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Item 3.9. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor & City Council <br /> <br />Catherine Mehelich, Director of Economic Developmen[~/~/y <br />July 15, 2002 <br /> <br />SUBJECT: Authorize Participation in Minnesota Community Capital Fund <br /> <br />Attachments · Staff reports to the EDA dated June 10, 2002 and July 8, 2002 <br /> · Balance Sheet as of May 31, 2002 - City of Elk River Micro Loan Fund <br /> · MCCF Participation Agreement <br /> · MCCF Loan Fund Escrow Agreement <br /> · MCCF Loan Criteria <br /> <br />Background <br />The Economic Development Authority (EDA) has recently reviewed and considered <br />participation in the Minnesota Community Capital Fund. The Minnesota Community <br />Capital Fund 0VICCF) is a new non-profit membership corporation established to increase <br />the lending capacity of economic development groups throughout Greater Minnesota. <br />Attached please fred the staff reports to the EDA detailing the MCCF program. <br /> <br />The attached balance sheet for the city's Micro Loan fund indicates a cash balance of <br />$591,767.22 as of May 31, 2002. In addition, the outstanding principal on existing loans is in <br />the amount of $826,558. <br /> <br />The city's participation as a member of MCCF provides the flexibiliry to fund large housing <br />and economic development projects that would otherwise not be possible through typical <br />micro-loan funds. In addition, members have the capacity to originate loans of up to ten <br />times the amount they contributed to the Fund. <br /> <br />Recommendation <br />At its July 8, 2002 meeting the EDA recommended the City Council consider authorizing <br />the Executive Director of the Economic Development Authority to execute the attached <br />necessary documents relating to participation in the Minnesota Community Capital Fund, <br />and deposit $50,000 from the City of Elk River Micro Loan funds towards this fund. <br /> <br /> <br />