2016-11-08T08:37:51-06:00 2015-12-31 410746749 CLIFTONLARSONALLEN LLP 818 SECOND ST SO SUITE 320 WAITE PARK MN 56387 990 2015-01-01 410972298 MIDWEST MINNESOTA COMMUNITY DEVELOPMENT CORPORATION MIDW 2188473191 119 GRAYSTONE PLAZA NO 100 DETROIT LAKES MN 565013034 KEVIN SHIPLEY PRESIDENT 2188473191 2016-10-24 1 KRISTIN L SCHMIDT P01487323 3202035500 2016-10-19 2015 2017-02-10 21:41:12Z KEVIN SHIPLEY 119 GRAYSTONE PLAZA NO 100 DETROIT LAKES MN 565013034 10275243 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 2861174 660685 8645332 8804866 9732 7661 4576123 802031 16092361 10275243 133111 106622 0 0 2474548 2752537 0 0 145723 2328428 2561314 4936087 5420473 11156274 4854770 58521119 62262919 10688424 9575454 47832695 52687465 THE MISSION OF MMCDC IS TO ASSIST COMMUNITIES AND INDIVIDUALS ACHIEVE A BETTER QUALITY OF LIFE. 0 0 2592327 106622 7763796 BUSINESS DEVELOPMENT: INCLUDING NEW MARKETS TAX CREDIT LENDING, MMCDC PROVIDED $21,365,651 IN CAPITAL FOR BUSINESS OPERATIONS AND COMMERCIAL REAL ESTATE IN 2015. THIS INVESTMENT SUPPORTED RETENTION OF 393 EXISTING JOBS AND CREATION OF 18 NEW JOBS. IT ALSO SUPPORTED CONSTRUCTION OR IMPROVEMENT OF 138,001 SQUARE FEET OF COMMERCIAL REAL ESTATE. 1092012 878863 AFFORDABLE HOUSING DEVELOPMENT: TOGETHER WITH THE NORTHWEST MINNESOTA HOUSING COOPERATIVE, MMCDC DEVELOPED ONE SINGLE-FAMILY HOME AT A SALE PRICE OF $225,000 AND MANAGED AN ADDITIONAL 275 RENTAL UNITS. MMCDC ALSO PROVIDED CONTRACT SERVICES TO THE COUNTY HOUSING AND REDEVELOPMENT AUTHORITY. 736621 964238 AFFORDABLE HOUSING LENDING: MMCDC PROVIDED 186 HOUSING LOANS TOTALING $25,376,040, PRIMARILY IN RURAL MINNESOTA. LOANS FINANCED HOME PURCHASE, RENOVATION AND REFINANCE. FIFTY-THREE PERCENT WERE PROVIDED TO FIRST-TIME HOMEBUYERS; NEARLY ALL UTILIZED THE USDA RURAL DEVELOPMENT SECTION 502 RURAL HOUSING PROGRAM, WHICH ALLOWS 100 PERCENT FINANCING TO HOMEBUYERS AT 115 PERCENT OR LESS OF MEDIAN INCOME WHO ARE PURCHASING MODEST HOMES IN SMALL TOWNS. 4420960 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 1 0 0 1 44 0 45 1 0 0 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 1 0 MN CA X STEVE WIEBOLT 2188473191 119 GRAYSTONE PLAZA STE 100 DETROIT LAKES MN 56502 RON LINDBERG CHAIRMAN 2.00 X X 3850 0 0 JANET GREEN VICE CHAIR 2.00 X X 4750 0 0 GERALD WIGNESS TREASURER 2.00 X X 5250 0 0 KAREN AHMANN SECRETARY 2.00 X X 4750 0 0 KATHY HENRY DIRECTOR 2.00 X 9200 0 0 JOAN LAVOY DIRECTOR 2.00 0.50 X 3000 750 0 TERRY STALLMAN DIRECTOR 2.00 X 6750 0 0 LARRY LEPIER DIRECTOR 2.00 X 3750 0 0 GEMMA DREES DIRECTOR 2.00 X 3850 0 0 DAN STEVENS DIRECTOR 2.00 0.50 X 3000 1250 0 CHARLENE OLSON DIRECTOR 2.00 X 7450 0 0 DALE MACKLANBERG DIRECTOR 2.00 X 5850 0 0 KEVIN SHIPLEY PRESIDENT 50.00 X 300000 0 50000 KEITH KICKER CHIEF FINANCIAL OFFICER 45.00 X 229182 0 8366 STEVE WIEBOLT VP ADMINISTRATION 45.00 X 121660 0 12094 JULIA NELMARK DIRECTOR