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06/17/1992 Meeting
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06/17/1992 Meeting
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City Council Minutes
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6/17/1992
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<br /> e Small Business <br /> * limited availability of financing for formative/start-up expenses <br /> * Limited access to investment/venture capital <br /> * Difficulty in obtaining bonding (insurance) <br /> * Limitations on commercial financing <br /> * Borrower educational needs <br /> Mr. Sullivan then presented the following suggested actions, and noted that <br /> the listing is not inclusive: <br /> Housing <br /> * Develop a bank loan consortium, whereby banks contribute to a lending <br /> pool that could be used for specific purposes and their liability would <br /> be limited. <br /> * Formation of a bank-sponsored Community Development Corporation and/or <br /> increase support for existing community development corporations, such <br /> as the Neighborhood Economic Development Corporation and St. Vincent <br /> DePaul. <br /> * Develop investment pool for low-income housing tax credits. <br /> * Improve information for borrowers. <br /> e In response to a question from Mr. MacDonald, Mr. Sullivan said that the task <br /> force did not specifically consider Community Development Block Grant (CDBG) <br /> funding for community development corporations. He added, however, that dis- <br /> cussions are currently under way regarding related issues. <br /> Mr. Nicholson wondered why tax credits are so difficult to sell. Mike <br /> Gleason, City Manager, said that the new tax laws have reduced the value of <br /> tax credits. <br /> Business <br /> * Maximize use of existing public finance programs <br /> * Develop new finance programs <br /> * Continue commitment to small business technical assistance <br /> Mr. Boles introduced Frank Brawner of the Oregon Banker's Association. Mr. <br /> Brawner commended the task force. He distributed a memorandum that elaborated <br /> on his comments regarding the report. He said that there were two goals of <br /> the report: 1) to make housing more affordable; and 2) to increase employment <br /> by assisting small businesses. He emphasized that involvement of the full <br /> community is necessary for these goals to be achieved. He said that local <br /> banks are doing a good job at providing needed services to low-income individ- <br /> uals and small businesses, and need to continue their efforts. He stressed <br /> that banks succeed financially when they are able to make loans. He said that <br /> e MINUTES--Eugene City Council June 17, 1992 Page 2 <br /> 11:30 Work Session <br />
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