2018-11-09T10:27:55-06:00 2017-12-31 410746749 CLIFTONLARSONALLEN LLP 818 SECOND ST SO SUITE 320 WAITE PARK MN 56387 990 2017-01-01 410972298 MIDWEST MINNESOTA COMMUNITY DEVELOPMENT CORPORATION MIDW 2188473191 119 GRAYSTONE PLAZA NO 100 DETROIT LAKES MN 565013034 JULIA NELMARK PRESIDENT 2188473191 2018-11-09 1 JASON NEUMANN CPA P01690179 3202035500 2018-10-17 67.137.57.251 2018-11-09 10:26:30 CS P 8ECECD2934116A1446D5A984C58DA1E2D1128512 734C1E273F74A2F5BE0F14AFC1E3F98531097F4D 2017 2019-02-21 02:37:17Z JULIA NELMARK 119 GRAYSTONE PLAZA NO 100 DETROIT LAKES MN 565013034 7567971 0 X WWW.MMCDC.COM X 1971 MN THE MISSION OF MMCDC IS TO ASSIST COMMUNITIES AND INDIVIDUALS ACHIEVE A BETTER QUALITY OF LIFE. 12 12 45 0 0 0 802269 1191887 6590913 5810997 546988 25100 526385 539987 8466555 7567971 127819 133213 0 0 2864961 2865417 0 0 141431 2155122 2036104 5147902 5034734 3318653 2533237 65019972 68296652 9013854 9757297 56006118 58539355 THE MISSION OF MMCDC IS TO ASSIST COMMUNITIES AND INDIVIDUALS ACHIEVE A BETTER QUALITY OF LIFE. 0 0 2576828 133213 5023354 BUSINESS DEVELOPMENT: MMCDC PROVIDED $8,559,000 IN LOANS FOR BUSINESS OPERATIONS AND COMMERCIAL REAL ESTATE IN 2017. THIS INVESTMENT SUPPORTS RETENTION OF 76 EXISTING JOBS AND CREATION OF 75 NEW JOBS. IT ALSO SUPPORTS PURCHASE, CONSTRUCTION OR IMPROVEMENT OF 40,003 SQUARE FEET OF COMMERCIAL REAL ESTATE. 773041 432631 AFFORDABLE HOUSING DEVELOPMENT: TOGETHER WITH THE NORTHWEST MINNESOTA HOUSING COOPERATIVE, MMCDC DEVELOPED FIVE SINGLE-FAMILY HOMES AT A TOTAL SALES PRICE OF $982,550 AND MANAGES 254 RENTAL UNITS. MMCDC ALSO MANAGED A COUNTY EDA'S HOUSING VOUCHER PROGRAM. 786597 894999 AFFORDABLE HOUSING LENDING: MMCDC PROVIDED 200 HOUSING LOANS TOTALING $23,138,093, PRIMARILY IN RURAL MINNESOTA. LOANS FINANCED HOME PURCHASE, RENOVATION AND REFINANCE. FIFTY-ONE PERCENT WERE PROVIDED USING THE USDA RURAL DEVELOPMENT SECTION 502 RURAL HOUSING PROGRAM, WHICH ALLOWS 101 PERCENT FINANCING TO HOMEBUYERS AT 115 PERCENT OR LESS OF MEDIAN INCOME WHO ARE PURCHASING MODEST HOMES IN SMALL TOWNS AND RURAL AREAS. 4136466 1 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 53 0 45 1 0 0 0 0 0 0 0 0 X 12 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MN CA X STEVE WIEBOLT 2188473191 119 GRAYSTONE PLAZA STE 100 DETROIT LAKES MN 56501 RON LINDBERG CHAIRMAN 2.00 X X 2500 0 0 JANET GREEN VICE CHAIR 2.00 X X 4500 0 0 GERALD WIGNESS TREASURER 2.00 X X 4000 0 0 KAREN AHMANN SECRETARY 2.00 X X 3750 0 0 KATHY HENRY DIRECTOR 2.00 X 2500 0 0 BREANNA ADAMS DIRECTOR 2.00 0.50 X 3500 0 0 DAVID