07-08-2002 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Page 2 July 8, 2002 5. Consider Participation in Minnesota Community C2pitil Fund (MCCF) Director of Economic Development Catherine Mehelich reviewed the staff report. She indicated that staff has evaluated the Minnesota Community Capital Fund (1~ICCF) as requested by the Economic Development Authoxiry. She explained that the MCCF is a loan fund that the City may access for development activities. She stated that the City's commitment would include a membership deposit, which would allow the City to borrow up to 10 tunes of the deposit amount. Catherine recommended that the City contribute $50,000 far a Class B membership. She suggested that the $SQ,000 come from the City's Micro Loan Fund. Vice President Dwyer indicated that the City is making a three-year commitment. He noted that the City does not receive interest revenue off of the investments. Vice President Dwyer further noted that this is another potential tool fox projects; however, it could require more funds than the city is putting in. Commission Tveite stated that this was a low cost way to create another financial tool fox development. COMMISSIONER TVEITE MOVED TO RECOMMEND TO THE CITY COUNCIL THAT THE CITY PARTICIPATE IN THE MINNESOTA COMMUNITY CAPITAL FUND BY DEPOSITING $50,000 FROM THE MICRO LOAN FUND. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 6. Consider Amendment to the City's Tax Rebate Financing Polio Catherine Mehelich reviewed the amended Tax Rebate Financing Policy. She reviewed the five major changes to the policy as directed by the joint Council and EDA discussion June 24, 2002. 1. Speculative office development is not eligible for TRF assistance. Speculative office defined as projects having less than 50 percent of the available space preleased. 2. Office facilities remain eligible fox TRF, but with minimum requirements. 3. Applications should be reviewed by City's financial advisors. 4. Reduction of requirement for minunum cash equity investment from 20 percent to 10 percent. 5. Those receiving TRF assistance axe subject to the provisions and requirements of the City's subsidy criteria and the 1Vlinnesota Business Subsidy Law.