Laserfiche WebLink
Mounds View EDA November 8, 2010 <br />Regular Meeting Page 2 <br /> <br /> <br />Economic Development Specialist Steinmetz reviewed with the EDA the proposed changes to <br />the Loan Program Criteria. She indicated the EDA has been discussing this item for several <br />months and the most recent draft has a summary of changes highlighted in yellow. An asset limit <br />was written in to Loan Option 4, which was recommended by the GMHC staff. Staff <br />recommends approval of the draft home improvement loan program criteria. If approved staff <br />would discuss administrative under writing fees with GMHC in further detail and would bring <br />forward an agreement to the EDA. <br /> <br />Commissioner Mueller asked if the demolition loan was for 10 years, or if it was due upon sale <br />of the property. She recommended these statements within the criteria be conjoined so as not to <br />appear there is an option. <br /> <br />Vice President Stigney questioned if the EDA should have greater knowledge of the GMHC fees <br />prior to advertising this loan program. Economic Development Specialist Steinmetz indicated <br />she would not begin marketing the program if the EDA advised. <br /> <br />Vice President Stigney asked how loans would be handled if defaulted on by a resident. <br />Economic Development Specialist Steinmetz indicated the City could potentially be out the <br />money. <br /> <br />Vice President Stigney questioned what action the City could take and if the City had no options, <br />he had a problem with the criteria in this program. Economic Development Specialist Steinmetz <br />indicated the City would be second in line to be paid if a home were to be foreclosed. <br /> <br />President Flaherty asked if the City had the right to put a lien on the property. Community <br />Development Director Roberts stated the loan was a lien. He indicated if the property were to <br />sell, the lien would be paid, but if foreclosed it potentially would be negated. <br /> <br />Commissioner Hull questioned how this type of program worked in other cities. Economic <br />Development Specialist Steinmetz stated all were written in the same manner and these loans <br />were never paid back first, prior to a home mortgage. She explained the City would be at a slight <br />risk with these loans. <br /> <br />Vice President Stigney wondered if a City loan could be tacked on to property taxes if defaulted. <br /> Economic Development Specialist Steinmetz was uncertain if this was an option. <br /> <br />Vice President Stigney requested that GMHC fees be waived if a loan within the City were <br />defaulted. Economic Development Specialist Steinmetz indicated she would investigate this <br />further with GMHC. <br /> <br />Vice President Stigney stated the general home loan should be rewritten to ensure that this loan