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98-405y {, T aRIG1{�A�. Presented By Referred To Council File # � � `� Green Sheet # O�� RESOLUTIQN OF AINT PAUL, SOTA i � �Z Committee: Date 1 2 WF�REAS, Cycle 4 of the Cultural STAR Loans and Grants process is to commence in the 3 Spring of 1998; and 4 5 WHEREAS, the Cultural STAR Board has considered 1997 Legislative changes allowing for 6 Cuitural STAR funds to be used for assistance in operating funds for cultural organizations; 7 and 8 9 WI-�REAS, the Cultural STAR Board has revised guidelines for the disposition of Cultural 10 STAR funds. il 12 NOW, THEREFORE, BE IT RESOLVED that the City Council adopt the revised "Cultural 13 STAR Program Guidelines, 1998"; and 14 15 BE IT FURTHER RESOLVED that the City Council directs the Cultural STAR Board to 16 commence with the Cycle 4 Cultural STAR Loans and Crrants funding process. Department of: Adopted by council: Adoptio Certified b By: � � lpprove y yo Y� Date �� C � � y Council Secretaxy 2 . � .. - . l.l1 � �/�i"�i/L('� i � � , `' ., i� ../n^� �/ � Counail k. t.ov S-Y �QC�„ b-� S �b �6/� S I GREEN q8-�tQS '� No s��27 ■ u �.,a,.��.� - - v �� j, C�n.ris FOR � LIIYATiOMItY � I ❑ CIIYCIFRK ❑ R141WLfFR�IICFEM ❑ ALIMCW.]ErtY/�CCfG _ � Ml'OR(ORKID�ANt/ _,__�� {CUP ALL IOCATlONS FQR SIGNATURE� TOTAL # QF SIGNATURE Ffir' �:'� �p w. ai `�Co re v c2 w a.w�2 �D.¢ U C� v �.c� ¢_L(,+nQ ,S '"' � u�"�L{ J l �� G„�� o-p'� i'tco-+�nw�eKt�tC/ �Vt�-a S { a Q� � a lgas ��a�s t��►c� PIANNING CAMMiSS10N CIB COMMITTEE CMl SERVICE COMMISSION Has tltis persoMnn ever wakeC w�tler a contraCt fw tM1is department? YFS NO tmsthie persoMrtn e+er teen a cil�' emdovee9 YES NO Does this P��tm P� a sJdN nat riwma11Y0�°.�'� bY any wrtent city �P�oYee? YES NO Is this personlfitm a targetetl ve�tlw7 ' YES NO ohain all v� answe�s on seosrate sheet s�W attach W areen sheet i 5`� 8' C� l�C r�t S t h� -�cs �� L�y c y c� i� uuaca m eu-rrtvvru �a.V. P�ocep� -to �v�� ul�u�ral ST�-�. �r��ec-F'S n � � . . 1 'a'f.— :. k p�r!/��.rylfCP � a 2 �.3 \.#�ye.Ykl�:c'l ncs+cc e c�.r �ahe ,� .., -:, s , - � ki�Yt,kR'S OFf}CE �� 4. ` :^ , ; ` ,»�� J�....�x� �� c�c-t-��( sz�-� -F�� 0. � 4�(�«-�.��1 AL AMOUNT OF TRANSACTION )IHG SOURCE �I0.L INFORMAiION (IXPWN) COST/REYENUE BUDGETED tCiRCLE ON� . YES NO ACTMTY NUMBER /�� [9 W1.tdSLia f ��a�Lta t 4�¢!��P� �. *� .. "� ,... S l "_..�..� , . ..._,.�.___ "_ ' _ _ r DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Pamela Wheelnc/y Director CITY OF SAIlVT PAUL Norm Coteman, Mayo> 25 West Fourth SYreet Saint Pau� MN 55702 MEMORANDUM DATE: March 20, 1998 TO: Pam Wheelock FROM: Allen Lovejoy w� RE: Cuiturat STAR's 1998 Program Guidelines Proposal ��~ � Telephonz 61L266-67Q0 Facsinule: 611-228-3220 Attached are the recommended guidelines for the 1498 Cultural STAR Program from the Cultural STAR Board. Gu3deline changes focus on two issues: First, allowing funds to be used for cultural organization operations funding as per the 199'7 Legislative modifications; and Second, elimit�ating the pre-application process. The Cultural STAR Boazd has worked very hazd to put reasonable limits on the ailowable uses for STAR funds. In particular, the following provisionsltext set the parameters for operations assistance: "Use of STAR funds for operations should further the mission of the cultural organizarion and shoutd ei�hance its financial stability" (p n "Funding of Cuitural STAR shall comply with one ar more of the following criteria: H. Enable a cultural organization to "broaden its base" of earned or contributed support. I. Promote and/or unplement e�ibitions, performances, and cultural events that take place within the Cultural District, particularly those which have potential for bringing new visitors to the Cultucal DisYrict "(p 1) Proposais "Less Likely w Fund in 1998" "4. Ongoing general operating support. 5. Civic events tbax do not specifically relate to cultural organizations within the Cultural District such as parades and festivals." (p 3} "5. Grants for support of cultural organizarion operations need no match, but are limited to 25% of average annual budget for the last three years up to a ma�rimum of $50,000." (p 4) qg-�os Eligible activities include: "C. Assistance to 501(c)(3) cultural organizations' operations such as fundraising and promotions. Examples include: 1. Special fundrainsing efforts that result in a substantiated projection of increased patronage or increased financial support. 2. Promotion and/or implementation of e�ibitions, performances, and cuitural events that take piace witlun the Cuitural District., particularly those which have potenrial for bringing new visitors to the Cultural District. 3. Computers and/or telephones so long a s they are integral to a broader purpose and not the primary focus of the progosal." (p 6) Eligible expensesinclude: "B. Personnel salaries, contract employee fees and promotional costs anticipated by a culturai organization that: L Enable a cuitural organization to "broaden its base" of earned or contributed financial support; 2. Promote ancVor implement e�ibitions, perfortnances, and cultural events that take place within the Cultural District, particularly those which have potential for bringing new visitors to the Cultural District; 3. Are part of a multi-year strategy to substantially increase the base of patronage andlor financiai support; and 4. Can provide audited financial statements or Form 990 far the previous 3 years showing an ability to operate in a solvent and prudent manner as a cultural organization." (p 8) The key condition to the use of fixnds for operations is that proposals are focused on a mu16-year strategy and not part of ongoing operations. .r , q9-yo5 � � G�� ` � � KS `pN V � SAINT PAUL CULTURAL CAPITAL fNVESTMENT PROGRAM * The Cultural STAR Program � GUIDELtNES Adopted May 3, 1995 Revised May 13, 1998 These guide(ines have been developed for use by the Saint Paul Cuitural District, Inc. Board which is responsible for review of Saint Paul Cultural Capital Investment Program ('/z cent sales tax) proposals. The Board makes funding recommendations to the Mayor and City Councii. Department of Planning and Economic Development, 25 West Fourth Street, Saint Paul, Minnesota 55102. Addifional copies of the gUidelines can be obtained from this location or by calling 266-STAR (�827J. , f. Program Overview The Cuitura! STAR Program wili award grants and loans for capital projects in the Cultural District, projects that support the Cuftural District, and projects that support operations of cultural organizations. Through the first 5 cycles (1995-1999), at least 75% of the annuaf cultural proceeds of the sales tax shall be invested within the boundaries of the targeted geographical area known as the Culturai District. Projects located outside the target district should demonstrate a link to or support of activities within the targeted District. The 1997 Legisiature modified the provisions af the Cultural STAR Program, allowing up to 100°/a of program funds not previously designated to be used for operating support of cultural organizations. Use of STAR funds for operations must further the mission of the cultural organization and must enhance its financial stability. No cultural organization may receive funding for operation in more than three consecutive grant cyctes. Key features include: * Program funding: 10 percent of the proceeds of the City's ha(f cent sale� tax. . . * Funds are awarded annually through a competitive appiication process. * Funds must be matched as required (see specific requirements for loans and grants) with appropriate resources. * Funds spent on physical improvements must have an expected life ot at least 5 years. * Eligible app(icants include any public, private, or non-profit entity located m or doing business in Saint Pau1. * Program allocation gaals: a minimum of 25% loans, a maximum of 75% grants. ii G� -�� * Program priorities: (see page 1 for more detail) * Projects and programs that help stabilize cultural organizations within the Culturaf District. The emphasis shouid be on "front of stage services" that impact visitors. * Projects that meef identified cultural customer and visitor needs. * Projects that are supported by pianning efforts. * Funding recommendations will be made to the Mayor and City Counci! 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 Councii. iii TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objecfives II. Priorities Iil. Program Funding IV. General Policies PART 11 - Eligibifity I. II. 111. IV. V. Eligible Appiicants Eligible Areas Eligible Activities Ineligible Activities Eligible Expenses PART ill - Application Procedure � Timeline Procedurai Guidelines Application Cantents PART IV - Project Selection I. The Saint Pau! Cultural STAR Board II. Selection Process ill. Evaluation ofApplic�tions , 1V. Proposals May Receive Preference PART V- Loans and Grants I. Amount of funds allowed per proposal i(. Matching Requirements ili. Addifional information Regarding Project Proposais !V. Loan/granf Fees, Loan Rates, Terms, Coilateral, and Servicing V. Project Development and (mpfementation PART VI - Review and Evaluation 1. Project Evaluation II. Annual Report to the City Councii and Mayor Iii. Annua! Review of Priorities IV. Audits - Quality Controi For rnformafion on tha program, cali 266-STAR (7827) Page 1 Page 1 Page 2 Page 3 Page 3 Page 4 Page 4 Page 6 Page 6 Page 7 Page 7 Page 8 Page 9 Page 9 Page 10 Page 91 Page 12 Page 92 Page 13 Page 14 Page 15 Page 16 Page 17 Page 17 Page 17 tv : q8 f��J PART 1- Program Description * Purpose and Objectives * Priorities * Program Funding * General Policies i. Program Purpose and Objectives ln 1993, the City of Saint Paul imposed an additional one-half cenf sales tax for the renovation and expansion of the Civic Center (now called RiverCentre), reinvestment in our neighborhoods, and investment in our culturaf industry. The intent is that the proceeds be used to create significant and positive long-term economic impact. In particular, ten percent of the net sales tax proceeds have been allocated for furthering cultural activities. In 1997, the legisiature enabied up to 100°/o of all cultura4 activity funds to be used for operating support for cuiturai organizations. Funding of Cultural STAR projects shall comply with one or more of the folfowing criteria. A. Provide cultural and economic benefit to Saint Paul. B. Leverage the sales tax do{fars with private resources. C. Create and/or retain jobs. D. Enhance and support the Cuitural District as a visitor attraction. E. Revelop refationships between the Cuiturai District and the neighborhoods. F. Stimulate vitality of downtown. G. Support and enhance RiverCentre investment. H. Enable a cuiturat organization to "broaden its base" of earned or � contributed support. I. Promote and/or implement exhibitions, pertormances, and cultural events that take place within the Cultural District, particularly those that have potential for bringing new visitors to the Cufturai Districf. ti. Priorities for the 1998, Cycle 4 C�Itural STAR Program The Gity Gouncil and Mayor shali clearly and publicly state annuaf prior�ties for the use of the cuitural sales tax funds. For Cycle 4, they are: A. Projects and programs that help strengthen cultural organizafions within the Cultural District. B. Projects that meet identified cultural customer and visitor needs, such as additional parking, restaurar�ts and signage for cultura{ organizations. C. Projects that are supported by pianning efforts, such as the Saint Paul on the Mississippi Development Framework. List of the City Council's Expectations for 1998 Proposais: "More likely to Fund in 1998" 1. Projects and programs thaf help stabilize the Cultural District fhrough capital and operating support of cultural organizations in fhe district. 2. Projects that respond to identified cultural visitor needs, such as increased and convenientiy located safe parking, additional restaurants and additional location signage for culfura! institufions. 3. Proposals that enable a cultural organization to "broaden ifs base" of earned or contributed support. 4. Proposals that maximize the impact of City STAR funds. 5. Proposals that promote and/or implement exhibitions, performances, and cuitural events wifhin fhe Cuitura( District, particularly those that have potential for bringing new visitors to the Cultural Distr+ct. 6. Projects supported by the Sainf Paul on the Mississippi Deve(opment Framework. 7. Capital projects that the public can see or use. 8. Proposals supporting multi-cultural dimensions of our community. "Less likely to Fund in 9998" 1. Commercial projects or amenities that do rtot serve people at street level. 2. Capitai projects that fhe public cannot see or use. 3. Capital projects lacking adequate and specific matching funds. 4. Ongoing general operating support. � 5. Civic events that do not specificallq relate to cultural organizations within the Cultural District, such as parades and festivais. III. Program Funding A. Ten (10%) percenf of the proceeds of the %z cent saies tax, along with its correspond'+ng interest earn+ngs, are dedicated to invesfinent in cultural projects. B. Available STAR funds for Cycle 4 wil! include funds coliected through December 31, 1998. Cyc1e 4 wi(I be announced in Spring, 'f 998 with an estimate of available funds. The esiimated #ur+ds wi(! be noted in the annual City budget as Cultural STAi� program funds. C. Allocations 1. At least 2�% percent o� t#�e{'f 0%} cultural portion of saies tax proceeds shall be allocated to low interest Ioans that will return maney to the cultural accaunt. 2. A maximum of 75% per�# �f #he proceeds sfiaTi be allacated to direct grants. . ,, ��-�o� IV, General Policies A. No more than 25% of annuai cultural sales tax praceeds can be for multi- year funding . Multi-year funding will not be a priority in the first fwo years. S. The same or similar proposal cannof be submitted to more than one of the following programs in any one funding cycle: the Ci6 program, the Neighborhood STAR program, and the Cuftural STAR program. C. Ail loan or grant proposais shali be for $10,OQ0 or more. D. Sales tax funds shal! be matched as foliows. These are considered minimum matches, with preferences to larger than required matches: 1. Loans shall be matched 1 private $ to 1 STAR $. 2. Grants for capital projects of $10,000 -$100,000 shal{ be matched 1:1. 3. Grants for capital projects of $100,001 -$250,000 shall be matched 2:1. 4. Grants for capital projects of $250,001 and up shall be matched 3:1 . 5. Grants for support of cultural organization operations need no "match, but are limited ta 25°lo of the average annual budget for the last three years up to a maximum of $50,000. E. Projects considered to be of insu�cient quality or impact will "not be recommended for funding, even if funds are availabie. F, it is unlikely that the Board will approve multiple grants from one principle applicant in any given grant cycle. ' PART {{ - Eligibility * Eligilile Applicants * Eligibie Areas * Eligible,Activities * ineligible Activities * Eligible Expenses 1. Eligible applicants A. Any public, private, or non-profit entify that is located within or does business within the City of St. Paul - EXGEPT FOR THE FOLLOWING: 1. Ghurches and religious r>r�'tc3ns. 2. Pofitical parties and relate� �i#ical action groups. 3. Federa(, st�te,��ttty ager�cies and departments. 4, individua( homeowners. 3 B. City departments or divisions are eligible when in partnership with or supported by an eligible organization. (1. Eligible areas A. Ali areas within the legai iimits of the City of Saint Paul. B. For the first five years of the program (calendar years 1995, 1996, 1997, 9998, and 1999), at least 75% of the annual cuitural proceeds of the saies tax shall be invested in projects witfiin the boundaries of the targeted geographica( area known as the Cuiturai District in order to maximize and support the City's investment in the renovated and expanded RiverCentre. After five years the investment priorities shall be reviewed and revised if appropriate. The Saint Paul Cuiturai bistrict is defined as follows: " The geographic area bordered by Interstate 94 on the north, Cedar Street on the east, Keltogg Boulevard on the south, and John ireland Boulevard on the west." Ui. Eligib(e activities Capitai improvements or fixed assets must have an expected life of five (5) or more years. A. &mall sca(e public improvemenfs such as: trees and shrubs, benches, play equipment, beautifcation of public space, decorative lighting, etc., particularly as they relate to the Cuitural District or a City plan. , 1. Trees, shrubs, and lighting should promote safety as well as aesthetics. 2. The program is not intended or normally sufficient to do major public improvements such as street paving, curb and gutter, sewer and water. Major public improvemenfs should be channeled through fhe City's CiB process. 3. When additiona( operation or maintenance eosts result from the . public improvements, tF�e STAR proposal must identify how this project area will privately pay for their costs. Requests for capital improvements that are defined by City policy as "above standard" vrill not be considered or reviewed unless accompanied by a lega4Ey-binding and enforceabte pian for maintenance and/or es�eration over fihs useful life of the improverwents propaset� to be funded through the STAR program. The most acceptabie method for maintenance and operation of above-standard {�ublic improvemenfs is assessments on the propet�y taxes of those r�eiving the benefit from the irriprovements. However, propnsals tf�at commit private or non- prc�t organizaftcuzs tc3e}�erat� and maintain above-standard pubiic improvemerrts avi11 besc>nsidered, depending upon (at the City's judgment) the viability a� #he organization and the enforceability of �! ;: ,. �� - �(o� the legai agreement, S. Improvements to cultural or commercial properly such as rehabilitation, construction or other capital improvements. Examples include: 2. 3. � Most fixed imgrovements including the construction or rehabilitation of walls, ceilings, floors, iighting, windows, doors, entrances, electricai, plumbing, mechanicai, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. Eligibie improvements such as movab(e seating, computers, phone systems and technology directly related to cuitural presentations or visitor services. Permit and ficense requirements must be fulfiiled prior to commencement of a project. in addition, the project must be in compliance with all legal requirements of the City. Health and safety items required by City building codes. a. Expansion of a commerciat structure wili be afiowed if it meets afi City requirements such as zoning, parking, permft and license requirements, etc. b. Health"and safety items required by City buiiding codes. C. Assistance to 501(c)(3) cuitural organizations' operations such as fundraising and promotions. Examples include: 1. Speciaf fundraising efforts that result in a substantiated projection of increased patronage or increased financial support. 2. Promotion andlor implementation of exhibitions, perFormances and cultural events that take place within the Culturai District. particularly those that have potential for bringing new visitors to the � Cuiturai District. 3. Computers andlor tefephones as long as they are integral to a broader purpose and not the primary focus of the proposal. D. Economic development efforts including but not limited to: 2. 3. � Acquisition cosfs, includi�g project. Demoiition costs. purchase options as part of a capitaf Commerciai parking development, including acquisifion (by leasa or purchase}, demolition and construction as part of a larger capital {�roject proposai. !f fhe parking is to be private(y-owned, the STAR investment must be in the fiorm of a loan, secured by a lien on the property. if the parking is to be publicly-owned, the STAR invesfinent may be in the form of a grant, matched by capita{ and operating assessments over the usefui life of the improvement. Utiiity relocation and construction as they relate to a project. 5 5. Clearance. Acquisition of land or a buiiding for clearance will only be undertaken when it is an initial step in a proposa! that will result in a larger capital project. 6. Construction costs, inciuding ioan interest and fees. 7. Soil remediation as part of a capital project. IV. Ineligible activities A. Planning or study activities. B. Use of STAR funds to develop a STAR proposai or to organize an entity to manage a STAR proposal. C. Public service programs such as crime preventian, block nursing programs, child care and similar efforts that do not result in direct physical improvements. These activities may be inciuded in your total project description/strategy, but they are not eligible for sales tax funding. They wili be directed to other City programs, if possible, or private funding for these activifies can be part of the project match. D. Refinancing existing debts, except when it results in business expansion, job creafion, or is part of a larger project: E. General administrative expenses including project management, p(anning, development and administrative costs accrued before ftnal approvai of the app(ication are not eligibfe for sales tax funding. Exampfes include rent and utilities. ' F. Activities located outside the city limits. G. Major public improvement projects, i.e., stree# repaving, sewer work, recreation centers, etc. H. 5weat equity - payment for the applicant's own (abor and performance for construction or improveme�ts. Duplication of a current Gity program. Rpplicants are encouraged to coordinate orlrnk proposed projects with existing programs_ v. Etigible expenses include: A. Any lega! direct projecf cost that specificaily pertains to the execution of the capital project. Definition: Expficit costs that are expended to carry the capital project to completion. Examples are dependent on the type of projectf�rogram being impiemented: 1. Bu±lding permits. 2. Desig� soii, environmental, lega(, financir�g, licensing C� �g=�a� and inspection fees. 3. General contractor's charges (must be in line wifh industry standards). 4. Developers' fee or project coordination fee that is appropriate to the project and in line with industry standards. 5. �irect costs of staff management that are ciearly associated with the completion of a capital project. Note: Persons receiving the benefit pf the projectiprogram are not eligibie for developers' fee (i.e., a business owner rehabilitating hislher business site). B. Personnel salaries, contract employee fees and promotional costs anticipated by a cuitural organizafion that: 1. Enable a cultural organization to "broaden ifs base" of earned or contributed financiai support; 2. Promote andlor impfement exhibitions, performances and culturai events that take piace within the Cultural District, particularly those that have potential for bringing new visitors to the Cultura{ District; 3. Are part of a mutti-year strategy to substantialiy increase the base of patronage and/or financiai support; and 4. Can provide audited financial statements or Form 990 for the previous 3 years showing an abifity to operate in a solvent and prudent manner as a cultural organization. PART iil - Appiication Procedure * Timeline * Procedural Guidetines � Pre Apptication Contents * Fina) Application Contents I. Timeline The annual timeline wiif be announced at the beginning ot each funding cycte. Il. Proceduraf Guidetines A. A compiete application must be submiited, on time, �or a proposal to be considered during a funding cycle. B. Staff wiii make availabie for interested parties ail copies of the appiications for comment and review. 7 C. Sfaff wili organize a workshop at the beginning of each cycle to provide program application information to prospective applicanfs. Attendance at the orientation workshop is sfrongly recommended. Sfaff may be calied upon to assist applicants in developing applications, based on availabiiify of staff. D. Appiications may not be changed or modified once submitted. It is the applicanYs responsibility to thoroughly develap the proposal before submission. Fiowever, appiicants may be asked to provide additiona! information in the course of review. Iil. Appiication Contents Application forms will be made available at fhe workshop and thereafter. The forms will be accompanied by requests for additiona( project-specific information that must be addressed in the application. Staff, if available, will be identified to provide technicai assistance for etigible appticants upon request. AI► appiications must be submitted on the Sales Tax appiication form and contain al least the fo{lowing information: A. Purpose of the proposal including: 9. Cultural District need the proposal addresses. 2. Detailed description of the proposal's activities or elements. 3. Cutturai District impact and projected results. B. Levei of support and participation. 1. Up fo three (3} additional letters of support if the letters ciarify, add to or strengfhen the proposal. 2. Description of community participation C. Applicant's management experience and capability. P(ease provide a board membership list, if appiicable. D. 501 (c){3) verification, (required far ail operations funding requests}. E. Requested amount and type(s) of funding (grant and/or loan}. F. Budget 1. Projected level and source of private commitment. 2. Sources and uses statement far ali project #�s�ds. Additional elements such as a project praforma, sources of private lender financing, three years of past financial data and other information may 6e required as it pertains to the proposal. G. Time IinQ for projecf thaf is speeific and {ists milesfones. "- .4C d: — ��- l05 H. Map indicafing projecf focation and sfreef boundaries. If above-sfandard public improvements are proposed for funding, describe the legaliy-binding and enforceabie plan for operating and maintaining fhem over fhe useful life of the improvements. J. Project's expected outcomes and a description of how they will measured. K. Application fee: A non-refundable application fee of $100 must accompany the application form. if a proposal is incomplete or does not appear to be sufficientiy developed to allow for reasonabie review, the Board may return the proposai to the appiicant for furthsr work with the suggestion that the proposai be resubmitted during the next funding cycie. PART tV - Project Selection * Saint Paul Cuitural District inc. Board * Selectian Process * Evaluation of Applications * Bonus Points ' The Saint Paui Cultural STAR Board Five members of the Saint Paul Cu{tura( STAR Board are appointed by the Mayor and approved by the City Councif. The remaining four members of tMe Board are elected by the membership of the Cultural District. The Board serves as the formai review body for recommending of grants or loans from fhe culturai portion of sales tax funds. The Board recommends funding of %2 cent sales tax proposals to the Mayor and City Council. It. Selection Process The selection process for proposals will be competitive, and the Board will determine the quality of the proposais. The number of applicants to be funded is dependent on the size and quality of the proposals and the availabiiity of funding. A. Eligibility review_ 1. Staff wili advise prospective rec'spients of eligibility and make a report to the Board. 2. There will be no formaf pre-application process. 3. City staff will identify any entity associated with a prospective proposer, inc{uding officers or principals of the entity, with an adverse lending relationship with the City of Saint Paui. Criteria provided in HRA Resolutian 95-10/11-2 wiil be used fo identify adverse tending relationships_ 9 B, Compieted applications will be reviewed and summarized by staff. Appiications will be: 1. Rejected by the Board. If insufficientiy developed, the applicant may be invited to resubmit the proposal during the next funding cycle. 