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- Case # 4 <br />Revolving Loan Fund and other Development Tools <br />By: Megan Wald, Associate Planner <br />Scan M. Sullivan, Economic Development/TIF Specialist <br /> <br />Bacl~ground: <br /> <br />Economic Development consultant, Mike Mulrooney, provided information regarding the <br />City's revolving loan fund at the December EDA meeting. The Authority raised <br />questions regarding the employment requirement established in the guidelines, the <br />effectiveness of the loan with such a small fund balance, and what types of projects <br />should receive this financing tool. <br /> <br />The EDA requested the following information pertaining to the dollar amounts associated <br />with the loan: <br /> Balance in fund as of 12/31/04 (does not include interest earnings) $95,558.87 <br /> <br />Sunfish Commons Loan <br />Panther Precision (small business grant) <br />Zero Zone (small business grant)' <br /> <br />$75,000 <br />$100,000 (portion City retains) <br />$100,000 (portion City retains) <br /> <br />Sunfish Commons pays $12,805.32 per year with loan pay off of November 2009 <br />Panther pays $10,000 per year with loan pay off of October 2013 <br />Zero Zone grant is complete. <br /> <br />At the end of all payments' (through 10/13 and not including yearly interest earrings of <br />approximately 3%) the fund would have a balance of $246,851.34. <br /> <br />Observations: <br /> <br />Staff reviewed the Revolving Loan Fund Guidelines and has one suggestion for language <br />changes. Under the Job Creation section, staff 'would suggest removing the threshold of <br />one permanent full-time livable wage job to be created for every $25,000 dollars and <br />insert the state law business subsidy rules of 1 permanent ~ull-time job per $75,000 <br />dollars. <br /> <br />In order to effectively utilize the Revolving Loan Fund staff suggests establishing a <br />policy fbr advertising and distributing revolving loan funds. Policy needs to be <br />established related to: <br /> · what types of projects should utilize these funds (i.e. business <br /> equipment purchases, assistance with asbestos clean up, re-facing <br /> of metal buildings) <br /> · Should the funds be available to retail businesses' <br /> · Are there any minimum or maximum dollars spent on one prOject <br /> · How does the EDA want staff to promote or inform the existing <br /> business community about the availability of the funds <br /> <br />~0 <br /> <br /> <br />