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Participation in MCCF <br /> July 8,2002 <br /> Page 2 of 2 <br /> • Staff recommends an initial deposit of$50,000,which would allow the city to originate loans <br /> up to $500,000. There is no limit on the number of loans that a MCCF member can <br /> originate. Members are able to increase their stake in the fund at any time in order to meet <br /> changing needs. <br /> Staff believes this is a valuable and unique opportunity to fund economic and housing <br /> development. There are very few tools at our disposal for development and this fund begins <br /> to address those needs. <br /> Membership in the fund is subject to the attached Participation Agreement and Loan Fund <br /> Escrow Agreement,which require members to make a minimum 3-year commitment to the <br /> MCCF. At the end of the 3-year period, all funds contributed will be returned,without <br /> interest,upon written request of the member. <br /> Projects will be required to complete an MCCF application to be considered per the attached <br /> MCCF Loan Criteria. Applications may be initially reviewed by the EDA's Finance <br /> Committee for recommendation to the EDA. <br /> Requested Action <br /> Authorize the Executive Director to execute the necessary documents relating to <br /> participation in the Minnesota Community Capital Fund, and deposit$50,000 from Micro <br /> Loan funds towards this fund. <br /> • <br /> • <br /> S:\EDA\MicroLoan\MCCF\7-8-02.DOC <br />