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96-1568 • . �k � � b ( 't � Council File # �\" ��-�� .l Green Sheet # � �� - RESOLUTION ,::�::::; CIT OF AINT PAUL, MINNESOTA 37 �, "'� Presented By ��.\�� . � Referred To Committee: Date 1 1997 Cultural STAR Recommendations for Change ? WHEREAS, on July 13, 1994, the City Council of the City of Saint Paul established the Cultural Capital 3 Investment (Cultural STAR) Program, C.F. 94-100�; and 4 � WHEREAS, the Cultural STAR Program is funded ��ith ten percent of an additional one-half of one 6 percent sales tax on sales transactions that occur �vithin the city, pursuant to Minnesota Statutes. Chapter 7 297A, authorized by the State of Minnesota, Chapter No. 375, Sec.46; and b 9 WHEREAS, policy changes as listed on Attachment A, and as summarized belo�v are recommended to the 10 City Council; and ll 12 WHEREAS, Cultural STAR guidelines require the City Council to "clearly and publicly state and review 13 annual priorities for the use of the cultural sales tax funds"; and 14 15 WHEREAS, the Cycle 3, 1997 priorities and "more likely" and "less likel}� to fund" lists will provide 16 applicants with a better idea of what kind of projects are expected from this program; and 17 . 1:. = �WHEREAS, the available funds per round �vill be calculated to allow for more rapid use of the fimding 1 y •'�pool as stated in Attachment A; and 20 21 WHEREAS, fees for the Cultural STAR Program �vill be made consistent with fees for the NeiQhborhood� 22 Program; and � 23 24 WHEREAS, a �vaiver to the 5-year multi-funding guideline requirement be approved in order to allocate 25 Cultural grant funds to the Science Museum Project for the next 10 years beginning with Cycle 3; and 26 27 : WHEREAS, funds allocated to the Science Museum are recommended in the amount of $186,746 for the 28 ; first•"3 years and S 156,746 for the remaining +�years, in addition to funds in the amount of $1�0,000 per{. 29 ' year which ��ere previously recommended in Resolution #95-1459, 12/13/95; and �0 `— --_.,..______..._....�___.___.._�__._.__..�___.___._._.__�_______._..._.-- �1 WHEREAS, the establishment of a Cultural STAR Business Revolving Loan Program, described in �2 Attachment B, to better address the needs of businesses located in the Cultural District is recommended; 33 and ,�, :�� VHEREAS, Ptirsuant to section 10.07.1 of tlle City Charter, changes to the 1996 budaet as listed on Pa�e ,5 2 of this resoltition are recommended. � y ;7 �3 NO��', THEREFORE, BE IT RESOLVED, that the City Council appro��es the cycle 3, 1997 changes to ;`� the Cultural STAR Program as described in Attachment A; and =1 BE IT FURTHER RESOLVED,that the City Cotincil approves the multi-_fun_d__ing allocation of funds to the , Science I�luseum project; and �`� � Pa�e� 1 of 2 -�-. . 45 . . C��o=�� 46 BE IT FU2THER RESOLVED, that the City Council hereby establislies a pilot Cultural District Business �7 Re��ol��ing Loan Program as described in Attachment B; and 48 �ll�--\�1,��:-:::-:� 49 BE IT FURTHER RESOLVED, that the City Council approves the finance and s endin lan liste �.� 50 belo«��µ,L 1�4G 1��'v�. p � p d �1 �2 �3 FINANCING Budget Change Proposed �4 Cultural Loan Budget �� P7-930-90309-9830-00000 0 100,000 100,000 �15 Culturai Grant Budget �7 P7-930-90310-9830-00000 0 346,746 346,746 �g -'� Totais 0 446,746 446,746 50 bl ,�'SPE�DING �`°.""""°`"- 62' #500-97 Science Museum Project II 53 P7-930-90310-0547-77104 0 336,746 336,746 °`'•� ,5.� '�.'- .._._..._ �..,...;�..�-� �� #501-97 Cultural Business RLP �� '""`°""""-'�-----�-�-----�--___,��....... -- 5b P7-930-90309-0547-77105 0 100,000 100,000 57 P7-930-90310-0547-77105 0 10,000 10,000 68 69 Totals 0 446,746 446,746 � )'Y� U`F:.,� Yeas Navs Absent a ev Requ st y Department of: Bostrom �erin 'P annin & Econ ic Develo ment arris e4ar Rettman - ` r.une gY: � �L� �L v' Adopted by Council: Date Form App ed by City I�ttorney Adopt•:on Certified by Council Secretary . By: BY Approved by Mayor: Date Approved by Mayor for Submission to Council By: By�� 1,1.