05-15-1989 EDA MIN - Laserfiche WebLink

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. . . Page 3 Economic Development Authority Minutes May 15, 1989 5. Revolving Loan Fund Mr. Fursman updated the Council on a Revolving Loan Fund. He indicated that the Finance Committee has met and reviewed the Revolving Loan Fund. It was the consensus of the Council that they would review the Revolving Loan Fund and come back with a decision for approval at the next meeting. 6. Community Reinvestment Fund Mr. Fursman indicated that the Community Reinvestment Fund is an organization which pools loans from around the State and sells them at a discount in the form of a bond. He stated that the City of Elk River has been invited to sell the A11too1 loan in June, which would allow the City to put $100,000 into the Revolving Loan Fund immediately as opposed to collecting it in increments of $2,500 each month. He indicated that this would allow the City to build the reserves in the Revolving Loan Fund quickly. Mr. Fursman also indicated that the Department of Trade and Economic Development is making new demands on the use of their grant monies which would cut signifiant1y into the amount of money available from the sale. Mr. Fursman indicated through taking loans A11too1 loan. an option to this type of sale would be at local institutions collateralized by the that out It was the consensus of the Economic Development Authority to review this matter and bring it back to the next EDA meeting with a recommendation. 7. TIF Policy/Application Mr. Fursman indicated that the City Tax Increment Financing policy has been updated to appropriately reflect law changes and unwritten policy modifications. He indicated that the biggest change in the policy is the application with the fee of $5,000. He stated that the $5,000 would be required as a non refundable upfront fee for administrative expenses. COMMISSIONER HOLMGREN MOVED TO ADOPT THE TAX INCREMENT FINANCING POLICY CONTINGENT UPON THE CITY ATTORNEY APPROVING THE POLICY. COMMISSIONER KROPUENSKE SECONDED THE MOTION. pursued regarding the $5,000 fee and whether or not the fee refunded if the project does not go through. Mike Mulrooney that several other cities that have the fee involved in their refund a portion of the fee if the project does not go Discussion should be suggested TIF policy through. COMMI SSIONER HOLMGREN MOVED TO ADD TO THE ABOVE MOTION, THAT ANY UNUSED PORTION OF THE TIF FEE FOR A PROJECT THAT DOES NOT GO THROUGH COMPLETION BE REFUNDED TO APPLICANT. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION AS AMENDED CARRIED 5-0.