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95-443Council File � � � t \ � l� � ! tS � � Green Sheet # a'S! � � RESOLUTION �I CITYOF SAINT PAUL, NIINNESOTA Yresented By Referred To Committee: Date 1 2 3 RESOLUTION ADOPTING GUIDELINES FOR THE SAINT PAUI. CULTURAL CAPTTAL INVFSTMENT PROGRAM (CULTURAL STAR PROGRAlVn 4 WHEREAS, by Resolu6ons No. 93-783 and 93-1045, the City has 5 imposed a one-half cent sales tax authorized by the I.aws of Minnesota 1993, 6 Chapter 375, Article 9, Section 46 and determined that ten percent of the net 7 sales tax proceeds collected pursuant thereto shall be allocated to capitai 8 projects to further cultural activities in the city; and 9 WHEREAS, by Resolution No. 94-1005 the City Council adopted 10 parameters for the use of the cultural ten percent of the net sales tax proceeds 11 through the Cultural Capital Investment Program (Cultural STAR Program) 12 and requested the development of guidelines and application procedures, 13 NOW THE_RF.FORE BE TT RESOLVED, that the attached guidelines 14 for the Saint Paul Cultural Capital Investment Program (Cultural STAR 15 Program) be adopted. Requested by Department of: Adopted by Council: Date Adoption Certified by Council By: Appr By: Pla in & Econ, ic D lo�ment B �'w�� Form Approved by City Attorney � � "�'�� �, �� - - J �,�r ,- • . / /� q�= y�� DEPAFTMENLOFFICE/COUNCIL , DATEy�INITIATED GREEN - SH � � �"- 25492 � "�� � IN ATE, ` INITIAVDATE CONTA PERSON 8 PHONE �/�� / � O DEPARTMENT DIRECTO O CIN CAUNCIL �'� �u� (itE'�Q �lPYQ ASSIGN OCRYATfOHNEY �CINCLERK MUST BE ON COUNCIL AGENDA BY (DATEj NUYeER FOP ,❑ BUDGET DIflECTO � FIN_ 8 MGT. SERVICES OIP. � ��/ POU'fING �[ � � Lq 9 s� ONDER � MAVOF (OR ASSISTANT) ❑ TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) - ACTION REpUESTED: Pa��/ e�ruri�rC� A�PR-�'1rnc� �f l6thD�Z.tr.r�� '�2 `�ir.� PRVZ� �T7i'R-A�� �'�'PTi b�;nf9�Y�ri5l �I'�-1�L �LUZ�TVYL/�Z� � �f'('-OZ�R-IY'� RECOMMENDATIONS: npprove (A) or Fejeq (H) pERSONAL SEfiVICE CONTRACTS MUST ANSWEH THE FOLLOWING QUESTIONS: __ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1. Has this personHirm ever worked untler a contract for this tlepartment? _ CIB COMMITfEE YES NO — 2. Has this person/firtn ever been a city employee? _ STAFF __ YES NO _ DISTRICi COUaT' _ 3. Does this person/firtn possess a skill not nwmally possessed by any current ciy employee? SUPPORTS WHICH COUNqL O&IECTNE? YES NO Explain all yes answers on separate sheet and attach to green sheet INITIATMG PROBLEM, ISSUE, OPPOflTUNITV (Who, Whet, When. Where, Why). C�171P� } ��v ` � - 'P - � � f>Ul(�� �Z�� �R$Y�ESS �� `��eL��(— j''�! p�2i ADVANTAGESIFAPPROVED: �la-� �'D��7Ja � � �� . �� � � DISADVANTAGES IFAPPROUED: N �lv G DISADVANTAGES IF NOTAPPFiOVED: 'pt1 � �I`-'r���`- N�i�� � ' TO7ALAMOUN70FTRANSACTION $ „'/� COST/pEVENUEBUDGETED(CIRCLEONE) YES NO FUNDIfdG SOUACE N( � AC7IVITY NUMBER FINANqAL INFORMATION: (EXPLAIN) � � ' . q 5 - `t `�3 � SAINT PAUL CULTURAL CAPITAL INVESTMENT PROGRAM * The Cultural STAR Program * GUIDELINES April 24, 1995 �w .yj;, .,TC��9��"�.M?u�G�'�.�4t^a;�..�yG�l� ��'f���� C��" Ws _i��eC..9`Aix'� °0 These guidelines have been developed for use by the Saint Paul Cultural District, Inc. Board which is responsible for review of Saint Paul Cultural Capital Invesiment Program (1/2 cerrt sales tax) proposals. The Board makes funding recommendations to the Mayor and City Council. Additional copies of the guidelines can be obtained from the Deparhnent ot Planning and Economic Deve/opment, 25 West Fourth Street, Saint Paul, Minnesota 55102. q�_y`�3 Program Overview The program will award grants and loans for capital projects which further cultural activities in the City of Saint Paul. For the first 5 years, at least 75% of the annual cultural proceeds of the sales tax shall be invested in capital projects within the boundaries of the targeted geographical area known as the Cultural District. No more than 25°� of the annual proceeds may be allocated to capital projects located outside the target district provided these projects demonstrate a link to or support of activities within the targeted District. Key features include: * Program funding: 10 percent of the proceeds of the City's half cent sales tax. * Funds are awarded annually through a competitive application process. * Funds must be matched as required (see specific requirements for loans and grants) with appropriate resources. * Funds must be spent on physical improvements that have an expected life of at least 5 years. * Eligible applicants include any public, private, or non-profit entity located in or doing business in Saint Paul. * Program al{ocation goals: a minimum of 25% {aans, a maximum of 75% grants * Program priorities: * Projects which help stabilize the Cultural District and cultural institutions * Projects which strengthen or emphasize relationships between attractions * Projects which help generate financial return to the cultural fund * Improved visitor services * Funding recommendations will be made to the Mayor and City Council by the nine member Saint Paul