3. Resolution 4780 - Community Development Revolving Loan Fund Program (Tabled 4/7)11.
The Honorable Mayor Pamela B. Kennedy and City Council
FROM: Susan Moyer, Community Development Director
Chris A. Kukulski, City Manager
SUBJECT: Resolution to Establish an Economic Development Revolving Loan Fund for
Business Retention and Expansion
MEETING DATE: April 21, 2003
BACKGROUND: Funding is available through application to Rural Development and CDBG
Economic Development Block Grant sources that can create a revolving loan fund
for small business retention and expansion. These funds are intended to stimulate
economic development activity by assisting the private sector where a funding
gap exists and alternative sources of public and private financing are not
adequate.
The City of Kalispell and the Community Development Department, if approved
by Council, will be to assist businesses by making appropriate long-term, fixed
rate financing available at reasonable interest rates by providing improvements in
support of Economic Development activities. Additionally, the Community
Development Department will be eligible to receive administrative grant funds to
implement and run this program; thus ensuring the continued financial self-
sufficiency of the department.
RECOMMENDATION: City Council approves the resolution before them this evening and appoints the
steering committee members as permanent appointees to a newly created
Economic Development Loan Review Committee. The initial appointments shall
be for two members having a two year term and three members having a three-
year term. Upon expiration of any term or withdrawal of any committee member
prior to the expiration of the term, the Committee shall develop and submit, for
each opening, a list of up to three nominees to the Mayor who shall then, with the
approval of Council, either make the appointment from that list to fill the seat on
the Committee or call upon the Committee to develop and submit a new list of up
to three nominees to fill the vacant seat.
FISCAL IMPACT: Up to $1,150,000 can be applied for from the two funding sources as soon as
projects have been identified. Repayment of principal and interest on loans will
then be recycled back into the community for new development. Additional
applications may be submitted when the initial funds are expended.
ALTERNATIVES:
Respectfully submitted,
Chris A. Kukulski,
City Manager
As suggested by Council.
Susan Moyer, Director
Community Development
RESOLUTION NO. 4780
A RESOLUTION TO ESTABLISH AN ECONOMIC DEVELOPMENT REVOLVING
LOAN FUND FOR BUSINESS RETENTION AND EXPANSION AND TO CREATE AN
ECONOMIC DEVELOPMENT LOAN REVIEW COMMITTEE.
WHEREAS, Rural Development and CDBG Economic Development Block Grant sources have
funding available for the creation of revolving loan funds for small business
retention and expansion which may stimulate economic development activity by
assisting the private sector where a funding gap exists and alternative sources of
public and private financing are not adequate; and
WHEREAS, the Kalispell City Community Development Department will be able, through the
use of such an economic development revolving loan fund and with funding from
these grant sources, to assist businesses by making appropriate long-term, reasonable
fixed rate financing to small businesses to stimulate economic development activity;
and
WHEREAS, a Steering Committee of local business and banking professionals have developed a
set of policies and procedures for the management of an Economic Development
Revolving Loan Fund which will effectively direct a Loan Review Committee in the
management of the Fund; and
WHEREAS, a Loan Review Committee should be established and appointments made to that
Committee to monitor and direct the Economic Development Revolving Loan Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. An Economic Development Revolving Loan Fund (RLF) shall be established
within the budget of the City of Kalispell, which shall be funded solely from
the Rural Development and CDBG Economic Development Block Grant
sources. Loans from this fund shall be used to continue the activities from
which the program income is being derived; 1) specifically to create and
retain employment opportunities, and to 2) assist in preventing or eliminating
blight, to revitalize, upgrade or improve the commercial/business area of the
Kalispell community, and to 3) contribute partial funding as a match for
Community Development projects funded with State and Federal Funds. To
this end the use of the RLF shall be governed by the City of Kalispell
Economic Development Revolving Loan Funds Policy and Procedures
manual attached hereto in incorporated fully herein by this reference.
SECTION II. The five person steering committee which authored the Policy and
Procedures established above in Section I shall be and is hereby appointed to
serve as the Loan Review Committee. The first term for Peggy Young and
A.J. King shall be for a period of two years and the first term for Dave
Hanson, Rick Hart and Donna Bolander shall be for three years. All terms
thereafter shall be for a period of three years. Upon the expiration of any
term or withdrawal of any committee member prior to the expiration of the
term, the Committee shall develop and submit, for each opening, a list of up
to three nominees to the Mayor who shall then, with the approval of Council,
either make the appointment from that list to fill the seat on the Committee or
call upon the Committee to develop and submit a new list of up to three
nominees to fill the vacant seat.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 21 ST DAY OF APRIL, 2003.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk