Laserfiche WebLink
Mounds View EDA October 25, 2010 <br />Regular Meeting Page 3 <br /> <br />Commissioner Mueller expressed concern that the demolition assistance loans would make no 86 <br />payments until the property was sold. She did not intend for this to be a condition within the 87 <br />loan and felt interest payments could be made as this would become a revenue source for the 88 <br />City. Commissioner Mueller requested the demolition loans not be deferred. Economic 89 <br />Development Coordinator Steinmetz indicated a 3% interest rate could be set on this loan. She 90 <br />explained the EDC’s recommendation was to help eliminate blighted property in the City. 91 <br /> 92 <br />President Flaherty questioned if the City was prepared to carry a demolition loan for 30 years. 93 <br />He stated he was uncomfortable with the open-ended loan style. He requested the demolition 94 <br />loans be structured in such a way that the City could recapture funds. 95 <br /> 96 <br />Vice President Stigney stated the loan was fine as is. The deferred loan program would assist the 97 <br />City with removing blighted properties while creating improved residential homes. 98 <br /> 99 <br />Commissioner Hull didn’t feel people would apply for the demolition program if interest rates 100 <br />were charged. Economic Development Coordinator Steinmetz noted staff originally 101 <br />recommended a 0% interest deferred loan. She explained a member on the EDC was a banker 102 <br />and suggested the City would not be flooded with requests due to the current market. 103 <br /> 104 <br />Commissioner Mueller suggested the demolition loan be split into two separate categories one 105 <br />being for the property/homeowner, and the other for a private party or developer that would 106 <br />acquire a property for redevelopment. She requested the loans be capped at 10 years with an 107 <br />interest rate of 3%-5%. 108 <br /> 109 <br />Vice President Stigney agreed the Commission may need to work on this language further as 110 <br />there was ambiguity when the property ceases to be the owner’s primary place of residence. The 111 <br />two scenarios may benefit the program so long as the property were redeveloped once 112 <br />demolished. 113 <br /> 114 <br />President Flaherty was in favor of removing the language “ceases to be the owner’s primary place 115 <br />of residence” and suggested adding in the loan shall be due on the sale of the property, when the 116 <br />primary mortgage is paid off, or 10 years, whichever occurs first. Executive Director Ericson felt 117 <br />a loan limit was proper, but felt $10,000 would be difficult for a person to come up with after 10 118 <br />years. 119 <br /> 120 <br />Commissioner Gunn questioned if 3% interest was being considered for this loan. 121 <br /> 122 <br />Commissioner Mueller disagreed with the 0% interest on the demolition loan. 123 <br /> 124 <br />President Flaherty questioned how Ms. Snyder or Malrick would recommend the Commission 125 <br />proceed on this issue. 126 <br /> 127