Loading...
2022.12.06 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, DECEMBER 6, 2022 6:40 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from November 15, 2022 regular meeting 4. Consider a resolution adopting a 2023 EDA budget and HRA tax levy 5. Consider approval of a contract with Center for Energy and Environment for administration of home improvement programs from July 1, 2023 - June 30, 2024 6. Property status update * 7. Other business * 8. Adjournment * *Items for which no materials are included in the packet Page 1 of 3 Minutes of the Economic Development Authority of the City of Crystal Regular Meeting Council Chambers November 15, 2022 1. Call to Order President Banks called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 7:43 p.m. 2. Roll Call Upon call of the roll, the following Commissioners were present: Jim Adams, Brendan Banks, John Budziszewski, David Cummings, Therese Kiser and Nancy LaRoche. The following staff were present: Executive Director Kim Therres, Deputy Executive Director John Sutter and City Attorney Troy Gilchrist. 3. Approval of Minutes Moved by Commissioner LaRoche (Kiser) to approve the minutes from the October 18, 2022 regular meeting. Motion carried. 4. Consider a resolution approving a modification to the Redevelopment Plan for Redevelopment Project No. 1 and Tax Increment Financing (TIF) Plan for Establishment of Tax Increment Financing District No. 5 (Sand), a housing district located at 5240 West Broadway. Staff presented the report and requested EDA approval of the resolution. Keith Dahl of Ehlers answered questions from the board. Moved by Commissioner Budziszewski (Kiser) to adopt the resolution approving a modification to the Redevelopment Plan for Redevelopment Project No. 1 and Tax Increment Financing (TIF) Plan for Establishment of Tax Increment Financing District No. 5 (Sand), a housing district located at 5240 West Broadway. Motion carried 4-2 with Commissioners Banks, Budziszewski, Cummings and Kiser voting Aye and Commissioners Adams and LaRoche voting Nay. Page 2 of 3 5. Consider a resolution approving an interfund loan for Tax Increment Financing District No. 5 (Sand), a housing district located at 5240 West Broadway. Staff requested EDA approval of the resolution. Moved by Commissioner Budziszewski (Kiser) to adopt the resolution approving an interfund loan for Tax Increment Financing District No. 5 (Sand), a housing district located at 5240 West Broadway. Motion carried. 6. Property Status Update Staff updated the board on the anticipated opening of the Lucky Pearl restaurant at 5600 56th Avenue North (Bass Lake Road), construction progress at several commercial locations, potential new businesses and development prospects, and plans to promote Small Business Saturday and the Love Local campaign during the holiday season. 7. Other Business There was no other business. 8. Adjournment Moved by Commissioner Budziszewski (LaRoche) to adjourn the meeting. Motion carried. The meeting adjourned at 8:16 p.m. Page 3 of 3 These minutes of the November 15, 2022 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Brendan Banks, President ATTEST: ______________________________ Nancy LaRoche, Secretary Page 1 of 2 ___________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: December 1, 2022 TO: Kim Therres, Executive Director (for December 6 EDA meeting) SUBJECT: Consider a resolution adopting a 2023 HRA tax levy and EDA budget As part of the annual budgeting process, the EDA formally requests a Housing and Redevelopment Authority tax levy which would comprise most of its funding. The 2022 levy was $310,000. On Sep. 6, 2022 the EDA adopted a resolution approving a preliminary 2023 budget and $316,200 tax levy, which is a 2% increase from 2022. At this time, EDA action is necessary to adopt the final 2023 EDA budget and 2023 HRA tax levy for City Council consideration. The amounts are unchanged from the preliminary budget and levy approved in September. Budget Summary: 2020 2021 2022 2023 Actual Actual Adopted Proposed Revenue 383,728 311,720 318,000 1 357,034 1 of which, levy is 282,744 300,000 310,000 316,200 Expenditures 389,119 526,914 2 384,390 357,923 Cash Balance at End of Year 3 2,140,093 2,053,388 1,986,998 est. 1,949,029 est. 1 2022 adopted and 2023 proposed revenue does not include any land sale proceeds, as that varies from year to year depending on market conditions and the characteristics of each parcel. 2 2021 expenditures were elevated due to (1) an expenditure of $64,170 to finance a fire sprinkler system at 5600 56th and (2) $67,000 of unanticipated expenditures for home improvement grants. The fire sprinkler financing is being repaid over five years, and home improvement grant expenditures are being brought back in line with the budget due to program changes that began in 2022. 3 Cash balances are from the Long Term Plan and may not track exactly with revenue and expenditures. EDA STAFF REPORT Proposed 2023 HRA Tax Levy and EDA Budget Page 2 of 2 Anticipated 2023 EDA activities: • One or more redevelopment projects in the Town Center redevelopment area • Expand branding and beautification efforts • Sale of properties currently being held by the EDA (proceeds increase the fund balance) • Home improvement grants for qualifying households located outside the redevelopment project area (not eligible for TIF funds) REQUESTED EDA ACTION Adopt the attached resolution approving the 2023 EDA Budget and HRA tax levy, and requesting their approval by the City Council. ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2022 - 08 ADOPTING A 2023 BUDGET AND PROPERTY TAX LEVY AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) undertakes redevelopment and housing activities in the City of Crystal, Minnesota (the “City”); and WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the enabling resolution of the EDA, the EDA exercises all of the powers of a housing and redevelopment authority (“HRA”) as described in Minnesota Statues, Section 469.001 to 469.047 (the “Act”); and WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is, property in the City; and WHEREAS, the maximum permitted HRA levy is $501,232 which is calculated at 0.0185 percent of the estimated market value of the property in the City. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Crystal as follows: 1. The EDA hereby adopts a 2023 budget for housing and redevelopment in the amount of $357,923. 2. The EDA hereby adopts a 2023 property tax levy of $316,200 for the purpose of funding the adopted budget in conformance with Section 469.033, Subdivision 6 of Minnesota Statutes. 3. The Executive Director is authorized and directed to transmit a certified copy of this Resolution to the City Council of the City of Crystal for its consent and approval as provided by Section 469.033 of the Act and for certification to the Property Tax Manager of Hennepin County. Adopted this 6th day of December, 2022. _______________________________ Brendan Banks, President _______________________________ Kim Therres, Executive Director Page 1 of 3 __________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: December 1, 2022 TO: Kim Therres, Executive Director (for December 6 EDA meeting) SUBJECT: Consider approval of a contract with Center for Energy and the Environment for administration of home improvement programs from July 1, 2023 - June 30, 2024 The EDA contracts with Center for Energy and Environment (CEE) to administer our home improvement grant program. The current contract period ends on June 30, 2023. The next contract period is July 1, 2023 - June 30, 2024. The program budget would be $306,000 which is consistent with the EDA budgets for 2023-2024. The only other changes would be in the way administrative fees are calculated, due to CEE’s personnel costs and other expenses having increased (as they have for everyone). Currently the EDA pays CEE an annual lump sum of $2,500 plus 15% of the grant amount. The EDA also pays $100 for each post-installation inspection when the work does not require a permit and the city is therefore not already inspecting the work to verify that it has been completed before the grant is paid. The proposed contract would have an annual lump sum of $5,000 plus $500 per grant regardless of the grant amount. The post-installation inspection fee would increase to $150 but we will start doing those in-house so we no longer have to pay those fees. If the EDA is uncomfortable with the slightly increased administrative costs, one solution would be to increase the minimum project from $3,000 to $4,000. This would eliminate the smallest grants for which the administrative fee will be almost as much as the grant. Staff estimates that a $4,000 minimum project requirement would eliminate 8 grants per year and reduce the administrative fees by $4,000 per year. EDA STAFF REPORT Approve Home Improvement Program Contract for July 1, 2023 - June 30, 2024 Page 2 of 3 Comparison of Administrative Fees: Current Proposed Proposed (Annualized estimates based on Contract Contract Contract actuals from 4/1 - 9/30/2022) $3,000 min. $3,000 min. $4,000 min. project size project size project size Annual Lump Sum Admin Fee $ 2,500 $ 5,000 $ 5,000 Admin Fees based on Grants $ 45,168 $ 50,000 $ 46,000 Post-Installation Inspections $ 2,000 $ 0 $ 0 Total amount of Admin Fees $ 49,668 $ 56,000 $ 51,000 Admin Fees as % of Program Cost 15.8% 17.5% 16.2% Approximately 90% of the funding will come from the TIF fund and 10% from the EDA/HRA fund. Staff estimates show sufficient TIF district revenue and fund balance to continue the program through 2028, after which alternate funding sources or program changes will be necessary. Please see charts below and on the next page. EDA ACTION REQUESTED Staff requests EDA approval of the attached agreement with Center for Energy and Environment for administration of home improvement programs for the period July 1, 2023 through June 30, 2024. The motion should include whether to keep the minimum project size at $3,000 (est. 17.5% admin cost) or increase it to $4,000 (est. 16.2% admin cost). Page 3 of 3 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 1 HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT This HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT (“Agreement”), dated this _____ day of _____________________, 20____, is made by and between the ECONOMIC DEVELOPMENT AUTHORITY in and for the City of Crystal, with offices at 4141 Douglas Dr N, Crystal, MN 55422 (“Authority”), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”). RECITALS A. The Authority has a need for certain professional services and desires to retain CEE to provide said services, all subject to the terms and conditions contained in this Agreement. B. CEE is qualified to provide the desired professional services and desires to provide said services for the Authority, all subject to the terms and conditions contained in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this Agreement, the parties agree as follows: 1. Services/Scope of Work 1.1 CEE shall in conjunction with the Authority develop and deliver the City of Crystal Home Improvement Program (hereinafter the “Program”) and more fully described in Exhibit A1 attached hereto. All activities delivered under the Program shall be coordinated with the Authority’s designated Community Development Director, John Sutter. 