Laserfiche WebLink
EDC Minutes <br /> July 15, 2016 <br /> Page 3 of 10 <br /> policies in place for this program it is not funded. The program is meant for small <br /> businesses that have been established in Mounds View for a number of years looking to <br /> improve the fagade of their buildings in order to improve the aesthetics. There are other <br /> revolving loan programs that could be put into place, however without proper funding, <br /> these programs are not possible. <br /> Beeman informed the Commission that property acquisitions is one of the bigger <br /> unfunded programs. Staff keeps an inventory of vacant properties along with the square <br /> footage, current pricing, whether or not the owner has shown any interest in the past in <br /> selling and a list of developers specifying if they are residential or commercial <br /> developers and if they have shown any particular interest in specific parcels in the past <br /> including their timeline, and number of acres they are looking for, then we try to match <br /> them up. We try to identify the types of funding sources that may help them spur <br /> development. Because the City is limited in funding sources and has been reluctant to <br /> bond in the past, not to mention the Charter restrictions, etc. an EDA levy would help <br /> solve this problem. <br /> The next unfunded item is surveys. Sometimes it is necessary to complete surveys of <br /> the property before development can occur, this comes with an expense an EDA levy <br /> could help pay for this. <br /> Appraisals are also sometimes requested and necessary to negotiate a fair market <br /> value. Depending on the appraisal, some could be good for six months to a year. Again, <br /> an EDA levy could assist in this cost. <br /> EDA levy funds can also be used for professional fees. Whenever a transaction is taking <br /> place attorneys must be involved to draft legal documents and ensure the City is <br /> protected in development agreements and land transfers. Financial consultants analyze <br /> the project to determine its feasibility and if the subsidy is deemed appropriate according <br /> to State Statutes and helps keep the City out of legal challenges. <br /> An EDA levy can also be used for training and professional development which is <br /> needed to keep staff current on state statutes and economic development programs. <br /> Having well trained staff is good for business. It is a way for staff to keep current on <br /> State DEED programs and be able to explain those programs to developers. Good <br /> training also helps staff in preventing any missteps which could lead to costly lawsuits. <br /> Next, Beeman explained the chart listing all entities currently using EDA levies. Beeman <br /> explained that staff had surveyed the organizations listed on the chart and what those <br /> cities were using their levies for and if it has been effective. For example, the City of <br /> Columbus is using their EDA levy for advertising/branding, marketing, attracting new <br /> development and businesses and retaining current businesses, as well as the Shovel <br /> Ready program, and their website. <br /> Beeman found that the City of Dayton uses their levy for small incentives, a business <br /> summit, and other marketing to encourage new business. The City of Hutchinson mainly <br /> uses their levy for operations like paying & training staff. The City of North Branch uses <br /> their levy for multi-use housing and industrial development. Brooklyn Park used their <br /> EDA levy for the Open to Business program. Beeman has talked to other cities who <br />