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<br />I- .... <br />1 CITY OF ARDEN HILLS <br />fj <br /> MEMORANDUM <br />1 DATE: October 15, 1997 <br /> TO: Kevin Ringwald, EDA Executive Director <br />1 Brian Fritsinger, EDA Secretaryrrreasurer <br /> Terrance Post, EDA Controller ~ <br /> FROM: <br />1 SUBJECT: Preliminary 1998 EDA Budget Discussion <br />I Background <br /> As part of the 1998 budget planning process, four (4) new Funds have been created in the <br />I accounting system database to support Economic Development Authority (EDA) financial <br /> transactions. The new Funds have largely been carved out of the previous Capital Fund No. 522, <br /> "DevelopmentlRedevelopment." Following is a brief discussion about the new funds. <br />I l. Fund No_ 702 - Revolving Business Loan Fund <br /> It is anticipated that future joint projects with the Minnesota Department of Trade and <br />Ie Economic Development (D/TED) will not have the characteristics of the $300,000 grant <br /> given to CPI/Guidant in 1997, but will be of the more traditional forgivable loan <br /> program. For these cases, the municipality is able to be repaid a $100,000 loan plus <br />1 interest from the benefitting D/TED target business. These loan repayments can be <br /> accumulated and used to assist local businesses. The EDA Conunissioners have already <br />I addressed the guidelines for local business assistance with the action taken at the August <br /> 24, 1997 EDA meeting. <br />I 2. Fund No. 703 - Tax Increment Financing (TIF) District No.1 - Round Lake Housinl! <br /> This is an Economic Development district which was created on June 29, 1989, and will <br /> require to be decertified on December 31, 1999. Tax increment was first received in <br />1 1993, and originates from the Brueberry townhouse development. The approximate <br /> $40,000 in tax increment received from this district has been, and will continue to be <br /> used, to be applied toward the remaining debt obligation incurred by the Permanent <br />I Improvement Revolving (PIR) Fund for the Kern Milling site land acquisition/demolition <br /> costs incurred within the TIF District No.2 - Round Lake office. <br />I 3. Fund No. 704 - TIF District No.2 - Round Lake Office <br /> This is a Redevelopment district which was created on June 29,1989, and will require to <br /> be decertified on December 31, 2015. Tax increment was first received in 1990, but has <br />1 been reduced to "$-0-" in 1996 because of the "knockdown" of various parcels due to <br /> inactivity. It is anticipated that this district will become quite active shortly due to Welsh <br />Ie Company development activities, approximately $2.7 million in public improvement <br />I <br />