Cultural District, Inc. Board, of which five of the nine members are appointed by the Mayor and approved by the City Council. �ts-�y� TABLE OF CONTENTS PART I - Program Description I. Purpose and Objectives Ii. Prioribes Ii. Program Funding III. General Poliaes I. Eligible Applicants II. Eligible Areas 111. Eligible Activities IV. ineligible Activities V. Eligibie Expenses PART II - Eligibility PART III - Application Procedure I. Ii. III. IV. Timeline Procedural Guidelines Pre Application Contents Fnat Application Corrtents PART IV - Project Selection I. SaiM Paul Cufturai District, Inc. Board II. Selection Process ill. Evaluation of Applications PART V Loans, and Grants I. Amount of funds allowed per project II. Matching Requirements 111. Additional information Regarding Program or Project Proposals IV. Loan Rates, Fees, Terms and Collateral V. Program Development and Implementation PART VI - Review and Evaluation 1. Project Evatuation II. Annuai Report to the City Council and Mayor III. Annual Review of Priorities IV. Audits - Quality Control For irdormatlon on Sre program, ca// 266STAR (7827) or Page 1 Page 1 Page 2 Page 2 Page 3 Page 3 Page 3 Page 5 Page 6 Page 7 Page 7 Page 8 Page 8 Page 10 Page 10 Page 11 Page 13 Page 13 Page 14 Page 15 Page 16 Page 18 Page 18 Page 18 Page 19 Page ii �s -�+ti� PART I - Program Description * Purpose and Objectives * Priorities * Program �nding * General Policies I. Program Purpose and Objectives In 1993 the City of Sairrt Paul imposed an additional one-haff cent sales tax to be used for the renovation and expansion of the Civic Center, reinvestment in our neighborhoods, and investment in our cufturai industry. The proceeds of the tax are to be used for capital projects to further residential, cuftural, commercial and economic development and the intent of the City Council is that the proceeds be used in such a way that they have significant and positive long term economic impact. Ten percent of the net sales tax proceeds have been allocated to capital projects to further cultural activities. Funding of any capital project by the Saint Paul Cultural District Inc. shall comply with one or more of the following criteria. As {ong as the focus is on the Cultural District, the following criteria will apply: A. Provide cultural and economic benefit to Sairrt Paul 8. Leverage the sates tax doliars with private resources C. Create and/or retain jobs D. Enhance and support the cultural district as a visitor attraction E. Develop relationships between the cultural district and the neighborhoods F. Siimuiate vitaiity of downtown G. Support and enhance Civic Center investment II. Priorities The City Council and Mayor shall clearly and publicly state annual priorities for the use of the cuRural sales tax funds. Priorities shall be proposed to the City Council and the Mayor by the Saint Paul Cuitural District, Inc. board. The initial priorities for the use of these funds shall be: A Relationships between attractions - physical or architecturai enhancements of place B. Projects which heip stabilize the district C. Projeets which help generate financial return to the cultura4 fund D. Projects which contribute to improved quality of visitor services - Such as enhanced street lighting, kiosks, information centers, signage, ticket services, parking, restaurants, etc. Page 1 qS-y`(3 III. Program Funding A Ten (10°k) percent of the proceeds of the 1/2 cent sales tax, along wfth its corresponding interest eamings, are dedicated to investment in cufturai projects. B. The Cuftural STAR balance as of December ist will be announced along with a request for pre-applicafions for the next funding cycie. The December 1st amourrt wiil be noted in the City budget as Cukural STAR program funds. C. Ailocations 1. At least 25°k percent of the (10%) cultural portion of sales tax proceeds shall be allocated to low interest loans which will return money to the cultural account. 2. A maximum of 75% percent of the proceeds shall be allocated to direct grants. IV. General Policies A. No more than 25% of annual cultural sales tax proceeds can be for multi-year funding . Multi-year funding will not be a prioriry in the first two years. B. The same or similar proposal can not be submitted to more than one of the following programs in any one funding cycle: the CIB program, the Neighborhood STAR program, and the Cukural STAR program C. Ali loan or grant proposals shall be for $10,000 or more. D. Sales tax funds shall be matched as follows. these are considered minimum matches with preference accorded for iarger than required matches: 1. Loans shall be matched 1:1 2. Grants of $10,000 -$100,000 shall be matched 1:1 3. Grants of $100,000 - 250,000 shail be matched 2:1 4. Grants of $250,000 and up shall be matched 3:1 E. Projects considered to be of insufficient quality or impact will not be recommended for funding, even 'rf funds are available. F. It is unlikely that the Board will approve multiple grants from one principle applicarrt in any given grarrt cycle. Page 2 qs-�y� PART II - Eligibility * Eligible Applicants * Eligible Areas * Eligible Activities * Ineligible Activities * Eligible E�enses I. Eligible applicants A. My public, private, business within the � or non-profit entiry, which is located within or do City of St. Paul - EXCEPT FOR THE FOLLOW{NG: 1. Churches and religious organizations. 