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Special EDA Agenda Memo <br /> September 21, 1998 <br /> Page 3 <br /> • $100,000 micro loan in certain special circumstances such as this. <br /> The micro loan proposal would be reviewed by the Finance Committee <br /> with a final recommendation to the EDA. <br /> Late last week staff was awaiting the developers formal tax increment. <br /> application and micro loan fund application. At that time the <br /> developer faxed a letter indicating its desire to put the final decision <br /> on hold until a number of issues at the company level could be <br /> resolved. In conversations with the developer, staff recognized that it <br /> was a challenging situation for the developer to commit to a 1.8 <br /> million dollar project. Staff does not feel that it is a matter of site <br /> location or community selection, but rather a combination of factors <br /> with the expense of the new building and overall conservative nature <br /> of the developer. Staff indicated to the developer that it would <br /> proceed with the same recommendations for this meeting without the <br /> benefit of the formal applications, in order to show a commitment by <br /> the EDA to this project, hopefully increasing the developer's comfort <br /> level to proceed. <br /> Recommendation <br /> M Staff is recommending approval of Resolution 98-_asking the City <br /> Council to call a public hearing to be held on October 19, 1998, to <br /> establish Tax Increment Financing District No. 21. <br /> 7. Consider Recommendation that the City Council Authorize Use <br /> of the Development Fund as a Source of Funding for the West <br /> Business Park Project <br /> Background <br /> The specific mechanics of providing this assistance to the developer <br /> would be as follows: <br /> • EDA to purchase the land up front at the time of closing - <br /> end of October, 1998 <br /> • EDA to pay the developer for completed site improvements to <br /> a maximum amount of$110,000- February/March, 1999 <br /> The development fund has been identified by staff as a source of funds <br /> for these two items. The $100,000 micro loan is proposed to come <br /> from the micro loan fund. <br /> III The guidelines of the development fund indicate that the EDA is in a <br /> position to make recommendations on the use of the development fund <br />