Minutes - Council - 11/13/2012 - Laserfiche WebLink

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won the election by campaigning that the City should be out of the development business. Councilmember McGlone stated he worked to create TIF District #14 solely for the residents who elected him but things appear to be changing so he can no longer support keeping that role. Councilmember Wise stated he does not support decertifying this TIF District because it puts Ramsey back on an "uneven playing field" with other communities. He noted The COR was encumbered with a massive amount of bureaucracy and TIF has allowed Ramsey to resolve those issues and attract businesses. Councilmember Wise noted the City has used TIF to make capital improvements /infrastructure that otherwise would not be financially feasible in the private sector. He felt if Ramsey did not have TIF to offer, development would go elsewhere. In addition, Armstrong Boulevard and TIF will attract a big box business to The COR. Councilmember Wise stated he would not encumber a future Council by making this decision tonight. Councilmember Elvig stated he would like to leave the election behind but agrees the overpass is a major issue, an issue of safety and convenience, that the Council needs to stick to. He noted the City's cost will be nearly $30 million and the overpass will either be paid from TIF or be spread to all of the residents. He would like those costs paid by the TIF District so the people who benefit pay for it. Councilmember Elvig stated the use of TIF and the City's role needs to be well thought out. Motion failed. Voting Yes: Mayor Ramsey, Councilmembers McGlone, and Tossey. Voting No: Councilmembers Backous, Elvig, Strommen, and Wise. 7.04: Consider EDA Revolving Loan Fund (RLF) Application City Administrator Ulrich presented the staff report and recommendation of the EDA to approve the requested Revolving Loan. Motion by Councilmember Elvig, seconded by Councilmember Strommen, to confirm the recommendation of the EDA and approve a Revolving Loan Fund (RLF) Application. Further discussion: Councilmember McGlone stated his rationale and intent to oppose the motion because he thinks it is a second position loan for a start up business with up to a 90% failure rate and inability to recoup funds. Councilmember Tossey expressed his reservation to support the motion because the original loan term did not comply with EDA guidelines and had to be revised from ten years to seven years. In addition, because this involved taxpayer money, he was conflicted. Councilmembers Elvig, Strommen, and Backous advocated in support of the motion since the application, as revised to a seven -year term, fits the EDA policy, included an extensive business plan, the strong financial position of the personal guarantors, and recommendation of the EDA and Mr. Mulrooney who has a spotless reputation. It was noted that these loan funds were raised through a grant and the EDA has experienced a 100% success rate in administering its revolving loan program using the same criteria and consultant. Councilmember Wise clarified that government has no money; all is taxpayer's money; however, he supported the application based on the recommendation of the EDA and Mr. Mulrooney, an expert consultant with a proven track record. Mayor Ramsey stated he would oppose the motion because the loan collaterized exercise equipment that has a high depreciation and if the person putting up the personal guarantee has a lot of money, he could put up this money without a loan from Ramsey. City Council / November 13, 2012 Page 7 of 8