06-14-1993 EDA MIN - Laserfiche WebLink

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. . . Economic Development Authority Minutes June 14, 1993 page 2 Bulow indicated that funding ideas discussed included creation District, repayment of the TIF grant, and the possibility of co-developing the site with other unnamed developers. of a TIF the EDA Bill Rubin explained the co-development concept. He stated that the EDA could contribute the value of the property with the understanding that within a stated period of time, as the project develops and units are sold, the EDA would be cashed out of the project and would therefore recapture the value of the land. Bill Rubin informed the EDA that this could be an option in lieu of creating a TIF District. Commissioner Duitsman indicated he would not comment until he has received some type of written information on this concept. Chris Bulow requested that the EDA consider granting him some exclusive rights to the property. Bill Rubin informed the EDA resolution of some of the on the project. that the alley is still an issue and alley concerns could place time constraints COUNCILMEMBER HOLMGREN MOVED TO GRANT A 90 DAY COMPANY BEGINNING IMMEDIATELY AND ENDING COMMISSIONER DWYER SECONDED THE MOTION. THE Commissioner Duitsman opposed. OPTION TO THE SEPTEMBER 13, MOTION CARRIED BRUCE 1993. 5-1. 7. Consider Underwriting a Retail Focus Group Study with the Downtown Development Corporation and other Business people This item was deleted from the agenda. 8. Consider a Loan Request from Indy Lube, Inc. Bill Rubin informed the EDA that Indy Lube, Inc., an Indiana based company, has requested a loan from the EDA Revolving Loan Fund in the amount of $32,500. The loan would be used by Indy Lube to leverage primary financing sources for the construction of a new 2,100 square foot quick lube facility located at Dodge Avenue and 5th Street in Elk River. The EDA Finance Committee met to review the request from Indy Lube and recommended that the total loans for this project not exceed 90% of the project cost, or 90% of the estimated Fair Market Value of the project following its completion. The Finance Committee recommended approval of a loan to Indy Lube, Inc. Bill Rubin indicated that the current proposed loans are at 92%, which reduces the EDA's participation from $32,500 to $24,700, based on the 90% threshold. COMMISSIONER GONGOLL MOVED TO ACCEPT THE FINANCE COMMITTEE'S RECOMMENDATION TO APPROVE A REVOLVING LOAN TO INDY LUBE, INC., IN THE AMOUNT OF $24,700 WITH THE LOAN BElNG SECURED BY A MORTGAGE AGAINST THE DEVELOPMENT PROPERTY AND WITH THE L~AN BEING SUBJECT TO THE EXECUTION OF A PROMISSORY NOTE AND PERSO~AL GUARANTEE. COMMISSIONER HOLMGREN SECONDEO THE MOTION. THE MOTION CARRIED 6-0. !