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-c./ <br /> \( ITEM 8 <br /> r / <br /> tfiC <br /> TO: ELK RIVER ECONOMIC DEVELOPMENT <br /> AUTHORITY <br /> River <br /> FROM: WILLIAM RUBIN, ED COORDINATOR/ JYL <br /> DATE: MARCH 3, 1993 UUP" <br /> SUBJECT: EXPANSION OF A CERTIFIED <br /> DEVELOPMENT COMPANY INTO SHERBURNE <br /> COUNTY <br /> INTRODUCTION <br /> On Monday, March 8, 1993, the EDA Commissioners will hear a <br /> presentation by Kristin Wood, Administrator, of the Coon Rapids <br /> Development Company (CRDC) . Based on a recent change in its <br /> Bylaws, CRDC is exploring options of extending its service <br /> territory into one or more counties, including Sherburne. <br /> Additional information on the CRDC follows. <br /> BACKGROUND <br /> WAS IS CRDC? <br /> • CRDC is a private, nonprofit development corporation that has <br /> been "certified" by the Small Business Administration (SBA) , <br /> thereby allowing it to offer certain SBA programs to small <br /> companies. The basic SBA program offered is the 504 Loan; as a <br /> result, a certified development company is sometimes referred <br /> as a 504 Development Company. To date, there are eight active <br /> 504 companies in Minnesota, including a State-wide organization <br /> known as Opportunities Minnesota, Inc. (OMNI) which operates in <br /> areas that lack its own development company. <br /> CRDC was organized in 1978; it is owned by shareholders who <br /> purchased stock in the organization. The sale of stock, by and <br /> large, was viewed as a donation toward CRDC's economic <br /> development efforts. The organization maintains its own Bylaws <br /> and Board of Directors. The Directors are elected from CRDC <br /> shareholders at its annual meeting. Officers, in turn, are <br /> elected by the Directors. Except for the administrator, the <br /> Directors and Officers are volunteers to the organization. <br /> EXPANSION OF SERVICE TERRITORY <br /> CRDC' s Bylaws define its area of operation. Initially, the <br /> Company could only offer SBA financing to companies located (or <br /> to be located) in the Coon Rapids city limits. A few years <br /> ago, shareholders approved a bylaw change to include all of <br /> Anoka County in the CRDC service territory. In November, 1992, <br /> • <br /> shareholders voted to remove any territorial restrictions on <br /> the company' s loan processing activities. Pursuant to the <br /> Bylaw change, expansion beyond Anoka County's borders requires <br /> 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612)441-7420 <br />