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87-1168 WHITE - C�TV �LERK COUflClI //�� /�� �/ PINK - FINANCE C I TY O F SA I NT PA U L C4NARV - OEPARTMENT BLUE - MAVOR File NO. �� �� Co il Resolution , ; , - ; � Presented By Referred To Committee: Date Out of Committee By Date Whereas , on January 6, 1987 the St . Paul City Council established a Community Festival Revolving Loan Fund and Grant Program, administered by the Division of Parks and Recreation , for the purpose of assisting neighborhood festivals with expenses , startup costs and insurance coverage; and Whereas , the Community Festival Revolving Loan and Grant Program is funded by a surcharge of $. 25 to be paid as part of the price of each admission to the Riverfest ; now therefore , be Resolved, that the attached rules and regulations be adopted to provide for a fair and equitable distribution of the funds . COUNCILMEIV Requested by Department of: Yeas DfeW Nays Nicosia � [n Favor Rettman Scheibel � Sonnen __ Ag81[1Si BY �ede�.q�t�'ilOp- Wilson Adopted by Council: Date A�'j , L ��� Form Approved by City Attorney Certified Ya_ ounc.il Sec y BY sy- Approve 17avor: Date �AUG Approved by Mayor for Submission to Council Bv - - — BY � P1lB�l���i ,'����.'���- ��� C ��� � ,�-'� �'�� C�° �,,, � �6r„��y_�/��' ��: CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM July 23, 1987 �� � D To: counci�man wilson 'JUL 2 31987 FROM: Robert P. Piram RE: Community Festival Fund BILL WILSON Attached are the rules and regulations for the Community Festival Fund plus a resolution allowing City Council Members to adopt those rules and regulations. By mid August, the Community Festival Fund should be ready to review applications from community organizations. The fund will have approximately $57,800.00 available for grants and loans from Riverfest ticket sales. That is a qreat deal of money. Division staff working with the Community Festival Fund estimate that approximatley 15 community groups are currently eligible for a loan or a grant. Grants and loans are limited to $2,000. 00 per request. The fund will not need the full �57,800.00 to apt�rove requests from these communitv groups. The Division of Parks and Recreation does: : : Our Special Services , section has a deficit of $470,000.00 because it provided start-up costs as well as absorbing loses from previous Riverfests. We want to recover our investment. Therefore, we strongly recommend that: 1. All money not granted or loaned to community groups remain in the Community Festival Fund for (1) year. 2. After that year, all left-over money would be returned to Special Services until the Division's initial investment has been recovered. The Division is not attempting to take money awa� from needy community groups, but rather to effectively utilize money that would otherwise sit unused in a fund. As public servants, we must use our resources creatively and yet still respond to citizen needs. Our recommendation will provide an adequate source of fundinq for communitv festivals and also help the Divison of Parks and Recreation alleviate it�s Riverfest debt. If you have additional concerns or questions concerning this problem please feel free to contact me so we can discuss this issue further. cc. Mayor Georc�e Latimer City Council Members Kathleen Stack Vic Wittgenstein Festival.mem ���7��''�6/ AGENDA MATERIAL � ___ .. .._ . _ COUNCIL ID�� �� p'� DATE RECEIVED � � /� � AGENDA DATE AGENDA ITEM �� SUBJECT � � ORIGINATOR CONTACT RESEARCH STAFF ASSIGNED � � ' DATE SENT TO CLERK �� COUNCIL ACTION MASTER FILE �FO AVAILABLE - � � �-� � ���-G �F- � - 5 c' f�� . Y ORD'IRESOL. �� DATE FILE CLOSED �� �- ��_ ,i��� DIVISION OF PARRS AND RECREATION COMMONITY FESTIVAL FUND BACRGROUND Developing a feeling of unity and enthusiasm among residents is a means to breathe new life into a community. The resultant pride can maintain and improve neighborhoods that might otherwise decline. When this vitality is communicated to others the result will be increased demand for housing, new business and increased revenue. These are some of the conclusions reached by the Department of Planning and Economic Development in their publication, "St. Paul Tomorrow" which recommends that neighborhoods adopt a marketing strategy to insure that the strengths and merits of their communities are made known to the wider public. The St. Paul City Council has recognized public festivals as being vital to the spirit, history and pride of St. Paul's individual neighborhoods. While the Council is aware that these events reinforce the unic�ue character of each area, they acknowledge that it has become increasingly difficult to find an adequate funding source to start up or to promote these celebrations. POLICY The City of Saint Paul has a limited responsibility to assist nonprofit organizations which provide a public benefit for Saint Paul residents. The City will therefore appropriate 25 cents per ticket sold at Riverfest 1987 to initiate a Community Festival Fund. The fund will be administered by the St. Paul Division of Parks and Recreation and will be available in mid-August, 1987. The fund will be known as the Community Festival Fund. PIIRPOSE The St. Paul City Council in a Resolution dated January 6, 1987 has established a fund to provide start up costs in the form of loans or grants to community groups or organizations desiring to promote a neighborhood festival. CONDITIONS FOR ELIGIBILITY 1. Funds will be awarded and contracts made only with community based non-profit organizations that can be insured. The City shall be listed as coinsured in the contract. 2. Use of funds must have a public benefit and fit within City priorities. 3. The submitting organization must provide, at the time of application: a. Verification of nonprofit status and copy of organizational by- laws b. List of Officers or Directors -1- �;���-�i�� c. Letter verifying organization's a�proval of the �roposal d. Previous year's budget and financial statement, if applicable e. Current balance sheet, income and expense statement, if applicable f. Proposed budget (expenses and income) for the festival g. Evidence that insurance can be obtained by the organization h. Plan for staging the festival event. 4. The financial information must demonstrate that the majority of the organization's funding is used for public benefit. 