08-14-2002 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ciAittle-eanada.mn.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: August 9, 2002 RE: Draft Guidelines for Business Revolving Loan Fund MAYOR Michael 1. Fahey COUNCIL Beverly Sealze Jim LaValle Matt Anderson Rick Montour ADMINISTRATOR Joel R. Hanson Attached are the draft guidelines for the Business Revolving Loan Fund. They are model largely after those in place in Columbia Heights and based on the past comments of the City Council when they were reviewed during our action plan workshop. The Planning Commission reviewed them at their August 8th meeting and recommended approval. You may want to spend more time on the governance aspects of these documents to ensure administration of the program occurs the way you would like it to. You will note that I did not completely follow your guidance from the workshop meeting. Specifically, I did not delete roofing, handicapped accessibility, and interior improvements for the eligible improvement listing if these improvements are needed to address existing code deficiencies. My reasoning is that if certain code violations exist, the business will have to address those concems as part of our building inspection process. My concern is we would seem to be remiss if we did not require the correction of life /safety violations with a project we assisted in financing. This topic will merit further discussion on your part. One other item of note is the City Attorney reviewed the possibility of using special assessments to provide additional security to the loan we make. He stated that was not possible for the following reasons: • EDA's don't have powers to specially assess ® City's cannot assess for this type of purpose as it is not authorized under Minnesota Statutes Chapter 429. ® Banks would oppose this type of provision as it would jeopardize their security position for their portion of the loan. (We will be subordinate to them.) Please provide whatever input you feel is appropriate.