City of Bloomington, Indiana Urban Enterprise Association, 9 Sep 2020

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From YouTube: Bloomington Urban Enterprise Association, September 9, 2020

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meeting agenda: https://bloomington.in.gov/onboard/meetingFiles/download?meetingFile_id=7545

A

B

Car and saint john here, uh jackie jenna ew, mary morgan.

B

Scott wright here alex crowley here.

B

uh Kate rosenberger.

C

It says she's here, but she's, muted.

B

I'm here sorry, okay and then um do I also announce staff.

B

I will jane cooper smith staff.

B

uh Kevin curran.

D

Yep, uh I'm here yep and larry allen. Good day to you all hello, marnina.

B

Patrick, I don't know if she has a mic, but she is here supporting us and I think that's.

B

Everybody great okay. Well, thank you. Welcome.

C

Everyone, I'm glad you all are here and able to attend.

C

The first item is the approval of minutes.

C

Did everyone I I was not at the last meeting I apologize for that. I was not.

C

Able to make it.

C

Does anyone did you have a chance to read them? Does anyone have any comments.

C

Do we have a motion for approval, move to approve.

C

Okay, that was jackie first uh motion and second, I think, was.

C

Maybe it was mary, it was mary. Okay, thank you.

C

Mary, so all those in favor of approval.

C

Of the minutes please say I I.

C

Same sign, no okay, so the minutes are approved and you will.

C

Move on to the uh director's report, I think that's what's next on I printed.

C

Out the old agenda, I don't know if that had changed.

C

No, it's the same. Okay, it's the same, um and there isn't uh oh brian's here now.

B

There isn't too much to go over. I just wanted to say I.

B

We have this kind of project of looking at the zone.

B

Map to see whether it can be um adjusted and our new spea fellow.

B

Couldn't be here today, but her name is brittany, scholl, she's, really great and.

B

She is tackling the research project, so I just wanted to kind of announce that that is underway and then um just website.

B

Application update, um that's really more of an.

B

Economic business, economic enhancement, scholarship, update.

B

I sent a push out on friday to zone businesses about our increased.

B

Allocation for the economic enhancement scholarship and have.

B

13 applications this morning, so it's exciting we're going to get to watch.

B

That money um start to move out the door.

B

um Great, that's fantastic, yeah! Well, and please extend our welcome to.

C

Brittany, yes, I will she'll be with us next next.

B

Meeting um and then kevin all if we're moving to.

B

Financial report I'll enlist kevin for his help and.

B

Yeah is this a good? I think I can shrink this if this is too much.

B

Kevin are you here.

B

I am yeah. Okay, do you mind walking us through the balance sheet.

D

I do not mind, but I can not read that on screen very well. I have a very small.

D

Screen so I'm going to have to flip to the pdf.

D

But that shouldn't be a big issue. uh Bear with me for a sec. Okay,.

D

Let's see so we'll start with uh the balance sheet.

D

Cash accounts, the I think, the one thing that stands out with first financial, you.

D

Have a negative balance in checking. um That's because it's it's.

D

Basically, first financial treats checking and savings as.

D

A combined available balance um and then money market is is down year.

D

Over year, because that's what we used to fund the uh um the loans, the revenue relief loans.

D

The other bank accounts haven't changed much the only real activity going.

D

Through them is, um is interest income.

D

So not not seeing a significant change there.

D

So total uh total checking is up 130 2 000, roughly.

D

Year over year, um accounts receivable, as we discussed last meeting, I'm still.

D

Working through that and have committed to to have an answer to you guys by the.

D

End of uh or by the october results meeting um so.

D

I'm continuing continuing to work on that.

D

um Within the notes, receivable, the the big- I guess.

D

The big changes um I think we had discussed before there.

D

Were two loans that were funded out of buea? That should have been out of on the.

D

Food and beverage fund uh um we had.

D

Transferred the money back into um the uaa.

D

And that that uh covered that's the rub and soapy soaps. um That's.

D

Receivable, so those are really the biggest changes there. um As you can see, the the non-rrf.

D

Loans continue to be paid down, the one that has not is.

D

uh Topologist investments and I think jane, that's something. You've got on your.

D

Radar screen yeah for better for better or worse.

B

um And just to be really clear: um what kevin's talking about.

B

um Last meeting we were comparing the this quickbooks report with.

B

The spreadsheet posted on the city's um business web page and no notice there.

B

Was a discrepancy so when we looked into that, we understood that um soapy soap and that's the rub were funded under.

B

The uea, when they should not have been so we've made that correction.

B

And yeah just trying to be really clear about that.

A

um Tonight's good, I like just two questions. If I can so when we talk.

C

About the tabal tapalgas, where that's on your radar, like.

C

Can you share with us just a little bit yeah so that.

B

That project dates from 2011 and from what I can tell that.

B

Was when the the topologist building was being um finished, um this amount had been on the books and I was.

B

Curious and actually brian's here he might have some luck weighing in on or might have some information to add, since I think.

B

He's tried to pull this threat as well, um so I reached out to tabalgas.

B

And found out that they had people kind of applying for all grants.

B

And loans, um I think that that they believed.

B

They received uh they, we granted them a 25 000.

B

Loan we we issued them a 25 000 alone and a 10 000.

B

Historic facade grant.

B

They paid back the ten thousand dollars. I think that's.

B

What they believed that they owed, um and so there was clearly a.

B

Miscommunication, they say that they had a third party applying.

B

For these programs and that they think that's.

B

Why there was an issue? They do not believe that they are.

