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Elk Request for Action <br /> River <br /> To Item Number <br /> Housing and Redevelopment Authority 7.5 <br /> Agenda Section Meeting Date Prepared by <br /> General Business August 3,2015 Amanda Othoudt, EDD <br /> Item Description Reviewed by <br /> HRA Blighted Properties &Forgivable Cal Portner,City Administrator <br /> Commercial/Industrial Loan program Reviewed by <br /> Action Requested <br /> Review and comment on the final draft of the HRA Blighted Properties Forgivable Commercial / <br /> Industrial Loan program policy and application. Staff will bring back for formal approval at the next <br /> scheduled meeting. <br /> Background/Discussion <br /> Staff crafted the attached the Blighted Properties Forgivable Residential Loan Policy and the Blighted <br /> Properties Forgivable Loan Commercial and Industrial Policy at the direction of the HRA after several <br /> discussions and workshop meetings over the past few months. The city attorney,Springsted,and the <br /> finance department have reviewed both the residential and commercial policies and applications. <br /> At the direction of the HRA at the June 1 meeting,the following changes were made: <br /> 1. The maximum amount a single project can qualify for decreased to 75,000 from 200,000. <br /> 2. The application will be submitted to and reviewed by the city's financial advisor. <br /> 3. Upon approval from the city's financial advisor,the HRA will review and ultimately approve <br /> or deny the application to ensure compliance with applicable goals,policies,and ordinances. <br /> Blighted Properties Forgivable Commercial/Industrial Loan program <br /> The policy addresses commercial,industrial,and retail properties are identified by a licensed structural <br /> engineer as structurally substandard according to Minnesota Statutes Section 117.025, subdivision 7. <br /> The purpose of the program is to reinvest in blighted properties to preserve or enhance local tax base and <br /> create permanent,private-sector jobs to stimulate above-average economic growth. It is intended to <br /> leverage private investment to ensure economic renewal and competitiveness,improve employment and <br /> economic opportunity for residents,create a reasonable standard of living,and stimulate of productivity <br /> growth through improved commercial,retail,manufacturing or new technologies. Applications will be <br /> accepted on an ongoing basis and reviewed monthly. <br /> Financial Impact <br /> To support this program, the HRA would appropriate a predetermined amount of reserves from the <br /> HRA fund balance.As of July 30,2015, the HRA has a fund balance available for Housing and <br /> Redevelopment purposes of approximately$1 million. <br /> Attachments <br /> • DRAFT HRA Blighted Properties & Forgivable Commercial/Industrial Loan program <br /> POMEOEO OT <br /> NATURE <br />