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Elk REQUEST FOR ACTION <br /> River <br /> To ITEM NUMBER <br /> Economic Development Authori Finance Committee <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> March 29, 2013 Clay Wilfahrt,Assistant Director of <br /> Economic Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Downtown Revitalization Program Micro Loan Application, Jeremy Barnhart,Deputy Director <br /> Blue Egg Market Community Operations and <br /> Development <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Consider Downtown Revitalization Program Micro Loan application for Blue Egg Market and make <br /> recommendation to the EDA with conditions as outlined in staff report <br /> BACKGROUND/DISCUSSION <br /> Blue Egg Bakery is a bakery and sweet shop in downtown Elk River owned and operated by Robin <br /> DeWitt of Monticello. Blue Egg currently sells breads,pastries, cakes and donuts. The company plans to <br /> use the microloan funds for an expansion project into 707 Main St. The expansion will allow Blue Egg to <br /> expand its offerings to cakes, fudge and candy. The business will be a separate entity from the existing <br /> store. <br /> Mrs. DeWitt is experienced in baking and business ownership. She owned and operated Candy Station in <br /> Benson,AZ and Greenstone Stables in Dayton, OH. Mrs. DeWitt is an SAE certified food service <br /> manager and has a degree from Le Cordon Bleu. <br /> Bruce and Robin DeWitt are requesting a Downtown Revitalization Microloan in the amount of$74,500 <br /> to help fund the project. The EDA would obtain a first position on the equipment and a second position <br /> on the building. A personal guarantee will also be secured. Bruce DeWitt met with Tom Willett of the <br /> Small Business Development Center. Mr. Willett raised some minor concerns regarding the financial <br /> statement that were changed to meet his satisfaction. <br /> In addition to the financial criteria that must be considered, the Finance Committee must also consider to <br /> what degree the applicant satisfies the criteria set forth in the Micro Loan Fund policies outlined below: <br /> Micro Loan Criteria-Downtown Revitalization Program <br /> • Max. Loan Amount: $74,999 <br /> • Interest rate: Fixed at 2% <br /> • Equity: 10% or more of project <br /> • Term: The maximum maturity date will be determined by the useful life of the improvement and the <br /> energy payback achieved. For projects that have a shorter length of payback (2-5) years as calculated <br /> 111 E R E I 1 r <br /> NATURE <br />