5.0. EDSR 03-13-2006 - Laserfiche WebLink

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ITEM # 5. MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development~~ DATE: March 13, 2006 SUBJECT: Discuss Draft Amendments to Micro Loan Fund Policy Attachment • 1" Draft Revised Micxo Loan Fund Policy dated February 2006 Background At its September 28, 2005 meeting, the EDA Finance Committee discussed the level of financial assistance provided to manufacturing companies entering the City of Elk River. The EDA reviewed a first draft of the amended Micro Loan Fund Policy at its Februaty 13, 2006 meeting. The EDA suggested a revision to include "high technology businesses" as an eligible and desired applicant for the loan funds. In addition, it was suggested that staff request input on the provisions of the Redevelopment Financing component of the loan program from the Housing and Redevelopment Authority (HRA) and the Heritage Preservation Commission (HPC). Update The following suggestions were provided by the HRA and HPC with regard to the Redevelopment Financing Program: • Agreed on limiting the use of the program to the core Downtown District, with the understanding that it may be expanded to include the Central Business District sometime in the future. • Increase the amount of loan funds from $50,000 to $75,000. • Increase the financing terms from a balloon payment in 3 years to allow up to 5 years. • Evaluate the minunum percentage of Micro Loan dollars that must be used toward building fa4ade and rear entrance improvements. • Directed staff to research the requirements that may be necessary fox compliance with the Americans with Disabilities Act (ADA) and fire code. Staff is currently researching the ADA and fire code requirements that may apply to commercial building rehabilitation projects by having discussions with the Ciry's Building Official and reviewing the Ciry of Anoka's Central Business District Fire Protection Grant Pxogxam. Following this research staff anticipates presenting a revised Micxo Loan Fund Policy and Application for the EDA's adoption at the April regular meeting.