�� - Pa�e 2 of ? Council File # �� \�� Green Sheet # �� RESOLUTION I OF AINT PAUL, WESOTA 37 Presented By Referred To Committee: Date 1 1997 Cultural STAR Recommendations for Change 2 WHEREAS, on July 13, 1994, the City Council of the City of Saint Paul established the Cultural Capital 3 Investment (Cultural STAR) Program, C.F. 94-1005; and 4 5 WHEREAS, the Cultural STAR Program is funded with ten percent of an additional one-half of one 6 percent sales taac on sales transactions that occur within the city, pursuant to Minnesota Statutes, Chapter 7 297A, authorized by the State of Minnesota, Chapter No. 375, Sec.46; and 8 9 WHEREAS, policy changes as listed on Attachment A, and as summarized below are recommended to the 10 City Council; and 11 12 WHEREAS, Cultural STAR guidelines require the City Council to "clearly and publicly state and review 13 annual priorities for the use of the cultural sales tax funds"; and 14 15 WHEREAS, the Cycle 3, 1997 priorities and "more likely" and "less likely to fund" lists will provide 16 applicants with a better idea of what kind of projects are expected from this program; and 17 18 WHEREAS, the available funds per round will be calculated to allow for more rapid use of the funding 19 pool as stated in Attachment A; and 20 21 WHEREAS, fees for the Cultural STAR Program will be made consistent with fees for the Neighborhood 22 Program; and 23 24 WHEREAS, a waiver to the 5-year multi-funding guideline requirement be approved in order to allocate 25 Cultural grant funds to the Science Museum Project for the next 10 years beginning with Cycle 3; and 26 27 WHEREAS, funds allocated to the Science Museum are recommended in the amount of$186,746 for the 28 first 3 years and $156,746 for the remaining +r years, in addition to funds in the amount of$150,000 per 29 year which were previously recommended in Resolution #95-1459, 12/13/95; and 30 31 WHEREAS, the establishment of a Cultural STAR Business Revolving Loan Program, described in 32 Attachment B, to better address the needs of businesses located in the Cultural District is recommended; 33 and 34 35 WHEREAS, Pursuant to section 10.07.1 of the City Charter, changes to the 1996 budget as listed on Page 36 2 of this resolution are recommended. 37 38 NOW, THEREFORE, BE IT RESOLVED, that the City Council approves the cycle 3, 1997 changes to 39 the Cultural STAR Program as described in Attachment A; and 40 41 BE IT FURTHER RESOLVED,that the City Council approves the multi-funding allocation of funds to the 42 Science Museum project; and Page 1 of 2 43 45 ��-�� 46 BE IT FURTHER RESOLVED, that the City Council hereby establishes a pilot Cultural District Business 47 Revolving Loan Program as described in Attachment B; and 48 49 BE IT FURTHER RESOLVED, that the City Council approves the finance and spending plan listed 50 below/S��t,, �q46 h�'a`�, 51 52 53 FINANCING Budget Change Proposed 54 Cultural Loan Budget 55 P7-930-90309-9830-00000 0 100,000 100,000 56 Cultural Grant Budget 57 P7-930-90310-9830-00000 0 346,746 346,746 58 59 Totals 0 446,746 446,746 60 61 SPENDING 62 #500-97 Science Museum Project II 63 P7-930-90310-0547-77104 0 336,746 336,746 64 65 #501-97 Cultural Business RLP 66 P7-930-90309-0547-77105 0 100,000 100,000 67 P7-930-90310-0547-77105 0 10,000 10,000 68 69 Totals 0 446,746 446,746 m- �� Yea Navs Absent Re st y Department of: a ev Bostrom uerin P annin & Econ ic evelo ment arris ettman — —� � une BY� � Adopted by Council: Date y.�_�Q',�� Form App ed by City ttorney Adoption Certified by Council Secretary By By: � a ��_ Approved by Mayor for Submission to Approved by Mayor: at,e � Council By: �. BYc�% / � ` � � Page 2 of 2 . . y � � � � ( '�' �J Cour.c:l File . • �. � �C� G:een Sheet � �`��Z 1 RESOLUTION , ,;:.:,.. _ CIT � OF AINT PAUL, MINNESOTA ,37 i r�?� Presented By � ,i ✓ l/ � i •• • � . � P.eferred To , %� Da�e Co-.