B

Delinquent they don't believe that they have.

B

Made an error and what they've paid back and so.

B

I'm I'm now trying to locate the original documents and I had been.

B

Talking with julie about this, so okay, yeah.

B

Just trying to sort it out yeah and I you know.

B

This money is not easy for the bee to come by, so I would really like to be.

B

Able to recoup it um or correct the books if they're right.

B

And it's a mistake which I don't isn't my opinion. But.

B

If they're correct and it's a mistake, we need to fix the books if they're wrong.

B

And they owe us money, we need to get the money. So right can I I'm so sorry yeah. I just want to clarify.

E

One aspect of the timeline to see, if I understand it correctly and maybe help.

E

Out so when did you get in touch with them and when did they.

E

Pay the remainder of the facade grant. Well, they didn't pay the they paid. Ten.

B

Thousand back sorry: what they sorry! When did they pay.

E

The remainder of what they believed they owed.

B

So I talked to them in july and over the life.

B

Of our relationship with them, they have only paid ten thousand dollars back.

B

I believe they made their last payment in.

B

2016., it might have been before you even started. Brian.

E

Yeah, I think it was so much if, if they haven't made a payment while you've been.

E

uh Insur, okay, so my belief then, is that either they're mistaken or they're.

E

Deliberately misrepresenting, oh simply because I don't know who.

E

You've been talking to, but I think toboggans is based on there's a surgeon.

E

James depalgus, an older gentleman, he called uh our office a couple times.

E

When I was in in your chair and left messages without.

E

A contact number of returns, saying hey: this is james depalgus,.

E

I think I owe some more money uh happy to settle that up.

E

um And I was never able to track him down.

E

Because he never left any contact information, so I.

E

If it's not him and it's someone else, no, it's him.

E

Okay, all right yeah. So that's very bizarre, then.

B

Yeah, yeah and he's you know, he's an upstanding community member. So I.

B

Don't think he would be really happy about about.

B

Owing us money, you know if I think he would probably.

B

Like to clear it up, but um as of now there's a disagreement about.

B

What is owed to whom, so it sounds like um your approach and brian thanks for.

C

Weighing in on that, as you said, that he's an upstanding member of the community, I'm sure there's a miscommunication and.

C

Jane it sounds like your approach to finally just get the original source.

C

Documents have a conversation with them, see where the misunderstanding is, and we.

C

Just and or the error on our part that we could have something wrong on.

C

The books and we'll get it straightened out, so I appreciate you looking at that. Okay, I had one more question.

C

On the top, um you uh mentioned kevin something about the checking.

C

Account, I know we talked about this before, but I just don't understand like.

C

Why the checking account is negative.

D

Right, so what we'll do is um typically, we will.

D

Transfer funds from savings to checking when we know a check is going to be.

D

Written um but from uh first financial bank's.

D

Perspective, they view the the balance as being.

D

You know one total balance, so if we over spawn checking it, it just comes out.

D

I mean they, they clear, you know they. They allow us.

D

To write check um up to the same.

B

And it's not that we've overdrawn! It's just that! It's a sweep account.

B

Correct kevin, so we we have a debit and then the credit comes in, but.

B

Because the balance sheet is a snapshot. This is.

B

Just a picture before the credit has come in right, kevin.

B

So I think that ffb checking is always in some.

B

Strange state of debit, of credits and debits coming and going.

B

Okay, thank you great I'll. You can keep going kevin.

C

Who kind of I stopped you? We were down here: okay, yeah! So if.

D

Getting into liabilities again counts payable is the same situation.

D

As accounts receivable, I'm continuing to to.

D

Dig into that and have committed to have an answer to you guys by the end of.

D

October um for the october results.

D

And then, if you look at total liabilities and equity.

D

And which is the offset of total assets that has gone up.

D

uh 423 000 roughly year over year,.

D

um So, moving on to the income statement, uh the the big.

D

Big dollars are in zone membership fees, which are down about a hundred thousand.

D

Dollars, year over year, and that that may well be.

D

A timing issue- um I don't know jane if you have any.

D

Insight, if there are, you, know significant if there's.

D

Significant funding that that is no longer available to us.

D

But well yeah I mean, I think, that's the whole reason we're doing our map study.

B

Is that um ezid's continue to roll off.

B

And because of our competition with the tif district, we don't have as many.

B

Coming on so I think that that income is genuinely.

D

D

um In in um the next next line is do's and subscriptions and.

D

uh Jane and alex- and I discussed this- this was a.

D

uh An easy refund that we received, um and so in talking to jeff.

D

Underwood he suggested that that would offset.

D

The easy dues and subscriptions that we pay.

D

um But we need to determine you know, I think the the the question.

D

Mark is, is, is this a balance that needs to then be paid.

D

Back to the uh uh to the members, um and if so then then.

D

We'll need to to uh record that differently.

B

It does not kevin. I just had confirmation from aiez this morning.

A

Oh okay, so okay, we can we'll have to figure out how to reallocate that. But.

B

I think for now it that goes into our operating budget, which is good.

D

Right and it's basically a refund of you know.

D

A portion of the 16 152 that was paid in in 2019 is is the way so.

F

It doesn't it, you know we'll figure out if there's a better way.

D

To uh record that that, that's essentially what that is.

D

um The next big big number is zone arts grants which makes up.

D

Total grants basically.

D

Insurance expense. uh You know roughly the same.

D

Business scholarships running a little bit ahead, resident scholarships running.

D

D

And then lemonade, I need to look at that. I.

