01/30/1985 Meeting - Laserfiche WebLink

Home Browse Search

- Council Bill 2805 was read the second time by council bill number only. Mr. Hansen moved, seconded by Ms. Schue, that the bill be approved and given final passage. Roll call vote; all councilors present voting aye, the bill was declared passed (and became Ordinance No. 19307). BUSINESS DEVELOPMENT FUND LOAN REQUEST~memo attached) IV. e City Manager Micheal Gleason said the Business Development Fund Loan Advisory Committee recommended a loan to a firm in which a principal is a City employee. Regulations of the Department of Housing and Urban Development require the council to be aware of the loan. Responding to a question from Ms. Erhman, Mr. Gleason said the $10,000 loan will purchase a computer for the company. The committee which reviews loan applications recommended it. Ms. Erhman thought there might be an appearance of impropriety because the loan will have a favorable interest rate. Mr. Holmer shared her concern. He would like a policy prohibiting loans to businesses in which a City employee is a principal. Mr. Rutan pointed out no council action was required on the loan. The council simply had to acknowledge that the loan was made. Mr. Gleason discussed the history of the business development loan program and said the council decided that the committee should consider the fiduciary responsibility of businesses and the economic development goals of the community when making decisions. If the council wished to change the policy, that action should be separated from the acknowledgement required by Federal regulations of this loan. He did not feel there was any impropriety in this loan. Ms. Erhman suggested the matter be scheduled for additional discussion by the council. Mr. Hansen said City employees are also citizens. They should not get preferential treatment, but he wondered if a prohibition against their receiving loans would not eventually extend to people on City committees and boards. He was comfortable with the loan. He suggested the council review all the loan programs of the City and the council role in them. Ms. Wooten pointed out the loan was approved by the Loan Advisory Committee, the applicant fulfilled the requirements, and the council wished to discuss a policy concerning City loans to City employees and review all the City loan policies. Ms. Wooten suggested Mr. Smith report on what the City has in addition to business loans. The meeting was recessed briefly at 12:45 p.m. Ms. Wooten reconvened the Eugene City Council in a work session in the McNutt Room at 12:50 p.m. She announced the postponement of consideration of ~ business license revisions (Item VI on the agenda). MINUTES--Eugene City Council January 30, 1985 Page 5