CCP 08-25-1997 - Laserfiche WebLink

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W CITY OF ARDEN HILLS . ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM DATE: August 25, 1997 TO: EDA Board of Commissioners FROM: K,,;. m'gw'ld, ..""Ii" OJ,,""' k- SUBJECT: Creation of Guidelines for Revolving Loan Fund RCQuest The EDA is requested to approve the guidelines for the Revolving Loan Fund (Exhibit A). Back~round The Minnesota Department of Trade and Economic Development (DTED) is annually allocated money from the legislature for the Minnesota Investment Fund (MIF). The purpose of the MIF is two-fold: first, it provides money (usually low interest loans) to companies who are creating or expanding businesses in Minnesota; secondly, it permits local governments for overseeing these loans to retain the first $100,000 plus interest, whereby, they may create their own revolving . loans for business creation or expansion. For receiving this low interest money, the businesses must create a certain number of jobs at a specific pay range. Typically, DTED will provide up to $5,000 per job. However, the amount per job is determined DTED on the desirability and salary of those jobs. Local governments may receive no more than $500,000 in MIF dollars per state fiscal year (SFY) which is from July 1 to June 30. The EDA is currently working with several companies through the MIF program: Cardiac Pacemakers, Inc. (SFY 1998), Tycom (SFY 1998), and Manufacturers Service Limited (SFY 1999). Cardiac Pacemakers, Inc., (CPI) is expanding their research and development facility in Arden Hills which it is hoped will lead to further expansion and the Arden Hills campus. The CPI proposal is for DTED to provide a $200,000 grant and a $100,000 loan, of which $100,000 plus interest would come back to the EDA. Tycom is a precision computer and medical device contractor who is relocating into the LexingtonIFox area. The Tycom proposal is for DTED to provide a $200,000 loan, of which $100,000 plus interest would come back to the EDA. Lastly, Manufacturers Service Limited (MSL) is a computer manufacturing subcontractor who is occupying Phase I of Gateway Business District and is anticipating doubling their employment to 900 within the next three years. The MSL proposal is for DTED to provide a $250,000 loan, o~ which $100,000 plus interest would come back to the EDA. Revolvin!! Loan Fund The Staff would suggest that the Board of Cornmissioners place parameters on the use of these funds, so that they are targeted towards development/redevelopment projects which are in . concert with the City's economic development policies.