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<br />Rf)SBVIbbE <br /> <br />Memorandum <br /> <br />To: <br /> <br />Roseville Local Development Corporation, <br />Neal Beets, City Manager <br /> <br />From: <br /> <br />Cathy Bennett, Economic Development Specialist <br />Dennis Welsch, Community Development Director <br /> <br />Date: <br /> <br />January 27,2003 <br /> <br />Description: <br /> <br />Annual Meeting of the Local Development Corporation <br />January 27, 2003 <br /> <br />1.0 BACKGROUND <br /> <br />1.1 The City's Local Development Corporation was formed in 1988 with the purpose of <br />securing Federal Housing and Urban Development (HUD) funds to establish a low <br />interest loan program specifically for Villa Park. The purpose of the loans was to provide <br />seniors with an alternative for financing the purchase of condominiums at Villa Park, <br />therefore making many of the units affordable. For the City to secure the HUD funds for <br />this purpose, HUD required the establishment of a Local Development Corporation <br />(LDC). This enabled the City to collect the program income once the loans were paid <br />back. The program income must be used under the HUD guidelines for low-moderate <br />income residents. <br /> <br />1.2 There are currently three loans outstanding with residents in the Villa Park complex. The <br />LDC is collecting the interest only on these loans. They are due and payable in full upon <br />sale of the Villa Park unit. <br /> <br />1.3 The Council, as the Board of Directors of the LCD, is required at least to meet annually to <br />elect new officers. In addition, the LDC may call periodic meetings throughout the year <br />as needed. <br /> <br />1.4 At the 2002 annual meeting the Council requested that staff research the continued need <br />for the LDC. In discussion with Ramsey County, it was recommended that the LDC <br />remain in force until all of the loans are repaid. Once the loans are fully paid, the LDC <br />could be abolished. Ramsey County also suggested that the use of the program income <br />currently collected could be used by the newly established HRA in Roseville for eligible <br />projects that serve low-to-moderate income residents. The HRA primarily has the same <br />authority as the LDC for use of the federal funds. <br /> <br />LDC Memo to Manager (012703) - Page 1 of 2 <br />