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<br />Request for Action <br /> <br /> <br />To Item Number <br />Mayor and City Council 4.6 <br />Agenda Section Meeting Date Prepared by <br />Consent August 20, 2018 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Energy Efficiency Microloan Application for Cal Portner, City Administrator <br />Ralphie’s Minnoco. <br />Reviewed by <br /> <br /> <br />Action Requested <br />Adopt, by motion, a resolution approving an Energy Efficiency Microloan and authorize the <br />execution of the microloan documents for Ralphie’s Minnoco. <br /> <br />Background/Discussion <br />Ralphie’s Minnoco applied for a $19,175 Energy Efficiency Microloan. Owner Brian Brehmer plans to <br />use the loan to finance energy efficiency lighting to the property and the space leased to Mama D's Deli. <br /> <br />Ralphie’s received a $74,999 Energy Efficiency Microloan in 2013. They are current on their payments <br />and are scheduled to pay off the remaining balance of $41,104.35 on September 1, 2023. <br /> <br />EDA counsel stated fund disbursement for new expenditures should be structured as a new loan rather <br />than a modification of the first loan because it is a new project. If approved, the city could subsequently <br />consolidate the loans into one payment. The borrower would make one payment and comply with one <br />set of loan terms and documents. <br /> <br />The EDA is expected to recommend approval earlier this evening. A public hearing is not necessary by <br />Minnesota Statutes 116J.994 because the amount of the subsidy does not exceed $150,000. <br /> <br />The Joint Finance Committee reviewed the application at their July 31, 2018, meeting and recommended <br />approval of the application. The terms of the microloan are as follows: <br /> <br />Ralphie’s Minnoco <br /> Amount requested: $19,175 <br /> Rate requested: Fixed at 3% <br /> Equity proposed: 10% <br /> Term: 5-year amortization <br /> The EDA will maintain a subordinate position on the mortgage at 13374 U.S. Highway 10 by <br />amending and restating the mortgage, entity guarantee, and a personal guarantee. <br /> <br /> <br /> <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br /> <br />