2014-09-05T15:51:46-05:00 2013-12-31 410746749 CLIFTONLARSONALLEN LLP 818 SECOND ST SO SUITE 320 WAITE PARK MN 56387 990 2013-01-01 410972298 MIDWEST MINNESOTA COMMUNITY DEVELOPMENT CORPORATION MIDW 2188473191 119 GRAYSTONE PLAZA NO 100 DETROIT LAKES MN 565013034 KEVIN SHIPLEY PRESIDENT 2188473191 2014-08-25 1 KRISTIN L SCHMIDT P01487323 3202035500 2014-08-25 2013 2015-11-30 17:44:51Z KEVIN SHIPLEY 119 GRAYSTONE PLAZA NO 100 DETROIT LAKES MN 565013034 9829374 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 23 12 0 0 1136844 972439 9271444 8708686 12923 -748 583672 126876 11004883 9807253 146258 231735 0 0 2391562 2877838 0 0 208318 6516551 2860563 9054371 5970136 1950512 3837117 57409185 61106628 24569881 24430207 32839304 36676421 THE MISSION OF MMCDC IS TO ASSIST COMMUNITIES AND INDIVIDUALS ACHIEVE A BETTER QUALITY OF LIFE. 0 0 3656466 231735 7320719 BUSINESS DEVELOPMENT: INCLUDING NEW MARKETS TAX CREDIT LENDING, MMCDC PROVIDED $68,784,366 MILLION IN CAPITAL FOR BUSINESS OPERATIONS AND COMMERCIAL REAL ESTATE IN 2013. THIS INVESTMENT SUPPORTED RETENTION OF 1,808 EXISTING JOBS AND CREATION OF 178 NEW JOBS. IT ALSO SUPPORTED CONSTRUCTION OR IMPROVEMENT OF 157,510 SQUARE FEET OF COMMERCIAL REAL ESTATE. 814928 1164017 AFFORDABLE MORTGAGE LENDING: MMCDC PROVIDED 261 HOUSING LOANS TOTALING $32,853,078 THROUGHOUT RURAL MINNESOTA. LOANS FINANCED HOME PURCHASE AND HOME REFINANCE. FIFTY-FIVE PERCENT WERE PROVIDED UTILIZING 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. 616404 350826 AFFORDABLE HOUSING DEVELOPMENT: TOGETHER WITH THE NORTHWEST MINNESOTA HOUSING COOPERATIVE, MMCDC DEVELOPED THREE AFFORDABLE SINGLE-FAMILY HOMES AT A TOTAL SALE PRICE OF $630,580. ALL OF THESE HOMES WERE PURCHASED BY MODERATE-INCOME BUYERS, HELPING MEET THE DEMAND FOR WORKFORCE HOUSING IN SMALL, RURAL COMMUNITIES. 5087798 1 1 0 0 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 51 0 23 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 1 MN X STEVE WIEBOLT 2188473191 119 GRAYSTONE PLAZA STE 100 DETROIT LAKES MN 56502 KATHY HENRY SECRETARY 2.00 X X 7650 0 0 CHARLENE OLSON TREASURER 2.00 X X 4500 0 0 TERRY STALLMAN CHAIRMAN 2.00 X X 8400 0 0 KAREN AHMANN DIRECTOR 2.00 X X 3500 0 0 DALE MACKLANBERG VICE CHAIR 2.00 1.00 X X 3000 7900 0 JOAN LAVOY DIRECTOR 2.00 0.50 X 2500 1000 0 RON LINDBERG DIRECTOR 2.00 X 3100 0 0 LARRY LEPIER DIRECTOR 2.00 X 2250 0 0 GEMMA DREES DIRECTOR 2.00 X 2750 0 0 DAN STEVENS DIRECTOR 2.00 0.50 X 3350 1000 0 GERALD WIGNESS DIRECTOR 2.00 X 4850 0 0 JANET GREEN DIRECTOR 2.00 X 6650 0 0 ARLEN KANGAS PRESIDENT 50.00 X X 366085 0 58714 KEITH KICKER CHIEF FINANCIAL OFFICER 45.00 X 203120 0 6584 KEVIN SHIPLEY SENIOR VICE PRESIDENT 45.00 5.00 X 264266 0 42484 STEVE WIEBOLT VP ADMINISTRATION 45.00 X 108121 0 11024 JULIA NELMARK DIRECTOR OF NMTC