D

Because I I know we had discussed this before.

D

It is a special project, but I believe it. um I believe it was.

D

uh Well, it was the information I had from the bank. Account was.

D

uh Slow motion events, um so I think that that probably and should.

D

Should be reclassified to special projects other with which.

D

And jane correct me: if I'm wrong, but uh assuming that's the case, I can make that.

D

Change very quickly, it won't take, won't take any effort, um I'm sorry go ahead.

B

It's lemonade day I mean we can talk, yeah yeah that and I think maybe you.

D

Clarified that I was trying to go back through my emails um right before this call, so I I you know can see what's in the bank.

D

Account, uh but it's not always, um you know clearly depicted.

D

So um I know you and I had discussed you know, had.

D

Gone back and forth and and clarified a few items so that that.

D

Is where that information came from, I'm sure.

D

um Interest income: uh you know 48.80 to give us a total net.

D

Income of 542 808 uh compared to a negative 358.

D

213 and again that that negative number included.

D

The million dollar special projects to cdfi friendly.

D

D

Thanks: okay, are there any questions from board.

C

Members about the um financials that you want to ask.

C

Either kevin or jane.

G

I guess we have a really quick question, I mean, and it was actually just came to.

G

Me recently, I thought about the.

G

Is that going to have any impact in terms of that ownership, change and.

G

You need to make sure that's a good question. Scott.

B

I can follow up with ryan and toby to make sure that we are.

B

Paid back in the course of that sale, which I don't think.

B

They've closed on yet.

B

So I can report back on that next time. I guess then the other thing was if.

G

If to pause, if that was a grant which wasn't sort of necessarily needed to be.

G

Paid back so essentially, the difference is put on five thousand nine hundred dollars the difference that they should.

G

Have I'm having a really hard time hearing.

B

You, scott, I'm sorry, okay, what I was saying is that.

G

So since there was a grant for the historic facade for.

G

The topaugus building right.

G

If that wasn't needed to be paid back, I mean it's kind of weird that they paid.

G

It back if it was a grant, um but then the other part, the loan being so the difference is it is I'm just trying to get my head.

G

Wrapped around what yeah, so I think.

B

The way I think I've explained it in a confusing way. There were two separate.

B

Pots they received the ten thousand dollar grant. They received a 25 000 loan.

B

I think that they thought the grant was 25.

B

And the loan was 10., so they paid back 10 and are saying that they believe.

B

They have completed their repayment, so I don't know if that helps that helps.

B

Yeah, so it's a it's in that loss of or it's not a loss yet, but they.

B

It's an ode amount of 15.

G

Thank you yeah, and until we to jane's point, I think until we have.

C

The original documents, it's kind of hard to know what happened there.

C

So we'll just look for that from you and really appreciate your question.

C

Scott, because it is, I too find myself trying to understand that so.

C

um Thank you any other questions for for jane or kevin on the financials.

H

Just just this comment: if, if this is the dr topolgus, that I'm thinking of.

H

I'm surprised he's still alive. The man must be very old.

H

And it could just be a product of that. I think it was his family that was doing.

H

The project- and maybe you know he was the.

H

The grand old man to you know that everybody knew.

B

He seems like he's in pretty great shape, he's still practicing and I met with him.

B

And his one of his daughters, who does his books.

B

For him, so okay, this must be a son all right.

H

My mistake: that's okay and, and it's a good.

C

Comment, you know it's fine to have these conversations just as a reminder. These.

C

Are public readings so they are recorded and live on facebook, so we do want to be aware of that.

C

um And given this the fact that we really don't know.

C

About the situation, I think we're all being very careful, including you paul.

C

About and jane being open that who knows.

C

What's going on here and not to lay responsibility with anyone? Quite yet.

C

Until we get more information relative to the source documents, so.

C

Correct so we look forward to that jane um once.

A

You're here to, let us know what you found.

C

Will do any anything else, any other comments or questions about financials.

C

Jane did we do other boards, I'm on. We do like a motion to accept the financials. I.

C

Don't think we do that here, do we we haven't, but larry is that something.

B

We should consider.

I

I mean you can consider it. Certainly if you, if you like.

I

I don't know that the what would be the impact of a failed motion.

I

To accept the financials, um I don't know that that would matter.

I

One way or another, but you're welcome to take a motion just just for future.

I

Reference whenever you do vote on motions, uh please do the vote by roll call, as opposed to just voice vote.

I

Thanks yeah, we don't need to do it. I was just.

C

I couldn't remember if we did those here or not, um as I mentioned other boards.

C

I've been on, they do except the financials is emotion, but we.

C

Don't need to do that here unless people want to do that.

I

Okay, you could certainly do it as as a way of recording them with the minutes.

I

To make sure that they're accurate so as long as they're accurate, be the same as.

I

The minute so just to have it recorded, along with those that might be a good.

I

Idea, I would I I think, that's why I other boards, I've.

C

Been on, it's sort of like the board, accepts the financial statements as presented to the board, as opposed to.

C

To your point, like rejecting them like no, the board doesn't believe these are.

C

Accurate and we are discounting them and rejecting them, so I think you're right.

C

Maybe accepting them as record. That might be a good thing to do so if.

C

Someone wants to um entertain a motion to accept.

C

The financials as presented, please do.

F

Is alex crowley so moved.

C

Okay, we have a motion and a second all is in favor of accepting the.

C

Financials, oh nope, we got to do it. Sorry. Thank you.

C

Jane, do you want to do roll yeah, I'll call uh karen.

