2A, Economic Development Authority

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EDA General Fund This fund accounts for general administration activities that are not specific to any individual TIF District, as well as activities associated with the Economic Development Commission. The estimated balance on December 31, 2011 is $88,262. EDA Revolving Loan Fund In 1996, a grant was applied for thru the Minnesota Department of Trade and Economic Development for CPI/Guidant. In both 1997 and 1998, the EDA secured $300,000 in forgivable loans for CPI/Guidant totaling $600,000. If CPI/Guidant achieved certain employment goals, up to $500,000 of these loans were to be forgiven. $100,000 of the $300,000 1998 grant was not forgivable and was repaid to the EDA. The loan was expected at that time to become seed money for revolving loans to community businesses meeting loan criteria. The estimated balance on December 21, 2011 is approximately $150,000 and it currently only received interest income. No other disbursements have ever been made. (Please note that research may be required to determine loan guidelines and State law restrictions or requirements.) TIF District No. I Round Lake Housing was certified as an Economic Development District on June 29, 1989. The district was generally located on the southeast corner of Round Lake and encompassed the Brueberry Townhomes project. This housing development occurred after the City had removed a rendering plant business (Kem Milling) on the southwest corner of Round Lake within TIF Dist No. 2. The tax increment was used to reimburse the PIR Fund for expenditures incurred in 1989 and 1990 to remove the Kem Milling business. This district has since been decertified (June, 1999) and the loan was repaid to the PIR Fund. TIF District No. 2 Round Lake Office was established as a 25-year Redevelopment Development District on June 29, 1989. This district will expire on December 31, 2015. Since the creation of the district,the following significant events have occurred: • 1989 - 1990 In conjunction with the creation of the district, the City removed a rendering plant business (Kem Milling) within the district that was funded from a loan from the PIR Fund. • 1997 - 1998 In conjunction with the execution of a Development Agreement with Welsh Companies, the EDA undertook significant public improvements to facilitate development of approximately 450,000 square feet of office/warehouse construction. Public improvements included the relocation of a sanitary sewer trunk line, relocation of a water main line, relocation of Fourteenth Street, and the creation of storm retention ponds. These improvements, and Round Lake Road, Phase I, were funded by the issuance of a$3,100,000 G.O. Tax Increment Bond on March 1, 1998. (The bond was refinanced in 2004 at a lower interest rate and the approximate balance remaining to be paid as of December 31, 2011 is $1,065,000. The last payment is scheduled in 2015.) City Council Meeting P:\Admin\Council\Agendas&Packet Information\2012\0 1-30-12 Reg Mtg\Packet Infonnation Page 2 of 4