The new fund would use money accrued through interest on the revolving loan fund.
Beginning in August, the money would be available for building homes in the recently approved workforce housing subdivision for four years. Afterward, the full amount would be repaid to the revolving loan fund.
At the EDA meeting on April 28, city officials emphasized that the concept was one used in Nicollet Meadows and Washington Terrace in 2000 and 2003.
“The EDA would undertake the same activities that they undertook in the first two subdivisions,” Community Development Director Russ Wille said. “Under any consideration, it has to be seen as a success.”
The great difference this time is that the EDA’s money is the source. In the previous occasions, the city received a $700,000 no-interest loan from the Greater Minnesota Housing Fund for speculative home construction.