07-27-1998 - Laserfiche WebLink

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• Page 3 EDA July 27, 1998 Quick asked how prospective program participants would be qualified. Dorgan stated the person would go to the lender and the llender would establish their household income. The lender would then determine if the proposed work was on its list of qualified improvements. When all conditions of the approval process are met the bank or other lender issues the loan with the City being responsible for subsidizing the loan interest. MOTION/SECOND: Koopmeiners/Stigney to direct staff to develop a Home Improvement Loan Interest Subsidy Program and set the proposed program on a future agenda for action or further discussion. VOTE: Ayes - 5 Nays - 0 Motion carried C. Consideration of Resolution No. 98-EDA-96, Modifying the Business Improvement Partnership Loan Program in certain respects. Carroll gave his report as follows: • Staff is recommending the reactivation of the Business Improvement Partnership Loan Program that had been started in 1995. This Program was developed to assist local businesses in the expansion or improvement of their operations. The program is, or could be, one of the most visible manifestations of the city's commitment to improving the local business climate. If handled properly,the Program could engender good will and generate favorable publicity for the businesses that recieve assistance and for the City itself. The 1998 budget allocates $45,000 for Business Improvement Partnership Loans none of which has apparently been loaned,to date. The Program should first be specifically targeted to conforming businesses that are located in buildings that are structurally sound,but that are unattractive, inefficient, outdated, or in need of improvement or renovation for other valid reasons. An effort should be made to avoid generating more interest than the City has the financial means to accommodate in order to minimize ill will and/or claims of favoritism with respect to those who do receive loans. City money should not be used to improve nonconforming uses that the City may eventually want to eliminate or relocate. Loan funds should be used in a manner that would produce visible results, thereby improving not only the business in question but also the overall appearance of the City's business district. Staff is recommending eliminating the requirement that a business be in operation in Mound View for two years before becoming eligible for the Program. Given the fact that loan proceeds