07-09-2002 Council Workshop Minutes

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MINUTES CITY COUNCIL JULY 9, 2002 Administrator will put together a final action plan for presentation to and review by the Council. Establish business revolvin2loan fund. Council reviewed the proposed action plan for implementation of a business revolving loan fund. "fhe City Administrator suggested that the program be focused on retail properties. Fahey asked if there were any statutory limitations on the amount of money the City could loan. The City Administrator indicated that he would research that question- The Administrator revie~n~ed the list of possible funding sources and noted the potential of $125,000 from the Presbyterian Homes economic development fee. Another possible use of these dollars, however, is the Little Canada Road area. Council discussed the need for the development of parameters by which funding requests would be considered and prioritized. Suggestions included needs-based, target areas, random selection, compliance with the City's architectural guidelines, most impact, etc. The City Administrator suggested that he put together some draft criteria guidelines for the Council's review, Fahey suggested that the program also inclr~rde a provision that addresses the potential of default on Chese loans and grants the City the ability to collect unpaid loan amounts through a special assessment on the property. The City Administrator indicated that lenders might not agree with a provision of this nature since taxes take precedence over mortgages. However, he will discuss this with the lenders. Council discussed the eligible improvements listed in the plan, and the consensus was Co eliminate maintenance items such as rooting and tixed improvements as listed in the plan, as well as handicapped access. Council indicated that they would prefer the loan program to focus on fapade upgrades rather than maintenance items. Montour suggested a review of funding sources with the thought that if there are adequate dollars available for the program, loans would not need to be limited to a maximum of $25,000. Fahey suggested that the City starrt slow with the program noting that it can always be expanded should it prove successful. Council discussed involving the Planning Commission in the development of the program as well as the Economic Development Authority in its administration. The Council also discussed establishment of a committee that would review loan applications and make funding recommendations. The Council unanimously agreed that the Treasurer of the EDA would chair this committee.