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Background: EDA PROJECT FINANCING By: Ryan R. Schroeder, City Administrator CASE # At the beginn~ing:Of 1992, the Ramsey City Council created the Ramsey Economic Development Authority (E]DA)~ I believe the intent of the creation of the EDA is to assist growth and development i~n lUCre years of the community primarily in commercial and industrial areas but also residential ar~as., iSince initiation of the use of Tax Increment Financing in the community of Ramsey, the City has had various statements of policy regarding use of tax increment and other funds. Also ig years past, there has been the Ramsey Economic Development Company which had its own p6li¢~ statements and also had set up the creation of a Revolving Loan Fund which, apparently in f~e ~hst, has granted one loan that has since been closed out. Enclosed for ~DA consideration are new policy statements. The first document is entitled "Economic D~ :vel~pment Authority Project Financing Guideline". What is contemplated here is that when a cz mpany or developer approaches the City, they can be handed this document so that they know. w ~ati Ramsey is looking for in a development and what is important as far as documentafio~ in 16rder to receive assistance or project approval from the community. The second document is et ititl'~ "Ramsey Economic Development Authority Revolving Loan Fund Program". The intent here iS[lo provide a document which could be used for granting project assistance in cooperation with '.4 bank or other financing entity for building expansions, building or business relocations or fl~ asset purchases. This document is modeled after that used by the Ramsey Economic Cc!mPzjny as well as a Revolving Loan Fund at the Minneapolis Community Development Au~ority (MCDA) and the Columbia Heights Housing and Redevelopment Authority. Tke int.:ent of the above two documents being placed in front of you is to gauge your level of intere it oriapproval of both. The first document is not significantly different than those currently in Pace,iwith the exception that this is a much more comprehensive document. The second, should! it gain your approval, would be to place a new financing tool in the hands of the Economic Del elop~ent Authority and would be stating to the public that we are actually prepared to go out and ~ro~ide loan funds to companies. We would not service the loans but we would have assets at: isk:, i It should be noted that the EDA, if it passes the support of the Revolving Loan Fund, must al~o p~ss a transfer of assets in order to activate the fund. If this transfer does not occur, it will, i~n effect, make the fund nonexistent. However, we are not recommending transfer of assets at thi~,i time. Should the EI~,A a~gree, in concept, with initiation of the Revolving Loan Fund, our next step would be to appro~h financial institutions for review, comment and a statement of interest, or lack thereof. At ct, mp~letion of that process, we would again approach the Economic Development Authority wit, h!poal, ibly an amended document given financial institution comments and hopefully a list of part~cipatij~g agencies. Therefore, the action requested at this meeting is for concept approval of th~Re~olving Loan Fund and authorization to solicit input from financial institutions. Al}o, we are a~kin~, relative to the financing policy generally, that you offer ratification of the policy statement. ! Economic DtyelOpment Authority Action: Morion to app~,ove ithe Economic Development Authority Project Financing Statement of Policy dated May 19, !1992. - and -