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meeting we will have to decide for sure whether we agree with the concept and <br />idea of an LDC. Council will make the final decision but we cannot do it with~ <br />out your backing. Everyone needs to be sold on it. <br /> <br />Chairman Greenberg questioned what amount of capital is needed to be raised <br />for a Local Development Corporation, <br /> <br />Mayor Gamec stated that we could get $45~000 through a HUD grant. In addition, <br />25 to 50 stockholders will invest in the LDC. For example, Coon Rapids has 125 <br />stockholders because of its size. Loans could be made at an interest of 3% which <br />might give a businessman the extra incentive and dollars he needs to get started. <br /> <br />Commissioner Menkveld asked if this is a block grant and if the City would have <br />to match the price. <br /> <br />Mayor Gamec said that yes, it is a block grant and no, the City would not have to <br />match the cost. <br /> <br />Chairman Greenberg asked where these funds come from. <br /> <br />Mayor Gamec gave a brief explanation of a HUD grant. Basically, it comes from <br />taxpayers. In the best form it will come back to the City. Ramsey seems to have <br />trouble getting these grants. The requirement of a HUD grant is that it has to <br />benefit low to moderate income people. We received a HUD grant for the lower <br />level of the Ramsey Municipal Center for use as a senior citizen community center. <br />We allocated $70,000 in the budget for City Hall improvements, energy efficiency <br />and purchase of land. Then we designated an area for senior citizens and received <br />HUD grant funds. <br /> <br />Councilman Cox commented that the monies that are available are Federal block <br />grant funds that are given to the County for distribution to the various local <br />jurisdictions within the County. <br /> <br />Commissioner Schmidt said that the County can distribute it how they like. It <br />is based on the need of the various local jurisdictions, <br /> <br />Commissioner Schmidt then asked whether anyone else has approached the City re~ <br />garding a Local Development Corporation. <br /> <br />Mayor Gamec stated that the only other firm was in St. Cloud and they've avoided <br />it now because they decided they couldn't compete with Mr. Klein's price. <br /> <br />Councilman Cox feels that possibly the Building Official would be interested in <br />working with the EDC in regards to the Local Development Corporation. <br /> <br />Mayor Gamec feels that we would have problems with using City Staff especially <br />since there is so much %ravel involved. <br /> <br />City Administrator Schnelle said that we could give Some back-up help when we <br />find breaks in our work flow. He also stated that the citizens of Ramsey will <br />need to participate. <br /> <br />Commissioner Fults also feels the private sector is needed for success. <br /> <br />EDC/May 12, 1982 <br /> Page 2 of 5 <br /> <br /> <br />