BURGGRAF DIRECTOR 2.00 X 3250 0 0 PAUL IHLE DIRECTOR 2.00 X 3500 0 0 GEMMA DREES DIRECTOR 2.00 X 3500 0 0 DAN STEVENS DIRECTOR 2.00 0.50 X 3000 1500 0 TERRY STALLMAN DIRECTOR 2.00 X 2000 0 0 LARRY LEPIER DIRECTOR 2.00 X 2000 0 0 JEFF HAUKEBO DIRECTOR 2.00 X 4500 0 0 LORNA LAGUE DIRECTOR 2.00 X 2500 0 0 LESTER LILJEDAHL DIRECTOR 2.00 X 4250 0 0 GARY THIBERT DIRECTOR 2.00 X 4250 0 0 TARA WOLF DIRECTOR 2.00 X 3500 0 0 KEVIN SHIPLEY PRESIDENT 50.00 X 344056 0 26000 KEITH KICKER CHIEF FINANCIAL OFFICER 45.00 X 253000 0 9213 KATHY MISSON VP MORTGAGE LENDING 45.00 X 121820 0 12071 STEVE WIEBOLT VP ADMINISTRATION 45.00 X 133000 0 11502 NICOLE KIRCHNER VP BUSINESS ADMINISTRATION 45.00 X 101000 0 0 JULIA NELMARK DIRECTOR OF NMTC FINANCING 45.00 X 156690 0 0 ARLEN KANGAS CHIEF ECONOMIST 30.00 X 205004 0 21053 1371570 1500 79839 7 0 1 0 COHN REZNICK 500 EAST PRATT STREET SUITE 200 BALTIMORE MD 21202 AUDIT WORK FOR NMTC 287250 CLIFTONLARSONALLEN PO BOX 775472 CHICAGO IL 60677 AUDIT WORK 140641 FRANCIS CONSTRUCTION OF DL INC 25702 MUSKRAT LAKE DRIVE DETROIT LAKES MN 56501 BUILDING CONSTRUCTION 139013 WINTHROP & WEINSTINE PA 225 SOUTH 6TH STREET SUITE 3500 MINNEAPOLIS MN 55402 LEGAL FEES (NMTC) 135326 GRABOW CONSTRUCTION 1900 CLEAR CREEK BLVD DETROIT LAKES MN 56501 BUILDING CONSTRUCTION 129855 5 789342 402545 1191887 NEW MARKET TAX CREDIT 525990 2025002 2025002 INTEREST INC./LOAN 522291 1451234 1451234 RENTAL INCOME 531110 1022176 1022176 LOAN FEES 525990 836584 836584 OTHER PROGRAM SERVICE 531310 476001 476001 5810997 25100 25100 OTHER REVENUE 900099 313757 313757 GAIN FROM SUBSIDIARIES 900003 226230 226230 539987 7567971 6350984 0 25100 133213 133213 676556 506189 151864 18503 1788275 1394855 304006 89414 93184 72684 15841 4659 152889 119254 25991 7644 154513 120520 26267 7726 704 704 53810 53810 167797 127526 38593 1678 31910 30634 1276 83028 69743 11624 1661 26279 20760 4993 526 156081 140473 12486 3122 71765 56695 13635 1435 54614 43145 10377 1092 142878 142878 392761 337774 54987 66694 60024 5336 1334 HOUSING EXPENSES 427495 427495 BROKER EXPENSE 208514 208514 MISCELLANEOUS EXPENSE 136774 109090 25047 2637 PROVISION FOR LOAN LOSS 15000 15000 5034734 4136466 756837 141431 17685583 11116265 423345 184818 29000259 36456340 31036 21104 12022106 5604053 6676156 6418053 7266907 9883171 55841 55604 3880845 4161297 65019972 68296652 1623914 1746459 340695 1693985 5161120 4848728 1888125 1468125 9013854 9757297 X 53825118 57036355 171000 0 2010000 1503000 56006118 58539355 65019972 68296652 2533237 0 X 0 1 X 1 1 1 X 972439 2861174 