HomeMy WebLinkAboutIntergovernmental Advisory Council 03-23-98PLEASE NOTE: THE NEXT MEETING HAS BEEN RESCHEDULED FOR
TUESDAY, MAY 26TH, AT 7:00 PM, AT THE NORTH HUDSON VILLAGE HALL.
THIS IS A DIFFERENT DATE THEN IS INDICATED IN THE MINUTES BELOW.
March 23,1998 Intergovernmental Council Minutes
Intergovernmental Council meeting was called to order by Chairman, Ron Bernth, on
Monday, March 23, 1997, 7:00p.m., at the St. Joseph Town Hall. Present were Ron Bernth, Herb
Giese, Brian Gramentz, Rita Horne, Buck Malick, and Marie Schmit. Also present were Howard
LaVenture, Lloyd Dahlke, and guest speaker Bill Rubin.
Mr. Rubin spoke on the federal block grant programs. He noted that in 1998 HUD will
allocate approximately one hundred nine million dollars to the State of Wisconsin alone, some of
which is entitled, some not. His presentation covered the following points:
HUD requirements on block grants are as follows:
1. They must help low income people.
2. They must prevent slums and blight areas.
3. They must address an urgent community need.
LaCrosse, Eau Claire, Milwaukee and Madison get entitlement funds without competing
because of either their size or because they are part of an urban county.
Rubin presented a Revolving Loan Fund flow chart that showed the steps involved
in the loan process. He also noted that the median income in St. Croix County is $60,800 per
household, the highest in Wisconsin.
Next Rubin presented a hand-out explaining the Community Development Block Grant
Program. It explained eligibility, level of participation, program requirements, finance terms, the
application process and the information businesses need to have when applying for funds, He
noted that both the City of Hudson and the Town of Hudson have used Department of commerce
funds.
A discussion was then held on the economics of the Hudson area. Topics touched on were
affordable housing, wages, commuting, property taxes, changing demographics and the effect on
schools.
The next meeting will be May 27, 1998, at the North Village Hall, 7:00p.m. The main
topic will be bike trails.
Meeting adjourned on motion by Rita Horne, 2nd by Herb Giese.
Respectfully submitted,
Rita M. Horne, acting clerk
Tommy G. Thompson, Govemor
William J. McCoshen, Secretary
Asconsirn TELEPHONE: f-800-HELPBUS
Department of Commerce FAXREQUEST LINE: 608/264-6yu
FAX FORM # 806
REVISMDATE IZQ"T
COMMUNITY DEVELOPMENT BLOCK GRANT
ECONOMIC DEVELOPMENT (CDBG.ED)
The CDBG-ED program was designed to assist businesses that will invest private funds and create jobs as
they expand or relocate to Wisconsin. The Wisconsin Department of Commerce awards the funds to a
general-purpose unit of government (community) which then loans the funds to a business. When the
business repays the loan, the community may retain the funds to capitalize a local revolving loan fund. This
fund can then be utilized to finance additional economic development projects within the community.
ELIGIBILITY:
All businesses that are, or will be operating in
Wisconsin are invited to participate in this program
provided they are:
• located in cities whose population does not
exceed 50,000
• not located in Milwaukee County
• not located in certain Waukesha County
communities
For additional information on non -eligible
communities contact the appropriate Area
Development Manager, identified on Page #2.
Note: Milwaukee County and all other ineligible
communities operate their own CDBG programs.
ELIGIBLE ACTIVITIES:
• Construction and Expansion
• Working Capital
Acquisition of existing businesses, land,
buildings, and equipment
Note: Refinancing ineligible
LEVEL OF PARTICIPATION:
The Department of Commerce's typical level of
participation in a CDBG-ED project is $3,000 to
$10,000 per full time job created, although the
actual amount of participation is dependent upon
factors such as the following:
• The viability of the project
• The number and nature of the jobs created
• The project's economic impact upon the.
community
• The collateral position available
PROGRAM REQUIREMENTS:
1. At least 50% of the total eligible project costs
must be funded through private resources.
2. At least 51 % of the jobs created or retained
must be filled or made available to persons of
low and moderate income.
