City Council Meeting Date: November 4, 2025
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Southern Minnesota Initiative Foundation (SMIF) Presentation.
Body
Action Requested:
No action.
Summary Report:
The Southern Minnesota Initiative Foundation (SMIF) requested an opportunity to provide a short presentation regarding their work and how they are having a positive impact on Northfield and Rice County. Aaron Johnson, Philanthropy Director of SMIF, will be presenting.
Attached is a letter to the City from SMIF (attachment 1), the Rice County fact sheet (attachment 2), the 2024 SMIF Impact Report (attachment 3), a SMIF free will one page (attachment 4), and the Acres for Good Farmers brochure (attachment 5).
Alternative Options:
SMIF has presented annually and has left it to the City to pursue any follow up or funding. Council is not being asked at the meeting to entertain discussion on a contribution. If there is interest by the City Council to consider a contribution for 2026 or in future it could be commented on at the meeting or through separate communication to the City Administrator.
The Southern Minnesota Initiative Foundation (SMIF) is a regional nonprofit designed to help communities access resources, capital, and expertise for business development, childcare, and workforce initiatives. Its mission aligns with many of the same public purposes cities pursue-supporting local economic vitality and community well-being. At the same time, because SMIF serves a broad multi-county area, the scope of its programs extends beyond any single community, and the benefits to Northfield should be clearly defined to ensure local value in relation to the many nonprofits already providing important services within the city.
Should the City Council consider to provide new funding, it is important to weigh SMIF’s regional reach against the strong local network of nonprofits already delivering services in Northfield. Council may wish to consider whether support for SMIF would produce measurable, Northfield-specific benefits that justify City participation, and whether those outcomes could be achieved more effectively through direct partnerships with local organizations. Any funding approach should be structured as a contract for services with clear deliverables, rather than a general contribution, to ensure accountability and alignment with the City’s public purpose.
Financial Impacts:
SMIF in the letter posed a question related to whether the City might provide any financial support in 2026. Please note that Northfield has not provided funding in the past. Additionally, the 2026 is in final phases and if there is interest to add funding in the future staff would request. Additionally, there would need to be additional exploration of legal considerations.
Minnesota cities cannot give public funds away as charitable donations. To legally provide funding to an organization like SMIF, the expenditure must serve a clear public purpose and be tied to the City’s authorized functions-most appropriately through a contract for services, typically managed through the Economic Development Authority. Such a contract would need to specify deliverables that directly benefit Northfield, such as a defined amount of business lending within the city, technical assistance for local entrepreneurs, or childcare initiatives that increase available slots for Northfield families. This ensures transparency, accountability, and legal compliance while still allowing the City to benefit from SMIF’s expertise and resources.
Tentative Timelines:
Presentation at the meeting. No further action.