C

Yes, jackie, yes, mary, yes, scott.

B

Yes, alex yes, kate, yeah, paul.

H

Yes, tracy, yes thanks and thank you, gene for mentioning tracy.

C

I wanted to welcome her. uh I don't think we had you at the original roll call, so also to enter tracy as attending the meeting. Thank you.

C

Good glad you're with us tracy, I was dealing with some plumbing issues.

C

So next we have the is it the committed funds to date.

B

B

This we kind of we looked over. I guess this is the spreadsheet that I had added.

B

Which is the funded loans document, so we have our buea column and then this is now um set and correct.

B

So but we talked about already okay um and then.

B

These are the zone arts grants that have gone out.

B

um Total outstanding of the loans- that's because we've had the.

B

50 000 repayment, um a few zone resident scholarships new ones, have.

B

B

A few business scholarships have come in and, as I said, we have 13 new ones.

B

So yeah, that's just it for current programming.

B

And then we'll have um some additional programming.

B

uh The mccsc uh sponsorship cyrilla helms will join us in october to talk.

B

About that um support so not.

B

Not much action this month, um but I think september will be.

B

Or in august, but I think september will be busy, so we'll see a lot more.

B

Activity there um and then.

B

Yeah I mean, I think, that's that's all that I have okay, any questions for jane.

C

C

The committed funds to date and the the um schedules she's pulled up.

C

Okay well hearing none! Thank you jane for that.

C

um Okay, mary yeah jane. I just wanted to uh make sure that.

J

What you're, showing us, the updated version, is also the one that's posted.

J

On our website of the rrf, it is yeah.

B

So we closed that loop.

C

So if you went to the buea website, you could see this information, so the public.

C

Can go to that and right is what you're saying yeah. That's.

B

F

And is that also the uh there's a on the business, the bloomington.ion.gov forward.

F

Slash business page has a link to this as well. Has that.

F

Been updated as well, do you know, learn something new every day, okay,.

F

I can take it I'll, take care of that. No, I can do it. I just didn't know that it.

B

Was also reflected there.

C

Any other questions or comments, jane thanks for.

C

Keeping us up to date and linking everything to the website and.

C

Yeah, so if I can get us back up to our agenda, I guess I.

C

Think we have the cdfi friendly bloomington update with brian.

C

Although that's, I don't see that on that agenda, but.

B

We added it after we circulated the agenda, so I would.

B

File that under other or new business. um But since we're just after the.

B

Anniversary of the um contribution that the buea.

B

Made uh to cdfi friendly bloomington, we.

B

Thought it would be nice to invite brian to give us an update.

B

Great, thank you brian we're glad you're here.

E

Yeah glad to be here uh jane, is it okay? If I share my screen.

B

Can you do it host disabled participant screen, sharing.

B

B

This might be beyond me, you got it. Yeah that worked marina, took care of you.

B

Nice, thank you. Thank you. Marnina, okay,.

E

So you know, first of all, it's great to be back. I'm really really uh enthused to.

E

See not only the financials looking in better shape than they were when I was there, but the membership uh is lively and um rejuvenated with new blood. So bba is in.

E

Very good hands and- and it's really great to see some of the new folks. So in light of that, I will try to give a little bit of historical.

E

Context, I know jane has been keeping you all updated.

E

um So as jane mentioned about a year ago and and far longer than a year ago, bba.

E

Committed to contribute a million dollars to capitalize.

E

Cdfi friendly bloomington's capital enhancement pool, which is basically.

E

A pot of money we use to lend to local borrowers for community development.

E

Projects- and we do that alongside cdfis and I'll talk a little.

E

Bit more about about how we do that for some of the new folks, but um we're very appreciative of that capital. And it has.

E

uh Hopefully not only about to be deployed to great success, but it's.

E

Already been really useful in demonstrating the commitment of the.

E

Community in the region to this project and, as um you know, commitment that can.

E

Be leveraged to to gain more capital from banks, so it's.

E

Already been useful, even though we haven't um spent it specifically for the purpose that.

E

That it was designed, um so I'm happy to answer any other questions about that.

E

But let me quick go through this, especially for some of the new members.

E

So cdfis are community development, financial.

E

Institutions they are outside the traditional finance market,.

E

And they can look like a lot of different things. Loan funds venture.

E

Funds, banks, credit unions, uh you know the aphorism if you've seen.

E

One cdfi you've seen one cdfi, but basically what they do is fund.

E

Community development projects uh so projects that are good for the.

E

Community that benefit low income, low wealth, other disadvantaged.

E

Communities or um affordable housing or nonprofits other.

E

Community development mission goals- um and they do it typically.

E

In areas where the banks are not interested right, so they.

E

They lend either to borrowers that cannot get funding from banks.

E

um To projects that are not interesting to banks, typically.

E

um And they sort of live outside the four corners of the traditional finance.

E

Market- and so they fund really good things, and we want to incentivize their participation in.

E

Our community, and so that's why we're called cdfi friendly, bloomington and.

E

That's why we have sort of a focus. Our end goal is to fund these development projects and get these good projects money. But that's.

E

Why our our mechanism is to be proactive and engage.

E

With the cdfi industry happy to answer any questions about that.

E

At the end, um we talked about what cdfi's fund you.

E

Know the typical three legs of the cdfi stool are non-profit lending, affordable, housing and small business. So here.

E

Affordable housing, nonprofit and small business all.

E

You know relatively extensive with the uea's mission, but especially small.

E

Business and entrepreneurship fits right within the uea's mission, as.

