07/16/1986 Meeting - Laserfiche WebLink

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will be used for such a program. They will be used very much like the Business Development Fund is used. They will probably be loaned at six e percent interest. In that case, the City will recapture most of the discount and probably double the number of loans. He said Mr. Holmer seemed to be referri ng to the Business Development Fund which is a revolving fund of $15,000 to $25,000. It has accumulated over $300,000 in revenue from $1.4 million in loans. He said the Commercial Revitalization Program and the Business Development Fund are different. Replying to a question from Ms. Ehrman, Mr. Smith said the Loan Advisory Committee is composed of Jean Names, Tom Fuller, Bruce Riddle, Steve Mayes, Bruce Anderson, and Kay Anthony. The committee reviews the staff recommendations for Business Development Fund loans. Ms. Wooten urged other council ors to approve the Recapitalization Program. She said it will provide the City with funds to invest in local businesses. Ms. Bascom agreed with Ms. Wooten. Mr. Smith introduced Tom Fuller of the Oregon Bank who is a member of the Loan Advisory Committee. Mr. Fuller said he was mislead when he talked to Mr. Holmer this morning. Mr. Fuller said the City will not sell any of the 33 Business Development loans. He said 11 of the Business Development loans are for $10,000 or less. They help small businesses which provide 80 percent of the community's jobs and a comparatively stable economic base. He said the proposed Recapitalization Program will provide the City with immediate new funds to loan in the Business Development Loan program. e Otherwise, the City will have to wait until the loans in the Commercial Revitalization Program are repaid. He said the community will benefit in the future if many loans can be made now. He said the City's loan program sends the message that Eugene will help existing and new businesses. He said there is some risk. but he recommended approval of the recapitalization program. Mr. Fuller discussed the $200 million Private Lender Program which was developed a year ago. He said the program is important. He also discussed bank loans. Ms. Ehrman moved, seconded by Ms. Schue, to approve the Recapitalization Program. Ms. Ehrman said she wi 11 support the mot ion but she understood Mr. Holmer's concern and she is concerned about future actions. She said she is bothered-that only nine loans were made. Mr. Hansen suggested the discounts be evaluated by the council later. The motion carried 7:1 with Councilors Schue, Hansen, Wooten, Bascom, Miller, Rutan, and Ehrman voting aye e MINUTES--Eugene City Council July 16, 1986 Page 9