05-11-2004 Council Agenda - Laserfiche WebLink

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29GY6 `CJtniCLGCa 515 Little Canada Road, Little Canada, MN 551171600 (651) 766 -4029 / FAY: (651) 766-4048 www. ci. little- canada. mn. us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: May 7, 2004 RE: Implementation of Business Revolving Loan Fund Program MAYOR Michael L Fahey COUNCIL Jim LaValle Matt Anderson Rick Montour Bill Blesener ADMINISTRATOR Joel R. Hanson Attached are the revised documents for the Business Revolving Loan Fund (BRLF). I have made the changes requested by US Banlc. They are indicated with underlining /strike through on all documents except the participation agreement. This document was dramatically different and I have used the format they will approve. Loan targeting was another issue you wanted a recommendation on. In thinking about this further, my main concern is do we want to try to avoid lending money to properties that we think are candidates for redevelopment'? The best example of this concern would involve Ultimate Golf, Tierney's Liquors, and Lincoln Pawn based on our earlier redevelopment objectives. Presently, there are no plans to redevelop these properties. If we believe that won't change, then I do not believe they should be disqualified from eligibility. If you feel otherwise, we should discuss this issue. If we want to target specific properties, I would recommend both Round Lake and Thunder Bay shopping centers. I would also target the Market Place Shopping Center's pylon sign. If we believe Ultimate Golf, Tierney's, and Lincoln Pawn will not be redeveloped, then I would include them as well. As you can tell, I am basically targeting those properties in the redevelopment area. Othenvise, any business that meets the criteria should be allowed to participate, as I believe there are a number of them who could benefit from this program. The level of funding is another item we need to make a decision on. We have $150,000 available. At the last meeting, it was suggested we start slow. Based on that comment, I would recommend we allocate $75,000 to kick off the program. It should also be noted that I have confirmed with Mary Ippei of Briggs & Morgan that the development fee paid by Presbyterian Homes for the Mayfield is ours to do with as we please. (The initial fee was a deposit set aside to offset our costs for the LGA/HACA penalty we were to face as part of the TIF program. However, the legislature eliminated this provision as part of property tax reform. I would recommend approval of the program guidelines as revised.