Laserfiche WebLink
______________________________________________________________________________ <br />City of Arden Hills <br />City Council Meeting for October 23, 2017 <br />P:\Planning\Economic Development\Business Subsidy & Public Financing\Revolving Loan Fund\MIF State Funded <br />RLF Request for One-Time Exception\City Council Meeting - 10-23-17 <br /> <br />Page 1 of 2 <br />CONSENT ITEM – 5F <br /> MEMORANDUM <br /> <br />DATE: October 23, 2017 <br />TO: Honorable Mayor and City Councilmembers <br /> William S. Joynes, Sr., City Administrator <br /> <br />FROM: Matthew Bachler, Senior Planner <br />SUBJECT: Minnesota Investment Fund State Funded RLF Request for One-Time Exception <br /> <br />Requested Action <br /> <br />Motion to approve Resolution 2017-042 authorizing the submittal of Minnesota Investment Fund <br />State Funded RLF Request for One-Time Exception. <br /> <br /> <br />Background <br /> <br />The 2017 omnibus jobs bill passed by the State Legislature includes language that allows more <br />flexibility in the use of local revolving loan funds seeded through the Minnesota Investment <br />Fund (MIF) program (Attachment A). A city that has uncommitted money received from <br />repayment of an MIF loan may transfer 20 percent of the balance of that money to the State <br />general fund before June 30, 2018. Any local entity that does so may use the remaining 80 <br />percent of the uncommitted money as general purpose aid for any lawful expenditure. Once the <br />funds have been transferred out of the Revolving Loan Fund account, the city is required to <br />submit an accounting of the use of the funds by February 15, 2019. The required form for <br />applying for the one-time exception with DEED has been included in Attachment B. <br /> <br />The City partnered with Cardiac Pacemakers, Inc. in 1998 on a grant awarded through the MIF <br />program. A $100,000 portion of this loan was repaid to the City and was used to capitalize a <br />Revolving Loan Fund (RLF). The balance in the RLF is estimated to be $170,266 as of August <br />31, 2017. The City has not used the RLF to finance any business development or expansion <br />projects since 2004 and there are no outstanding loans that the City is awaiting repayment on. <br /> <br />This item was discussed at the Economic Development Authority meeting on July 24, 2017 and <br />the City Council Work Session on September 18, 2017. The City Council was supportive of <br />applying for the one-time exception. If the City Council chooses to take advantage of the