Minutes - Economic Development Authority - 01/01/2005

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Further discussion: Economic Development Consultant Mulrooney noted there are some things that can be done through TCCCF that cannot be done through SBA. The TCCCF does not include any owner occupancy requirements. There are instances where TCCCF funds might be a viable tool to use for certain projects in the City of Ramsey. If they are looking strictly at the borrower in terms of benefits to a small business it is clear the rate under the SBA 504 being charged to the borrower is better with no major reserve required. The reason for that is that the SBA 504 funds are guaranteed by the U.S. Government, which is not the case with TCCCF. If the EDA were to join TCCCF with $50,000 they would have the ability to increase that to $200,000 and do a larger project, which is only an option for charter members. Member Elvig stated one of the things that concerns him about TCCCF is that it is quick and easy to get a hold of. He likes the idea of owner occupied projects and a quality deal. He prefers the funds being more restrictive, as they are with the SBA 504 program. Motion carried. Voting Yes: Chairperson Riley, Members Steffen, Elvig, LeTourneau, and Strommen. Voting No: None. Absent: Members Gromberg and Kiefer. Case #4: EDAM Participation Moved up in the agenda to precede Case # 1. Case #5: Staff Update The EDA reviewed the staff update. TIF Specialist Sullivan reviewed the following Community Revitalization Projects: · 14040 Azurite St. NW · 14140 Azurite St. NW · 6030 Bunker Lake BoulevardNW · 14280 Sunfish Lake Blvd NW TIF Specialist Sullivan reviewed the status of the following properties: Mate Building, Debee Property, Amoco Property, and Adolfson-Peterson. TIF Specialist Sullivan noted staff has been in contact with six new business prospects that range fi'om 20,000 square feet to 60,000 square feet. The prospects include a bindery, a rigging company, an office user and three manufacturers. The City may have the ability to find homes for four of the businesses, and if that is done a new business park would be needed. Member Elvig stated the new business park should be moved on as quickly as possible. Chairperson Riley concurred. He stated the City is behind on this if the space could already be full and they are two to three years away from having new space. The consensus of the EDA was to direct staff to begin identifying areas and financing options for a future industrial park site. Economic Development Authority/May 24, 2005 Page 7 of 8