�_ttee: � --- l 1997 Cultur�il STAIt Rccommendations for Chan�c ? �VHEREAS, on Jul�' 13, 199-�, tfle Cit�• Co�ii�cil of tlie Cit�• ot� Saint �'aul estzblished ttte Ctiltur�l Capital i Investment (Cultural STAR) Pro�ram, C.F. 9-�-100�; and ; , r '� �VHEREAS, the Cultural STAR Pro�ram is fund�d ��•ith ten percent of an additionat one-half oi one 'S percent sales tax oil sales transactions that occur w�ithin the city, pursuant to �-finnesota Statutes. Chapter "3 297A, authorized b�� the State oF ti�finnesota, Chapter I�To. 37�, Sec.46; and i� ;� WHEREAS, policy chan�es as listed on Attachment A, and as stimmarized below are recommended to the ';d City Council; and } � . . 1? WHEREAS, Cultural STAR guidelines require the City Council to "clearly and publicly state and revie�v ;t 3 annual priorities for the use of the cultural sales tax funds"; a�nd I;�. ��':� ��/HEREAS, the Cycle 3, 1997 priorities and "more likely" and "less likel}� to fund" lists w�ill pro��ide ��b applicants ��ith a better idea of«�hat kind of projects are expected from this program; and .:� . :. ..'.�VHEREAS, the available funds per round �vill be calculated to allo�v for more rapid use of the ftindin� ' '::'' :;ool as stated in Attachment A; and - :� � • • .I `VHEREAS, fees for the Cultural STAR ProQram ��•ill be made consistent «�ith fees for the I�TeiQhborhood� :2 Pro�ram; and , ., �' �VHEREAS, a �vai��er to the �-year multi-fundin� auideline requirement be appro��ed in order to allocate � Cultural arant funds to the Science Museum Project for the nezt 10 }'ears beQinnina «�ith Cycle �; an� ,, - � ---- -- - ��THERE.�S. fun�:s a!'tocat�4 to the Science `<1u�e.�m are recamr�ended ir1 the zmotlnt of S1S6,7�'.� fo: t�,-� _ tir�� :'3 �'ea-s ar.�: S1�6,7�5 fo: th� remainina r' ti�e`:�, in addi:io:: to funCS i^. tne a.,lount of SI�G,G00 �� e�- ��.�ili.... ��.�e-� �:�� i:�,�s!�� reco:��.ended in Re,olu�ion `9�-14�9, 12!1_!Q�; z:;� - -------._�._----- ___._._._..._------ --. _. . _. ........----- _..._--___-------- . `,�'H��..`.S. ti�::: :_:�b:isfu��en: of � Cul�u;al ST.',R B��siness Re�:ol��in� Lo::� Pro�ram. describec i:�: _ Att�ch:ii�<<t �3. �e b��er ad�iC2�S j('.C'. needs of b::sines��,s loca!ed in tlle Cul_G-a! Di�trict is reconL-r.ende�:�; _ and `�'1-1F��:'.�. l�i':.-_....,., i0 �°��i��i� ii).�) . � Oi �I'.., �� '' (_�Il:'.�it'i. Cii3'l�;Z� IQ i,:._ i��U bud�:t �� IISi°� C':-. , - _ Oi i(l:� ��;O�l!..�'. �.._ .�COi�'.ili:i'_.�_. `�O``.� :H�('..FFOf::_. F3�= � ,- ,>FSJ:_'��D. t:�.:�.: ..._ C: . Cc�...._.. �;��:��, �� :.._ c.,ci_ �. 1997 cn�. _- _: -. �_ ,. �.',_ ` l!�ill".:� � � . ... .'C��=i�:i.. i_ li�_:Cl��l li. . ...:'.�ii...°i1. .-.. ....: .j!: 'l l F L'��-E�F p •,�,��)' ` 1=��_t�':'' t�,_ (_�l' �_C..ilCl� ?:l�i��',':� [i.., IilU�'t-f!:' '? ��OC�ltlOil C�: f!�.___ : ' ' - .._. _ � _ _ . . . --�=� ---- - - ..,. - - --------- ��y.� �•'� � , � �3 �1��J � -G IIE IT FURTHER RESOLVED, that the City Council liereb�• establishes a pilot Cuitural District Busine;s �7 Re�•ol�•in; Loaii Pro�ram as described in Attachment B; and ��r�� . s ` � ; �y BE IT FURTHER RESOLVf D, that tl�e City Council appro�•es the finance and spendin� plan Iisted ; � belo��•f'i��+c, IQqG 6��'0'{�. - . � � ' � 3 FINANCING Budget Change Proposed -� Cultural Loan Budget � P7-930-90309-9830-00000 0 100,000 100,000 � Cultural Grant Budget 7 P7-930-90310-9830-00000 0 346,74� 346,746 � > Totals 0 446,746 446,746 } 1 r�S P E�1 D I N G --.._~..-___.._.�_..._�.__________�_�`_�y ?� �500-97 Science Museum Project II � � P7-930-90310-0547-77104 _ ^y^�M1–�__ _` p�-_`-336,740 336,746 �``�, � ��,-..– ---- � • 1 � #501-97 Cultural Business RLP "--- --�---•�--•-�--- - --� � P7-930-90309-0547-77105 0 100,000 100,000 ? 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'� i" /� . /. 1�'.�// ,�� , l/ �� / � . �• /� �"•/ . . ��/-' /� � •��• ./r� 'ti '% . . _ i//�i�J. `��, ''i �-t� f,/ y�// / `�`` i� � �� . _�.J, � � , , . � 'j. i: - .. ,.�r. � . . .