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Finance Committee Minutes Page 5 <br /> December 10,2013 <br /> downtown; such as free rent the first year, a certain percentage the second year, and <br /> a lower percentage the third year. <br /> Motin suggested looking at options for using the funding to attract dining businesses. <br /> Ms. Knoof suggested the Houlton Farm barn could be converted to a fine dining <br /> destination using local foods, and possibly as food business incubator for locally <br /> produced food products. She further suggested creating a kitchen in the barn that <br /> could be leased out to a private or non-profit business. <br /> Toth stated he was convinced of the concept for a fourth microloan fund. He asked <br /> why they are looking at this. Ms. Knoof explained that the funds are from DEED <br /> and DEED is telling the city they need to use the money. Ms. McDowell Poehler <br /> stated that the $403,000 must be separated from the existing programs. Ms. Knoof <br /> noted that they have not been given specific criteria from the state,just that they <br /> need to use the money. <br /> Motin asked if there is anything from stopping the city from splitting the funding <br /> into two uses— for the Mississippi Connections implementation and another use. He <br /> stated he was not in favor of the idea of fourth loan program. <br /> Ms. Knoof stated that in discussing this issue with Mr. Beeman,it was her <br /> understanding that the feedback from finance committee was to have options for <br /> broader use of the funds. Ms. Knoof stated these are all ideas that staff found in <br /> looking at what other cities are doing. Motin suggested the loans could be forgivable <br /> by meeting criteria, such as meeting job goals 100% over five years. <br /> Ms. McDowell Poehler suggested they look at creating a program with jobs and <br /> business development as the primary goals. She stated they could call it a jobs <br /> program or a business development program,which could be open to any business <br /> that created jobs. <br /> Toth asked if this type of program would have been something the bakery could <br /> have used when moved into to second building. Ms. Knoof noted that the Blue Egg <br /> did use a micro loan with the EDA. <br /> Mr. Barnhart suggested the program could be used for job generation for small <br /> businesses regardless of location. The program could be used as supplement if a <br /> business doesn't meet the criteria for the other three programs. <br /> Ovall asked if there was anything prohibiting them from using the money for lease <br /> hold improvements. He stated there are some older buildings that need <br /> improvements and could be tied to job creation,as well. Motin asked if the loans <br /> would be made to owners or tenants. Ms. McDowell Poehler stated the loan would <br /> likely need to be with the building owner if improvements are being made to the <br /> building. Ovall stated that owners sometimes finance lease improvements to reduce <br /> vacancies. He also is aware of numerous times tenants have financed with the SBA <br /> P O / E R E D A Y <br /> NATURE <br />