2. Politicai parties and related political action groups. 3. Federal, state, and county agencies and departments. 4. Individual homeowners. City departments or divisions are eligible when in partnership with or supported by an eligible organization. II. Eligible areas A. All areas within the legal limits of the Ciry of Saint Paul. B. For the first five years of the program (calendar years 1995, 1996, 1997, 1998, and 1999) at least 75% of the annual cultural proceeds of the sales tax shali be invested in capital projects within the boundaries of the targeted geographicai area known as the Cuftural District in order to maximize and support the Ciry's investment in the renovated and expanded Civic Center. After five years the investment priorities shall be reviewed and revised 'rf appropriate. The Sairrt Paul Cultural District is defined as foilows: " The geographic area bordered by Interstate 94 on the north, Cedar Street on the east, Keilogg Boulevard on the south, and John Ireland Boulevard to the west." III. Eligible activities include any capitai projects or programs which strengthen and/or improves cultural activities in Sairrt Paui. Capital improvemerrts or capital purchases have an expected iifie ofi five (5) or more years. Some examples of eligible activkies are: A. Smali scale public improvements such as: trees and shrubs, benches, play equipmerrt, beautification of pubiic space, decorative lighting, etc. particularly as they relate to a housing or economic development Page 3 �5-�-1`{� strategy. Trees, shrubs, and lighting shoutd promate safety as welt as aesthetics. The Program is not irrtended or normally sufficient to do major public improvements such as street paving, curb and gutter, sewer and water. Major public improvements should be channeled through the aty's CIB process. When additional operation or maintenance costs result from the public improvements, the STAR proposal must ident'rfy how this project area will privately pay for their costs. Requests for capital tmprovements that are defined by City policy as °above standard° will not be considered or reviewed unless accompanied by a legally-binding and enforceable plan for maintenance and/or operation over the useful life of the improvemeMs proposed to be funded through the STAR program. The most acceptable method for maintenance and operation of above-standard public improvements is assessments on the property taxes of those receiving the benefrt from the improvements, though proposals that commit private or non-profit organizations to operate and maintain above-standard pubiic improvements will be considered, depending upon (at the City's judgement) the viabiliry of the organization and the enforceabiliry of the legal agreement. B. Improvements to property such as rehabilitation, construction or other capital improvements to residential, commercial and industrial property. Examples include: 1. Most fixed improvements including the construction, repair and/or decoration of walls, ceilings, floors, lighting, windows, doors, entrances, electrical, plumbing, mechanical, air-conditioning, architectural change, energy and secur'i1y improvements, handicapped accessibility, code requirements, etc. 2. 3. Permit and license requirements must be fuffilied prior to commencement of a project. In addition, the project must be in comptiance with ali legal requirements of the City . Health and safety items required by City buiiding codes. a. Expansion of a commercial structure wili be aliowed if it meets all City requirements such as zoning, parking, permit and license requirements, etc. b. Heaith and safery items required by Ciiy building codes. C. Economic development efforts including but not limited to: 1. Acquisition costs including purchase options as part of capitai project. Page 4 Eligible non-fixed improvements such as, , �, �S-ti�� 2. 3. 4. 5. 6. 7. 8. Demolition costs Commercial parking development. Acquisition (by lease or purchase), demol'�ion, and construction as part of a larger capital project proposal Costs of developing commercial parking facilities are eligibie ac6vities. If the parking is to be privately-owned, the STAR investmerrt must be in the form of a loan, secured by a lien on the property. If the parking is to be publiciy-owned, the STAR investment may be in the form of a grant, matched by capitaf and operating assessmerrts over the usefui I'rfe of the improvement. Utility relocation and construction as it relates to a project. Clearance: acquisition of land or a building for clearance will only be undertaken when it is an initial step in a proposal which will resuR in a larger capital project as part of this proposal. Construction costs including loan interest and fees. Soil remediation as part of a capitai