660685 802269 1191887 6488454 8708686 8645332 8804866 6590913 5810997 38560794 9681125 11506506 9465551 7393182 7002884 45049248 0 695572 2315728 498498 578756 893076 4981630 695572 2315728 498498 578756 893076 4981630 40067618 12625 9732 7661 14423 25100 69541 12625 9732 7661 14423 25100 69541 126876 4576123 802031 526385 539987 6571402 9820626 16092361 10275243 7933990 7567971 51690191 0.77510 0.79360 0.00130 0.00100 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: GAIN ON SALE OF OTTER TAIL AG NMTC - 2014 AMOUNT: $ 2,228,472. DEBT FORGIVENESS - 2014 AMOUNT: $ 1,708,400. MISCELLANEOUS - 2013 AMOUNT: $ 105,957. 2014 AMOUNT: $ 323,433. 2015 AMOUNT: $ 5,093. 2016 AMOUNT: $ 131,795. 2017 AMOUNT: $ 313,757. GAIN/LOSS FROM SUBSIDIARIES - 2013 AMOUNT: $ 20,919. 2014 AMOUNT: $ 315,818. 2015 AMOUNT: $ 796,938. 2016 AMOUNT: $ 394,590. 2017 AMOUNT: $ 226,230. 0 0 0 0 0 0 1 0 1 25872 25872 0 PART II-B, LINE 1: SOME DIRECT CONTACT WITH LEGISLATORS; CONTRACT WITH A CONSULTANT WHO PERFORMS LOBBYING ON BEHALF OF THE NON-PROFIT INDUSTRY; CONTRACT WITH A CONSULTANT WHO WORKED ON A STATE NMTC PROGRAM. 517198 517198 9722885 4736028 4986857 1725940 840707 885233 56083 27318 28765 6418053 PARTNERSHIPS, PROPERTY AND SECURITIES 9883171 F 9883171 INTEREST RECEIVABLE 244645 ASSETS HELD FOR SALE 1354014 LEASES RECEIVABLE 1289966 OTHER RECEIVABLES (DEVELOPER FEES & TAX INCREMENT FINANCING) 1272672 4161297 X PART X, LINE 2: TAX STATUS THE ORGANIZATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND CORRESPONDING STATE TAX CODES. MMCDC IS NOT A PRIVATE FOUNDATION AND CONTRIBUTIONS TO MMCDC QUALIFY AS A CHARITABLE TAX DEDUCTION BY THE CONTRIBUTOR. MMCDC FILES AS A TAX EXEMPT ORGANIZATION. SHOULD THAT STATUS BE CHALLENGED IN THE FUTURE, ALL YEARS SINCE INCEPTION WOULD BE SUBJECT TO REVIEW BY THE IRS. 1 NORTHWEST MINNESOTA HOUSING COOPERATIVE 416 KNEALE AVE S THIEF RIVER FALLS MN 56701 411907376 COOPERATIVE 99200 MHFA FUNDS RECEIVED BY MMCDC FOR FRAZEE BUILDING PROJECTS MANAGED BY MWMN HOUSING COOP DETROIT LAKES COMMUNITY & CULTURAL CENTER 826 SUMMIT AVENUE DETROIT LAKES MN 56501 411970351 501(C)(3) 20000 OPERATING FUND 1 1 PART I, LINE 2: DOCUMENTATION IS MAINTAINED FOR THE USE OF ALL GRANT FUNDS. PROPER REVIEWS ARE PERFORMED. X X X 0 1 0 0 0 0 0 0 0 KEVIN SHIPLEY PRESIDENT 245056 0 75000 0 24000 0 26000 0 0 0 370056 0 0 0 KEITH KICKER CHIEF FINANCIAL OFFICER 185000 0 68000 0 0 0 0 0 9213 0 262213 0 0 0 JULIA NELMARK DIRECTOR OF NMTC FINANCING 126690 0 30000 0 0 0 0 0 0 0 156690 0 0 0 ARLEN KANGAS CHIEF ECONOMIST 105004 0 100000 0 0 0 0 