The URL can be used to link to this page

Home My Public Portal About002-2021 - To release Federal interest from the EDA to Revolving Loan Fund COMMUNITY AND ECONOMIC DEVELOPMENT LOAN FUND BOARD CITY OF RICHMOND, INDIANA RESOLUTION NO. 2-2021 A RESOLUTION OF THE RICHMOND, INDIANA COMMUNITY AND ECONOMIC DEVELOPMENT LOAN FUND BOARD SUPPORTING THE RELEASE OF THE FEDERAL INTEREST IN A GRANT FROM THE U.S. ECONOMIC DEVELOPMENT ADMINISTRATION TO THE REVOLVING LOAN FUND, EFFECTIVELY DE-FEDERALIZING THOSE FUNDS WHEREAS, the Economic Development Loan Fund Board (commonly referred to as the Revolving Loan Fund Board and hereinafter referred to as "RLF"), is established through Richmond City Code 61.01, et. seq. in order to provide a local non-tax dollar source of funds necessary for the administrative and professional aspects of economic development, and to provide necessary monies to assist with the location of new business and industry and expansion of existing business and industry; and WHEREAS, expenditures out of the above-described fund include, but are not limited to: (1) low interest loans in conjunction with conventional loans through lenders; (2) historic preservation loans in conjunction with conventional loans through private lenders; (3) housing rehabilitation loans; (4) eligible community, economic and rehabilitation and preservation activities; (5) local matching funds necessary to obtain State and/or Federal grants relating to community and economic development; (6) necessary administrative and professional costs associated with community and economic development activities; (7) provide loan guarantees of private sector funds, but not exceeding the financial capability of the fund and not encumbering other City funds, resources and/or property; and(8) expenditures out of the above-described fund utilizing money provided to the fund by the Urban Enterprise Association of Richmond, Inc. ("UEA") shall only be used within the designated enterprise zone in accordance with the program standards established by the"UEA"; and WHEREAS, RLF was the recipient of a grant from the United States Economic Development Administration ("EDA"), which grant bears Award # 063902088 with an RLF Capital Base of $1,710,010.77 (hereinafter referred to as the "Grant"), which is according to the terms of the Grant; WHEREAS the Grant has a Federal Investment Rate of 71.43%, and a Federal Share Base of $1,221,460.69; WHEREAS, RLF has utilized its Revolving Loan Fund in order to provide capital for business development and expansion opportunities that attracts and leverages additional investments, and the RLF has endeavored to completely comply with the EDA's terms and conditions as the same are more fully-set forth in the Grant; and WHEREAS, the 116th Congress of the United States of America passed S. 4075, the Reinvigorating Lending for the Future Act ("Act"), which was subsequently signed into law by the President of the United States of America; and WHEREAS, the Act provides for the release of certain federal interest in certain Revolving Loan Fund awards that have operated satisfactorily for seven (7) years beyond disbursement of grant funds, which will reduce RLF's administrative burden and allow RLF award funds to be used for broader economic development purposes; and WHEREAS, RLF is committed to using the funds for one or more activities that continue to carry out the economic development purposes of the Public Works and Economic Development Act ("PWEDA") in compliance with on-going restrictions required by the Act as articulated in a release agreement to be executed with the EDA. NOW, THEREFORE, BE IT RESOLVED, that the Community and Economic Development Loan Fund Board of Richmond, Indiana approves the release of certain Federal interest in the revolving loan funds described herein, which may be more particularly described in a letter of application to the Economic Development Administration for the purposes herein mentioned, all as permitted by the Reinvigorating Lending for the Future Act BE IT FURTHER RESOLVED, that the Community and Economic Development Loan Fund Board of Richmond, Indiana directs that the appropriate staff submit a formal written request to the Economic Development Administration to release its federal interest in Grant Award # 063902088 in accordance with the policies and procedures established by the Economic Development Administration, and that we shall use the RLF for one or more activities that continue to carry out the economic development purposes of PWEDA in compliance with ongoing restrictions required by the Act as articulated in the release agreement; and BE IT FURTHER RESOLVED, that the Community and Economic Development Loan Fund Board of Richmond, Indiana has complied with the terms of the conditions of the RLF Award such that it is permitted to make the request described herein; and BE IT FURTHER RESOLVED, that the Community and Economic Development Loan Fund Board of Richmond, Indiana expresses its appreciation to the Economic Development Administration for the assistance rendered to the Richmond community and for its guidance and assistance in carrying out the terms of the Grant thus far. Passed and adopted this /4 day of -71etUUUUV , 2021, by the Community and Economic Development Loan Fund Board of the City of Richmond, Indiana. CJ 4 ,President Printed: / F;e441-C-- y ATTEST: O1:v Printed: ZeAh ri°tiefS oQ Alep IA�4 DAVID M.SNOW Mayor CITY OF RICHMOND ANDREW J.SICKMANN DEPARTMENT OF LAW City Attorney 50 NORTH FIFTH STREET RICHMOND,INDIANA 47374 KIMBERLY A.VESSELS PHONE(765)983-7220 FAX(765)983-7365 Assistant City Attorney May 12, 2021 Ms. Susan Brehm Regional Director U.S. Department of Commerce Economic Development Administration Chicago Regional Office Re: Application to Request Release of EDA's Federal Interest in EDA Revolving Loan Fund Award Dear Ms. Brehm: The undersigned serves as Corporation Counsel to the City of Richmond, Indiana, and it is in that capacity that this correspondence is being relayed. Mayor David M. Snow provided me with a letter that your office sent to him on February 2, 2021 wherein the City's Revolving Loan Fund Board was invited to request that the EDA release its federal interest in an RLF award. This letter provided a helpful explanation of the criteria which needs to be provided in order to effectuate the release of federal interest as described therein. Toward that end, please find enclosed a Resolution passed by the Community and Economic Development Loan Fund Board of Richmond,Indiana, which directs its staff to submit a formal written request to the EDA to release its federal interest in Grant Award# 063902088 in accordance with the policies and procedures established by the EDA. In response to the requested information and materials in your letter of February 2, 2021,we would offer the following: 1. Organization's name and contact information: Community and Economic Development Loan Fund Board of Richmond, Indiana; Beth Fields, 50 N. 5th Street, Richmond, IN 47374, 765-983-7211. 2. Award#: 063902088. 3. Date of Award: August 15, 1985 4. Federal Investment Rate: 71.43% 5. Evidence that final disbursement occurred more than seven years ago: see materials enclosed herewith. 6. Value of the RLF award: $500,000.00; Capital Base: $1,710,010.77. 7. Proposed use of RLF funds for one or more activities that continue to carry out the economic development purposes of PWEDA: Operate an RLF that makes loans to for-profit organizations. • Investments that support construction, non-construction,planning, technical assistance, and revolving loan fund projects. 8. Certification b your organization that it has complied with the terms and conditions of the RLF award: see Resolution enclosed herewith. 9. Final RLF Financial Report(Form ED-209) for the RLF award: see materials enclosed herewith. 10. Most recent Single Audit: see materials enclosed herewith. If approved,we will execute a Release as tendered by the EDA. Thank you for your time and attention to this matter, and if you need additional information please do not hesitate to advise of the same. Best Regards, Andrew J. Sickmann Corporation Counsel • City of Richmond, Indiana Best Regards, Andrew J. Sickmann