2. Accepted and all information will be presented to the Board. An estimate of City staff project management cosfs will be added to the proposa(. Additional technicai and comp(iance review wiil be provided by the foilowing advisory bodies: a. The PED Credit Committee wil! review the applications for fiscal responsibility, risk evaluation and appropriafeness of interest rates, terms and conditions, and provide fhis information to the Board to assist them in making recommendations to the Mayor and City Council. b. The Planning Commission wiii review proposais for compliance with the City's Comprehensive Plan and Gapital Ailocatian Policy. Comments wip be forwarded to the Board, Mayor and Ciiy Council within the esfablished timetine. c. Information on proposals wiI( be fonrvarded to the C(B Committee for informationai purposes to aliow for . coordinated decision-making, comment and review. Comments will be forwarded to the Mayor and City Councii within the established timeline. C. Anyone wishing to review and make comments on appiications is encouraged to submit these comments in writing to the Board within the time frame of Board action. The appiications wili be available for review in centrai locations such as the Saint Paui Department of Planning and Economic Develapment and the Central Library. D. The Board will review the appfications based on program guidelines, CIB Committee and Planning Commission comments, and Credit Committee guidance, and make funding recommendations to the Mayor and City Council. E. The IV�ayor will present final recommendations to the City Council. F. The City Councii wil! make final selections of STAR project proposais and approve their budgets. 111. EValuation Of apptiCatioils: Proposals will be reviewed according to the following eligibility criteria. A. Proposai supp�s ��lished priorities #cx the use ofi �he Cultural Sales 10 �8- �a5 Tax proceeds. B. Proposal meefs the minimum matching requirements. (See matching section.) C. Proposal is an eligible program activity. {See Eligible and ineligible Activities sections.) D. Proposal is not in conflict with any City Comprehensive Plan element, smai! area plan, Capital Allocation Policy, or adopted City ordinances and policies. E. Proposal is financiaily feasible. F. Requested Cultural STAR funds together with other project resources are adequate to meet the identified need. G. Managing organization has the capability to successfully manage and implement the project. H. Project effectively addresses a previously identified or otherwise clearly documented District need or goal. Proposal was developed with su�cient community input and serves the Cuitural District. . � iV. Proposals may receive preference if they inctude the following: A. A positive impact on tax base. B. A positive impact on job creation. - C. Match exceeding the required amounts. D. Project is part of a well-defined, broad strategy to increase the vitality of the Cuituraf District. ' E. Suffcient pianning or feasibility analysis indicates a high probability of success. F. Project is supported by an appropriate mix of property owners andJor busirres� peep4e refevant to ttie project and included in the planning, deveiopment �rrd impfierrtentatiorr pfi tl�e prapasai. G. Proposals include direat coc3edinafron with other City, private, or non-prof+t programs and projects. H. Project can leverage additiotrai funds flr resources. i. Percentage of the match that is direct cash or capitai investment is high. J. Rll administraiive expenses are funded through other sources. 11 PART V- LOANS AND GRANTS * Amount of Funds Allowed Per Project * Leverage * Additional Information Regarding Program or Project Proposals * Loan/Grant Fees, Loan Rates, Terms, Collateral and Servicing * Program Development and impiementation Amount of funds allowed per proposai: A. Minimumlmaximum reques#s allowed 1. There are no maximum loanlgrant request amounts for capital projects. 2. The maximum for an operations grant is $50,000. 3. The minimum for the regular program is $10,000. 4. Proposals will be funded based on their merits and funds available. 11. Matching Requirements A. Sales tax funds shall be matched as follows. These are considered minimum matches, with preference accorded for larger-than-required matches: 1. Loans shali be matched 1 private $ to 1 STAR $. 2. Grants for capital projects of $10,000 -$100,000 shail be matched 1:1. 3. Grants for capital projects of $900,001 -$250,000 shafl be matched 2:1. 4. Grants for capital prpjects of $250,001 and up shail be matched 3:1. 5. Grants for support of culturai organization operations need no match but are limited to 25% of average annuai budget for the last three years up to the maximum. � B. County, private, state and federal funds can be used as a match. C. Other City money cannot be used fo match STAR funds. For purposes of this program CDBG money from City sources cannot be used as a match (except as noted under D). D. Other City funds that are provided as loans may be used as a match. This includes deferred loans, as ion� as the loan is eventual(y paid. E. Matching funds must be-dtrectly related to ti�e project or program in the appiicant's proposai. F, With the exception of operating grants for cultural organ+zations, appiicants are encouragsd �o fund their STAR administrative expenses vgith outside private resources, {i.e., foundation grants, cash donations, etc.} and to use these fGnds as p� of the match. 12 Y.. . t \�e'�� .. 9�- �o� G. Etigibie matching contributions may include: 1. Direct financiaf resources, such as privafe expenditures for commercia{ or residential physicai improvements, contributions or funds raised fram within the District, foundation and corporate grants, and locai lender commitments or operating assessments estimated over the useful life ofi the improvements_ 2. Indirect contributions can include: in-kind services from residents and businesses such as personnei, professional services, office space, supplies, volunteer labor and sweat equity for physical improvements. The value of sweat equity andlor volun#eer labor may not exceed 30% of the total match. H. Ineligib(e matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR appficants such as already existing o�ce space, phone service, etc. In-kind donations from parties other fhan the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. 4. Any donation not directly related to the STAR project. Under no circumstances wiii 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 wiii be considered by the STAR Board in highiy unusuai cases, such as when a proposai is in response to an urgent need or disaster. ill. Additional Information Regarding Project Proposals A. All legal requirements of the City of Saint Paui must be met, such as: . 1. The property must be appropriately zoned, meaning the property must conform to use under the City Zon+ng Ordinance. 2. For new construction, properties must be on legal buildab{e lots. 3. Priorto pertorming leasehold improvements, the tenant must obtain written permission from the buifding owner for the improvements. 4. Prior to praject implementation, ali necessary permits must be ob#ained. Upon completion of improvements, the applicant must have followed, and the property must meet, aii appiicabie code, �ermit and lieense requirements. FinaNy, the property must be properly inspected and must have a Certificats of Occupancy upon completion, ifi appiicable. 5. An applicani must have the ability to repay if requesting a loan and be an acceptab�e credit risk �s determined by a bank ar fhe City. Y3 (See undenrdriting standards}. 6. Funds wil( be released on a reimbursement basis upon receipt of documentation of eligible expense. 7. Littie Davis Bacon regulations must be foliowed as applicable. B. Projecfs and proposals must not conflict with adopted plans and policies of the City of Saint Paul. C. Proposals that are operating grants for cu(tural organizations must provide audited financial statements or Form 990 for the previous three years. iV. loan/Grant Fees, Loan Rates, Terms, Co(lateral, and Servicing A. Rates wili be determined by the applicant, the Board and the Credit Committee's ana(ysis of application. The PED Gredit Committee will analyze capital loan requests and rate them based on indastry and City standards. B. Terms and conditions will be negotiated and customized for each individuai proposal. C. Co(laferal may be required. The Cify shali file for any Iiens required on collateral. D. Operating Assessments. If STAR capitai funding is to be matched by the operating assessment, no funding can 6e disbursed until finai ratification of the matching operating assessmenf. E. Loan Origination and Servicing 1. Individual payments for loans wi(1 be processed through PED Accounting. 2. Servicing Fees a. Loans and grants originated through the City wili be charged a closing fee equal to 1 1/2% of the STAR amount, before any disbursements. (An approved origination fee may be charged by program operators for each Ioan originated.} b. A fee of $5 to $10 will be collecte� with each foan payment. c. A charge of 5% of the monthly payment will be assessed on late payments aver 15 days definquent. d. If another party {approved by PED Credit Committeej assumes the mortgage, a 9 1/2% assurr�ption fee on the outstanding principal balance will be charged. 3. A sub-accounting system will be used fo monitor the totaf amount and ta provide periodic reports to: a. the grouplindividual that has the loan. b. project managers. i[! 'x '' t 4 • 9� - ��05 c. the City's Sudget Office. d. the Mayor. e. the City Council. f. citizens of Saint Paul. F. Loan Loss Ratio. In order to address foan needs that cannot be met through standard financial institution lending programs, the STAR Loan Program will have a loan loss ratio which may at times reach 20%. The risk rating system will be used to help assure that fhe program operates within this range. V. Project Development and Implementation A. Upon selection by the City Gouncit, the Cultural STAR pro}ect applicant wili receive a letter of commitment that specifies a period of time during which the appiicant must refine the project or program, secure the private match, meet other 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 canceliation of the commitment. Projects should be completed or self-sustaining within the period ofi time approved by the STAR Board and specified in the agreement. B. Implementation Contract Prior to the impiementation of an appiicant's project, a contract will be entered into between the City of St. Paul and the selected applicant. The contract wilf contain, at minimum, a scope of services to be performed by ali parties, a ptivate match section and a budget section outlining all fund+ng sources, and an implementation timeline. The contract will be signed in accordance with City policy. Implementation contracts require: 1. That the project applicant has appropriate liabifity insurance that insures the City of St. Paul. 2. Adherence, where applicable, to #ederal, state and local reguiations and poiicies pertaining to the use of funds, such as prevailing wage standards, selocation requirements, affrmative action, targeted vender programs and the First Source �gram. T#�e na#�re of the project (i.e. residentiai vs. commercial} determines which regulations apply. Staff will hold a compliance me�#ing �arior to implementation of the contract to identify appfacab4e rsgulations. Sales i'a�t �plicants are cautioned r�et�o make any commitments until they fullv understand�sotential com lin 'ance and funding reguia#is3r�. 15 3. Implementation must progress as projected in the application. Lack of progress is grounds for withdrawing funding. C. Sales Tax Fund Distribution . Sales Tax Fund distribution wil! generally be based on submission of invoices. Final payment wi(! be made upon completion of the project and receipt of the finai project report and evaluation. At the time of completion of all activities contained in the agreement or upon expiration of the agreement, any remaining project fund balances will be retumed to the STAR Fund. D. Projects are expecfed to be compteted within the time frame described in the final appiication. Requests for contract extensions are discouraged. Proposals are selected based on certain criteria and should nat be significantly changed during project impiemenfafion. 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 program's goals. PART VI - Review and Evatuation * Project Evatuation * Annual Report to City Councit and Mayor * Annuai Review of Priorities * Review of Allocation Goals * Audits - Quality Control i. Project Evaluation A. Semi-annual status reports will be required for each project to provide ongoing monitoring. The report will incfude project expenditures, status of match commitments and progress toward meeting expected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers will monitor and repork can individuai projects regarding progress and contract comp�ian�e B. A final evaluation a€ each project will be required to determine the extent to wMich fhe_�ro,�eCtl3as been successful. Project success wi11 be measured against e�ec#ed project oufcomes and the ov�ra41 objectives of ffie STAR Program. This final evaluation must be received before the final reimbursement reques# v,riH b� p�id. � q� - �05 It. Annual Report to City Council and Mayor The annual report should be presented in September of each year and should inciude: A. Progress reporFs on ali projects to-date, their focations, and cosfs. B. Percentage loans and grants awarded. C. Fiscal analysis of overall program. D. Effectiveness in supporting criteria. E. Estimated funds available for the next funding cycle. F. Eva{uation of the program process and suggested revisions. 111. Annual Review of Priorities (or criteria} Priorities for the cultural portion of the sales tax must be reviewed annually. These priorities shall be reviewed at a public meeting following the presentation of the annuai report. The City Council and Mayor shail clearly and pubiicly state priorities for the upcoming funding cycle. Target allocation goals shali be reviewed, as necessary, by the Mayor and City Councii. IV. Audits - Quality Contro� A. The City wiii estabiish a monitoring and control system to ensure that loan repayments are made under the terms of each projecYs agreements. 1. it wi(i be the responsibility of project developers to provide afl necessary documentation, as determined by the City, to determine program eligibility and ongoing programs' compliance. 2, Reports on revolving loan programs will be periodically provided to the project developers to assist in the mos�itoring of their programs' finances. B. Periodic externai audits may be required. 17 �d�'`fc�s SAINT PAUL CULTURAL INVESTMENT * The Cuitural STA GUIDE May 3, 1995 March, 1998 These guidelines have Board which is respo �. (Yz cent sales tax) py6K and City Gouncil. � Department Paul, Minne 55102. rogram * � developed for use by the Safnt Pau! Gufturai District, Inc. for review of Saint Paul Cultural Capital Investment Program s. The Board makes funding recommendations to the Mayor and Economic Development, 25 West Fourth Street, Saint Additionai Slopies of the guidetines can be obtained from this location or by calling 266-STAR (7&27). c�� y ous Program Overview The Cultural STAR Program will award grants and loans for capita4 pro' cts that are in the Cu)tura! District, prajects that support tHevCul#ural D�s �ct; and, projects tha# suppo�# opera#ions of cut#ura1;"organizat�o�s. � . Thraugh the f t 5 cycles (1995-1999), at least 75% of the annual culturai proceeds of e sales tax shall be invested ' within the boundaries o the targeted geographical area known as the Cuiturai District. �rojects i cated outside the target district r�;:u�:� demonst te a link to or support of activities within the targeted District. Key features include: * Program funding: 10 sales tax. of the proceeds of the Gity's half cent * Funds are awarded nually through a competitive application process. � Funds must be atched as required (see specific requirements for loans and gr ts) with appropriate resources. * Funds m t be spent on physicai improvements that have an expecte life of at least 5 years. * Eligi e applicants include any public, private, or non-pro�t entity loc ted in or doing business in Saint Paul. �` rogram allocation goals: a minimum of 25% loans, a maximum of 75% grants �' Program priorities: (see page 1 for more detail) * Projects and programs which help stabilize culturai organizations a� -y� within the cultural district. The emphasis shoufd be on "front of stage serrices" which impact the visitors. '� Projects which meet identified cultural customer and visitor * Projects which are supported by pianning efforts. '` Funding recommendations will be made to the Mayor nd Gity Council by the nine member Saint Paul Cultural Di rict, inc. Board, of which five of the nine members are appointed y the Mayor and approved by the City Council. Page ii TABLE OF CONTENTS PART I - Program Description 1. Purpose and Objectives 11. Priorities 11. Program Funding 111. General Policies I. E(igibte Applicants fl. Eligible Areas ili. E(igible Activities IV. ineligibie Activities V. Eligible Expenses PART Iii - Application � IV Timeline Procedural Guidelines PART Il - Eligibility Final Application Contents PART IV - ��' Saint Paul Cuituraf Selection Process Evaluation of Apoli Board Selection PART V- Loans, an Grants I. Amount of fun s aliowed per project Ii. Matching Re uirements II1. Additional formation Regarding Program or Project Proposals IV. Loan Ra s, Fees, Terms and Coilateral V. Progra Development and Impiementation PART VI - Review and Evaluation I. oject Evaluation II. Annual Report to the City Council and Mayor ill. Annual Review of Priorities N Audits - QuaGty Control information on the program, ca11266-STAR (7827) °l8 -�tos 'Page 1 Page 1 Page 2 Page 3 Page 3 Page 4 Page 4 Page 6 Page 6 Page 7 Page 7 Page 8 Page 9 Page 9 Page 11 Page 12 Page 12 Page 13 Page 14 Page 15 Page 17 Page 17 Page 17 Page 17 Page iii 9 $ -�tos PART i - Program Description * Purpose and Objectives * Priorities * Program Funding '` Generai Policies Program Purpose and Objectives in 1993 the City of Saint Paui imposed an additionai one-haff c t sales tax to be used for the renovation and expansion of the Civic Center, r� vestment in our neighbarhoods, and investment in our cultural industry. �;he intent of the City Cou il is that the proceeds be used in such a way that they have significant and po tive long term economic impact �� part�c�iacg� ten percent of the net sales t proceeds have been aliocated ��rsjeets for furthe��cuitura ctivities. A. Provide cultural a economic benefit to Saint Paul B. Leverage the sa s tax doliars with private resources C. Create and/or tain jobs D. Enhance an support the cuitural district as a visitor attraction E. Develop r ationships between the cultural district and the neighborhoods F. Stimulat vitality of downtown G. Suppo and enhance Civic Center mvestment t�i': ��? � ..,, :�� '�� ..,-�,� w � �;; n. riorities fior the 199� �, Cycte � 3 Cultural STAR Program The City Council and Mayor shail c{ear{y and publicly state annual priorities fior the use of the culturai sales tax funds. �b�`=��1��€�� "'`"'"`" '`"° `" Page 1 °�8'- ��.�. -.��,- - - - - - - - -- - - - � � G Projects and programs t#�at fieip strengffien �rief�-pei�-: eap'ttal-sr�pper�; cultura{ organizations within the cultural Projecfs that meet identified culturai customer and visitor additional parking and restaurants, and signage for cul� Projects that are supported by planning efforts suc�i'as the List of the City Council's Proposals: "More likely to Fund in 19� 9�" 1. Projects and programs that heip sta ' ize the cultural district through capitai and �.;�� °:C� of cuitural organ� ations in the district 2. Projects which respond to identif d cultural visitor needs such as increased and conveniently located safe park' g, additional restaurants, and additional location signage for cultural institutio . 3. � ' � . � ,� �� . . ; _ _ �..��:�� , �:, � �� 4. Proposals that maximi the m""�" ievefage of City STAR. funds. f'reje��TR�n �-� .w ° ..�� a - • ° e - . s ..� � _ � i � ��` . �.:.,a:,.:�., ..,.:,: �:,.- �eds - such as organizations. � a m � 1�� i:i�6z<�na�ir%�re�:,AtiG�aeo-.�is:i� supporting multi-cultural dimensions of our community. likely to Fund in 19�8 9�" Gommerciai projects or amenities that do not serve people at street level. �� .��:.�,�� . y oS Page 2 q,�- y.as 3. Capitai projects lacking adequate and specific matching funds. 4_ Ongoing genera! operating support. 5_ Civic events thaf do not specificaliy relafe fo cu{turat organiiafions Cultural Disfrict such as parades and fesfiva)s. ifl. Program Funding A. Ten (10°l0} percent of the proceeds of the % cent sale ax, along with its corresponding interest earnings, are dedicated to in stment in cultural projects. B. Available STAR funds for Cycie 4 will include nds coilected through December 31, 1998. Cycle 4 wili be anno ced in Spring, 1998, with an estimate of available funds . The estimated funds will be noted in e annual City budget as Cultural STAR program funds. C. Ailocations 1. At least 25°lo per t of the (10°l0) cuiturai portion of sales tax proceeds shall b allocated to low interest loans which will return money to the Itural account. 2. A maximum 75°lo percent of the proceeds shall be a{located to direct pran . IV. Generaf Pol A. No more t an 25% of annual cultural sales tax proceeds can be for mufti- year fun ing . Muiti-year funding wiil not be a priority in the first two years. B. The ame or similar proposal can not be submitted to more than one of th ollowing programs in any o�e tunding cycle: the CiB program, the hborhood STAR program, and the Culturai STAR program C '� All loan or grant proposals shall be for $10,000 or more. Sales tax funds shall be matched as follows. These are considered minimum matches with preference accorded for larger than required matches: 1. Loans shali be matched 1 private $ to 1 STAR $ 2�;:Grants�+�;��of $10,000 -$100,000 shali be matched 1 3;;Grants�t��" a��'��s of $100,001 -$25Q000 sha11 be matched 2:1 4. Grants �ar�ap�fa�p.,��,��' ��gof $25Q001 and up shall be matched 3:1 Page 3 9 � - �.c�s 5. Granfs for suppost of culturat organizafion operations r�eed no r buf are iimited to 2b°lo of average annual budgef for tfie last fhree up to a maximum of $SQ,OOd. E. Projects considered to be of insufficient quality or impact will n be recommended for funding, even if fiunds are availabie. F. {t is unlikely that the Board will approve multiple grants fy6m one principle applicant in any given grant cycle. / PART 11 - Eligibility * Eligible Applicants � Eligibie Areas * Eligible Activities * Ineligible Activities * Eligible Expenses I. Eligibie applicants A. Any public, private, or non-pr fit entity, which is located within or do business within the City of t. Paul - EXCEPT FOR THE FOLLOWING: 1. Churches and r igious organizations. 2. Political parti and related political action groups. 3. Federal, st , and county agencies and departments. 4. Individual omeowners. 8. City depart nts or divisions are eligible when in partnership with or supported an eligible organization. I1. Eligibie a�as A. All a as within the legal limits of the City of Saint Paul. B. F r the first five years of the program (calendar years 1995, 1996, 1997, 99$, and 1999) at least 75°l0 of the annual cuitural proceeds of the sales tax shali be invested in sa�itat projects within the boundaries of the targeted geographical area known as the Culturai District in order to maximize and support the City's investment in the renovated and expanded Civic Center. After five years the investment priorities shall be reviewed and revised if appropriate. The Saint Paul Cultural District is defined as follows: " The geographic area bordered by interstate 94 on the north, Cedar Street on the east, Keliogg Boulevard on the south, and Page 4 9g-`1a5 111. John Ireland Boulevard to the west." Eligible activities ' � . Capital improvements assets must have an expected life of five {5) or more years. A. Small scale pubtic improvements such as: trees and piay equipment, beaut�cation of public space, decorati� particularly as they relate to the Cultural District or a 1. Trees, shrubs, and lighting should promote s fefi aesthetics. 2. The Program is not intended or norr 3. � 2 �hfubs, benches, : lighting, etc. plan. as well as to do major pubiic improvements such as street p mg, curb and gutter, sewer and water. Major public improveme s should be channeled through the city's CIB process. When additionai operation or m" tenance costs result from the public improvements, the STA proposal must identify how this project area wiii privately pa or their costs. Requests for capital improvements that are d med by City policy as "above standard" will not be c sidered or reviewed unless accompanied by a le Ily-binding and enforceable plan for maintenance andtor operation over the useful life of the improvements pr osed to be funded through the STAR program. The st acceptable method for maintenance and operation of ab e-standard public improvements is assessments on the prope taxes of those receiving the benefit from the the �epts, though proposais that commit private or non-profit �ns to operate and maintain above-standard public �ents will be considered, depending upon (at the City's it) the viability of the organization and the enforceability of agreement. s to cuttural or commerciai property such as construction or other capital improvements. Examples Most fixed improvements including the construction, or rehabilitation of wails, ceilings, floors, lighting, windows, doors, entrances, electricaf, plumbing, mechanical, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. Eligible improvements such as, movable seating, and camputers, phone systems and technology directly related to cuitura! presentations or visitor services. Page 5 9'g' - �I OS 3. Permit and license requirements must be fulfilled prior to commencemenf of a project. {n addition, the project musf compliance with all legal requirements of the City . Health and safety items required by City building codes. a. Expansion of a commercial structure will be allo ec meets all City requirements such as zoning, rkin� and license requirements, etc. C: �s: �: if it permit Heaith and safety items required by Ci}�/buiiding codes. � &. Economic development 1. Acquisition costs ir project. 2. Demolition cos 3. Commerciai rkin purchase), emoliti project 4. Costs c � . � inciuding but not limited to: ing purchase options as part of capital development. Acquisition (by lease or n, and construction as part of a larger capital eveloping commercial parking facilities are eligible ff the parking is to be privately-owned, the STAR �t must be in the form of a loan, secured by a lien on the If the parking is to be publicly-owned, the STAR �t may be in the form of a grant, matched by capital and operating assessments over the usefuf life of the improvement. Utility relocation and construction as it relates to a pro}ect. Ciearance: acquisition of land or a building for clearance will oniy be undertaken when it is an initial step in a proposal which wili resuit in a larger capitai project as part of this proposal. Construction costs including loan interest and fees. Soil remediation as part ot a capital project. IV, /ineligible activities Any activity not leading directly to the completion of a capital project. A. Pianning or study activities. Page 6 98' - N°s v. : Use of STAR funds to develop a STAR proposal or to organize an entity to manage an STAR proposal. / C. Public service programs such as crime prevention, bfock nursing programs, child care, a�d similar efforts that do not resuit in dire physica! improvements. These activities may be included in y ur tota! project description/strategy, but they are not eiigible for sai tax fiunding. They wiif be directed to other City programs, if possihle, o private funding for fhese activities can be part of the project match. D. Refinancing existing debts, except when it resuits ' business expansion, job creation, or is part of a larger project. E. General administrative expenses inciudin project management, planning, development and administrative costs a crued before final approvai of the appiication, are not eligible for sales t funding. Examples include rent and utilities. Activities located outside the G. Major public improvement p jects, i.e., street repaving, sewer work, recreation center, etc. H, Sweat equiry - payme for the applicanYs own labor and performance for construction or imar ements. Duplication of coordinate or arrent City program. Applicants are encouraged to proposed projecfs with existing programs. include: Eligible A. Any le 1 direct project cost that specificaily pertains to the execution of the ca ital project. Definition: Explicit costs that are expended ta carry the capi i project to compietion. Exampies are dependant on the type of pr ect/program being impiemented: • buiiding permits; design, engineering, soii, environmental, legal, financing, licensing and inspection fees; • generai 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 standards; • direct costs of staff management that are clearly associated with the completion of a capital project. Page 7 ag� - yos Note: Persons receiving the benef+t of the project/program are not e{igible for developers fee. Example: business owner rehabilitating hislher busine site. / B. Personnei saiaries, eocitaaaf employee �ees a��" costs antic�pate�t by a cul�rafAr."gan�za,�a�o� t�iaf' 1: Ena61e a,.c�7fuFa1:� 2: ��: PART til - Application Pro dure * Timeline * Pracedural Guideline * Pre Application Co ents * Final Appiication ontents 1. Timeline The annuaf timeline ill be announced at the beginning of each funding cycle. II. Procedurat uidelines . , , � B omplete final application must be submitted, on time, for a proposaf to e considered during a funding cycle. �^ � Staff will make available for interested parties, all copies of the pre- f applications and final applications for comment and review. B Staff will organize a workshop at the beginning of each cycle to provide program application information to prospective appiicants. Attendance at the orientation workshop is strongiy recommended. Staff may be cailed upon to assist applicants in developing Page S �tg- 4os applications, based on availability of staff. D. � Fi�af Applications may not be changed or modified once submitted. the applicant's responsibility to fhoroughly develop the proposa� submission. However, applicants may be asked to provide addi ' n +nformation in the course of review. . . in��ri-sr2i:�:ni�riui��i��.n��c=i�=.