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Home My WebLink AboutTCCF16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 Economic Development Authority Agenda Regular Meeting May 2, 2005, 6:45 p.m. Prior Lake Fire Station I I. Call to Order. II. Approval of Minutes for April 18, 2005, Meeting. III. TCCCF. IV. Adjourn. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING April 18, 2005 DRAFT Call to Order and Pledge of Allegiance Present were President Zieska and Commissioners Haugen, Fleming, LeMair and Petersen, Executive Director Boyles, EDA Attorney Pace, Assistant Treasurer Teschner, Managing Director of Northland Securities Steve Mattson, Secretary Green. The meeting was called to order at 6:45 p.m. at the Fire Station City Council Chambers. Approval of Minutes MOTION BY PETERSEN, SECONDED BY LEMAIR, TO APPROVE THE MINUTES OF THE MARCH 21, 2005, MEETING AS PRESENTED. VOTE: Ayes by Zieska, Fleming, Haugen, LeUair and Petersen. The motion carried. Consider Approval of A Resolution Authorizing the Issuance of EDA Revenue Bonds Assistant Treasurer Teschner introduced the resolution. Steve Uattson of Northland Securities presented the results of the bond sale of $10 million to finance city hall and police station. Approximately $500,000 in tax levy savings was achieved by bond insuring. Comments: Petersen: Thanked Mattson for job well done. Haugen: Stated it was nice to see a half million dollars saved over the life of the bond. MOTION WAS MADE BY FLEMING, SECONDED BY PETERSEN TO APPROVE RESOLUTION 05-03EDA APPROVING $10,000,000 PUBLIC PROJECT REVENUE BONDS, SERIES 2005B. VOTE: Ayes by Zieska, Fleming, Haugen, LeUair and Petersen. The motion carried. Adjourn A motion was made by Fleming and seconded by Petersen to adjourn the meeting. With all in favor, the meeting adjourned at 6:52 p.m. Frank Boyles, Executive Director Charlotte Green, Recording Secretary www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 PRIOR LAKE EDA MEETING AGENDA REPORT DATE: AGENDA ITEM: PREPARED BY: SUBJECT: May 2,2005 III JOHN SULLIVAN, COMMUNITY DEVELOPMENT DIRECTOR CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PARTICIPATION IN THE TWIN CITIES COMMUNITY CAPITAL FUND (TCCCF) FOR ECONOMIC DEVELOPMENT PURPOSES AND ESTABLISHING THE CITY'S PARTICIPATION LEVEL. Introduction: The purpose of this agenda item is: 1. To discuss the City Attorney's review of the response from the TCCCF regarding questions that arose from a March 28, 2005 memo. 2. To consider approval of a resolution approving a contribution of $50,000 to the TCCCF for economic development purposes. History: The Economic Development Authority will recall that the Twin Cities Community Capital Fund (TCCCF) is a new economic development financing resource for the Twin Cities Metropolitan Area. The purpose of the TCCCF is to leverage millions of dollars in Revolving Loan Funds (Rolfs) and other economic development funds owned and managed by metro area local governments and development financing organizations. By pooling resources, the President of the Fund represents that TCCCF members will have the potential of offering much larger loans than would be possible with limited local resources, and greater gap-lending flexibility for financing local development projects. The Fund will begin operating once the initial $2 million capitalization goal has been reached. Current Circumstances: The City Attorney's office reviewed documents prepared in connection with the TCCCF. A memorandum was prepared and sent to Mr. Scott Martin, the President of the TCCCF. Mr. Martin prepared a response which was reviewed by the City Attorney's office. Attached is a March 28, 2005, memorandum from the City Attorney's office regarding the TCCCF. The memorandum identifies business issues (Schedule A) which the Economic Development Authority should review to determine if it finds these conditions acceptable for participation in the TCCCF. resolution doc I:\EDA\5-2-05 CITY EDA Staff repod for TCCCF Contribution andwww ,y , ~ r, ~'~'°-n"d"'°C'.ci" 'o~prior'a~'e. corn Page 1 Phone 952.447.4230 / Fax 952.447.4245 In addition to these business points, the City Attorney's memo identifies four issues for additional EDA consideration. Finally, the memo proposes language amendments to Sections 9 and 10 and