�,�ti..:: � /� . - . . L. " , . . . . . ' . . ' � , ' � • '! � � ` . /". . � � � • �� % ��(0`� � r � ��. �� °�n''°�'��onomic Development DATE��j�,l�� 3 g 2 3 2 GREEN SHEET (�►�p�6 PHONE INITIAUDATE INITIAUDATE JO$II' l l'1[ISCII 6-6694 Q DEPARTMENT DIRECTOR �CITY COUNCIL ASSION �CITY ATTORNEY �CITY CLERK NUMBLq FOR gUDQ�T DIRECTOR FIN.8 MQT.SERVICE3 DIR. MUSI @F,ASI/�QUNEIL AGENDA BY(DATE) pp��Np � � 1Zi11 96 ORDER �pAypR(OR ASSISTAN� � TOTAL#OF SIGNATURE PAGES 1 (CLIP A�L LOCATIONS FOR SIGNATUREj ACTION REQUESTED: Approval of 1997 policy changes to the Cultural STAR Program and allocation of funds for the Science Museum Project and a Cultural STAR Business Program. RECOMMENDATIONS:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER TNE FOLLOWINQ QUESTIONS: _PLANNINQ COMMISSIQN _ CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a coMract for this department? _CIB COMMITTEE _ YES NO 2. Has this person/flrm ever been a city employee? _STAFF — YES NO _ oIS7RIC7 COUR7 _ 3. Does this person/firm possess a skill not normally posaessed by any current city employee? SUPPORTS WMICH COUNCII OBJECTIVE7 YES NO Explain all yss answan on ssperats�hest and attach to qroen ihsst INITtATd�G PHOBLEM,ISSUE,OPP6IRTUNITY(Who,What,When,Where,Why): Establishing the City Council priorities for the 1997 (Cycle) 3 Cultural STAR Program and setting aside funds for two projects. ADVANTAOES IFAPPROVED: A clear message regarding program egpectations will be sent to applicants and two projects will receive funds. DISADVANTACiES IF APPROVED: .. , Vtii�lC�.„i6# . .,.., : . �v�� t,. .�.t•�;�i . None 1��..� � � �9�6 x .,....:_::r�.�i DISADVANTA(iE3 IF NOT APPFOVED: Program priorities will not be clear and projects will not be funded. TOTAL AMOUNT OF TRANSACTION S �/ b �� COST/REVENUE BUDGETED(CIRCLE ONE) YES NO Cultural STAR Program � FUNDItiG SOURCE ACTIVITY NUMBER� e,�,�� FINANCIAL INFORfuiATION:(EXPLAIN) ROUTING ORDER: Below are correct routings for the five most frequent types of dxuments: CONTRACTS(assumes authorized budget exists) COUNCIL RESOLUTION(Amend Budgets/Accept.Orents) 1. Outside Agency 1. Department Director 2. Department Director 2. Budget Director 3. City Attomey 3. City Attomey . 4. Mayor(for contracts over$25,000) 4. MayoNAssisiant 5. Human Rights(for contracts over$50,000) 5. City Counal 6. Finance and Management Services Director 6. Chief Accountant,Finance and Management Servioes 7. Finance Accounting ` ADMINISTRATNE ORDERS(Budget Revision) COUNCIL RESOWTION(all othera,end O�dinences) 1. Activity Manager 1. Depertment Director 2. Department Accountant 2. City Ariorney 3. Department Director 3. Meyor Assistant " 4. Budget Director 4. City Council 5. City Clerk 6. Chief Accountant, Finence and Manegement Services ADMINISTRATIVE ORDERS(all others) 1. Department Director 2. City Attorney 3. Finance and Management Services Director 4. City Cletk TOTAL NUMBER OF SIf3NATUHE PAGES Indicate the�of pages on which signatures are�equired and papsrclip or flay �ach of these pages. ACTION REQUESTED Describe what tf�e projecUreques�seeks to accomplish in either chronologi- cal order or order of importance,whichever fs moat appropriate for the issue. Do not write complete sentences.Begin each item in your list with a verb. RECOMMENDATIONS Compiete if the issue in quesdon has been presented betore any body,public or private. SUPPORTS WHICH COUNCIL OBJECTIVE? Indicate which Council objective(s)your projecUrequest supports by listing the key word(s)(HOUSING, RECREATION, NEIGHBOHHOODS, ECONOMIC DEVELOPMENT, BUDGET,SEWER SEPARATION).