2. EDSR 08-21-2006 - Laserfiche WebLink

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MEETING OF THE EDA FINANCE COMMITTEE HELD AT THE ELK RIVER CITY HALL THURSDAY, AUGUST 17, 2006 Members Present: Cliff Lundberg, Tom McNair, Paul Motin, Dave Rymanowski and Dan Tveite Staff Pxesenc Director of Economic Development Catherine Mehelich 1. Consider Micro Loan Application: Olde Main Eaterv Director of Economic Development Catherine Mehelich provided a summary of the loan application from Karen and Nagy Attia doing business as Olde Main Eatery. The applicant is requesting an EDA Micro Loan in the amount of $50,000 at 2% to be used toward the property acquisition and to fmance extexiox improvements to the building. The applicant proposes to undertake the following exterior improvements (of which contractor estimates were submitted): replace xeax sidewalk, replace storefront door and windows, and sandblast and patch the xeax wall of the building. The proposed improvements axe estimated to cost $18,463, which exceeds the Micro Loan policy requirement that a minimum of 20% of the requested Micro Loan funds must be used fox extexiox building improvements. The Micro Loan is proposed to be provided on a 15- year amortization and a 5-year balloon to match the bank terms, and at a fixed rate of 2%. The Micro Loan would be secured by a second mortgage on the property. A special meeting of the EDA has been called for August 21" to consider the Finance Committee's recommendation and fox fmal action on the loan request in order to meet the applicant's deadline to exercise the purchase option. Committee member Paul Motin stated by way of disclosure that he does not cuxxendy have a working relationship with Olde Main Eatery as indicated on the application. Therefore he felt he has no conflict of interest with the application. The consensus of the Committee was that it is good to see the applicant's interest in making a commitment to staying and doing business in downtown Elk River. The Committee also acknowledged the significant investment the applicant has akeady made in building improvements such as new awnings and code improvements. Committee member Dan Tviete inquired about if the applicant has indicated an interest in expanding their hours to include dinners and Sundays. Ms. Mehelich stated they have not. MOVED BY CLIFF LUNDBERG, SECOND BY TOM MCNAIR THAT THE FINANCE COMMITTEE RECOMMENDS THE EDA'S APPROVAL OF THE OLDE MAIN EATERY MICRO LOAN REQUEST. THE MOTION CARRIED 4-0-1, COMMITTEE MEMBER DAVE RYMANOWSHI ABSTAINED. The EDA Finance Committee meeting ended at 7:20 a.m. Re/spectfully subymitted,~by/ (ti«-/,~r-~k-,~7 Catherine Mehelich Director of Economic Development