four other additions to clarify the Management Agreement. I have asked Mr. Martin if he would entertain language changes in the documents. He has indicated he will not. Therefore, if the City is to participate, it will be with the existing documents. The City Attorney believes that (1) the proposed new language requested by the City i~ intended to clarify and protect the City and (2) the proposed changes to Sections 9 and 10 are recommended. The Economic development Authority should discuss these recommendations at the May 2 meeting. Conclusion: The Economic Development Authority should consider whether it is sufficiently comfortable with the business points identified in the City Attorney's memo to proceed to participate in the TCCCF. If so, the EDA should determine if its participation is conditioned on the language changes proposed by the City Attorney's office. Finally, the level of participation should be identified. These levels: $50,000, $100,000 and $200,000 are available. The higher the level of participation, the greater number of votes and amount of loans that can be made. However, we believe, and supported by the Commissioner of the State Department of Employment and Economic Development, that the funds the City may properly use to make a contribution to the TCCCF are the remaining State portion of the Minnesota Investment Fund revolving loan fund currently administered by the City. We have identified $50,000 in State funds that can be used for this purpose. It is unclear whether we can change levels from time to time. ALTERNATIVES: 1. Take no action - which is electing not to participate in the TCCCF. 2. Authorize participation by resolution including the conditions of participation, if any. 3. Indicate the financial level of participation. RECOMMENDED As determined by the EDA. MOTION: Reviewed by:/l~r oyles, City Manager I:\EDA\5-2-05 CITY EDA Staff repod for TCCCF Contribution and resolution.doc Page 2 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 05-XXEDA A RESOLUTION APPROVING THE CITY OF PRIOR LAKE'S EDA PARTICIPATION IN THE TWIN CITIES COMMUNITY CAPITAL FUND (TCCCF), AMENDING THE CITY'S REVOLVING LOAN FUND (RLF) POLICIES AND PROCEDURES, AND AUTHORIZING THE TRANSFER OF RLF PROGRAM FUNDS TO THE TCCCF LOAN FUND ESCROW ACCOUNT. MOTION BY: SECONDED BY: WHEREAS, the City of Prior Lake EDA has reviewed the TCCCF Membership Disclosure Statement; and WHEREAS, the EDA has decided to become a member of the TCCCF through the deposit of $45,000 into the TCCCF Loan Fund Escrow Account, and through a $5,000 Working Capital loan or grant to TCCCF; and WHEREAS, the EDA wishes to use funds available in its RLF account that originated from a grant received from the State of Minnesota under the Minnesota Investment Fund (UlF)/Economic Recovery Fund (grant number CDAP-98-0121-H-FY1999) for the purposes of becoming a member of the TCCCF; and WHEREAS, the EDA deems it to be in the best interest of the EDA to participate in the TCCCF as a means of increasing the City's overall economic and community development activity. NOW THEREFORE BE IT RESOLVED THAT: 1. The EDA hereby approves membership participation in the Twin Cities Community Capital Fund, under the terms offered in the TCCCF Membership Disclosure Statement. , The City's Revolving Loan Fund policies and procedures are hereby amended to designate the TCCCF as a community-based development organization for the City, and authorizing the transfer of RLF funds to the TCCCF Loan Fund Escrow Account. . Pursuant to Minn. Stat. § 116J.8731, subd. 2, the EDA hereby requests that the Commissioner of the Minnesota Department of Employment and Economic Development (DEED) approve the use of funds received from the repayment of MIF grant funds for participation in the TCCCF through the deposit of $45,000 in the TCCCF Loan Fund Escrow Account, and through a $5,000 Working Capital loan or grant to TCCCF. 4. The City Manager is hereby directed, upon receipt of approval from DEED, to disburse a total of $50,000 to the TCCCF. ADOPTED this 2nd day of May, 2005. YES NO Haugen Haugen Flemin9 Flemin9 LeMair LeMair Petersen Petersen Zieska Zieska I:XEDALResolutionsX5-2-05 TCCCF Contribution of $5OOO0.doc Frank Boyles, City Manager www. cityofpriorlake, com Phone 952.447.4230 / Fax 952.447.4245