�ii%a��ii�l=ait� iiG.Gna:i:ii�:�a:a:�.i.:a�'��"G ' " l�fs��:i�n� t��w _ _ _ _ i _ _ __ ��;�Nf �aF Applicatio Contents f-i+�al Application f rms will be ��„tk,i� pfeeess—The rms will be accompanied by requests for additional project- specific infor ation that must be addressed in the €�aF-application. Staff, if available, ill be identified to provide technical assistance at eligible applicanYs request. All ap lications must be submitted on the Sales Tax application form and contain the Ilowing information, including but not limited to: Describe the purpose of the proposal including: 1. Cultural district need which the proposal addresses. 2. Detailed description of the proposal's activities or elements. 3. Cultural district impact and projected results. B. Level of support and participation. Page 9 qg�-yos C. � E. 2. Up to three (3) additional letters of support if the letters clarify, a to, or strengthen the proposal. 2. Description of community participation Applicant's management experience and capability. Piease p vide a board membership list, if appiicable. 501 {c){3) verification fbra(I op Requested amount and type(s) of funding (gra�t andtor loan) Er. Budget 3. Projected levei and source of private ommitment 2. Sources and uses statement for a1l roject funds 3. Additional elements such as: a pr ject proforma, sources of private lender financing, three years of ast financial data, and other information, may be required s it pertains to the proposal. G�r: Time line for project that is spec' c and lists milestones. H:i Map indicating project locati and street boundaries. !x If above-standard public ' provements are proposed for funding, describe the legally-binding and nforceable plan for operating and maintaining them over the useful fe of the improvements. ��; Project's k�u=� Application outcomes and a description of how they will measured. A non-refundable application fee ot $100 must application forms. if a proposai is inco lete or does not appear to be sufficiently devefoped to aliow fior reasonable review he Saint Paul Culturai District, inc. Board may return the proposal to the applicant f further work with the suggestion that the proposal be resubmitted during the ne� nding cycie. PART V - Project Selection * Saint Paul Cultural District Inc. Board * Selection Process * Evafuation of Applications * Bonus Points Page 10 q g -�{os The Saint Paui Culturai STAR ^'-�«'-�„�: Board Five members of the Saint Paul Cultural STAR ^' Board are appointed by the Mayor and approved by the Gity Councif. The remaining four members of the Board are elected by the membership of the cultural 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 %2 cen'� sales tax proposals to the Mayor and Gity Councii. , 11. S@I@Cti011 PfOCeSS - the selection process for proposais witl be coi and the Board wili determine the quality of the proposals. The number applicants to be funded is dependent on the size and quality of the pr � and the availability of funding. A. f're-a�ptiea#tert E#a `i�uti� review: 1. �#a#f wrkrradvssee�.�icos�e��i �� 3��- City staff principais ot the entity, City of Saint Pau{. a. criteria provided to identify adver b. City staff wili pre highlighting th : c. the summa wi � C:� an B1 identify any entity ing o�cers or � relationship with the Resolution 95-10111-2 will be used eefending relationships. Care a summary of ail pre-appiicants, � with an adverse lending relationship. be forwarded to City Councif, along with a ting authority to proceed on the processing of the p -applications. upon ity Council authoriaation, the STAR Board will accept elig� le pre-applications for review. Applications, will be reviewed and summarized by staff. will: Be rejected by the °-�-` "�•�' ^••"••�-' ^�°`-�-"--. Board or if insu�ciently developed, the applicant may be invited to resubmit the proposal during the ne� funding cycle. Be accepted and ail information wilf be presented to the ° Page 11 9d _4.os ,...��..__� �:_._:,.s �.... goard. An estimate of cifij staff project management costs will be added to the propasal. Additional technical and compliance review will be provided by the folic advisory bodies: , a. The PED Credit Committee will review the appli �ons for fiscal responsibility, risk evaluation and appro ateness of interest rates, terms and conditions, and pr �de this information to the Board to assist them i making recommendations to the Mayor and Ci Gouncil. b. The Planning Commission wiii rev w proposais for compliance with the City's Com ehensive Plan and Capitai Allocation Policy. Comments iil be forwarded to the �a"tr� ^-..' ^.."..�-' ^:-`-:_"-- g rd, Mayor and City Council within the established ti ine. c. Information on prop als will be forwarded to the CIB committee for infor ational purposes to aliow for coordinated deci on making and for coordination, comment, and review, C ments will be forwarded to the Mayor and City Council ithin the established timeline. C. Anyone wishing to re �ew and make comments on applications, is encouraged to sub � these comments in writing to the °-:-"'-..' ^..".._�° ^`-� ,�� Boar ithin the time frame of board action. The applications wiii be availabl or review in central locations such as: the Saint Pauf Planning and conomic Development Department, the Gentrai Library. D. The ��`�� Board wii! review the applications based n program guidelines, CIB Committee and Planning Commission com ents, and credit cammittee guidance, and make funding re mmendations to the Mayor and City Council. E. �The Mayor will present final recommendations to the City Council. F./ The City Council will make final selections of STAR project proposais and / approve their budgets. 111. EV11uatIO11 Of appllCatlOfls: Proposa{s wil{ be reviewed for the following etigibility and additional se(ection criteria. A. Proposal supports published priorities for the use of the Culturaf Sales Tax proceeds Page 12 q�- �}os C Proposal is an eligibie program activity. (See Eligible and lneligible Activities sections.) / D. Proposal is not in conflict with any city comprehensive pian ment, small area pian, capitai ailocation policy or adopted City ordina s and policies. E. F G. H. IV. Proposals may receive following: A. a positive impact on ta� : Proposal meets the minimum matching requirements. (See matching section.) B. a positive impact on ' b creation G. match which exce s the required amounts D. Project is part of weli-defined, broad strategy to increase the vitality of the Culturai Qi rict E. Sufficient pla ning or feasibility analysis indicates a high probabitity of community input and serves the nce if they include the F. G. H, I. J. �7 Proposal is financiaily feasibie. Requested Gultur STAR fiunds together with other project resources are adequate to me the identified need. Managing organization has the capability to uccessfully manage and implement the project. Project effectively addresses a previo ly identified or otherwise clearly documented District need or goa{. Proposal was developed with cultural district. success; a Cu�tural " tri�t support is documented - an appropriate mix of property owners ndlor business peopie relevant to the project inciuded in the piann' g, development and impiementation of the proposal. Pro sals include direct coordination with other city, private, or non-profit pr rams and projects oject can leverage additiona{ funds or resources. ercentage of the match that is direct cash or capital investment, is high All administrative expenses are funded through other sources ;T V - LOANS AND GRANTS * Amount of funds allowed per project * Leverage Page 13 98- �os i, 11. Additional Information Regarding Program ar Project Proposals Loan Rates, Fees, Terms and Collateral * Program Development and implementation Amount of funds aliowed per proposal: A. Minimum/maximum Requests Allowed 1. There are no maximum loan/grant projects: . 2. The maximum for an operat��ii; 3. The minimum for the regular pn 4. Proposais witl be funded based Matching Requirements A. Sales:#a� fern�s°.s�ia11 tt�.� for ca�i€a3 is $10,�00. �ir merits and funds availabie. B. County,,�rivate, State and Federal funds can be used as a match. C. Oth City money can not be used to match STAR funds. Far purposes of thi program CDBG money from City sources cannot be used as a match, ( exception is listed under D). � F. 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. Matching funds must be directly related to the project or program in the applicanYs proposai. �pplicants are e�couraged 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. Page 14 �g-yos G. Eligible matching contributions may inciude: Direct financial resources such as private expenditures for commerciai or residential physical improvements, contributio funds raised from within the District, foundation and corpor grants, and local lender commitments or operating asses� estimated over the useful life of the improvements. � Ifl. �� J. K. Additional A. 2. Indirect contributions can include: in-kind : residents and businesses such as personnel, offce space, supplies, volunteer labor, and s� physical improvements. The value of swe e labor may not exceed 30°!0 of the totai m ch. Ineligibie matching contributions include: from �ssional services, equity for + and/or volunteer 1. Volunteer meeting time. 2. In-kind service donations from S R applicants such as already existing o�ce space, phone se ice, etc. In-kind donations from parties other than the applica are eligible. 3. Volunteer labor and sweat uity over 30% of required match. 4. Any donation not directly lated to the S7AR project. Under no circumstances The STAR board has matching contribution Exceptions to the board in highly� an urgent nee oi Ail le i requirements of the City of Saint Pau! must be met such as: 1, The property must be appropriately zoned, meaning the property must conForm to use under the City Zoning Ordinance. 2 For new construction, properties must be on legal buildable lots . Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the improvements. 4. Prior to project implementation, ali necessary permits must be obtained. Upon completion of improvements, the applicant must have fol(owed, and the property must meet, all applicable code, permit and license requirements. Finally, the property must be properly inspected and must have a current Certificate of Occupancy upon completion, if appiicabie. match be reimbursed with STAR funds. to recommend approvai of other a case by case basis. �atch requirement wiil be considered by the STAR asuaf cases such as when a proposal is in response to disaster. Regarding Project Proposals Page IS q�-�os � G: 5. An applicant must have the ability to repay if requesting a{oan and be an acceptable credit risk as determined by a bank or the city. (See underwriting standards). 6. Funds wiil be released on a reimbursement basis upon receipt f documentatio� of eligible expense. 7. Littie Davis Bacon regulations must be followed as appfic le. Projects and proposals must not conflict with adopted plans nd policies of the City of Saint Paul. IV. Loan/grant fees, Loan Rates, Terms, Col teral, and Servicing A. Rates: wili be determined by the appiicant, e Board and the Credit Committee's analys' of appiication. The PED Credit Committee will analyze capital lo n requests and rate them based on industry and city standards. B. Terms: terms and conditions - wil e negotiated and customized for each individual proposal. C. Coifaterat may be require . The City shafl file for any liens required on cotiaterai. D. Operating Asse the operating as: ratification of the E. Loan If STAR capitai funding is to be matched by no funding can be disbursed until final operating assessment. and Servicing lual payments for loans will be processed through PED nting. 'Servicing Fees a. Loans and grants originated through the City will be charged 2. a closing fee equal to 1 1J2% of the STAR amount, before any disbursements. (An approved origination fee may be charged by program operators for each foan originated.) b. a fee of $5 to $10 wiU be coliected with each loan payment c. a charge of 5°la of the monthly payment wili be assessed on late payments over 15 days delinquent. d. If another party (approved by PED Credit Committee) assumes the mortgage, a 1 1/2% assumption fee on the outstanding principal balance wiii be charged. A sub-accounting system wifi be used to monitor the total loan 3. Page 16 a�_��s amount and to provide periodic reports to: a. the groupJindividua{ which has the loan b, project managers c. the City's Budget Office d. the Mayor e. the City Council f. Citizens of Saint Paul V F. Loan Loss Ratio - in order to address loan needs which through standard financiaf institution lending programs, loss ratio which may at times reach 20%. The risk ratig an,rSot be met y#f�have a loan system will be range. A. Upon selection by the City Council, the C ural STAR project applicant wiil receive a letter of commitment which s cifies a period of time during which the applicant must refine its projec or program, secure its private match, meet other requirements as sp ified in the letter of commitment and enter into an agreement with th ity for the use of the Star funds. Failure to act within the period of ti e specified in the commitment letter may result in canceilation of the mmitment. used to help assure that the program operates Project Devefopment and � Projects should be complet or self-sustaining within the period of time approved by the STAR Bo rd and specified in the agreement. Impiementation Prior to the imple entered into betv contract wiil con alf parties, a p v, funding sou es, signed in ccord; � tation of an applicanYs project, a contract will be n the City of St. Paul a�d the selected applicant. The am, at minimum, a scope of services to be performed by �te match section and a budget section outiining ali and an impiementation timeline. The contract wiil be �nce with City policy. contracts require: that the project applicant has appropriate liability insurance which insures the City of St. Paui. adherence, where appiicabie, to Federal, State and Locai regufations, and po(icies 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 (i.e. residential vs commercial) determines which regulations apply. Staffwill hold a compliance meeting prior to implementation of the contract to identifij regulations applicable to project activity. Page 17 ��-yos Sales Tax applicants are cautioned not to make any commitments untif they fuity understand potential com lip ance and funding regulations. 3. implemenfation must progress as projected in application, lack o progress is grounds for withdrawing funding. C. Safes Tax Fund Distribution - Sales Tax Fund allocations will enera be based on submission of invoices. Final payment will be m de upon comp{etion of the project and receipt of the final project rep and evaluation, At the time of completion of all activities con med in the agreement or upon expiration of the agreement, any r aining project fund balances will be returned to the STAR Fund. D. Projects are expected to be compieted within th time frame described in the final application. Requests for extensions o contract effective dates are discouraged. Proposais are selected b ed on certain criteria and should not be significantly changed durin project implementation. E. Loans repayments will be made to th Cultural STAR Trust to be reused for loans, grants and other expens that further the development of the goais for use of Cultural Sales T proceeds. PART VI - Review and E�luation * Project Evaluation * Annual Report to th ity Council and Mayor * Annual Review of riorities * Review of Alloc ion Goals * Audits - QualibG Control I. Project Eva ation A. Semi- nnual status reports will be required for each project, which will pro � e an ongoing monitoring process. The report will include project e enditures, status of match commitments, and progress toward meeting pected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers witl monitor and report on individual projects for progress and compliance with contract. A final evaluation of each project will be required to determine the e�ent to which the project has been successful. Project success wifl be measured against expected project outcomes and the overal{ objectives of Page 18 q8-�os the STAR Program. This final evaluation must be received before the final reimbursement request will be paid. II. Annual Report to City Council and Mayor The annual report should be presented in September of each year and include: A. B. C. D F. Progress report on aN projects to date, their locations, and Percentage loans and grants awarded Fiscal analysis of overall program EfFectiveness in supporting criteria Estimated funds availabie for the next funding cycle Evaluation of the program process and suggested r visior 111. Annual Review of Priorities (or criteria) Priorities for the culturai portion of the sales tax These priorities shall be reviewed at a public m� of the annual report and the Council and MaycN' priorities for the upcoming funding cycie. f m t be reviewed annuaity. � ing following the presentation shali clearly and pubiicly state Target ailocation goals shall be reviewesd; as necessary, by the Mayor and City CounciL / IV. Audits - Quality Control A. The City will establish monitoring and control system which ensures that loan repayments are ade under the terms of each project's agreements. 1. it will be the esponsibility of project deve(opers to provide ail necessa documentation, as determined by the City, for purposes of deter ining program eligibility and ongoing program compliance. � � on revolving loan programs will be periodically provided to :ct develapers to assist in their monitoring of their programs external audits may be required. Page 19 y {, T aRIG1{�A�. Presented By Referred To Council File # � � `� Green Sheet # O�� RESOLUTIQN OF AINT PAUL, SOTA i � �Z Committee: Date 1 2 WF�REAS, Cycle 4 of the Cultural STAR Loans and Grants process is to commence in the 3 Spring of 1998; and 4 5 WHEREAS, the Cultural STAR Board has considered 1997 Legislative changes allowing for 6 Cuitural STAR funds to be used for assistance in operating funds for cultural organizations; 7 and 8 9 WI-�REAS, the Cultural STAR Board has revised guidelines for the disposition of Cultural 10 STAR funds. il 12 NOW, THEREFORE, BE IT RESOLVED that the City Council adopt the revised "Cultural 13 STAR Program Guidelines, 1998"; and 14 15 BE IT FURTHER RESOLVED that the City Council directs the Cultural STAR Board to 16 commence with the Cycle 4 Cultural STAR Loans and Crrants funding process. Department of: Adopted by council: Adoptio Certified b By: � � lpprove y yo Y� Date �� C � � y Council Secretaxy 2 . � .. - . l.l1 � �/�i"�i/L('� i � � , `' ., i� ../n^� �/ � Counail k. t.ov S-Y �QC�„ b-� S �b �6/� S I GREEN q8-�tQS '� No s��27 ■ u �.,a,.��.� - - v �� j, C�n.ris FOR � LIIYATiOMItY � I ❑ CIIYCIFRK ❑ R141WLfFR�IICFEM ❑ ALIMCW.]ErtY/�CCfG _ � Ml'OR(ORKID�ANt/ _,__�� {CUP ALL IOCATlONS FQR SIGNATURE� TOTAL # QF SIGNATURE Ffir' �:'� �p w. ai `�Co re v c2 w a.w�2 �D.¢ U C� v �.c� ¢_L(,+nQ ,S '"' � u�"�L{ J l �� G„�� o-p'� i'tco-+�nw�eKt�tC/ �Vt�-a S { a Q� � a lgas ��a�s t��►c� PIANNING CAMMiSS10N CIB COMMITTEE CMl SERVICE COMMISSION Has tltis persoMnn ever wakeC w�tler a contraCt fw tM1is department? YFS NO tmsthie persoMrtn e+er teen a cil�' emdovee9 YES NO Does this P��tm P� a sJdN nat riwma11Y0�°.�'� bY any wrtent city �P�oYee? YES NO Is this personlfitm a targetetl ve�tlw7 ' YES NO ohain all v� answe�s on seosrate sheet s�W attach W areen sheet i 5`� 8' C� l�C r�t S t h� -�cs �� L�y c y c� i� uuaca m eu-rrtvvru �a.V. P�ocep� -to �v�� ul�u�ral ST�-�. �r��ec-F'S n � � . . 1 'a'f.— :. k p�r!/��.rylfCP � a 2 �.3 \.#�ye.Ykl�:c'l ncs+cc e c�.r �ahe ,� .., -:, s , - � ki�Yt,kR'S OFf}CE �� 4. ` :^ , ; ` ,»�� J�....�x� �� c�c-t-��( sz�-� -F�� 0. � 4�(�«-�.��1 AL AMOUNT OF TRANSACTION )IHG SOURCE �I0.L INFORMAiION (IXPWN) COST/REYENUE BUDGETED tCiRCLE ON� . YES NO ACTMTY NUMBER /�� [9 W1.tdSLia f ��a�Lta t 4�¢!��P� �. *� .. "� ,... S l "_..�..� , . ..._,.�.___ "_ ' _ _ r DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Pamela Wheelnc/y Director CITY OF SAIlVT PAUL Norm Coteman, Mayo> 25 West Fourth SYreet Saint Pau� MN 55702 MEMORANDUM DATE: March 20, 1998 TO: Pam Wheelock FROM: Allen Lovejoy w� RE: Cuiturat STAR's 1998 Program Guidelines Proposal ��~ � Telephonz 61L266-67Q0 Facsinule: 611-228-3220 Attached are the recommended guidelines for the 1498 Cultural STAR Program from the Cultural STAR Board. Gu3deline changes focus on two issues: First, allowing funds to be used for cultural organization operations funding as per the 199'7 Legislative modifications; and Second, elimit�ating the pre-application process. The Cultural STAR Boazd has worked very hazd to put reasonable limits on the ailowable uses for STAR funds. In particular, the following provisionsltext set the parameters for operations assistance: "Use of STAR funds for operations should further the mission of the cultural organizarion and shoutd ei�hance its financial stability" (p n "Funding of Cuitural STAR shall comply with one ar more of the following criteria: H. Enable a cultural organization to "broaden its base" of earned or contributed support. I. Promote and/or unplement e�ibitions, performances, and cultural events that take place within the Cultural District, particularly those which have potential for bringing new visitors to the Cultucal DisYrict "(p 1) Proposais "Less Likely w Fund in 1998" "4. Ongoing general operating support. 5. Civic events tbax do not specifically relate to cultural organizations within the Cultural District such as parades and festivals." (p 3} "5. Grants for support of cultural organizarion operations need no match, but are limited to 25% of average annual budget for the last three years up to a ma�rimum of $50,000." (p 4) qg-�os Eligible activities include: "C. Assistance to 501(c)(3) cultural organizations' operations such as fundraising and promotions. Examples include: 1. Special fundrainsing efforts that result in a substantiated projection of increased patronage or increased financial support. 2. Promotion and/or implementation of e�ibitions, performances, and cuitural events that take piace witlun the Cuitural District., particularly those which have potenrial for bringing new visitors to the Cultural District. 3. Computers and/or telephones so long a s they are integral to a broader purpose and not the primary focus of the progosal." (p 6) Eligible expensesinclude: "B. Personnel salaries, contract employee fees and promotional costs anticipated by a culturai organization that: L Enable a cuitural organization to "broaden its base" of earned or contributed financial support; 2. Promote ancVor implement e�ibitions, perfortnances, and cultural events that take place within the Cultural District, particularly those which have potential for bringing new visitors to the Cultural District; 3. Are part of a multi-year strategy to substantially increase the base of patronage andlor financiai support; and 4. Can provide audited financial statements or Form 990 far the previous 3 years showing an ability to operate in a solvent and prudent manner as a cultural organization." (p 8) The key condition to the use of fixnds for operations is that proposals are focused on a mu16-year strategy and not part of ongoing operations. .r , q9-yo5 � � G�� ` � � KS `pN V � SAINT PAUL CULTURAL CAPITAL fNVESTMENT PROGRAM * The Cultural STAR Program � GUIDELtNES Adopted May 3, 1995 Revised May 13, 1998 These guide(ines have been developed for use by the Saint Paul Cuitural District, Inc. Board which is responsible for review of Saint Paul Cultural Capital Investment Program ('/z cent sales tax) proposals. The Board makes funding recommendations to the Mayor and City Councii. Department of Planning and Economic Development, 25 West Fourth Street, Saint Paul, Minnesota 55102. Addifional copies of the gUidelines can be obtained from this location or by calling 266-STAR (�827J. , f. Program Overview The Cuitura! STAR Program wili award grants and loans for capital projects in the Cultural District, projects that support the Cuftural District, and projects that support operations of cultural organizations. Through the first 5 cycles (1995-1999), at least 75% of the annuaf cultural proceeds of the sales tax shall be invested within the boundaries of the targeted geographical area known as the Culturai District. Projects located outside the target district should demonstrate a link to or support of activities within the targeted District. The 1997 Legisiature modified the provisions af the Cultural STAR Program, allowing up to 100°/a of program funds not previously designated to be used for operating support of cultural organizations. Use of STAR funds for operations must further the mission of the cultural organization and must enhance its financial stability. No cultural organization may receive funding for operation in more than three consecutive grant cyctes. Key features include: * Program funding: 10 percent of the proceeds of the City's ha(f cent sale� tax. . . * Funds are awarded annually through a competitive appiication process. * Funds must be matched as required (see specific requirements for loans and grants) with appropriate resources. * Funds spent on physical improvements must have an expected life ot at least 5 years. * Eligible app(icants include any public, private, or non-profit entity located m or doing business in Saint Pau1. * Program allocation gaals: a minimum of 25% loans, a maximum of 75% grants. ii G� -�� * Program priorities: (see page 1 for more detail) * Projects and programs that help stabilize cultural organizations within the Culturaf District. The emphasis shouid be on "front of stage services" that impact visitors. * Projects that meef identified cultural customer and visitor needs. * Projects that are supported by pianning efforts. * Funding recommendations will be made to the Mayor and City Counci! 