5.0. 6.0. 7.0. EDSR 08-10-1998 - Laserfiche WebLink

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ity of MEMORANDUM Elk Ri ver TO: Economic Development Authority FROM: Paul T. Steinman, Director of Economic / Development DATE: August 5, 1998 SUBJECT: Agenda Memo for August 10, 1998, Meeting 5. Discuss Sherburne County Business Development Fund Program Sherburne County Economic Development Coordinator Michael Darger will be available at the EDA meeting to discuss the concept of a new loan incentive program for Sherburne County. The purpose of • Mr. Darger's presentation will be to discuss the general concept of this type of loan program, gain input from the EDA, and, at a later date, ask that the EDA make a recommendation to the City Council to participate as an investor in this program. Attachments to this memo include a fact sheet, program benefits, eligibility guidelines, description for investors, and an application form and guidelines. The following is an example of the mechanics of the business development fund concept: • Investors such as all the Sherburne County cities, utility companies, telephone companies, would agree to pledge a certain amount of dollars to this program. City of Elk River staff has discussed this number to be $200,000. • The $200,000 is not "at risk" dollars - these are not loan dollars, but dollars pledged to be invested in federally insured certificates of deposit for eligible and approved business development fund applicants. • A fund applicant is approved for a $500,000 loan from the business development fund through any bank in Sherburne County. • The project can be built anywhere in Sherburne County. • County staff calls all investors and asks for their proportionate share of pledged investments to be taken at the bank in the form of the purchase of certificates of deposit. 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD&Phone: (612) 441-7420 • Fax: (612)441-7425