

Local bond as other funds documentation requirements:

Bond sale resolutions will be necessary to secure an award notice Evidence of a bond purchase agreement will be necessary prior to an awarded applicant receiving a grant agreement

APPLICATION PARAMETERSThe Department of Employment and Economic Development (DEED) shall accept applications on an open application (pipeline) basis until all funds are committed. DEED reserves the right to modify or withdraw access to this application at any time and is not responsible to reimburse an applicant for costs incurred in the preparation or submittal of their application.

MAXIMUM AWARDA statutory limit of a $2,000,000 over a two year period, based on DEED award date, per community has been established for the BDPI program.

Award amounts shall be determined solely by DEED based on the number of eligible applications and funding availability.

TIMETABLE FOR COMPLETION OF AWARDSProjects should begin within one year of any award and will need to be completed within 18 months of execution of a grant agreement, unless an extension is requested by the awarded community in writing and approved by DEED. If the project is not proceeding in a timely manner, DEED has the authority to cancel the award. A project timetable on page 11 will need to be completed.

APPLICATION REQUIREMENTSApplications will be accepted and awarded on an open application basis (pipeline) until all funds are committed. Please submit one original and one copy of the application to DEED, the approving authority, at the address listed below. Electronic or fax submissions will not be accepted.

Minnesota Department of Employment and Economic Development/Community Assistance1st National Bank Building332 Minnesota Street, Suite E200St. Paul, Minnesota 55101-1351

ResolutionA resolution indicating applicant eligibility, approval of the project, and the commitment of matching and any other funds necessary to complete the project, must be completed and submitted with the application. (A sample resolution has been provided on page 13 for your convenience). You may choose to re-format this resolution but make sure to include all of the statements that appear in the resolution.Legal DescriptionThe legal description may need to be recorded and provided to DEED if the applicant receives an award notice and prior to a grant agreement being proposed for signing. A waiver declaration from MMB may be used in place of a declaration if applicant right of way(s) is already in place. Please do not take any steps to record a declaration or receive a waiver from MMB until direction from DEED is provided.

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Conflict of Interest The “Conflict of Interest Disclosure Form” on page 14 must be completed, signed and provided with the application submittal. REPORTING AND IMPLEMENTATION REQUIREMENTSThe completion of annual progress reports to DEED may be required over the life of the grant. A final report and report on construction jobs created and/or retained to construct the project will be required before the final grant proceeds are disbursed. Reporting after project completion may be necessary if jobs or business goals are not met at the time of project completion. DEED will provide each awarded local governmental unit with all necessary reporting documents.

Grant payments will be processed on a reimbursement basis. Supporting documentation, including invoices and canceled checks, for the incurred costs, including eligible match, must be included with each pay request in order for DEED to process payment request(s).

Copies of all permits necessary for the project must be provided to DEED prior to DEED issuing a pay request form. Projects must use American-made steel, where feasible. Prevailing wage rates may apply to construction contracts and during construction.

CONTACTSFor further information, contact the Small Cities Development program person assigned to the area.

Business Development Public Infrastructure Application Cover Sheet

The Cover Sheet must be completed by all applicants requesting financial assistance.

Project Name:_____________________________________________

Amount of BDPI request $     

House District:_____________ Applicant (City or County):____________________________Minnesota Tax Identification Number:__________________________Federal Tax Identification Number:__________________________

Person Completing Application: ____________________________________Phone:____________________________E-Mail:____________________________

Name of the entity who would be responsible for submission of payment request forms to DEED, if the project is awarded

Payment Contact Person Name:_______________________________________Title: _______________________________________Phone:____________________________ E-Mail:____________________________

Name of the entity who is responsible for grant implementation and reporting, if the project is awarded 4

Name and Title: _______________________________________Phone:____________________________E-Mail:____________________________

Check the category for how the nature of the project meets BDPI eligibility criteria.

___Manufacturing ___Technology ___Warehousing and Distribution ___Research and Development ___Agricultural Processing

Defined as transforming, packaging, sorting, or grading livestock or livestock products into goods that are used for intermediate or final consumption; including goods for nonfood use

___Industrial Park with no current business commitment. Future businesses must meet a criteria above Check the type of BDPI Project (Can be a combination of privately-owned infrastructure and new industrial park development or combination of privately-owned infrastructure and single business improvement/expansion project).