project. IV. Ineligible activities Any activity not leading directly to the completion of a capital project. A. Planning or study activities. B. Use of STAR funds to develop a STAR proposai or to organize an entity to manage an STAR proposal. C. Public service programs such as crime prevention, block nursing programs, child care, and similar efforts that do not result in direct physical improvements. These activities may be included in your total project description/strategy, but they are not eligible for sales tax funding. They will be directed to other Ciry programs, 'rf possible, or private funding for these activities can be part of the project match. D. R�nancing existing debts, except when it results in business expansion, job creation, or is part ot a larger project. E. Working capital F. General administrative expenses including project management, planning, development and administrative costs accrued before final approval of the application, are not eligible for sales tax funding. Examples include rent and utilities. G. Activfties located outside the city limits. H. Major public improvement projects, i.e., street repaving, sewer work, recreation center, etc. I. Sweat equiry - payment for the applicanYs own labor and performance for construction or improvements. J. Duplication of a current Ciry program. Applicants are encouraged to coordinate or link proposed piojects with existing programs. Page 5 �S-�I`f'� V. Eligible expenses include any legal direct project cost that specifically pertains to the execution of the capital project. Definition: Explicit costs that are e�ended to carry the capitai project to compietion. Examples are dependant on the type of project/program being implemented: • building permits; • design, engineering, soil, environmentai, legal, financing, licensing and inspection fees; • general contractor's charges (must be in line with industry standards); • developers fee or project coordination fee that is appropriate to the project and in line with industry standarcis; • direct costs of staff management that are cleariy associated with the completion of a capital project. Note: Persons receiving the benefit of the project/program are not eligible for developers fee. Example: business owner rehabilitating his/her business site. Page 6 �S-`-f4� PART 111 - Application Procedure * Timeline * Procedural Guidelines * Pre Application Contents * F�nal Application Contents I. II. Tuneline (Note: The 1995 timeline is subject to passage of guidelines and may be adjusted.) September Pre-apps available Early Dec.�mber Notification of fund'sng availabi4ity, and request for pre- applications January 1 Saint Paul Cuftural District Board evaluation of pre- applications resuRing in: (1) redirection of ineligible projects, areas, appiicants; (2) request for rework and resubmission of application in February 1 April 1 April/May next cycle; or, invitation for final application along with request for project specific information to be included. Final applications due Saint Paul Cultural District Board Committees, Planning Commission, CIB Committee, and staff review of applications May Recommendations to Mayor May Review by Mayor and City Council Early June Adoption by City Council June Commitment letters with spec�c requirements and timeline for actions to be completed, sent to those recommended for funding. July Contracts negotiated assuming stipulations and timefines have been met. Prceedural Guidelines A. 8. C. A complete pre-appiication must be submitted, on time, for a proposal to be considered during a funding cycle. A compiete final application must be submitted, on time, for a proposal to be considered during a funding cycle. Staff wiil make avaiiabie for interested parties, ail copies of the pre- applications and finai applications for comment and review. Page 7 �s-�i�,3 D. Staff will organize a workshop at the beginning of each cycie to provide program application information to prospective appiicants. Attendance at the orierrtation workshop is strongly recommended. Staff may be called upon to assist appiic�nts in developing preapplications and final applications, based on availability of staff. E. Rnai applications may not be changed or modfied once submitted. It is the applicant's responsibility to thoroughly develop the proposai before submission. However, applicants may be asked to provide additional information in the course of review. III. Pre-Application Purpose and Contents Pre-applications wilt be used to determine eiigibil'ity and completeness of proposal. Those ineligible wiil be not�ed as soon as possible. Some may be redirected to other programs. All pre-applications must be submitted on ihe Cultural Saies Tax Revitalization Program pre-appiication form and contain the following information: A. A brief description of the project proposal. B. An estimate of the amount and type of funds (combination requests including grants and loans, are also eligible) being requested ftom the Sales Tax program along with an estimate of private or other kinds of contributions. C. Name