09-08-1997 EDA MIN - Laserfiche WebLink

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Elk River Economic Development Authority Meeting September 8. 1997 Page 2 e 6. Micro Loan Aoolication - Olde Main Eatery and Sweet Shoooe, Inc. Director of Economic Development Paul Steinman stated that the Finance Committee met to review.an application for a micro loan by The Olde Main Eatery and Sweet Shoppe. The loan request is for $50,000 for a 15 year term at a fixed interest rate of 6 percent. The purpose of the loan is to move The Olde Main Eatery's current business operations into 313 Jackson A venue. The money will be used to facilitate the purchase, remodeling, and furnishing of the building at 313 Jackson Avenue. Paul Steinman explained that the micro loan would be in conjunction with bank financing and personal equity. Paul Steinman indicated that the EDA Finance Committee unanimously recommended that the EDA proceed with a loan in the amount of $50,000. COMMISSIONER BENDER MOVED TO APPROVE A LOAN IN THE AMOUNT OF $50,000 AT PRIME INTEREST RATE (CURRENTLY 8.5%) WITH A 15 YEAR AMORTIZATION AND FIVE YEAR BALLOON FOR THE OLDE MAIN EATERY AND SWEET SHOPPE, INC. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. 7. Strateaic Plannina Issues - Hohlen Prooertv/Wilson Prooertv Rezoninas e Discussion was held regarding the recent denials of zone changes by the Planning Commission and Council for property designated to be rezoned to industrial and business park according to the Economic Development Strategic Plan. The EDA reviewed the Council's recent decision to deny a zone change for the Hohlen property and the Planning Commission's recommendation for denial to rezone the Wilson property. Commissioner Dwyer questioned the Council's reasoning for denying the zone change on the Hohlen property and requested the Council to consider approving the rezoning change for the Wilson property. Commissioner Dwyer indicated that it is important for the city to look to the future and rezone property when necessary in order to keep the options open for these types of developments. Commissioner Holmgren indicated that the Strategic Plan is a good plan, but rezoning the property ahead of time and banking it would increase the taxes on the property due to loss of agricultural status. Commissioner Dwyer indicated that the reason for the Strategic Plan is to find land for the future. Commissioner Dwyer suggested defining businesses that would fit into the business park to make the public more aware of the types of businesses that would actually be proposed for the area. Commissioner Bender indicated he was surprised at the attitude of the Council and Planning Commission regarding the Hohlen property rezoning. He further stated he was in favor of rezoning property in order to bank the land for future use. He requested the City Council to support the Strategic Plan. e Commissioner Thompson indicated he was in favor of rezoning the Wilson property.