08-22-1988 EDA MIN - Laserfiche WebLink

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Page 3 . Economic Development Authority Minutes August 22, 1988 indicated, and the Attorney concurred, that the site, though demolished and cleaned up, would still represent a health and safety issue to satisfy the redevelopment test, as a 20 foot drop from a public sidewalk would remain. To ensure the requirements for a redevelopment district can be satisfied, the Attorney was directed to evaluate the testing of downtown for the requirements of a redevelopment district. It was indicated by Mr. Fursman that the City is proposing to develop the downtown area into a Tax Increment Financing district so that taxes can be captured and used for the purpose of redevelopment of the damaged properties and the backs of riverfront businesses. It was indicated by the Attorney that a redevelopment plan would be the first step in establishing the basis for financing the downtown projects as described. After further discussion, it was stated that the City had a downtown redevelopment plan adopted by the City Council in 1982 and that this plan would be sufficient provided it is revised to reflect the recent developments. COUNCILMEMBER DOBEL MOVED TO DIRECT THE CITY ATTORNEY TO DO AN ANALYSIS OF PROPERTY TO DETERMINE WHETHER THE AREA QUALIFIES AS A REDEVELOPMENT DISTRICT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. . 5b. Consider acquiring commercial property in downtown The EDA discussed the possibility of the EDA purchasing property for the purpose of ensuring the central business district develops according to the City wide plan. After discussing this possibility, it was the general consensus that this would be a legitimate use of EDA funds. 6. Revolving Loan Guidelines Dick Fursman briefly reviewed the revolving loan fund guidelines with the EDA. He stated that the guidelines represent requirements for businesses requesting a loan from the City. He further indicated that the EDA should consider whether or not local banks should be requested to participate financially in the program to obtain matching funds to help increase the amount of the fund. The EDA discussed whether or not the revolving loan fund would be available for nonprofit organizations. It was the consensus that if this were the case, the EDA would receive numerous requests from nonprofit organizations for funds. After further discussion, it was the consensus of the EDA to use the revolving loan fund for profit entities only. . Jim Tra11e stated he would like to see the Finance Committee review the criteria for a revolving loan fund and report back to the EDA with their recommendations.