ITEM: 12.1 ADMINISTRATION - Bryan K. Schafer, Planning and Community Development Director
Title
RETURNING CBDG REVOLVING LOAN FUNDS AND ACTIVE BADC LOAN PORTFOLIO TO ANOKA COUNTY
Background
For a number of years the City, thru the BADC (Blaine Area Development Company), has utilized block grant funds (CDBG) from Anoka County. The BADC loan program has helped dozens of industrial and commercial Blaine companies expand, buy or remodel buildings or purchase large capital equipment items.
The recent downturn in the economy and changing financial banking standards has slowed the interest in this loan program. Some of the program requirements related to hiring, monitoring and reporting in some cases are a burden to small business owners that outweigh the financial benefits of these small loans. The last BADC loan was issued in 2010.
Staff has discussed this ongoing issue with Anoka County and has mutually decided that one of the solutions would be to return the revolving loan funds and loan portfolio to Anoka County. The CDBG funds returned would go into Anoka County's CDBG pool and be available for Blaine to apply for specific projects in the future.
Recommendation
By motion, approve the Resolution.
Body
WHEREAS,; the City has utilized Community Development Block Grant (CDBG) funds from Anoka County for a number of years to establish a business revolving loan fund; and
WHEREAS, the City utilized the Blaine Area Development Company (BADC) to review and process many loans in the program's history to help grow the City's economy; and
WHEREAS, the City has determined that the changing economy together with financial and program requirements have limited the practical appeal of this loan program and that the City should return the unused revolving fund amount to Anoka County.
NOW, THEREFORE, BE IT RESOLVED, by the Blaine City Council that the unused CDBG funds as well as the existing BADC loan portfolio are to be returned to Anoka County and that the Mayor and City Manager are hereby authorized to execute any and all agreements necessary to accomplish this action.
PASSED by the City Council of the City of Blaine this 3rd day of April 2014.