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Economic Development Authority Minutes Page 3 <br />May 18, 2020 <br />----------------------------- <br /> <br />7.2 COVID-10 Small Business Emergency Microloan Program <br /> <br /> Ms. Othoudt presented the staff report. She introduced city attorney Gina Fiorini. <br /> <br />Commissioner Wagner questioned if you have to apply for the loan to get the <br />property tax relief and why there is an employee requirement. <br /> <br />Ms. Othoudt stated one form was created for both programs as it was simpler to <br />administrate and the applicant could apply for either the loan and/or tax relief. <br /> <br />Ms. Fiorini stated this policy was modeled after other similar EDA policies noting <br />most want to target smaller businesses. <br /> <br />Chair Tveite stated he’d like to remove the employee requirement and have it applied <br />to the businesses forced to shut down due to the governor’s order. <br /> <br />Commissioner Wagner concurred and would suggest the requirement that they have <br />to be in business for six months prior to shut down removed. <br /> <br />Commissioner Westgaard questioned if we are wanting to target or eliminate a <br />certain demographic of business and that was a reason for having some of these <br />requirements. <br /> <br />Ms. Fiorini stated the requirement were based on what is typical for other EDA’s. <br /> <br />Commissioner Westgaard questioned if the requirement applies to a new business or <br />new ownership of an existing business, referencing the recent sale of Olde Main <br />Eatery. <br /> <br />Chair Tviete stated it is reasonable to say businesses had to be in operation prior to <br />the orders. He stated he would like to strike the employee requirement and keep that <br />a business had to be open prior the orders. <br /> <br />Commissioner Wagner concurred. <br /> <br />Commissioner Ovall felt having both programs lumped into one application is too <br />cumbersome for the property tax relief program, noting there are some requirements <br />that aren’t needed for this program. <br /> <br />Ms. Othoudt stated separate applications can be drafted. She stated it would be <br />helpful to clarify how the Authority will be measuring the property taxes to be <br />forgiven. She questioned if it would be the May or October tax payment. <br /> <br />Commissioner Blesener stated it should be for any taxes due in 2020. <br /> <br />Commissioner Ovall stated is should be the lesser of their 2020 annual property tax <br />due or $5,000.