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NOTE CITY COUNCIL MEETING MINUTES The Economic Development Commission duly noted the following City Council meeting minutes: 1) 2) 3) City Council special meeting minutes dated June 29, 1992. City Council public hearing and regular meeting minutes dated July 14, 1992. City Council Goals Workshop minutes dated July 21, 1992. Councilmember Zimmerman stated that City Council approved the site plan with a three to two vote on the Bury and Carlson case from the Council meeting held on September 8, I992. Some local businesses were concerned about the concrete recycling facility being in the same area as their light manufacturing businesses including Akron and Water Control Corporation. It may be that these businesses were possibly located in the wrong zoning district, causing other long-term problems. COMMISSION BUSINESS Case #i: Revolving Loan and Financial Assistance Documents. The City Council has created an Economic Development Authority with which to encourage expansion and location of businesses in Ramsey. In order for the EDA to achieve these goals, the City needs the ability to provide financial assistance for use by business, tn order to provide financial assistance, the City must provide guidelines for the amount and how the funds are to be made available. These guidelines were sent to local businesses for their review and comment. The EDC proposed some reservations about these documents. The program needs to be funded with a sufficient amount of money to make it a viable assistance and economic development tool. This may include the levying of the maximum amount allowed for economic development authorities. The program be designed to provide a limited turn around time to eliminate a large amount of "red tape" for businesses to partake in. The EDC also agreed that the program should not be a grant program, but a loan program with proceeds being repaid to the City's funds to be reused for other projects in the long term. It was important to the EDC to make the assistance program allow for provision of additional capital. If, for example, a business needed $100,000 and they bank would loan them 75% ($75,000) of that amount and they had 15% ($15,000), the remaining $10,000 could be received fi-om a loan giving them enough credit or equity in the project to ',tllow the bank to ~ve them the full $75,000. Commissioner Greenberg reluctantly a~eed with the program as he felt that it is unfortunate that in order to provide for economic development, the City has to become involved to such a great extent. Motion bv Commissioner Nelson and seconded by Commissioner Greenberg to endorse a proposal {or this project and that the Economic Development Commission would reserve final approval until the final draft of this document has been reviewed by the Commission. This would include the total amount of funding available, the percentage of the project that can be funded by the City and other details. Motion carried. Voting Yes: Chairperson Wagner, Commissioners Nelson, Fults, Greenberg, Goreck/and Vevea. Voting No: None. Absent: Commissioners Kent and Schroeder. Economic Development Commission/September 9, 1992 Page 2 of 4