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3) Business Improvement Partnership Program The City's Economic Development Authority has a vested interest in helping • Mounds View businesses thrive and prosper while improving the aesthetics of the commercial, industrial, and retail sectors of the community. Accordingly, the Mounds View Business Improvement Partnership Program has been established to partner with local businesses by providing 2% interest loans for exterior and interior building improvements. Who can apply: Any business owner with a facility or property located in Mounds View. How does the program work: The City's Economic Development Authority, in partnership with local banks, will provide improvement loans to existing Mounds View businesses at a minimum of $10,000 and a maximum of $50,000. The City participates by providing half of the loan amount at a 2% interest rate. Contact Jim Ericson at 763-717-4021 for additional information regarding eligible improvements program criteria. 4) Bonds used for Development By state law cities can issue bonds. These debt instruments can be taxable or tax-exempt. Not all bonds are general obligation. Pure revenue bonds are also common, especially for development. Bonds can be used to pay project costs and for the first two or three years of interest payments. This reduces the need for short-term revenue. There are several types of bonds the City could consider in its toolbox: • a) Revenue Bonds. Various bonds used to finance industrial, commercial and medical facilities, multifamily rental housing, nursing homes and some nonprofit activities. b) Industrial Revenue Bonds. Allows cities to issue tax-exempt bonds to finance fixed assets. In the typical transaction, the city issues the bonds and becomes the legal owner of the asset (e.g. building). The City then leases back or sells the asset to the company. The firm's repayment coincides with bond payback. c) Essential Function Bonds. Certain types of economic development are considered by the state to be "essential functions" of a city. Sometimes called "housing revenue bonds", these bonds are not backed by the general fund, revenues generated by the project pay the bond, can be used for a variety of housing options (market and nonmarket rate). d) Common Bond Revenue Bonds. State and local governments may issue tax-exempt or taxable revenue bonds on behalf of private borrowers to provide lower interest rates on long-term financing. In general, manufacturing, medical facility, nonprofit or nursing home projects are eligible for tax-exempt revenue bonds and those issued for commercial projects are taxable. Bonds issued through the Common Bond Fund are investment-grade instruments with a rating based on the security provided by the fund. e) Bank Qualified Bank Direct Tax-Exempt Loans. These are cost- • effective tax-exempt financing for capital projects for small manufacturing companies and nonprofit organizations.