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member communities to target business development activities. TCCCF is hoping to be able to <br />come uut with a program for affordable housing, but it is not available yet. TCCCF is a program <br />that works with banks, and will not even consider a loan application unless a bank approves of it. <br />'I'he lending capacity fund is based on the participation amount of the member community, and <br />there is no limit on the number of loans a member can do. He explained once a community <br />becomes a member there are no fees or charges. The primary source of revenue is loan <br />uriginatJon fees paid by the loan borrower at closing. The secondary source of revenue is the <br />assignment of interest earnings from the pooled capital of the members. Ninety percent of each <br />member's fund goes into the loan fund, which is fully refundable any time after three years of the <br />date o F deposit. The other 10 percent of the funds are used for a working capital loan made by <br />mmh member to the fund. Mr. Martin reviewed the loan process. <br /> <br />Member Elvig suggested if the EDA were to join this program it Would be beneficial to keep a <br />balance in the Revolving Loan Fund. Economic DevelopmenffTIF Specialist Sullivan replied <br />one reservation he has about TCCCF is that Ramsey would not be the ultimate decision maker. <br />I Ic would advise the Revolving Loan Fund still be operated separate from this program. <br /> <br />Member Kiefer inquired about the borrowing restrictions on the members. Mr. Martin explained <br />il: is rc~;trictive to who the member wants to sponsor. There can also be joint members, such as if <br />iht: City oF Ramsey and Anoka County were to join together. <br /> <br />Member Kiefer questioned what the incentive is for banks to bring TCCCF into the deal. Mr. <br />Martin replied it is risk management for the bank. Economic Consultant Mulrooney indicated <br />c:o/latcral is another issue. <br /> <br />Member Kiefer asked if non-profits such as a community center or church would be able to <br />borrow fiinds. Mr. Martin responded in the affirmative. He stated regarding the Revolving Loan <br />!:und, it is a good fund to have, while this program could be utilized for deals that meet TCCCF <br />re~1 uimmc~ts. <br /> <br />Member l~;lvig asked if TCCCF is involved with Anoka County or the Metro Council. Mr. <br />Martin responded in the negative and explained he has attempted to become engaged with Anoka <br />C~)unty. <br /> <br />Mr. MatXin stated the goal of TCCCF is to reach their commitments and funds by the end of May <br />~)r early June, which will trigger an organization meeting within a couple of weeks. TCCCF <br />would like to get this launched and open for business on or around July 1, 2005. The push is t° <br />get members signed up with the two million dollar capital in place in the next 60 days. He <br />explained if two million dollars in total participation is not raised by October 1, 2005, all <br />members with money sent in would have the money returned. <br /> <br />l~conomic Development/TIF Specialist Sullivan indicated staff would like direction if the EDA <br />th iDl(y, F['CCC F is a good program, and if the EDA is willing to allocate a portion of the budget to <br />join d~is program. <br /> <br />Economic Development Authority/April 13, 2005 <br /> Page 5 of 7 <br /> <br />5 <br /> <br /> <br />