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<br />City of Arden Hills <br />Economic Development Commission June 4, 2014 <br /> <br />Page 4 of 5 <br /> <br /> Purchasing participation in the note at the time of the loan closing. <br /> Promoting program though communication with local banks and the City’s website and <br />community newsletter. <br /> <br />Participating financial institution would be responsible for: <br /> Processing applications. <br /> Completing all necessary underwriting to determine eligibility. <br /> Determining loan amortization period. <br /> Approval or disapproval of loan subject to final approval by the Arden Hills EDA. <br /> Preparing appropriate collateral documentation. <br /> Distribution of loan funds and collection of principal and interest payments for both the <br />City and private portions of the loan. Monthly payments are submitted to the City. <br /> <br /> <br />Next Steps <br /> <br />Depending on the feedback provided by the EDC, staff is proposing the following next steps for <br />implementing the updated RLF program: <br /> <br />1. Follow up with CMDC and SPEDCO on the financial review services they could provide <br />the City in verifying underwriting completed by participating banks. This would include <br />determining how to set up the review process and the estimated cost of these services. <br /> <br />2. Work with the City Attorney and local banks that have expressed an interest in the <br />program on developing a draft of the Lender Agreement and the Participation Agreement <br />documents. These documents would include the requirements of the program and the <br />responsibilities of the City and the bank. <br /> <br />3. Draft a final version of the revised RLF Guidelines to be reviewed and approved by the <br />EDC at a later meeting. <br /> <br />4. Review RLF Guidelines with the Minnesota Department of Employment and Economic <br />Development to verify consistency with any state requirements. <br /> <br />5. Present RLF Guidelines to the EDA for final approval. The presentation would also <br />include an overview of how loans will be serviced and how the approval process will be <br />structured. <br /> <br /> <br />Carroll’s Furniture Redevelopment Update <br /> <br />At the City Council Work Session on May 12, 2014, staff provided an update on U.S. Bank’s <br />efforts to sell the former Carroll’s Furniture property at 1203 County Road E. The <br />councilmembers discussed whether revolving loan funds could be used as an incentive for a