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negotiations with Command Corporation for the purchase of the property necessary to complete <br />the proposed 20,048 office warehouse project. It is the intention of the City to purchase the <br />property at a fair market value and to help facilitate this development project. <br /> <br />Member Elvig questioned why the additional parking and shipping space would be needed, as <br />Minks Custom Homes is a homebuilder. Economic Development/TIF Specialist Sullivan replied <br />Minks Custom Homes would try to attract office type users to the site, but would like flexibility. <br /> <br />Member Elvig expressed concern with an office facility in this location, which is an industrial <br />area. He asked if the EDA can suggest what type of uses are preferred on the site. Economic <br />Development/TIF Specialist Sullivan replied this has never been done in the past in negotiations <br />with a client. There could be some leverage with TIF assistance, but the projects cannot be <br />dictated. <br /> <br />Members of the EDA expressed concern with the City getting involved in the transaction, rather <br />than Minks Custom Homes working directly with Command Corporation. <br /> <br />Economic Development/TIF Specialist Sullivan stated he understands there are questions to be <br />answered. He is requesting permission to enter into negotiations, which would give him the <br />flexibility to meet with Command Corporation. There is a timing issue in this project being able <br />to proceed this year. <br /> <br />Membcr LeTourneau suggested the City get involved as a third party mediator just to get the <br />parties together. <br /> <br />Motion by Member LeTourneau, seconded by Member Steffen, to authorize staff to involve the <br />City in the property acquisition between Minks Custom Homes and Command Corporation, only <br />as a facilitator to start discussion between the two parties. <br /> <br />Motion carried. Voting Yes: Chairperson Riley, Members LeTourneau, Steffen, Elvig, and <br />Strommen. Voting No: None. Absent: Members Gromberg and Kiefer. <br /> <br />Case #3: Twin City Community Capital Fund <br /> <br />TIF Specialist Sullivan reviewed with the EDA that there are many similarities between the SBA <br />504 Loan Program and the Twin Cities Community Capital Fund. Both programs work off a <br />formula of 50% bank financing, 40% SBA 504 or TCCCF financing and 10% owner equity to <br />complete the overall financing structure for any project. Fees to the borrower are also very <br />similar in nature. The difference between the fees to the borrower for the two programs is <br />negligible. He noted the differences in the programs outlined in the EDA's packet. He advised <br />the investment by the City of Ramsey is significant in the TCCCF program. The SBA program <br />seems to address similar needs without any community investment. It is the recommendation of <br />staff not to enter into the TCCCF program. <br /> <br />Motion by Member Steffen, seconded by Member Elvig, not to enter into the TCCCF program. <br /> <br />Economic Development Authority/May 24, 2005 <br /> Page 6 of 8 <br /> <br /> <br />