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City Attorney Goodrich proceeded to review his memo of December 6, 1984 <br />regarding the relationship between the Economic Development Commission and the <br />Economic Development Company. Tne memo states that the Economic Commission is <br />an advisory board to the City Council; the Economic Company is an independent <br />corporation responsible to it's share holders. The Commission is a policy <br />making body dealing with long term goals; the Company is a tool putting into <br />action the goals of Commission and City Council. The Company is not confined <br />by strict legal compliance procedures of a municipality. The overall purpose <br />of the Company is to stimulate growth of small businesses in Ramsey. The <br />common goal of the Company and the Commission is the economic development of <br />the City. <br /> <br />City Attorney Goodrich then introduced Pat Pelstring of Business Development <br />Services and the former Economic Coordinator for the City of Coon Rapids. <br /> <br />Mr. Pelstring stated that the Economic Development Commission sets the tone <br />for the community and the actual day to day work with businesses would be <br />handled best through the Economic Development Company. Mr. Pelstring noted <br />that the Coon Rapids Economic Develo.~ment Company was formed through the same <br />evolution process as in Ramsey -- the Economic Development Commission was <br />formed and that commission initiated the Economic Development Company. That <br />commission and company are now two separate bodies with no same membership <br />back and forth. In Coon Rapids, the Economic Development Commission is <br />responsible for coordinating the City's marketing program; and the Economic <br />Development Company utilizes those marketing materials. <br /> <br />Mr. Pelstring stated that anytime you have a situation where there are a wide <br />variety of public financing options available, those programs require <br />participation by the private sector and the private sector is not well versed <br />in those programs. The economic development company may not be in control of <br />any funds, but it is well versed in available programs and provides the <br />linkage between the private backing cx~mpany and public funds. <br /> <br />Mr. Greenberg inquired if it was difficult task getting a local economic <br />development company off the ground. <br /> <br />Mr. Pelstring replied that it is a difficult task; it is a matter of the key <br />people in the community getting behind the effort and then doing a substantial <br />amount of follow up. Mr. Pelstring stated that his company, Business <br />Development Services, was recently retained by Vadnais Heights to assist in <br />the establishment of their local development company and $30,000 was raised in <br />60 days through sale of stock and fund raisers and all of this did take a <br />great deal of effort. <br /> <br />Mr. Pelstring also noted that Community Development Block Grant (CDBG) funds <br />qualify for use in local development companies. <br /> <br />Discussion ensued regarding the SBA503 program and the mechanics of it. Mr. <br />Pelstring stated that the Coon Rapids Local Economic Development Company is <br />certified and they act as the second mortgage lender in SBA503 applications. <br />Mr. Pelstring stated that it is important for local development companies to <br />keep contacts between banks and businesses open. In certain cases, the local <br />economic development company might want to act as a funding agent with funding <br />you get from CDBG or EDA. The local development company can also apply for <br /> <br />Page 2 of 4 <br /> <br /> <br />