___ New Industrial Park Development - Would be used by manufacturing, technology, warehousing and distribution, research and development, or agricultural processing businesses as defined above

___ Single Business Improvement/Expansion (Not part of a larger industrial park) ___ Privately-owned infrastructure

___Combination of privately-owned infrastructure and new industrial park development or combination of privately-owned infrastructure and single business expansion project

Conformance With Grant Management Policy, per Minn. Stat. 16B.97

Has the eligible applicant had a previous BDPI grant or grants?       If no, skip the questions on this page. If yes, please answer the following questions. If the eligible applicant has had more than one previous BDPI grant, attach extra pages as necessary for each previous grant.

BDPI grant number:      

Amount of BDPI award:      

Amount of BDPI award spent:      

Grant period effective date:      

Grant period end date:      

Description and purpose of grant:      

Were there additional conditions placed on the grant through the pre-award review?      

Was the project completed?      

Was fraud identified duringgrant performance?      

Was the grant terminated for cause?      

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Is the city or county current on all reporting, including after Closeout, reporting, if applicable?      

Have there been, or were there any significant changes during the grantperiod? If yes, describe:      

Has the city or county adequately responded to any DEED or independent auditor monitoring, financialreconciliation, or audit issues regarding this grant?      

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Business Development Public Infrastructure (BDPI)Application

Project Summary Narrative

Provide a brief project summary here:      

General Project Questions Important: If any question(s) are not applicable, please explain why.

Which entity will maintain the infrastructure?       Does the applicant have the site control necessary for the project?       If site control has not been secured, provide appropriate evidence (attach if necessary) relating to

acquisition or annexation that ensures timely completion of the project.       Has the project started construction and/or been awarded to a contractor?       If yes, please

contact SCDP staff regarding eligibility. The DEED portion of any project cannot be assessed. Will any other portion of this project be

assessed to those who benefit or would benefit from the infrastructure?       If assessments are planned, please explain the parameters.       Would this project involve the relocation of an existing business that is currently located in a

different community in Minnesota?       If a relocation is involved, contact DEED staff prior to submitting an application.

Describe the status of permitting necessary for the project being secured. Include permit expectations and timeframes for approval:      

Explain how the project is expected to result in or will attract substantial public and private capital investment and provide substantial economic benefit to the applying community.      

Explain how the project is expected to or will create or retain full- time jobs.      

Project specific questions

An industrial park or industrial park expansion project would create infrastructure to accommodate more than one eligible business and would include speculative industrial parks. A Single Business Improvement/Expansion project that is not part of a larger industrial park project would create infrastructure to accommodate the expansion, relocation, and/or improvement needs of one business or parcel.

If you have questions on whether or not the proposed project best fits an industrial park project or a single business improvement project, please consult with your SCDP Representative.

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PART A For projects that are requesting funds for an industrial park or an industrial park expansion, the following questions must be answered: Important: If any questions are not applicable, please explain why.

Is there is an existing industrial park in the community that is not at full capacity?       If there is a current park not at full capacity, please explain why additional industrial park space is

needed.       Describe the size of the proposed park in acres, the number of lots and the lot sizes in acres.

      If there is a business or businesses interested in locating in the park, provide the following:

A. Describe how the operations of the business(es) that are interested in space in the park meet the criteria of an eligible project (see page 5):      

B. Describe the business(s) schedule for occupancy in the park:       If there are no eligible businesses that are currently planning on locating in the park, provide the

goal on the number of eligible businesses that will locate in the park within the next 5 years.      

Provide the following job information related to this project. If there are no businesses currently planning on locating in the park, this section will not apply:

Expected Jobs The expected number of full-time equivalent jobs that will be created with this project within the

next 5 years.       The expected hourly pay rate(s) for the created jobs. If the jobs have different levels of pay,

outline specific numbers for each pay scale.       The expected hourly dollar value of fringe benefits for the created jobs. If the jobs have different

values of fringes, outline specific numbers for each pay scale.       The timeline for the job creation.      

Retained Jobs The number of full-time equivalent jobs that would be retained but/for the project. 3 The hourly pay rate(s) of retained jobs. If the jobs have different levels of pay, outline specific

numbers for each pay scale.       The hourly dollar value of any fringes for retained jobs. If the jobs have different values of

fringes, outline specific numbers for each pay scale.      

