HomeMy WebLinkAbout2.B. Loan Funds in 2005 and 2006 EDA Budget
J. ~.
City of Shakopee
Memorandum
TO: Economic Development Authority
FROM: Mark McNeill, City Administrator
Kris Wilson, Assistant to the City Administrator
SUBJECT: Loan Funds in 2005 and 2006 EDA Budget
DATE: August 10,2005
Introduction:
As part ofthe FY 06 budget discussion, the Council is asked to give direction on funding ofthe
EDA Revolving Loan Fund.
Background:
At the August 9 meeting between the EDA and the Economic Development Advisory
Committee, there was some discussion regarding loan funds included in the 2005 EDA budget.
To clarify, the 2005 adopted budget for the EDA included $50,000 for a Downtown Fayade
Improvement Program and $100,000 for a Revolving Loan Fund. Additional funds, above and
beyond this $100,000, were to be deposited in the Revolving Loan Fund when Challenge
Printing (now Imagine! Printing) began making payments on their Minnesota Investment Fund
loan. Those payments are now being received and the funds are being directed to the EDA
Revolving Loan Fund.
With that as background, the EDA is now being asked to decide whether it wishes to continue
building the Revolving Loan Fund by budgeting an additional amount for this purpose in 2006
and if so, by how much.
The EDAC has not made a formal recommendation, but EDAC members have expressed strong
support for continuing to build this fund. The EDAC does not meet again until September 13,
2005, which is after the time when decisions for the FY 06 budget need to be made by the
Council.
Finally, the 2006 budget request prepared by staff does not include any additional funds for the
Downtown Fayade Improvement Program, and the $50,000 allocated for 2005 has yet to be
utilized. Does the EDA want staff to prepare guidelines for utilizing these dollars and begin
marketing the program to downtown property owners, or would you prefer to amend the 2005
budget and utilize these funds for a different purpose? One possibility would be to redirect the
funds to the Revolving Loan Fund.
I
Action Required:
The Council is asked to discuss and make a determination as to how much, if any, additional
money from the EDA levy should go to building the Revolving Loan Fund.
Kris Wilson
Assistant to the City Administrator