HomeMy WebLinkAbout20-125 - ADMIN Resolution - City Council - 2020/09/08Resolution No. 20-125
Resolution authorizing expenditure of Coronavirus Relief Funds by the city and
by the St. Louis Park Economic Development Authority
Whereas, the City of St. Louis Park (“city”) has received Coronavirus Relief Funds (“Funds”)
from the State of Minnesota, as authorized by Congress pursuant to the Coronavirus Aid, Relief,
and Economic Security Act (“CARES Act”); and
Whereas, the CARES Act authorizes the city to transfer all or a portion of the Funds to other
units of government; and
Whereas, the CARES Act authorizes Funds to be used for grants to small businesses to
reimburse the costs of business interruption caused by required closures, as well as to renters
and homeowners to prevent eviction or foreclosure due to financial hardsh ip; and
Whereas, the city previously provided assistance to STEP in the amount of $108,000
from the city’s housing rehabilitation fund for rental assistance to help prevent housing
instability, and provided assistance to Discover St. Louis Park in the am ount of $35,000 from the
city’s lodging tax fund to offset certain costs of business interruption; and
Whereas, the St. Louis Park Economic Development Authority (the “authority”)
previously established its Small Business Emergency Grant Assistance Program (the “Business
Program”), the purpose of which was to assist small businesses in the city that have been
directly impacted by the COVID-19 pandemic, and provided grants in the aggregate total
amount of $224,000 from its development fund for such purpose; and
Whereas, each of the expenditures described herein was necessary in connection with
the public health emergency caused by the COVID-19 pandemic, was incurred on or after March
1, 2020, and was not accounted for in the City’s regular budget in pla ce as of March 27, 2020,
and therefore is a permissible expenditure of Funds under the CARES Act; and
Whereas, the city council has determined that (a) allocating a portion of the Funds to
reimburse the city and authority for prior expenditures meeting the requirements of the CARES
Act as described above, and (b) transferring the administration of a portion of the Funds to the
authority for additional business assistance purposes, are in the best interests of the city and
that the Funds designated for such uses will comply with federal and state guidelines for the
use of the Funds under the CARES Act.
Now, therefore, it is resolved that the city authorizes the allocation of (a) $108,000 of
Funds to the city’s housing rehabilitation fund, to reimburse the city for its prior assistance to
STEP for the purpose of providing rental assistance to city residents to prevent housing
instability; and (b) $35,000 to the city’s lodging tax fund, to reimburse the city for its prior
assistance to Discover St. Louis Park in connection with business interruption caused by the
COVID-19 pandemic.
It is further resolved that the city manager and staff are authorized and directed to
transfer the administration of a portion of the Funds to the authority, in the following amo unts
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Resolution No. 20-125 2
and for the following purposes: (a) the amount of $224,000, for the purpose of reimbursing the
authority’s development fund for qualified grants previously provided to small businesses
through the Business Program, and (b) the amount of $200,000 to provide additional grants to
small businesses located in the city through a partnership with Hennepin County, all in
accordance with federal and state guidelines for expending the Funds.
Reviewed for administration: Adopted by the City Council Sept. 8, 2020
Thomas K. Harmening, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
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