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Loan board reviews loan fund balances, delinquent accounts and EDA plan due July 2025
Summary
City staff reported roughly $927,000 in outstanding receivables, named several delinquent borrowers, outlined low available balances in the EDA 2022 fund and CRLF, and requested board feedback on a required EDA plan update due July 2025.
City staff provided the Loan Administration Board with an update on outstanding loans, fund balances and the required Economic Development Administration (EDA) plan update.
“Currently, we have approximately $927,000 still outstanding in our receivables,” Christine said, summarizing delinquencies and collection steps. She named Fountain View Mini Market, Kina L. Braun LLC, BLP Enterprises and Chelsea Fit Factory as accounts with collection activity involving legal counsel or small claims court.
Christine outlined available balances after a recent loan reclassification. She said the EDA 2022 fund has a $125,000 loan pending to Helaponics and only $29,323.84 available; the Community Revitalization Loan Fund (CRLF) holds $79,617.70 after the Parks and Recreation loan move; and approximately $381,000 remains available in another account referenced during the update. She added the funds are receiving roughly $20,000 a month in payments.
Staff reviewed the EDA plan update, which is due to EDA in July 2025 and reflects program goals and geographic target areas. Christine said the city is aligning the plan with regional strategies and a draft SEDS (Strategy for Economic Development) being developed by the regional economic development coalition, sometimes referred to in the meeting as EREP. “We do include a map with it,” Christine said, and asked board members—many of whom are bankers—to provide feedback on the financing strategy in Section C.
Board member Josh noted the coalition’s work on district designation and SEDS approval timing, saying the draft SEDS has been approved by that coalition’s board and will be submitted as part of the city’s materials.
Staff recommended caution on loan size given the funds’ capital base; Christine said the capital base of a particular fund is $273,000 and suggested keeping individual loans below 50% of that base where possible. She said the board may consider smaller working-capital loans averaging $25,000 to $100,000.
Directions and next steps recorded in the meeting included a request for written feedback to Lisa (staff) within roughly a month, aiming for board approval of the plan by May or June so it can be submitted to EDA in time for the July deadline.
