06-04-14 EDC Minutes - Laserfiche WebLink

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EDC Minutes June 4, 2014 Page 4 of 6 Community Development Director Hutmacher commented that once the video was completed, staff would likely be able to identify sections where visuals could be used to tell the story rather than text. Commissioner Erickson commented that the length of the video should not be a significant concern, as those seeking out the video would likely watch it if it goes beyond three minutes. Commissioner Radziej recommended that the sections of the video including testimonials be interspersed with images. C. Revolving Loan Fund Associate Planner Bachler reported that staff presented recommendations to the Economic Development Authority (EDA) on April 28, 2014 on how the Revolving Loan Fund (RLF) program could be improved. These recommendations were reviewed by the EDC at the April 2, 2014 meeting. Generally, the EDA was supportive of the proposed RLF guidelines. Associate Planner Bachler provided an overview of the revised guidelines and outlined how the loan approval process would work. He explained that the City would be responsible for determining eligibility based on the proposed improvements, obtaining a third party review of underwriting done by the participating bank, and completing a Participation Agreement. The participating financial institution would be required to complete the underwriting, disburse the loan funds, and collect payments for both the City and private portions of the loan. Community Development Director Hutmacher explained that the underwriting done by the participating bank would be sent directly to the third party reviewer. The reviewer would then provide the EDA with a memo that would summarize the financial analysis and include a recommendation for approval or denial. She commented that this process would keep the financial documents provided by the applicant out of public records. Commissioner Erickson asked how the cost of the third party review would be paid for. Community Development Director Hutmacher responded that the cost would be minimal as the review could likely be completed within one to two hours. She explained that this cost would be paid for by the applicant as part of the application fee. Commissioner Erickson questioned how the program would be marketed. Community Development Director Hutmacher stated that City would primarily rely on participating banks to market the program. Information on the RLF would also be provided on the City's website and in the community newsletter. Commissioner Altstatt stated that it will be important for the program to be easily accessible for businesses. He questioned whether there would be much interest in the program given how low commercial lending rates are currently.