6. EDSR 08-13-2012 - Laserfiche WebLink

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MEETING OF THE EDA FINANCE COMMITTEE HELD AT THE ELK RIVER CITY HALL THURSDAY, AUGUST 1, 2012 Members Present: Cliff Lundberg,Nate Ova11,Dan Tveite,Larry Toth and Chad Vitzthum Members Absent: Paul Motin Staff Present: Director of Economic Development Annie Deckert, Assistant Director of Economic Development Clay Wilfahrt,Environmental Administrator Rebecca Haug,Building Official Bob Ruprecht, Conservation and Key Accounts Manager Tom Sagstetter,and Accountant Lori Stich Others Present: Pamela Sitts,Micro Loan applicant,owner of P.S. .Dance Studio 1. Call Meeting to Order Director of Economic Development Annie Deckert called the meeting to order at 8:30am 2. Consider Energy Efficiency Improvement Microloan Application from P.S. Dance Studio—Pamela Sitts Ms.Deckert reviewed the staff report. She noted that Pamela Sins, CEO of P.S. Dance Studio,has been operating P.S. Dance studio for 15 years.P.S. Dance Studio's current location is 11110 Industrial Circle, and Ms. Sitts would like to move to 251 8th Street NW. Pamela's loan request is for$28,000,$12,000 of which will cover electrical costs and$16,000 of which will pay for HVAC improvements. Ms.Deckert explained that the EDA would obtain a second position on the mortgage. She explained the applicant would save approximately$1,800 per month on lease payments and would be utilizing approximately 3,800 square feet of the facility for her businesses,and would market the remaining 2,200 square feet of the facility for office space for lease. Ms. Sitts introduced herself and provided background on her experience as a dance instructor. She stated she is excited to be the first applicant for the Energy Efficiency Microloan. Ms.Sitts also stated that her current location has issues with limited parking and low visibility. Ms. Sitts stated that her proposed location would have much better visibility and better parking. Committee member Cliff Lundberg asked Pamela who will own the building located at 251 8th Street NW. Pamela informed the committee that she is creating a single member LLC that will own it Committee member Dan Tveite recommended that Pamela consider what signage could be used at the potential new location and discuss with city staff what is permissible. The seller of 251 8th Street NW is Paul Heinen from Osseo. Committee members discussed the origination and legal fees charged by the seller and noted that the charges were unusual. Committee member Nate Ovall noted that the new location would reduce Ms. Sitts facility cost by about $21,000 per year. Mr. Ovall also noted that revenues for the business dropped significantly from 2011 to 2012,which Ms. Sitts stated was due to the poor economy and poor visibility at her current location. Committee members discussed the intent of the loan program,which is to focus on energy efficiency. Ms. Deckert stated that there are no job requirements of the loan since it is less than $75,000. Energy efficiency improvements to be made to the proposed new facility would include high efficiency lighting and improvements to the existing heating system.