E

Well, um and so this is sort of the baseline. I.

E

Like to compare our our activity to opportunity, finance.

E

Network is the cdfi trade association, so this is not perfect data, but it's the.

E

Best available data uh on cdfi lending in the bloomington.

E

Msa prior to our existence, so most of the last two decades and you'll see there's a few projects.

E

The total investment is just under five and a half million dollars.

E

um Over the better part of two decades, um so you know we, we've talked a little.

E

Bit with this group about why we're choosing to do this instead of.

E

Start a new cdfi or invest in a satellite office for an existing cdfi.

E

And really, the reason is that bloomington is not a huge market which.

E

Is why we don't already have a cdfi, but we have the diversity of capital.

E

Needs that reflects a bigger market, so we have broad but shallow um portfolio needs and so an entity like cdfi friendly that.

E

Can be a liaison and a connection to a 186 billion dollar market.

E

And work with the cdfis that are experts in each area.

E

Rather than starting one small group, that's going to try to actually be the.

E

Lender on projects that we've never done before and lend to everything that would constitute community development capital.

E

Need so that's why we've chosen to structure our organization as we have. um This is a just, a a graphic that shows.

E

How cdfi friendly bloomington exists differently than cdfis we're.

E

Really just adding a layer between investors and users.

E

And we're a facilitator that stands in because cdfis aren't present in our.

E

Community, so we can help provide technical assistance.

E

Help you know, promote borrower opportunities.

E

In the area link deal opportunities to cdfis that.

E

Don't have a presence here, um and so we we really fulfill that role.

E

That's lacking from from an on-the-ground presence and I'm happy to send this along to jane and to any members who are interested.

E

So our structure is pretty simple: we're a 501c3 nonprofit.

E

We now have a board of seven members, scott, I'm so sorry that this, the number.

E

Is not reflected in the presentation, um but scott wright's joined our board, which makes us seven seven strong. We serve 13 counties around monroe. Almost you know, 80 percent.

E

Of our deal, opportunities have been in the city and, as you are aware, some of our equity capital is restricted to.

E

Being used within the city of bloomington.

E

But we do, we do serve uh the 12 counties surrounding bloomington.

E

All the way from dubois up to to martin um and over to lawrence and jackson.

E

uh There's three permanent seats on the board. You have one it's currently being.

E

Held um by scott wright, although jane is also.

E

On the board, but in her capacity as a small business owner.

E

I'm the only full-time staffer most of our funding comes from non-profits and.

E

And local banks that are looking to help you know effectuate cra lending and.

E

Community development lending in the region, uh cfb capital, is the enhancement fund. That is the.

E

So the destination of the buea contribution we had two million dollars.

E

In equity in that fund- and we are currently closing deals for hopefully.

E

More than two million dollars in additional debt capital from local banks.

E

I had a meeting with the local bank this morning to get some paperwork done. I ask a question. You always may uh enhancement fund.

B

Sounds really um slick, can you talk about what that.

B

Is and does yeah that's a good uh positive, softball question. I appreciate.

E

You guiding me towards the level of granularity and and.

E

Summary information needed, so what are we talking about.

E

uh As I mentioned, the cdfi friendly model is not to be the sole lender on.

E

Any project not only do we not have the underwriting experience, but we don't.

E

Have the needs in our community and we don't have.

E

The portfolio to be able to service all of those needs.

E

As a sole lender, so our model is to use the enhancement.

E

Fund to facilitate investment by cdfis, so we lend, alongside a cdfi if a cdfi.

E

Underwrites a deal thinks it's a good use of capital uh and.

E

And is willing to do the deal but needs somebody to mitigate some risk.

E

uh Needs somebody to increase their lending cap, some small cd5 step lending caps that prevent them from investing.

E

More than a certain amount, if their rate is a little bit.

E

Outside of the range of borrowers, affordability, cd5 friendly, can lend at a.

E

Lower rate alongside them to to bring the blended rate down, there's a.

E

Lot of different ways: we can use the money, but the bottom line is that the money is used as an incentive to get cdfs to.

E

Invest a lot more money, so very good question jane. Thank you.

E

So that's owned and operated by cd5, friendly bloomington and.

E

An investment committee it governs the expenditures of that funds.

E

Julie donham, who I believe is still on bba, is just not.

E

Present today is that right, okay is, is the buea representative on the.

E

Investment committee uh and then the other members are uh a.

E

Rotating seat for our local banking board members and our treasurer warren cutroll so, and every investment by.

E

By that uh by cfb, capital has to be approved by the board as well.

E

So both jane and scott will ultimately get a vote on.

E

On how that capital suspended, so that's basically the structure.

E

uh And jane, please let me am I going way over time. How much time do you want me.

E

To keep you I mean.

B

We we're at 12 42, we have an hour, um so I think yeah, but you have.

E

Other stuff on the agenda right, no you're it. I think. Oh okay,.

E

All right, well, okay, um so in terms of key functions I like to.

E

Organize you know our services and and why we exist into four main roles, for both cdfi's and for.

E

Local borrowers, so two of them are non-pecuniary.

E

It's basically me working to identify and develop.

E

Potential cdfi investment opportunities and that.

E

uh Relies on networks like the buea networks, like the city of bloomington,.

E

The small business development center- I am really interested in hearing about potential projects that are good for the.

E

Community and need money that they're having trouble getting.

E

Right, I I want to take any meeting and any call.

E

From somebody matching that description, and so.

E

Part of the service our organization does to community is to is to.

