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HomeMy WebLinkAbout08-25-97 MINUTES DRAFT CITY OF ARDEN HILLS,MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY MEETING AUGUST 25, 1997 7:15 P.M. -NEW BRIGHTON COUNCIL CHAMBERS CALL TO ORDERIROLL CALL Pursuant to due call and notice thereof, President Dennis Probst called to order the Economic Development Authority (EDA) meeting at 7:17 p.m. Present: President Probst; Commissioners Aplikowski, Hicks, Keim and Malone Absent: None Also present were: Executive Director, Kevin Ringwald, Secretary/Treasurer, Brian Fritsinger; Controller, Terry Post; City Public Works Superintendent, Dwayne Stafford; City Engineer, Greg Stonehouse; City Administrative Secretary, Sheila Stowell, and Recording Secretary, Cindy Schneider. APPROVAL OF MEETING AGENDA • MOTION: Aplikowski moved and Keim seconded a motion to adopt the agenda for the August 25, 1997, Economic Development Authority meeting as presented. The motion carried unanimously(5-0). APPROVAL OF APRILS 14, 1997 MINUTES Commissioner Malone requested the following changes to the minutes: Page 1, last paragraph: Insert the word means after"electronic". Page 2, MOTION: Strike the word do, after"Council" insert might; after"need to" insert do in order to; after"ratify" strike of; after"the" insert actions of the. MOTION: Aplikowski moved and Hicks seconded a motion to approve the minutes as amended. The motion carried unanimously (5-0). • ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY - At,JGUST 25, 1997 2 UNFINISHED AND NEW BUSINESS Creation of Revolving Loan Fund Mr. Kevin Ringwald, Executive Director, provided a brief overview of draft guidelines for the creation of a Revolving Loan Fund (RLF). Mr. Ringwald stated that with recent funding received from the Minnesota Department of Trade and Economic Development(D/TED), the City normally receives the first $100,000 of loans for loan initiation, employment verification, and other administrative purposes. The City is scheduled to receive a combined amount of approximately $750,000 in loans for the CPI, Tycom and Manufacturer's Services Ltd. projects. Mr. Ringwald stated that, as those loans are repaid, the City will be acquiring a sizable revolving loan fund, and needs to have established guidelines for re-use of those funds. Upon completion of the City's Revolving Loan Fund guidelines, they will be submitted to D/TED to ensure funding received by the City is used to create additional jobs, is redirected to other businesses, and to monitor other rational and specific criteria for loan recipients. Mr. Ringwald suggested several options the EDA may wish to consider to target these funds as they become available. Mr. Ringwald reviewed three areas that D/TED uses; geography,job creation and/or retention; and how the funds are leveraged. Mr. Ringwald suggested the EDA may wish to consider specific areas within the City to focus monies for future development, suggesting the Gateway Business Development, existing corporate campuses, and future development in the Lexington Avenue - Grey Fox Road, and . TCAAP areas. As the EDA considers job creation and retention, Mr. Ringwald suggested they may wish to consider using the guidelines developed by D/TED, using a specific funding amount depending on the number and category of jobs created and/or retained. When considering how funds are to be leveraged, Mr. Ringwald suggested the EDA may wish to provide suggested limits or specific application procedures in the Revolving Loan Fund guidelines to ensure applicants are applying for funding from sources other than just specifically City funds. Mr. Ringwald stated Staff has prepared guidelines and philosophies for the EDA to discuss and provide feedback on. He stated it would be in City's best interest to have these guideline in a final format soon, to begin the process of the CPI and Tycom Ioans. President Probst inquired regarding other City's guidelines in this type of situation. Mr. Ringwald stated Arden Hills is more conservative compared to other cities in this respect, and offered one specific area in which our RLF guidelines differ was in the number of existing corporate campuses. Mr. Ringwald stated that many cities, in their business development efforts, provide a"but for" philosophy, stating that without this funding, the business would not locate in the city or continue to operate. ARDEN HILLS ECONOMIC DEVELOPMENT A ITHORITY - AUGUST 25. 1997 3 Mr. Ringwald stated that, due to the existing companies already established in Arden Hills, and their other available resources, this philosophy would not be applicable to Arden Hills. Mr. Ringwald stated that, from Arden Hills' standpoint, we have a wealth of corporate campuses, and want to encourage their continued growth and development and continue to leverage good paying jobs within the community. President Probst requested clarification that the minimum ratio of funds is 2:1; with the intention being a minimum of$2.00 for every $1.00 of loan money. Mr. Ringwald stated that was correct. President Probst inquired if the guidelines could be modified if and when it became necessary. Mr. Ringwald stated they could be, as the Tycom and MSL loan terms will be more long-term, however the CPI loan is proposed to be repaid over a shorter term, which is why these guidelines need to be established in the immediate future. President Probst suggested using these funds in the Lexington Avenue - Gray Fox Road area, since construction in the Gateway Business District is coming along well at this time. Mr. Ringwald stated the guidelines and philosophies can be revised as needed and in practice. Mr. Fritsinger added that D/TED would be looking for the City to provide firm guidelines for their approval, and that it was common for each city's requirements to fluctuate regarding specific community needs. Commissioner Malone inquired if the correct word in Item 11 in the Criteria section should be "can" or"can't". Mr. Ringwald stated it should be "can't" and would be corrected. President Probst inquired if action was needed to approve the guidelines at this time. Mr. Ringwald stated the EDA could approve them at this time, or continue discussion if needed. MOTION: Keim moved and Malone seconded a motion to approve the Guidelines for the Revolving Loan Fund as submitted. The motion carried unanimously (5-0). ADJOURN MOTION: Malone moved and Aplikowski seconded a motion to adjourn at 7:31 p.m. The motion carried unanimously (5-0). Dennis Probst Brian Fritsinger President Secretary-Treasurer