of the organization/individual that will develop, implement and operate the project proposal. D. Up to three letters of support from groups affected by the proposed project/program. IV. I�nal Application Contents Final application forms will be sent to eligible appiicants following the preapplication review and approval process. The forms will be accompanied by requests for additional project-specific information that must be addressed in the final application. Staff, 'rf available, will be identified to provide technical assistance at eligible applicarrt's request. Page 8 �-'1 S -'� �� All applications must be submitted on the Sales Tax application form and contain the foliowing information, including buC not limited to: A Describe the purpose of the proposal including: 1. Cuftural disVict need which the proposal addresses. 2. Detailed description of the proposai's activities or elements. 3. Cufturai district impact and projected results. B. Level of support and participation. 1. Up to three (3) additional letters of support 'rf the letters clarify, add to, or strengthen the proposal. 2. Description of commun'ity participation C. ApplicanYs management experience and capability. Piease provide a board membership list, 'rf applicable D. Requested amount and type(s) of funding (grant andJor loan) E. Budget 1. Projected level and source of private commitment 2. Sources and uses statement for all project funds 3. Additional elements such as: a project proforma, sources of private lender financing, three years of past financial data, and other information, may be required as it pertains to the proposal. F. Time line for project that is spec'rfic and lists milestones. G. Map indicating project location and street boundaries. H. If above-standard public improvements are proposed for funding, describe the legally-binding and enforceable plan for operating and maintaining them over the useful life of the improvements. Project's expected outcomes and a description of how they wili measured. J. Application Fee: A non-refundable application fee of $100 must accompany final application forms. If a proposal is incomplete or does not appear to be sufficiently developed to aliow for reasonable review, the Saint Paul Cultural District, Inc. Board may return the proposal to the applicant for further work with the suggestion that the proposai be resubmitted during the next funding cycle. Page 9 ° l S-�{�(3 PART IV - Project Selection * Saint Paul Cultural District Inc. Board * Selection Process * �aluation of Applications * Bonus Points I. 1'he Saint Paul Cultural District Inc. Board Five members of the Saint Paul Cuftural District, Inc. board are appointed by the Mayor and approved by the City Council. The remaining four members of the Board are elected by the membership of the cuRural district. The Board serves as the formal review body for proposals requesting grants or loans from the cultural portion of sales tax funds. The Board recommends funding of 1/2 cent sales tax proposals to the Mayor and City Council. II. Selection Process - the selection process for proposals wili be competitive and the Soard will determine the quality of the proposals. The number of applicants to be funded is dependent on the size and qualiry of the proposals and the availability of funding. A. Pre applications wili be reviewed by the Saint Paul Cukural District Inc. Board and will either: 1. Be rejected as ineligible, or directed to other City programs 'rf possibie 2. Be accepted for review. The applicant wili be asked to submit a final application with additional supporting materials as requested by the Saint Paul Cultural District Inc. Board. B. Completed Final Applications, will be reviewed and summarized by staff. Applications will: 1. Be rejected by the Saint Paul Cultural District Inc. Board or 'rf insufficiently developed, the applicant may be invited to resubmit the proposal during the next funding cycle. 2. Be accepted and all information will be presented to the Saint Paul Cultural District Inc. Board. Additional technical and compliance rev�ew witl be provided by the following advisory bodies: a. The PED Credit Committee will review the applications for fiscal responsibility, risk evaluation and appropriateness of interest rates, terms and conditions, and provide this information to the Board to assist them in making recommendations to the Mayor and Ciry Council. Page 10 �s-��� b. The Planning Commission wiil review proposais for compliance with the City's Comprehensive Plan and Capital Allocation Policy. CommeMs wiil be forwarded to the SaiM Paul Cuttural District Inc. Board, Mayor and City Council within the established timeline. c. fnformation on proposais witl be forwarded to the CIB committee for informationai purposes to allow for coordinated decision making and for coordination, comment, and review. Comments wiil be forwarded to the Mayor and City Council within the established timeline. C. Anyone wishing to review and make comments on applications, is encouraged to submit these comments in writing to