1.2 CEE shall assist the Authority staff in marketing the Program. This will include being on the CEE website and creating an information sheet about the loan program. 1.3 The funding source is exclusively from the Authority. 2. Compensation 2.1 The Authority shall compensate CEE for services provided under this agreement according to the schedule in Exhibit B1 attached hereto. The Authority shall compensate CEE only for services completed. 2.2 Upon request, CEE will provide additional marketing services. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to marketing. CEE will be reimbursed by the Authority for any non-labor, out-of-pocket expenses, relating to these services on a dollar-for-dollar basis with no mark-up. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 2 2.3 CEE shall invoice the Authority not more than two times each month. The Authority shall pay CEE within 20 days of receipt of the invoice. 3. CLIENT’s Obligations 3.1 If requested by CEE, the Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain information and or permission for access from clients which may be necessary for CEE to provide the services under this Agreement. 3.3 The Authority shall provide sufficient funding to fund eligible Authority funded loans. The Authority shall determine the amount of funds allocated to the Program. 3.4 The Authority shall establish eligibility for the Program and shall provide these criteria in writing to CEE prior to commencement of any marketing efforts. 3.5 The Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 4. CEE’s Obligations 4.1 CEE shall use its best efforts to provide services under this Agreement in a professional manner consistent with the care and skill used by reputable members of CEE’s profession. 4.2 CEE, and all of its employees or agents, shall comply with all statutes, ordinances, rules, regulations and other laws applicable to the provision of services under this Agreement. 4.3 CEE shall secure all permits and licenses required for performance of the services under this Agreement. 4.4 CEE shall not engage in discriminatory employment practices against any employee or applicant for employment and shall in all respects comply with all federal, state and local laws, regulations and orders, including without limitation, Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure to comply with the provisions hereof shall be deemed a material default under this Agreement. 5. Term and Termination CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 3 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on 7/1/2023 and continue through 6/30/2024. 5.2 This Agreement may be terminated by either party, for any reason or no reason, immediately upon written notice to the other party. In the event this Agreement is terminated by CEE prior to the expiration of the term set forth in paragraph 5.1, the Authority shall compensate CEE for all services delivered up the date of termination and CEE shall provide the Authority with such information as the Authority may request regarding the status of the Program. 5.3 Any termination of this Agreement shall not release either party from their respective obligations under sections 7 and 8 of this Agreement. 6. Insurance 6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the amounts listed below: General Liability $2,000,000 Aggregate Limit Automobile Liability $1,000,000 Combined Single Limit Excess Liability $1,000,000 Aggregate Limit Workers Compensation Statutory Limit 7. Liability and Indemnification 7.1 CEE represents that the services to be provided under this Agreement are reasonable in scope and that CEE has the experience and ability to provide the services. 7.2 CEE warrants that any services provided hereunder shall be done in a professional and workmanlike manner. 7.3 CEE shall indemnify, defend and hold harmless Authority and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys’ fees and damages for death, personal injury and property damage) which Authority may incur as a result of any act or omission by CEE in providing services under this Agreement. 7.4 Authority shall indemnify, defend and hold harmless CEE and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys’ fees and damages for death, personal injury and property damage) which CEE may incur as a result of any act or omission by Authority in discharging its duties under this Agreement. 8. Confidentiality Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and not disclose to any third party any information obtained regarding the Authority CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 4 and/or any of Authority’s clients for which CEE is providing services; provided, however, that this obligation to maintain confidentiality shall not apply to: a) Information in the public domain at the time of disclosure; b) Information which becomes part of the public domain after disclosure through no fault of CEE; or c) Information which CEE can demonstrate was known by it prior to the date of this Agreement. Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client information covered by this paragraph to governmental authorities to the extent CEE reasonably believes it has a legal obligation to make such disclosures and to the extent CEE reasonably deems to be necessary; provided, however, that if CEE believes that any such disclosure is required by law, it shall provide advance notice to the Authority to provide the Authority with a reasonable opportunity to attempt to obtain an injunction or other protective order preventing such disclosure. 9. Relationship of Parties CEE will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents, shall be considered employees of the Authority for any purpose, and neither shall CEE be eligible for any compensation or benefits which the Authority may provide to its employees from time to time. CEE shall be solely responsible for all employment and other taxes applicable to providing services hereunder, and the Authority will not withhold any taxes or contributions from the compensation payable to CEE under this Agreement. 10. Notices All notices, requests, demands and other communications required to be given in writing under this Agreement shall be given to the other party in person or by mail as provided in this section. If delivered personally, notice shall be deemed to have been duly given on the date of delivery. If delivered by mail, such notice shall be sent via first class U.S. mail, postage prepaid, to the address set forth at the beginning of this Agreement or such other address as a party may otherwise request by written notice, and notice shall be deemed duly given three (3) business days after mailing. 11. Assignment This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided, however, that neither party shall assign or transfer in any manner, this Agreement or any portion hereof without the prior written consent of the other party, and any attempt to assign or transfer without prior written consent shall be void and of no effect. 12. Governing Law CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 5 This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 13. Miscellaneous 13.1 Headings and captions used in this Agreement are for convenience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the entire agreement of the parties and supersedes all prior agreements, discussions and representations, written or oral, concerning the subject matter hereof. 13.3 No waiver by the Authority of any term or condition of this Agreement or any document referred to herein shall, whether by conduct or otherwise, be construed as a waiver or release of any other term or condition of this Agreement. 13.4 This Agreement may only be amended in a written agreement signed by both parties. 13.5 Except as expressly set forth in section 7, the rights and benefits under this Agreement shall inure solely to the benefit of the Authority and CEE, and this Agreement shall not be construed to give any rights, benefits or causes of action to any third party. 13.6 The invalidity or partial invalidity of any provision of this Agreement shall not invalidate the remaining provisions, and the remainder shall be construed as of the invalidated portion shall have never been a part of this Agreement. 13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13 (Government Data Practices) that are applicable to the Authority and shall not disseminate any information concerning loan requests of the borrowers without the prior written approval of the Authority. 13.8 This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 6 ECONOMIC DEVELOPMENT AUTHORITY In and for the City of Crystal By: ________________________________________ Its: Executive Director Kim Therres Date: ________________________________________ CENTER FOR ENERGY & ENVIRONMENT By: Its: Date: Tax ID # 41-1647799 Exhibit A1 - _#4073_ Page 1 EXHIBIT A1 Crystal Program Guidelines This document includes guidelines for the Home Improvement Program of the Economic Development Authority of the City of Crystal Exhibit A1 - _#4073_ Page 2 Crystal Grant Program CRYSTAL PROGRAM GUIDELINES The Crystal Economic Development Authority (Authority) is making funds available for homeowners to assist with home additions, remodeling, maintenance and energy improvements. The Crystal Home Improvement Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. These programs are not intended to be the sole source of improvement funds available to the homeowners in the City. Center for Energy and Environment shall serve as the administrator for the Crystal Grant Program and will secure the most beneficial financing based on the borrower’s needs independent of the funding source. Eligible Project Expenses: • Interior remodeling • Building additions • Finishing basements, attics or similar spaces to convert them into habitable space • Energy efficiency improvements • Exterior building improvements such as roofing, siding, soffits/fascia, windows and doors • Site improvements such as retaining walls, sidewalks, driveways, fences, patios, decks, garages and the removal of diseased or hazardous trees • Systems such as HVAC, electrical and plumbing • Permanent Landscaping Ineligible Project Expenses: • Payment for work initiated prior to the grant being approved and closed, unless due to emergency. • Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.) • Furniture, non‐permanent appliances (unless part of a kitchen remodel), funds for working capital, debt service or refinancing existing debts. • Homeowner labor or other in‐kind contributions to the project. Minimum Project Size: Eligible Project Expenses must total at least $________ to qualify for a grant. Grant Amount: 20% of Eligible Project Expenses, except as noted below: • Exception: For projects replacing or lining a sanitary sewer service and/or disconnecting stormwater drainage (sump connections, foundation drains, etc.) from the sanitary sewer, the grant amount is 40% of those particular, itemized project costs. This is intended to augment the city's efforts to reduce inflow & infiltration into the sanitary sewer system. In many cases this work will be triggered by, and completed in conjunction with, the city's utility reconstruction projects (typically 1‐4 blocks per year). However, any income‐qualified, owner‐occupied residential property in the city is eligible. No property may receive grants totaling more than $8,000 in any calendar year. Exhibit A1 - _#4073_ Page 3 Eligible Properties: 1‐4 unit owner‐occupied properties located within the geographical boundaries of the City of Crystal. Properties held in a Trust, Townhomes and Condominiums are eligible, subject to Association Bylaws. Properties may be held in a Contract for Deed. If the property has more than 1 unit, the non‐owner‐occupied units must be in compliance with the City of Crystal’s rental licensing requirements. Ineligible Properties: Dwellings with more than 4 units, cooperatives, manufactured homes, time shares, properties used for commercial purposes and non‐owner occupied properties. Eligible Recipients: All recipients must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, and Non‐Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Recipients: Including but not limited to: ‐ Businesses, Foreign Nationals, Non‐Occupant Co‐ Borrowers, and Properties held in the name of a trust. Income Limit: The property owner’s household income, including all persons living with the property owner regardless of familial or relationship status, shall not exceed the following maximum household income thresholds using HUD Regional Median Income based on household size: • 90% of regional median income for 1-person households • 100% of regional median income for households of 2 or more persons Income will be determined by the adjusted gross income on the most recent Federal Tax Return. If a tax return is not required, income will be determined by the projected gross income for the upcoming 12 months. Credit Requirements: 1) All mortgage payments must be current, 2) All real estate taxes must be current, and 3) No defaulted government loans, tax liens or child support. Bids: Two estimates are required. Only 1 materials list is required for sweat equity projects. All contractors must be properly licensed Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis, but only the purchase of materials and rental of tools or equipment will be considered an Eligible Project Expense. Recipient Paid Fees: None Deadline for Work Completion: All work must be completed within 120 days of the grant closing. Extensions may be granted by CEE due to weather or similar factors. Exhibit A1 - _#4073_ Page 4 General Program Conditions Application Processing: Grants will be distributed on a first come first serve basis as recipients qualify. Applicants must provide a completed application package including the following in order to be considered for funding.  Completed and signed application form  Proof of income  Proof of Identity (drivers license, passport, etc.)  Bids or estimates for proposed projects  Other miscellaneous documents that may be required. Program Costs: Grant origination fees, grants and post‐installation inspection fees will be paid out of the Program Budget. Program marketing efforts will be billed directly to the City of Crystal and is a separate expense should the city choose to commission CEE for marketing support. Total Project Cost: It is the recipient’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original amount, the recipient must obtain the additional funds and provide verification of the additional funds in order to proceed. Disbursement Process: Grant: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector ; • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; • Evidence of city permit (if required) or confirmation of post‐installation inspection by city (if no permit is required). EXHIBIT B1 Crystal Program Budget July 1, 2023 ‐ June 30, 2024 Crystal Grant Budget Allocation (includes Grants plus Annual Administration Fee, Post‐ Installation Inspection Fees and Grant Origination Fees): $306,000 TOTAL PROGRAM BUDGET: $306,000 Budget Notes: 1. CEE shall submit monthly invoices for grants, origination fees and post‐ installation inspections for that period. 2. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (1) Annual Administration Fee $5,000 (due July 1st of each year the contract is active) (2) Origination Fee: Grant $500 per grant closed 3. Marketing Marketing efforts outside of CEE’s website and grant information are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all additional program marketing. CEE will also be reimbursed by City of Crystal for any non‐labor, out‐of‐pocket expenses relating to these services on a dollar‐for‐dollar basis. Exhibit B1 ‐ #4073