0 21053 0 226057 0 0 0 PART I, LINE 4B IN 2014, THE ORGANIZATION ENTERED INTO A DEFERRED COMPENSATION AGREEMENT TO PAY COMPENSATION TO KEVIN SHIPLEY IN THE AMOUNT OF $26K FOR THE 457(F) PLAN AND $24K FOR THE 457(B) PLAN, TOTALING $50K PER YEAR UNTIL THE EXECUTIVE'S SEPARATION FROM SERVICE. FORM 990, PART VI, SECTION A, LINE 1 THE BOARD OF DIRECTORS HAS AN EXECUTIVE COMMITTEE CONSISTING ENTIRELY OF VOTING MEMBERS OF THE BOARD. DURING THE INTERVALS BETWEEN MEETINGS OF THE BOARD OF DIRECTORS, THE EXECUTIVE COMMITTEE POSSESSES AND MAY EXERCISE ALL THE POWERS OF THE BOARD OF DIRECTORS IN ALL CASES IN WHICH SPECIFIC DIRECTION HAS NOT BEEN GIVEN BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 6 ANY NATURAL PERSON IS ELIGIBLE FOR MEMBERSHIP IN THE CORPORATION IF (1) THEY ARE A RESIDENT OF THE IMPACT AREA, (2) THEY ARE OF THE AGE OF EIGHTEEN YEARS OR OLDER, (3) THEY INDICATE AN INTEREST AND DESIRE IN BECOMING A MEMBER BY SIGNING AND RETURNING TO THE SECRETARY OF THE ORGANIZATION A MEMBERSHIP APPLICATION FORM WHICH SPECIFIES THEIR RESIDENCE, AND (4) THEY CERTIFY ANNUALLY ON A FORM TO BE SENT TO THEIR LAST ADDRESS THAT THEY STILL DESIRE TO MAINTAIN THEIR MEMBERSHIP IN MMCDC. PAYMENT OF A REASONABLE MEMBERSHIP FEE IS REQUIRED AT INCEPTION OF MEMBERSHIP. THERE IS NO DIFFERENCE IN CLASSES OF MEMBERS; ALL MEMBERS ARE EQUIVALENT. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION'S BOARD OF DIRECTORS ARE APPOINTED BY A MAJORITY VOTE OF THE MEMBERS. ADDITIONALLY, ONE OF THESE BOARD MEMBER MUST BE APPROVED BY THE WHITE EARTH RESERVATION TRIBAL COUNCIL. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S MEMBERS MUST APPROVE AMMENDMENTS TO THE ARTICLES OF INCORPORATION AND THE BOARD OF DIRECTORS APPROVE AMMENDMENTS TO THE BYLAWS OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 11B THE BOARD OF DIRECTORS REVIEWED THE FORM 990 BEFORE IT WAS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS, OFFICERS, COMMITTEE MEMBERS AND STAFF ARE REQUIRED TO ATTEST ANNUALLY TO THEIR FAMILIARITY WITH MMCDC'S CONFLICT OF INTEREST POLICY. A CONFLICT OF INTEREST QUESTIONNAIRE IS REQUIRED TO BE COMPLETED ANNUALLY. ANY BUSINESS AND PROFESSIONAL ACTIVITIES IN WHICH THE INDIVIDUAL, OR A FAMILY MEMBER, IS ASSOCIATED WITH IS DISCLOSED. IF ANY CONFLICT OF INTEREST HAS OCCURRED IT IS TO BE NOTED AND DESCRIBED ON THE QUESTIONNAIRE. MMCDC'S VP/ADMINISTRATION ASSURES QUESTIONNAIRES ARE COMPLETED BY ALL DIRECTORS, OFFICERS, COMMITTEE MEMBERS AND STAFF. THE PRESIDENT OF MMCDC MAKES THE DETERMINATION OF WHETHER A CONFLICT EXISTS, WITH INPUT FROM