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El .�.� Request for Action <br /> Ricer <br /> To Item Number <br /> Economic Development uthority Finance Committee 4.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business June 28,2016 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> EDA Financial Policy Annual Review Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Consider the changes made to the EDA Microloan Fund Program Policy,EDA Forgivable Loan <br /> Program Policy,Tax Abatement Policy,and TIF Policy and the creation of a separate microloan policy <br /> utilizing the former state MIF proceeds. <br /> Background/Discussion <br /> Staff,in conjunction with our attorney and financial advisor,reviewed and revised the EDA loan <br /> programs and policies based on discussions from the April 26 meeting. <br /> Changes to the EDA Forgivable Loan Program Policy include the following: <br /> 1. Federal Poverty Level Wage Updates <br /> 2. LMI Income Requirements <br /> Changes to the Property Tax Abatement Policy include the following: <br /> 1. Subsidy and Reporting Requirements <br /> 2. Removed the requirement of a minimum assessment agreement per attorney <br /> 3. Application fee increased to $10,000 <br /> 4. Added Reimbursement of Costs of Review <br /> Changes to the Tax Increment Policy include the following: <br /> 1. Incorporated the housing policy into the general TIF policy for consistency <br /> 2. Added Public Purpose Objectives for Housing TIF districts <br /> 3. Identified Statutory TIF district categories and term <br /> 4. Revised Application <br /> 5. Added Confidentiality Agreement <br /> Changes to the Microloan Policy include the following: <br /> 1. Rename policy for consistency: Elk River Economic Development Business Microloan Fund, <br /> Guidelines,Policy&Application <br /> 2. Re-Organization and Re-numeration of policy for clarity <br /> 3. Application fee increased to $7,000 from$2,000. <br /> 4. Rate is consistent throughout at 2% <br /> 5. Added Meeting Schedule <br /> 6. Added Confidentiality Agreement <br /> 7. Added Scoresheet <br /> Creation of a new policy utilizing former State MIF proceeds <br /> i <br /> 0WEAED 6Y <br /> 4A R <br />