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<br /> <br />MEMORANDUM <br /> <br />TO: Economic Development Authority <br /> <br />FROM: Catherine Mehelich, Director of Economic Development <br /> <br />DATE: March 13, 2006 <br /> <br />SUBJECT: Discuss Draft Amendments to Micro Loan Fund Policy <br /> <br />Attachment <br />. 1 st Draft Revised Micro Loan Fund Policy dated February 2006 <br /> <br />Background <br />At its September 28, 2005 meeting, the EDA Finance Committee discussed the level of fmancial <br />assistance provided to manufacturing companies entering the City of Elk River. The EDA reviewed <br />a first draft of the amended Micro Loan Fund Policy at its February 13, 2006 meeting. The EDA <br />suggested a revision to include "high technology businesses" as an eligible and desired applicant for <br />the loan funds. In addition, it was suggested that staff request input on the provisions of the <br />Redevelopment Financing component of the loan program from the Housing and Redevelopment <br />Authority (HRA) and the Heritage Preservation Commission (HPC). <br /> <br />Update <br />The following suggestions were provided by the HRA and HPC with regard to the Redevelopment <br />Financing Program: <br /> <br />. Agreed on limiting the use of the program to the core Downtown District, with the <br />understanding that it may be expanded to include the Central Business District sometime in <br />the future. <br /> <br />. Increase the amount ofloan funds from $50,000 to $75,000. <br /> <br />. Increase the financing terms from a balloon payment in 3 years to allow up to 5 years. <br /> <br />. Evaluate the minimum percentage of Micro Loan dollars that must be used toward building <br />fa<;:ade and rear entrance improvements. <br /> <br />. Directed staff to research the requirements that may be necessary for compliance with the <br />Americans with Disabilities Act (ADA) and fire code. <br /> <br />Staff is currently researching the ADA and fire code requirements that may apply to commercial <br />building rehabilitation projects by having discussions with the City's Building Official and reviewing <br />the City of Anoka's Central Business District Fire Protection Grant Program. <br /> <br />Following this research staff anticipates presenting a revised Micro Loan Fund Policy and <br />Application for the EDA's adoption at the April regular meeting. <br />