Agenda - Council - 03/08/2005 - Laserfiche WebLink

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The consensus of the EDA was to :direct stafft0 draft a recommendation for a Revolving Loan Fund policy addressing the key areas of interest rate and job creation, and removing retail businesses as eligible for the funds. Member Gromberg noted there is a lot of financing available for fixed assets. Member Strommcn commented this fund should be filling gaps as much as possible. Economic Development/TIF Specialist Sullivan indicated staff will bring a recommendation for a policy on the Revolving Loan Fund back to_the EDA for review. He noted the company he met with yesterday will be submitting a proposal to receive Revolving Loan Funds. He asked if the EDA would like to review proposals for the fund until the policy is drafted. The EDA members responded in the affirmative. Member Elvig requested the EDA receive copies °fpast proposals for the funds for review. Case #4: Lease Revenue Bonds City Administrator Norman explained although the Council has not formally acted on the construction of the new municipal center, it has been discussed that lease revenue bonds would be the preferred method of financing. The Council recommended last night that there be formal action taken on the Municipal Center at the next meeting. He indicated lease revenue bonds are the method cities use to build this type of facility, i Finance Officer Lund explained general obligation bonds require the passing of a referendum. CIP bonds are subject to reverse referendum and the financing can be revoked by five percent of the voters signing a petition against the project. The whole project would then need to be repeated and brought back to the EDA in the form of lease revenue bonds. This would result in the cost of the public hearings as well as the:cost of the rates going up. City Administrator Norman indicated once there is a referendum this type of vote is notorious for getting voted down. The City needs this building and will have to go ahead with it anyway, which would not be perceived well by the public. · Member Gromberg stated he has a problem with going ahead on the City Hall without informing the people why it is needed. There should be a public hearing, and the interest rates will not fluctuate that much within the 30 days. Chairperson Riley questioned the EDA's role in the municipal center. Councilmember Elvig explained the Council has tried to receive public input on the municipal facility twice with open houses that :were publicized. Not one resident attended the open houses. The other issue is the Council has looked at what this means to the City and is still projecting no tax increase with the new City Hall. The Council has also looked at the costs to add on the current City Hall. He stated he is in firm belief that the City needs a new City Hall. He Economic Development Authority/January 12, 2005 page 5 of 9