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funds the city has for assistance to companies. City funds are generally <br />those funds generated through CDBG; CDBG funds are best used as loan money so <br />they can be recycled. <br /> <br />Mr. Pelstring stated that if your local economic development company is to be <br />a functioning, efficient organization, you must not set your sights too low <br />and you will need some operating capital. Operating capital would be used to <br />funds items that will make the company visible to the community like it's own <br />letterhead, telephone listing, etc. Vadnais Heights is using some of it's <br />operating capital to prepare a feasibility study regarding developing at an <br />important intersection in their community. <br /> <br />Mr. Pelstring cautioned against a local economic development company owning <br />and marketing land, especially if the company has limited resources. A local <br />development company should only get involved in the purchase and marketing of <br />land if it is a situation where the company can serve as a direct catalyst -- <br />getting in and out quickly. <br /> <br />Mr. Greenberg inquired as to the voting rights of share holders in the <br />company. <br /> <br />Mr. Goodrich replied that the by-laws state that one person or entity must own <br />less than 10% of the total shares. <br /> <br />Mr. Pelstring stated that this by-law should not prohibit the company from <br />accepting contributions or having voting and non-voting stock. <br /> <br />Mr. Greenberg inquired as to how local economic development companies qualify <br />for CDBG funds. <br /> <br />Mr. Pelstring replied that capitalization of actual dollars necessary for <br />operation in a development company is eligible under the block grant program. <br />But, at some point in time, the benefits to low and moderate income jobs <br />generated through that use must be measured. <br /> <br />Mr. Goodrich referred to his memo of November 5, 1984 which lists the officers <br />of the Ramsey Economic Development Company that were elected on March 22, <br />1983. Mr. Goodrich noted that all officers elected are still involved with <br />the exception of Mr. Jack Menkveld, who has since resigned from the Ramsey <br />Economic Development Commission, but who might still be interested in being <br />involved with the Economic Development Company. Ms. Norris stated that Mr. <br />Menkveld was notified of today's meeting and she has not heard from him. <br /> <br />Case #2: C~als and Obiectives Of Ramsey Economic Develo_~ment ComDany~ <br /> <br />Mr. Greenberg brought up the subject of the Etienne property, which the <br />Economic Development Commission feels feels is a key piece of industrial <br />property, for discussion. He stated that Mr. Etienne has turned the property <br />over to his son-in-law. <br /> <br />City Planner, Anne Norris, suggested that industrial property developers be <br />contacted regarding the possibility of, with City assistance, a coordinated <br />effort to develop the Etienne property the way the City would like to see it <br />developed. Tnis could be a way to accomplish some control of how that <br /> <br />Page 3 of 4 <br /> <br /> <br />