6. EDSR 08-13-2012 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Finance Committee AGENDA SECTION MEETING DATE PREPARED BY August 2,2012 Annie Deckert,Director of Economic Development ITEM DESCRIPTION REVIEWED By Energy Efficiency Improvement Program Micro Loan Cal Portner, City Administrator Application,P.S...Dance Studio REVIEWED BY ACTION REQUESTED Consider Energy Efficiency Improvement Program Micro Loan application for PS...Dance Studio and make recommendation to the EDA with conditions as outlined in staff report BACKGROUND/DISCUSSION P.S...Dance Studio is an existing business which has operated in the Elk River for 15 years. They provide various dance classes to children ages 3 to adult in classes that include ballet, tap and jazz and vary from recreational to competition team. The studio's CEO,Pamela Sitts,is also a certified teacher. She and her six instructors have access to continuous training with some of the nation's top professional coaches which enables P.S...Dance Studio to provide students with up-to-date dance steps and techniques. Currently located at 11110 Industrial Circle, the applicant would like to purchase the building at 251 8th Street NW. The space is ready for occupancy but requires minor renovations including an electrical system update and new HVAC unit. Ms. Sitts has met with Tom Sagstetter of Elk River Municipal Utilities to tour the property. Mr. Sagstetter has verified the electrical system upgrade and new HVAC unit as eligible improvements under the Energy Efficiency Improvement Micro Loan Program. Per the loan guidelines,an Elk River Energy City Commission member will participate in the review and recommendation of the application. Ms. Sitts requests an Energy Efficiency Improvement Micro Loan of$28,000 to make the necessary improvements ($12,000 electrical and$16,000 HVAC improvements). She is purchasing the building on a contract for deed and the EDA would obtain a second position mortgage on the property and secure a personal guaranty. Per staff recommendation,Ms. Sitts worked with Jack Gabler from the Small Business Development Center to put together her business plan narrative (attached) and financial plan (provided at meeting). Mr. Gabler supports Ms. Sitts' plan and indicates she has demonstrated a solid business plan and will improve her financial position by relocating to the new facility. In addition to the financial criteria that must be considered, the Finance Committee must also consider to what degree the applicant satisfies the criteria set forth in the Micro Loan Fund policies outlined below: IQIEREn BE [NATURE