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Mounds View EDA October 25, 2010 <br />Regular Meeting Page 4 <br /> <br />Suzanne Snyder, Greater Metropolitan Housing Corporation (GMHC) commented there was 128 <br />agreement among the Commissioners to have the demolition loan not be deferred, but have a 129 <br />repayment term. This made sense and would be better for the City. Principal only loans could 130 <br />also be done with a 10 year repayment plan. Ms. Snyder indicated the program could still be 131 <br />designed to be attractive to homeowners to assist with removing blight in the City. She was not 132 <br />certain of a correct interest rate, but suggested prime plus a couple points. 133 <br /> 134 <br />Commissioner Gunn agreed with a principal only loan with a repayment plan. 135 <br /> 136 <br />Commissioner Hull indicated the major goal was to eliminate blight. Adding 3% interest on 137 <br />these loans would discourage residents and redevelopment. He felt the program would create 138 <br />more interest if left as proposed. 139 <br /> 140 <br />Ms. Snyder indicated the Commission would have to decide if they wanted to proceed with 141 <br />deferred loans or create a repayment plan to recapture payments with 0% interest. This would be 142 <br />the most attractive funds available, if at 0%. 143 <br /> 144 <br />President Flaherty questioned if the EDA wanted to close the open ended loan and if so, what 145 <br />would the timeframe be. Also, the Authority would need to consider if these loans should have 146 <br />interest. 147 <br /> 148 <br />Vice President Stigney requested the loans be closed. 149 <br /> 150 <br />Commissioner Hull was fine with the language as is. 151 <br /> 152 <br />Commissioner Gunn suggested the loans be closed after 10 years and if paid off before then, it 153 <br />remain interest free. 154 <br /> 155 <br />Commissioner Mueller requested the loop be closed and charge interest. 156 <br /> 157 <br />President Flaherty stated he would be in favor of closing the loop as well. He requested further 158 <br />options be brought back to the EDA with varying rates to be reviewed at the November 8th 159 <br />meeting. 160 <br /> 161 <br />Commissioner Mueller questioned if the City would be regaining the interest and if this would 162 <br />cover the Staff time spent to figure out the interest rate and monthly payments on each of these 163 <br />loans. She felt the more simple the better on these loans. 164 <br /> 165 <br />Community Development Director Ken Roberts asked if the EDA had further comments on the 166 <br />other two loans. 167 <br /> 168 <br />President Flaherty indicated he was fine with the other loans as is. 169