OTHER MMCDC MANAGEMENT STAFF. IF A CONFLICT EXISTS, RESTRICTIONS MAY INCLUDE MAKING SURE THAT THAT INDIVIDUAL, IF A BOARD MEMBER, ABSTAINS ON VOTES WHICH CONCERN THE CONFLICT. INDIVIDUALS MAY ALSO BE ASKED TO NOT BE PRESENT DURING CERTAIN DISCUSSIONS OR PRESENTATIONS. FAILURE TO DISCLOSE CONFLICTS IS GROUNDS FOR TERMINATION OF A DIRECTOR OR COMMITTEE MEMBER, AND DISCIPLINE OR TERMINATION OF A STAFF PERSON. FORM 990, PART VI, SECTION B, LINE 15 THE PERSONNEL COMMITTEE, COMPRISED OF SEVERAL BOARD MEMBERS, DETERMINES COMPENSATION FOR THE PRESIDENT. THE PRESIDENT, WITH REVIEW BY THE PERSONNEL COMMITTEE, DETERMINES COMPENSATION FOR OTHER OFFICERS AND STAFF. THE PROCESS WAS LAST PERFORMED IN 2017. THE ORGANIZATION HAS REVIEWED DATA FOR SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS WHEN DETERMINING COMPENSATION LEVELS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. ZEPHYR ESTATES 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 416164697 RESIDENTIAL RENTAL MN 32971 185526 N/A ELEVENTH AVENUE APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411731046 RESIDENTIAL RENTAL MN 112262 338728 N/A BARBARA AVENUE APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411797905 RESIDENTIAL RENTAL MN 77785 184119 N/A EASTSIDE PARTNERS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 450435687 RESIDENTIAL RENTAL MN 60002 104625 N/A MEADOW RUN APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411825316 RESIDENTIAL RENTAL MN 79074 204126 N/A WHITE EARTH INVESTMENT INITIATIVE 407 EAST MAIN STREET OGEMA MN 56569 010732253 COMMUNITY, ECONOMIC, AND HOUSING DEVELOPMENT MN 501(C)(3) LINE 7 N/A 0 MMCDC BLACKDUCK LP 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 204703096 RESIDENTIAL RENTAL MN BLACKDUCK TOWNHOMES LLC RELATED -10 172 0 1 0.00010 GRAYSTONE ANNEX LP 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 412012930 RESIDENTIAL RENTAL MN N/A RELATED -6 160 0 1 0.00010 CDC BANCSHARES 516 MAIN STREET OGEMA MN 56569 412004916 BANK HOLDING COMPANY MN N/A C 348427 12776301 0.61330 1 COMMUNITY DEVELOPMENT BANK FSB 516 MAIN STREET OGEMA MN 56569 410455130 SAVINGS BANK MN CDC BANCSHARES C 2704337 105794511 0.61330 1 COMMUNITY DEVELOPMENT INSURANCE SERVICES LLC 516 MAIN STREET OGEMA MN 56569 205313010 INSURANCE AGENCY MN CDC BANCSHARES C 167946 216272 0.61330 1 BLACKDUCK TOWNHOMES LLC 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 262177359 RESIDENTIAL RENTAL MN N/A C -10 87387 1.00000 0 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 COMMUNITY DEVELOPMENT BANK FSB A 38400 SIGNED CONTRACT