2018-12-05 EDA Packet (3) - Laserfiche WebLink

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WHITE BEAR LAKE HOUSING AND REDEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) I. BACKGROUND In the fall of 1989, the White Bear Lake Area Economic Development Corporation (the "WBLAEDC") began a program of downtown revitalization. This effort was started to aid in strengthening the downtown's vitality in terms of market share and physical appearance. A significant finding that came from these efforts was the need to develop financing techniques that encourage existing businesses to begin the process of reinvesting in their commercial properties. Working with the City, the Corporation has designed a Revolving Loan and Grant Program (RLGP). The RLGP is aimed at improving the utility and appearance of downtown businesses while encouraging the leveraging of private investment which would otherwise not occur. The program provides front-end financing for small loans at below market interest rates for up to a 10-year term. The White Bear Lake RLGP established a public/private partnership where an initial $150,000 public loan/grant pool was made available by the White Bear Lake Housing and Redevelopment Authority (the "HRA") to assist downtown businesses to make eligible physical improvements. The program is designed to address redevelopment needs in the City's redevelopment project area. Although the White Bear Lake RLGP is targeted toward downtown businesses, all existing businesses within the City's project area (see attached boundary map) are eligible to participate in the loan program. The program provides loans up to $40,000 for a term of up to 10 years at two percent interest. Revolving loan program participation requires a 100 percent match by an authorized participating financial institution. To be eligible, a financial institution must be located within the corporate limits of the City of White Bear Lake. Financial institutions have agreed to service the loans and to provide their match at a competitive market interest rate. The White Bear Lake RLGP is operated with the following program goals: • The program provides affordable financing to small businesses for program eligible real estate improvements. • The program will be targeted to downtown businesses with other businesses located in the City's redevelopment project area also eligible. • The program will serve as a catalyst to leverage private resources. • The program will require that improvements be consistent with design guidelines approved and administered by the City. • The program will be operated as a revolving fund. The program is administered by the HRA under the guidance of policies set by the WBLAEDC, City Council and HRA. 111