6. EDSR 08-13-2012 - Laserfiche WebLink

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El REQUEST FOR ACTION River To ITEM NUMBER Economic Development Authority 6. AGENDA SECTION MEETING DATE PREPARED BY August 13, 2012 Annie Deckert, Director of Economic Development ITEM DESCRIPTION REVIEWED By Energy Efficiency Improvement Micro Loan Application for Cal Portner, City Administrator P.S...Dance Studio REVIEWED BY ACTION REQUESTED Consider and approve Energy Efficiency Improvement Micro Loan Application for P.S...Dance Studio BACKGROUND/DISCUSSION The attached staff report to the EDA Finance Committee dated August 2, 2012, and committee meeting minutes provide background regarding the Micro Loan request. This is the first Energy Efficiency Improvement Micro Loan application received since the program's conception in April 2011. The Energy Efficiency Improvements Micro Loan Program is available to property owners of commercial or industrial buildings in Elk River to invest in energy efficiency,improve profitability through reduced energy costs, and enhance their ability to retain and create jobs. In addition, the program helps the City of Elk River use energy conservation as an economic development tool. Relocating to 251 8th St. NW will save the applicant,Pamela Sitts,nearly$1,800 per month on lease payments. Additionally, the lighting improvements will save roughly 16,000 kWh annually,which results in nearly$2,000 per year in utility costs. Because the applicant has not yet closed on the building, the exact HVAC improvements have not been identified;therefore the Finance Committee recommended increasing the loan amount to $30,000. The applicant plans to attend the EDA meeting to respond to any questions about the proposed project. The EDA Finance Committee recommends the EDA approve the Energy Efficiency Micro Loan request for P.S...Dance Studio with the following terms and conditions: • Up to $30,000 at 3%interest, 7-year amortization/5-year balloon • Motion sensors shall be installed for lighting • EDA to use commercially reasonable efforts to obtain a clean security position lien position • EDA to obtain a personal and corporate guarantee Paul Heinen, owner of 251 8`"St. NW,indicated he is not willing to allow the EDA to obtain a first position on the mortgage of the property. While this was a condition of the recommendation for approval by the Finance Committee, there was an understanding that this may not be possible. iERE ® et NATURE