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Springsted Incorporated <br /> 380 Jackson Street, Suite 300 <br /> Saint Paul,NIN 55101-2887 <br /> S p r i n g s t e d Tel: 651-223-3000 <br /> Fax: 651-223-3002 <br /> www.sphngsted.com <br /> EXTERNAL MEMORANDUM <br /> TO: Joe Huss,Finance Director <br /> City of Blaine <br /> FROM: Bob Thistle, Executive Vice President <br /> Paul Steinman,Vice President <br /> Jenny Wolfe,Project Manager <br /> DATE: September 19,2005 <br /> SUBJECT: Twin Cities Community Capital Fund <br /> We have been asked by the City to provide information about the Twin Cities Community Capital Fund (TCCCF), a <br /> non-profit corporation in the business of brokering commercial loans to the secondary market, including the <br /> Community Reinvestment Fund(CRF). <br /> TCCCF was modeled after the Minnesota Community Capital Fund (MCCF), active since early 2003 in out-state <br /> Minnesota (outside the seven county metro area). MCCF has closed 24 loans totaling $7,377,050 dollars through <br /> July 31, 2005, and have an additional $2,233,125 dollars in process. Since inception, the MCCF has raised more <br /> than $3.1 million in total member capitalization and currently has 65 members representing more than 400 cities, <br /> counties,utilities and economic development organizations in Minnesota. <br /> The TCCCF is available to City's within the 7 county metro area and allows a City such as Blaine, to deposit a <br /> minimum of $50,000 and a maximum of $200,000 (member capitalization) to an escrow account that will enable <br /> Blaine to provide as many loans as they desire, each having a principal amount no greater than 10 times their <br /> deposited amount(less any encumbered amounts such as a credit reserve identified later in this memo). There is a <br /> $5,000 operating fee required for membership which is non-refundable, included within the deposited amount. The <br /> requirements other than underwriting include the participation of a bank, for which the TCCCF loan is subordinate, <br /> and a minimum of 10%equity(which could be financed). <br /> After three years time, the City could withdraw their money from TCCCF and be repaid their available deposit as <br /> defined below. Or after the three years the City could reduce their level of participation if they joined at an amount <br /> greater than$50,000. Each executed loan is purchased by the secondary market(CRF or other lenders)immediately <br /> at closing,and the City bears minimal risk for repayment of the funds. TCCCF will handle all documents for the loan, <br /> and the responsibility for closing the loan. <br /> Public Sector Advisors <br />