(SEE COMPLETE LIST IN INSTRUCTIONA�MANUAL.) PERSONAL SERVICE CONTRACTS: This informetion will be used to determine the city S liability for workers compensation cleims,taxes and proper civil aervice hiring rulea. INITIATING PROBLEM, ISSUE,OPPORTUNITY Explain the situation or conditions that created a need tor your project or request. ADVANTAGES IF APPROVED Indicate whether this is simply an annual budget procedure required by taw/ charter or whether there are specific ways in which the City of Saint Paul and its citizens wili benetit irom this projecVaction. DISADVANTAGES IF APPROVED What negative effects or major changes to existing or past processes might this project/request produce it it is passed(e.g.,traffic delays, noise, tax increases or assessments)?To Whom?When?Fo►how Iong1 DISADVANTAGES IF NOT APPROVED What wili be the negative consequences if the promised action is not approved?Inability to deliver service?Continued high traHic,noise, accident rate�Loss o(revenue? FINANCIAL IMPACT Although you must tailor the information you provide here to the issue you are addressing,in general you must answer two questions: How much is it goi�g to cost?Who is going to pey? �� Attachment A Resolution # Recommendations for Changes to the Cultural STAR Program SAINT PI1UL STAR * Policy Recommendations: 1997 Priorities PRi�'1 To reaffirm the Cultural STAR Program statement of purpose and to more sharply define the 1997 request for proposals. Program Purpose and Objectives (Excerpted from the adopted Cultural STAR Guidelines) The proceeds of the tax are to be used for capital projects to further residential, cultural, commercial and economic development and the intent of the City Council is that the proceeds be used in such a way that they have significant and positive long term economic impact. Funding of any capital project... shall comply with one or more of the following criteria. A. Provide cultural and economic benefit to Saint Paul B. Leverage the sales tax dollars with private resources C. Create and/or retain jobs D. Enhance and support the cultural district as a visitor attraction E. Develop relationships between the cultural district and the neighborhoods F. Stimulate vitality of downtown G. Support and enhance Civic Center investment The initial priorities for the use of these funds have been: A. Relationships between attractions - physical or architectural enhancements of place B. Projects which help stabilize the district C. Projects which help generate financial return to the cultural fund D. Projects which contribute to improved quality of visitor services - such as enhanced street lighting, kiosks, information centers, signage, ticket services, parking, restaurants, etc. In order to assure that sales tax funds move more quickly into the community, it is recommended that available funds for Cycle 3 of the Cultural STAR Program include funds collected from December 1995 through March 31, 1997. Funds available for Cycle 4 will include funds collected from April 1997 through June 30, 1998. Each cycle will still be announced on December lst with an estimate of available funds. Fees for the Cultural STAR Program will be made consistent with fees for grants and loans in the Neighborhood STAR Program. Page 1 �, �\�� Priorities for the 1997 Cycle of the Cultural STAR Program According to the adopted guidelines, "The City Council and Mayor shall clearly and publicly state annual priorities for the use of the cultural sales tax funds." The following are proposed as additional 1997 annual priorities. A. Projects and programs which help stabilize, through capital support, cultural organizations within the cultural district. The emphasis should be on "front of stage services" which impact the visitors. B. Projects which meet identi�ed cultural customer and visitor needs - such as additional parking and restaurants, and signage for cultural organizations. C. Projects which are supported by planning efforts such as the Wabasha Initiative, West of Wabasha report, or the Greenberg Planning Framework, particularly as they relate to Wabasha, Rice Park, the 7th Place Plaza, Saint Peter Street, and West 7th Street close to the Civic Center. In addition to the specific requests listed above, the following are proposed as examples of types of proposals that the Mayor and Council are "more likely to fund" and "less likely to fund" in the 1997 Cultural STAR cycle such as: "More likely to Fund in 1997" 1. Maximize the leverage of City STAR funds 2. Projects and programs which help stabilize the cultural district through capital support, of cultural organizations in the district 3. Projects which respond to identified cultural visitor needs such as increased and conveniently located safe parking, additional restaurants, and additional location signage for cultural institutions. 