FINANCING 45.00 X 124120 0 11588 1118212 9900 130394 5 0 1 0 COHN REZNICK SUITE 200 500 EAST PRATT STREET BALTIMORE MD 212023177 AUDIT WORK FOR NMTC 347365 PROBUILD OF THIEF RIVER FALLS 1301 3RD STREET WEST THEIF RIVER FALLS MN 56701 BUILDING 172857 CLIFTONLARSENALLEN PO BOX 1067 ST CLOUD MN 563021067 AUDIT WORK 138609 FRANCIS CONSTRUCTION OF DL INC PO BOX 1666 DEROIT LAKES MN 56502 BUILDING 100840 4 954939 17500 972439 NEW MARKET TAX CREDIT 525990 4826306 4826306 INTEREST INC./LOAN 522291 1374026 1374026 LOAN FEES 525990 1134501 1134501 RENTAL INCOME 531110 914909 914909 OTHER PROGRAM SERVICE 531310 458944 458944 8708686 12625 12625 8748 22121 -13373 -13373 -13373 MISCELLANEOUS 900099 105957 105957 GAIN FROM SUBSIDIARIES 900003 20919 20919 126876 9807253 8835562 0 -748 231735 231735 687003 422417 179626 84960 1852506 1463480 296401 92625 66178 52281 10588 3309 137343 108501 21975 6867 134808 106499 21569 6740 2358 2358 37085 37085 64614 48461 14861 1292 36921 35075 1846 62465 56843 4373 1249 41174 36234 4117 823 219274 197347 17542 4385 58935 51862 5894 1179 33536 29511 3354 671 700778 700778 464784 432249 32535 59532 53578 4763 1191 HOUSING EXPENSES 460873 460873 PROVISION FOR LOAN LOSS 264109 264109 0 BROKER EXPENSE 187809 187809 NEW MARKET TAX CREDIT F 14981 14981 151335 133175 15133 3027 5970136 5087798 674020 208318 12116315 13709035 343001 379149 26239413 28545670 11084 36701 13381765 4535119 9173640 8846646 5246638 5191911 145062 105553 4134032 4291963 57409185 61106628 1506619 8591610 549969 473702 10796553 3529145 11716740 11835750 24569881 24430207 X 32295304 35707421 369000 369000 175000 600000 32839304 36676421 57409185 61106628 3837117 0 X 0 1 X 1 1 1 X 2181777 1563567 1274002 1136844 972439 7128629 3779773 5050753 7803867 9271444 8708686 34614523 5961550 6614320 9077869 10408288 9681125 41743152 0 0 0 41743152 23547 39686 21384 12923 12625 110165 23547 39686 21384 12923 12625 110165 -788206 619863 814672 583672 126876 1356877 5196891 7273869 9913925 11004883 9820626 43210194 0.96600 0.95510 0.00250 0.01200 X SCHEDULE A, PART II, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS - 2009 AMOUNT: $ 232,294. 2010 AMOUNT: $ 211,693. 2011 AMOUNT: $ 474,198. 2012 AMOUNT: $ 245,104. 2013 AMOUNT: $ 105,957. DEBT RECOVERIES - 2009 AMOUNT: $ 217,358. GAIN/LOSS FROM SUBSIDIARIES - 2009 AMOUNT: $ -1,237,858. 2010 AMOUNT: $ 408,170. 2011 AMOUNT: $ 340,474. 2012 AMOUNT: $ 338,568. 2013 AMOUNT: $ 20,919. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 501686 501686 10977917 3865361 7112556 1862969 655958 1207011 39193 13800 25393 8846646 PARTNERSHIPS, PROPERTY AND SECURITIES 5191911 F 5191911 INTEREST RECEIVABLE 216671 ASSETS HELD FOR SALE 807490 LEASES RECEIVABLE 1665204 OTHER RECEIVABLES (DEVELOPER FEES & TAX INCREMENT FINANCING) 1602598 4291963 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 ORGANIZATION'S 2010-2012 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. THE ORGANIZATION 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. 