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<br /> <br /> <br />Item No: 06.B <br />Meeting Date: September 26, 2022 <br />Type of Business: EDA BUSINESS <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: Economic Development Authority <br />From: Brian Beeman, Assistant City Administrator <br />Item Title/Subject: Resolution 22-EDA-360 Approving a Fourth Amendment to the Loan <br />Origination Agreement with the Center for Energy and Environment <br /> <br />Background <br />The Center for Energy and Environment (CEE) administers several loan programs for the EDA. The <br />current agreement expires December 31, 2022. CEE has indicated that with the increase in their <br />labor and overhead costs, they need to make some adjustments to some of the administrative costs <br />in the upcoming amendment. The origination fee will remain the same, however the annual <br />administrative fee will be $5,000, up from $2,500 and the post installation inspection fee will be $150, <br />up from $100. Everything else will remain the same. In addition, the EDA decided to remove the <br />Forgivable Loan program from the upcoming amended contract in order to save costs on the loan <br />origination fee. The amended contract will be effective January 1, 2023. <br /> <br />Discussion <br />Staff and Kennedy & Graven have reviewed the proposed amendments and is recommending the <br />EDA consider 22-EDA-360. <br /> <br />Changes include: <br /> Removing the Forgivable Loan program and Commercial Loans, saving $1050. <br /> Increasing the Annual Administrative Fee from $2,500 to $5,000. <br /> Increasing the post installation inspection fee from $100 to $150. <br /> All other language in the contract to remain the same. <br /> <br />Strategic Plan Strategy/Goal <br />Maintain a positive business climate where businesses want to locate and remain in Mounds View. <br />Finance top redevelopment areas Industrial/Commercial/Residential. <br /> <br />Financial Impact <br />One time Annual Administrative Fee is increasing from $2,500 to $5,000. Post Installation Inspection <br />Fee is increasing from $100 to $150. Eliminating the Commercial Loan program, saving $1050 per <br />commercial loan origination fee. <br /> <br />Recommendation <br />Staff recommends the EDA consider 22-EDA-360 via a motion. <br /> <br />Respectfully submitted, <br /> <br /> ___________________________ <br />Brian Beeman, Assistant City Administrator <br /> <br />Attachment(s): <br />1. EDA Resolution 22-EDA-360, Approving a Fourth Amendment to the Loan Origination Agreement with CEE <br />2. Amendment 4, Loan Origination Agreement <br />3. Exhibit A4 Guidelines <br />4. Exhibit B4 Loan Program Budget