LODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, OCTOBER 3, 2023
A.
Call to Order / Roll Call
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, October 3, 2023, commencing at 7:32 a.m.
Present: Council Member Bregman, Council Member Nakanishi, Council Member Yepez, Mayor Pro Tempore Craig, and Mayor Hothi
Absent: None
Also Present: City Manager Schwabauer, Interim City Attorney Lucchesi, and City Clerk Nashed NOTE: Mayor Pro Tempore Craig attended the meeting via teleconference.
B.
Topics
B-1
Accept Presentation on Potential Hometown Microloan Administrators’ Lending Approaches and Provide Staff Direction on Preferred Approach (CM) City Manager Schwabauer provided a brief introduction to the item.
Discussion ensued with Council Member Nakanishi and City Manager Schwabauer regarding the two approaches to the program.
Business Development Manager Astrida Trupovnieks provided background information on the Microloan Program.
Discussion ensued with Mayor Pro Tempore Craig and Business Development Manager Trupovnieks regarding the $20,000 fee to the Small Business Development Corporation (SBDC).
Business Development Manager Trupovnieks provided a PowerPoint presentation regarding the Hometown Microloan Program. Specific topics of discussion included review of two approaches, California Capital - hybrid approach, Main Street Launch - leveraged capital approach, and comparison of compensation.
Council discussion ensued with Business Development Manager Trupovnieks and City Manager Schwabauer regarding amount of interest on each type of loan, City buy-down of part of the interest to ease interest amount on borrower, periodic review of the buy-down, and the difference between the two prospective lenders' offers.
Mayor Pro Tempore Craig requested to receive information from each lender on their program.
Jacob Singer appeared via Zoom and explained Main Street Launch's program.
Brian Zcheile explained California Capital's program.
Mayor Pro Tempore Craig stated her preference for California Capital and a program that will continue with revolving funds.
Discussion ensued with Mayor Pro Tempore Craig, Mr. Singer, Mr. Zcheile, and City Manager Schwabauer regarding default rates and possible refund of City fees in the case of default.
Discussion ensued with Mayor Pro Tempore Craig and Assistant City Manager Andrew Keys regarding the investment of the funds that have been set aside for the microloan program.
Mr. Singer stated Main Street Launch is the largest CDFI community advantage lender in the country and is able to transition microloans to larger loans up to $350,000 at no cost to the City or to quickly handle loans which exceed the $50,000 cap for microloans through the SBA community advantage product.
Interim City Attorney Lucchesi clarified that this is an informational item and no motion is needed.
C.
Comments by Public on Non-Agenda Items
None.
D.
Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:11 a.m.
ATTEST:
Olivia Nashed
City Clerk