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HomeMy WebLinkAbout07K Business Retention and Expansion Program Timeline and U of M Program Agreement City Council Action Request Form Meeting Date 9/7/2016 Department Community Development Agenda Category Consent Agenda Title Business Retention and Expansion Program Timeline and U of M Program Agreement Staff Recommendation Approve the Business Retention and Expansion Program timeline and approve the University of Minnesota Program Agreement. Budget Implication $12,000 – EDA Fund Attachments Council Memo Agreement with the University of Minnesota Extension Office Brochure detailing the Business Retention and Expansion program through the University of Minnesota To: Honorable Mayor and City Council Charlene Stevens, City Administrator From: Matt Wolf, Economic Development Assistant Date: August 24, 2016 Subject: BR&E Process and Timeline Background As part of the City of Cottage Grove’s 2016 strategic planning process, the City of Cottage Grove’s Economic Development Department was tasked with undertaking a Business Retention and Expansion (BR&E) Program. In commencing this program the City of Cottage Grove will be working with the University of Minnesota (U of M) Extension Office. The U of M program has undertaken successful BR&E programs in communities such as Coon Rapids, Roseville, New London-Spicer, Belle Plaine and East Bethel within the last 4 years. Overall the cost to the City and the Economic Development Department budget will be $12,000 dollars in three installments from October 1, 2016 to January 31, 2018. On August 9, the EDA recommended approving the Business Retention and Expansion Program timeline and moving forward with the University of Minnesota Program Agreement. (M/Dennis, S/Celkis; 7-0 vote). Discussion Reason for a BR&E Program A successful Business Retention and Expansion Program produces more jobs; with researchers estimating 31% to 86% of new jobs come from existing businesses. Keeping existing businesses is often easier and less costly than recruiting a new business. The program will help build better relationships between the City and existing businesses. This in turn can allow the City to make better policy, program and ordinance decisions when it comes to developing incentives, marketing the community and working with current/potential businesses. Additionally businesses considering coming to the community talk with existing businesses. Attracting other businesses is easier for the community if existing businesses are happy with the community. The goal of a BR&E in the short term is to demonstrate community support for local businesses and help solve immediate business concerns. In the long term it is to increase local businesses’ ability to compete in the global economy, establish and implement a strategic plan for economic development, and to build community capacity to sustain business growth and development through creation of a broad-based coalition. Timeline and Process for BR&E The timeline for the Cottage Grove BR&E process is attached on the next page. As part of the program staff will participate in four 2-hour long training courses to become certified as BRE Coordinators through Business Retention & Expansion International. The program will also require a leadership team of 4-6 individuals, which introduces and promotes the program in the community, coordinates task force meetings and organizes immediate follow-up to businesses concerns. Additionally, a task force of 20 - 25 individuals of community and business leaders will be put together to conduct the business visitations Honorable Mayor, City Council, and Charlene Stevens BR&E Process and Timeline August 24, 2016 Page 2 of 2 as part of the program. The task force will be split in teams of two and asked to conduct 2-3 business interviews. As part of the process towards the conclusion of the program in October and November of 2017 the BR&E Program will hold workshops that will establish top program priorities. In our talks with University of Minnesota Staff, reading past studies and discussions with the City of Roseville it has been highlighted by all parties there should be a recognition of how to fund those top priorities that derive from the BR&E Program. An example from the City of Roseville was that over 30% of businesses reported they did not need employees with 4-year degrees and they needed better access to employees ready out of high school. Thus a priority was to create a workforce development program through local High Schools that would prepare students for those positions. Other examples could be low-interest capital for business expansion that creates jobs, façade improvement programs, business networking events, etc. The agreement with the University of Minnesota ends in January 2018. It should be noted it is staff’s desire for the City of Cottage Grove to sustain the BR&E through 2018 and beyond. A successful BR&E program is run annually and although we do not intend the same scope of work, we do want to continue the program in a toned down version annually. Attached you will find the agreement with the University of Minnesota Extension Office and also a brochure detailing the Business Retention and Expansion program through the University of Minnesota. Recommendation Consideration of a motion to recommend approving the Business Retention and Expansion Program timeline and moving forward with the University of Minnesota Program Agreement. SERVICES AGREEMENT THIS SERVICES AGREEMENT (the “Agreement”) isbetween Regents of the UniversityCity of University of Minnesota, a Minnesota constitutional corporation(the “”), and Cottage GrovemunicipalityCompany ,a(the “”). This Agreement is entered into by University through Extension. The parties agree as follows: 1.Description of Services. University shall perform the following services for Company: Business Retention and Expansion Strategies Program standard package (collectively, the Services “”). Reference to Services in this Agreement shall be deemed to include any deliverables provided to Company in connection with the Services, including without limitation, reports, results, materials, products, and information. 