05/13/1987 Meeting - Laserfiche WebLink

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e 1. No more than $35,000 in grants will be approved annually; 2. A report identifying the grants will be presented quarterly to the council; and 3. A substantial public and private investment will be required before a grant is approved. Mr. Smith said the private investment could include bank and equity financing and public investment could include other non-conventional programs such as the Business Loan Program. Answering questions from Ms. Ehrman and Mr. Holmer, Mr. Smith said no more than $35,000 would be granted each year. The present interest rates are 6 and 10 percent. When the rates in the Business Development Fund were changed, the council was notified. He expects such notification to continue. He said a grant would be a "last resort.1I Ms. Ehrman moved, seconded by Mr. Bennett, to adopt the policy guideline changes recommended by the Loan Advisory Committee. Ms. Wooten said she will not support the motion because she does not approve of the provisions for "forgiveness of debt.1I Mr. Bennett said the proposed guidelines address very unusual circumstances that would be very important. He said such circumstances affect many other things. Mayor Obie reviewed the council's action on May 11. He said the proposal ~ before the commission constrains the City Manager's authority. Ms. Schue said a similar loan program with Community Development Block Grant funds has been successful and not controversial. She expects the commercial revitalization program to be as successful. Ms. Ehrman said she opposed the pol icy on May 11 but she wi 11 support the guidelines. Answering her question, Mr. Smith said copies of the guidelines will be submitted to the councilors later. He reviewed the three modifications. Noting that the modifications were not submitted to the council in writing, Mr. Holmer said it is disconcerting not to have written proposals. He said he will oppose the motion because the modifications do not include limits or advice to the City Manager from the Loan Advisory Committee about changing the terms, the rates, or approving grants. Mr. Smith responded that the Loan Advisory Committee reviewed proposed rate changes and made a recommendation to the City Manager the last time rates were changed in the Business Loan Program. He said written modifications will be presented to the council and will require a review by the Loan Advisory Committee before rates and terms are changed. e MINUTES--Eugene City Council ~ Session May 13, 1987 Page 10