Res. #05-033 - Participation in TCCCF Program

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5/412018 Economic development tool for cities dissolved-StarTribune.com Woodbury,which participated at the hind's highest level,for now will probably put the refund into its Economic Development Authority account.'Dw city has not yet made plans to shift to the statewide fund,said Planning and Economic Development Manager janelle Schnnoz. The City Council was Philosophical about the loss of about$10,000,she added,saying it was worth$2,000 a year to have access to capital for Woodbury businesses even though no to actually panned out. "It was one of those things where you want it to be there if somebody should need to access those dollars,"she said. Cities that transfer their assets to the statewide food may have to continue to sit tight until the markets recover,Martin said.However,the group is launching two smaller to programs,one for energy efficiency improvements and another for businesses s a&,at mortgage,Both will be funded by a private investor. MCCF is also looking at other sources of funding or security,including a proposal to have the state guarantee at least part of each loan. These kinds of fimds are tricky,said University of Minnesota economics professor V.V. Chart.Business to are always risky,and these have the added problem of insulating the borrower from a savvy lender's gut business mariners.And then there's the economy. "It's not surprising that this fund folded,"he said,"because these are exceptionally difficult times for everybody and these difficult times I'm sure haven't spared funds like this.. Still,Martin says he believes in the model and that under"no rmal"chournstances the fund would have thereof. "If we could say for a fact that two or three months from now we'd be back to normal, maybe we would not have made that decision,"he said."But I couldn't tell thern that." Maria Elena Baca-612-673-4409 http:itwww.startribune-oomleconomi"evelopment-tool-for-cfties-dissolved/l06494163/??c-y&page=l 212