2.Compensation. For the Services performed under section 1, Company shall pay University $12,000,plus any sales or use tax if applicable. 2.1The compensation shall be paid in the following manner: uponcompletion of performance of the Services; uponreceipt of an invoice sent by University;or three$4,000 by October 31, 2016; $4,000 by in installments on the following dates: January 15, 2017; and $4,000 by May 1, 2017 . 2.2Invoices shall be sent to: City of Cottage Grove Attn: Christine Costello, Economic Development Director 12800 Ravine Parkway Cottage Grove, MN 55106 Phone No.: 651-458-2824 Facsimile No.: 651-458-2897 Email: ccostello@cottage-grove.org 3.Term.October 1, 2016Effective The term of this Agreement shall commence on (“ DateJanuary 31, 2018 ”) and shall expire on unless terminated earlier as provided in section 4.. 4.Termination. Either party may terminate this Agreement if the other party (i) fails to perform any material obligation under this Agreement and(ii) does not correct such failure within seven (7) days after having received written notice of such failure. Additionally, either party may terminate this Agreement for its convenience upon thirty (30) days’ prior written notice to the other party. Uponany termination under this Section 4, Company shall promptly FORM; OGC-SC269 Form Date: 05.22.13 Revision Date: 12.19.13 1 pay University for all Services rendered and costs incurred up to and including the effective date of termination. 5.DISCLAIMER OF WARRANTIES. UNIVERSITY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING WITHOUT LIMITATION, THE CONDITION, ORIGINALITY OR ACCURACY OF THE SERVICES PERFORMED OR DELIVERABLES PROVIDED UNDERTHIS AGREEMENT. UNIVERSITY EXPRESSLY DISCLAIMS WARRANTIES OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE. 6.LIMITATION OF LIABILITY FOR BREACH OF CONTRACT. IN NO EVENT SHALL EITHERPARTY’S LIABILITY FOR BREACH OF THIS AGREEMENT INCLUDE DAMAGES FOR WORK STOPPAGE, LOST DATA, OR INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFIT), OF ANY KIND. EXCEPT FOR EACH PARTY’S OBLIGATIONS UNDER SECTIONS 8.1 AND 8.2, EACH PARTY’S LIABILITY TO THE OTHER FOR BREACH OF THIS AGREEMENT SHALL NOT EXCEED AN AMOUNT EQUAL TO THE MONETARY CONSIDERATION PAID TO UNIVERSITY UNDER THIS AGREEMENT. 7.Use of University Name or Logo. Companyagrees not to use the name, logo, or any other marks (including, but not limited to, colors and music) owned by or associated with University or the name of any representative of University in any sales promotion work or advertising, or in any form of publicity, without the prior written permission of University in each instance. However, Company may use the name of University in a document required to be filed with, or provided to, any governmental authority or regulatory agency to comply with applicable legal or regulatory requirements. Company agrees to provide University with a copy of any such document. 8.Indemnification. 8.1Except as provided in Section 8.2, each party shall be responsible for its own acts and omissions and the results thereof and shall not be responsible for the acts of the other party and the results thereof. Liability of University is subject to the terms and limitations of the Minnesota Tort Claims Act, Minnesota Statutes Section 3.736, as amended. 8.2Company shall indemnify, defend, and hold harmless University, itsregents, faculty members, students, employees, agents, contractors, and authorized volunteer workers against any and all claims, costs, or liabilities, including attorneys’ fees and court costs at both trial and appellate levels, for any loss, damage, injury, or loss of life (other than that attributable to willful, wanton or intentional acts or omissions of University) arising out of (i) use by Company (or any third party acting on behalf of or under authorization from Company) of the Services or any information, reports, deliverables, materials, products or other results of University’s work under this Agreement or (ii) Company’s infringement of a third party’s intellectual property rights or Company’s violation of any law, rule, or regulation in the provision of any materials to University. FORM; OGC-SC269 Form Date: 05.22.13 Revision Date: 12.19.13 2 8.3Each party represents that it has and will continue to have at least the following levels of insurance during the term of this Agreement: (i) as to University, Workers’ Compensation in statutory compliance with Minnesota law and General Liability insurance in an amount not less than $1,000,000 each claim/$3,000,000 each occurrence; and (ii) as to Company, General Liability insurance inan amount not less than $1,000,000 each occurrence/$2,000,000 annual aggregate. Certificates of all insurance detailed above shall be furnished to the other party upon request. 9.Export Controls . Company shall notify University in writing if any technological information or data to be provided to University is subject to export controls under U.S. law or if technological information or data that Company is requesting University to produce during the course of work under this Agreement is expected to be subject to such controls. Company shall notify University of the applicable export controls (for example, Commerce Control List designations, reasons for control, and countries for which an export license is required). University shall have the right to decline export controlled information or tasks requiring production of such information.If the Services cannot reasonably be performed without University access to export controlled information or data, the Agreement may be terminated by either party for convenience in accordance with Section 4, except that such termination shall occur immediately upon written notice to the other instead of at the end of the 30-day period set forth in Section 4. Company shall not release export controlled information or data to University until Company has been notified in writing by University that University has implemented a technology control plan for such information. 