3. The total amount of the CDBG-ED assistance
that can be provided to any business may not
exceed $1 million.
FINANCE TERMS AND CONDITIONS:
Interest Rate:
The Department of Commerce will provide below
market interest at a fixed rate for the life of the loan
(typically 4%).
Terms:
1. Working Capital-5 to 7 years
2. Equipment-5 to 10 years
3. Real Estate-12 year term amortized over 20
years
Collateral:
The Department of Commerce will seek the best
collateral position possible to ensure that the
CDBG-ED loans are adequately secured.
Repayment:
Monthly payments of the principal and interest are
required.
CDBG - ED Page 2
THE APPLICATION PROCESS:
The CDBG-ED application process involves four
steps:
Interested applicants must first talk with the
local Area Development Manager (ADM). {See
map below} The ADM will visit the site and
discuss the project with the applicant to gather
preliminary project information. In addition, the
ADM may identify other programs that could
potentially assist the applicant.
2. The ADM will submit the preliminary project
information to the Department for review by a
Finance Specialist.
3. The Finance Specialist will underwrite the -
.project and make a funding recommendation to
the Secretary's Office. The Secretary's Office
will either:
A. Deny the proposal, in which case the
applicant will receive a letter outlining the
reasons for denial.
-or-
B. Make a positive funding
recommendation, in which case the
applicant will receive a preliminary
commitment letter fully detailing the terms
and conditions of the Department's
proposed participation.
BUSINESS INFORMATION:
Business should have the following information
available when they meet with the local ADM:
❑ Background information on the company.
❑ A Description of the project.
❑ A detailed project budget.
❑ Information on employment levels, wages and
benefits. Both existing and projected (3 years).
❑ A project timeline.
❑ Balance sheet, profit and loss, and cash flow
statements for the last three fiscal years, and
the most recent interim statement.
q Three years of financial projections with notes
covering all significant assumptions.
1_. For the first year, provide monthly
balance sheets, profit and loss, and cash
flow statements.
2. For the second and third years,
provide fiscal year-end balance sheets,
profit and loss and cash flow
statements.
❑ Personal Financial Statements for principals
with ownership of 20% or greater. Statements
should be signed and include Social Security
numbers, date of birth, phone numbers and
home addresses.
Note: All financial statements should be prepared in
accordance with Generally Accepted Accounting
Principles (GAAP).
AREA DEVELOPMENT MANAGERS:
Region 1:
Marty Ambros
7151836-2630
Region 2:
Mary Jo Carson
715/422-5118
Region 3:
Dennis Russell
920/498-6302
Region 4:
Dan Madden
608/267-2250
Region 5:
William Lehman
920/929-0242
Region 6:
James Schlies
414/220-5363
Region 7:
Kathy Heady
608/266-9944
Region 8:
William Winter
608/266-2059
Bureau Director: Roger Nacker 6081266-1386
Visit our new web page address at hup.11badoer.state.wi.us/aeencies/conunerce —
Source of Grant Funds
How a Revolving Loan Fund is Capitalized
1. I Citizens
2• ITax Dollars
3.1 -Washington, D.C.
40
4. Entitlement Programs
5. Housing and Urban Development
6. Allocations to All
50 States
(Block Grants)
7. State of Wisconsin
($107 Million in `97
8.1 State Department of Commerce
9. Economic Development Grants
to Local Units of Government
10. Local Unit of Government 11. Supplemental Loan to
Loans Block Grant Funds Small Business
to an Expanding Business T
3. 1
Local Unit of
Goverments uses Loan
Funds to Make New
Loans in the Future
2. W
Loan is Repaid
with Interest
1998 H.U.D. Median Family Income Estimate
St. Croix County, Wisconsin
Minneapolis -St. Paul Metropolitan Statistical Area (M.S.A.): $60,800
Very low income estimates (1 to 8 person households):
$219300 $24,300 $279350 $309400 $329850 $35,250 $379700 $40,150
Low income estimates (1 to 8 person households):
$31,700 $369250 $409750 $459300 $489900 $529550 $569150 $59,800
Source: U.S. Department of Housing and Urban Development
St. Croix Economic Development Corporation