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Consultant Mulrooney suggested Chairman Belt and Dr. Gillaspy would be good Speakers, as <br />well as Matt Kramer of the Department of Employee and Economic Development. <br /> <br />The consensus of the EDA was to direct staff'to contact Chairman Bell and Dr. Gillaspy and <br />invite them to speak at the meeting, with Natalie Steffen as.another possible speaker. <br /> <br />Case #4: Financial Tools/Revolving Loan Fund <br /> <br />Consultant Mulrooney advised with many revolving loan funds at the local level, it does not take <br />many deals to bring the balance down to zero. The Community Reinvestment Fund was created <br />to buy the loans at a discount and provide monies sooner, rather than later, to allow the <br />community to go out and make additional.' loans. The important thing with revolving loan funds <br />is that the program should be designed to accomplish the City's goals and objectives. <br /> <br />Mr. Mulrooney reviewed the RLF program alternatives and loan fund options with the EDA. He <br />advised the following regarding revolving loan funds: <br /> <br />· A finite resource - leveraging should always be included - GAP financing. <br />· Should not compete with private sector funding sources. <br />· Equity should always be required <br />· Business expansion or retention efforts or the attraction of new business and business and <br /> industry often require an available source of low cost financing. <br /> <br />Commissioners Kiefer and Steffen left the meeting at 8:20 a.m. <br /> <br />Consultant Mulrooney reviewed the sources of revolving loan funds witb~ the EDA. <br /> <br />Chairperson Riley suggested revolving loan funds be used to assist business in cleaning up their <br />properties by offering a loan at a low interest rate. If these businesses stay in the City and <br />improve their properties it will add to the tax base of the City. 'With the balance in these funds ' <br />the minimums do not allow for very much to be accomplished. Also, the employment <br />requirements should be looked at, as he does not think the creation of one job for every $25,000 <br />loaned is very feasible. He requested a review of the fund balances and minimums, and the <br />possibility of amending the employment requirement to state that the emphasis of the loan needs <br />to be to create a job. Economic Development/TIF Specialist explained the employment <br />requirement is included based on the Business Subsidy Act. Consultant Mulrooney explained <br />the employment requirement could be removed from the bylaws so it is only enforced when it is <br />applicable. <br /> <br />Economic Development/TIF SPecialist Sullivan indicated he receives many inquiries from <br />business on possible funding sources. He is reluctant to mention the revolving loan fund because <br />it is so broad in its use, and any request made by a business would qualify for the loan. <br /> <br />Chairperson Riley stated he would also like the changes he has suggested to be included in the <br />topic of discussion. <br /> <br />Economic Development Authority/December 8, 2004 <br /> Page 7 of 10 <br /> <br /> <br />