PART BFor projects that relate to a single business improvement/expansion project that is not part of a larger industrial park or industrial park expansion, the following questions must be answered: Important: If any questions are not applicable, please explain why.

Describe how the operations of the business that is associated with the project meet the criteria of an eligible project (see page 5):      

The schedule for business’ completion and operation:       Provide the address for the project;       Describe how the project will increase the community’s tax base.       Provide evidence (by

attaching letters from city/county assessor), amounts and comparison from the previous tax year. Tax base increase should be calculated with projected business(es) in place.

Provide existing building size and dimensions and/or size and dimension of proposed business improvement;      

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Provide contact information for the business: (name, title, address, phone number, etc.). If there is a parent company, provide evidence that they support the plan.      

Provide the following job information related to this project:

Expected Jobs The expected number of full-time equivalent jobs that will be created with this project within the

next 5 years.       The expected hourly pay rate(s) for the created jobs. If the jobs have different levels of pay,

outline specific numbers for each pay scale.       The expected hourly dollar value of fringe benefits for the created jobs. If the jobs have different

values of fringes, outline specific numbers for each pay scale.       The timeline for the job creation.      

Retained Jobs The number of full-time equivalent jobs that would be retained but/for the project.       The hourly pay rate(s) of retained jobs. If the jobs have different levels of pay, outline specific

numbers for each pay scale.       The hourly dollar value of any fringes for retained jobs. If the jobs have different values of

fringes, outline specific numbers for each pay scale.      

PART C For projects that are requesting funds for private infrastructure, the following questions must be answered: Important: If any questions are not applicable, please explain why.

Name of the entity benefitting from the private infrastructure.       Address of the entity benefitting from the private infrastructure.       Name of entity who will own the private infrastructure.      

Project Financial InformationProvide a detailed sources and uses budget (see attached sample on next page) listing project activity line items, amount and source of funds for each line item, total project costs, and amount of BDPI funds requested for each line item. Costs incurred previous to a DEED award notice, except those for site preparation (as match), that relate to the project will not be eligible for BDPI or matching funds.

Contact #1 to verify commitment of other proposed funds (include city or county contact) Name/Title: _______________________________________Phone:____________________________E-Mail:____________________________Source Type (Grant, loan, bond, etc.):      Terms of loan or bond (length, rate), if applicable:      

Contact #2 (if applicable) to verify commitment of any other proposed funds Name/Title: _______________________________________Phone:____________________________E-Mail:____________________________Source Type (Grant, loan, bond, etc.):      Terms of loan or bond (length, rate), if applicable :      

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BDPI Sample Sources and Uses Budget

Use the following example format for the project sources and uses budget. Add rows or columns as necessary. BDPI funds cannot be used for previously paid capital costs. A final sources and uses outline will be provided to awarded projects by DEED with a grant agreement. See the match/full funding requirements section on page 3 for information about needed other source(s) documentation.

Project Activities DEED City/County Federal EDA Private TotalSanitary Sewer $250,000 $250,000Storm Sewer Blank45445

44$75,000 $75,000

Water $250,000 Blank Blank $250,000Streets $50,000 $200,000 $250,000Storage Pond* $100,000 $100,000Engineering*(construction-related, inspection, etc.)

$75,000 $75,000

Engineering and Admin (Design, legal, etc.) *

$35,000 $35,000

Total Costs $500,000 $235,000 $200,000 $100,000 $1,035,000

* Ponds are eligible as match for BDPI public infrastructure, but not for BDPI funds. Ponds are eligible for BDPI private infrastructure. Engineering incurred during construction; such as inspections and observation, is eligible for match. Administration, legal and engineering incurred before construction, such as design preparation, are not eligible for BDPI nor the match.

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Complete the timetable below. Per the project background above, DEED expects projects to begin within 12 months of the date that the project is awarded and completed within 18 months of when the project is awarded. Provide the month and year that each task has been completed, or is estimated to be completed:

Activity Date mm/yyProject site control secured, including easements (if applicable): Does the applicant have ownership or ownership interest in the land necessary for the project that allows the project to move forward. All permits in place: The date that all construction permits necessary for the project to be constructed are in place. These would include any state or local permits that are necessary. If other funding includes local bonding: Date projected for bond purchase agreement: Date that bonds are purchased by an investorBid process (advertisement, bids opened, contract awarded): Date that the bid process is over and a contract is awarded to a responsible contractor. Construction start date: The date when the contractor begins working on the project. Construction completion date: The date when construction is substantially complete and only minor punch list items remain.

