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Home My WebLink About10.a. Associated Wood Products - Set Public Hearing December 18, 2001CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: October 16, 2001 AGENDA ITEM: Associated Wood Products - Set Public AGENDA SECTION: Hearing, Dec. 18, 2001 New Business PREPARED BY: Jim Parsons GENDA NO Community Development Director ATTACHMENTS: None. APPROV D BY: Background Associated Wood Products, Inc., has requested that the City of Rosemount sponsor a loan to the company with funds from the Minnesota Investment Fund, which is operated by the Minnesota Department of Trade & Economic Development. The Port Authority has reviewed the request on a preliminary basis, that is, without a formal loan review. The proposed loan is attractive mainly in that the State of Minnesota allows cities to retain the first $100,000 in loan payments for the purpose of bolstering local economic development efforts. The proposed loan does present risk to the City, including the risk that the borrower might default on the loan, causing the State to require the City to pay the State any funds collected by the City from the borrower over the life of the loan. The State requires that cities do a formal loan review or business credit analysis prior to submitting an application to the State. The Port Authority recommends that the City Council authorize preparation of an application to the Minnesota Investment Fund by Associated Wood Products and set a date for a public hearing on the application. The Port Authority recommends that the application be reviewed by the City Attorney and that any review costs incurred by the City be paid by Associated Wood Products. Because there are numerous steps that must be taken to assemble and review a loan application, staff recommends that the City Council set Tuesday, December 18, as the date for a public hearing by the City Council on the application. Staff would envision a complete legal and financial review of the application by the City Attorney and other advisors to the City prior to December 18. RECOMMENDED ACTION: Authorize preparation of a loan application to the Minnesota Investment Fund by Associated Wood Products and set Dec. 18, 2001, as the date for a public hearing on the application, with review by the City Attorney and all costs for the City's review to be paid by the company. COUNCIL ACTION: