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City of <br /> Elk REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Economic Development Authority Finance Committee <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> March 4, 2013 Clay Wilfahrt,Assistant Director of <br /> Economic Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Energy Efficiency Improvement Program Micro Loan Suzanne Fischer, Community <br /> Application, Soul Coffee Shop and Fitness Studio Operations &Development Director <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Energy Efficiency Improvement Program Micro Loan Application, Soul Coffee Shop and Fitness Studio <br /> BACKGROUND/DISCUSSION <br /> Soul is a coffee shop and fitness studio proposing to locate in Granite Shores in downtown Elk River. A <br /> full service cafe will serve coffee, lattes, smoothies, and snacks. Soul will offer membership access to the <br /> fitness center, studios, and tanning, and will host various classes and trainings. Soul's CEO,Kacey <br /> Bottineau,has been working with Community Education and local Senior Activities Directors to schedule <br /> classes. <br /> Ms. Bottineau met with the Matt Wells, a consultant for the Small Business Development Center to <br /> review the attached business plan. Mr. Wells was satisfied with the projections as laid out in the plan,but <br /> he did note that the EDA would want to ensure the existence of the $50,000 line of credit in the event <br /> that sales don't pick up as fast as the business plan indicates. With the $50,000 in place,Mr. Wells was <br /> comfortable with the business plan. <br /> The space Soul will occupy in Granite Shores is not finished or built to suit Soul's proposed use. Ms. <br /> Bottineau is requesting$62,304 in an Energy Efficiency Microloan for build out and equipment which <br /> includes HVAC,water heater,lighting, and a washer and dryer. The total cost of the build out is <br /> estimated to be $70,800 and is detailed in the attached estimate. Aside from the Microloan dollars,Ms. <br /> Bottineau is contributing$10,000 and the property owner is contributing$44,991. <br /> Tom Sagstetter of Elk River Municipal Utilities and the Energy City Commission met with staff and Ms. <br /> Bottineau. Mr. Sagstetter recommended the following energy efficiency improvements as part of the <br /> build out: <br /> • Lighting—T8,T5 or LED lighting to be used in all fixtures <br /> • Electronic ballasts for lighting <br /> • Washer and dryer should both be energy star rated with the washer having a water factor of 5.5 or <br /> less <br /> • An on-demand water heater <br /> • If the unit has an independent furnace,it should be 95% or greater efficiency <br /> INATURE ei <br />