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El REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Economic Development Authority Finance Committee <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> June 6, 2013 Clay Wilfahrt,Assistant Director of <br /> Economic Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Energy Efficiency Micro Loan Application,Ralphie's Victory Jeremy Barnhart, Deputy Director <br /> Lane Community Operations and <br /> Development <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Consider Energy Efficiency Micro Loan application for Ralphie's Victory Lane and make <br /> recommendation to the EDA with conditions as outlined in staff report. <br /> BACKGROUND/DISCUSSION <br /> Ralphie's Victory Lane will be a self-service gas station operating in a 3,000 square foot facility at 13374 <br /> U.S. Highway 10. The gas station will emphasize food service,increased fuel sales,inside sales, U Haul <br /> rental,and propane sales. Brian Brehmer, owner of Ralphie's plans to use city and bank financing to <br /> purchase and renovate the existing property. <br /> Brian Brehmer has extensive experience in managing gas stations, most notably serving as the manager of <br /> F&F Food Mart in Otsego for 19 years. Most recently,Mr. Brehmer worked as the Retail Operations <br /> Manager for Adium Oil, an independent oil company operating six convenience stores. <br /> Mr. Brehmer is requesting a $74,999 Energy Efficiency Microloan to help pay for the cost of a new LED <br /> price sign, canopy lights, and the asphalt overlay and striping and lot marking of the parking lot. Mr. <br /> Brehmer is making the improvements to increase the positive perception of the gas station. Mr. Brehmer <br /> has stated that the image of a gas station is a large determinant of its success, and improving the lighting <br /> and outward appearance of the gas station will increase business. <br /> Mr. Brehmer is securing a contract for deed for the property from Farmers State Bank of Albert Lea. <br /> They have attached a letter of commitment for$395,250 at 5%interest amortized for 20 years. Mr. <br /> Brehmer is working with the Bank of Elk River to finance $71,110 of the project amortized for 10 years. <br /> Additionally,Mr. Brehmer will contribute $120,000,or 17.8%, to the project. <br /> Mr. Brehmer is working with Municipal Utilities and has identified two key areas to make energy efficient <br /> upgrades. Tom Sagstetter from ERMU visited Ralphie's with Economic Development staff. Mr. <br /> Brehmer's plan is to replace the existing sign near the corner of HWY 10 and Joplin with a new LED <br /> display. The plan includes replacing the existing canopy lights with new LEDs. Mr. Brehmer plans to <br /> add a new high efficient sign mounted directly to the building. Mr. Sagstetter was satisfied that signs and <br /> I P O I E R E I / 1 <br /> NAME <br />