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of <br />fiver <br />MEMORANDUM <br />TO: !EDA Finance Committee <br />CC: Tim Simon, Finance Director & Lori Stich, Accountant <br />FROM: Catherine Mehelich, Director of Economic Development <br />DATE: January 4, 2008 <br />SUBJECT: Special Meeting: Tuesday, January 8, 2008 at 7:00 AM City Hall <br />Attachments <br />• January 8, 2008 Agenda <br />• July 25, 2007 EDA Finance Committee Minutes <br />• Micro Loan Fund Balance Sheet - As of 12/31 /2007 <br />• Application -Waterfall Salon & Day Spa <br />• Application -Nicole's Finishing Touch Salon <br />• City of Elk River Micro Loan Fund Policy -December 2006 <br />• Background City Council Meeting Minutes 9/18/2006, 11/20/2006, 12/17/2007 <br />Issues <br />Consider Downtown Business Revitalization Micro Loan Program Applications <br />Staff recently received the following applications to the Downtown Business Revitalization <br />Micro Loan Program: <br />1) Waterfall Salon & Day Spa <br />- $25,000 Working Capital Loan, 3% interest, 2-yeas term <br />2) Nicole's Finishing Touch Salon <br />- $25,000 Working Capital Loan, 3% interest, 2-year term <br />The EDA Finance Committee is asked to review the applications and provide a <br />recommendation to the EDA for approval or denial. The program was established in 2006 <br />for the purpose of assisting existing downtown businesses during the construction period of <br />the new buildings (see attached background City Council minutes). Since the new program's <br />inception November 2006, one application has been awarded (Daddy O's Cafe -January <br />2007). Since Nicole's Finishing Touch Salon does not fit the "existing business" application <br />criteria, the Finance Committee is asked to consider the business's unique circumstances as <br />described in the application. <br />Both applicants have been asked to attend the Finance Committee meeting to answer any <br />questions. <br />