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CEDA urges Rushford Village to consider using revolving loan fund for infrastructure to spur housing
Summary
At the May 19 meeting, Jayme Longmire of CEDA reported the city's grant applications were unsuccessful and proposed using the city's Revolving Loan Fund for infrastructure (for example, a well) to attract housing development; council members expressed preliminary support and attorney Joseph O'Koren said DEED likely would need to consent.
Jayme Longmire, representing CEDA, reported to the Rushford Village City Council on May 19 that the city's recent grant applications were not selected and that CEDA will submit an application to the Rushford Community Foundation while more grant opportunities open later this summer.
Longmire recapped a recent Rushford EDA housing meeting at MiEnergy and said CEDA is waiting for a collaborative group to form to pursue housing solutions. She proposed exploring whether the city's Revolving Loan Fund (RLF) could be used to support infrastructure for a residential subdivision—specifically offering loan funds for items such as a well—to make a development more feasible for private investors. Under the CRV RLF guidelines, Longmire noted, "the investment and/or development of residential real-estate" is listed as an ineligible project, but the fund language also identifies community development projects as eligible; she said she is seeking DEED guidance on allowable uses.
Councilor Robert Hart expressed support for exploring the idea. City Attorney Joseph O'Koren said DEED (the Minnesota Department of Employment and Economic Development) would likely need to consent to any change in the permitted use of the RLF and that the larger obstacle may be finding a private developer with capital to front a project.
Longmire said an RLF loan structured with a 10-year payback could demonstrate local investment and help leverage private capital. The council did not take formal action; next steps are to await DEED's guidance and continue local outreach and collaboration.
