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Case # <br /> Revolving Loan Fund Guidelines <br />By: Michael Mulrooney, Development Consultant <br />Sean M. Sullivan, Economic Development/TIF Specialist <br /> <br />Background: <br /> <br />The City's Economic Development Consultant, Mike Mulrooney, of Advance Consulting Group, <br />Inc., provided information and answered questions regarding the City's revolving loan fund at <br />the January 12th EDA meeting. The Authority raised questions regarding the employment <br />requirements established in the guidelines, the effectiveness of the loan with such a small fund <br />balance, and what types of projects should receive this financing tool. Staff was directed to <br />suggest changes to the Revolving Loan Fund Guidelines that reflected the discussion. Staff <br />reviewed the Revolving Loan Fund Guidelines with Mike Mulrooney and has made several <br />changes to the document. The changes are underlined, and are in bold for Council review. The <br />EDA reviewed these changes at its February 16, 2005 meeting and made a formal <br />recommendation that the City Council adopt the new language. <br /> <br />Observations: <br /> <br />Thc demand for the fund has been light due mainly to limited fund availability. Staff is currently <br />working with Mr. Mulrooney to explore additional avenues for increasing the size of the fund. <br />Some of the suggested changes are linked to changing conditions in the marketplace. One of the <br />most significant recommended changes relates to restricting the fund to industrial and other non- <br />retail activities. The fund is being refocused toward job producing and livable wage type <br />projects. This approach will have a positive impact on future development in Ramsey's business <br />parks. Another major change involves adding clarification to the pricing of loans approved <br />through the program. The fund will now be indexed to the treasury bond market. <br /> <br />Recommendation: <br /> <br />EDA and Staff recommend adoption of the updated February 2005 Revolving Loan Fund <br />Guidelines. <br /> <br />Motion: <br /> <br />City Council adopt the February 2005 Revolving Loan Fund Guidelines. <br /> <br />Review Checklist: <br />Community Development Director <br /> <br />CC: 04.12.05 <br /> <br /> <br />