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i The bankers that were asked were also of the opinion that there was value in assurances from the HRA that a certain parcel was not to be acquired or a certain business or home was not to be removed. As one banker noted, a principal concern of a lending institution is the certainty it can have regarding the conditions affecting the property ' on which it is making the laon. The elements of the redevelopment plan and the HRA assurances as to its plans can reduce any uncertainties that may exist for properties that are not proposed to be acquired. In this regard, properties in the "possibly to be acquired" category will also be subject to some uncertainties, and therefore, may face some restrictions on financing. On this point, however, I was unable to obtain any real information. LA March 24, 1977 TO`: The Honorable Chairman & Commissioners of the New Brighton Housing and Redevelopment Authority FROM: Barry P. Johnson, Executive Director RE: Impact of Inclusion in Redevelopment Area At its last regular meeting, the Commissioners directed that I research the effect of inclusion in the redevelopment area on the ability of a property onwer to obtain commercial financing. We contacted Northwestern National Bank, Minnesota Federal, Home Federal, 1st Minnehaha, Twin City Federal and lst State Bank of New Brighton, as well as, the Hopkins, South St. Paul and Minneapolis HRA's. All information was received over the telephone. The general consensus, agreed to by all parties contacted, was that inclusion in the redevelopment district, per sp, had no effect on ability to obtain financing. Three of the banks and savings and loans indicated they have made loans in redevelopment areas. While some persons asserted that there were no problems at all in obtaining financing, at least three of the persons contacted felt that being designated for acquisition and clearance would affect the terms under which financing could be obtained. It was felt that these properties would be less attractive for financing and that the term of loans would be shorter, while the amount of loan that would be approved would be less. It was felt that home improvement loans for property to be acquired would be very difficult to obtain. This seemed to be especially true for residential property. For businesses, decisions on financing were made primarily on the financial strength of the business.