05/11/1987 Meeting (2) - Laserfiche WebLink

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e e e Ms. Wooten asked staff to provide a breakdown of the $613,920 in business development loans. Jesse Smith, of the Development Department, said the item included the amount allocated for loans during the upcoming year, in addition to income to be generated by Business Development Fund loans. He said the fund included about 40 current loans. Ms. Wooten said she understood that the program was to receive a $250,000 add-on each year, rather than $613,000. Linda Dawson, of the Development Department, said the third year of the plan had included a $324,000 allocation for that program. She said the actual allocation had been less than planned, so the current amount was $318,000, which was added to $295,000 in expected program income. Ms. Ehrman moved, seconded by Mr. Holmer, to approve the annual Community Development Block Grant Statement of Objectives for 1987-88. Roll call vote; the motion carried unanimously, 6:0. The Mayor recessed the meeting of the Eugene City Council and convened a meeting of the Eugene Urban Renewal Agency. V. COMMERCIAL REVITALIZATION FUND UPDATE Assistant City Manager Dave Whitlow introduced the item. Jean Names, chair of the Loan Advisory Committee, provided the report. She said the proposed changes in the Commercial Revitalization Fund could be reviewed. Mayor Obie suggested taking questions from councilors. Mr. Holmer said page 2 of the agenda item summary stated that lithe Ci ty Manager will ma i nta in the administrative authority to set and alter rates and terms," including the authority to grant funds. He said the delegation seemed broad and asked whether any limitations would apply to the authority of the City Manager. Jesse Smith, of the Development Department, said some limitations would apply. He said the program currently operated at interest rates of 6 or 10 percent, as did the Business Development Fund. He said regulations allowed the City either to loan or to grant funds if tests of eligibility and of necessity and/or appropriateness could be met. Mr. Holmer asked whether the Loan Advisory Committee was involved in any or all such decisions. Mr. Smith said the committee now was not involved in the Commercial Loan Program. He said the proposed changes would involve the committee in that process in the same way it now was involved with the Business Development Fund process. Responding to Mr. Holmer's question, Mr. Smith said the City Manager could ignore the advice of the advisory committee. He said the committee would review staff analysis and credit summaries, and its recommendation would be sent to the director of the department or to the City Manager, depending on project size. Ms. Wooten asked whether that clause had been written for the Schaefer Building. Mr. Smith said it had, adding that staff was working on a package that could include the forgiveness of funds loaned for the Schaefer Building. Mayor Obie said that if the details of that package were to be discussed, the City Manager had requested calling an executive session. Ms. Wooten said she did not wish to discuss details. She said she had been uncomfortable with the MINUTES--Eugene City Council May 11, 1987 Page 15