E

Provide an outlet for folks that have that need and don't know where to go.

E

And to the cdfi community, we provide value by.

E

Organizing and aggregating a pipeline of potential deals in a market that they.

E

Don't have a physical presence in which is hugely valuable to them.

E

um So we're you know we're a finance liaison, we're a connector.

E

And an organization that is promoting borrower opportunities and deals in the.

E

Region out to cdfi's and then and and two cdfis back to the borrowers.

E

uh Second, we can market and provide technical assistance.

E

Of those opportunities, so cdfi is one of the things that distinguishes the cdfi.

E

From a bank is that a cdfi has to provide technical assistance, they.

E

Have to help the borrower beyond just giving them capital and so see for cdfis that don't know the.

E

Borrowers here don't know the you know: the city, government, environment.

E

The market here I can step in and provide some of that insight and.

E

Knowledge and and and some of that, help that they would be able to provide if they had a physical presence, but but don't uh and then financially. We can provide the enhancement funding.

E

From the cfp capital account, we talked about and a lot of different ways.

E

And then um it's not listed on this slide, but we also have.

E

A deal with bank of america and we're going to get the first deployment of.

E

That capital very very soon, where any cdfi that invests in the cdf5.

E

Friendly bloomington region can access really cheap money from bank.

E

Of america, it used to be zero percent. Now it's closer to one percent, because the market is worse, um but that's a really great thing.

E

For their balance sheet and the goal is for them to use that as an.

E

Incentive to look at our market spend money in our market and then take.

E

The money that they get from bank of america and either make the.

E

Terms better for our borrowers or redeploy it somewhere else in the.

E

Region, that's that's a benefit, so those are those are some of the key.

E

Functions that that we play as an organization and then if you.

E

Harken back to the the chart, I.

E

Shared from ofn that that lists sort of the cdfi investment from the previous.

E

Two decades, in our year of of being a staffed entity,.

E

We've we've had pretty significant impacts in terms of encouraging cdf's to invest here. So we've more than tripled the cdfi.

E

Capital investment in the bloomington msa.

E

In this year, as compared to the last two decades,.

E

uh We have six cdfis currently looking at funding.

E

You know I talked to more than six cd5s, but at least six cdfi's are looking at.

E

Funding deals in bloomington or funding projects in bloomington in some.

E

Fashion we've funded in some way or another, more.

E

Than contributed to more than 166 affordable housing units, some knew.

E

Some renovated through a red conversion, and then we've supported the creation.

E

And retention of 10 jobs um so we're looking to make more of an.

E

Impact in the business sector, uh we've ins leveraged a lot of.

E

Incentives from other government bodies and and overall these.

E

Projects have cost more than 28 and a half million dollars.

E

So we're bringing money into the community into projects.

E

That are going to have value for the most disadvantaged sectors and.

E

People of the community uh and so we're hoping to add to that.

E

Very soon where we have a couple of projects.

E

um Coming down the pipeline, I think you all are pretty familiar with the.

E

Represents bund- and these are just a couple slides talking.

E

About cdfi friendly bloomington's role in helping to administer, helping to create the loan product and promote the information.

E

About the opportunity to sources right, so I think you're pretty familiar with that, um the last one I'll mention you know we.

E

Are trying to be sort of an end outlet for either individuals that.

E

Didn't get enough money or were not able to obtain funding from the rapid response fund to put them right into our pipeline and say.

E

Look we're going to look for money for you from the cdfi industry right, so there's a really good program. That's available right now.

E

um Through a cdfi called bankable, for example, that's.

E

Microloans to small businesses and the sba will make your first.

E

Six principal and interest payments if we can get that done in the next month,.

E

um So anybody, if you're aware of anybody who might be interested in that we're.

E

Happy to um to connect you with bankable.

E

You're pretty familiar with this process, I can skip that upcoming projects.

E

uh That I hope to be able to announce really really soon.

E

One is, I think, probably the third deal. We're going to close is.

E

Richland senior housing, which will be our first deal outside the city of bloomington. This is another uh project where we were.

E

A facilitator, we didn't invest any money, um but a cdfi named I'm sorry, cdfi named.

E

Scenario from michigan, which has funded our other two projects,.

E

Is in negotiations with the developer of a senior housing project that.

E

Is a combination of renovating and rehabilitating existing.

E

Smaller properties, creating 50 new units, which will total.

E

uh I got to move my my little window here.

E

Over 161 new senior housing units combining new.

E

And renovated uh units for senior 62 and over and.

E

Outsville and they always reserve a few for individuals with developmental disabilities.

E

And they have on-site support staff and they have a shuttle to get you in and.

E

About town- and um it's it's a really great project, it's.

E

A 20 million dollar project and we're hoping the cdfi will provide at least 11.

E

Million of those dollars and depending on how negotiations go it.

E

Could even be more so that would be great. The second.

E

Project, I'm probably more excited about because it would represent the first.

E

Deployment of cfb capital dollars so 921 west 9th street is a is a. I should.

E

Be more careful since we're on facebook live a deteriorating single-family home near reverend butler park. um It was.

E

Previously used as private student housing, it's technically.

E

Classified as a nine-bedroom, um but it hasn't been used for several.

E

Years and bloomington cooperative living, which owns the yellow house on on kirkwood near rogers,.

E

That you may know, as middle earth is hoping to do their first.

E

Development of an owner-occupied home where they convert it into co-op housing.

E

So currently nobody's living in it and it doesn't look great, but it's right.

E

Next to reverend butler park, it's in a great location across from the community orchard and they're going to turn it into 18.

