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<br />Chairperson Riley asked if the stricter guidelines would bring about any legal ramifications. <br /> <br />Economic Development Consultant Mulrooney replied ~he EDA is not legally obligated to <br /> <br />approve any loan. First and foremost certain credit tests must be met that show the ability to pay <br /> <br />back the loan. Once that is done it is determined if the project fits into the overall goals of the <br /> <br />EDA. The EDA could also establish goals based on the top priorities that are outside of these <br /> <br />guidelines. <br /> <br />Economic Development/TIF Specialist Sullivan advised the EDA could also state that the funds <br /> <br />are limited and loans are not presently being distributed. <br /> <br />Chairperson Riley questioned the language in Item VII of low-interest loan. Economic <br /> <br />Development/TIF Specialist Sullivan replied the low interest rate is an. advantage of choosing <br /> <br />this loan. <br /> <br />Economic Development Consultant Mulrooney indicated this language came from the wishes of <br /> <br />the Council when this was originally approved as an incentive financing type of program. <br /> <br />Motion by Member Kiefer, seconded by Member Steffen, to recommend that the City Council <br />adopt the February 2005 Revolving Loan Fund Guidelines. <br /> <br />Motion carried. Voting Yes: Chairperson Riley, Members Kiefer, Steffen, Gromberg, <br />LeTourneau, and Strommen. Voting No: None. Absent: Member Elvig. <br /> <br />Further discussion: Member Steffen asked if applications for the Revolving Loan Fund would <br />come to the EDA for review. Economic Development/TIP Specialist Sullivan replied staff <br />would weed out the applications that do not meet the minimum requirements. The applications <br />that meet the requirements would come to the EDA. <br /> <br />EDA: 03.08.07 <br /> <br />34 <br />