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I I '1 i I I i I I I I I I I I I I I I the EDA~to formally approve these documents as the guidelines for businesses to receive assistan¢~ from the City. He stated there are "blanks" for the EDA to fill in on the Revolving Loan Fund application documents. He stated, following review and comment by the .I~DA, he will "ship" the documents off to banks and to the Anoka County Development Partnership to find out if they can take the basic premises and work with it. He stated, he would not like to be the "loan guy" but that the City would retain the ultimate yeah or n~3y because these are public funds. The EDA will be involved from the standpoint of buildiag and zoning, but hopefully removed from the finance review facet of it. He suggest~xl using 10% of the total project as a maximum loan amount as opposed to setting a dollar amount. Mayor Ollbertson agreed with the percent versus the dollar amount. Mr. Sc ~hr0eder stated that if the bank suggests changes, he will bring those back to the EDA. Councilmember Hardin suggested discussion about what the EDA wants to do first. If we have a .lender, we could put a package together. We may want to set up two different programS; and say this is the extent we want to participate in this program. Program #2 may include rehabilitation for current businesses. Mr. Schroeder stated that this package is basically business or building; not machinery or debt consolidation, etc. Councilmember Hardin felt the City would want to facilitate new businesses, expand present businesses and rehabilitate current businesses. Mayor Oilbertson felt that equipment financing should not be a pan of it. Mr. Schroeder stat~ this is geared more for the smaller business. Councilmember Zimmcrman felt that we need to have it geared more toward the smaller business. Couneilmember Hardin inquired if operating capital should be provided. Councilmember Zimmerman felt it should not be provided. Mr. Schroeder reiterated that the EDA is saying no to money for machinery, loan consolidation and equity to which the members stated that was correct. Mr. Schroeder then inquired about the maximum loan amount. Councflm~mber Hardin stated there has to be flexibility. You may want to use everything available to get a business in Ramsey. He suggested writing "generally our guideline is.. Mr. Schroeder stated that he is proposing 10 percent equity. Councilml~mber Hardin felt that was low; however, in viewing different situations, 10 percent is :probably adequate. He suggested __w~?ing "generally five to ten percent owner equity and five to ten percent City participation. He inquired what kind of remm should the EDA expect; or not. Economic Development Authority/September 30, 1993 Page 2 of 4