Agenda - Council - 01/26/1982 - Laserfiche WebLink

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I ! ! I I I I I I I i I I I I ,I I II III IV V ESTABLISHMENT OF A LOCAL DEVELOPMENT CORPORATION Introduction Preferred Planning Services is submitting a proposal to the City of Ramsey to establish a Local Development Corporation to serve as an effective tool and the primary organization to promote.and assist the city in expanding commercial and industrial development, increasing local employment oppor- tunities, expanding the supply of locally available goods and services, and expanding the local tax base. B ack ground A Local Industrial Development Corporation is a public organization owned and managed by a group of local citizens and the business community that are concerned about their communities economic health. The Corporation's purpose is to improve the city's economy through the promotion, develop- ment, and expansion of existing and new small business within the limits of the City of Ramsey. Organization A Local Development Corporation (LDC) may be organized for profit or non-profit, but the primary purpose usually, is not to make a profit, The Corporation often sells stock to citizens and the business communitY. The Corporation may also.accept cash gifts to enhance its fund raising efforts. Goals and Objectives The major decision for an LDC to make is to establish goals that will affect the community's future, especially to produCe a high standard, of living through a more effective use of local resources. The major objectives of a Local Development Corporation are: a. Job Development- creating employment Opportunities to generate personal income through wages and salaries to local area' residents. b. Resource Development - efficient use of resources to generate other sources of personal income. c. Manpower Developmept - education .and training local persons to increase the earning power under }he development of labor programs (WIN) and targeted jobs. d. Community Development - improve services, increase efficiency of the local job sector, enhance the environment and provide comm~mi'ty- support for economic development. e. Management.Development - provide leadership, institutions, pro- cedures, coordinated planning, research and promotion to achieve economic growth. Financing Efforts ' The Local Development Corporation (LDC) will not be'considered a lending institution. Rather than competing with local banks, the LDC can provide financial assistance which banks traditionally do not extend. Generally, the LDC will assist a business cIient with the acquisition of land, prepara- tion and receipt of SBA and bank loans. In some cases, the funds raised through the sale of stock become a revolving fund to help subordinate the PREFERRED PLANNING SERVICES