04-29-2020 EDA MIN SPECIAL - Laserfiche WebLink

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Economic Development Authority Minutes Page 3 April 29,2020 III4. Economic Development Business Micro Loan Program Ms. Othoudt presented the staff report. Commissioner Ovall questioned if there were any restrictions on forgivable loans or grant funds. Ms. Othoudt stated the microloan fund is the most flexible allowing the Authority to write its own program. She stated it is funded by taxpayers through the EDA levy. Commissioner Ovall stated lot of these businesses in are the gathering places in our community and are the most volatile as they work very hard for the lowest margin and have the highest taxes associated with them. He stated he would like to create a simple but significant program that will not overwhelm staff. He stated property taxes were a loud and clear concern in a recent survey. He questioned creation of a forgivable property tax relief program for the businesses shut down by the State Order. The Authority discussed leases versus property ownership issues and the administrative time deciphering this would burden staff. President Tviete asked if there have been inquiries regarding relief from local businesses. elMs. Othoudt stated none through the city or county. Commissioner Wagner noted it is still early in the pandemic and everyone is waiting to see what happens. She feels the requests will come and the Authority needs to be proactive. Commissioner Blesener stated the list of businesses in the State Order is extensive. He stated he likes both options by staff and Commissioner Ovall. He noted the city's portion of the property tax bill is only one-third of the total bill. Commissioner Ovall stated the last thing a business wants are loans and repaying things over time. He stated it is in the discretion of the Authority to set the dollar limit for the relief and questioned if they want to rebate the city amount or the full amount. He stated he would like to address the fixed overhead burden for a business. Commissioner Blesener questioned program funding. Ms. Othoudt stated the fund balance for the microloan program is $884,000.She stated the maximum loan through this program is $200,000. She stated if$200,000 were put into a property tax relief program,there would be funds left in the program to only assist three businesses. She expressed concerns with offering grants versus a IIIloan and suggested reviewing loan amount options and adjusting terms. 1P—011EIEI it NATURE