04-28-2004 Council Agenda - Laserfiche WebLink

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August 14, 2002 BUSINESS The City Administrator reviewed draft guidelines for the Business REVOLVING Revolving Loan Program. He noted that the Planning Commission has LOAN reviewed these guidelines and has recommended approval. FUND The Council discussed the fact that the special assessment process cannot be used to recover loans that go into default. Therefore, there is a risk to the City. However, the valuation of the property should be sufficient to cover both the bank's position and the City's subordinate position. Council discussed the use of the loan program for exterior maintenance items, and Fahey expressed concern with including such items as roof replacement. The City Administrator noted that in reviewing a request for a building permit for exterior improvements, the Building Official may require a code compliance improvement as part of the building permit. Fahey suggested that maintenance items add no value to the project, and felt that the loan program should limit funding for improvements that fall into the maintenance category. Anderson suggested that the guidelines include a basic total discretion clause in the eligibility criteria which would allow loan applications to be accepted or rejected for any reason at all. Fahey agreed that loan application approval of disapproval should be at the sole discretion of the EDA. The Administrator pointed out that some applicants may ask for the maximum loan amount while putting additional private money into the project. That scenario was acceptable to the Council. Anderson suggested some wording changes relative to Item 3.H. and increasing the review period to 30 days. The rest of the Council found these suggested changes acceptable. Council also felt that exterior maintenance items such as roofing should remain in the guidelines at this point given the addition of a total discretionary clause. The City Administrator indicated that he would put the guidelines into final form and review them with local banks to determine their interest in participating. Once that input is obtained, he will bring the guidelines back to the Council for adoption. 2