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<br /> <br /> <br /> <br /> <br /> <br /> <br />CITY OF ARDEN HILLS, MINNESOTA <br />ECONOMIC DEVELOPMENT COMMISSION <br />NOVEMBER 6, 2013 8:00 AM <br />CITY HALL -- 1245 WEST HIGHWAY 96 <br /> <br /> <br />3. UNFINISHED AND NEW BUSINESS <br /> <br />B. Revolving Loan Fund <br /> <br />Community Development Intern Bachler gave a presentation on the background of the City’s <br />revolving loan fund including its history 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 /> <br />Commissioner Erickson 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 /> <br />Commissioners discussed the origins of the revolving loan fund and its inactivity for the past <br />several years. <br /> <br />Commissioner Altstatt inquired about the balance of the fund and whether it could be used to <br />improve real estate. <br /> <br />Community Development Intern Bachler 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 /> <br />Commissioner Heikkila asked whether loan funds could be used for appraisals or <br />environmental assessments. <br /> <br />Community Development Director Hutmacher responded that the EDA had indicated that <br />they did not support using loan funds for professional fees. <br /> <br />Commissioner Erickson 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 />clearly defined. Apprehensions that the loan approval process could be lengthy and uncertain <br />could cause businesses to be unwilling to participate in the program. <br />