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 Councii. iii TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objecfives II. Priorities Iil. Program Funding IV. General Policies PART 11 - Eligibifity I. II. 111. IV. V. Eligible Appiicants Eligible Areas Eligible Activities Ineligible Activities Eligible Expenses PART ill - Application Procedure � Timeline Procedurai Guidelines Application Cantents PART IV - Project Selection I. The Saint Pau! Cultural STAR Board II. Selection Process ill. Evaluation ofApplic�tions , 1V. Proposals May Receive Preference PART V- Loans and Grants I. Amount of funds allowed per proposal i(. Matching Requirements ili. Addifional information Regarding Project Proposais !V. Loan/granf Fees, Loan Rates, Terms, Coilateral, and Servicing V. Project Development and (mpfementation PART VI - Review and Evaluation 1. Project Evaluation II. Annual Report to the City Councii and Mayor Iii. Annua! Review of Priorities IV. Audits - Quality Controi For rnformafion on tha program, cali 266-STAR (7827) Page 1 Page 1 Page 2 Page 3 Page 3 Page 4 Page 4 Page 6 Page 6 Page 7 Page 7 Page 8 Page 9 Page 9 Page 10 Page 91 Page 12 Page 92 Page 13 Page 14 Page 15 Page 16 Page 17 Page 17 Page 17 tv : q8 f��J PART 1- Program Description * Purpose and Objectives * Priorities * Program Funding * General Policies i. Program Purpose and Objectives ln 1993, the City of Saint Paul imposed an additional one-half cenf sales tax for the renovation and expansion of the Civic Center (now called RiverCentre), reinvestment in our neighborhoods, and investment in our culturaf industry. The intent is that the proceeds be used to create significant and positive long-term economic impact. In particular, ten percent of the net sales tax proceeds have been allocated for furthering cultural activities. In 1997, the legisiature enabied up to 100°/o of all cultura4 activity funds to be used for operating support for cuiturai organizations. Funding of Cultural STAR projects shall comply with one or more of the folfowing criteria. A. Provide cultural and economic benefit to Saint Paul. B. Leverage the sales tax do{fars with private resources. C. Create and/or retain jobs. D. Enhance and support the Cuitural District as a visitor attraction. E. Revelop refationships between the Cuiturai District and the neighborhoods. F. Stimulate vitality of downtown. G. Support and enhance RiverCentre investment. H. Enable a cuiturat organization to "broaden its base" of earned or � contributed support. I. Promote and/or implement exhibitions, pertormances, and cultural events that take place within the Cultural District, particularly those that have potential for bringing new visitors to the Cufturai Districf. ti. Priorities for the 1998, Cycle 4 C�Itural STAR Program The Gity Gouncil and Mayor shali clearly and publicly state annuaf prior�ties for the use of the cuitural sales tax funds. For Cycle 4, they are: A. Projects and programs that help strengthen cultural organizafions within the Cultural District. B. Projects that meet identified cultural customer and visitor needs, such as additional parking, restaurar�ts and signage for cultura{ organizations. C. Projects that are supported by pianning efforts, such as the Saint Paul on the Mississippi Development Framework. List of the City Council's Expectations for 1998 Proposais: "More likely to Fund in 1998" 1. Projects and programs thaf help stabilize the Cultural District fhrough capital and operating support of cultural organizations in fhe district. 2. Projects that respond to identified cultural visitor needs, such as increased and convenientiy located safe parking, additional restaurants and additional location signage for culfura! institufions. 3. Proposals that enable a cultural organization to "broaden ifs base" of earned or contributed support. 4. Proposals that maximize the impact of City STAR funds. 5. Proposals that promote and/or implement exhibitions, performances, and cuitural events wifhin fhe Cuitura( District, particularly those that have potential for bringing new visitors to the Cultural Distr+ct. 6. Projects supported by the Sainf Paul on the Mississippi Deve(opment Framework. 7. Capital projects that the public can see or use. 8. Proposals supporting multi-cultural dimensions of our community. "Less likely to Fund in 9998" 1. Commercial projects or amenities that do rtot serve people at street level. 2. Capitai projects that fhe public cannot see or use. 3. Capital projects lacking adequate and specific matching funds. 4. Ongoing general operating support. � 5. Civic events that do not specificallq relate to cultural organizations within the Cultural District, such as parades and festivais. III. Program Funding A. Ten (10%) percenf of the proceeds of the %z cent saies tax, along with its correspond'+ng interest earn+ngs, are dedicated to invesfinent in cultural projects. B. Available STAR funds for Cycle 4 wil! include funds coliected through December 31, 1998. Cyc1e 4 wi(I be announced in Spring, 'f 998 with an estimate of available funds. The esiimated #ur+ds wi(! be noted in the annual City budget as Cultural STAi� program funds. C. Allocations 1. At least 2�% percent o� t#�e{'f 0%} cultural portion of saies tax proceeds shall be allocated to low interest Ioans that will return maney to the cultural accaunt. 2. A maximum of 75% per�# �f #he proceeds sfiaTi be allacated to direct grants. . ,, ��-�o� IV, General Policies A. No more than 25% of annuai cultural sales tax praceeds can be for multi- year funding . Multi-year funding will not be a priority in the first fwo years. S. The same or similar proposal cannof be submitted to more than one of the following programs in any one funding cycle: the Ci6 program, the Neighborhood STAR program, and the Cuftural STAR program. C. Ail loan or grant proposais shali be for $10,OQ0 or more. D. Sales tax funds shal! be matched as foliows. These are considered minimum matches, with preferences to larger than required matches: 1. Loans shall be matched 1 private $ to 1 STAR $. 2. Grants for capital projects of $10,000 -$100,000 shal{ be matched 1:1. 3. Grants for capital projects of $100,001 -$250,000 shall be matched 2:1. 4. Grants for capital projects of $250,001 and up shall be matched 3:1 . 5. Grants for support of cultural organization operations need no "match, but are limited ta 25°lo of the average annual budget for the last three years up to a maximum of $50,000. E. Projects considered to be of insu�cient quality or impact will "not be recommended for funding, even if funds are availabie. F, it is unlikely that the Board will approve multiple grants from one principle applicant in any given grant cycle. ' PART {{ - Eligibility * Eligilile Applicants * Eligibie Areas * Eligible,Activities * ineligible Activities * Eligible Expenses 1. Eligible applicants A. Any public, private, or non-profit entify that is located within or does business within the City of St. Paul - EXGEPT FOR THE FOLLOWING: 1. Ghurches and religious r>r�'tc3ns. 2. Pofitical parties and relate� �i#ical action groups. 3. Federa(, st�te,��ttty ager�cies and departments. 4, individua( homeowners. 3 B. City departments or divisions are eligible when in partnership with or supported by an eligible organization. (1. Eligible areas A. Ali areas within the legai iimits of the City of Saint Paul. B. For the first five years of the program (calendar years 1995, 1996, 1997, 9998, and 1999), at least 75% of the annual cuitural proceeds of the saies tax shall be invested in projects witfiin the boundaries of the targeted geographica( area known as the Cuiturai District in order to maximize and support the City's investment in the renovated and expanded RiverCentre. After five years the investment priorities shall be reviewed and revised if appropriate. The Saint Paul Cuiturai bistrict is defined as follows: " The geographic area bordered by Interstate 94 on the north, Cedar Street on the east, Keltogg Boulevard on the south, and John ireland Boulevard on the west." Ui. Eligib(e activities Capitai improvements or fixed assets must have an expected life of five (5) or more years. A. &mall sca(e public improvemenfs such as: trees and shrubs, benches, play equipment, beautifcation of public space, decorative lighting, etc., particularly as they relate to the Cuitural District or a City plan. , 1. Trees, shrubs, and lighting should promote safety as well as aesthetics. 2. The program is not intended or normally sufficient to do major public improvements such as street paving, curb and gutter, sewer and water. Major public improvemenfs should be channeled through fhe City's CiB process. 3. When additiona( operation or maintenance eosts result from the . public improvements, tF�e STAR proposal must identify how this project area will privately pay for their costs. Requests for capital improvements that are defined by City policy as "above standard" vrill not be considered or reviewed unless accompanied by a lega4Ey-binding and enforceabte pian for maintenance and/or es�eration over fihs useful life of the improverwents propaset� to be funded through the STAR program. The most acceptabie method for maintenance and operation of above-standard {�ublic improvemenfs is assessments on the propet�y taxes of those r�eiving the benefit from the irriprovements. However, propnsals tf�at commit private or non- prc�t organizaftcuzs tc3e}�erat� and maintain above-standard pubiic improvemerrts avi11 besc>nsidered, depending upon (at the City's judgment) the viability a� #he organization and the enforceability of �! ;: ,. �� - �(o� the legai agreement, S. Improvements to cultural or commercial properly such as rehabilitation, construction or other capital improvements. Examples include: 2. 3. � Most fixed imgrovements including the construction or rehabilitation of walls, ceilings, floors, iighting, windows, doors, entrances, electricai, plumbing, mechanicai, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. Eligibie improvements such as movab(e seating, computers, phone systems and technology directly related to cuitural presentations or visitor services. Permit and ficense requirements must be fulfiiled prior to commencement of a project. in addition, the project must be in compliance with all legal requirements of the City. Health and safety items required by City building codes. a. Expansion of a commerciat structure wili be afiowed if it meets afi City requirements such as zoning, parking, permft and license requirements, etc. b. Health"and safety items required by City buiiding codes. C. Assistance to 501(c)(3) cuitural organizations' operations such as fundraising and promotions. Examples include: 1. Speciaf fundraising efforts that result in a substantiated projection of increased patronage or increased financial support. 2. Promotion andlor implementation of exhibitions, perFormances and cultural events that take place within the Culturai District. particularly those that have potential for bringing new visitors to the � Cuiturai District. 3. Computers andlor tefephones as long as they are integral to a broader purpose and not the primary focus of the proposal. D. Economic development efforts including but not limited to: 2. 3. � Acquisition cosfs, includi�g project. Demoiition costs. purchase options as part of a capitaf Commerciai parking development, including acquisifion (by leasa or purchase}, demolition and construction as part of a larger capital {�roject proposai. !f fhe parking is to be private(y-owned, the STAR investment must be in the fiorm of a loan, secured by a lien on the property. if the parking is to be publicly-owned, the STAR invesfinent may be in the form of a grant, matched by capita{ and operating assessments over the usefui life of the improvement. Utiiity relocation and construction as they relate to a project. 5 5. Clearance. Acquisition of land or a buiiding for clearance will only be undertaken when it is an initial step in a proposa! that will result in a larger capital project. 6. Construction costs, inciuding ioan interest and fees. 7. Soil remediation as part of a capital project. IV. Ineligible activities A. Planning or study activities. B. Use of STAR funds to develop a STAR proposai or to organize an entity to manage a STAR proposal. C. Public service programs such as crime preventian, block nursing programs, child care and similar efforts that do not result in direct physical improvements. These activities may be inciuded in your total project description/strategy, but they are not eligible for sales tax funding. They wili be directed to other City programs, if possible, or private funding for these activifies can be part of the project match. D. Refinancing existing debts, except when it results in business expansion, job creafion, or is part of a larger project: E. General administrative expenses including project management, p(anning, development and administrative costs accrued before ftnal approvai of the app(ication are not eligibfe for sales tax funding. Exampfes include rent and utilities. ' F. Activities located outside the city limits. G. Major public improvement projects, i.e., stree# repaving, sewer work, recreation centers, etc. H. 5weat equity - payment for the applicant's own (abor and performance for construction or improveme�ts. Duplication of a current Gity program. Rpplicants are encouraged to coordinate orlrnk proposed projects with existing programs_ v. Etigible expenses include: A. Any lega! direct projecf cost that specificaily pertains to the execution of the capital project. Definition: Expficit costs that are expended to carry the capital project to completion. Examples are dependent on the type of projectf�rogram being impiemented: 1. Bu±lding permits. 2. Desig� soii, environmental, lega(, financir�g, licensing C� �g=�a� and inspection fees. 3. General contractor's charges (must be in line wifh industry standards). 4. Developers' fee or project coordination fee that is appropriate to the project and in line with industry standards. 5. �irect costs of staff management that are ciearly associated with the completion of a capital project. Note: Persons receiving the benefit pf the projectiprogram are not eligibie for developers' fee (i.e., a business owner rehabilitating hislher business site). B. Personnel salaries, contract employee fees and promotional costs anticipated by a cuitural organizafion that: 1. Enable a cultural organization to "broaden ifs base" of earned or contributed financiai support; 2. Promote andlor impfement exhibitions, performances and culturai events that take piace within the Cultural District, particularly those that have potential for bringing new visitors to the Cultura{ District; 3. Are part of a mutti-year strategy to substantialiy increase the base of patronage and/or financiai support; and 4. Can provide audited financial statements or Form 990 for the previous 3 years showing an abifity to operate in a solvent and prudent manner as a cultural organization. PART iil - Appiication Procedure * Timeline * Procedural Guidetines � Pre Apptication Contents * Fina) Application Contents I. Timeline The annual timeline wiif be announced at the beginning ot each funding cycte. Il. Proceduraf Guidetines A. A compiete application must be submiited, on time, �or a proposal to be considered during a funding cycle. B. Staff wiii make availabie for interested parties ail copies of the appiications for comment and review. 7 C. Sfaff wili organize a workshop at the beginning of each cycle to provide program application information to prospective applicanfs. Attendance at the orientation workshop is sfrongly recommended. Sfaff may be calied upon to assist applicants in developing applications, based on availabiiify of staff. D. Appiications may not be changed or modified once submitted. It is the applicanYs responsibility to thoroughly develap the proposal before submission. Fiowever, appiicants may be asked to provide additiona! information in the course of review. Iil. Appiication Contents Application forms will be made available at fhe workshop and thereafter. The forms will be accompanied by requests for additiona( project-specific information that must be addressed in the application. Staff, if available, will be identified to provide technicai assistance for etigible appticants upon request. AI► appiications must be submitted on the Sales Tax appiication form and contain al least the fo{lowing information: A. Purpose of the proposal including: 9. Cultural District need the proposal addresses. 2. Detailed description of the proposal's activities or elements. 3. Cutturai District impact and projected results. B. Levei of support and participation. 1. Up fo three (3} additional letters of support if the letters ciarify, add to or strengfhen the proposal. 2. Description of community participation C. Applicant's management experience and capability. P(ease provide a board membership list, if appiicable. D. 501 (c){3) verification, (required far ail operations funding requests}. E. Requested amount and type(s) of funding (grant and/or loan}. F. Budget 1. Projected level and source of private commitment. 2. Sources and uses statement far ali project #�s�ds. Additional elements such as a project praforma, sources of private lender financing, three years of past financial data and other information may 6e required as it pertains to the proposal. G. Time IinQ for projecf thaf is speeific and {ists milesfones. "- .4C d: — ��- l05 H. Map indicafing projecf focation and sfreef boundaries. If above-sfandard public improvements are proposed for funding, describe the legaliy-binding and enforceabie plan for operating and maintaining fhem over fhe useful life of the improvements. J. Project's expected outcomes and a description of how they will measured. K. Application fee: A non-refundable application fee of $100 must accompany the application form. if a proposal is incomplete or does not appear to be sufficientiy developed to allow for reasonabie review, the Board may return the proposai to the appiicant for furthsr work with the suggestion that the proposai be resubmitted during the next funding cycie. PART tV - Project Selection * Saint Paul Cuitural District inc. Board * Selectian Process * Evaluation of Applications * Bonus Points ' The Saint Paui Cultural STAR Board Five members of the Saint Paul Cu{tura( STAR Board are appointed by the Mayor and approved by the City Councif. The remaining four members of tMe Board are elected by the membership of the Cultural District. The Board serves as the formai review body for recommending of grants or loans from fhe culturai portion of sales tax funds. The Board recommends funding of %2 cent sales tax proposals to the Mayor and City Council. It. Selection Process The selection process for proposals will be competitive, and the Board will determine the quality of the proposais. The number of applicants to be funded is dependent on the size and quality of the proposals and the availabiiity of funding. A. Eligibility review_ 1. Staff wili advise prospective rec'spients of eligibility and make a report to the Board. 2. There will be no formaf pre-application process. 3. City staff will identify any entity associated with a prospective proposer, inc{uding officers or principals of the entity, with an adverse lending relationship with the City of Saint Paui. Criteria provided in HRA Resolutian 95-10/11-2 wiil be used fo identify adverse tending relationships_ 9 B, Compieted applications will be reviewed and summarized by staff. Appiications will be: 1. Rejected by the Board. If insufficientiy developed, the applicant may be invited to resubmit the proposal during the next funding cycle. 2. Accepted and all information will be presented to the Board. An estimate of City staff project management cosfs will be added to the proposa(. Additional technicai and comp(iance review wiil be provided by the foilowing advisory bodies: a. The PED Credit Committee wil! review the applications for fiscal responsibility, risk evaluation and appropriafeness of interest rates, terms and conditions, and provide fhis information to the Board to assist them in making recommendations to the Mayor and City Council. b. The Planning Commission wiii review proposais for compliance with the City's Comprehensive Plan and Gapital Ailocatian Policy. Comments wip be forwarded to the Board, Mayor and Ciiy Council within the esfablished timetine. c. Information on proposals wiI( be fonrvarded to the C(B Committee for informationai purposes to aliow for . coordinated decision-making, comment and review. Comments will be forwarded to the Mayor and City Councii within the established timeline. C. Anyone wishing to review and make comments on appiications is encouraged to submit these comments in writing to the Board within the time frame of Board action. The appiications wili be available for review in centrai locations such as the Saint Paui Department of Planning and Economic Develapment and the Central Library. D. The Board will review the appfications based on program guidelines, CIB Committee and Planning Commission comments, and Credit Committee guidance, and make funding recommendations to the Mayor and City Council. E. The IV�ayor will present final recommendations to the City Council. F. The City Councii wil! make final selections of STAR project proposais and approve their budgets. 111. EValuation Of apptiCatioils: Proposals will be reviewed according to the following eligibility criteria. A. Proposai supp�s ��lished priorities #cx the use ofi �he Cultural Sales 10 �8- �a5 Tax proceeds. B. Proposal meefs the minimum matching requirements. (See matching section.) C. Proposal is an eligible program activity. {See Eligible and ineligible Activities sections.) D. Proposal is not in conflict with any City Comprehensive Plan element, smai! area plan, Capital Allocation Policy, or adopted City ordinances and policies. E. Proposal is financiaily feasible. F. Requested Cultural STAR funds together with other project resources are adequate to meet the identified need. G. Managing organization has the capability to successfully manage and implement the project. H. Project effectively addresses a previously identified or otherwise clearly documented District need or goal. Proposal was developed with su�cient community input and serves the Cuitural District. . � iV. Proposals may receive preference if they inctude the following: A. A positive impact on tax base. B. A positive impact on job creation. - C. Match exceeding the required amounts. D. Project is part of a well-defined, broad strategy to increase the vitality of the Cuituraf District. ' E. Suffcient pianning or feasibility analysis indicates a high probability of success. F. Project is supported by an appropriate mix of property owners andJor busirres� peep4e refevant to ttie project and included in the planning, deveiopment �rrd impfierrtentatiorr pfi tl�e prapasai. G. Proposals include direat coc3edinafron with other City, private, or non-prof+t programs and projects. H. Project can leverage additiotrai funds flr resources. i. Percentage of the match that is direct cash or capitai investment is high. J. Rll administraiive expenses are funded through other sources. 11 PART V- LOANS AND GRANTS * Amount of Funds Allowed Per Project * Leverage * Additional Information Regarding Program or Project Proposals * Loan/Grant Fees, Loan Rates, Terms, Collateral and Servicing * Program Development and impiementation Amount of funds allowed per proposai: A. Minimumlmaximum reques#s allowed 1. There are no maximum loanlgrant request amounts for capital projects. 2. The maximum for an operations grant is $50,000. 3. The minimum for the regular program is $10,000. 4. Proposals will be funded based on their merits and funds available. 11. Matching Requirements A. Sales tax funds shall be matched as follows. These are considered minimum matches, with preference accorded for larger-than-required matches: 1. Loans shali be matched 1 private $ to 1 STAR $. 2. Grants for capital projects of $10,000 -$100,000 shail be matched 1:1. 3. Grants for capital projects of $900,001 -$250,000 shafl be matched 2:1. 4. Grants for capital prpjects of $250,001 and up shail be matched 3:1. 5. Grants for support of culturai organization operations need no match but are limited to 25% of average annuai budget for the last three years up to the maximum. � B. County, private, state and federal funds can be used as a match. C. Other City money cannot be used fo match STAR funds. For purposes of this program CDBG money from City sources cannot be used as a match (except as noted under D). D. Other City funds that are provided as loans may be used as a match. This includes deferred loans, as ion� as the loan is eventual(y paid. E. Matching funds must be-dtrectly related to ti�e project or program in the appiicant's proposai. F, With the exception of operating grants for cultural organ+zations, appiicants are encouragsd �o fund their STAR administrative expenses vgith outside private resources, {i.e., foundation grants, cash donations, etc.} and to use these fGnds as p� of the match. 12 Y.. . t \�e'�� .. 9�- �o� G. Etigibie matching contributions may include: 1. Direct financiaf resources, such as privafe expenditures for commercia{ or residential physicai improvements, contributions or funds raised fram within the District, foundation and corporate grants, and locai lender commitments or operating assessments estimated over the useful life ofi the improvements_ 2. Indirect contributions can include: in-kind services from residents and businesses such as personnei, professional services, office space, supplies, volunteer labor and sweat equity for physical improvements. The value of sweat equity andlor volun#eer labor may not exceed 30% of the total match. H. Ineligib(e matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR appficants such as already existing o�ce space, phone service, etc. In-kind donations from parties other fhan the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. 4. Any donation not directly related to the STAR project. Under no circumstances wiii 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 wiii be considered by the STAR Board in highiy unusuai cases, such as when a proposai is in response to an urgent need or disaster. ill. Additional Information Regarding Project Proposals A. All legal requirements of the City of Saint Paui must be met, such as: . 1. The property must be appropriately zoned, meaning the property must conform to use under the City Zon+ng Ordinance. 2. For new construction, properties must be on legal buildab{e lots. 3. Priorto pertorming leasehold improvements, the tenant must obtain written permission from the buifding owner for the improvements. 4. Prior to praject implementation, ali necessary permits must be ob#ained. Upon completion of improvements, the applicant must have followed, and the property must meet, aii appiicabie code, �ermit and lieense requirements. FinaNy, the property must be properly inspected and must have a Certificats of Occupancy upon completion, ifi appiicable. 5. An applicani must have the ability to repay if requesting a loan and be an acceptab�e credit risk �s determined by a bank ar fhe City. Y3 (See undenrdriting standards}. 6. Funds wil( be released on a reimbursement basis upon receipt of documentation of eligible expense. 7. Littie Davis Bacon regulations must be foliowed as applicable. B. Projecfs and proposals must not conflict with adopted plans and policies of the City of Saint Paul. C. Proposals that are operating grants for cu(tural organizations must provide audited financial statements or Form 990 for the previous three years. iV. loan/Grant Fees, Loan Rates, Terms, Co(lateral, and Servicing A. Rates wili be determined by the applicant, the Board and the Credit Committee's ana(ysis of application. The PED Gredit Committee will analyze capital loan requests and rate them based on indastry and City standards. B. Terms and conditions will be negotiated and customized for each individuai proposal. C. Co(laferal may be required. The Cify shali file for any Iiens required on collateral. D. Operating Assessments. If STAR capitai funding is to be matched by the operating assessment, no funding can 6e disbursed until finai ratification of the matching operating assessmenf. E. Loan Origination and Servicing 1. Individual payments for loans wi(1 be processed through PED Accounting. 2. Servicing Fees a. Loans and grants originated through the City wili be charged a closing fee equal to 1 1/2% of the STAR amount, before any disbursements. (An approved origination fee may be charged by program operators for each Ioan originated.} b. A fee of $5 to $10 will be collecte� with each foan payment. c. A charge of 5% of the monthly payment will be assessed on late payments aver 15 days definquent. d. If another party {approved by PED Credit Committeej assumes the mortgage, a 9 1/2% assurr�ption fee on the outstanding principal balance will be charged. 3. A sub-accounting system will be used fo monitor the totaf amount and ta provide periodic reports to: a. the grouplindividual that has the loan. b. project managers. i[! 'x '' t 4 • 9� - ��05 c. the City's Sudget Office. d. the Mayor. e. the City Council. f. citizens of Saint Paul. F. Loan Loss Ratio. In order to address foan needs that cannot be met through standard financial institution lending programs, the STAR Loan Program will have a loan loss ratio which may at times reach 20%. The risk rating system will be used to help assure that fhe program operates within this range. V. Project Development and Implementation A. Upon selection by the City Gouncit, the Cultural STAR pro}ect applicant wili receive a letter of commitment that specifies a period of time during which the appiicant must refine the project or program, secure the private match, meet other 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 canceliation of the commitment. Projects should be completed or self-sustaining within the period ofi time approved by the STAR Board and specified in the agreement. B. Implementation Contract Prior to the impiementation of an appiicant's project, a contract will be entered into between the City of St. Paul and the selected applicant. The contract wilf contain, at minimum, a scope of services to be performed by ali parties, a ptivate match section and a budget section outlining all fund+ng sources, and an implementation timeline. The contract will be signed in accordance with City policy. Implementation contracts require: 1. That the project applicant has appropriate liabifity insurance that insures the City of St. Paul. 2. Adherence, where applicable, to #ederal, state and local reguiations and poiicies pertaining to the use of funds, such as prevailing wage standards, selocation requirements, affrmative action, targeted vender programs and the First Source �gram. T#�e na#�re of the project (i.e. residentiai vs. commercial} determines which regulations apply. Staff will hold a compliance me�#ing �arior to implementation of the contract to identify appfacab4e rsgulations. Sales i'a�t �plicants are cautioned r�et�o make any commitments until they fullv understand�sotential com lin 'ance and funding reguia#is3r�. 15 3. Implementation must progress as projected in the application. Lack of progress is grounds for withdrawing funding. C. Sales Tax Fund Distribution . Sales Tax Fund distribution wil! generally be based on submission of invoices. Final payment wi(! be made upon completion of the project and receipt of the finai project report and evaluation. At the time of completion of all activities contained in the agreement or upon expiration of the agreement, any remaining project fund balances will be retumed to the STAR Fund. D. Projects are expecfed to be compteted within the time frame described in the final appiication. Requests for contract extensions are discouraged. Proposals are selected based on certain criteria and should nat be significantly changed during project impiemenfafion. 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 program's goals. PART VI - Review and Evatuation * Project Evatuation * Annual Report to City Councit and Mayor * Annuai Review of Priorities * Review of Allocation Goals * Audits - Quality Control i. Project Evaluation A. Semi-annual status reports will be required for each project to provide ongoing monitoring. The report will incfude project expenditures, status of match commitments and progress toward meeting expected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers will monitor and repork can individuai projects regarding progress and contract comp�ian�e B. A final evaluation a€ each project will be required to determine the extent to wMich fhe_�ro,�eCtl3as been successful. Project success wi11 be measured against e�ec#ed project oufcomes and the ov�ra41 objectives of ffie STAR Program. This final evaluation must be received before the final reimbursement reques# v,riH b� p�id. � q� - �05 It. Annual Report to City Council and Mayor The annual report should be presented in September of each year and should inciude: A. Progress reporFs on ali projects to-date, their focations, and cosfs. B. Percentage loans and grants awarded. C. Fiscal analysis of overall program. D. Effectiveness in supporting criteria. E. Estimated funds available for the next funding cycle. F. Eva{uation of the program process and suggested revisions. 111. Annual Review of Priorities (or criteria} Priorities for the cultural portion of the sales tax must be reviewed annually. These priorities shall be reviewed at a public meeting following the presentation of the annuai report. The City Council and Mayor shail clearly and pubiicly state priorities for the upcoming funding cycle. Target allocation goals shali be reviewed, as necessary, by the Mayor and City Councii. IV. Audits - Quality Contro� A. The City wiii estabiish a monitoring and control system to ensure that loan repayments are made under the terms of each projecYs agreements. 1. it wi(i be the responsibility of project developers to provide afl necessary documentation, as determined by the City, to determine program eligibility and ongoing programs' compliance. 2, Reports on revolving loan programs will be periodically provided to the project developers to assist in the mos�itoring of their programs' finances. B. Periodic externai audits may be required. 17 �d�'`fc�s SAINT PAUL CULTURAL INVESTMENT * The Cuitural STA GUIDE May 3, 1995 March, 1998 These guidelines have Board which is respo �. (Yz cent sales tax) py6K and City Gouncil. � Department Paul, Minne 55102. rogram * � developed for use by the Safnt Pau! Gufturai District, Inc. for review of Saint Paul Cultural Capital Investment Program s. The Board makes funding recommendations to the Mayor and Economic Development, 25 West Fourth Street, Saint Additionai Slopies of the guidetines can be obtained from this location or by calling 266-STAR (7&27). c�� y ous Program Overview The Cultural STAR Program will award grants and loans for capita4 pro' cts that are in the Cu)tura! District, prajects that support tHevCul#ural D�s �ct; and, projects tha# suppo�# opera#ions of cut#ura1;"organizat�o�s. � . Thraugh the f t 5 cycles (1995-1999), at least 75% of the annual culturai proceeds of e sales tax shall be invested ' within the boundaries o the targeted geographical area known as the Cuiturai District. �rojects i cated outside the target district r�;:u�:� demonst te a link to or support of activities within the targeted District. Key features include: * Program funding: 10 sales tax. of the proceeds of the Gity's half cent * Funds are awarded nually through a competitive application process. � Funds must be atched as required (see specific requirements for loans and gr ts) with appropriate resources. * Funds m t be spent on physicai improvements that have an expecte life of at least 5 years. * Eligi e applicants include any public, private, or non-pro�t entity loc ted in or doing business in Saint Paul. �` rogram allocation goals: a minimum of 25% loans, a maximum of 75% grants �' Program priorities: (see page 1 for more detail) * Projects and programs which help stabilize culturai organizations a� -y� within the cultural district. The emphasis shoufd be on "front of stage serrices" which impact the visitors. '� Projects which meet identified cultural customer and visitor * Projects which are supported by pianning efforts. '` Funding recommendations will be made to the Mayor nd Gity Council by the nine member Saint Paul Cultural Di rict, inc. Board, of which five of the nine members are appointed y the Mayor and approved by the City Council. Page ii TABLE OF CONTENTS PART I - Program Description 1. Purpose and Objectives 11. Priorities 11. Program Funding 111. General Policies I. E(igibte Applicants fl. Eligible Areas ili. E(igible Activities IV. ineligibie Activities V. Eligible Expenses PART Iii - Application � IV Timeline Procedural Guidelines PART Il - Eligibility Final Application Contents PART IV - ��' Saint Paul Cuituraf Selection Process Evaluation of Apoli Board Selection PART V- Loans, an Grants I. Amount of fun s aliowed per project Ii. Matching Re uirements II1. Additional formation Regarding Program or Project Proposals IV. Loan Ra s, Fees, Terms and Coilateral V. Progra Development and Impiementation PART VI - Review and Evaluation I. oject Evaluation II. Annual Report to the City Council and Mayor ill. Annual Review of Priorities N Audits - QuaGty Control information on the program, ca11266-STAR (7827) °l8 -�tos 'Page 1 Page 1 Page 2 Page 3 Page 3 Page 4 Page 4 Page 6 Page 6 Page 7 Page 7 Page 8 Page 9 Page 9 Page 11 Page 12 Page 12 Page 13 Page 14 Page 15 Page 17 Page 17 Page 17 Page 17 Page iii 9 $ -�tos PART i - Program Description * Purpose and Objectives * Priorities * Program Funding '` Generai Policies Program Purpose and Objectives in 1993 the City of Saint Paui imposed an additionai one-haff c t sales tax to be used for the renovation and expansion of the Civic Center, r� vestment in our neighbarhoods, and investment in our cultural industry. �;he intent of the City Cou il is that the proceeds be used in such a way that they have significant and po tive long term economic impact �� part�c�iacg� ten percent of the net sales t proceeds have been aliocated ��rsjeets for furthe��cuitura ctivities. A. Provide cultural a economic benefit to Saint Paul B. Leverage the sa s tax doliars with private resources C. Create and/or tain jobs D. Enhance an support the cuitural district as a visitor attraction E. Develop r ationships between the cultural district and the neighborhoods F. Stimulat vitality of downtown G. Suppo and enhance Civic Center mvestment t�i': ��? � ..,, :�� '�� ..,-�,� w � �;; n. riorities fior the 199� �, Cycte � 3 Cultural STAR Program The City Council and Mayor shail c{ear{y and publicly state annual priorities fior the use of the culturai sales tax funds. �b�`=��1��€�� "'`"'"`" '`"° `" Page 1 °�8'- ��.�. -.��,- - - - - - - - -- - - - � � G Projects and programs t#�at fieip strengffien �rief�-pei�-: eap'ttal-sr�pper�; cultura{ organizations within the cultural Projecfs that meet identified culturai customer and visitor additional parking and restaurants, and signage for cul� Projects that are supported by planning efforts suc�i'as the List of the City Council's Proposals: "More likely to Fund in 19� 9�" 1. Projects and programs that heip sta ' ize the cultural district through capitai and �.;�� °:C� of cuitural organ� ations in the district 2. Projects which respond to identif d cultural visitor needs such as increased and conveniently located safe park' g, additional restaurants, and additional location signage for cultural institutio . 3. � ' � . � ,� �� . . ; _ _ �..��:�� , �:, � �� 4. Proposals that maximi the m""�" ievefage of City STAR. funds. f'reje��TR�n �-� .w ° ..�� a - • ° e - . s ..� � _ � i � ��` . �.:.,a:,.:�., ..,.:,: �:,.- �eds - such as organizations. � a m � 1�� i:i�6z<�na�ir%�re�:,AtiG�aeo-.�is:i� supporting multi-cultural dimensions of our community. likely to Fund in 19�8 9�" Gommerciai projects or amenities that do not serve people at street level. �� .��:.�,�� . y oS Page 2 q,�- y.as 3. Capitai projects lacking adequate and specific matching funds. 4_ Ongoing genera! operating support. 5_ Civic events thaf do not specificaliy relafe fo cu{turat organiiafions Cultural Disfrict such as parades and fesfiva)s. ifl. Program Funding A. Ten (10°l0} percent of the proceeds of the % cent sale ax, along with its corresponding interest earnings, are dedicated to in stment in cultural projects. B. Available STAR funds for Cycie 4 will include nds coilected through December 31, 1998. Cycle 4 wili be anno ced in Spring, 1998, with an estimate of available funds . The estimated funds will be noted in e annual City budget as Cultural STAR program funds. C. Ailocations 1. At least 25°lo per t of the (10°l0) cuiturai portion of sales tax proceeds shall b allocated to low interest loans which will return money to the Itural account. 2. A maximum 75°lo percent of the proceeds shall be a{located to direct pran . IV. Generaf Pol A. No more t an 25% of annual cultural sales tax proceeds can be for mufti- year fun ing . Muiti-year funding wiil not be a priority in the first two years. B. The ame or similar proposal can not be submitted to more than one of th ollowing programs in any o�e tunding cycle: the CiB program, the hborhood STAR program, and the Culturai STAR program C '� All loan or grant proposals shall be for $10,000 or more. Sales tax funds shall be matched as follows. These are considered minimum matches with preference accorded for larger than required matches: 1. Loans shali be matched 1 private $ to 1 STAR $ 2�;:Grants�+�;��of $10,000 -$100,000 shali be matched 1 3;;Grants�t��" a��'��s of $100,001 -$25Q000 sha11 be matched 2:1 4. Grants �ar�ap�fa�p.,��,��' ��gof $25Q001 and up shall be matched 3:1 Page 3 9 � - �.c�s 5. Granfs for suppost of culturat organizafion operations r�eed no r buf are iimited to 2b°lo of average annual budgef for tfie last fhree up to a maximum of $SQ,OOd. E. Projects considered to be of insufficient quality or impact will n be recommended for funding, even if fiunds are availabie. F. {t is unlikely that the Board will approve multiple grants fy6m one principle applicant in any given grant cycle. / PART 11 - Eligibility * Eligible Applicants � Eligibie Areas * Eligible Activities * Ineligible Activities * Eligible Expenses I. Eligibie applicants A. Any public, private, or non-pr fit entity, which is located within or do business within the City of t. Paul - EXCEPT FOR THE FOLLOWING: 1. Churches and r igious organizations. 2. Political parti and related political action groups. 3. Federal, st , and county agencies and departments. 4. Individual omeowners. 8. City depart nts or divisions are eligible when in partnership with or supported an eligible organization. I1. Eligibie a�as A. All a as within the legal limits of the City of Saint Paul. B. F r the first five years of the program (calendar years 1995, 1996, 1997, 99$, and 1999) at least 75°l0 of the annual cuitural proceeds of the sales tax shali be invested in sa�itat projects within the boundaries of the targeted geographical area known as the Culturai District in order to maximize and support the City's investment in the renovated and expanded Civic Center. After five years the investment priorities shall be reviewed and revised if appropriate. The Saint Paul Cultural District is defined as follows: " The geographic area bordered by interstate 94 on the north, Cedar Street on the east, Keliogg Boulevard on the south, and Page 4 9g-`1a5 111. John Ireland Boulevard to the west." Eligible activities ' � . Capital improvements assets must have an expected life of five {5) or more years. A. Small scale pubtic improvements such as: trees and piay equipment, beaut�cation of public space, decorati� particularly as they relate to the Cultural District or a 1. Trees, shrubs, and lighting should promote s fefi aesthetics. 2. The Program is not intended or norr 3. � 2 �hfubs, benches, : lighting, etc. plan. as well as to do major pubiic improvements such as street p mg, curb and gutter, sewer and water. Major public improveme s should be channeled through the city's CIB process. When additionai operation or m" tenance costs result from the public improvements, the STA proposal must identify how this project area wiii privately pa or their costs. Requests for capital improvements that are d med by City policy as "above standard" will not be c sidered or reviewed unless accompanied by a le Ily-binding and enforceable plan for maintenance andtor operation over the useful life of the improvements pr osed to be funded through the STAR program. The st acceptable method for maintenance and operation of ab e-standard public improvements is assessments on the prope taxes of those receiving the benefit from the the �epts, though proposais that commit private or non-profit �ns to operate and maintain above-standard public �ents will be considered, depending upon (at the City's it) the viability of the organization and the enforceability of agreement. s to cuttural or commerciai property such as construction or other capital improvements. Examples Most fixed improvements including the construction, or rehabilitation of wails, ceilings, floors, lighting, windows, doors, entrances, electricaf, plumbing, mechanical, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. Eligible improvements such as, movable seating, and camputers, phone systems and technology directly related to cuitura! presentations or visitor services. Page 5 9'g' - �I OS 3. Permit and license requirements must be fulfilled prior to commencemenf of a project. {n addition, the project musf compliance with all legal requirements of the City . Health and safety items required by City building codes. a. Expansion of a commercial structure will be allo ec meets all City requirements such as zoning, rkin� and license requirements, etc. C: �s: �: if it permit Heaith and safety items required by Ci}�/buiiding codes. � &. Economic development 1. Acquisition costs ir project. 2. Demolition cos 3. Commerciai rkin purchase), emoliti project 4. Costs c � . � inciuding but not limited to: ing purchase options as part of capital development. Acquisition (by lease or n, and construction as part of a larger capital eveloping commercial parking facilities are eligible ff the parking is to be privately-owned, the STAR �t must be in the form of a loan, secured by a lien on the If the parking is to be publicly-owned, the STAR �t may be in the form of a grant, matched by capital and operating assessments over the usefuf life of the improvement. Utility relocation and construction as it relates to a pro}ect. Ciearance: acquisition of land or a building for clearance will oniy be undertaken when it is an initial step in a proposal which wili resuit in a larger capitai project as part of this proposal. Construction costs including loan interest and fees. Soil remediation as part ot a capital project. IV, /ineligible activities Any activity not leading directly to the completion of a capital project. A. Pianning or study activities. Page 6 98' - N°s v. : Use of STAR funds to develop a STAR proposal or to organize an entity to manage an STAR proposal. / C. Public service programs such as crime prevention, bfock nursing programs, child care, a�d similar efforts that do not resuit in dire physica! improvements. These activities may be included in y ur tota! project description/strategy, but they are not eiigible for sai tax fiunding. They wiif be directed to other City programs, if possihle, o private funding for fhese activities can be part of the project match. D. Refinancing existing debts, except when it resuits ' business expansion, job creation, or is part of a larger project. E. General administrative expenses inciudin project management, planning, development and administrative costs a crued before final approvai of the appiication, are not eligible for sales t funding. Examples include rent and utilities. Activities located outside the G. Major public improvement p jects, i.e., street repaving, sewer work, recreation center, etc. H, Sweat equiry - payme for the applicanYs own labor and performance for construction or imar ements. Duplication of coordinate or arrent City program. Applicants are encouraged to proposed projecfs with existing programs. include: Eligible A. Any le 1 direct project cost that specificaily pertains to the execution of the ca ital project. Definition: Explicit costs that are expended ta carry the capi i project to compietion. Exampies are dependant on the type of pr ect/program being impiemented: • buiiding permits; design, engineering, soii, environmental, legal, financing, licensing and inspection fees; • generai 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 standards; • direct costs of staff management that are clearly associated with the completion of a capital project. Page 7 ag� - yos Note: Persons receiving the benef+t of the project/program are not e{igible for developers fee. Example: business owner rehabilitating hislher busine site. / B. Personnei saiaries, eocitaaaf employee �ees a��" costs antic�pate�t by a cul�rafAr."gan�za,�a�o� t�iaf' 1: Ena61e a,.c�7fuFa1:� 2: ��: PART til - Application Pro dure * Timeline * Pracedural Guideline * Pre Application Co ents * Final Appiication ontents 1. Timeline The annuaf timeline ill be announced at the beginning of each funding cycle. II. Procedurat uidelines . , , � B omplete final application must be submitted, on time, for a proposaf to e considered during a funding cycle. �^ � Staff will make available for interested parties, all copies of the pre- f applications and final applications for comment and review. B Staff will organize a workshop at the beginning of each cycle to provide program application information to prospective appiicants. Attendance at the orientation workshop is strongiy recommended. Staff may be cailed upon to assist applicants in developing Page S �tg- 4os applications, based on availability of staff. D. � Fi�af Applications may not be changed or modified once submitted. the applicant's responsibility to fhoroughly develop the proposa� submission. However, applicants may be asked to provide addi ' n +nformation in the course of review. . . in��ri-sr2i:�:ni�riui��i��.n��c=i�=.�ii%a��ii�l=ait� iiG.Gna:i:ii�:�a:a:�.i.:a�'��"G ' " l�fs��:i�n� t��w _ _ _ _ i _ _ __ ��;�Nf �aF Applicatio Contents f-i+�al Application f rms will be ��„tk,i� pfeeess—The rms will be accompanied by requests for additional project- specific infor ation that must be addressed in the €�aF-application. Staff, if available, ill be identified to provide technical assistance at eligible applicanYs request. All ap lications must be submitted on the Sales Tax application form and contain the Ilowing information, including but not limited to: Describe the purpose of the proposal including: 1. Cultural district need which the proposal addresses. 2. Detailed description of the proposal's activities or elements. 3. Cultural district impact and projected results. B. Level of support and participation. Page 9 qg�-yos C. � E. 2. Up to three (3) additional letters of support if the letters clarify, a to, or strengthen the proposal. 2. Description of community participation Applicant's management experience and capability. Piease p vide a board membership list, if appiicable. 501 {c){3) verification fbra(I op Requested amount and type(s) of funding (gra�t andtor loan) Er. Budget 3. Projected levei and source of private ommitment 2. Sources and uses statement for a1l roject funds 3. Additional elements such as: a pr ject proforma, sources of private lender financing, three years of ast financial data, and other information, may be required s it pertains to the proposal. G�r: Time line for project that is spec' c and lists milestones. H:i Map indicating project locati and street boundaries. !x If above-standard public ' provements are proposed for funding, describe the legally-binding and nforceable plan for operating and maintaining them over the useful fe of the improvements. ��; Project's k�u=� Application outcomes and a description of how they will measured. A non-refundable application fee ot $100 must application forms. if a proposai is inco lete or does not appear to be sufficiently devefoped to aliow fior reasonable review he Saint Paul Culturai District, inc. Board may return the proposal to the applicant f further work with the suggestion that the proposal be resubmitted during the ne� nding cycie. PART V - Project Selection * Saint Paul Cultural District Inc. Board * Selection Process * Evafuation of Applications * Bonus Points Page 10 q g -�{os The Saint Paui Culturai STAR ^'-�«'-�„�: Board Five members of the Saint Paul Cultural STAR ^' Board are appointed by the Mayor and approved by the Gity Councif. The remaining four members of the Board are elected by the membership of the cultural 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 %2 cen'� sales tax proposals to the Mayor and Gity Councii. , 11. S@I@Cti011 PfOCeSS - the selection process for proposais witl be coi and the Board wili determine the quality of the proposals. The number applicants to be funded is dependent on the size and quality of the pr � and the availability of funding. A. f're-a�ptiea#tert E#a `i�uti� review: 1. �#a#f wrkrradvssee�.�icos�e��i �� 3��- City staff principais ot the entity, City of Saint Pau{. a. criteria provided to identify adver b. City staff wili pre highlighting th : c. the summa wi � C:� an B1 identify any entity ing o�cers or � relationship with the Resolution 95-10111-2 will be used eefending relationships. Care a summary of ail pre-appiicants, � with an adverse lending relationship. be forwarded to City Councif, along with a ting authority to proceed on the processing of the p -applications. upon ity Council authoriaation, the STAR Board will accept elig� le pre-applications for review. Applications, will be reviewed and summarized by staff. will: Be rejected by the °-�-` "�•�' ^••"••�-' ^�°`-�-"--. Board or if insu�ciently developed, the applicant may be invited to resubmit the proposal during the ne� funding cycle. Be accepted and ail information wilf be presented to the ° Page 11 9d _4.os ,...��..__� �:_._:,.s �.... goard. An estimate of cifij staff project management costs will be added to the propasal. Additional technical and compliance review will be provided by the folic advisory bodies: , a. The PED Credit Committee will review the appli �ons for fiscal responsibility, risk evaluation and appro ateness of interest rates, terms and conditions, and pr �de this information to the Board to assist them i making recommendations to the Mayor and Ci Gouncil. b. The Planning Commission wiii rev w proposais for compliance with the City's Com ehensive Plan and Capitai Allocation Policy. Comments iil be forwarded to the �a"tr� ^-..' ^.."..�-' ^:-`-:_"-- g rd, Mayor and City Council within the established ti ine. c. Information on prop als will be forwarded to the CIB committee for infor ational purposes to aliow for coordinated deci on making and for coordination, comment, and review, C ments will be forwarded to the Mayor and City Council ithin the established timeline. C. Anyone wishing to re �ew and make comments on applications, is encouraged to sub � these comments in writing to the °-:-"'-..' ^..".._�° ^`-� ,�� Boar ithin the time frame of board action. The applications wiii be availabl or review in central locations such as: the Saint Pauf Planning and conomic Development Department, the Gentrai Library. D. The ��`�� Board wii! review the applications based n program guidelines, CIB Committee and Planning Commission com ents, and credit cammittee guidance, and make funding re mmendations to the Mayor and City Council. E. �The Mayor will present final recommendations to the City Council. F./ The City Council will make final selections of STAR project proposais and / approve their budgets. 111. EV11uatIO11 Of appllCatlOfls: Proposa{s wil{ be reviewed for the following etigibility and additional se(ection criteria. A. Proposal supports published priorities for the use of the Culturaf Sales Tax proceeds Page 12 q�- �}os C Proposal is an eligibie program activity. (See Eligible and lneligible Activities sections.) / D. Proposal is not in conflict with any city comprehensive pian ment, small area pian, capitai ailocation policy or adopted City ordina s and policies. E. F G. H. IV. Proposals may receive following: A. a positive impact on ta� : Proposal meets the minimum matching requirements. (See matching section.) B. a positive impact on ' b creation G. match which exce s the required amounts D. Project is part of weli-defined, broad strategy to increase the vitality of the Culturai Qi rict E. Sufficient pla ning or feasibility analysis indicates a high probabitity of community input and serves the nce if they include the F. G. H, I. J. �7 Proposal is financiaily feasibie. Requested Gultur STAR fiunds together with other project resources are adequate to me the identified need. Managing organization has the capability to uccessfully manage and implement the project. Project effectively addresses a previo ly identified or otherwise clearly documented District need or goa{. Proposal was developed with cultural district. success; a Cu�tural " tri�t support is documented - an appropriate mix of property owners ndlor business peopie relevant to the project inciuded in the piann' g, development and impiementation of the proposal. Pro sals include direct coordination with other city, private, or non-profit pr rams and projects oject can leverage additiona{ funds or resources. ercentage of the match that is direct cash or capital investment, is high All administrative expenses are funded through other sources ;T V - LOANS AND GRANTS * Amount of funds allowed per project * Leverage Page 13 98- �os i, 11. Additional Information Regarding Program ar Project Proposals Loan Rates, Fees, Terms and Collateral * Program Development and implementation Amount of funds aliowed per proposal: A. Minimum/maximum Requests Allowed 1. There are no maximum loan/grant projects: . 2. The maximum for an operat��ii; 3. The minimum for the regular pn 4. Proposais witl be funded based Matching Requirements A. Sales:#a� fern�s°.s�ia11 tt�.� for ca�i€a3 is $10,�00. �ir merits and funds availabie. B. County,,�rivate, State and Federal funds can be used as a match. C. Oth City money can not be used to match STAR funds. Far purposes of thi program CDBG money from City sources cannot be used as a match, ( exception is listed under D). � F. 