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MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Economic Development Authority <br />Catherine Mehelich, Director of Economic Developmeny/~/ <br />July 8, 2002 <br /> <br />SUBJECT: Consider Participation in Minnesota Community Capital Fund <br /> (MCCF) <br /> <br />Attachments · MCCF Participation Agreement <br /> · MCCF Loan Fund Escrow Agreement <br /> · MCCF Loan Criteria <br /> <br />Background <br />At its June 10, 2002 meeting the EDA and Finance Committee heard a presentation about <br />the Minnesota Community Capital Fund (MCCF) by Scott Martin, CEO/Fund Developer. <br />The EDA indicated interest in participating in MCCF and directed staff to review the <br />program further and respond with a recommendation for the level of participation. <br /> <br />Issue <br />The MCCF is a new and innovative loan fund the City may access in order to do a myriad of <br />development activities. The fund is a self-sustaining development resource, with the <br />continual recapitalization of the fund through the sale of pre-approved loans to the <br />secondary market. As soon as the fund has $2.5 million on deposit, loan originations can <br />begin. <br /> <br />The city's commitment would include a membership deposit. The deposit will allow the city <br />to borrow up to 10 times that amount. There are three classes of participation levels ~vhich <br />the city may consider: <br /> <br />Class A memberships - deposits of $100,000 or more <br />Class B memberships - deposits of at least $50,000, but less than $100,000 <br />Class C memberships - deposits of at least $25,000, but less than $50,000 <br /> <br /> <br />