E

Affordable units to individuals making less than 80 percent of area median.

E

Income, some mostly studios, but some are even suites for families.

E

And that rent includes utilities and 15 of of of the tenant's meals. So every.

E

Night bcl offers a community meal for folks that are interested, so it's really really good housing and it and it's a great way to get involved with community.

E

Everyone's got a private room and a private bathroom in this project, but of.

E

Course it's community style living, so uh that would be about almost a.

E

Million dollar project cd5 friendly bloomington is looking at.

E

Lending between 300 and 450 thousand dollars, or so.

E

Sinaira is involved in that one and then leaf, which is a cdfi in massachusetts.

E

That's focuses on co-op deals and is really the.

E

Expert in this deal um would be involved too, so it's a really great example of.

E

Our organization's ability to not only reach out to groups, we would.

E

Never otherwise work with like this co-op, specific cdfi in brookline.

E

Massachusetts, but also to participate and get deals.

E

Done that otherwise would have no prayer being done right. So this is not a.

E

Profitable venture, um you know the renovations are going to.

E

Well exceed the value of the market value of the house, but it's a.

E

Great community, a good community organization, and they wouldn't be able to do this project without some some affordable, flexible capital. That cares about the mission.

E

Rather than the roi so hopefully hopeful to have announcements on those.

E

Two fronts pretty soon and did you mention? I think this group.

B

Is probably aware, but that's a zone, that's a zone address. I didn't and I.

E

Should have not only is it in the zone, but it's in a tiff right. So that's that's eligible for either our.

E

Redevelopment commission, equity or the bba equity.

E

uh And that's right: smack dab in the middle of the enterprise. I should have.

E

Mentioned so that's my contact information, I'm.

E

Thrilled to meet with any and all of you to talk about projects or more about the.

E

Organization, like I said, it's really important for me.

E

To get referrals from anywhere and everywhere for folks who.

E

Who have small business? Capital needs, non-profit needs or any other sort of.

E

Community development need um and I'm happy to send you this.

E

Presentation but I would love to just hear some feedback.

E

And and answer any questions that that the group has.

C

That was a great presentation. It looks like paul. Has a question.

C

Me too, just just to comment again uh that ninth street property I've seen it.

H

um Other organizations had looked at it and they it. It was just more than they.

H

Could handle so congratulations.

J

I have a couple questions too.

J

Go ahead, mary, okay! um I'm just going to ask them all.

J

And hopefully you can field them. However, you want um in your slide.

J

Showing the number of housing units affordable, housing units created could.

J

You talk a little bit more about what those projects were.

E

Yes, what are we talking about? What's going on.

J

And, and also how you calculate the number of jobs retained.

J

And created, and then third question is, does did this the the.

J

Recent changes to the city's udo affect interest.

J

One way or another in projects from your perspective.

E

Yeah, it's a great question. So, first of all, let me ask the room.

E

Can you see your own faces in front of the powerpoint right now or can you see.

E

The whole powerpoint screen I've never known this about zoom.

B

You can see the whole powerpoint great all right, so I'm not going to fiddle.

E

With my my zoom, thank you all right so for good.

E

Very good question: the first question is: uh how do we generate those.

E

Affordable housing numbers and the answer is, we are cal. We are.

E

Counting affordable units that are created or renovated by.

E

Projects that ce5 friendly has contributed to so.

E

It's not a fraction of what the project would be. That is proportionate to our.

E

Investment share, which is the first thing to know, so that's.

E

The total impact of the entire project and then what are the projects that.

E

Contributed to those numbers, so it's two projects. The first one is.

E

Kinser flats, which is over by the the holiday inn and the bedc over on kinser.

E

Pike which you may have seen going up that is owned and occupied by center.

E

Stone the behavioral health non-profit in town and that's 50, affordable housing units for.

E

Individuals and families touched by substance use disorders, so that will.

E

Have supportive services on site, they're, all affordable units and that's a really great project that had you know old national bank led to that scenario, syndicated the tax credits and and gave the pre-development loan the.

E

City, the bloomington housing authority partnered to provide some vouchers and make sure that they could fill it.

E

With folks that need housing, the city was definitely very helpful. I.

E

Think there might be home dollars spent on that. I can't remember, but that's a.

E

Great example of a multi-layered capital stack and a.

E

Partnership, so that is the 50 new units are from kinser flats.

E

And then the 116 affordable housing units that have been renovated and.

E

Rehabilitated those are all the units from the reverend butler and walnut woods. Bloomington housing authority properties.

E

So all their properties in the reverend, butler and walnut woods areas.

E

Went through a rad conversion deal where they can get low income housing tax.

E

Credits to update those and keep them viable and.

E

And better for this, the tenants for the next 30 to 35 years so.

E

Those who all be redone new energy, star appliances.

E

um You know new kitchen new living room, new security system around their new.

E

Lighting all that sort of stuff funded by low-income housing, tax credits and these lenders and the the tenants in those places will be.

E

um Given housing at no charge to them, while the repairs go on uh and so.

E

That's a really great um project that keeps some of our affordable housing.

E

Stock, not only better serving the tenants, but you know useful for for farther down the road.

E

So that's where the affordable housing units renovated number comes from.

E

I think the second part of your question was: where do we get the jobs created retained number, so those are from.

E

A couple of places, one of them is me I'll, be straight forward with that. We.

E

Wouldn't I wouldn't have a job without cd5 friendly bloomington, so I'm counting.

E

Myself, um the other nine are from.