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. Matching funds must be directly related to the project or program in the applicanYs proposai. �pplicants are e�couraged 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. Page 14 �g-yos G. Eligible matching contributions may inciude: Direct financial resources such as private expenditures for commerciai or residential physical improvements, contributio funds raised from within the District, foundation and corpor grants, and local lender commitments or operating asses� estimated over the useful life of the improvements. � Ifl. �� J. K. Additional A. 2. Indirect contributions can include: in-kind : residents and businesses such as personnel, offce space, supplies, volunteer labor, and s� physical improvements. The value of swe e labor may not exceed 30°!0 of the totai m ch. Ineligibie matching contributions include: from �ssional services, equity for + and/or volunteer 1. Volunteer meeting time. 2. In-kind service donations from S R applicants such as already existing o�ce space, phone se ice, etc. In-kind donations from parties other than the applica are eligible. 3. Volunteer labor and sweat uity over 30% of required match. 4. Any donation not directly lated to the S7AR project. Under no circumstances The STAR board has matching contribution Exceptions to the board in highly� an urgent nee oi Ail le i requirements of the City of Saint Pau! must be met such as: 1, The property must be appropriately zoned, meaning the property must conForm to use under the City Zoning Ordinance. 2 For new construction, properties must be on legal buildable lots . Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the improvements. 4. Prior to project implementation, ali necessary permits must be obtained. Upon completion of improvements, the applicant must have fol(owed, and the property must meet, all applicable code, permit and license requirements. Finally, the property must be properly inspected and must have a current Certificate of Occupancy upon completion, if appiicabie. match be reimbursed with STAR funds. to recommend approvai of other a case by case basis. �atch requirement wiil be considered by the STAR asuaf cases such as when a proposal is in response to disaster. Regarding Project Proposals Page IS q�-�os � G: 5. An applicant must have the ability to repay if requesting a{oan and be an acceptable credit risk as determined by a bank or the city. (See underwriting standards). 6. Funds wiil be released on a reimbursement basis upon receipt f documentatio� of eligible expense. 7. Littie Davis Bacon regulations must be followed as appfic le. Projects and proposals must not conflict with adopted plans nd policies of the City of Saint Paul. IV. Loan/grant fees, Loan Rates, Terms, Col teral, and Servicing A. Rates: wili be determined by the appiicant, e Board and the Credit Committee's analys' of appiication. The PED Credit Committee will analyze capital lo n requests and rate them based on industry and city standards. B. Terms: terms and conditions - wil e negotiated and customized for each individual proposal. C. Coifaterat may be require . The City shafl file for any liens required on cotiaterai. D. Operating Asse the operating as: ratification of the E. Loan If STAR capitai funding is to be matched by no funding can be disbursed until final operating assessment. and Servicing lual payments for loans will be processed through PED nting. 'Servicing Fees a. Loans and grants originated through the City will be charged 2. a closing fee equal to 1 1J2% of the STAR amount, before any disbursements. (An approved origination fee may be charged by program operators for each foan originated.) b. a fee of $5 to $10 wiU be coliected with each loan payment c. a charge of 5°la of the monthly payment wili be assessed on late payments over 15 days delinquent. d. If another party (approved by PED Credit Committee) assumes the mortgage, a 1 1/2% assumption fee on the outstanding principal balance wiii be charged. A sub-accounting system wifi be used to monitor the total loan 3. Page 16 a�_��s amount and to provide periodic reports to: a. the groupJindividua{ which has the loan b, project managers c. the City's Budget Office d. the Mayor e. the City Council f. Citizens of Saint Paul V F. Loan Loss Ratio - in order to address loan needs which through standard financiaf institution lending programs, loss ratio which may at times reach 20%. The risk ratig an,rSot be met y#f�have a loan system will be range. A. Upon selection by the City Council, the C ural STAR project applicant wiil receive a letter of commitment which s cifies a period of time during which the applicant must refine its projec or program, secure its private match, meet other requirements as sp ified in the letter of commitment and enter into an agreement with th ity for the use of the Star funds. Failure to act within the period of ti e specified in the commitment letter may result in canceilation of the mmitment. used to help assure that the program operates Project Devefopment and � Projects should be complet or self-sustaining within the period of time approved by the STAR Bo rd and specified in the agreement. Impiementation Prior to the imple entered into betv contract wiil con alf parties, a p v, funding sou es, signed in ccord; � tation of an applicanYs project, a contract will be n the City of St. Paul a�d the selected applicant. The am, at minimum, a scope of services to be performed by �te match section and a budget section outiining ali and an impiementation timeline. The contract wiil be �nce with City policy. contracts require: that the project applicant has appropriate liability insurance which insures the City of St. Paui. adherence, where appiicabie, to Federal, State and Locai regufations, and po(icies 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 (i.e. residential vs commercial) determines which regulations apply. Staffwill hold a compliance meeting prior to implementation of the contract to identifij regulations applicable to project activity. Page 17 ��-yos Sales Tax applicants are cautioned not to make any commitments untif they fuity understand potential com lip ance and funding regulations. 3. implemenfation must progress as projected in application, lack o progress is grounds for withdrawing funding. C. Safes Tax Fund Distribution - Sales Tax Fund allocations will enera be based on submission of invoices. Final payment will be m de upon comp{etion of the project and receipt of the final project rep and evaluation, At the time of completion of all activities con med in the agreement or upon expiration of the agreement, any r aining project fund balances will be returned to the STAR Fund. D. Projects are expected to be compieted within th time frame described in the final application. Requests for extensions o contract effective dates are discouraged. Proposais are selected b ed on certain criteria and should not be significantly changed durin project implementation. E. Loans repayments will be made to th Cultural STAR Trust to be reused for loans, grants and other expens that further the development of the goais for use of Cultural Sales T proceeds. PART VI - Review and E�luation * Project Evaluation * Annual Report to th ity Council and Mayor * Annual Review of riorities * Review of Alloc ion Goals * Audits - QualibG Control I. Project Eva ation A. Semi- nnual status reports will be required for each project, which will pro � e an ongoing monitoring process. The report will include project e enditures, status of match commitments, and progress toward meeting pected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers witl monitor and report on individual projects for progress and compliance with contract. A final evaluation of each project will be required to determine the e�ent to which the project has been successful. Project success wifl be measured against expected project outcomes and the overal{ objectives of Page 18 q8-�os the STAR Program. This final evaluation must be received before the final reimbursement request will be paid. II. Annual Report to City Council and Mayor The annual report should be presented in September of each year and include: A. B. C. D F. Progress report on aN projects to date, their locations, and Percentage loans and grants awarded Fiscal analysis of overall program EfFectiveness in supporting criteria Estimated funds availabie for the next funding cycle Evaluation of the program process and suggested r visior 111. Annual Review of Priorities (or criteria) Priorities for the culturai portion of the sales tax These priorities shall be reviewed at a public m� of the annual report and the Council and MaycN' priorities for the upcoming funding cycie. f m t be reviewed annuaity. � ing following the presentation shali clearly and pubiicly state Target ailocation goals shall be reviewesd; as necessary, by the Mayor and City CounciL / IV. Audits - Quality Control A. The City will establish monitoring and control system which ensures that loan repayments are ade under the terms of each project's agreements. 1. it will be the esponsibility of project deve(opers to provide ail necessa documentation, as determined by the City, for purposes of deter ining program eligibility and ongoing program compliance. � � on revolving loan programs will be periodically provided to :ct develapers to assist in their monitoring of their programs external audits may be required. Page 19 y {, T aRIG1{�A�. Presented By Referred To Council File # � � `� Green Sheet # O�� RESOLUTIQN OF AINT PAUL, SOTA i � �Z Committee: Date 1 2 WF�REAS, Cycle 4 of the Cultural STAR Loans and Grants process is to commence in the 3 Spring of 1998; and 4 5 WHEREAS, the Cultural STAR Board has considered 1997 Legislative changes allowing for 6 Cuitural STAR funds to be used for assistance in operating funds for cultural organizations; 7 and 8 9 WI-�REAS, the Cultural STAR Board has revised guidelines for the disposition of Cultural 10 STAR funds. il 12 NOW, THEREFORE, BE IT RESOLVED that the City Council adopt the revised "Cultural 13 STAR Program Guidelines, 1998"; and 14 15 BE IT FURTHER RESOLVED that the City Council directs the Cultural STAR Board to 16 commence with the Cycle 4 Cultural STAR Loans and Crrants funding process. Department of: Adopted by council: Adoptio Certified b By: � � lpprove y yo Y� Date �� C � � y Council Secretaxy 2 . � .. - . l.l1 � �/�i"�i/L('� i � � , `' ., i� ../n^� �/ � Counail k. t.ov S-Y �QC�„ b-� S �b �6/� S I GREEN q8-�tQS '� No s��27 ■ u �.,a,.��.� - - v �� j, C�n.ris FOR � LIIYATiOMItY � I ❑ CIIYCIFRK ❑ R141WLfFR�IICFEM ❑ ALIMCW.]ErtY/�CCfG _ � Ml'OR(ORKID�ANt/ _,__�� {CUP ALL IOCATlONS FQR SIGNATURE� TOTAL # QF SIGNATURE Ffir' �:'� �p w. ai `�Co re v c2 w a.w�2 �D.¢ U C� v �.c� ¢_L(,+nQ ,S '"' � u�"�L{ J l �� G„�� o-p'� i'tco-+�nw�eKt�tC/ �Vt�-a S { a Q� � a lgas ��a�s t��►c� PIANNING CAMMiSS10N CIB COMMITTEE CMl SERVICE COMMISSION Has tltis persoMnn ever wakeC w�tler a contraCt fw tM1is department? YFS NO tmsthie persoMrtn e+er teen a cil�' emdovee9 YES NO Does this P��tm P� a sJdN nat riwma11Y0�°.�'� bY any wrtent city �P�oYee? YES NO Is this personlfitm a targetetl ve�tlw7 ' YES NO ohain all v� answe�s on seosrate sheet s�W attach W areen sheet i 5`� 8' C� l�C r�t S t h� -�cs �� L�y c y c� i� uuaca m eu-rrtvvru �a.V. P�ocep� -to �v�� ul�u�ral ST�-�. �r��ec-F'S n � � . . 1 'a'f.— :. k p�r!/��.rylfCP � a 2 �.3 \.#�ye.Ykl�:c'l ncs+cc e c�.r �ahe ,� .., -:, s , - � ki�Yt,kR'S OFf}CE �� 4. ` :^ , ; ` ,»�� J�....�x� �� c�c-t-��( sz�-� -F�� 0. � 4�(�«-�.��1 AL AMOUNT OF TRANSACTION )IHG SOURCE �I0.L INFORMAiION (IXPWN) COST/REYENUE BUDGETED tCiRCLE ON� . YES NO ACTMTY NUMBER /�� [9 W1.tdSLia f ��a�Lta t 4�¢!��P� �. *� .. "� ,... S l "_..�..� , . ..._,.�.___ "_ ' _ _ r DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Pamela Wheelnc/y Director CITY OF SAIlVT PAUL Norm Coteman, Mayo> 25 West Fourth SYreet Saint Pau� MN 55702 MEMORANDUM DATE: March 20, 1998 TO: Pam Wheelock FROM: Allen Lovejoy w� RE: Cuiturat STAR's 1998 Program Guidelines Proposal ��~ � Telephonz 61L266-67Q0 Facsinule: 611-228-3220 Attached are the recommended guidelines for the 1498 Cultural STAR Program from the Cultural STAR Board. Gu3deline changes focus on two issues: First, allowing funds to be used for cultural organization operations funding as per the 199'7 Legislative modifications; and Second, elimit�ating the pre-application process. The Cultural STAR Boazd has worked very hazd to put reasonable limits on the ailowable uses for STAR funds. In particular, the following provisionsltext set the parameters for operations assistance: "Use of STAR funds for operations should further the mission of the cultural organizarion and shoutd ei�hance its financial stability" (p n "Funding of Cuitural STAR shall comply with one ar more of the following criteria: H. Enable a cultural organization to "broaden its base" of earned or contributed support. I. Promote and/or unplement e�ibitions, performances, and cultural events that take place within the Cultural District, particularly those which have potential for bringing new visitors to the Cultucal DisYrict "(p 1) Proposais "Less Likely w Fund in 1998" "4. Ongoing general operating support. 5. Civic events tbax do not specifically relate to cultural organizations within the Cultural District such as parades and festivals." (p 3} "5. Grants for support of cultural organizarion operations need no match, but are limited to 25% of average annual budget for the last three years up to a ma�rimum of $50,000." (p 4) qg-�os Eligible activities include: "C. Assistance to 501(c)(3) cultural organizations' operations such as fundraising and promotions. Examples include: 1. Special fundrainsing efforts that result in a substantiated projection of increased patronage or increased financial support. 2. Promotion and/or implementation of e�ibitions, performances, and cuitural events that take piace witlun the Cuitural District., particularly those which have potenrial for bringing new visitors to the Cultural District. 3. Computers and/or telephones so long a s they are integral to a broader purpose and not the primary focus of the progosal." (p 6) Eligible expensesinclude: "B. Personnel salaries, contract employee fees and promotional costs anticipated by a culturai organization that: L Enable a cuitural organization to "broaden its base" of earned or contributed financial support; 2. Promote ancVor implement e�ibitions, perfortnances, and cultural events that take place within the Cultural District, particularly those which have potential for bringing new visitors to the Cultural District; 3. Are part of a multi-year strategy to substantially increase the base of patronage andlor financiai support; and 4. Can provide audited financial statements or Form 990 far the previous 3 years showing an ability to operate in a solvent and prudent manner as a cultural organization." (p 8) The key condition to the use of fixnds for operations is that proposals are focused on a mu16-year strategy and not part of ongoing operations. .r , q9-yo5 � � G�� ` � � KS `pN V � SAINT PAUL CULTURAL CAPITAL fNVESTMENT PROGRAM * The Cultural STAR Program � GUIDELtNES Adopted May 3, 1995 Revised May 13, 1998 These guide(ines have been developed for use by the Saint Paul Cuitural District, Inc. Board which is responsible for review of Saint Paul Cultural Capital Investment Program ('/z cent sales tax) proposals. The Board makes funding recommendations to the Mayor and City Councii. Department of Planning and Economic Development, 25 West Fourth Street, Saint Paul, Minnesota 55102. Addifional copies of the gUidelines can be obtained from this location or by calling 266-STAR (�827J. , f. Program Overview The Cuitura! STAR Program wili award grants and loans for capital projects in the Cultural District, projects that support the Cuftural District, and projects that support operations of cultural organizations. Through the first 5 cycles (1995-1999), at least 75% of the annuaf cultural proceeds of the sales tax shall be invested within the boundaries of the targeted geographical area known as the Culturai District. Projects located outside the target district should demonstrate a link to or support of activities within the targeted District. The 1997 Legisiature modified the provisions af the Cultural STAR Program, allowing up to 100°/a of program funds not previously designated to be used for operating support of cultural organizations. Use of STAR funds for operations must further the mission of the cultural organization and must enhance its financial stability. No cultural organization may receive funding for operation in more than three consecutive grant cyctes. Key features include: * Program funding: 10 percent of the proceeds of the City's ha(f cent sale� tax. . . * Funds are awarded annually through a competitive appiication process. * Funds must be matched as required (see specific requirements for loans and grants) with appropriate resources. * Funds spent on physical improvements must have an expected life ot at least 5 years. * Eligible app(icants include any public, private, or non-profit entity located m or doing business in Saint Pau1. * Program allocation gaals: a minimum of 25% loans, a maximum of 75% grants. ii G� -�� * Program priorities: (see page 1 for more detail) * Projects and programs that help stabilize cultural organizations within the Culturaf District. The emphasis shouid be on "front of stage services" that impact visitors. * Projects that meef identified cultural customer and visitor needs. * Projects that are supported by pianning efforts. * Funding recommendations will be made to the Mayor and City Counci! 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 Councii. iii TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objecfives II. Priorities Iil. Program Funding IV. General Policies PART 11 - Eligibifity I. II. 111. IV. V. Eligible Appiicants Eligible Areas Eligible Activities Ineligible Activities Eligible Expenses PART ill - Application Procedure � Timeline Procedurai Guidelines Application Cantents PART IV - Project Selection I. The Saint Pau! Cultural STAR Board II. Selection Process ill. Evaluation ofApplic�tions , 1V. Proposals May Receive Preference PART V- Loans and Grants I. Amount of funds allowed per proposal i(. Matching Requirements ili. Addifional information Regarding Project Proposais !V. Loan/granf Fees, Loan Rates, Terms, Coilateral, and Servicing V. Project Development and (mpfementation PART VI - Review and Evaluation 1. Project Evaluation II. Annual Report to the City Councii and Mayor Iii. Annua! Review of Priorities IV. Audits - Quality Controi For rnformafion on tha program, cali 266-STAR (7827) Page 1 Page 1 Page 2 Page 3 Page 3 Page 4 Page 4 Page 6 Page 6 Page 7 Page 7 Page 8 Page 9 Page 9 Page 10 Page 91 Page 12 Page 92 Page 13 Page 14 Page 15 Page 16 Page 17 Page 17 Page 17 tv : q8 f��J PART 1- Program Description * Purpose and Objectives * Priorities * Program Funding * General Policies i. Program Purpose and Objectives ln 1993, the City of Saint Paul imposed an additional one-half cenf sales tax for the renovation and expansion of the Civic Center (now called RiverCentre), reinvestment in our neighborhoods, and investment in our culturaf industry. The intent is that the proceeds be used to create significant and positive long-term economic impact. In particular, ten percent of the net sales tax proceeds have been allocated for furthering cultural activities. In 1997, the legisiature enabied up to 100°/o of all cultura4 activity funds to be used for operating support for cuiturai organizations. Funding of Cultural STAR projects shall comply with one or more of the folfowing criteria. A. Provide cultural and economic benefit to Saint Paul. B. Leverage the sales tax do{fars with private resources. C. Create and/or retain jobs. D. Enhance and support the Cuitural District as a visitor attraction. E. Revelop refationships between the Cuiturai District and the neighborhoods. F. Stimulate vitality of downtown. G. Support and enhance RiverCentre investment. H. Enable a cuiturat organization to "broaden its base" of earned or � contributed support. I. Promote and/or implement exhibitions, pertormances, and cultural events that take place within the Cultural District, particularly those that have potential for bringing new visitors to the Cufturai Districf. ti. Priorities for the 1998, Cycle 4 C�Itural STAR Program The Gity Gouncil and Mayor shali clearly and publicly state annuaf prior�ties for the use of the cuitural sales tax funds. For Cycle 4, they are: A. Projects and programs that help strengthen cultural organizafions within the Cultural District. B. Projects that meet identified cultural customer and visitor needs, such as additional parking, restaurar�ts and signage for cultura{ organizations. C. Projects that are supported by pianning efforts, such as the Saint Paul on the Mississippi Development Framework. List of the City Council's Expectations for 1998 Proposais: "More likely to Fund in 1998" 1. Projects and programs thaf help stabilize the Cultural District fhrough capital and operating support of cultural organizations in fhe district. 2. Projects that respond to identified cultural visitor needs, such as increased and convenientiy located safe parking, additional restaurants and additional location signage for culfura! institufions. 3. Proposals that enable a cultural organization to "broaden ifs base" of earned or contributed support. 4. Proposals that maximize the impact of City STAR funds. 5. Proposals that promote and/or implement exhibitions, performances, and cuitural events wifhin fhe Cuitura( District, particularly those that have potential for bringing new visitors to the Cultural Distr+ct. 6. Projects supported by the Sainf Paul on the Mississippi Deve(opment Framework. 7. Capital projects that the public can see or use. 8. Proposals supporting multi-cultural dimensions of our community. "Less likely to Fund in 9998" 1. Commercial projects or amenities that do rtot serve people at street level. 2. Capitai projects that fhe public cannot see or use. 3. Capital projects lacking adequate and specific matching funds. 4. Ongoing general operating support. � 5. Civic events that do not specificallq relate to cultural organizations within the Cultural District, such as parades and festivais. III. Program Funding A. Ten (10%) percenf of the proceeds of the %z cent saies tax, along with its correspond'+ng interest earn+ngs, are dedicated to invesfinent in cultural projects. B. Available STAR funds for Cycle 4 wil! include funds coliected through December 31, 1998. Cyc1e 4 wi(I be announced in Spring, 'f 998 with an estimate of available funds. The esiimated #ur+ds wi(! be noted in the annual City budget as Cultural STAi� program funds. C. Allocations 1. At least 2�% percent o� t#�e{'f 0%} cultural portion of saies tax proceeds shall be allocated to low interest Ioans that will return maney to the cultural accaunt. 2. A maximum of 75% per�# �f #he proceeds sfiaTi be allacated to direct grants. . ,, ��-�o� IV, General Policies A. No more than 25% of annuai cultural sales tax praceeds can be for multi- year funding . Multi-year funding will not be a priority in the first fwo years. S. The same or similar proposal cannof be submitted to more than one of the following programs in any one funding cycle: the Ci6 program, the Neighborhood STAR program, and the Cuftural STAR program. C. Ail loan or grant proposais shali be for $10,OQ0 or more. D. Sales tax funds shal! be matched as foliows. These are considered minimum matches, with preferences to larger than required matches: 1. Loans shall be matched 1 private $ to 1 STAR $. 2. Grants for capital projects of $10,000 -$100,000 shal{ be matched 1:1. 3. Grants for capital projects of $100,001 -$250,000 shall be matched 2:1. 4. Grants for capital projects of $250,001 and up shall be matched 3:1 . 5. Grants for support of cultural organization operations need no "match, but are limited ta 25°lo of the average annual budget for the last three years up to a maximum of $50,000. E. Projects considered to be of insu�cient quality or impact will "not be recommended for funding, even if funds are availabie. F, it is unlikely that the Board will approve multiple grants from one principle applicant in any given grant cycle. ' PART {{ - Eligibility * Eligilile Applicants * Eligibie Areas * Eligible,Activities * ineligible Activities * Eligible Expenses 1. Eligible applicants A. Any public, private, or non-profit entify that is located within or does business within the City of St. Paul - EXGEPT FOR THE FOLLOWING: 1. Ghurches and religious r>r�'tc3ns. 2. Pofitical parties and relate� �i#ical action groups. 3. Federa(, st�te,��ttty ager�cies and departments. 4, individua( homeowners. 3 B. City departments or divisions are eligible when in partnership with or supported by an eligible organization. (1. Eligible areas A. Ali areas within the legai iimits of the City of Saint Paul. B. For the first five years of the program (calendar years 1995, 1996, 1997, 9998, and 1999), at least 75% of the annual cuitural proceeds of the saies tax shall be invested in projects witfiin the boundaries of the targeted geographica( area known as the Cuiturai District in order to maximize and support the City's investment in the renovated and expanded RiverCentre. After five years the investment priorities shall be reviewed and revised if appropriate. The Saint Paul Cuiturai bistrict is defined as follows: " The geographic area bordered by Interstate 94 on the north, Cedar Street on the east, Keltogg Boulevard on the south, and John ireland Boulevard on the west." Ui. Eligib(e activities Capitai improvements or fixed assets must have an expected life of five (5) or more years. A. &mall sca(e public improvemenfs such as: trees and shrubs, benches, play equipment, beautifcation of public space, decorative lighting, etc., particularly as they relate to the Cuitural District or a City plan. , 1. Trees, shrubs, and lighting should promote safety as well as aesthetics. 2. The program is not intended or normally sufficient to do major public improvements such as street paving, curb and gutter, sewer and water. Major public improvemenfs should be channeled through fhe City's CiB process. 3. When additiona( operation or maintenance eosts result from the . public improvements, tF�e STAR proposal must identify how this project area will privately pay for their costs. Requests for capital improvements that are defined by City policy as "above standard" vrill not be considered or reviewed unless accompanied by a lega4Ey-binding and enforceabte pian for maintenance and/or es�eration over fihs useful life of the improverwents propaset� to be funded through the STAR program. The most acceptabie method for maintenance and operation of above-standard {�ublic improvemenfs is assessments on the propet�y taxes of those r�eiving the benefit from the irriprovements. However, propnsals tf�at commit private or non- prc�t organizaftcuzs tc3e}�erat� and maintain above-standard pubiic improvemerrts avi11 besc>nsidered, depending upon (at the City's judgment) the viability a� #he organization and the enforceability of �! ;: ,. �� - �(o� the legai agreement, S. Improvements to cultural or commercial properly such as rehabilitation, construction or other capital improvements. Examples include: 2. 3. � Most fixed imgrovements including the construction or rehabilitation of walls, ceilings, floors, iighting, windows, doors, entrances, electricai, plumbing, mechanicai, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. Eligibie improvements such as movab(e seating, computers, phone systems and technology directly related to cuitural presentations or visitor services. Permit and ficense requirements must be fulfiiled prior to commencement of a project. in addition, the project must be in compliance with all legal requirements of the City. Health and safety items required by City building codes. a. Expansion of a commerciat structure wili be afiowed if it meets afi City requirements such as zoning, parking, permft and license requirements, etc. b. Health"and safety items required by City buiiding codes. C. Assistance to 501(c)(3) cuitural organizations' operations such as fundraising and promotions. Examples include: 1. Speciaf fundraising efforts that result in a substantiated projection of increased patronage or increased financial support. 