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EDA approves loan forgiveness for 2014 ACAP rental townhomes; staff says no new financial impact
Summary
The EDA approved forgiveness of a $450,000 loan to Anoka County Community Action Program for rental townhomes built in 2014; staff reported the loan was recorded as an expenditure at the time, so forgiveness will not change current EDA finances.
The Blaine EDA approved a resolution forgiving a 2014 loan to the Anoka County Community Action Program (ACAP) for rental townhomes at the northwest corner of University and 109th.
Elizabeth told the board the EDA loaned $450,000 to ACAP in 2014 using pool TIF dollars. Staff said the conditions for forgiveness specified in the original staff report — namely construction of the project as proposed — were satisfied, making the loan eligible for forgiveness. Elizabeth said the loan had been recorded in EDA finances as an expenditure at the time and not as a receivable, so forgiving the loan would not have an additional financial impact on current EDA books.
Commissioner Robertson moved the resolution and Commissioner Fleming seconded; the motion passed by voice vote.
The forgiveness clears the EDA's books and aligns with the conditions attached to the original loan; staff indicated the action also clears a corresponding obligation for ACAP.
