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Member LeTourneau stated the City has an individual interested in doing something with this <br />vacant space and offering an amenity to the community. He indicated the father and daughter <br />would carry all the risk and the City would have collateral and personal guarantees that will <br />support it if the business fails. <br />Motion by Member Skaff, seconded by Member Steffen, to direct staff to continue working with <br />the applicant for the Revolving Loan Fund application process. <br />Further discussion: Member Wise suggested the financing be limited to $20,000. <br />Motion carried. Voting Yes: Chairperson Riley, Members Skaff, Steffan, LeTourneau, <br />McGlone, Williams, and Wise. Voting No: None. Absent: None. <br />4.04: Business Retention & Expansion Program Introduction, Continued <br />Management Analyst Brama presented an update on the City's business retention and expansion <br />program that was introduced at the July and August EDA meetings by Karen Skepper from <br />Anoka County. <br />City Administrator Ulrich advised that the City Council made a request to the County HRA to <br />use any undesignated levy to support the City's HRA activities and the County HRA has a fund <br />balance of approximately $500,000, which could be used for business retention and expansion. <br />He noted this would not be an ongoing source of money and would be one -time only money. <br />Member McGlone expressed concern that the County has taxed the City's residents for HRA <br />purposes then the County says it wants to do an EDA program that they forgot about. He stated <br />people were taxed for that and he does not want to see these funds siphoned off for anything <br />other than HRA. He added he was not in favor of spending money on economic gardening if it <br />has to do with this pot of money. <br />Chairperson Riley stated there were many items listed that the City should be doing anyway as <br />an EDA. He asked if there were materials the City could ask for and use even if it did not <br />participate with the County. <br />Management Analyst Brama stated the items listed were developed by staff and the City does not <br />need to do through the County. <br />Member LeTourneau agreed with Member McGlone's concerns but felt this was a unique <br />opportunity that the City should consider that would offer real value to businesses in the initial <br />stages of development that might be struggling and that is was economic gardening is about. He <br />added this is a great way to think more regionally about how to develop the City's economic <br />engine and this is an HRA/EDA function for the County. He urged the EDA to be serious about <br />considering this and added this concept was brought forward to the County Commissioners from <br />a pilot program in Hennepin County and it received strong support. <br />Economic Development Authority /September 13, 2012 <br />Page 5 of 9 <br />