7.0. EDSR 01-14-2008 - Laserfiche WebLink

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EDA Finance Committee Minutes January 8, 2008 Page 3 of 3 Page 3 • Discussion on whether or not additional financial assistance/subsidy is warranted for the downtown area, commercial vacancies are a result of market conditions overall, whether the micro loan fund should have geographic limitations to attract businesses to one area over another, and whether the project should be given more time to lease up before offering subsidies to attract commercial tenants. • Additional financial support would stimulate additional private investment in the downtown area beyond the significant investment the city has already made to see the new projects and downtown park to fruition; and that there is sufficient cash balance in the micro loan fund to consider ways to provide loans where they are needed in the community versus sitting unused in the account. • Need for more stringent application review and standards uicluding credit history, written business plan, requiring loans to be collateralized, working.. capital can be considered, but prohibit refinancing of existing debt from eligible uses. • Whether or not to allow loans to be provided directly to the applicant, as opposed to limiting only as "participation" loans with a conventional lender in conjunction with_a project. • Suggested establishing a "sunset" date of 2-years on the new program. • Suggested application amounts be limited to not more than $50,000 and at an interest rate of two points below prime rate, but not less than 3%. • Allow existing businesses to apply for the new downtown loan program without a requirement for building rehabilitation/restoration: • Suggested the existing Downtown Rehabilitation Program be amended to increase the application amount up to $100,000 (currently- $75,000). While full agreement on a recommendation could not be reached, a majority of the Committee members indicated'`a`willingness to consider establishing a new program with the suggestions mentioned above, upon further direction from the EDA and City Council if they so choose to authorize creation of a new program. 6. Cl The EDA Finance Committee meeting ended at approximately 8:45 a.m. Respectfully submitted by, ;~ %~~~,',~',~,~ Catherine Mehelich Director of Economic Development