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) 173500 REDUCE DEBT ITOW VETERANS MUSEUM 805 WEST MAIN STREET PERHAM MN 56573 411875118 501(C)(3) 34000 DONATION TO SUPPORT THE COMMUNITY MUSEUM 4 0 PART I, LINE 2: THE ORGANIZATION IS INVOLVED TO THE EXTENT NECESSARY TO DETERMINE THE USE OF ANY GRANT FUNDS. X X 0 1 0 0 0 0 0 0 0 ARLEN KANGAS PRESIDENT 258500 0 100000 0 7585 0 50000 0 8714 0 424799 0 0 0 KEITH KICKER CHIEF FINANCIAL OFFICER 147120 0 56000 0 0 0 0 0 6584 0 209704 0 0 0 KEVIN SHIPLEY SENIOR VICE PRESIDENT 200000 0 56000 0 8266 0 0 42484 0 0 264266 42484 0 0 PART I, LINE 4B THE ORGANIZATION HAS ENTERED INTO A DEFERRED COMPENSATION AGREEMENT TO PAY COMPENSATION TO ARLEN KANGAS IN THE AMOUNT OF $50,000 PER YEAR FOR FIVE YEARS STARTING ON DECEMBER 31, 2005 OR UPON RETIREMENT, WHICHEVER IS LATER. FOR EACH ADDITIONAL YEAR OF SERVICE, $50,000 PER YEAR WILL BE PAID. KEVIN SHIPLEY'S DEFERRED COMPENSATION FROM THE COMMUNITY DEVELOPMENT BANK WAS CALCULATED AS DETERMINED BY THEIR ESTABLISHED DEFERRED COMPENSATION PLAN. 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 2013. 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 292369 16265 N/A ELEVENTH AVENUE APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411731046 RESIDENTIAL RENTAL MN 104526 323945 N/A MAHNOMEN BAKED CHIPS LLC 850 EAST ADAMS AVENUE MAHNOMEN MN 56557 260646172 MANUFACTURING MN 164 2752123 N/A BARBARA AVENUE APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411797905 RESIDENTIAL RENTAL MN 73154 197296 N/A EASTSIDE PARTNERS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 450435687 RESIDENTIAL RENTAL MN 55413 122914 N/A MEADOW RUN APARTMENTS 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 411825316 RESIDENTIAL RENTAL MN 81972 249991 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 455771 0 1 0.00010 GRAYSTONE ANNEX LP 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 412012930 RESIDENTIAL RENTAL MN N/A RELATED -9 68710 0 1 0.00010 BLACKDUCK TOWNHOMES LLC 119 GRAYSTONE PLAZA DETROIT LAKES MN 56501 262177359 RESIDENTIAL RENTAL MN N/A RELATED -9 67426 0 1 1.00000 CDC BANCSHARES 516 MAIN STREET OGEMA MN 56569 412004916 BANK HOLDING COMPANY MN N/A C 240238 4764208 0.61330 1 COMMUNITY DEVELOPMENT BANK FSB 516 MAIN STREET OGEMA MN 56569 410455130 SAVINGS BANK MN CDC BANCSHARES C 2399675 44959462 0.61330 1 COMMUNITY DEVELOPMENT INSURANCE SERVICES LLC 516 MAIN STREET OGEMA MN 56569 205313010 INSURANCE AGENCY MN CDC BANCSHARES C 62749 9342 0.61330 1 1 1 0 1 0 1 0 0 0 1 0 1 0 0 0 1 1 1 0 WHITE EARTH INVESTMENT INITATIVE B 189620 FAIR MARKET VALUE