03-09-1992 EDA MIN - Laserfiche WebLink

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. . . EDA Minutes March 9, 1992 Page 2 the City Council has scheduled a public hearing date of March 30, 1992, to consider modifications to TIF Plans 1 & 3. COMMISSIONER KROPUENSKE MOVED TO RECOMMEND TO THE CITY COUNCIL THE PROPOSED MODIFICATIONS TO TIF PLANS NO. 1 AND NO.3. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Consider 1992 Minnesota Housing Finance Agency Home Mortgage Program Bill Rubin noted that in 1991, the Economic Development Authority participated in the Minnesota Housing Finance Agency (MHFA) Home Mortgage Program and was awarded nearly $800,000 in mortgage funds. He further noted that these funds have been depleted, but that state-wide, there are more funds available for Elk River to access. Bill Rubin suggested that the EDA submit an application for more funds in 1992. Bill Rubin further indicated that the EDA may wish to consider making a joint application with Sherburne county which would give first time home buyers the option to choose homes across the County. commissioner Holmgren arrived at this time, 7:20 p.m. scheduled to discuss a county-wide meeting. It was the the consensus of the possibility of participating with of a county-wide application. The County Commissioners are applications at an upcoming Board the EDA Commissioners to explore Sherburne County in the completion 8. Revision to Loan Fund Guidelines Bill Rubin indicated that the interest rate on a revolving loan is currently tied to the Federal Reserve Discount Rate the day the loan closes. He noted that because of falling interest rates and their current low levels, he is requesting that the EDA consider a revision to the loan fund guidelines. The amendment would revise the interest rates on new loans. Bill Rubin indicated that the Finance Committee reviewed this topic and agreed that minimum rate or "floor" on new loans should be established. President Gongoll suggested setting the new interest rate at prime rate. He indicated that the main point for offering a Revolving Loan is to make it attractive to prospective borrowers by providing low interest rates. Commissioner the lowest Commissioner bank. Dwyer suggested tying the interest rate on prime rate as published in the Wall Kropuenske suggested using the prime rate loans to Journal. specific new Street of a COMMISSIONER KROPUENSKE MOVED THAT THE RATE FOR THE REVOLVING LOAN FUND BE SET TO THE PRIME RATE AND THAT PRIME RATE WILL BE DETERMINED BY THE LOWEST PRIME RATE BETWEEN THE FIRST MINNEAPOLIS AND NORWEST BANK OF MINNEAPOLIS AT THE DATE THE LOAN IS APPROVED. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 6-0.