11-17-1994 - Laserfiche WebLink

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• Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Economic Development Coordinator Date: November 10, 1994 Agenda Item: Discussion Regarding Financial Need of Mounds View Businesses (5c) and the Structure of a Business Assistance Program. At the last meeting it was suggested to review what Mounds View businesses need in terms of financial assistance to improve and sustain the business climate and the type of programs the City of Mounds View should to fulfill the needs of the community. The following is a brief analysis of the 69 completed surveys from the North Metro Retention Program: • approximately 41% place a high to medium priority on additional capital to assist their business ♦ Of those that placed a high to medium priority on financing, • 14% needed to finance facilities • 11% capital equipment . • • 21% working capital 10% inventory • 10% answered that financing was very important in making expansion or relocation decisions. ♦ Only 9% of the companies requested more information regarding financing assistance. In evaluating the kind of assistance the City should provide to local businesses and for the attraction of new businesses, it may be useful to review what is currently available. • Tax Increment Financing - can be used for purchase of land and public improvements. The use of TIF must fit specific requirements -- namely that the development would not happen without this assistance. • State Economic Recovery Grant - Funds provided to a City to start a revolving loan fund. To be eligible the City must apply for a particular qualifying company. This program is very restrictive and competitive with all other cities in Minnesota. The City may receive up to $500,000 in any one year under this program. • Ramsey County Business Loan Program - Businesses can apply for a low interest loan for equipment or the development of land and building. This loan typically provides the gap financing and is packaged with private funds. Again, this program is very competitive hiring which mandates the to enter into an and there is a hiring requirement ��iw id company agreement to hire a percentage of new employees through the County's JTPA Program. I have included information on some of these programs and a sample of other programs offered by Cities in Minnesota. At the EDC meeting we will discuss the direction of the assistance program with regards to types of loans, targeted industries and eligibility requirements.