Laserfiche WebLink
<br />interest rate. This is one of the programs staff refers businesses to that are looking for help. It is <br />only for manufacturers, not retailers, and an employment aspect for job growth with good paying <br />salaries is required because the loan is considered a subsidy if lower than market rate. <br /> <br />Councilmember Dehen asked why this fund only applies to manufacturers. <br /> <br />Economic Development Coordinator Sullivan stated that is a guideline set forth by the Council. <br /> <br />Mayor Gamec explained the Council looked at the volume of jobs that would be created with a <br />retail business versus manufacturing and found it would be better with manufacturing and bring <br />in larger tax increment. He noted a small retail business may be a one-person operation. <br /> <br />Councilmember Dehen asked what the policy rationale is for the City doing the loan as opposed <br />to telling the business to go to the bank <br /> <br />Mayor Gamec stated he serves on a bank board and there are other loans available, such as <br />through the Small Business Administration, but then the businesses may move from Ramsey and <br />go to another city. <br /> <br />Councilmember Elvig explained that the Economic Development Authority (EDA) recognizes <br />that new business is some of the most expensive business to attract and sometimes requires full <br />subsidy. Part of the initiative of the EDA is to grow the businesses that are already here. He <br />explained how this program can work to assist a business in buying a needed piece of equipment <br />and stated he used a program from Anoka County for his business. The program under <br />consideration has little or no expense to Ramsey because it is a revolving fund. <br /> <br />Economic Development Coordinator Sullivan explained the fund continues to grow as loans are <br />made and payments come in. <br /> <br />Councilmember Dehen asked what happens if a business defaults. <br /> <br />Economic Development Coordinator Sullivan explained that under this situation the loan will <br />utilize the machinery as collateral. If they default, the City will get the machinery. <br /> <br />Motion by Councilmember Jeffrey, seconded by Councilmember Olson, to approve the loan <br />request between Clear Choice Countertops, Inc. and the City of Ramsey, to obtain a personal <br />guarantee from Mathew Semler and to authorize the Mayor to execute the required loan <br />documents. <br /> <br />Motion carried. V oting Yes: Mayor Gamec, Councilmembers Jeffrey, Olson, Elvig, Dehen, and <br />Look. Voting No: None. Absent: Councilmember Strommen. <br /> <br />Case #6: <br /> <br />Adopt Ordinance to Amend City Code Section 9.15 Towers; Case of the City <br />of Ramsey <br /> <br />City Council / August 12, 2008 <br />Page 16 of26 <br />