6.0. EDSR 01-14-2008 - Laserfiche WebLink

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EDA Finance Committee Minutes January 8, 2008 Page 2 of 3 Page 2 Committee a copy of the financial statements that were recently received from the applicant. She reported that while the applicant's business does not fit the existing business criteria of the program, that staff provided the City Council a brief summary of the request at its December 17, 2007 meeting and the Council indicated a willingness to consider the applicant's special circumstances with review and recommendation by the Finance Committee and EDA. Applicant Nicole Fox, and her father Brian, were in attendance to provide a brief summary of the issues they encountered during the construction of the Bluffs, which delayed the business relocation from Otsego, and the negative publicity on the foreclosure.. of the Bluffs which has impacted the business's ability to attract stylists and customers. Ms Fox indicated she would like to use the micro loan funds to increase advertising and other promotional activities. Following some discussion it was the consensus of the Committee that applicant is a reasonable exception to the "existing business" criteria of the program due to the delay encountered in establishing the business due to construction timing of the building. MOVED BY PAUL MOTIN AND SECONDED BY DAN TVEITE, THE FINANCE COMMITTEE RECOMMENDS THAT THE EDA CONSIDER A WAIVER OF THE "EXISTING BUSINESS" CRITERIA AND APPROVING THE LOAN REQUEST TO NICOLE'S FINISHING TOUCH SALON, CONTINGENT UPON PAYMENT OF THE FULL APPLICATION FEE, WITH THE FOLLOWING TERMS: RATE 3% FIXED TERM 2 YEARS SECURITY PERSONAL GUARANTEE STRUCTURE DIRECT LOAN FROM EDA THE MOTION CARRIED 7-0. It was noted-that applications to the Downtown Business Revitalization Micro Loan Program will no longer be considered since the program's application deadline was December 31, 2007. Consider Amendment to Micro Loan_Policv to include New Downtown Buildings Ms. ~Iehelich reported that staff has received inquiries about the possibility of amending the micro loan fund policy to consider applications from businesses in the new Jackson Place and Bluffs of Elk River buildings downtown. The use of the micro loan funds would be toward leasehold improvements and furniture, fixtures and equipment. Currently the Downtown Rehabilitation Financing Program is targeted toward building rehabilitation and restoration of downtown buildings, with a minimum of 20% that must be spent on building exterior. She stated that the City Council referred the issue to the Finance Committee and EDA for review and recommendation. Comments and concerns raised by Committee members with specific regard to the request included: