Community Vitality Center Board Minutes

October 20, 2009

204-208 Scheman Building, Iowa State Center

Members Roll Call; 14 present 

Staff and Guests in attendance - 3

Craig Downs, Sandra Burke, Mark Edelman

Meeting called to order by Carol Richardson Smith at 10:15 AM. Minutes from the July 16, 2009 Board meeting were distributed and Smith asked for comments or corrections. Motion made by Rand Fisher and seconded by Mark Hamilton to adopt minutes as presented. No further discussion, motion carried unanimously.

Edelman reported on federal funding and thanked those who made contact with our Senators in support of the CVC funding. There was $250,000 approved for FY2010-2011, which is a 20% increase in funding over the previous year. CVC was listed as being sponsored by both Senators Harkin and Grassley. The support of both Senators was and continues to be appreciated.

Funding for FY2009-2010, was on tract with USDA for eventual release of all funds. A hold had been placed on 2 subcontracts by the USDA grant reviewer as they asked for letters from consultants and subcontractors.

Fisher asked about funding for Rural Development Councils. Sandy Ehrig said there’s nothing really to report yet but some discussion going on with Joe Folsom and Bill Menner.

Edelman has submitted a request for FY2011-FY2012 to be placed on ISU’s federal agenda as in the past, but it is too early to know much about funding for ISU submittals until next Spring.

Downs reported on IFMCV; funded 12 loans through today for an outstanding balance of about $231,000. The interest rate is 9 7/8 % APR. IFMCV has not done a co-lending project yet. IFMCV refers applicant clients to others like the SBDCs for getting a business plan put together and/or improved. Marketing meetings have included SBDCs, Score meeting, Farm Bureau Roundtable, Black Business Summit, Immigrant Entrepreneurs Summit. Among reasons for applicant’s difficulties are: business plans deficient, getting balance of information together, credit worthiness of applicants. All payments are current through Oct 15th. Fisher asked about possibility of interest rate buy-down through community foundation; Downs indicated that concept is allowable.

CVC Staffing request for TA coordination. Edelman reported that Prescott is going full time to Ghana Dec 31st. Therefore there is a need for CVC to make alternative plans for Coordinating the TA Assistance for IFMCV. CVC will have funds saved from Prescott position to pay part time for TA Coordination. IFMCV is also in position to hire a part time help for phone and file maintenance. Since IFMCV desires to be a credit bureau reporting agency, it is required to have a physical location, a functioning store front. Home offices not allowed. The IFMCV Board approved a motion to ask CVC for an additional $10,000 annually starting with the FY2010-2011 budget. Downs and Edelman have conducted due diligence for office space – fee, rent, ownership. ISU Research Park – has pay rental. An additional criteria is that to be eligible for some USDA programs, the location needs to be located in a rural community of less than 20,000 population. Fisher asked about hiring Robeson’s Iowa Business Growth to assist in servicing loans. Edelman indicated that IBG was initially approached to manage IFMCV but was not interested at that time. The CVC usually makes budget decisions at the January meeting. Burt Chojnowski said he can offer office space.

Jane Halliburton reported on the Sioux Falls Midwest Rural Assembly.

Presentation by Dr. James Burke on health care, health insurance, and health coop concept.

Lunch

Smith discussed the mini grant process for 2010. Edelman said that the timeline would be similar to previous years with approximately the 1st week of Feb for the CVC Submittal to USDA. Three themes for proposals have been suggested; the application and evaluation process would be similar to what CVC used in the past. Out of the CVC budget of $250,000, about $60,000 needed to fund the center and $50,000 has been allocated annually to IFMCV during the past two years as part of a five year commitment. Thus for mini-grants there is around $110,000 (grants $5,000 to $10,000). Chojnowski moved and Fisher seconded to accept timetable, themes, and process. No further discussion, motion carried unanimously.

Presentation by Marnie Steen on green house gasses.

Edelman reported that the IDED Main Street Affiliation Agreement was being signed by IFMCV and would include 9 communities in the pilot project. The Agreement will provide IFMCV with an additional $200,000 conditional grant for this new affiliate. Of the total, $50,000 is reserved for TA with Iowa Historic Preservation Alliance (IHPA), and $150,000 will be used by IFMCV as local match for additional loan capacity with SBA, USDA or other private funds.

The 1st quarterly meeting with IMAP demonstration projects was held September 29.

USDA’s new Rural Microentrepreneur Assistance Program (RMAP) proposed rules are published for comment. CVC and IFMCV is reviewing the rules for purposes of submitting comments.

The IDED Community Microenterprise Development Organization (CMDO) Grant program has been put on hold again. Program on hold with budget issues.

CVC was not selected for the HHS ACF grant. Burke took exhibits to the national rural development staff conference in Washington, D.C.; Dallas Tonsager, USDA Undersecretary for Rural Development visited the exhibit. Edelman reported on a call discussion with Tonsager regarding national rural agenda issues.

Menner is no longer able to be on the CVC Board due to USDA rules on potential for conflict of interest. Edelman provided draft concept 2-pagers that resulted from discussions on farm to school microfinance and clean energy microfinance. Deb Houghtaling asked if energy projects wouldn’t be too large to be a micro finance project. Chojnowski said that some could be small enough, $50,000 or less. The program would provide loans for businesses that support the energy installation not necessarily for the individual installation itself. Houghtaling noted that the more specialized and/or targeted loan funds become, the more complex and difficult to market to separate clients; the strategic focus is good but separate funds can be difficult to manage. Chojnowski moved and Don Chaplain seconded to support exploring these initiatives and ideas as possible strategies for CVC program development and IFMCV funding access. No further discussion, motion carried unanimously. Fisher commented that he was not sure why a motion was needed to support exploring various strategies for the CVC.

Erb asked about the project on county finance that was previously allocated $5000. Edelman said that Dr. Dan Otto, who teaches the Public Finance Course had agreed to do the project and had hired a part time student. The project was to focus on tax dollars, where they come from and where go, bonding and indebtedness. Edelman indicated that he will invite Otto to present the results at a future CVC Board meeting.

Chojnowski moved and Roxanne Carisch seconded to adjourn.