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Attach the Following

Conflict of Interest Disclosure (see pages 4 and 14). Pre-engineering and/or an engineering report that corresponds with the project. The documents

will include an engineer’s estimate of project costs. A projection of the dollar amount of tax base increase as a result of the project from the county

auditor’s office (see page 8). Provide documentation of full project funding that coincides with the project’s sources and uses

of funds; or a bond sale resolution adopted by the applicant if the applicant intends to bond for any portion of the match and/or remaining costs (see page 3).

Attach commitment letters (can be from parent company) from the business(es) that are a partner with the application or intend to locate in any industrial park (see page 9).

Local Government Resolution (Sample on page 13). Permits – if available at this time.

Attach color maps that: Show city boundaries. Indicate that applicable zoning is present to accommodate the project. If zoning changes are

pending, please explain how proper zoning for the project will be in place by projectcompletion:      

Show the location of the proposed project in relation to those boundaries. Clearly specify where all types of proposed infrastructure will be in the proposed project area as

well as clearly specifying where any current infrastructure is within the proposed project area.

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LOCAL GOVERNMENT RESOLUTIONBUSINESS DEVELOPMENT INFRASTRUCTURE APPLICATION

Applicants must adopt and submit the following resolution. This resolution must be adopted prior to submission of the forms package.

BE IT RESOLVED that _______________________________ (Applicant) act as the legal sponsor for project(s) contained in the Business Development Infrastructure Application to be submitted on __________________ and that ____________________________ (Title of First Authorized Official) and ____________________________ (Title of Second Authorized Official) are hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of ____________________________________ (Applicant).

BE IT FURTHER RESOLVED that ______________________________(Applicant) has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure matching funds, adequate construction, operation, maintenance and replacement of the proposed project for its design life.

BE IT FURTHER RESOLVED that ______________________________(Applicant) has not violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice.

BE IT FURTHER RESOLVED that upon approval of its application by the state, ______________________, (Applicant) may enter into an agreement with the State of Minnesota for the above-referenced project(s), and that it will comply with all applicable laws and regulations as stated in all contract agreements.

BE IT FURTHER RESOLVED that the non-BDPI source(s) of funds identified in the sources and uses outline in the application in the total amount of $________are committed and adequate to fully fund the project identified in the application.

BE IT FURTHER RESOLVED that per MN statute 116J.431 Subd 7, ______________________________(Applicant) understands the grant may be cancelled if the project identified in the Application is not proceeding within 18 months of the execution of a grant agreement, or if not complete after five years of any grant award.

_____________________________ (Applicant) certifies that it will comply with all applicable laws, regulations, and rules of the Business Development Infrastructure Application.

NOW, THEREFORE BE IT RESOLVED that ____________________________ (Title of First Authorized Official) and ____________________________ (Second Authorized Official), or their successors in office, are hereby authorized to execute such agreements, and amendments thereto, as are necessary to implement the project(s) on behalf of the applicant.

I CERTIFY THAT the above resolution was adopted by the __________________________________(City Council) of ____________________________(Applicant) on _______________(Date).

SIGNED: WITNESSED:

(First Authorized Official) (Signature)

Title and date Title and date

SIGNED: WITNESSED:

(First Authorized Official) (Signature)

Title and date Title and date

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Conflict of Interest Disclosure Form

This form gives grantees an opportunity to disclose any actual, potential or perceived conflicts of interest that may exist when receiving a grant. It is the grantee’s obligation to be familiar with the Office of Grants Management (OGM) Policy_08-01, Conflict of Interest Policy for State Grant-Making and to disclose any conflicts of interest accordingly.

All grant applicants must complete and sign a conflict of interest disclosure form.

I or my grant organization do NOT have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest.

If at any time after submission of this form, I or my grant organization discover any conflict of interest(s), I or my grant organization will disclose that conflict immediately to the appropriate agency or grant program personnel.

I or my grant organization have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest. (Please describe below):

If at any time after submission of this form, I or my grant organization discover any additional conflict of interest(s), I or my grant organization will disclose that conflict immediately to the appropriate agency or grant program personnel.

Printed Name of Mayor or County Board Chair:

Signature:

Name of City/County:

Date:END

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