4. Projects which are supported by planning efforts such as the Wabasha Initiative, the West of Wabasha Report, and the Greenberg Framework, particularly as they pertain to Saint Peter, Wabasha, the 7th Place Plaza, and Rice Park. 5. Projects which are visible. 6. Proposals supporting multi-cultural dimensions of our community 7. Proposals that accentuate or emphasize Saint Paul's unique collection of cultural resources in the Cultural District "Less likely to Fund in 1997" 1. Commercial projects or amenities that do not serve people at street level 2. Projects with no visible effects. 3. Projects lacking adequate and specific matching funds N:UMIISTARCULT\97RECOMD Page 2 �lc�— \�l�� Attachment B Resolution # THE CULTURAL DISTRICT STAR BUSINESS REVOLVING LOAN PROGRAM (RLP� �"'"�P"�� STAR PROGRAM �1 BACKGROUND: Recently City Council members approved a Neighborhood STAR Business Program to better serve neighborhood businesses. This proposal would address the needs of businesses located in the Cultural District. The program would provide more flexibility by allowing businesses to apply for funds throughout the year. The Business Resource Center would administer the program in coordination with the Cultural District Business Association. GAPS: 1. Downtown businesses have difficulty qualifying for CDBG funds. 2. Federal regulations make it difficult, if not impossible, to fund specific improvements such as parking construction or renovation. 3. Business owners question the economics of complying with city regulations on loans of $50,000 OI' IeSS. (The average city loan for businesses has risen to $100,000.) PILOT REVOLVING LOAN PROGRAM (RLP� PROPOSAL: Allocate $200,000 loan and $20,000 grant funds from the next two cycles of the Cultural STAR Program to operate a revolving loan program for businesses located in the Cultural District. ($�00,000 IoaN$10,000 grant funds from the 1997 budget and$100,000 loan/$10,000 grant funds from the 1998 budget.) PED's Business Resource Center will administer the program increasing flexibility by using the STAR funds in conjunction with current loan program funds in an effort to best meet the needs of each business. The grant funds will be used as an incentive to cover the extra construction costs that result from compliance with Little Davis Bacon and the City's Human Rights Department requirements which apply to the STAR Program. GUIDELINES: The Cultural STAR Business Revolving Loan Program funds must be used for capital improvements in accordance with current Cultural STAR Program Guidelines. 1. Businesses located in the Cultural District are eligible to apply. 2. These funds will be used to assist businesses that can not qualify for additional financing through private lending sources. 3. A business may apply any time during the year, thereby meeting business needs in a timely manner. 4. Maximum loan target = $50,000 Minimum loan = $10,000 5. Grant funds must be tied to a STAR loan and will not exceed 10% of the loan. 6. Minimum match requirement is 1 private dollar to 1 STAR dollar. 7. Terms will be consistent with the goal of an overall 5% return on STAR loans. 8. Loans will be risk rated and terms will be evaluated by the PED credit committee. The loans will be approved by City Council. 9. January 1, 1997 will be the starting date for the loan program. These loan funds will be disbursed within 2 years. Repayment of loan principal will revolve back to the Cultural STAR Business RLP to be used on future loans. N:UMT�STARCULIILOANCITY.RLP