E

The rev, butler and walnut woods, rad conversion project.

E

And kinser flats will each have some support staff that will be permanent.

E

Staff to help serve those facilities.

E

Bha has a formula where they say this is how many of our staff.

E

Serve each facility right, so the continued existence of reverend butler.

E

And walnut woods and the new existence of kinser flats will require support staff, and so that makes up the remainder of.

E

The nine employees so we're hoping that number goes up when.

E

We start deploying some of this capital to support small businesses and.

E

Entrepreneurs, it's a good question. I think your third.

E

Question was I lost it, I'm so sorry. What was the.

E

Third question: it was whether the recent changes to the udo.

J

The city's udo, unified development ordinance.

J

Affected interest uh in projects one way or another, or if.

J

There was no impact, I would say that in terms of interest.

E

Level I haven't seen a measurable impact and it's it's also hard to.

E

Distinguish it from you know the other major.

E

Issues going on right now, right where covet has had a giant impact on.

E

On interest in the types of deals we're seeing, uh I don't think the udo's had.

E

More than negligible impact on interest in cd5, friendly.

E

What it has done is is caused a couple of wrinkles for.

E

Projects in development right so projects that are.

E

Sort of straddling the old udo and the onset of the new udo.

E

And trying to make sure that their you know something they plan beforehand,.

E

Is still an acceptable use right, but I don't think it's affected interest.

E

Good question: thanks mary anyone else have questions for brian.

F

I can uh maybe help on the udo side too. I I I've been having discussions with.

F

Developers, particularly from out of town and you know actually one of the things.

F

That I've heard in a couple of different cases is.

F

Historically, bloomington's been pretty hard to figure out when it comes to how.

F

To do development, it's been frustrating particularly.

F

Outside developers, who don't know the ins and outs, what I'm.

F

Hearing is that the clarity that has come.

F

From the udo creates predictability and the predictability uh makes it.

F

Easier to approach bloomington with with development relative to what existed before, and you know one one.

F

Person told me it was just easier to go to a different.

F

Market, you know if, if you were agnes agnostic, where you were going to make.

F

Your money, it was just easier to go to a market that had had greater clarity than bloomington did so I think we're we'll probably end up seeing that shift happening.

F

Progressively as udo uh you know, process completes which will include the mapping.

F

Shortly um so, if anything, I kind of feel like.

F

The the udo will have a positive effect on.

F

Interest and development interest in town.

C

Thanks alex for those comments, I sit on the planned commission and sat through.

C

Those hearings for the udo, so I appreciate you.

C

Reflecting on it in a positive way, thank you.

C

um Anyone else.

C

Okay, brian, I so would you say overall that most of the projects are related to.

C

Affordable housing so far, that's a good question and and one that.

E

We get from investors and potential borrowers and.

E

And sort of key stakeholder entities in the in the financial industry is what sort of deals is this entity.

E

Drumming up um so, I would say the majority of the.

E

Deals are non-profit or small business.

E

Requests now that's the majority in terms of the actual number of deals.

E

The number of potential borrowers, but not in terms of the amount of total.

E

Investment, so what I think you're seeing in our impact so far.

E

um Is that the deals that uh bring a lot of capital and interest.

E

Cdfis most and an area where they're, really comfortable lending they've been doing it for decades um is affordable housing and it may be the the most salient need.

E

Among the three in bloomington, so you see.

E

You know those cause a really big um effect on the impact metrics.

E

And it brings a lot, it brings a lot of money and leverages a lot of state and.

E

Federal incentives, but I think the number of folks that we talk to.

E

You know I've probably talked to 25 or 30 or more.

E

Potential small business borrowers, it's just the.

E

Success rate and the rate in which they, you know they need and are interested in.

E

Pursuing a loan is much smaller than an affordable housing developer or a.

E

Non-Profit developer, so I would say that, in terms of if you.

E

Know if I were to guess at a pie chart um the number of small business loans.

E

And non-profit uh you know, capacity building loans far exceeds the number of.

E

Affordable housing opportunities, but the affordable housing opportunities.

E

Are are the larger dollar ones, clearly we're getting a lot of micro.

E

Loan requests from small businesses and nonprofits.

E

um Yeah, that's a really good question yeah! Well! Thank you. That's very.

C

Interesting um anything else for brian.

C

Okay, well, thank you so much brian. We really appreciate this update and.

C

Congratulations on all the good work that you and the.

C

Board of cdfi friendly bloomington are accomplishing.

C

It's really impressive yeah. Thank you very much and.

E

And obviously we couldn't do it without the buea and and I'm really impressed to.

E

See how the buea has grown uh since I stopped following it up so.

E

It's really good to check in with you all.

C

Right, thank you. Yep jane's, doing a really good job.

C

um So I think jane. It looks like to me that there.

C

Isn't anything else on the agenda? Is that correct?

C

That's correct, okay and it is 102., so we'll tell julie that I only ran two.

C

Minutes over because she's pretty good about the one.

C

Hour when she can so uh do we have a motion for adjournment.

I

So moved: okay, we have a second second cool.

C

And um larry we're not going to take a roll call on a journey we're just going.

C

To adjourn everyone in favor of a journey say aye.

C

Hi hi, okay! Well, thank you to all of you um for your time today, donated to the.

C

Buea board really appreciate it. um I think we're all doing some really good.

C

Work under jane's leadership, with the assistance of.

C

um Marnina kevin and larry, and so thanks to.

C

All of you and have a great rest of your day.

C

Thanks everyone thanks.

A