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Motion carried. Voting Yes: Chairperson Riley; Members Gromberg, Kiefer, LeTourneau, <br />Steffen, and Strommen. Voting No: None. Absent: Member Elvig. <br /> <br />Further discussion: Member Kiefer inquired if the CDBG funds that were used to help purchase <br />the land will come back to the EDA. EConomic Development/TIF Specialist Sullivan replied <br />$150,000 in CDBG funding was received and the acquisition was over $400,000. With this sale, <br />$50,000 will go back to CDBG to go into the County fund that is allocated towards Ramsey. <br /> <br />Member Kiefer asked when this property will be scheduled to close. Economic <br />Development/TIF Specialist Sullivan replied closing is planned in late April or May. <br /> <br />Case #2: Revolving Loan FUnd <br /> <br />Economic Development/TIF Specialist Sullivan reviewed that Economic Development <br />Consultant Mulrooney provided information and answered questions regarding the City's <br />revolving loan fund at the January 12th ED^ meeting. The EDA raised questions regarding the <br />employment requirements established in the guidelines, the effectiveness of the loan with such a <br />small fund balance, and what types of Projects shduld receive this financing tool. Staff was <br />directed to suggest changes to the Revolving Loan Fund Guidelines that reflected this discussion. <br />The recommended changes are before the EDA. Staff is looking for a recommendation from the <br />EDA that the City Council adopt the proPOsed guidelines. <br /> <br />Economic Development Consultant MulrooneY explained some of the changes would clean up <br />the guidelines and other changes were made based on the discussion at the last meeting. He <br />reviewed the following changes to the Revolving Loan Fund Guidelines: <br /> <br />Il. <br /> <br />VI. <br />VII. <br /> (B): <br /> <br />(D): <br /> <br />(I): <br /> <br />Authorization and Funding Sources: COrrection to Minnesota Department of <br />Employment and Economic Development <br />Ineligible Activities: Retail businesses has been added. <br />Loan Terms and Conditions: <br />Interest Rate: An index has been provided to give an incentive for the financial program <br />that is pegged to the treasury rate. The treasury rate is not as volatile as the prime rate. <br />Wage and job goals, Item 1: A business loan through the program less than $75,000 <br />would not be required to establish wage:and job goals, while this would be required of <br />business loans in excess of $75,000. This would provide flexibility as discussed at the <br />last meeting. <br />Wage and job goals, Item 2;' Correction to Minnesota Department of Employment and <br />Economic Development. <br />Loan repayments: Grammatical correction. <br /> <br />Member Kiefer questioned if retail should be excluded from eligible activities. He commented a <br />situation like the 167th Avenue node might benefit :from the Revolving Loan Fund. Also, the <br />Revolving Loan Fund was used for the Sunshine Commons Project. Economic <br />Development/TIF Specialist Sullivan rePlied the SUnshine Commons Project prompted the <br />discussion on whether Revolving Loan Funds shoUld be utilized for retail projects. This should <br /> <br />Economic Development Authority/February 16, 2005 <br /> page 3 of 9 <br /> <br /> <br />