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Item 5 . <br /> • <br /> City of <br /> Elly -, <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Catherine Mehelich, Director of Economic Developmen <br /> DATE: July 8, 2002 <br /> SUBJECT: Consider Participation in Minnesota Community Capital Fund <br /> (MCCF) <br /> Attachments <br /> • MCCF Participation Agreement <br /> • MCCF Loan Fund Escrow Agreement <br /> • • MCCF Loan Criteria <br /> Background <br /> At its June 10,2002 meeting the EDA and Finance Committee heard a presentation about <br /> the Minnesota Community Capital Fund (MCCF) by Scott Martin, CEO/Fund Developer. <br /> The EDA indicated interest in participating in MCCF and directed staff to review the <br /> program further and respond with a recommendation for the level of participation. <br /> Issue <br /> The MCCF is a new and innovative loan fund the City may access in order to do a myriad of <br /> development activities. The fund is a self-sustaining development resource,with the <br /> continual recapitalization of the fund through the sale of pre-approved loans to the <br /> secondary market. As soon as the fund has $2.5 million on deposit,loan originations can <br /> begin. <br /> The city's commitment would include a membership deposit. The deposit will allow the city <br /> to borrow up to 10 times that amount. There are three classes of participation levels which <br /> the city may consider: <br /> Class A memberships—deposits of$100,000 or more <br /> Class B memberships—deposits of at least$50,000,but less than$100,000 <br /> Class C memberships—deposits of at least$25,000,but less than$50,000 <br /> i <br />