OF NMTC FINANCING 45.00 X 147130 0 0 ARLEN KANGAS CHIEF ECONOMIST 30.00 X 272996 0 15719 1132418 2000 86179 5 0 1 0 COHN REZNICK 500 EAST PRATT STREET SUITE 200 BALTIMORE MD 21202 AUDIT WORK FOR NMTC 422600 CLIFTONLARSENALLEN 818 2ND STREET SOUTH SUITE 320 WAITE PARK MN 56387 AUDIT WORK 166099 2 659935 750 660685 NEW MARKET TAX CREDIT INCOME 525990 4755359 4755359 RENTAL INCOME 531110 1403437 1403437 INTEREST INC./LOAN 522291 1245710 1245710 LOAN FEES 525990 893677 893677 OTHER PROGRAM SERVICE REVENUE 531310 506683 506683 8804866 7661 7661 GAIN FROM SUBSIDIARIES 900003 796938 796938 OTHER REVENUE 900099 5093 5093 802031 10275243 9606897 0 7661 106622 106622 648998 407531 223967 17500 1742935 1359489 296299 87147 84836 66172 14422 4242 124665 97239 21193 6233 151103 117860 25688 7555 10561 10561 53274 53274 224658 168494 51671 4493 20171 19364 807 66646 55317 9330 1999 37742 29816 6794 1132 251605 208832 35225 7548 67424 53265 12136 2023 33585 26532 6045 1008 215554 215554 427993 368074 59919 65016 53964 9102 1950 PROVISION FOR LOAN LOSS 411853 411853 HOUSING EXPENSES 327537 327537 BROKER EXPENSE 206752 206752 NEW MARKET TAX CREDIT F 44510 44510 96433 76183 17357 2893 5420473 4420960 853790 145723 13133707 15848162 295375 608798 26998820 27157570 58745 49397 13973361 5349789 8473917 8623572 5517225 5879525 66673 57044 3976657 4038851 58521119 62262919 1798654 1795590 426821 383415 6014824 5484824 2448125 1911625 10688424 9575454 X 46403695 51006465 369000 171000 1060000 1510000 47832695 52687465 58521119 62262919 4854770 0 X 0 1 X 1 1 1 X 1274002 1136844 972439 2861174 660685 6905144 7803867 9271444 8708686 8645332 8804866 43234195 9077869 10408288 9681125 11506506 9465551 50139339 0 927647 617645 695572 2315728 498498 5055090 927647 617645 695572 2315728 498498 5055090 45084249 21384 12923 12625 9732 7661 64325 21384 12923 12625 9732 7661 64325 814672 583672 126876 4576123 802031 6903374 9913925 11004883 9820626 16092361 10275243 57107038 0.78950 0.87400 0.00110 0.00180 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 - 2011 AMOUNT: $ 474,198. 2012 AMOUNT: $ 245,104. 2013 AMOUNT: $ 105,957. 2014 AMOUNT: $ 323,433. 2015 AMOUNT: $ 5,093. GAIN/LOSS FROM SUBSIDIARIES - 2011 AMOUNT: $ 340,474. 2012 AMOUNT: $ 338,568. 2013 AMOUNT: $ 20,919. 2014 AMOUNT: $ 315,818. 2015 AMOUNT: $ 796,938. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 0 1 27000 27000 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. 501686 501686 11508452 4570166 6938286 1907140 757352 1149788 56083 22271 33812 8623572 PARTNERSHIPS, PROPERTY AND SECURITIES 5879525 F 5879525 INTEREST RECEIVABLE 141617 ASSETS HELD FOR SALE 904390 LEASES RECEIVABLE 1477586 OTHER RECEIVABLES (DEVELOPER FEES & TAX INCREMENT FINANCING) 1515258 4038851 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. THE ORGANIZATION IS NOT A PRIVATE FOUNDATION AND CONTRIBUTIONS TO THE ORGANIZATION QUALIFY AS A CHARITABLE TAX DEDUCTION BY THE CONTRIBUTOR. THE PARTNERSHIP TO SUPPLY AFFORDABLE HOUSING, ELEVENTH AVENUE APARTMENTS, BARBARA AVENUE APARTMENTS, EASTSIDE APARTMENTS, MEADOW RUN APARTMENTS AND MAHNOMEN BAKED CHIPS LLC'S INCOME OR LOSS IS REQUIRED TO BE REPORTED BY MMCDC ON ITS FEDERAL TAX RETURN. 