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HomeMy WebLinkAboutResolutions 2006 (48) RESOLUTION AUTHORIZING TRANSFER OF THE ST. CROIX COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT BUSINESS REVOLVING LOAN FUND TO THE REGIONAL BUSINESS FUND, INC. Resolution No. qq (_2 066) St. Croix County, Wisconsin WHEREAS, the Wisconsin Department of Commerce has developed a pilot program that seeks to consolidate local community development block grant revolving loan funds (RLF) that exist in the 7- county west central Wisconsin area into a regional business fund that will be administered by the West Central Wisconsin Regional Planning Commission; and WHEREAS, the proposed consolidation is in St. Croix County's economic best interest because it will provide funds to County businesses to create new jobs and expand facilities; and WHEREAS, the St. Croix County Finance Committee has reviewed the West Central Wisconsin Investment Strategy (a summary of which is attached), has considered the advantages and disadvantages of participating in a regional business fund, and recommends participation and the transfer of the County's RLF to the Regional Business Fund, Inc.; and WHEREAS, the Regional Business Fund, Inc. will implement the West Central Wisconsin Investment Strategy and the St. Croix County Economic Development Corporation will create a loan committee to review RLF loan applications from County businesses. THEREFORE, BE IT RESOLVED that the St. Croix County Board of Supervisors authorizes participation in the regional business fund and the transfer of the current funds and loans existing in its state - funded RLF portfolio to the Regional Business Fund, Inc. when the West Central Wisconsin Regional Planning Commission notifies the St. Croix County Administrative Coordinator that all administrative procedures are in place to effectuate the transfer. FURTHER, BE IT RESOLVED that the St. Croix County Board of Supervisors authorizes its chairperson to execute all necessary documentation on behalf of St. Croix County to complete the transfer. Offered by the Finance Committee on December 19, 006. YES NO ABSTAIN ABSENT SUPERVISOR SIGNAT OREJ ® ❑ ❑ ❑ Stan Krueger ® ❑ ❑ ❑ Esther Wentz " ® ❑ ❑ ❑ Clarence Malick e- ❑ ❑ ❑ Daryl Standafer ' ® ❑ ❑ ❑ Tom Caflisch This Resolution was adopted by the St. Croix County Board Reviewed by Corporation Counsel on of Supervisors on /a l q - 6 (Q 6�4 Greg T merman, Corporation Counsel Cindy Campbe , County tlerk Consolidated Loan Funds West Central Wisconsin Investment Strategy Summary Consolidation Initiative The Wisconsin Department of Commerce (Commerce) established a Non - Profits Initiative to encourage local governments with Community Development Block Grant (CDBG) funded Business Revolving Loan Funds (RLF) to voluntarily consolidate the funds. Reason for Change The primary reasons for change are: • Activate unutilized funds. • Streamline management of funds. • Eliminate burden of local administration. • Allow for defederalization of RLF funds. • Allow for more flexibility in use of funds. • Allows local economic needs to be met with fewer restrictions. • Encourage cooperation. • Retains more of the CDBG funds locally Investment Plan There will be four business loan programs established: MICRO LOAN PROGRAM • Small loans for start-up /newly established & growing small businesses. • $5,000 to $25,000 loan amount. DOWNTOWN FACADE/HISTORIC REINVESTMENT LOAN PROGRAM • Small loans to encourage fagade improvements, landscape improvements, code violation improvements. Maximum loan'is $30,000. TECHNOLOGY ENTERPRISE FUND PROGRAM • Provide "patient" debt financing to emerging technology companies. • Complementary to equity sources of financing. REVOLVING LOAN FUND PROGRAM • Loans to address needs not addressed by micro, downtown, and technology set -aside funds. Operational The consolidation will be a partnership that retains local decision - making. Structure • Loan approval decisions made locally • Local governments /loan committees will process /approve micro loans and downtown loans. • County econ. dev. corp. loan committees will approve all RLF loan requests in their counties up to $150,000. • Regional non - profit board administers funds on behalf of local governments and reviews large loan requests and technology loans. • The RLF local governments determine who represents them on regional non- profit board. • A committee of the participating RLF local governments will update the strategy. Timeline The Regional Non - Profit Initiative timeline for consolidation is January 1, 2007.