the Saint Paul Cultural District, Inc. board within the time frame of board action. The applications wiN be availabie for review in central locations such as: the Saint Paui Planning and Economic Development Department, the Central Library. D. The Saint Paul Cuftural District Inc. board will review the appiications based on program guidelines, CIB Committee and Planning Commission commerrts, and credit committee guidance, and make funding recommendations to the Mayor and City Council. E. The Mayor will present final recommendations to the City Council. F. The City Council will make finai selections of STAR project proposals and approve their budgets. III. Evaluation of appliCations: Proposals wiil be reviewed for the following eligibil'dy and additional selection criteria. A. Proposal supports published priorities for the use of the Cultural Sales Tax proceeds B. Proposal meets the minimum matching requirements. (See matching section.) C. Proposal is an eligible program activ'ity. (See Eligible and Ineligible Activfties sections.) Page 11 °(s-y�{3 D. Proposal is not in conflict with any city comprehensive plan element, small area plan, capital allocation policy or adopted Cit}r ordinances and poliaes. E. Proposal is financialfy feasible. Requested Cultural STAR funds together with other project resources are adequate to meet the identified need. F. Managing organization has the capability to successfully manage and implement the project. G. Project effectively addresses a previously identified or othervvise clearly documented District need or goal. H. Proposal was developed wfth sufficient community input and serves the cuftural district. N. Proposals may receive preference if they include the following: A. a positive impact on tax base B. a positive impact on job creation C. match which exceeds the required amounts D. Project is part of a weil-defined, broad strategy to increase the vitality of the Cuftural District E. St�fficient planning or feasibi{ity analysis indicates a high probability of success; and F. Cuftural district support is documented - an appropriate mix of property owners and/or business people relevant to the project included in the G. H. I. J. planning, development and implementation of the proposal. Proposals include direct coordination with other ciry, private, or non-profit programs and projects Project can leverage additional funds or resources. Percentage of the match that is direct cash or capital investment, is high All administrative expenses are funded through other sources Page 12 �s-y�3 PART V- LOANS AND GRANTS * Amount of funds atlowed per project * Leverage * Additional Information Regarding Program or Project Proposals * Loan Rates, Fees, Terms and Collaterai * Program Development and Implementation I. Amount of funds allowed per proposal: A. Regular Cuftural STAR Program 1. There are no maximum loan/grarrt request amounts for the STAR program. 2. The minimum for the regular program is $10,000. 3. Proposals wiil be funded based on their merits and funds available. II. Matching Requirements A. A minimum required match of one ($1) dollar for every one ($1) received as a loan is required. The recommended required match for grants is as follows: 1. Grants from $10,000 -$100,000 should be matched 1:1 2. Grants from $100, 000 -$250,000 should be matched 1:2 3. Grants from $250,0�0 and up should be matched 1:3 B. Counry, Private, State and Federal funds can be used as a match. C. Other City money can not be used to match STAR funds. For purposes of this program CDBG money from City sources cannot be used as a match, (an exception is listed under D). D. Other city funds that are provided as loans may be used as a match. This includes deferred loans as long as the loan is eventually paid. E. Matching funds must be directly related to the project or program in the applicanYs proposal. F. Applicants are encouraged to fund their STAR administrative expenses with outside private resources, i.e., foundation grants, cash donations, etc. and to use these funds as part of the match. G. Eligible matching contributions may include: 1. Direct financiai resources such as private expenditures for commercial or residential physical improvements, contributions or Page 13 �s-��3 funds raised from within the District, foundation and corporate grants, and local lender commitmerrts or operating assessments es�timated over the useful I'rfe of the improvements. 2. Indirect contributions can inGude: in-kind senrices from residents and businesses such as personnel, professionai services, office space, supplies, volunteer labor, and sweat equity for physical improvements. The value of sweat equity and/or volurrteer labor may not exceed 30°/a of the total match. H. Inetigible matching contributions include: 1. Volurrteer meeting time. 2. in-kind service donations from STAR applicants such as already existing office space, phone service, etc. In-kind donations from parties other than the applicant are eligible. 3. Volunteer labor and sweat equiry over 30°k of required match. 