5. Organizations receiving funds shall file with the City financial reports within ninety days showing how the funds were expended and for what purpose. No additional funds will be awarded until the organization has filed such reports of previous expenditures. DEFINITIONS: Communitv Qroups or orqanizations a. Must be representative of and be active in the neighborhood served by the festival event. b. Must be a nonprofit organization and have a valid plan for staging the festival event. c. Must have a set of by-laws. Festivals: Are defined as an event of a cultural, social or educational nature including but not limited to music, dance, food dispensing, parades or commemorative activities. The event should be open to the public free of charge, be local in nature and recognize specific geographic boundaries. Eliqible Eupenses include: Insurance coverage Promotion and publicity costs Fees and permits expense Purchase of food or supplies Entertainment Training expense for festival coordinators. Examples not eliqible for funding include: Staff salaries Fundraising activities Contractual payments to promoters. GENERAL PROCEDIIRES 1. The fund will be established in August, 1987, following Riverfest 1987. 2. In 1987, applications must be submitted (1) month in advance of the festival and be accompanied by all required materials. 3. In 1988 and subsequent years, applications will be due February 1 with award by March 1 to permit time for review and development of a contract. -2- C�-,�� �i��' 4. Applicants for funding will be considered on a first come, first served basis. 5. Both loans and grants will be awarded to eligible organizations according to the following guidelines: a. Will be awarded up to a limit of $2, 000 per event. b. Will be awarded based on need and cannot be used as a substitute for another available revenue source. c. Will not be considered for an event of a religious or political nature. d. Requests must be submitted for review to the District Council representing the neighborhood served. e. Requests, after District Council review and comment, are then to be forwarded to the City where they will be considered in the order received. f. At least two officers from the organization must personally sign the agreement. g. A plan for staging the festival event must be submitted. 6. Application forms can be obtained by writing to the following address or calling 292-7445. Community Festival Fund Division of Parks and Recreation 200 City Hall Annex 25 W. 4th Street St. Paul, MN 55102 Grants -Will be considered for first-time or one-time events. -Will be considered to continue an event that has been ongoing but now for financial reasons might not be held. -Only one grant per organization. -Must be able to demonstrate ability to match funds granted. Loans -Requests must be accom�anied by an outlined method or plan for repayment within ninety (90) days after the last date of the festival. -Requests that are awarded and promptly repaid will be considered on a �ear to year basis. -Organizations with unpaid loans to the city will not be eligible for funding until loans are repaid EVALOATION CRITERIA l. Priorit}� in awarding funding will be given to groups that show need for assistance in producing a festival for the benefit of the public and to positively reinforce the unique character of an area. 2. Priority will be given to proposals that present a plan for loan repayment. -3- C,= ��- i.����' 3. Priority will be given to organizations who demonstrate the ability to produce an ongoing festival. 4. Priority will be given to organizations that demonstrate cooperative efforts within a community. REVIEW 1. Proposals will be reviewed by the Division of Parks and Recreation for: a. Eligibility under the guidelines b. Completeness of information c. Viability of the festival plan d. Ability to obtain independent insurance coverage e. Sound financial information 2. Review will take place between February 1 and March 1, except in 1987 (details will be announced) . 3 . Organizations will be notified if additional information is required for the review. AWARDS 1. All grants and loans must be approved by City Council before they are awarded. ,. 2. Organizations will be notified by March 15th if their proposal is accepted or turned down. 3. Contracts will be written between the City and the organization receiving an award of a grant or loan. 4. A final report will be required within ninty days after the festival is complete. EVALUATION: The Division of Parks and Recreation will prepare an annual report (due January 1st) for the City Council which reviews the process, evaluates program effectiveness and recommends improvements. FOR MORE INFORMATION CONTACT: Community Festival Fund Division of Parks and Recreation (612) 292-7445 200 City Hall Annex 25 W. 4th Street St. Paul, MN 55102 FESTIVAL.787 -4- ���-�i��� DIVIBION OF PARRS AND RECREATION COMMIINITY FESTIVAL FUND APPLICATION Date Check One: Loan Grant Organization Name Description of orqanization, brief history Non-Profit Status 503c Yes No Don't Know Project Coordinator Name Address Phone day evening Project Description (purpose and impact on area) : Attach additional information if needed) Total Amount Requested From Community Festival Fund: If this application is a request for a c�rant, how do you plan to match it? Please be specific. (Attach additional sheets if necessary) . � / ,, ���.,_,.J�� If this application is a request for a loan, how do �ou plan to repay it? Please be specific. (Attach additional sheets if necessary) . Please attach the followina information to your application: 1. Verification of nonprofit status and copy of organizational by-laws 2. List of Officers or Directors 3. Letter verifying organization's approval of the proposal 4. Previous year's budget and financial statement, if applicable 5. Current balance sheet and income statement, if applicable 6. Proposed budget (expenses and income) for the activity (Estimated line item budget including revenue and e�enses that will be made from loan or grant funds. 7. Evidence that insurance can be obtained by the organization 8. Plan for staging the festival event. District Council District Council Review - Signature Date of District Council Review COMMENTS: Please send application to: Community Festival Fund Division of Parks and Recreation 200 City Hall Annex 25 W. 4th St. St. Paul, MN