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Item No. 7B Meeting Date: Febuary 25, 2008 Type of Business: EDA Administrator Review: _____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Consider Resolution 08-EDA-244 Approving Mounds View Business Toolbox Background: The Mounds View Business Toolbox is a document that was developed and reviewed from February through April 2007 as a financial and technical resource for staff to use as a guide to explain opportunities available to existing and prospective Mounds View businesses. The EDA last reviewed the document on April 9, 2007 and provided staff with the following input: • Add the sentence “Any financial assistance available by the City of Mounds View is at the discretion of the Mounds View Economic Development Authority (EDA)” • The document must remain internal to the City, rather than utilizing it as a business recruitment tool, such as posting it on the City Web site. • Obtain the EDC’s input on the Business Improvement Program interest rate of 2% and whether or not the rate is appropriate. Discussion: Per the EDA’s April 9, 2007 input, staff added the “discretion of the EDA” sentence as part of the introductory paragraph on Page 2 of the Toolbox and also stamped “Internal Document” to all pages of the Toolbox. Per the EDA’s April 9, 2007 direction, the EDC discussed the Business Improvement Program’s 2% interest rate at their February 15, 2008 meeting. The Business Improvement Program text is located on Page 7 of the Toolbox. The EDC is comfortable with the 2% rate as long as it covers administrative expenses. Since most of the administrative costs are covered by the participating bank, staff agrees that the 2% rate is appropriate; therefore the Business Improvement Program text in the Toolbox has not been changed. The EDC also recommended an annual review of the Business Improvement Program interest rate.