10-21-2024 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes October 21, 2024 --------- Page 2 of 3 There were no public hearings. 7. GENERAL BUSINESS 7.1 Loan Extension Request - Hemmer Companies Mr. Mollan presented the staff report. Moved by Commissioner Matt Westgaard and seconded by Commissioner Mike Beyer to adopt Resolution 24-06 approving the loan extension for Hemmer Companies (Distinctive Iron) and authorization to execute the amended loan documents as outlined in the staff report. Motion Carried 7-0. 7.2 Loan Request - Modern Construction of MN Mr. O'Neil gave an update on the downtown development of Tipsy Chicken. Owner Jesse Hartung has requested a Downtown Incentive program loan from the EDA but has not met some of the requirements. The program requires a 10% commitment from the owner, therefore, the amount of the recommended loan was reduced from $75,000 to $51,499. There are also requirements that the project does not begin before the loan is awarded and some work has been started. Commissioner Grupa asked about the city's interest rate being at 3% whereas loan rates are currently around 11%. Mr. O'Neil commented that it could be changed and the Joint Finance Committee has talked about recommending changes to the rate structure. Commissioner Blesener stated that the purpose of the funds is to encourage small businesses and keeping the interest rate low would be more appealing. The EDA is not a bank, but the funds have been underutilized thus far. Commissioner Beyer asked if Mr. Hartung had been informed of the change in the loan amount. Mr. O'Neil stated he had been informed. Commissioner Wagner commented that the packet Staff Report stated the outlay would need to be repaid by December 31, 2023 and that should be corrected to 2029. Moved by Commissioner Charlie Blesener and seconded by Commissioner Jeff Hartwig to adopt Resolution 24-07 approving a business microloan to Modern Construction of Minnesota in the amount of $51,499 with a change to outlay repayment date from 2023 to 2029 as outlined in the staff report. Motion Carried 7-0. 7.3 General Updates Mr. Mollan gave an update on the of the Beautification Award, with the committee recommending Wayne Swart State Farm Insurance Agency. A "Development Minute" segment was filmed at Thunderstruck Exteriors. The public art reveal at the Furniture and Things Community Event Center is currently scheduled for November 25, 2024 at 2:00 p.m.