1 WHITE EARTH INVESTMENT INITIATIVE 407 EAST MAIN STREET OGEMA MN 56569 010732253 501(C)(3) 65000 OPERATING FUND DETROIT LAKES COMMUNITY & CULTURAL CENTER 826 SUMMIT AVENUE DETROIT LAKES MN 56501 411970351 501(C)(3) 15000 OPERATING FUND NORTHWEST MINNESOTA FOUNDATION 826 SUMMIT AVENUE DETROIT LAKES MN 56501 411556013 501(C)(3) 10000 OPERATING FUND FOR WE EDUCATION MANNA FOOD CO-OP 900 HWY 34 EAST SUITE A 100 DETROIT LAKES MN 56501 475311294 CORPORATION 5000 START-UP FOR OPERATING FUNDS 4 0 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 225000 0 75000 0 0 0 50000 0 0 0 350000 0 0 0 KEITH KICKER CHIEF FINANCIAL OFFICER 157282 0 71900 0 0 0 0 0 8366 0 237548 0 0 0 ARLEN KANGAS CHIEF ECONOMIST 97996 0 175000 0 0 0 0 0 15719 0 288715 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 $50,000 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 11 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 2015. 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. PARTNERSHIP TO SUPPLY AFFORDABLE HOUSING 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411877604 RENTAL MANAGEMENT MN 137560 0 N/A ELEVENTH AVENUE APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411731046 RESIDENTIAL RENTAL MN 108339 330401 N/A MAHNOMEN BAKED CHIPS LLC 850 EAST ADAMS AVENUE MAHNOMEN MN 56557 260646172 MANUFACTURING MN 680 2534230 N/A BARBARA AVENUE APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411797905 RESIDENTIAL RENTAL MN 75518 181570 N/A EASTSIDE PARTNERS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 450435687 RESIDENTIAL RENTAL MN 60858 119781 N/A MEADOW RUN APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411825316 RESIDENTIAL RENTAL MN 78394 223926 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 -9 470568 0 1 0.00010 GRAYSTONE ANNEX LP 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 412012930 RESIDENTIAL RENTAL MN N/A RELATED -6 78113 0 1 0.00010 CDC BANCSHARES 516 MAIN STREET OGEMA MN 56569 412004916 BANK HOLDING COMPANY MN N/A C 269590 5204800 0.61330 1 COMMUNITY DEVELOPMENT BANK FSB 516 MAIN STREET OGEMA MN 56569 410455130 SAVINGS BANK MN CDC BANCSHARES C 1777055 44664508 0.61330 1 COMMUNITY DEVELOPMENT INSURANCE SERVICES LLC 516 MAIN STREET OGEMA MN 56569 205313010 INSURANCE AGENCY MN CDC BANCSHARES C 78409 13881 0.61330 1 BLACKDUCK TOWNHOMES LLC 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 262177359 RESIDENTIAL RENTAL MN N/A C 5000 77408 1.00000 0 1 1 0 1 0 0 0 0 0 1 0 1 0 0 0 0 1 1 0 WHITE EARTH INVESTMENT INITATIVE B 65000 FAIR MARKET VALUE