4. Any donation not directly related to the STAR project. Under no circumstances will any match be reimbursed with STAR funds. J. The STAR board has the discretion to recommend approval of other matching contributions on a case by case basis. K. Exceptions to the match requirement wiil be considered by the STAR board in highly unusual cases such as when a proposal is in response to an urgent need or disaster. III. Additional Information Regarding Project Proposals A. Aii legal requirements of the City of Saint Paul must be met such as: 1. the property must be appropriately zoned, meaning the properry must conform to use under the Ciry Zoning Ordinance. 2. for new construction, propert'ses must be on legal buildable lots 3. prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the improvements. 4. Prior to project implementation, all necessary permits must be obtained. Upon completion of improvements, the applicant must have followed, and the property must meet, all applicable code, permft and license requirements. Finally, the property must be properly inspected and must have a current Cert�cate of Occupancy upon completion, ff applicable. 5. An applicant must have the abiliry to repay ff requesting a loan and be an acceptable credit risk as determined by a bank or the city. (See underwriting standards). Page 14 �S-��� 6. Funds will be reieased on a reimbursemerrt basis upon receipt of documerrtation of eligibie expense. 7. Little Davis Bacon regulations must be followed as appiicable. B. Projects and proposals must not conflict with adopted plans and policies of the Ciry of Saint Paul. IV. Loan Fees, Rates, Terms, Collateral, and General Servicing A. Rates: will be determined by the applicant, the Saint Paul Cultural District Board and the Credft Committee's analysis of application. The PED Credit Committee will analyze capital loan requests and rate them based on industry and city standards. B. Terms: terms and conditions - will be negotiated and customized for each individual proposal. C. Collateral may be requi�ed: The City shalt file for any liens required on collateral. D. Operating Assessments: If STAR capital funding is to be matched by the operating assessment, no funding can be disbursed until final ratification of the matching operating assessment. E. Loan Origination and Servicing 1. Individuai payments for loans will be processed through PED accounting. 2. Servicing Fees a. Loans originated through PED will be charged a loan closing fee equal to 1 1/2°� to 3 of the loan amount, before any disbursements. (An approved origination fee may be charged by program operators for each loan originated.) b. a fee of $5 to $10 will be collected with each loan payment c. a charge of 5% of the monthly payment will be assessed on late payments over 15 days delinquent. d. If another party (approved by PED Credit Committee) assumes the mortgage, a 1 1 j2°h to 3°k assumption fee on the outstanding principal balance will be charged. 3. A sub-accounting system will be used to monitor the total loan amount and to provide periodic reports to: Page 15 � S-�i ;� a. the group/individual which has the loan b. project managers c. the City's Budget Office d. the Mayor e. the City Council f. Citizens of Sairrt Paui F. Loan Loss Ratio - in order to address loan needs which can not be met through standard financial institution lending programs, will have a loan loss ratio which may at times reach 20°k. The risk rating system will be used to help assure that the program operates within this range. V. Project Development and Implementation A. Upon selection by the City Council, the Cuftural STAR project applicant will receive a letter of commitment which spec�es a period of time during which the applicant must refine its project or program, secure its private match, meet ather requirements as specified in the letter of commitment and enter into an agreement with the City for the use of the Star funds. Failure to act within the period of time specified in the commitment letter may result in canceilation of the commitment. Projeets should be comp{eted or se{f-sustaining within the period of time approved by the STAR Board and specified in the agreement. B. Implementation ContraM Prior to the impiementation of an applicanYs project, a contract will be entered into between the City of St. Paul and the selected appiicant. The contract will corrtain, at minimum, a scope of services to be pertormed by ail parties, a private match section and a budget section outlining all funding sources, and an implementation timeline. The contract will be signed in accordance with City policy. Implemerrtation contracts require: 1. that the project applicant has appropriate liability insurance which insures the Ciry of St. Paul. 2. adherence, where applicabfe, to Federal, State and Local regulations, and policies pertaining to the use of funds such as prevailing wage standards, relocation requirements, affirmative action, targeted vender programs, and the First Source program. The nature of the project (ie. residential vs commercial) determines which regulations apply. Staff will hold a compliance meeting prior to implementation of the contract to identify regulations applicable to project activity. Page 16 �s-�1�3 Sales Tax aoolicants are cautioned not to make a� commitmerrts uMil they fuily understand �otential compliance and funding regulations. 