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EDC Minutes <br />November 6, 2013 <br />Page 2of 5 <br />Commissioner Erickson <br />responded that attendees appreciated the MnDOTupdate given the <br />many transportation projects that are currently underway in this area. <br />Councilmember Werner <br />added that the economic development portion of the presentation <br />which was given by Chair von Holtum was well-received by attendees. <br />CommissionerErickson <br />asked about the venue. <br />Community Development Director Hutmacher <br />responded that staff made notes regarding <br />room setup, audio-visual equipment, and food so if the event is held at Flaherty’s again some <br />minor adjustments can be made. Hutmacher added that the Flaherty’s staff was very friendly and <br />helpful throughout the planning process and the event. <br />B.Revolving Loan Fund <br />Community Development Intern Bachler <br />gave a presentation on the background of the City’s <br />revolving loan fund including itshistory and funding sources. He reviewed the existing <br />revolving loan fund guidelines and Economic Development Authority (EDA) discussions <br />regarding potential revisions to the fund guidelines. <br />CommissionerErickson <br />noted that it was unclear whether loan funds would be targeted <br />towards established or startup businesses, particularly since loans to startup businesses are <br />usually high-risk and his understanding was that the EDA wanted assurance of loan repayment. <br />Commissioners discussed the origins of the revolving loan fund and its inactivity for the past <br />several years. <br />Commissioner Altstatt <br />inquired aboutthe balance of the fund and whether it could be used to <br />improve real estate. <br />Community Development Intern Bachler <br />responded that the current fund balance is $155,649 <br />and that it must be used specifically for economic development activities; it cannot be transferred <br />to the City’s general fund. The loan funds could be used for real estate improvements provided <br />that the project met the fund guidelines. <br />Commissioner Heikkila <br />asked whether loan funds could be used for appraisals or <br />environmental assessments. <br />Community Development Director Hutmacher <br />responded that the EDA had indicated that <br />they did not support using loan funds for professional fees. <br />Commissioner Erickson <br />stated that he felt the proposed terms of the revolving loan program <br />were appropriate; however, he was concerned that the ideal candidate for loan funds was not <br />