06-04-14 EDC - Laserfiche WebLink

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ARDEN HILLS EDA MEETING – APRIL 28, 2014 4 Associate Planner Bachler requested that the EDA provide feedback and direction on proposed changes to the EDA Revolving Loan Fund. EDA Commissioner Holden questioned how grants were factored into this program. Executive Director Hutmacher reported that there were not a lot of grants available for businesses. Associate Planner Bachler believed that the City would be willing to partner with businesses on a loan if they had received a grant. EDA Commissioner Holden thought that this was a great policy for non-TCAAP properties, but did not want to see it made available to small businesses in TCAAP. EDA President Grant agreed and suggested that applications for the revolving loan fund go through the EDC, with recommendations then made to the EDA. Executive Director Hutmacher discussed the process preferred by local banks, noting a smaller subcommittee was recommended to streamline the process. EDA Commissioner Holmes questioned how the $155,000 would impact local businesses. She asked if the money should be given back to DEED. James Ostlund, Financial Planning and & Analysis Committee, suggested that the decision making process be outsourced to Central Minnesota Development Company (CMDC) or that banks be allowed to decide. He believed that the loans would impact small businesses and should proceed. EDA President Grant agreed that the EDA did not have a lot of additional time to review these matters. He did not want future loan requests to become ‘analysis paralysis’. He supported the requests being reviewed by the FPAC or EDC, or having the requests come straight to the EDA. EDA Commissioner McClung did not want to overwhelm staff by these requests either. He encouraged the loan review process be streamlined as much as possible. EDA Commissioner Holden suggested that staff and a banker review the requests and that a recommendation be made to the EDA. Executive Director Hutmacher stated that CMBC would be an option that would reduce the need for additional staff time and subcommittee review. EDA President Grant supported this recommendation.