3. impiementation must progress as projected in application, lack of progress is grounds for withdrawing funding. C. Sales Ta�c Fund Distribution - Sales Tax Fund allocations wiil generally be based on submission of invoices. Final payment will be made upon completion of the project and receipt of the final project report and evaluation. At the time of completion of alt activities contained in the agreement or upon expiration of the agreement, any remaining project fund balances will be returned to the STAR Fund. D. Projects are expected to be compieted within the time frame described in the final application. Requests for extensions to contract effective dates are discouraged. Proposals are selected based on certain criteria and should not be significantiy changed during project impiementation. E. Loans repayments will be made to the Cultural STAR Trust to be reused for loans, grants and other expenses that further the development of the goals for use of Cultural Sales Tax proceeds. Page 17 `[ S- �f `f3 PART VI - Review and Evaluation * Project Evaluation * Annual Report to the Ciry Council and Mayor * Annual Review of Priorities * Review of Atlocation Goals * Audits - Quality Control I. Project Evaluation A. Semi-annual status reports will be required for each project, which will provide an ongoing monitoring process. The report will include project expenditures, status of match commitments, and progress toward meeting expected project outcomes (as idenYfied in the original application). This will allow for timely adjustment of individual projects i necessary. Project managers will monitor and report on individual projects for progress and compliance with contract. B. A final evaluation of each project will be required to determine the extent to which the project has been successful. Project success will be measured against expected project outcomes and the overall objectives of the STAR Program. This final evaluation must be received before the final reimbursement request wiil be paid. II. Annual Report to City Council and Mayor The annual report shouid be presented in September of each year and shoufd include: A. Progress report on alf projects to date, their locations, and costs B. Percentage loans and grants awarded C. Fscal analysis of overall program D. Effectiveness in supporting criteria E. Estimated funds availabie for the next funding cycle F. Evaluation of the program process and suggested revisions III. Annual Review of Priorities (or criteria) ,�,,.y..»a...: +1... ..n.. ..F n..l.... �..., i� ....J.. :n ..� �. Priorities for ���k����b6��;��;�g,�....,, w. a. o...a��.m»..�..a.,w.. ro aei�er�ieeds must be reviewed annually. These priorities shall be reviewed at a public meeting following the presentation of the annual report and the Council and Mayor shali clearly and pubiicly state priorities for the upcoming funding cycie. Target allocation goals shall be reviewed, as necessary, by the Mayor and City Council. Page 18 . �.. �IS-`{�3 IV. Audits - Quality Control A. The Ciry wiil establish a monitoring and control system which ensures that loan repayments are made under the terms of each project's agreements. 1. R will be the responsibility of project developers to provide all necessary documerrtation, as determined by the Ciry, for purposes of determining program eligibility and ongoing program compliance. 2. Reports on revolving loan programs wili be periodicaily provided to the project deve{opers to assist in their monitoring of their programs finances. 8. Periodic externat audits may be required. Page 19 �� �� CPTY OF SATNT PAUL .�vo c� a�r Telephone 612-2668510 Norm Cole/nan, Mayor ZSWatKe+AoggBouleva,d Facsimi7e 612228-8513 SaintPau{ MN55102 April 27, 1995 David Thune, Councii President Members of the City Councii 310 City Hall Saint Paul, Minnesota 55102 RE: Cultural STAR Draft Guidelines Dear President Thune and Members of the City Council: It is my pleasure to forward for your review and consideration draft guidelines for the Saint Paul Cultural Capitai Investment Program (the Cukurai STAR Program). The Board of Saint Paul Cultural District Inc. worked with the already approved guidelines for the Neighborhood STAR Program and adapted them to the unique needs of the culturai industry. I recommend approval of these guidelines. If you have additional questions, or need additional copies of the guidelines, please contaet Amy �il�ce at 266-6648. Sincerely, �V Q Norm Coleman Mayor NC:awf Enclosures qs -443 S/3/9S � �--.— �� �Ok�d NOW � � R � �ORE BE TT RESOLVED, that the attached guidelines for the Saint Paul cultural Capital Investment Program (Cultural STAR. Program) be adopted ..... with the following amendment: Page 4, B2 shouId read: 2. Eligible non-fixed improvements such as