04-12-1993 EDA MIN - Laserfiche WebLink

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. . . Economic Development Authority April 12, 1993 Page 2 COMMISSIONER DIETZ MOVED TO APPROVE PAYMENT OF EDA EXPENSES THROUGH DECEMBER 31, 1992, IN THE AMOUNT OF $3,213.01 TO THE CITY OF ELK RIVER. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 6. Consider an Application for the 1993 Minnesota Housing Finance Agency Home Mortgage Program Bill Rubin stated that at the March EDA meeting, the Commissioners discussed the 1993 MHFA first time homebuyers program which enables municipalities or Economic Development Authorities to reserve an allocation of mortgage funds through the MHFA. Bill Rubin explained that the 1993 income threshold is anticipated to be about $45,000. Bill Rubin stated that he has prepared a draft application to the MHFA requesting an allocation of $1.5 million in mortgage revenue funds for Elk River. Bill Rubin stated that the designated lender for the City of Elk River has been First National Mortgage. He stated that First National Mortgage is still interested in the program. Bill Rubin informed the EDA that he received a request from Norwest Mortgage who is also interested in being designated as a lender for the program. He explained that the closest Norwest Mortgage office available to Elk River residents is located in Maple Grove. Commissioner Holmgren arrived at this time (7:15). Commissioner Dwyer suggested contacting other mortgage agencies ,in the community to see if there is an interest in participating in the program prior to going outside of the City limits. Commissioner Dietz concurred. COMMISSIONER DIETZ MOVED TO AUTHORIZE THE SUBMISSION OF AN APPLICATION IN THE AMOUNT OF $1.5 MILLION DOLLARS TO THE MINNESOTA HOUSING FINANCE AGENCY WITH THE STIPULATION THAT BILL RUBIN CONTACT OTHER MORTGAGE COMPANIES IN THE CITY TO SEE IF THEY ARE INTERESTED IN BEING AN APPROVED LENDER FOR THE PROGRAM AND FURTHER TO AUTHORIZE PAYMENT OF A DEPOSIT EQUAL TO 1% ($15,000) OF THE REQUESTED ALLOCATION. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 7. Loan Request from Tescom Corporation, Inc. Bill Rubin indicated that the EDA Finance Committee met to review a request from Tescom corporation for a $50,000 loan. The loan will be used by Tescom to supplement other financing sources to construct and equip an new 28,000 square foot facility in the Industrial Park. He stated that the $50,000 loan requested by Tescom will be repaid over a ten year period. Bill Rubin indicated that the EDA Finance Committee voted to recommend approval of the loan request. COMMISSIONER DWYER MOVED TO APPROVE THE $50,000 LOAN REQUEST TO TESCOM CORPORATION, INC. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.