2. Promotion andlor implementation of exhibitions, perFormances and cultural events that take place within the Culturai District. particularly those that have potential for bringing new visitors to the � Cuiturai District. 3. Computers andlor tefephones as long as they are integral to a broader purpose and not the primary focus of the proposal. D. Economic development efforts including but not limited to: 2. 3. � Acquisition cosfs, includi�g project. Demoiition costs. purchase options as part of a capitaf Commerciai parking development, including acquisifion (by leasa or purchase}, demolition and construction as part of a larger capital {�roject proposai. !f fhe parking is to be private(y-owned, the STAR investment must be in the fiorm of a loan, secured by a lien on the property. if the parking is to be publicly-owned, the STAR invesfinent may be in the form of a grant, matched by capita{ and operating assessments over the usefui life of the improvement. Utiiity relocation and construction as they relate to a project. 5 5. Clearance. Acquisition of land or a buiiding for clearance will only be undertaken when it is an initial step in a proposa! that will result in a larger capital project. 6. Construction costs, inciuding ioan interest and fees. 7. Soil remediation as part of a capital project. IV. Ineligible activities A. Planning or study activities. B. Use of STAR funds to develop a STAR proposai or to organize an entity to manage a STAR proposal. C. Public service programs such as crime preventian, block nursing programs, child care and similar efforts that do not result in direct physical improvements. These activities may be inciuded in your total project description/strategy, but they are not eligible for sales tax funding. They wili be directed to other City programs, if possible, or private funding for these activifies can be part of the project match. D. Refinancing existing debts, except when it results in business expansion, job creafion, or is part of a larger project: E. General administrative expenses including project management, p(anning, development and administrative costs accrued before ftnal approvai of the app(ication are not eligibfe for sales tax funding. Exampfes include rent and utilities. ' F. Activities located outside the city limits. G. Major public improvement projects, i.e., stree# repaving, sewer work, recreation centers, etc. H. 5weat equity - payment for the applicant's own (abor and performance for construction or improveme�ts. Duplication of a current Gity program. Rpplicants are encouraged to coordinate orlrnk proposed projects with existing programs_ v. Etigible expenses include: A. Any lega! direct projecf cost that specificaily pertains to the execution of the capital project. Definition: Expficit costs that are expended to carry the capital project to completion. Examples are dependent on the type of projectf�rogram being impiemented: 1. Bu±lding permits. 2. Desig� soii, environmental, lega(, financir�g, licensing C� �g=�a� and inspection fees. 3. General contractor's charges (must be in line wifh industry standards). 4. Developers' fee or project coordination fee that is appropriate to the project and in line with industry standards. 5. �irect costs of staff management that are ciearly associated with the completion of a capital project. Note: Persons receiving the benefit pf the projectiprogram are not eligibie for developers' fee (i.e., a business owner rehabilitating hislher business site). B. Personnel salaries, contract employee fees and promotional costs anticipated by a cuitural organizafion that: 1. Enable a cultural organization to "broaden ifs base" of earned or contributed financiai support; 2. Promote andlor impfement exhibitions, performances and culturai events that take piace within the Cultural District, particularly those that have potential for bringing new visitors to the Cultura{ District; 3. Are part of a mutti-year strategy to substantialiy increase the base of patronage and/or financiai support; and 4. Can provide audited financial statements or Form 990 for the previous 3 years showing an abifity to operate in a solvent and prudent manner as a cultural organization. PART iil - Appiication Procedure * Timeline * Procedural Guidetines � Pre Apptication Contents * Fina) Application Contents I. Timeline The annual timeline wiif be announced at the beginning ot each funding cycte. Il. Proceduraf Guidetines A. A compiete application must be submiited, on time, �or a proposal to be considered during a funding cycle. B. Staff wiii make availabie for interested parties ail copies of the appiications for comment and review. 7 C. Sfaff wili organize a workshop at the beginning of each cycle to provide program application information to prospective applicanfs. Attendance at the orientation workshop is sfrongly recommended. Sfaff may be calied upon to assist applicants in developing applications, based on availabiiify of staff. D. Appiications may not be changed or modified once submitted. It is the applicanYs responsibility to thoroughly develap the proposal before submission. Fiowever, appiicants may be asked to provide additiona! information in the course of review. Iil. Appiication Contents Application forms will be made available at fhe workshop and thereafter. The forms will be accompanied by requests for additiona( project-specific information that must be addressed in the application. Staff, if available, will be identified to provide technicai assistance for etigible appticants upon request. AI► appiications must be submitted on the Sales Tax appiication form and contain al least the fo{lowing information: A. Purpose of the proposal including: 9. Cultural District need the proposal addresses. 2. Detailed description of the proposal's activities or elements. 3. Cutturai District impact and projected results. B. Levei of support and participation. 1. Up fo three (3} additional letters of support if the letters ciarify, add to or strengfhen the proposal. 2. Description of community participation C. Applicant's management experience and capability. P(ease provide a board membership list, if appiicable. D. 501 (c){3) verification, (required far ail operations funding requests}. E. Requested amount and type(s) of funding (grant and/or loan}. F. Budget 1. Projected level and source of private commitment. 2. Sources and uses statement far ali project #�s�ds. Additional elements such as a project praforma, sources of private lender financing, three years of past financial data and other information may 6e required as it pertains to the proposal. G. Time IinQ for projecf thaf is speeific and {ists milesfones. "- .4C d: — ��- l05 H. Map indicafing projecf focation and sfreef boundaries. If above-sfandard public improvements are proposed for funding, describe the legaliy-binding and enforceabie plan for operating and maintaining fhem over fhe useful life of the improvements. J. Project's expected outcomes and a description of how they will measured. K. Application fee: A non-refundable application fee of $100 must accompany the application form. if a proposal is incomplete or does not appear to be sufficientiy developed to allow for reasonabie review, the Board may return the proposai to the appiicant for furthsr work with the suggestion that the proposai be resubmitted during the next funding cycie. PART tV - Project Selection * Saint Paul Cuitural District inc. Board * Selectian Process * Evaluation of Applications * Bonus Points ' The Saint Paui Cultural STAR Board Five members of the Saint Paul Cu{tura( STAR Board are appointed by the Mayor and approved by the City Councif. The remaining four members of tMe Board are elected by the membership of the Cultural District. The Board serves as the formai review body for recommending of grants or loans from fhe culturai portion of sales tax funds. The Board recommends funding of %2 cent sales tax proposals to the Mayor and City Council. It. Selection Process The selection process for proposals will be competitive, and the Board will determine the quality of the proposais. The number of applicants to be funded is dependent on the size and quality of the proposals and the availabiiity of funding. A. Eligibility review_ 1. Staff wili advise prospective rec'spients of eligibility and make a report to the Board. 2. There will be no formaf pre-application process. 3. City staff will identify any entity associated with a prospective proposer, inc{uding officers or principals of the entity, with an adverse lending relationship with the City of Saint Paui. Criteria provided in HRA Resolutian 95-10/11-2 wiil be used fo identify adverse tending relationships_ 9 B, Compieted applications will be reviewed and summarized by staff. Appiications will be: 1. Rejected by the Board. If insufficientiy developed, the applicant may be invited to resubmit the proposal during the next funding cycle. 2. Accepted and all information will be presented to the Board. An estimate of City staff project management cosfs will be added to the proposa(. Additional technicai and comp(iance review wiil be provided by the foilowing advisory bodies: a. The PED Credit Committee wil! review the applications for fiscal responsibility, risk evaluation and appropriafeness of interest rates, terms and conditions, and provide fhis information to the Board to assist them in making recommendations to the Mayor and City Council. b. The Planning Commission wiii review proposais for compliance with the City's Comprehensive Plan and Gapital Ailocatian Policy. Comments wip be forwarded to the Board, Mayor and Ciiy Council within the esfablished timetine. c. Information on proposals wiI( be fonrvarded to the C(B Committee for informationai purposes to aliow for . coordinated decision-making, comment and review. Comments will be forwarded to the Mayor and City Councii within the established timeline. C. Anyone wishing to review and make comments on appiications is encouraged to submit these comments in writing to the Board within the time frame of Board action. The appiications wili be available for review in centrai locations such as the Saint Paui Department of Planning and Economic Develapment and the Central Library. D. The Board will review the appfications based on program guidelines, CIB Committee and Planning Commission comments, and Credit Committee guidance, and make funding recommendations to the Mayor and City Council. E. The IV�ayor will present final recommendations to the City Council. F. The City Councii wil! make final selections of STAR project proposais and approve their budgets. 111. EValuation Of apptiCatioils: Proposals will be reviewed according to the following eligibility criteria. A. Proposai supp�s ��lished priorities #cx the use ofi �he Cultural Sales 10 �8- �a5 Tax proceeds. B. Proposal meefs the minimum matching requirements. (See matching section.) C. Proposal is an eligible program activity. {See Eligible and ineligible Activities sections.) D. Proposal is not in conflict with any City Comprehensive Plan element, smai! area plan, Capital Allocation Policy, or adopted City ordinances and policies. E. Proposal is financiaily feasible. F. Requested Cultural STAR funds together with other project resources are adequate to meet the identified need. G. Managing organization has the capability to successfully manage and implement the project. H. Project effectively addresses a previously identified or otherwise clearly documented District need or goal. Proposal was developed with su�cient community input and serves the Cuitural District. . � iV. Proposals may receive preference if they inctude the following: A. A positive impact on tax base. B. A positive impact on job creation. - C. Match exceeding the required amounts. D. Project is part of a well-defined, broad strategy to increase the vitality of the Cuituraf District. ' E. Suffcient pianning or feasibility analysis indicates a high probability of success. F. Project is supported by an appropriate mix of property owners andJor busirres� peep4e refevant to ttie project and included in the planning, deveiopment �rrd impfierrtentatiorr pfi tl�e prapasai. G. Proposals include direat coc3edinafron with other City, private, or non-prof+t programs and projects. H. Project can leverage additiotrai funds flr resources. i. Percentage of the match that is direct cash or capitai investment is high. J. Rll administraiive expenses are funded through other sources. 11 PART V- LOANS AND GRANTS * Amount of Funds Allowed Per Project * Leverage * Additional Information Regarding Program or Project Proposals * Loan/Grant Fees, Loan Rates, Terms, Collateral and Servicing * Program Development and impiementation Amount of funds allowed per proposai: A. Minimumlmaximum reques#s allowed 1. There are no maximum loanlgrant request amounts for capital projects. 2. The maximum for an operations grant is $50,000. 3. The minimum for the regular program is $10,000. 4. Proposals will be funded based on their merits and funds available. 11. Matching Requirements A. Sales tax funds shall be matched as follows. These are considered minimum matches, with preference accorded for larger-than-required matches: 1. Loans shali be matched 1 private $ to 1 STAR $. 2. Grants for capital projects of $10,000 -$100,000 shail be matched 1:1. 3. Grants for capital projects of $900,001 -$250,000 shafl be matched 2:1. 4. Grants for capital prpjects of $250,001 and up shail be matched 3:1. 5. Grants for support of culturai organization operations need no match but are limited to 25% of average annuai budget for the last three years up to the maximum. � B. County, private, state and federal funds can be used as a match. C. Other City money cannot be used fo match STAR funds. For purposes of this program CDBG money from City sources cannot be used as a match (except as noted under D). D. Other City funds that are provided as loans may be used as a match. This includes deferred loans, as ion� as the loan is eventual(y paid. E. Matching funds must be-dtrectly related to ti�e project or program in the appiicant's proposai. F, With the exception of operating grants for cultural organ+zations, appiicants are encouragsd �o fund their STAR administrative expenses vgith outside private resources, {i.e., foundation grants, cash donations, etc.} and to use these fGnds as p� of the match. 12 Y.. . t \�e'�� .. 9�- �o� G. Etigibie matching contributions may include: 1. Direct financiaf resources, such as privafe expenditures for commercia{ or residential physicai improvements, contributions or funds raised fram within the District, foundation and corporate grants, and locai lender commitments or operating assessments estimated over the useful life ofi the improvements_ 2. Indirect contributions can include: in-kind services from residents and businesses such as personnei, professional services, office space, supplies, volunteer labor and sweat equity for physical improvements. The value of sweat equity andlor volun#eer labor may not exceed 30% of the total match. H. Ineligib(e matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR appficants such as already existing o�ce space, phone service, etc. In-kind donations from parties other fhan the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. 4. Any donation not directly related to the STAR project. Under no circumstances wiii 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 wiii be considered by the STAR Board in highiy unusuai cases, such as when a proposai is in response to an urgent need or disaster. ill. Additional Information Regarding Project Proposals A. All legal requirements of the City of Saint Paui must be met, such as: . 1. The property must be appropriately zoned, meaning the property must conform to use under the City Zon+ng Ordinance. 2. For new construction, properties must be on legal buildab{e lots. 3. Priorto pertorming leasehold improvements, the tenant must obtain written permission from the buifding owner for the improvements. 4. Prior to praject implementation, ali necessary permits must be ob#ained. Upon completion of improvements, the applicant must have followed, and the property must meet, aii appiicabie code, �ermit and lieense requirements. FinaNy, the property must be properly inspected and must have a Certificats of Occupancy upon completion, ifi appiicable. 5. An applicani must have the ability to repay if requesting a loan and be an acceptab�e credit risk �s determined by a bank ar fhe City. Y3 (See undenrdriting standards}. 6. Funds wil( be released on a reimbursement basis upon receipt of documentation of eligible expense. 7. Littie Davis Bacon regulations must be foliowed as applicable. B. Projecfs and proposals must not conflict with adopted plans and policies of the City of Saint Paul. C. Proposals that are operating grants for cu(tural organizations must provide audited financial statements or Form 990 for the previous three years. iV. loan/Grant Fees, Loan Rates, Terms, Co(lateral, and Servicing A. Rates wili be determined by the applicant, the Board and the Credit Committee's ana(ysis of application. The PED Gredit Committee will analyze capital loan requests and rate them based on indastry and City standards. B. Terms and conditions will be negotiated and customized for each individuai proposal. C. Co(laferal may be required. The Cify shali file for any Iiens required on collateral. D. Operating Assessments. If STAR capitai funding is to be matched by the operating assessment, no funding can 6e disbursed until finai ratification of the matching operating assessmenf. E. Loan Origination and Servicing 1. Individual payments for loans wi(1 be processed through PED Accounting. 2. Servicing Fees a. Loans and grants originated through the City wili be charged a closing fee equal to 1 1/2% of the STAR amount, before any disbursements. (An approved origination fee may be charged by program operators for each Ioan originated.} b. A fee of $5 to $10 will be collecte� with each foan payment. c. A charge of 5% of the monthly payment will be assessed on late payments aver 15 days definquent. d. If another party {approved by PED Credit Committeej assumes the mortgage, a 9 1/2% assurr�ption fee on the outstanding principal balance will be charged. 3. A sub-accounting system will be used fo monitor the totaf amount and ta provide periodic reports to: a. the grouplindividual that has the loan. b. project managers. i[! 'x '' t 4 • 9� - ��05 c. the City's Sudget Office. d. the Mayor. e. the City Council. f. citizens of Saint Paul. F. Loan Loss Ratio. In order to address foan needs that cannot be met through standard financial institution lending programs, the STAR Loan Program will have a loan loss ratio which may at times reach 20%. The risk rating system will be used to help assure that fhe program operates within this range. V. Project Development and Implementation A. Upon selection by the City Gouncit, the Cultural STAR pro}ect applicant wili receive a letter of commitment that specifies a period of time during which the appiicant must refine the project or program, secure the private match, meet other 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 canceliation of the commitment. Projects should be completed or self-sustaining within the period ofi time approved by the STAR Board and specified in the agreement. B. Implementation Contract Prior to the impiementation of an appiicant's project, a contract will be entered into between the City of St. Paul and the selected applicant. The contract wilf contain, at minimum, a scope of services to be performed by ali parties, a ptivate match section and a budget section outlining all fund+ng sources, and an implementation timeline. The contract will be signed in accordance with City policy. Implementation contracts require: 1. That the project applicant has appropriate liabifity insurance that insures the City of St. Paul. 2. Adherence, where applicable, to #ederal, state and local reguiations and poiicies pertaining to the use of funds, such as prevailing wage standards, selocation requirements, affrmative action, targeted vender programs and the First Source �gram. T#�e na#�re of the project (i.e. residentiai vs. commercial} determines which regulations apply. Staff will hold a compliance me�#ing �arior to implementation of the contract to identify appfacab4e rsgulations. Sales i'a�t �plicants are cautioned r�et�o make any commitments until they fullv understand�sotential com lin 'ance and funding reguia#is3r�. 15 3. Implementation must progress as projected in the application. Lack of progress is grounds for withdrawing funding. C. Sales Tax Fund Distribution . Sales Tax Fund distribution wil! generally be based on submission of invoices. Final payment wi(! be made upon completion of the project and receipt of the finai project report and evaluation. At the time of completion of all activities contained in the agreement or upon expiration of the agreement, any remaining project fund balances will be retumed to the STAR Fund. D. Projects are expecfed to be compteted within the time frame described in the final appiication. Requests for contract extensions are discouraged. Proposals are selected based on certain criteria and should nat be significantly changed during project impiemenfafion. 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 program's goals. PART VI - Review and Evatuation * Project Evatuation * Annual Report to City Councit and Mayor * Annuai Review of Priorities * Review of Allocation Goals * Audits - Quality Control i. Project Evaluation A. Semi-annual status reports will be required for each project to provide ongoing monitoring. The report will incfude project expenditures, status of match commitments and progress toward meeting expected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers will monitor and repork can individuai projects regarding progress and contract comp�ian�e B. A final evaluation a€ each project will be required to determine the extent to wMich fhe_�ro,�eCtl3as been successful. Project success wi11 be measured against e�ec#ed project oufcomes and the ov�ra41 objectives of ffie STAR Program. This final evaluation must be received before the final reimbursement reques# v,riH b� p�id. � q� - �05 It. Annual Report to City Council and Mayor The annual report should be presented in September of each year and should inciude: A. Progress reporFs on ali projects to-date, their focations, and cosfs. B. Percentage loans and grants awarded. C. Fiscal analysis of overall program. D. Effectiveness in supporting criteria. E. Estimated funds available for the next funding cycle. F. Eva{uation of the program process and suggested revisions. 111. Annual Review of Priorities (or criteria} Priorities for the cultural portion of the sales tax must be reviewed annually. These priorities shall be reviewed at a public meeting following the presentation of the annuai report. The City Council and Mayor shail clearly and pubiicly state priorities for the upcoming funding cycle. Target allocation goals shali be reviewed, as necessary, by the Mayor and City Councii. IV. Audits - Quality Contro� A. The City wiii estabiish a monitoring and control system to ensure that loan repayments are made under the terms of each projecYs agreements. 1. it wi(i be the responsibility of project developers to provide afl necessary documentation, as determined by the City, to determine program eligibility and ongoing programs' compliance. 2, Reports on revolving loan programs will be periodically provided to the project developers to assist in the mos�itoring of their programs' finances. B. Periodic externai audits may be required. 17 �d�'`fc�s SAINT PAUL CULTURAL INVESTMENT * The Cuitural STA GUIDE May 3, 1995 March, 1998 These guidelines have Board which is respo �. (Yz cent sales tax) py6K and City Gouncil. � Department Paul, Minne 55102. rogram * � developed for use by the Safnt Pau! Gufturai District, Inc. for review of Saint Paul Cultural Capital Investment Program s. The Board makes funding recommendations to the Mayor and Economic Development, 25 West Fourth Street, Saint Additionai Slopies of the guidetines can be obtained from this location or by calling 266-STAR (7&27). c�� y ous Program Overview The Cultural STAR Program will award grants and loans for capita4 pro' cts that are in the Cu)tura! District, prajects that support tHevCul#ural D�s �ct; and, projects tha# suppo�# opera#ions of cut#ura1;"organizat�o�s. � . Thraugh the f t 5 cycles (1995-1999), at least 75% of the annual culturai proceeds of e sales tax shall be invested ' within the boundaries o the targeted geographical area known as the Cuiturai District. �rojects i cated outside the target district r�;:u�:� demonst te a link to or support of activities within the targeted District. Key features include: * Program funding: 10 sales tax. of the proceeds of the Gity's half cent * Funds are awarded nually through a competitive application process. � Funds must be atched as required (see specific requirements for loans and gr ts) with appropriate resources. * Funds m t be spent on physicai improvements that have an expecte life of at least 5 years. * Eligi e applicants include any public, private, or non-pro�t entity loc ted in or doing business in Saint Paul. �` rogram allocation goals: a minimum of 25% loans, a maximum of 75% grants �' Program priorities: (see page 1 for more detail) * Projects and programs which help stabilize culturai organizations a� -y� within the cultural district. The emphasis shoufd be on "front of stage serrices" which impact the visitors. '� Projects which meet identified cultural customer and visitor * Projects which are supported by pianning efforts. '` Funding recommendations will be made to the Mayor nd Gity Council by the nine member Saint Paul Cultural Di rict, inc. Board, of which five of the nine members are appointed y the Mayor and approved by the City Council. Page ii TABLE OF CONTENTS PART I - Program Description 1. Purpose and Objectives 11. Priorities 11. Program Funding 111. General Policies I. E(igibte Applicants fl. Eligible Areas ili. E(igible Activities IV. ineligibie Activities V. Eligible Expenses PART Iii - Application � IV Timeline Procedural Guidelines PART Il - Eligibility Final Application Contents PART IV - ��' Saint Paul Cuituraf Selection Process Evaluation of Apoli Board Selection PART V- Loans, an Grants I. Amount of fun s aliowed per project Ii. Matching Re uirements II1. Additional formation Regarding Program or Project Proposals IV. Loan Ra s, Fees, Terms and Coilateral V. Progra Development and Impiementation PART VI - Review and Evaluation I. oject Evaluation II. Annual Report to the City Council and Mayor ill. Annual Review of Priorities N Audits - QuaGty Control information on the program, ca11266-STAR (7827) °l8 -�tos 'Page 1 Page 1 Page 2 Page 3 Page 3 Page 4 Page 4 Page 6 Page 6 Page 7 Page 7 Page 8 Page 9 Page 9 Page 11 Page 12 Page 12 Page 13 Page 14 Page 15 Page 17 Page 17 Page 17 Page 17 Page iii 9 $ -�tos PART i - Program Description * Purpose and Objectives * Priorities * Program Funding '` Generai Policies Program Purpose and Objectives in 1993 the City of Saint Paui imposed an additionai one-haff c t sales tax to be used for the renovation and expansion of the Civic Center, r� vestment in our neighbarhoods, and investment in our cultural industry. �;he intent of the City Cou il is that the proceeds be used in such a way that they have significant and po tive long term economic impact �� part�c�iacg� ten percent of the net sales t proceeds have been aliocated ��rsjeets for furthe��cuitura ctivities. A. Provide cultural a economic benefit to Saint Paul B. Leverage the sa s tax doliars with private resources C. Create and/or tain jobs D. Enhance an support the cuitural district as a visitor attraction E. Develop r ationships between the cultural district and the neighborhoods F. Stimulat vitality of downtown G. Suppo and enhance Civic Center mvestment t�i': ��? � ..,, :�� '�� ..,-�,� w � �;; n. riorities fior the 199� �, Cycte � 3 Cultural STAR Program The City Council and Mayor shail c{ear{y and publicly state annual priorities fior the use of the culturai sales tax funds. �b�`=��1��€�� "'`"'"`" '`"° `" Page 1 °�8'- ��.�. -.��,- - - - - - - - -- - - - � � G Projects and programs t#�at fieip strengffien �rief�-pei�-: eap'ttal-sr�pper�; cultura{ organizations within the cultural Projecfs that meet identified culturai customer and visitor additional parking and restaurants, and signage for cul� Projects that are supported by planning efforts suc�i'as the List of the City Council's Proposals: "More likely to Fund in 19� 9�" 1. Projects and programs that heip sta ' ize the cultural district through capitai and �.;�� °:C� of cuitural organ� ations in the district 2. Projects which respond to identif d cultural visitor needs such as increased and conveniently located safe park' g, additional restaurants, and additional location signage for cultural institutio . 