10.General Provisions. 10.1Amendment. This Agreement shall be amended only in writing duly executedby all the parties to this Agreement. 10.2Assignment. The parties may not assign any rights or obligations of this Agreement without the prior written consent of the other party. Any assignment attempted to be made in violation of this Agreement shall be void. 10.3Entire Agreement.This Agreement (including all documents attached or referenced) is intended by the parties as the final and binding expression of their agreement and as the complete and exclusive statement of its terms. This Agreement cancels, supersedes and revokes all prior negotiations, representations and agreements between the parties, whether oral or written, relating to the subject matter of this Agreement, including without limitation, any non-disclosure agreements. The terms and conditions of any purchase order or similar document submitted by Company in connection with the services provided under this Agreement shall not be binding upon University. 10.4Force Majeure.No party to this Agreement shall be responsible for any delays or failure to perform any obligation under this Agreement due to acts of God, strikes or other disturbances, including, without limitation, war, insurrection, embargoes, governmental restrictions, acts of governments or governmental authorities, and any other cause beyond the FORM; OGC-SC269 Form Date: 05.22.13 Revision Date: 12.19.13 3 control of such party. During an event of force majeure the parties’ duty to perform obligations shall be suspended. 10.5Governing Law and Jurisdiction.The internal laws of the state of Minnesota shall govern the validity, construction and enforceability of this Agreement, without giving effect to its conflict of laws principles. All suits, actions, claims and causes of action relating to the construction, validity, performance and enforcement of this Agreement shall be in the courts of Hennepin County, Minnesota. 10.6Independent Contractor.In the performance of their obligations under this Agreement, the parties shall be independent contractors, and shall have no other legal relationship, including, without limitation, partners, joint ventures, or employees. Each party’s employees (i) shall be regarded as the employees of such party and shall not be regarded as the employees of the other party; (ii) shall be subject to the employment policies and procedures of such party and shall not be subject to the employment practices and procedures of the other party; and (iii) shall not be entitled to any employment benefits of the other party. Neither party shall have the right or power to bind the other party and any attempt to enter into an agreement in violation of this section 10.6 shall be void. Neither party shall take any actions to bind the other party to an agreement. 10.7.Notices. All notices and other communications that a party is required or elects to deliver shall be in writing and shall be delivered personally or by facsimile or by a recognized courier service or by United States Mail (first-class, postage pre-paid, certified return receipt requested) to the other party at the following addresses. Such notices and other communications shall be deemed made when delivered; faxed; submitted to the courier service; or, with respect to U.S. mail, three days after mailing. If to University:University of Minnesota Extension Attn: Michael Darger 462 Coffey Hall 1420 Eckles Ave. St. Paul, MN 55108-6068 Phone No.: 612-625-6246 Facsimile No.: E-mail: darger@umn.edu With a copy to:University of Minnesota Office of the General Counsel Attn: Transactional Law Services Group 360 McNamara Alumni Center 200 Oak Street S.E. Minneapolis, MN 55455-2006 Facsimile No.: (612) 626-9624 E-mail: contracts@mail.ogc.umn.edu FORM; OGC-SC269 Form Date: 05.22.13 Revision Date: 12.19.13 4 If to Company:City of Cottage Grove Attn: Christine Costello, Economic Development Director 12800 Ravine Parkway Cottage Grove, MN 55016 Phone No.: 651-458-2824 Facsimile No.: 651-458-2897 E-mail: ccostello@cottage-grove.org 10.8Taxes and similar fees. In addition to the payment obligation in section 2, Company is responsible for the payment of any and all income, sales, use, consumption, value added, excise, custom duties or other taxes and similar fees in connection with this Agreement, levied or required to be withheld from payment(s) to University by any taxing authority or any otherbody having jurisdiction under any present or future laws. To the extent that Company is required to withhold or deduct taxes or similar fees on any payment to be made to University, then the amount payable shall be increased by the amount that will result in University receiving a net payment in the amount it would have received absent such withholding or deduction. If University is required to pay any of such fees and/or taxes or any related penalties or interest, then any such payments shall be reimbursed to University by Company. 10.9.Breach; Attorneys’ Fees.In the event it fails to perform any of its obligations under this Agreement, Company shall reimburse University for all University’s costs and expenses (including reasonable attorneys’ fees, court costs, and costs of investigation) to enforce this Agreement, regardless of whether a suit or action had been commenced or concluded. 10.10.Survival.Upon termination or expiration of this Agreement, Sections 2, 5, 6, 7, 8, 9, and 10 shall survive. IN WITNESS WHEREOF , the parties have entered into the Agreement as of the dates indicated below. Each individual signing below represents that they have the authority to bind the party on whose behalf they are signing. Regents of the University of MinnesotaCity of Cottage Grove, Minnesota By: By: Myron Bailey Name: Name: Mayor/EDA President Title: Title: Date: Date: FORM; OGC-SC269 Form Date: 05.22.13 Revision Date: 12.19.13 5 Community LeadersBusiness Retention and ExpansionProgram (BR&E) Business Retention and Expansion Resources from the University of Minnesota Extension