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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.1ittle- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: June 17, 2005 <br />RE: TCCCF & Business Revolving Loan Program <br />;VIAYOR <br />Bill Blesener <br />COUNCIL <br />Jim LaValle <br />Rick Montour <br />Barbara Allan <br />John Keis <br />ADMINISTRATOR <br />Joel R. Hanson <br />Pursuant to our previous discussions, I have contacted three parties relative to their <br />impressions of the above referenced programs. The three people I talked with and their <br />reactions are as follows: <br />Dick Biagini — Developer of CI Title Building and new office structure on Country Drive: <br />I felt Dick might be a good source of opinion because he had a "gap financing" issue <br />with the construction of his last project. After reviewing the materials, he indicated that <br />TCCCF would not have resolved his gap financing concerns as "cash flow" versus "debt <br />availability" was the primary concern. He felt our BRLF would be a nice addition in helping <br />local businesses upgrade their properties. <br />Tom Duray — Owner of the Hoggsbreath. <br />Tom was a proponent of establishing the BRLF. He also said he favored the approach <br />of the BRLF, but felt the current guidelines could be more flexible in terms of allowable <br />improvements and the loan amount. He noted that it cost him over $25,000 to redo a portion <br />of his parking tot and that $50,000 may not accomplish enough. He also said that it would be <br />nice to address other concerns rather than just external aesthetics if a business were truly <br />upgrading. <br />Mary Jo Farrell — Branch Manager of US Banks in Little Canada. <br />Mary Jo will be involved from the Lender's side of the equation. She also favored the <br />BRLF. She further commented that it might be better to provide a higher loan amount and <br />allowable improvements to make the program more attractive. <br />Based on this information. I would recommend we abandoned interest in membership in the <br />TCCCF and focus on our BRLF, subject to the following revisions to the guidelines. <br />Increasing our loan :unount from $25,000 to $50.000 with at least a 50/50 match from <br />a private lender (thereby increasing funding from 550.000 to $100.000.) <br />- 1 - <br />