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EDA.Finance Committee Minutes <br />January s, coos <br />Page 3 of 3 <br />Page 3 <br />• Discussion on whether ox not additional financial assistance/subsidy is warranted fox the <br />downtown area, commercial vacancies are a result of market conditions overall, whether the <br />micro loan fund should have geographic limitations to attract businesses to one area over <br />another, and whether the project should be given more time to lease up before offering <br />subsidies ~to attract commercial tenants. <br />• Additional financial support would stimulate additional private investment in the downtown <br />area beyond the significant investment the city has already made to see the new projects and <br />downtown park to fruition; and that there is sufficient cash balance in the micro loan fund to <br />consider ways to provide loans where they axe needed in the community versus sitting unused <br />in the account. <br />• Need fox more stringent application review and standards includin} credit history, written <br />business plan, requiring loans to be collateralized, workuig capital can be considered, but <br />prohibit refinancing of existing debt from eligible uses. <br />• Whether or not to allow loans to be provided directly to the applicant, as opposed to limiting <br />only as "participation" loans with a conventional lender in conjunction with a project. <br />• Suggested establishing a "sunset" date of 2-i-cars on the new program. <br />• Suggested application amounts be limited to not more than ~5U,000 and at an interest rate of <br />two points below prime rate, but not less than 3%. <br />• Allow existing businesses to appJ~- for the new downto«n lo.~.n program without a requirement <br />for building rehabilitation/restoration. <br />• Suggested the existing Downtown Rehabilitation Program be amended to increase the <br />application amount up to $100,000 (currently- S?5,C10p1. <br />While full agreement on a recommendation could not be reached, a majority of the Committee <br />members indicated a R-illuirnrss to consider establishing a new program with the suggestions <br />mentioned abo~-c, upon hird~er direction from the EDA and City Council if they so choose to <br />authorize creation of a ne~~ program. <br />Closing <br />The LD~~ Pillance Co~iimittee meeting ezlded at approximately 8:45 a.m. <br />Respectfiillt- submitted by, <br />~r~" <br />Catherine Mehelicl~ <br />Director of Economic Deg-elopment <br />