3. � ' � . � ,� �� . . ; _ _ �..��:�� , �:, � �� 4. Proposals that maximi the m""�" ievefage of City STAR. funds. f'reje��TR�n �-� .w ° ..�� a - • ° e - . s ..� � _ � i � ��` . �.:.,a:,.:�., ..,.:,: �:,.- �eds - such as organizations. � a m � 1�� i:i�6z<�na�ir%�re�:,AtiG�aeo-.�is:i� supporting multi-cultural dimensions of our community. likely to Fund in 19�8 9�" Gommerciai projects or amenities that do not serve people at street level. �� .��:.�,�� . y oS Page 2 q,�- y.as 3. Capitai projects lacking adequate and specific matching funds. 4_ Ongoing genera! operating support. 5_ Civic events thaf do not specificaliy relafe fo cu{turat organiiafions Cultural Disfrict such as parades and fesfiva)s. ifl. Program Funding A. Ten (10°l0} percent of the proceeds of the % cent sale ax, along with its corresponding interest earnings, are dedicated to in stment in cultural projects. B. Available STAR funds for Cycie 4 will include nds coilected through December 31, 1998. Cycle 4 wili be anno ced in Spring, 1998, with an estimate of available funds . The estimated funds will be noted in e annual City budget as Cultural STAR program funds. C. Ailocations 1. At least 25°lo per t of the (10°l0) cuiturai portion of sales tax proceeds shall b allocated to low interest loans which will return money to the Itural account. 2. A maximum 75°lo percent of the proceeds shall be a{located to direct pran . IV. Generaf Pol A. No more t an 25% of annual cultural sales tax proceeds can be for mufti- year fun ing . Muiti-year funding wiil not be a priority in the first two years. B. The ame or similar proposal can not be submitted to more than one of th ollowing programs in any o�e tunding cycle: the CiB program, the hborhood STAR program, and the Culturai STAR program C '� All loan or grant proposals shall be for $10,000 or more. Sales tax funds shall be matched as follows. These are considered minimum matches with preference accorded for larger than required matches: 1. Loans shali be matched 1 private $ to 1 STAR $ 2�;:Grants�+�;��of $10,000 -$100,000 shali be matched 1 3;;Grants�t��" a��'��s of $100,001 -$25Q000 sha11 be matched 2:1 4. Grants �ar�ap�fa�p.,��,��' ��gof $25Q001 and up shall be matched 3:1 Page 3 9 � - �.c�s 5. Granfs for suppost of culturat organizafion operations r�eed no r buf are iimited to 2b°lo of average annual budgef for tfie last fhree up to a maximum of $SQ,OOd. E. Projects considered to be of insufficient quality or impact will n be recommended for funding, even if fiunds are availabie. F. {t is unlikely that the Board will approve multiple grants fy6m one principle applicant in any given grant cycle. / PART 11 - Eligibility * Eligible Applicants � Eligibie Areas * Eligible Activities * Ineligible Activities * Eligible Expenses I. Eligibie applicants A. Any public, private, or non-pr fit entity, which is located within or do business within the City of t. Paul - EXCEPT FOR THE FOLLOWING: 1. Churches and r igious organizations. 2. Political parti and related political action groups. 3. Federal, st , and county agencies and departments. 4. Individual omeowners. 8. City depart nts or divisions are eligible when in partnership with or supported an eligible organization. I1. Eligibie a�as A. All a as within the legal limits of the City of Saint Paul. B. F r the first five years of the program (calendar years 1995, 1996, 1997, 99$, and 1999) at least 75°l0 of the annual cuitural proceeds of the sales tax shali be invested in sa�itat projects within the boundaries of the targeted geographical area known as the Culturai District in order to maximize and support the City's investment in the renovated and expanded Civic Center. After five years the investment priorities shall be reviewed and revised if appropriate. The Saint Paul Cultural District is defined as follows: " The geographic area bordered by interstate 94 on the north, Cedar Street on the east, Keliogg Boulevard on the south, and Page 4 9g-`1a5 111. John Ireland Boulevard to the west." Eligible activities ' � . Capital improvements assets must have an expected life of five {5) or more years. A. Small scale pubtic improvements such as: trees and piay equipment, beaut�cation of public space, decorati� particularly as they relate to the Cultural District or a 1. Trees, shrubs, and lighting should promote s fefi aesthetics. 2. The Program is not intended or norr 3. � 2 �hfubs, benches, : lighting, etc. plan. as well as to do major pubiic improvements such as street p mg, curb and gutter, sewer and water. Major public improveme s should be channeled through the city's CIB process. When additionai operation or m" tenance costs result from the public improvements, the STA proposal must identify how this project area wiii privately pa or their costs. Requests for capital improvements that are d med by City policy as "above standard" will not be c sidered or reviewed unless accompanied by a le Ily-binding and enforceable plan for maintenance andtor operation over the useful life of the improvements pr osed to be funded through the STAR program. The st acceptable method for maintenance and operation of ab e-standard public improvements is assessments on the prope taxes of those receiving the benefit from the the �epts, though proposais that commit private or non-profit �ns to operate and maintain above-standard public �ents will be considered, depending upon (at the City's it) the viability of the organization and the enforceability of agreement. s to cuttural or commerciai property such as construction or other capital improvements. Examples Most fixed improvements including the construction, or rehabilitation of wails, ceilings, floors, lighting, windows, doors, entrances, electricaf, plumbing, mechanical, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. Eligible improvements such as, movable seating, and camputers, phone systems and technology directly related to cuitura! presentations or visitor services. Page 5 9'g' - �I OS 3. Permit and license requirements must be fulfilled prior to commencemenf of a project. {n addition, the project musf compliance with all legal requirements of the City . Health and safety items required by City building codes. a. Expansion of a commercial structure will be allo ec meets all City requirements such as zoning, rkin� and license requirements, etc. C: �s: �: if it permit Heaith and safety items required by Ci}�/buiiding codes. � &. Economic development 1. Acquisition costs ir project. 2. Demolition cos 3. Commerciai rkin purchase), emoliti project 4. Costs c � . � inciuding but not limited to: ing purchase options as part of capital development. Acquisition (by lease or n, and construction as part of a larger capital eveloping commercial parking facilities are eligible ff the parking is to be privately-owned, the STAR �t must be in the form of a loan, secured by a lien on the If the parking is to be publicly-owned, the STAR �t may be in the form of a grant, matched by capital and operating assessments over the usefuf life of the improvement. Utility relocation and construction as it relates to a pro}ect. Ciearance: acquisition of land or a building for clearance will oniy be undertaken when it is an initial step in a proposal which wili resuit in a larger capitai project as part of this proposal. Construction costs including loan interest and fees. Soil remediation as part ot a capital project. IV, /ineligible activities Any activity not leading directly to the completion of a capital project. A. Pianning or study activities. Page 6 98' - N°s v. : Use of STAR funds to develop a STAR proposal or to organize an entity to manage an STAR proposal. / C. Public service programs such as crime prevention, bfock nursing programs, child care, a�d similar efforts that do not resuit in dire physica! improvements. These activities may be included in y ur tota! project description/strategy, but they are not eiigible for sai tax fiunding. They wiif be directed to other City programs, if possihle, o private funding for fhese activities can be part of the project match. D. Refinancing existing debts, except when it resuits ' business expansion, job creation, or is part of a larger project. E. General administrative expenses inciudin project management, planning, development and administrative costs a crued before final approvai of the appiication, are not eligible for sales t funding. Examples include rent and utilities. Activities located outside the G. Major public improvement p jects, i.e., street repaving, sewer work, recreation center, etc. H, Sweat equiry - payme for the applicanYs own labor and performance for construction or imar ements. Duplication of coordinate or arrent City program. Applicants are encouraged to proposed projecfs with existing programs. include: Eligible A. Any le 1 direct project cost that specificaily pertains to the execution of the ca ital project. Definition: Explicit costs that are expended ta carry the capi i project to compietion. Exampies are dependant on the type of pr ect/program being impiemented: • buiiding permits; design, engineering, soii, environmental, legal, financing, licensing and inspection fees; • generai 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 standards; • direct costs of staff management that are clearly associated with the completion of a capital project. Page 7 ag� - yos Note: Persons receiving the benef+t of the project/program are not e{igible for developers fee. Example: business owner rehabilitating hislher busine site. / B. Personnei saiaries, eocitaaaf employee �ees a��" costs antic�pate�t by a cul�rafAr."gan�za,�a�o� t�iaf' 1: Ena61e a,.c�7fuFa1:� 2: ��: PART til - Application Pro dure * Timeline * Pracedural Guideline * Pre Application Co ents * Final Appiication ontents 1. Timeline The annuaf timeline ill be announced at the beginning of each funding cycle. II. Procedurat uidelines . , , � B omplete final application must be submitted, on time, for a proposaf to e considered during a funding cycle. �^ � Staff will make available for interested parties, all copies of the pre- f applications and final applications for comment and review. B Staff will organize a workshop at the beginning of each cycle to provide program application information to prospective appiicants. Attendance at the orientation workshop is strongiy recommended. Staff may be cailed upon to assist applicants in developing Page S �tg- 4os applications, based on availability of staff. D. � Fi�af Applications may not be changed or modified once submitted. the applicant's responsibility to fhoroughly develop the proposa� submission. However, applicants may be asked to provide addi ' n +nformation in the course of review. . . in��ri-sr2i:�:ni�riui��i��.n��c=i�=.�ii%a��ii�l=ait� iiG.Gna:i:ii�:�a:a:�.i.:a�'��"G ' " l�fs��:i�n� t��w _ _ _ _ i _ _ __ ��;�Nf �aF Applicatio Contents f-i+�al Application f rms will be ��„tk,i� pfeeess—The rms will be accompanied by requests for additional project- specific infor ation that must be addressed in the €�aF-application. Staff, if available, ill be identified to provide technical assistance at eligible applicanYs request. All ap lications must be submitted on the Sales Tax application form and contain the Ilowing information, including but not limited to: Describe the purpose of the proposal including: 1. Cultural district need which the proposal addresses. 2. Detailed description of the proposal's activities or elements. 3. Cultural district impact and projected results. B. Level of support and participation. Page 9 qg�-yos C. � E. 2. Up to three (3) additional letters of support if the letters clarify, a to, or strengthen the proposal. 2. Description of community participation Applicant's management experience and capability. Piease p vide a board membership list, if appiicable. 501 {c){3) verification fbra(I op Requested amount and type(s) of funding (gra�t andtor loan) Er. Budget 3. Projected levei and source of private ommitment 2. Sources and uses statement for a1l roject funds 3. Additional elements such as: a pr ject proforma, sources of private lender financing, three years of ast financial data, and other information, may be required s it pertains to the proposal. G�r: Time line for project that is spec' c and lists milestones. H:i Map indicating project locati and street boundaries. !x If above-standard public ' provements are proposed for funding, describe the legally-binding and nforceable plan for operating and maintaining them over the useful fe of the improvements. ��; Project's k�u=� Application outcomes and a description of how they will measured. A non-refundable application fee ot $100 must application forms. if a proposai is inco lete or does not appear to be sufficiently devefoped to aliow fior reasonable review he Saint Paul Culturai District, inc. Board may return the proposal to the applicant f further work with the suggestion that the proposal be resubmitted during the ne� nding cycie. PART V - Project Selection * Saint Paul Cultural District Inc. Board * Selection Process * Evafuation of Applications * Bonus Points Page 10 q g -�{os The Saint Paui Culturai STAR ^'-�«'-�„�: Board Five members of the Saint Paul Cultural STAR ^' Board are appointed by the Mayor and approved by the Gity Councif. The remaining four members of the Board are elected by the membership of the cultural 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 %2 cen'� sales tax proposals to the Mayor and Gity Councii. , 11. S@I@Cti011 PfOCeSS - the selection process for proposais witl be coi and the Board wili determine the quality of the proposals. The number applicants to be funded is dependent on the size and quality of the pr � and the availability of funding. A. f're-a�ptiea#tert E#a `i�uti� review: 1. �#a#f wrkrradvssee�.�icos�e��i �� 3��- City staff principais ot the entity, City of Saint Pau{. a. criteria provided to identify adver b. City staff wili pre highlighting th : c. the summa wi � C:� an B1 identify any entity ing o�cers or � relationship with the Resolution 95-10111-2 will be used eefending relationships. Care a summary of ail pre-appiicants, � with an adverse lending relationship. be forwarded to City Councif, along with a ting authority to proceed on the processing of the p -applications. upon ity Council authoriaation, the STAR Board will accept elig� le pre-applications for review. Applications, will be reviewed and summarized by staff. will: Be rejected by the °-�-` "�•�' ^••"••�-' ^�°`-�-"--. Board or if insu�ciently developed, the applicant may be invited to resubmit the proposal during the ne� funding cycle. Be accepted and ail information wilf be presented to the ° Page 11 9d _4.os ,...��..__� �:_._:,.s �.... goard. An estimate of cifij staff project management costs will be added to the propasal. Additional technical and compliance review will be provided by the folic advisory bodies: , a. The PED Credit Committee will review the appli �ons for fiscal responsibility, risk evaluation and appro ateness of interest rates, terms and conditions, and pr �de this information to the Board to assist them i making recommendations to the Mayor and Ci Gouncil. b. The Planning Commission wiii rev w proposais for compliance with the City's Com ehensive Plan and Capitai Allocation Policy. Comments iil be forwarded to the �a"tr� ^-..' ^.."..�-' ^:-`-:_"-- g rd, Mayor and City Council within the established ti ine. c. Information on prop als will be forwarded to the CIB committee for infor ational purposes to aliow for coordinated deci on making and for coordination, comment, and review, C ments will be forwarded to the Mayor and City Council ithin the established timeline. C. Anyone wishing to re �ew and make comments on applications, is encouraged to sub � these comments in writing to the °-:-"'-..' ^..".._�° ^`-� ,�� Boar ithin the time frame of board action. The applications wiii be availabl or review in central locations such as: the Saint Pauf Planning and conomic Development Department, the Gentrai Library. D. The ��`�� Board wii! review the applications based n program guidelines, CIB Committee and Planning Commission com ents, and credit cammittee guidance, and make funding re mmendations to the Mayor and City Council. E. �The Mayor will present final recommendations to the City Council. F./ The City Council will make final selections of STAR project proposais and / approve their budgets. 111. EV11uatIO11 Of appllCatlOfls: Proposa{s wil{ be reviewed for the following etigibility and additional se(ection criteria. A. Proposal supports published priorities for the use of the Culturaf Sales Tax proceeds Page 12 q�- �}os C Proposal is an eligibie program activity. (See Eligible and lneligible Activities sections.) / D. Proposal is not in conflict with any city comprehensive pian ment, small area pian, capitai ailocation policy or adopted City ordina s and policies. E. F G. H. IV. Proposals may receive following: A. a positive impact on ta� : Proposal meets the minimum matching requirements. (See matching section.) B. a positive impact on ' b creation G. match which exce s the required amounts D. Project is part of weli-defined, broad strategy to increase the vitality of the Culturai Qi rict E. Sufficient pla ning or feasibility analysis indicates a high probabitity of community input and serves the nce if they include the F. G. H, I. J. �7 Proposal is financiaily feasibie. Requested Gultur STAR fiunds together with other project resources are adequate to me the identified need. Managing organization has the capability to uccessfully manage and implement the project. Project effectively addresses a previo ly identified or otherwise clearly documented District need or goa{. Proposal was developed with cultural district. success; a Cu�tural " tri�t support is documented - an appropriate mix of property owners ndlor business peopie relevant to the project inciuded in the piann' g, development and impiementation of the proposal. Pro sals include direct coordination with other city, private, or non-profit pr rams and projects oject can leverage additiona{ funds or resources. ercentage of the match that is direct cash or capital investment, is high All administrative expenses are funded through other sources ;T V - LOANS AND GRANTS * Amount of funds allowed per project * Leverage Page 13 98- �os i, 11. Additional Information Regarding Program ar Project Proposals Loan Rates, Fees, Terms and Collateral * Program Development and implementation Amount of funds aliowed per proposal: A. Minimum/maximum Requests Allowed 1. There are no maximum loan/grant projects: . 2. The maximum for an operat��ii; 3. The minimum for the regular pn 4. Proposais witl be funded based Matching Requirements A. Sales:#a� fern�s°.s�ia11 tt�.� for ca�i€a3 is $10,�00. �ir merits and funds availabie. B. County,,�rivate, State and Federal funds can be used as a match. C. Oth City money can not be used to match STAR funds. Far purposes of thi program CDBG money from City sources cannot be used as a match, ( exception is listed under D). � F. 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. Matching funds must be directly related to the project or program in the applicanYs proposai. �pplicants are e�couraged 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. Page 14 �g-yos G. Eligible matching contributions may inciude: Direct financial resources such as private expenditures for commerciai or residential physical improvements, contributio funds raised from within the District, foundation and corpor grants, and local lender commitments or operating asses� estimated over the useful life of the improvements. � Ifl. �� J. K. Additional A. 2. Indirect contributions can include: in-kind : residents and businesses such as personnel, offce space, supplies, volunteer labor, and s� physical improvements. The value of swe e labor may not exceed 30°!0 of the totai m ch. Ineligibie matching contributions include: from �ssional services, equity for + and/or volunteer 1. Volunteer meeting time. 2. In-kind service donations from S R applicants such as already existing o�ce space, phone se ice, etc. In-kind donations from parties other than the applica are eligible. 3. Volunteer labor and sweat uity over 30% of required match. 4. Any donation not directly lated to the S7AR project. Under no circumstances The STAR board has matching contribution Exceptions to the board in highly� an urgent nee oi Ail le i requirements of the City of Saint Pau! must be met such as: 1, The property must be appropriately zoned, meaning the property must conForm to use under the City Zoning Ordinance. 2 For new construction, properties must be on legal buildable lots . Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the improvements. 4. Prior to project implementation, ali necessary permits must be obtained. Upon completion of improvements, the applicant must have fol(owed, and the property must meet, all applicable code, permit and license requirements. Finally, the property must be properly inspected and must have a current Certificate of Occupancy upon completion, if appiicabie. match be reimbursed with STAR funds. to recommend approvai of other a case by case basis. �atch requirement wiil be considered by the STAR asuaf cases such as when a proposal is in response to disaster. Regarding Project Proposals Page IS q�-�os � G: 5. An applicant must have the ability to repay if requesting a{oan and be an acceptable credit risk as determined by a bank or the city. (See underwriting standards). 6. Funds wiil be released on a reimbursement basis upon receipt f documentatio� of eligible expense. 7. Littie Davis Bacon regulations must be followed as appfic le. Projects and proposals must not conflict with adopted plans nd policies of the City of Saint Paul. IV. Loan/grant fees, Loan Rates, Terms, Col teral, and Servicing A. Rates: wili be determined by the appiicant, e Board and the Credit Committee's analys' of appiication. The PED Credit Committee will analyze capital lo n requests and rate them based on industry and city standards. B. Terms: terms and conditions - wil e negotiated and customized for each individual proposal. C. Coifaterat may be require . The City shafl file for any liens required on cotiaterai. D. Operating Asse the operating as: ratification of the E. Loan If STAR capitai funding is to be matched by no funding can be disbursed until final operating assessment. and Servicing lual payments for loans will be processed through PED nting. 'Servicing Fees a. Loans and grants originated through the City will be charged 2. a closing fee equal to 1 1J2% of the STAR amount, before any disbursements. (An approved origination fee may be charged by program operators for each foan originated.) b. a fee of $5 to $10 wiU be coliected with each loan payment c. a charge of 5°la of the monthly payment wili be assessed on late payments over 15 days delinquent. d. If another party (approved by PED Credit Committee) assumes the mortgage, a 1 1/2% assumption fee on the outstanding principal balance wiii be charged. A sub-accounting system wifi be used to monitor the total loan 3. Page 16 a�_��s amount and to provide periodic reports to: a. the groupJindividua{ which has the loan b, project managers c. the City's Budget Office d. the Mayor e. the City Council f. Citizens of Saint Paul V F. Loan Loss Ratio - in order to address loan needs which through standard financiaf institution lending programs, loss ratio which may at times reach 20%. The risk ratig an,rSot be met y#f�have a loan system will be range. A. Upon selection by the City Council, the C ural STAR project applicant wiil receive a letter of commitment which s cifies a period of time during which the applicant must refine its projec or program, secure its private match, meet other requirements as sp ified in the letter of commitment and enter into an agreement with th ity for the use of the Star funds. Failure to act within the period of ti e specified in the commitment letter may result in canceilation of the mmitment. used to help assure that the program operates Project Devefopment and � Projects should be complet or self-sustaining within the period of time approved by the STAR Bo rd and specified in the agreement. Impiementation Prior to the imple entered into betv contract wiil con alf parties, a p v, funding sou es, signed in ccord; � tation of an applicanYs project, a contract will be n the City of St. Paul a�d the selected applicant. The am, at minimum, a scope of services to be performed by �te match section and a budget section outiining ali and an impiementation timeline. The contract wiil be �nce with City policy. contracts require: that the project applicant has appropriate liability insurance which insures the City of St. Paui. adherence, where appiicabie, to Federal, State and Locai regufations, and po(icies 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 (i.e. residential vs commercial) determines which regulations apply. Staffwill hold a compliance meeting prior to implementation of the contract to identifij regulations applicable to project activity. Page 17 ��-yos Sales Tax applicants are cautioned not to make any commitments untif they fuity understand potential com lip ance and funding regulations. 3. implemenfation must progress as projected in application, lack o progress is grounds for withdrawing funding. C. Safes Tax Fund Distribution - Sales Tax Fund allocations will enera be based on submission of invoices. Final payment will be m de upon comp{etion of the project and receipt of the final project rep and evaluation, At the time of completion of all activities con med in the agreement or upon expiration of the agreement, any r aining project fund balances will be returned to the STAR Fund. D. Projects are expected to be compieted within th time frame described in the final application. Requests for extensions o contract effective dates are discouraged. Proposais are selected b ed on certain criteria and should not be significantly changed durin project implementation. E. Loans repayments will be made to th Cultural STAR Trust to be reused for loans, grants and other expens that further the development of the goais for use of Cultural Sales T proceeds. PART VI - Review and E�luation * Project Evaluation * Annual Report to th ity Council and Mayor * Annual Review of riorities * Review of Alloc ion Goals * Audits - QualibG Control I. Project Eva ation A. Semi- nnual status reports will be required for each project, which will pro � e an ongoing monitoring process. The report will include project e enditures, status of match commitments, and progress toward meeting pected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers witl monitor and report on individual projects for progress and compliance with contract. A final evaluation of each project will be required to determine the e�ent to which the project has been successful. Project success wifl be measured against expected project outcomes and the overal{ objectives of Page 18 q8-�os the STAR Program. This final evaluation must be received before the final reimbursement request will be paid. II. Annual Report to City Council and Mayor The annual report should be presented in September of each year and include: A. B. C. D F. Progress report on aN projects to date, their locations, and Percentage loans and grants awarded Fiscal analysis of overall program EfFectiveness in supporting criteria Estimated funds availabie for the next funding cycle Evaluation of the program process and suggested r visior 111. Annual Review of Priorities (or criteria) Priorities for the culturai portion of the sales tax These priorities shall be reviewed at a public m� of the annual report and the Council and MaycN' priorities for the upcoming funding cycie. f m t be reviewed annuaity. � ing following the presentation shali clearly and pubiicly state Target ailocation goals shall be reviewesd; as necessary, by the Mayor and City CounciL / IV. Audits - Quality Control A. The City will establish monitoring and control system which ensures that loan repayments are ade under the terms of each project's agreements. 1. it will be the esponsibility of project deve(opers to provide ail necessa documentation, as determined by the City, for purposes of deter ining program eligibility and ongoing program compliance. � � on revolving loan programs will be periodically provided to :ct develapers to assist in their monitoring of their programs external audits may be required. Page 19