03-13-1995 EDA MIN - Laserfiche WebLink

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Economic Development Authority Meeting March 13, 1995 Page 2 comp plan designates the area as High Density Residential. He indicated that it is proposed that this area be rezoned to BP, Business Park. He further stated that Sherburne County does not object to the concept of this rezoning. He informed the EDA that this issue will be considered by the Planning Commission at its meeting in late March and by the City Council at a meeting in mid April. COMMISSIONER DWYER MOVED TO RECOMMEND TO THE ELK RIVER PLANNING COMMISSION AND THE ELK RIVER CITY COUNCIL THAT THE COUNTY FAIR GROUND PROPERTY BE REZONED FROM R3 TO BP (BUSINESS PARK) AND THAT THE COMPREHENSIVE LAND USE PLAN BE AMENDED TO REFLECT AN LI (LIGHT INDUSTRIAL) DESIGNATION. COMMISSIONER DUITSMAN SECONDED THE MOTION. MOTION CARRIED 4-0. 7. Consider A Loan Reauest From T.J. Properties (Office Redevelopment Proiect at Freeport A venue and East Main Street) Executive Director Bill Rubin indicated that the EDA is in receipt of a request for a micro-loan in the amount of $48,000 from T.J. Properties (Tim and Jerry Smith). He indicated that the Finance Committee considered the request and voted to recommend approval of the request based on the following conditions: · The completion of an appraisal to ensure that the loan to value ratio does not exceed 90% · Jerry Smith agreeing to apply proceeds from the sale of his property at 907 Main Street to pay down or payoff the EDA loan on the Freeport Avenue - Main Street office project. Jerry Smith of Century 21 White Dove informed the EDA that the loan would be used by T.J. Properties as secondary financing for its new office building at 403 Main Street. He indicated that the project was expanded to include the second floor of the office building being completely finished as well as tenant improvements to a greater portion of the lower level. Mr. Smith stated that these upgrades resulted in an increase in construction costs. President Gongoll indicated that although this is a very favorable project, he had a concern regarding the normal application process for requesting a micro-loan. He stated that the micro-loan request was submitted after the construction of the project, which is contrary to policy guidelines. President Gongoll further indicated that approving of this micro-loan may set a precedent for the EDA in the future regarding similar requests. Commissioner Dwyer also indicated that the project was a "good project". Commissioner Dwyer stated that the micro-loan fund is set up to assist with projects that are short on equity coming into the project. He further indicated that it is not the intent to cover overage costs on buildings and stated his concern of setting a precedent for other requests similar to this one. Commissioner Dwyer indicated his concern with the amount of equity that would be received from the sale of Mr. Smith's property at 907 Main Street to payoff the EDA loan on the Freeport Avenue and Main Street office project. Commissioner Dwyer indicated he would prefer to see the loan paid off rather than paying down on the loan.