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• <br /> November 2, 1998 <br /> To: Duane Kropuenske <br /> Paul Steinman <br /> From: Pat Dwyer <br /> Subject: Commercial property improvement loans <br /> I have spoken to both of you regarding low interest property improvement loans in "historic" <br /> downtown Elk River. <br /> This memo will put forward some of my ideas. Please feel free to make comments or suggestions. <br /> Loan pool amount- $500,000 ($250,000 from each bank) <br /> Maximum loan - $50,000.00 <br /> Interest rate- 3% (The banks would lend at 6%with the HRA subsidizing the rate down to 3%) <br /> Term - 5 to 7 years <br /> Qualifying properties -Buildings located in the primary area defined by the committee as <br /> "downtown" <br /> Underwriting standards -Normal property improvement loan qualifications <br /> Qualified improvements -Exterior improvements <br /> This would require the HRA to commit up to $15,000 (3% of$500,000) per year to subsidize <br /> the interest rate. The annual subsidy would decline as the loans are repaid. <br /> Look this over. I'll give you a call next week so we can get together and talk. <br /> 4111 <br />