05-02-2011 HRA MIN - Laserfiche WebLink

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rate of 2%, with a 10-year amortization and 5-year balloon payment. Ms. Mehelich noted that the terms are consistent with the EDA's Micro Loan Fund, and secured by a mortgage and personal • guarantee of the owners. She explained that the Loan Agreement requires the creation of a minimum of 4 full time equivalent positions at $15 per hour wage within 2 years of project completion. Also, construction much commence before July 1, 2011, per the Spending Plan and statute authorizing use of the TIF funds. Ms. Mehelich reviewed the details of the loan and process for funding the loan. She asked that the HRA consider the resolution at this time. Commissioner Lieser suggested $12 per hour wage be used in the Spending Plan. It was the consensus of the HRA to use this number. Chair Wilson asked if this loan will impact other financing the applicant has in place. Ms. Mehelich stated that the loan would be subordinate to the mongage. She noted that if the business were sold, the loan would become due. She noted that loan would be reviewed bythe cites financial attorney. Ms. Mehelich stated that a site plan has been distributed to the HRA for their review She explained that the site plan will be reviewed bythe Planning Commission May 10th and bythe City Council on May 16th. Staff will work with the applicant on any recommendations. Signage will be considered separately and must meet the cites ordinance requirements for this PUD. She noted that any substantial changes to this plan must go back to the Planning Commission and City Council. There is a purchase agreement in place for both the green space from Fast National Bank and the former Movie Gallerysite. MOTION BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER • LIESER TO APPROVE RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TIF 16 SPENDING PLAN AND AUTHORIZING A LOAN TO ELK RIVER PIZZA RANCH PROJECT. MOTION CARRIED 4-0. 6. Update on The Bluffs of Elk River Ms. Mehelich reviewed the letter from the EDA's attorney, Jenny Bouhon of Kennedy & Graven dazed April 22, 2011. She stated that it is unclear whether or exercising remedies under the Development Agreement will change the outcome without cooperation from the various parties involved. She noted that staff will continue to work with the currentlypropertynwner, MinnWest Bank and developer, MetroPlains to market and maintain the property for its long term intended use as owner-occupied residential. 7. Presentation on CitvBranding Ms. Deckert stated that branding is essentially what people say about you behind your back She provided background information regarding the cit}~s decision to move forward with a branding and marketing strategy. She explainedthat achy--wide branding campaign is an action step and will support the Goals that support the Vision approved bythe Council on October 18, 2010. Ms. Deckert stated that a subcommittee of sixteen people has been created, representing the various stakeholders in the community. Representatives from city staff, Chamber of Commerce, the downtown, manufacturing and local development make up the committee. She explained that the • cites branding consultant, ChandlerThinks, was in Elk River April 27 - 29 to begin market research