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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Community Development November 20,2006 <br /> <br />Item Number <br /> <br />6.1.B <br />Prepared by <br />Catherine Mehelich, Director of <br />Economic Develo ment <br />Reviewed by <br />Scott Clark, Community Development <br />Director <br /> <br /> <br />Item Description <br />Consider Downtown Business Revitalization Loan Program <br /> <br />Introduction <br />At its September 18,2006 meeting the Mayor and Council directed staff to prepare a draft loan or grant <br />program that would provide fmancial assistance to the businesses in the downtown area. <br /> <br />Discussion <br />The attached staff report to the EDA dated November 13,2006 summarizes the issues relative to <br />offering a grant or loan program. Staff proposes that the loan program be funded and administered <br />through the EDA's existing Micro Loan Fund, therefore, the EDA was asked to provide feedback on the <br />proposed loan program. The EDA provided the following comments regarding the program: <br />. Directed staff to survey the downtown businesses for their interest in utilizing the proposed program. <br />. The loan policy should include a "sunset" date for applications to be accepted until the end of the <br />current construction projects. <br />. The loan amount should be increased. <br />. Personal guarantees should be required. <br /> <br />The attached Downtown Business Revitalization Loan Program Description has been revised to reflect <br />the EDA's feedback. Staff is currently undergoing a survey of downtown businesses and will be prepared <br />to report on the interest level of businesses at the Council meeting. <br /> <br />Financial Impact <br />The Downtown Business Revitalization Loan Program is proposed to be funded and administered <br />through the EDA's existing Micro Loan Fund. It should be noted these loans are high-risk due to the <br />lack of security and collateral requirements. <br /> <br />Attachments <br /> <br />. Staff report to the EDA dated November 13,2006 re: Downtown Business Revitalization <br />Loan Program <br /> <br />. Downtown Business Revitalization Loan Program Description <br /> <br />Action Requested <br /> <br />Staff requests the Council's direction regarding implementing the Downtown Business Revitalization <br />Loan Program (with modifications). <br /> <br />s: \Downtown Revitalization \Memos\2006\REQUEST COUNCIL ACTION 11.20.06.doc <br />