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<br />-------------- <br />UKAt I <br />ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY - AUGUST 25. 1997 2 <br />UNFINISHED AND NEW BUSINESS - <br />Creation of Revolving Loan Fund <br />Mr. Kevin Ringwald, Executive Director, provided a bricf overview of draft guidelincs for the <br />crcation of a Revolving Loan Fund (RLF). Mr. Ringwald statcd that with recent funding <br />received from thc Minnesota Dcpartment of Trade and Economic Development (DITED), thc <br />City normally rcccives thc first $100,000 ofloans for loan initiation, employmcnt verification, <br />and other administrative purposes. The City is scheduled to receive a combincd amount of <br />approximately $750,000 in loans for the CPI, Tycom and Manufacturer's Services Ltd. projects. <br />Mr. Ringwald stated that, as thosc loans are repaid, the City will be acquiring a sizable revolving <br />loan fund, and needs to have establishcd guidelines for re-usc of thosc funds. Upon completion <br />of the City's Rcvolving Loan Fund guidclincs, they will bc submitted to D/TED to ensurc <br />funding received by the City is used to crcate additional jobs, is rcdirccted to other businesses, <br />and to monitor othcr rational and specific critcria for loan recipients. <br />Mr. Ringwald suggested several options the EDA may wish to consider to target these funds as <br />thcy become availablc. Mr. Ringwald reviewed three areas that D/TED uses; geography, job <br />creation and/or retention; and how the funds are leveraged. <br />Mr. Ringwald suggested thc EDA may wish to considcr specific areas within the City to focus <br />monies for future development, suggesting the Gateway Business Devclopment, existing - <br />corporate campuses, and future dcvelopment in the Lexington Avcnuc - Grey Fox Road, and <br />TCAAP areas. As the EDA considers job creation and retention, Mr. Ringwald suggested they <br />may wish to consider using the guidelines dcvclopcd by DITED, using a specific funding amount <br />depcnding on the number and category of jobs created and/or retained, <br />When considcring how funds are to be leveraged, Mr. Ringwald suggested thc EDA may wish to <br />providc suggestcd limits or spccific application procedurcs in the Revolving Loan Fund <br />guidelines to ensure applicants arc applying for funding from sources other than just specifically <br />City funds. <br />Mr. Ringwald stated Staff has preparcd guidelines and philosophies for thc EDA to discuss and <br />provide feedback on. He stated it would be in City's best intcrest to have these guideline in a <br />final format soon, to begin the process ofthe CPI and Tycom loans. <br />President Probst inquired regarding othcr City's guidclincs in this type of situation. Mr. <br />Ringwald stated Ardcn Hills is more conservative compared to other cities in this respect, and <br />offered one specific area in which our RLF guidelines differ was in thc number of cxisting <br />corporate campuses. Mr. Ringwald stated that many cities, in their busincss development efforts, <br />providc a "but for" philosophy, stating that without this funding, the business would not locate in <br />thc city or continue to opcrate. <br /> - <br />-----....-.---- <br />